Investing in a coin laundry business can be a lucrative venture if executed correctly. With a booming demand for affordable and convenient laundry services, especially in densely populated areas, you're entering a growth sector. Your anticipated budget of ₱500,000 and an ROI of 1.26 in 18 months are promising figures, but they must be backed up by a well-considered business plan.
Your Investment Package Breakdown:
- Equipment: 3 units of Speed Queen-Foggia Hybrid Stacked Washer Dryers, each originally priced at ₱195,000.
- Capital: ₱500,000 (Excluded renovations and operational costs).
- Anticipated ROI: 1.26x return on your initial investment within a period of 18 months. (not inclusive of renovations and operational costs).
- Additional Costs: POS system available for extra, along with potential renovation and operational costs.
Here's how you should proceed:
1. Preliminary Market Research
Conduct comprehensive research on your target market in the Philippines, identifying potential locations, customer needs, and preferences. Understand the spending power and laundry habits of the prospective customer base.
2. Business Plan
Develop a detailed business plan to project your costs, revenues, and profits. Take into consideration the cost of equipment, utilities, manpower, and unexpected expenses. Validate whether the expected ROI of 1.26x in 18 months is achievable in your chosen location.
3. Location, Location, Location
Scout for the right location for your laundry shop. It needs to be easily accessible, safe, and visible. Ensure that it is either in a high-traffic area or a locality with a high demand for laundry services.
4. Legal and Regulatory Requirements
Handle all the necessary legal paperwork and regulatory obligations, such as business permits, licenses, and compliance with local and national laws related to running a laundry business.
5. Equipment Installation & Renovation
Procure the 3 units of Speed Queen-Foggia Hybrid Stacked Washer Dryers as planned. Also, make sure the shop layout and equipment installation are efficient to maximize service speed and minimize operating costs.
6. Operational Strategy
Develop your operations strategy, from staffing requirements to day-to-day management. Will you require 24/7 staffing, or can the operation be partially automated? Is a POS system necessary for tracking and revenue management? Answer these questions to get an operational plan in place.
7. Marketing and Launch
Prepare a marketing strategy that can include online promotion, local partnerships, and introductory discounts to entice initial customers. The sooner you can build a loyal customer base, the quicker you'll achieve your anticipated ROI.
Additional Note:
Don't forget to keep some budget aside for unexpected expenses. Also, since the anticipated ROI does not include renovation and operational costs, factor these into your business plan.
By taking these steps, you can set up your coin laundry business for success, aiming for the high ROI you’ve forecasted.
In EPIC LAUNDRY, we're assisting our new business partners to expedite the above process to ensure their new venture is smooth and steady. Feel free to contact us should you need further assistance about this.