How to Start a Profitable Dry cleaning & Laundry Business with 250k
You can Set up this profitable Laundry Business in Abuja, Lagos, Port Harcourt or your locality, because laundry business is one of the least capital-intensive Startup Business anyone can venture into.
Dry Cleaning as we know it today is a multi-million Naira earning business which many big entrepreneurs in big cities has used to employ and earn good living,
If you were thinking of Starting a dry cleaning business , laundry services or rather looking for a real life guide on how to start, please follow this post, I am not a dry cleaner but one of my best friends is into laundry services and have worked in many laundry firms before establishing his own, in a small way, Startup Nigeria is not here for already big Startups but for average Nigerian with little or low capital base, So here we go
What You Should Know before Starting that Laundry Business in Nigeria
Dry Cleaning Business is not fun if you don’t love washing:
Shelve off that idea you have been having that you will do all the laundry with a machine, if you do not like to wash cloths please stay off laundry business, This is not a discouragement because I am reporting this from experience, there are some clothes which you will and can never wash with machine, it requires hand washing, I do make fun of my friend each time I touch his palms, Men! It’s so strong and thick due to so much handling and washing of cloths! But one thing that baffles me is that he enjoys washing clothes, you need to see how he talks about different colors of cloths and how to wash them with passion
Location Is very Vital to the Success of your Laundry Business in Nigeria
This is another bummer, Sorry, but you need to know this, even though am sure you will agree that in every business especially off-line businesses Location plays important role however in laundry business it’s very important, if you are living around highbrow areas, then you are going to wash and wash until you start hiring apprentice, but lets not get too excited because there are more than meets the eye in laundry business here are some initial startup tips you should follow to establish a small scale dry cleaning / laundry business in your area on a low scale capital between N100K – N250k
Start Your Survey Around your vicinity or your target Area where you want to Start the Laundry Business
Let’s forget about the big grammar in Business Survey, lets bring it down to lay mans understanding, see how you can go about this, and here are things you should look out for,
- How many Dry-cleaning services are fully operational around that area?
- Are they Always having jobs, (you can find out this by testing their services, get to give the 1 or two cloths to wash, then try to be friendlier and observe)?
- How much do they charge for washing different kind of cloths; You do not need to wash all kinds of cloths to know their prices, a mere inquiry by asking them will give you these answers,
Also observe the packaging and do your rating.
How do you wish to Startup Your Laundry Business? In-house or Getting an office Space?
As an entrepreneur I think you should even start in-house in order to understand and shake your skills, you can start by doing free and cheap laundry for friends and neighbors , this may sound funny and maybe low class for you, well if you have this kind of pride or your like me that doesn’t blend so well with my neighbors then getting a small office is the next target . but our aim is to cut cost that was why I suggested you start in-house due to shop rent hmmm Its business anyway so let’s continue
NEPA or What’s the Name again, Power Holding company of Nigeria, indeed they are great in holding our power especially when we need it most,
Power is life, in This our laundry business, without power you will not be making good profit, don’t even think that generator is the solution except you are ready to buy a big K.V.A generator which is even more than the startup cost we Agreed on (yes you and I Agreed that we will spend between N100-N250)
When my friend was running his new startup Laundry Service, one major challenge which he is still confronting is power supply, of course he bought a sizable generator that can carry his pressing Iron, however the constant usage of Generator to iron cloths will always have a big effect of your generator, a good laundry Iron is very powerful and the coil of his Gen Set is in constant fixing at least twice in a month or at worst every weekend
So, ensure you can have up to 6-12 hrs. power supply in the area
Training is non-negotiable
You remember in the opening lines I told you to do investigation to find out how others are doing it, but your aim is to break into the market and withstand the competition, Professional Laundry service is different from the one you wash for yourself at home , Do I need to even emphasize on this? Before you nurture this business idea, you must have acquired this skill, hey! if you think that “let me open it and put someone in it” hehehe! It’s not a bad idea but it’s a risky idea, small business like this requires passion and creativity, this kind of intuitive skills will only come from the real vision bearer, Laundry apprenticeship can not be more than two months, learn how to do the following
How to Wash Cloths Professionally
How to Wash different Fabrics: It’s not like the way you was at home OH!
How to manage fabrics colors and kind of gentle cleaning agents you can use on any materials without damaging it
How to use the pressing iron: To give nice fabric impressive (I had once given out my cloth to him for ironing, Men it was looking gorgeous when I received it) So learn how to do that
How to Fold Cloths: for me I find it very hard to achieve that laundry folded style of T-Shirts, I really love seeing my cloths like that in my wardrobe, so can you do that?
