(+1) 9784800910, (+44) 020 3097 1639 [email protected]
Select Page

Executive Summary

Overview: Clean attire is required by everybody. Every household does not have access to washing and dryer, as well as laundry soap. When it opens for business, Universal Laundromat will provide full-service laundry, drying, and optional folding. We’ll also provide high-quality materials to ensure that clothing is thoroughly cleaned, as well as domestic retail products to meet the need for neighborhood convenience. Universal Laundromat will distinguish itself from its competition by providing professional, courteous, quick, and, most importantly, convenient services.

Mission: “To provide great quality and service to our customers by delivering best-in-class laundry room operations.”

Vision: “We want to provide our customers with dryer cleaning and laundry services that are speedier, more efficient, and less expensive.”

Industry Overview:

Laundromats and dry cleaners are businesses that provide a range of laundry services. Drop-off and pick-up locations, as well as specialty cleaning services for certain apparel items and textiles, such as curtains, gowns, or furs, may be offered by the laundromat and dry-cleaning firms. Customers may utilize coin-operated self-service washers and dryers in laundromats. Laundry machines that accept coins are common in dorms and apartment buildings. Though retail laundry and dry cleaning are the most common services provided by this sector, some businesses also provide additional services such as clothing mending and shoe repair, as well as off-site laundry and dry-cleaning services, such as in group housing buildings.

Financial Overview:

Financial Overview of Laundromat Business Plan

Financial Highlights:

Liquidity2020A2021A2022F2023F2024F
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency     
Interest coverage ratio  8.211.114.2
Debt to asset ratio0.010.010.20.180.16
Profitability     
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

Fund Usage:

Fund Usage for Laundromat Business Plan

Industry Analysis:

Overview: From 2020 to 2027, the worldwide dry-cleaning and laundry services market is predicted to increase at a compound annual growth rate (CAGR) of 3.4 percent. The industry is being driven by customers’ increasing usage of dry-cleaning and laundry services, which provide convenience at a fair cost. Furthermore, increased consumer expenditure on these services is expected to drive market expansion throughout the projected period. Everyone likes to dress in clean and tidy clothing but washing laundry on a regular basis is a chore for the majority of customers. Several people are actively seeking dry-cleaning and laundry services to take care of their filthy garments because of their hectic lives. Dry-cleaning and laundry services are establishing themselves as dependable and convenient services at a fair price, since busy customers are ready to pay for their laundry these days. During the projected period, these factors will likely fuel demand for these services. During the forecast period, the demand for such services is likely to be fueled by a growing worldwide working population, as well as increased expenditure on clothing and cleaning services.  In the past several years, laundry has seen a significant shift, from people washing their clothing at home to using coin-operated washing machines to using on-demand services such as pick-up and drop-off. Consumers are valuing convenience and choosing dry-cleaning and laundry services to smoothen their everyday lives because of their hectic lifestyles.

Industry Analysis of Laundromat Business Plan

Market Segmentation:

Application: The dry-cleaning and laundry services industry is divided into residential and commercial segments based on their application. In 2019, the residential application category had a significant market share, and this is expected to continue during the projection period. During the projection period, the residential sector is predicted to rise due to an increase in the number of homes with working members across the world, as well as an increase in expenditure on clothing and their cleaning. Furthermore, rising consumer preference for professional cleaning services due to personal hygiene and cleanliness is expected to drive residential sector development during the projected period

Service: Laundry, dry cleaning, and duvet cleaning are the three types of services available. In 2019, the laundry category took over half of the market share. Because of customers’ increased preference for casual clothes and greater washing frequency, laundry services are expected to outperform other categories. Furthermore, growing consumer awareness of the need for good personal cleanliness is encouraging people to wash their daily clothing on a regular basis. During the projection period, these variables will most likely fuel demand for washing services. The dry-cleaning industry is predicted to develop significantly in the future years, owing to an increase in professional employees who often wear business attire, such as suits and jackets, which cannot be washed with ordinary techniques and must be dry cleaned with extreme care. Furthermore, dry cleaning is commonly used for other specialty clothing, such as bridal dresses, which is likely to drive demand during the projection period. The hotel sector and hospitals throughout the world are continuing to expand, necessitating effective laundry and duvet cleaning services, which is projected to boost the market.

Market Segmentation for Laundromat Business Plan

The dry-cleaning industry is predicted to develop significantly in the future years, owing to an increase in professional employees who often wear business attire, such as suits and jackets, which cannot be washed with ordinary techniques and must be dry cleaned with extreme care.

Furthermore, dry cleaning is commonly used for other specialty clothing, such as bridal dresses, which is likely to drive demand during the projection period. The hotel sector and hospitals throughout the world are continuing to expand, necessitating effective laundry and duvet cleaning services, which is projected to boost the market.

Marketing Plan:

Marketing Plan for Laundromat Business Plan

Website and Social Media: To market our brand, we use the internet and social media platforms like Instagram, Facebook, Twitter, YouTube, Google+, and others. Include Universal Laundromat in phone books and directories in your neighborhood. Create a company website and be active on key social media sites.

