Commercial Laundry Service Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Commercial Laundry Service Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Commercial Laundry Service business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
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It is very important for most major corporations to have an outsourced commercial laundry service. These businesses are especially important to companies such as restaurants, retailers, hospitals, and other entities in which people wear uniforms. These commercial laundry services are able to take a number of these articles of clothing in bulk and provide return services of clean laundry. One of the nice things about owning and operating a commercial laundry services that they are able to generate highly predictable streams on a monthly basis given the fact that most corporations have ongoing service contracts with these entities.
Unlike retail laundry facilities, commercial laundry facilities typically enjoy a much more predictable from a revenue that results in predictable profits on an ongoing basis. One of the other things are running these businesses is that they do not need to maintain an expensive retail facility given the fact that most of these companies do the pickup and drop off of bulk laundry on an ongoing basis. As it relates to raising capital for these businesses, most commercial laundry services have no problem securing business loans or private investment given the fact that about 80% of the sought after capital is typically used for tangible asset purchases such as washing machines, dryers, presses, and vehicles.
The gross margins generated by a commercial laundry service typically around 65% to 75% depending what the owner allocates towards their cost of goods sold expense. The start up costs associated with these businesses typically ranges anywhere from $100,000 to about $1 million depending on whether or not the facility is going to be purchased and whether or not the equipment is going to be least. One of the ways of these businesses can reduce their initial capital expenditure is by leasing their buildings as well as equipment and vehicles prior to actually lead purchasing them out right.
Banks and lenders love to place money was commercial laundry services given the fact that a majority of the capital uses for tangible asset purchases, and these businesses generate substantial streams of predictable revenue that can cover any debt service. Of course, a commercial laundry service business plan is going to be required. This business plan should feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. For the industry research portion of the business plan, these companies are quite significant size in the United States. There are approximately 5,000 companies operate in the commercial laundry service capacity. Each of these businesses generate about $17 billion in revenue and provide jobs for about 125,000 people.
As with any business planning document, a full-scale industry analysis should be coupled with a localized competitive analysis as well. This includes taking a look at not only other commercial laundry services, but also retail facilities that have ongoing service contracts with restaurants, hospitals, retailers, and other entities that have been laundry needs. Given that this business only caters other companies, an analysis of the local population is not typically necessary. However, by taking a look at the local population size and annual household income – inferences regarding the overall amount of businesses are going to need the services can be deduced.
A commercial laundry service SWOT analysis typically produces well in conjunction with all other business planning and marketing documents. For strengths, commercial laundry services are always able to remain profitable given the fact that retailers, hospitals, and other entities will have ongoing commercial laundry needs that are in demand even during times of economic recession. The high gross margins generated from these services allow these businesses to continually service their underlying operating expenses including any underlying debt service is undertaken.
For weaknesses, there are typically always a number of other commercial laundry services in any given market. There are a few national level competitors that provide services to tens of thousands of business on an ongoing basis. As such, the owner is going to need to find ways to appropriately differentiate themselves from other commercial laundry services in the target market. This includes providing pickup and drop-off services as well as specific guarantees on ongoing basis.
For opportunities, most commercial laundry services were easily able to be expanded if they are able to secure ongoing and new contracts with the entities discussed in the business plan. One of the other ways that many operators of commercial laundry services expand this to the acquisition of companies are already profitable and operational. Given the economic stability of these companies, almost all financial institutions would be willing to provide a business acquisition loan for an existing commercial laundry service seeking to grow from acquisition.
For threats, there’s really nothing is going to change it up as industry moving forward and very few entities that include hospitals, restaurants, hotels, and retailers – are going to have their own in-house laundry services developed. This is especially true for hospital-based entities that have specialized cleaning needs as relates to medical scrubs and other clothing that is used in conjunction with providing medical services.
A commercial laundry service marketing plan should also be developed in order to ensure that the business can immediately develop ongoing streams of revenue at the onset of operations. Foremost, prior to launching the business – many entrepreneurs will seek to develop ongoing service contracts for any equipment is purchased. This can substantially reduce the risks associated with starting this business, and also can help secure additional funding prior to launching revenue-generating operations. Most commercial laundry services maintain an in-house sales force that directly approaches hospitals, banks, retailers, restaurants, and other entities that have ongoing bulk laundry needs in order to secure service contracts. These agents typically receive a small salary coupled with a ongoing commission each time they secure a new contract on behalf of the business.
In addition to maintaining in-house sales force, many commercial laundry services maintain an expansive website that showcases the services rendered, hours of operation, pickup and drop-off services, preliminary pricing information, and how to get in contact with the company for their commercial laundry needs. This website can be somewhat small in nature given the fact that this business is not typically market itself to the general public but rather a group of businesses. Many new commercial laundry services will also become members of the local and regional chambers of commerce in order to ensure that the brand name can be immediately recognized that the onset of operations. While this does contribute to a modestly higher marketing costs, these referral relationships can provide an invaluable source of business from the Onset operations and throughout the life of the company.
Commercial laundry services can be highly lucrative opportunities for individuals to have extensive experience in the commercial cleaning, retail laundry mat, as well as dry-cleaning industries. In fact, many commercial cleaning services and commercial laundry services are developed as a subsidiary of an already existing drycleaner were retail laundromat facility. As such, an entrepreneur that is looking to expand their already established cleaning operations can readily move into the commercial market in order to develop large streams of revenue that produce highly predictable incomes on a monthly, quarterly, and basis. This is one of the industries is expected to continue to grow in lockstep with the general economy moving forward.