Bring in your Packaging Idea
My fellow Entrepreneur, Every Idea is not new what is new is how you package the idea, but while I am saying packaging doesn’t mean you should spend all your money doing that, As “ABA boy Wey I be”, I can walk into some commercial area get a small graphics or artist do a small sticker containing my business details which I can paste on the polythene / Nylon pack I used in packaging the cloths
As an idea, I can make my business stand out from the crowd, there are some nice smelling cloth perfumes I will sparingly spray on them before packaging, don’t be afraid if customer complain then you may exclude spraying it on those hat doesn’t want it , start it first and see how your business will attract more clients
Home Delivery Is BAE!
Pardon me for using that Slang, but its really something we call value added Service (VAS) some busy business or civil servants will see you as a life saver on this, but you and I knows that “Better soup na money kill am” so you will make x3 of normal charge
Now that you have known the basics can we do an Estimate of how much it can cost you to start a small-scale dry cleaning / Laundry Services?
Business Budget is 250k (Lets add extra 50k)
Industrial Steam Pressing Iron (you can start with one or buy London used) = N 12000
Water Storage can ( 3 kegs and one 250 liters drum ) N 13,000
Detergents and cleaning Agents (in Bulk) N5000
Starch (Hot and cold Start) N4000
Nyon for Packaging (in Packs with your label on it) N5000
Shop Rent (location Matters) N70,000
Washing Machine (for A Start we buy a small one) N40,000
Flyers and Complimentary Card (You Must bargain) N8,000
4.5 K.V. A Generator N60,000
Other Stuffs Such as Shop painting, Wood Shelve, Table N20,000
Are you seeing this? With Just N237k you can Start a Standard laundry business in a Small Scale But other things I did not factor in are
Cost of CAC Business Name Registration which is around N15k
Cost of paying PHCN Bill (LOL) Yes be prepared to pay NEPA Bill oh
Cost Stuffs like Electric fan, TV or Ac for your comfort and bulbs too
A washing basin to separate and soak different materials and colours of clothing
Basins for Washing the Cloths
The Shop rent is something you can try to work it out with your landlord, do not use a high costly shop or locate your business in a serious busy areas that demands cut-throat rents,
Find a less competitive zone where middle- and low-class people resides but not a village, Places in Abuja like Durum, Apo village, Dutse, Airport Road, or any zone where civil servants resides to cut cost of housing will be idea
Other Things you may Consider doing or adding to your laundry business is Barbing and Hair Salon, Serious this two combo will generate big revenue. And any fashionista would want to look good in clothing and body appearance!
This is how you can become an entrepreneur owning your own small Startup Laundry and Dry cleaning business!
Promotion of your Newly established Laundry / Dry Cleaning Business
The life of every business is patronage and the higher the business inflow the more likely you can make more revenue, did you remember i told you to survey around? This is where the business maneuvering will come to play, you can start offering big discount such as 60% discount in already existing market price, if others are billing N400 per fabric you can cut it down to N200 or even N150, Your aim here is for them to have a professional feel of how your services are.
Share your Flyer’s, give promotion like ” wash 2 and get one free ”
Don’t forget we are in digital world, Whatsapp, Facebook, Instangram will play vital role here
Ensure you have a small sign post or bill board in front of your shop with clear information of what you do
Here Are Some Challenges you will face in Opening your own Laundry / Dry Cleaning Business
Power Outages : There are times you will have jobs but your Generator cant kept on working and working , yet there is not light, NEPA can disappoint for Africa
SEASONAL CHANGES; Since your a Small Startup owner , seasonal variation like during the raining period, cloths will not dry faster and will affect your delivery time
Delivery Period: As a laundry owner you need to make sure that you will deliver customers cloths as when promise, imagine if i was waiting for my cloth in order to attend one big function but all I get is ” Sorry sir, your cloth is not ready”
Color / Stain Management: This is one challenging task you will surely face, some cloths have system or tips on how to wash them and any mistake from you can ruin it, get ready for war because you will see a customer requesting for huge sums for damaging their cloths. This was why you needed at least 2 months mentorship from already established laundry owner
Iron Burning Cloths: it will occur once in a while but try to be very observant on the kind of cloth and the kind of head require , in order not to burn it
So if you think of Opening a Laundry business, this post was gotten from real life interview from someone who runs a laundry / dry cleaning service. If you have any more question regarding how to startup A laundry / dry cleaning business use the comment box to ask and i will answer you