Advantages and Disadvantages of Laundry Business

Advantages and Disadvantages of Laundry Business

This time, we will discuss the advantages and disadvantages of the laundry business. As we all know community life can not be separated from clothes. Especially for urban people who every day need various types of clothing for different purposes every time. And not everyone has enough time to wash their clothes.

This is what makes laundry business opportunities growing lately. Running a laundry business can be profitable because it can be done by anyone such as housewives, students, etc.

The target consumers of laundry services are those who live in big cities, workers, students, overwhelmed housewives, and those who do not have enough time to take care of their clothes.

In addition to saving time, choosing a laundry service is considered more effective and efficient because it will not be more productive when used for other purposes. Building a successful laundry business cannot just be done.

Now we will discuss some of the advantages and disadvantages of the laundry business.

Disadvantages of Laundry Business

Here are some of the laundry business disadvantages:

Requires Large Initial Capital

The first step for any business to start is to prepare initial capital. You can borrow capital from a bank. However, take into account the interest and the period. My advice, choose a bank that provides interest-free loans (with a profit-sharing system) so that it is more blessed.

Second, by proposing cooperation with investors or friends who want to fund your business. For one full automatic washing machine and its equipment, it takes about 900 to 1500 dollars.

So other people who provide capital with a certain time then have to return the loan amount while running the laundry business but you can easily pay the principal amount and interest (if any) when your business performs well.

Relatively Small Profits Per Day

The base price for laundry clothes is certainly not the same. We must also consider the costs incurred first, competitors, and other factors before setting the base price.

Because this is very influential on consumer loyalty. And one of the weaknesses of this business is the turnover per day which is relatively small when compared to other businesses such as services or trading of goods and commodities.

Number of Competitors

The laundry business has many competitors. Just look at the big city, it’s already mushrooming on the side of the road. So, do a little price research by finding out the prices offered by competitors.

You can give the same price as competitors but by providing additional services, for example, a shuttle service for a certain distance. You also have to consider operational costs so you don’t experience losses. Adjust the services provided against the price.

Requires a Strategic Location

A good laundry business location, of course, must be in a strategic place. Strategic places for running this business are urban housing, boarding houses, rented houses, and educational areas such as campuses and schools.

And if you already have a house near that location, then it can reduce the cost of renting a shop. Just open a home-based laundry business which of course doesn’t need a lot of capital because you can start this business from small things first. This is to transfer the rental capital to more important matters later.

Requires Quite Expensive Initial Equipment

Opening a laundry requires a variety of equipment other than a washing machine, as well as an iron, washing soap, clothes deodorizer, clothes dryer (clothesline), a scale for placing laundry, laundry name tags, packaging, and other necessities.

The capital does tend to be quite large. However, if the business is running well, the capital will be paid off as quickly as possible. This all depends on the performance of your business

Must always be on standby to open a place of business

One of the drawbacks of a very troublesome laundry business is the place of business that has to stand by as long as possible. Because when the laundry is closed, customers will not give their clothes for your laundry.

So you have to stand by as long as possible. Unless you create a laundry system that bookings or picks up door to door. You can pick up clothes at the customer’s place.

Frequent Customer Complaints

However, if you have started a laundry business, some customers are not satisfied with your service. Maybe their clothes are wrinkled, mixed with other stains, or some other service that may sound trivial.

So you have to be ready to serve customers and provide a maximum explanation so they understand.

Advantages of Laundry Business

Here are some advantages of the laundry business:

Ease of Management in Business

To start a laundry business, you have management. But different from other businesses, this business management is quite easy and simple. There is no special equipment that requires profound skills to use it.

The laundry business also does not have a supply chain process, stock management, and technical matters that must be continuously monitored. There are no product returns by consumers or returns, no guarantee of goods, in this way, friends, as business actors, do not need special personnel to monitor the running of the business, so they can do everything easily.

Fast Turnover

In the laundry business, because the required capital is relatively affordable, and if it is carried out with the right strategy, it can bring about a fairly fast return on investment.

This of course depends on various factors, such as location, marketing, number of competitors, type of laundry service, and so on. This is one of the advantages that you can consider starting this type of business.

Also turnover depends upon a lot of things like how your business performs, the number of customers, prices, brand values, and other things. If you want to increase turn then you have to consider all these things and improve to receive huge returns.

