A laundry business is an easy and very lucrative business to pursue in Lagos. Most Lagosians have tights schedules, therefore, most of us do not have the time to do their laundry.
Also, this business is not capital intensive, you can even start it from home. Are you in Lagos and interested in starting a laundry business? Do you want to know what it takes to build a successful laundry business?
We must however differentiate a laundry service from a dry cleaning business. Dry Cleaning IS capital intensive and requires specialised skills to run it properly. A laundry service needs efficient and fairly experienced washmen and women. Of course, ironing, which is the most critical part of the job, has to be done properly very carefully and can be expensive because of the types of iron to be used, and the electricity required to do it.
Here Is A Step By Step Guide On How To Set Up A Laundry Business In Lagos
1. How Much Does It Cost to Start a Laundry Business?
It will be a wise decision to first and foremost take out time to conduct detailed cost analysis before investing your time and money into the business idea. The truth is that some businesses fail simply because proper cost analysis was not carried out prior to starting the business.
Consequently, if you intend starting your own laundry business, it will be in your best interest to conduct a detailed cost analysis before starting the business.
- The Cost of Registering the Business-: The cost of registering business in Lagos, Nigeria is about 10,000 Naira (56 USD). You can confirm from the corporate affairs commissions.
- The Cost of Renting or Leasing a Facility-: If you want to rent a decent facility for your laundry business in Lagos, you will pay an annual rent within the range of 250,000 naira to 400,000 naira (1,400 to 2,250 USD) in most part of the city.
- The Cost of Acquiring Commercial Laundry Equipment-: Basically you would need a washing machine, dryer, industrial iron, pressing table, generator, shelve and hangers, supply of detergents, starch, bleach and nylon. On the average, you are supposed to budget within the range of 400,000 naira to 600,000 naira. It could be more and it could be less due to some changing market factors.
- Salaries for a Minimum of 3 People-: The 3 employees basically will be the washer man, the person who irons the clothes and the pickup and delivery person; you can handle any of the duties along side administrative and other oversight roles if you intend cutting cost. In Lagos, an average employee that works in a dry cleaning firm earns about 25,000 to 40,000 naira per month.
- Tax and Bills-: Tax and bill payments will vary. It is important to make enquiries from the nearest tax office around you. You should also factor the cost of bill payments when conducting cost analysis for your laundry business.
- The General Running Cost and Miscellaneous-: General running costs cover fueling and servicing your delivery van, cost of fueling your generating set, cost of adverts and promotion (optional) and other recurring costs that you might incur when running your laundry business.
On the average, the cost of starting and running a standard laundry business with basic commercial laundry equipment in a decent location would range from 2.5M to 3.5M naira. The bottom line is that it is important to have an idea of the amount required to start and manage a standard laundry business.
2. Draw your Business Plan
A business plan is very crucial to the success of any business. You have to describe the way you would like to run your business in writing. List the services you will provide including specialized ones such as pickup and delivery, wash-and-fold, etc. Here is a sample laundromat business plan template you can start with.
3. Look for a location
When choosing an operating space or location, you need to look for an area that is accessible and close to apartment buildings. This will help attract customers who do not have laundry machines at home. However, you must not open a store near a competitor; except the competitor is not up and doing or you feel you have a competitive advantage.
4. Secure a permit and register your business
On this aspect, you have to visit your city clerk or local government secretariat to apply for a business permit or license. You also need to find out if your municipality requires you to acquire a health department license, water pollution control, fire department permit or air permit.
5. Buy the necessary equipment
After spotting and securing a good office space, you will need to order for dryers, washers, pressing irons, laundry carts, detergents.
You can also purchase top-load washers to economize. Or better still, you can lease or rent equipment and run your business until you are buoyant enough to buy your own equipment outright.
6. Market your Laundry Business
After your business is up and running, you should endeavor to advertise it and this cannot be done without a laundromat marketing plan. A good way to start is by placing door hangers on apartment building doors. You can include a list of your services and offer coupons to your new customers.