Start a Small-Scale Commercial Laundry Business

It’s hard to know how to start a small-scale commercial laundry business without first doing your homework or partnering with a services provider who can help. Though a smaller operation may seem easier to open than an industrial or full-service laundry, customers in this market expect tailored, quality services that your business must be set up to deliver. On top of all the expected elements of starting a commercial laundry, including financing, a location, high-capacity washers and dryers, and licensing, you’ll also need a business plan focused on capturing salons, gyms, and other mid-size companies that a small-scale laundry thrives on.

Still, opening a small commercial laundry business can be profitable if you’ve taken the time to develop and execute a business plan that factors in the level of personalized service and capabilities your target customers expect. With a knowledgeable partner like Western State Design, you can get all of these elements right. We’ve developed this resource to help you organize the steps to start a laundry business and make your plan a reality.

Step 1: Define Your Commercial Laundry Services

You’ve already decided to open a commercial laundry business, so next you’ll need to identify your services and Unique Selling Propositions (USP). These elements are the foundation of a business model, determining the target market, equipment needs, storefront requirements, and a host of other elements.

Get started by:

Identifying your local market based on the area's medical centers, restaurants, gyms, or other facilities you'll target.
Evaluating competitors and identifying gaps your business can fill, such a specialized fabric care, personalized services, pick up and delivery, or express pressing and finishing.
Creating a list of services that balance customers' needs with investments in equipment and staff, and considering future growth opportunities.

Consult a commercial laundry service provider if you need help analyzing your competition and the local market. These experts know how to start a small-scale laundry business in many markets and can provide invaluable analytics, resources, and experience.

Step 2: Select a Business Entity Type, Name, and Identity

Even as a small commercial laundry owner, you have choices for structuring the business. The entity type—sole proprietorship, limited liability company (LLC), partnership, or corporation—will affect day-to-day operations, liability protections, and taxes, so weigh your options carefully. You must determine the entity type before registering your business with the state and filing for certain licenses and permits.

If you aren’t certain of the pros and cons of each entity, speak to a business attorney who can walk you through how to start a small-scale commercial laundry business as a partnership or proprietorship and the legal implications.

Tips for Naming a Commercial Laundry Business

You want your business name to be clear and stand out from other laundry providers in the area. Here are some tips to keep in mind as you select a name for your commercial laundry business:

Relevant and Unique: Your name should reflect your business values and offerings; for example, Rapid Wash Solutions sounds professional and suggests efficient services.
Availability: Verify the name isn’t already in use or trademarked.
Leave Room for Growth: Unless you intend to offer specialized services, avoid names that limit your business to a specific market, such as hospitality, or lock your company to a narrow geographic region.

Step 3: Draft a Commercial Laundry Business Plan

Consider your commercial laundry business plan as a compass for your startup. This document should outline your goals and objectives while keeping financial considerations top of mind. Thankfully, you don’t need to know how to draft a plan from scratch when starting a small-scale commercial laundry business. Partner with an equipment supplier offering sales support and consultation, like Western State Design. We can help develop a commercial laundry business plan that brings your project to life and keeps it on track.

Creating a Realistic Business Plan

Whether you have outside support or will draft your commercial laundry business plan yourself, keep it realistic to increase your chances of success. One area where startups can falter is underestimating the financial requirements of entrepreneurship. Opening a commercial laundry business can cost between $200,000 and $500,000 (and more in a competitive urban market, like Los Angeles), depending on the property type and equipment needs. Factor in all of the upfront costs and ongoing expenses, including:

Utilities
Equipment Purchases
Maintenance and Repair
Staffing
Mortgage or Lease
Insurance
Licensing Applications and Fees
Marketing

Step 4: Choose a Business Location

If you offer drop-off or pickup services or plan to run a laundromat storefront, prioritize a location that’s convenient, safe, and accessible. Consider county and city regulations before selecting a build site or taking over a leased location. Whether remodeling or building a new commercial laundry facility, you must adhere to state and local regulations. If you aren’t knowledgeable about legal requirements for a laundry business, including utility access laws, project specifications, permits, and code compliance, consider partnering with a laundry development company that is.

Step 5: Obtain Licenses and Permits

Registering your company with the state is one of the first steps to starting a laundry business. You’ll also need to secure a business license and permits for health, pollution control, sales tax, and other potential local approvals. Depending on your business model, you may also need to apply for an Employer Identification Number (EIN) to facilitate taxes, set up bank accounts and financing, and to legally hire employees.

It’s smart to consult a business attorney for guidance on the legal requirements for opening a laundry business. Licensing and permits can vary by the state, city, and county, and violating these laws can cause potential delays and fines.

Step 6: Open Business Banking Accounts

Establishing a dedicated business banking account is an essential step for startup companies positioning themselves for long-term growth. Separating personal and company finances increases transparency, helps establish and build the company’s credit, and can streamline your daily operations. Bearing the company name on invoices and billing presents a professional appearance that can build local companies’ confidence in a small commercial laundry brand like yours.

Step 7: Select a Laundry Equipment Supplier

Once you have a commercial laundry business plan, location, and financing, it’s time to purchase equipment. This may be one of your biggest expenses and most important investments when starting a small commercial laundry business. The right machines can streamline your operations and maximize your profits while delivering on the services you’ve built your brand around. Selecting the best commercial laundry equipment supplier, like Western State Design, means you can look forward to peace of mind through:

High-Quality Equipment

Even if you know how to start a laundry business from a logistics standpoint, selecting the equipment may be out of your wheelhouse. WSD can recommend the right washers and dryers for commercial linen with finishing capabilities to meet the market’s demands. High-capacity, efficient equipment reduces labor and utility costs, keeping your operational expenses in check.

Turnkey Installation and Setup

A hands-on distributor like WSD understands how to set up equipment and optimize workflows for commercial operations. We can properly program machines and train employees to industry best practices, allowing your small commercial laundry to take on opportunities with hotels, medical centers, and gyms, without overextending your resources.

Ongoing Support

Consider your laundry equipment distributor a partner for the long run. WSD understands the steps to start a laundry business and can assist in any part of the process, from equipment selection to setup and ongoing support. With contracted maintenance, original parts, and fast service, WSD can take care of repairs and upkeep so you can focus on daily operations.

Step 8: Market Your Laundry Business

Promoting your business is an exciting step in the process! Here are some ideas to begin marketing your commercial laundry business and establishing your brand’s presence:

Build a business website: You’ll need a website to compete. Optimize your site so it is user-friendly, informative, and visible to searchers in your local market.
List your business on Google: A Google business listing is a free tool to boost local visibility, helping sourcing managers at clinics, restaurants, gyms, and salons find your company.
Create social media profiles: Increase your brand’s presence in the local community to spread the word about your commercial laundry business and establish relationships with the customers you’ll serve.
Invest in digital advertising: Online ads and targeted promotions can announce your new business and increase brand awareness with spas, salons, gyms, restaurants, and other local companies.
Develop a referral program: Word-of-mouth advertising isn’t going anywhere, and a referral program encourages happy customers to recommend your brand and expand your business. Steady growth and customer acquisitions often outweigh the cost of referral rewards.

Beginning a small-scale commercial laundry business is a big feat that requires a thoughtful plan and precise execution that shouldn’t be entrusted to just any partner. Western State Design provides years of experience and expertise in design, equipment planning, and maintenance. Contact a Western State Design expert today to start a commercial laundry business of any size.