Business Cycle Throughout the Year (Non-Seasonal)

Some business models such as viral food, accessories, local tourist attractions, and so on are generally only seasonal, so the hype will run out. But it is different, laundry business can provide continuous benefits.

Laundry services will always be needed by many people in urban areas who are always busy with working hours, so they don’t have time to wash their clothes anymore. This is a non-seasonal business.

Does Not Require Many Employees

The laundry business does not require many employees in one place. Ideally, it consists of washing powder, ironing power, drying, and admin sections. Even then, sometimes if the scale is at home, it can be one or two people.

So you can reduce expenses for employee salary costs. And also simplify the management of your business which is indeed a home scale. If you want to expand, then open a new branch in a different location, of course, with minimal employees.


The laundry business model is very flexible in various ways. For example, it is easy to move, because business equipment that is difficult to move is only a washing machine, other than that it is easy to lift. Also, in terms of financial management, it is easy.

Also, you will have flexible time for working hours (if you have employees of course). Being a laundry business owner will make your friends have more free time, No more rigid working hours, and manage their time.

Potential for Fast Business Growth

The laundry business, as previously explained, has the potential for a fast return on investment, so the development process is very large. The higher the ROI value, the greater the opportunity to develop and expand the business.

So you can open another laundry business branch in other areas if you have enough capital. The profit that will be obtained will also be greater along with the more branches of your laundry.

Easy Resale

An effort, if possible, doesn’t fail. But suppose one day you need money and your laundry business goes downhill, then you can relatively easily sell this business package to other people. Or, for example, if you want to enjoy your retirement, you can resell all of your laundry equipment to someone else, or to a family who wants to continue your business.

Unlike other businesses that are quite difficult to resell, the laundry business still has a lot of enthusiasts so it is relatively easy to resell. The price you can offer also doesn’t fall too much from the initial capital you spent when you first built this business.

Tips to Open a Laundry Business

Here are some of the tips that you can adopt to open a laundry business:

Learning the Right Way to Wash

Washing clothes looks trivial, but many are wrong in applying good and correct washing techniques so that they can damage the clothes themselves. If you want to open a laundry business, you must master the appropriate washing techniques because each type of fabric has a different washing technique.

For example, some fabrics cannot be mixed with other fabrics, knowing which fabrics are fading, how to remove stubborn stains, how to wash jeans, cotton, and others. By understanding this, you can provide good service, so that consumers will feel satisfied.

Providing the best service

Providing good service is certainly a choice for your customers. One of the best services that must be done is to provide results of washing and ironing clothes that are neat, clean, fragrant, and finished on time. Friendly and informative service ways can make your customers come again and use your laundry services and become regular customers.

Every business also needs good communication with customers so that the business continues to run well. As an added value for your laundry business, this can be done by providing a free clothes pick-up service. However, first, calculate the costs and rates to match the profit target obtained.

Calculating Operational Costs

Capital is used to purchase initial equipment. Meanwhile, operational costs are the costs that you have to spend every month. The operational costs in the laundry business include electricity costs, water costs, detergent procurement, employee salaries, and other necessities.

If you rent a business place, it means that there is a rental fee for the place of business. This should be thought of from the start and included in the operating costs of the laundry business.

Be Creative and Innovative

This point is needed for all types of businesses, including the laundry business as well. Paying attention to the needs of the community can be one way so we can be creative and create innovations in running a laundry business.

One example of doing promotions through social media, websites, or providing services in the form of special washing services such as bed covers, dolls, shoes, helmets, and others.

Delivery Services

Nowadays people prefer that some take their clothes and return them after washing and they even pay for that. Delivery service in the laundry business will boost your earnings as well as your overgrowth.

Make sure you adopt a delivery service department in your laundry business to acquire more and more customers because ultimately this will benefit you in the long run.

It is obvious that to establish a quick delivery service you need to hire more employees but several people like to do this as a part-time job and also you can contact a delivery service company to provide you that facility if you don’t have enough capital to set up your delivery department.

Final Thoughts

Laundry is an alternative business that you can start as an alternative for people who don’t have time to wash their clothes themselves because they are too busy to work. Therefore, you can use this type of business in a location where people are busy with their professional life most of the time.

It is very important to know your target customers and a suitable location because, in the end, these factors help you to get success in the business.

Now, are you interested in opening a laundry business? So first make the plan, then implement it with proper strategies.

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