EASY STEPS TO STARTING A LAUNDRY BUSINESS

Have you been thinking about starting a business that won't require much start up capital? Are looking at earning extra income? or are you thinking of a retirement plan?

If you have answered yes to the questions above, the best option is to engage in a business that requires little or no capital. A laundry and dry cleaning business require only your expertise. The down payment by customers can be used to buy the initial business tools.

Experts say that the demand for laundering services is increasing due to changing lifestyles, income and the increase in clothing expenditure. They note that the target market cuts across all age groups but is usually patronised by the middle and upper class citizens.

Moreover, the small capital required to purchase commercial laundry equipment, minimal skills and the few workers required in the business make this venture a low-risk one.


Experts advise start-ups to commence this commercial activity from home before setting up a store for this service.

A business consultant, Mr. Sola Oladipupo, says having adequate knowledge of the day-to-day operations of the business is important.

According to him, it is important to have at least three months experience in a laundry services organisation or hire someone with the expertise to manage the business.

He adds that laundry and dry cleaning business is one of the viable businesses in the country today because of its low operating costs and high profitability.

According to the consultant, customer retention is essential to the success of the business, therefore he says customer satisfaction and maintaining standards at all times is crucial.

Oladipupo says, “The services rendered may include washing of clothes, rug and carpet cleaning. In order to excel in this venture, the quality of services rendered should be an excellent one that would not be found elsewhere. Referrals from this venture alone will give huge profits.”

He adds that marketing can be achieved by placing adverts in local magazines, newspapers and by leaving fliers and business cards in clothing stores and hotels.

According to an instructor in entrepreneurial development, Mr. Isaac Udeh, laundry is a water-based cleaning of clothes while dry cleaning is chemical based cleaning of cloths, which are mostly for suit and complicated fabrics.

He says the skills involved are not very complex but requires only one month training, which in some cases are learnt through apprenticeship or through on the job practice.

Udeh says, “Laundry and dry cleaning business can be operated on a small, medium, or large scale depending on the capacity and skills of the entrepreneur. It requires from N200, 000 upward to set up a laundry and dry cleaning services firm; depending on location and infrastructure available.”

Personnel

According to Udeh, a start-up will require honest and experienced workers with good customer culture. Meeting deadlines must be inculcated as part of the core values as well as delivering excellent service to customers.

Pricing

To ensure profitability, experts say it is important to have information about the cost for cleaning items of clothing per piece.

The trainer says, “For a beginner, prices of suites may be between N500 and N600. Trousers and shirts can range from N200 to N250 each, and natives from N300 to N350 only.”

Location

Laundry professionals say the location for this enterprise should be where there are no competitors or where a small number of competitors exist. Moreover, they say the store or office should be easily accessible such that clients can easily reach the place and drop their items of clothing.

Udeh adds, “A successful laundry business will have to be located in cities where people are very busy and as a result, they would see the need to outsource the washing of their used and dirty clothes to a third party.”

Profitability

According to Udeh, the cash recycle of laundry and dry-cleaning business is three days, because this is a period within which cloths are collected, processed and delivered in good shape to their owners and cash collected for the job done.

He adds, “The entrepreneur may choose to demand 50 per cent down payment or more when clothes are brought and the balance paid on receipt of cloths. This type of investment can employ six to seven employees and return a weekly net income of N20, 000 or a net income of N960, 000 per annum.”
To further increase the profit margin of the venture, Oladipupo suggests integrating the clothe-washing enterprise with industrial, office cleaning, fumigation and sewing services.




SOURCE: PUNCH