How to Start a Drop-Off Laundry Service

There will always be a market for a service-based business that can make consumers' lives more convenient for a reasonable price. For the committed entrepreneur, a drop-off laundry service can prove extremely lucrative, with the right locale. The success of your drop-off service lies in your ability to identify your clientele, provide excellent customer service, work hard (or hire those who will), provide great prices and conduct smart marketing.

Things You'll Need

• Insurance
• Permits
• Equipment

Instructions

Starting Your Laundry

1. Determine what types of services you will offer. Drop-off laundry services will include washing and folding and may include specialized cleaning (such as with leather or wedding gowns) and dry cleaning. If you will allow patrons the option to wash their own laundry, think of ways to make their lives more convenient (and earn a profit). Consider including a snack bar, television, kid's play area, arcade games, vending machines and coffee and tea and playing classic movies, country music or cartoons (for impatient kids). Offer bulletin boards where locals can post Wanted Ads.

2. Find your locale. This should be in an area where there is legitimate demand for a drop off laundry service. Your locale should be safe and well lit (if you will be open late). Look for high traffic areas near condominiums, apartment buildings and shopping malls. Check out trendier areas downtown, near universities or near newer developments.

3. Contact your local tax commission and health department to obtain the necessary permits and licenses, such as a sales tax permit, fire department permit, air and water pollution control permit, and sign permit, as well as a business license. Consider incorporating your business as a limited liability corporation (LLC). Then get a federal tax identification number. You may be subject to sewer connection fees.

4. Purchase a variety of equipment and supplies, such as top- or front-load washers, dryers, water heaters, soap dispensers, laundry carts, laundry scales, soap, trash cans, clocks and cleaning supplies. Purchase safety mats and coin machines. Buy drop-off laundry bags in varying sizes. Purchase store signage and design your business cards. See Resources.

5. Visit Merchantexpress.com to set up a merchant account so that you can accept credit cards and purchase your POS system. Utilize their accounting tools such as Quickbooks to keep track of your business costs and profits.

6. Consider offering gift cards or neat package deals that consumers could purchase for new or overworked moms. A drop-off laundry service three- or six-month package deal might make a great baby shower gift.

Tips & Warnings

• Invest in liability and equipment insurance, as well as worker's compensation insurance for your employees. Advertise on college bulletin boards and Craigslist.com. If you intend to get financing, write up a business plan. Visit SBA.gov for help on writing a plan. Get to know a reliable handyman (who can fix your brand of washers and dryers) in your area. Keep all vending machines and your change machine well stocked. Consider purchasing a website for your business. Consider offering discount cards or community coupon books.

• Familiarize yourself with your tax obligation ASAP, such as FUTA, SUTA and payroll taxes.

References

• Drop Off Dry Cleaners Business
• Drop Off Laundry Service

Resources

• Read this Article in Spanish
• Vista Print
• Custom Online Signs
• Kelco Laundry