Cleaning clothes is time-consuming work and requires lots of effort. On the other hand, there are certainly expensive and delicate garments that require dry cleaning. This is why the laundry business market is in high demand and is very profitable.
Given below is a laundry business plan that will help you understand how to get started.
If you want to take a business loan to start the laundry, you should be aware of the eligibility criteria set by the lender. This is an important part that you should know before making a business plan for laundry. Here are the basic eligibility criteria for business loans:
You must be an Indian citizen
Self-employed individuals aged between 25-65 years are eligible
Business units like private limited companies, partnerships, and limited liability partnerships are eligible for this loan
While making the business plan for laundry and planning to apply for a loan, you should know what documents you will need to submit beforehand. There are several papers you need to submit as you apply for a business loan.
Here is a list of common documents required to apply for a business loan.
A valid ID proof such as a passport, Aadhaar card, PAN card, driving licence
Proof of business such as service tax, sales tax, VAT, excise registration, income tax returns, memorandum, PAN ID or municipal tax bill
Address proof (telephone bill, ration card, electricity bill, passport, trade licence, sales tax certificate
Financial documents, including last two years’ ITR, 6 months’ bank statements, last 2 years P & L and balance sheet audited by CA
Proof of age such as passport, PAN card, voter card
Here are several other documents required specific to the applicant type.
The sole proprietor's registration document
Proof of individual identity
GST returns of the last 3 years
Income tax returns of the last 3 years
Last 6 months' bank statement of the primary banker
Copy of periodic stock
Creditor's statement for the last 3 months
Identity proof of the sole proprietor: PAN card, Aadhaar card, driving licence, passport, voter card
Proof of address: ration card, driving licence, passport
The laundry business is becoming more popular day by day and holds an unlimited potential to generate profits. To start a laundry business that will succeed in this competitive market, you should have a proper laundry shop business plan. However, do not forget to conduct thorough research and learn more about the industry before investing.
There are many types of washing machines, depending on the load and capacity. Some of the machines you need for this business are commercial washing machines, stacked washer-dryers, industrial washing machines, light commercial washing machines, coin-operated machines, etc.
The start-up costs will depend on several factors, such as licensing fees, equipment costs, and more. Depending on this, you would need to invest at least ₹10 Lakhs or more.
Yes, there is a high demand for laundry business in India. Especially in the urban areas, where many people have 9 to 5 jobs and students doing higher education, the demand for laundry has risen rapidly.
You do not necessarily have to register. However, registering your establishment under the MSMED Act or the Shops and Establishment Act will make offers via government schemes more accessible. It will also ease the process of taking a loan from any financial institution.
Dry cleaning service is the most profitable operation in the laundry markets. The profit for this operation can go as high as 150% of the operating cost. Even though some people do not need regular cleaning services, dry cleaning is a common service that everyone needs at some point.
Yes, location is one of the main factors for a laundry business to succeed in its market. If the business is not easily accessible or located in a remote area, it will not be able to generate enough sales. The ideal location for laundries is in urban areas.