Seminar and Programs: Sponsor sports events and tournaments in town that are meaningful to you.

Referral Marketing: Encourage individuals to utilize referral marketing (word-of-mouth), and engage in direct marketing.

Advertisement: Advertise Universal Laundromat on local television and radio stations, as well as in local publications. Ensure that all of our employees are wearing our branded clothing and that all of our official cars and trucks are well-branded with our company emblem and other identifying information. Distribute our flyers and handbills at strategic locations. Advertise Universal Laundromat on local television, radio, and print stations.

Pre-Opening Events: To raise awareness, have a party to honor the Universal Laundromat launch.

Commute Advertising: By employing individuals to display signs alongside we will draw attention to Universal Laundromat. Install our billboards in high-traffic areas,

Customer Loyalty Program: To honor our loyal consumers, we will develop customer incentive programs and promotions.

Organogram:

Organogram of Laundromat Business Plan

Financial Plan:

Earnings:

Financial Plan of Laundromat Business Plan

Break-Even Analysis:

Financial Plan of Laundromat Business Plan

Income Statement:

2020A2021A2022F2023F2024F
ANNUAL REVENUE     
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase 528%193%133%87%
COST of REVENUE     
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
2020A2021A2022F2023F2024F
ANNUAL REVENUE     
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase 528%193%133%87%
COST of REVENUE     
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
SELLING & ADMIN EXPENSES     
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918

Cash Flow Statement:

2020A2021A2022F2023F2024F
CASH FLOW from OPERATING ACTIVITIES     
Net profit before tax-$404,039-$677,907-$606,011$25,052$1,206,987
Depreciation$44,267$85,333$120,504$158,127$199,512
Payables     
Item 1$4,333$5,417$6,500$7,583$8,667
Item 2$11,667$28,000$46,667$70,000$93,333
Item 3$6,250$8,750$10,000$10,000$10,000
Item 4$3,000$8,000$9,000$10,000$10,000
Item 5$667$1,000$1,000$1,000$1,000
Total payables$25,917$51,167$73,167$98,583$123,000
change in payables$25,917$25,250$22,000$25,417$24,417
Receivables     
Item 1$320$1,506$3,676$5,143$9,595
Item 2$360$1,807$4,411$8,229$11,514
Total receivables$680$3,314$8,087$13,372$21,108
change in receivables-$680-$2,634-$4,773-$5,285-$7,736
Net cash flow from operating activities-$334,536-$569,958-$468,280$203,311$1,423,180
      
CASH FLOW from INVESTING ACTIVITIES     
Item 1$16,000$13,200$14,520$15,972$17,569
Item 2$20,000$22,000$24,200$26,620$29,282
Item 3$28,000$22,000$14,520$10,648$11,713
Item 4$96,000$88,000$72,600$79,860$87,846
Item 5$20,000$22,000$24,200$26,620$29,282
Net cash flow/ (outflow) from investing activities-$180,000-$167,200-$150,040-$159,720-$175,692
      
CASH FLOW from FINANCING ACTIVITIES     
Equity$400,000$440,000$484,000$532,400$585,640
Net cash flow from financing activities$400,000$440,000$484,000$532,400$585,640
Net (decrease)/ increase in cash/ cash equivalents-$114,536-$297,158-$134,320$575,991$1,833,128
Cash and cash equivalents at the beginning of the year-$114,536-$411,693-$546,014$29,978
Cash & cash equivalents at the end of the year-$114,536-$411,693-$546,014$29,978$1,863,105

Balance Sheet:

2020A2021A2022F2023F2024F
NON-CURRENT ASSETS     
Item 1$16,000$29,200$43,720$59,692$77,261
Item 2$20,000$42,000$66,200$92,820$122,102
Item 3$28,000$50,000$64,520$75,168$86,881
Item 4$96,000$184,000$256,600$336,460$424,306
Item 5$20,000$42,000$66,200$92,820$122,102
Total$180,000$347,200$497,240$656,960$832,652
Accumulated depreciation$44,267$129,600$250,104$408,231$607,743
Net non-current assets$135,733$217,600$247,136$248,729$224,909
      
CURRENT ASSETS     
Cash-$114,536-$411,693-$546,014$29,978$1,863,105
Accounts receivables$680$3,314$8,087$13,372$21,108
Total current assets-$113,856-$408,380-$537,927$43,349$1,884,214
Total Assets$21,878-$190,780-$290,791$292,078$2,109,122
      
LIABILITIES     
Account payables$25,917$51,167$73,167$98,583$123,000
Total liabilities$25,917$51,167$73,167$98,583$123,000
      
EQUITIES     
Owner’s equity$400,000$840,000$1,324,000$1,856,400$2,442,040
Accumulated net profit-$404,039-$1,081,947-$1,687,957-$1,662,905-$455,918
Total equities-$4,039-$241,947-$363,957$193,495$1,986,122
Total liabilities & equities$21,878-$190,780-$290,791$292,078$2,109,122