Things to Keep in Mind for a Successful Laundry Business

Rishabh Sharma
Rishabh Sharma Feb 10 2021 - 6 min read
Things to Keep in Mind for a Successful Laundry Business
Laundry business holds an unlimited potential to generate huge profits. However, to make it happen, you should do everything right. Read on to know more.

Nowadays, most of the laundry is done either in the household or by local dhobis in India. Organized Laundry penetration is still very less in India and it is limited largely to metro cities across the nation. As there is a huge scope many entrepreneurs start a laundry business or a laundry franchise but, unfortunately, most of them have to shut down early, and the remaining are facing the critical task of making the business profitable.

Love it or hate it but, your clothes have to be clean and tidy if you want to live a healthy and hygienic life. Laundry and dry cleaning services are the most common businesses across the globe but, it is also one of the most challenging businesses to run and earn profits. 

But before you start your venture in this sector, let us throw some light on ‘how can make a proper laundry business plan’ and ‘what are the basics of a laundry business’. This sector holds an unlimited potential to generate huge profits. However, to make it happen, you should do everything right.

Local Laundry:

The laundry industry is full of dhobis in India, you’ll find one at almost every corner or street. As you take a look around, you’ll actually have a hard time finding any major chains and big competitors, especially on a national scale. Instead, you’ll see a lot of smaller, one-off laundromats and other businesses. Keep this in mind as you build your own store, competition will likely be locals or dhobis who know the market well.

Don’t Sweat Experience:

Having experience of the field in which you have decided to venture is an important thing but experience tailored to the laundry industry itself can be hard to come by. According to many laundry business owners ‘if you don’t the experience it’s ok, but being in the business for a while to understand it in order to gain experience and profits is the main thing’. With that in mind, don’t worry about this aspect. Focus on the business-side first, and the laundry expertise will come.

Branch Out:

While starting the laundry business, people often think of a customer-base that is full of local customers, typically living nearby and perhaps low-income. However, this approach could hamper your profits and business growth. For many laundries, only a percentage of their business comes from the locale customer. Instead, many entrepreneurs find success by balancing that clientele with commercial accounts. Consider branching out when the business first gets started.

Capital depends on Clients:

Who do you want to serve? If you follow the above-mentioned idea and pair locale customers with commercial ones, you’ll need a certain amount of capital. Businesses with an industrial focus will often need millions in startup capital, while laundry businesses that only want to offer their services to the local community will need less. So, plan accordingly during the financing phase.

Networking your Business is a Must:

Your professional relationships are incredibly important to your success as a laundry business. The best way to build these connections is to network in the industry is networking. It’ll also help you, in case you want to expand your commercial clientele. Talk to other businesses in your area and see which ones have a need for your services.

Be Organized:

Launching a business is the toughest test for your organizing skills. Be prepared to handle various emergencies as they arise. This will make sure that your business runs smoothly even during tough times. Make sure that you have everything ready. Equipment you need raw materials and machines; buy and store everything you need. You should also have a mode of transport for shipping purposes.

Reliable Staff:

Hiring suitable staff is another area where you should be focusing. Remember, laundry service is not a one-man job. You need staff to handle machinery and to clean clothes. Hire suitable people to avoid unpleasant encounters.

Register your Business:

Registration of your business as a legal entity is the next step. Explore your options and make an informed decision. LLC, corporation, partnership, proprietorships; choices abound in number. Inquire about licensing requirements. Deeply discuss your business plan with the local authorities. Abide by their advice. Be aware of the following insurance protections,  incase your business may need one. It may vary depending on your location:

1. General liability insurance

2.Workers compensation policy

3. Professional liability coverage

4. Hazards coverage

5. Business owners policy

The Legal Documentation:

1. Your laundry business plan

2. Certificate of incorporation

3. License

4. Insurance and health-related permits

5. Permits from your State Government

6. NDA (Non-disclosure Agreement)

7. Employment contracts


Promote your business in various ways like newspaper ads, magazines, online platforms, TV, radio, fair; channels are there in plenty. Know where your customers hang the most and advertise there. Set up a customer loyalty reward program and you can also offer free services to new customers. You can iron or wash two clothes free of cost in returning to a dozen clothes. Request your loyal customers to refer you to their friends.


If you keep the above-mentioned points in mind, your business will be more stable and it will grow accordingly. Perhaps the most important tip to know, though, is that you should never stop learning. Even the most seasoned professionals are in search of more knowledge, and a complacent attitude can lead to a stagnant business.

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