How Much Capital Do You Need to Start a Laundry Business?
Thinking about starting a business but not sure what to go for? One option you might want to consider is a laundry service. With everyone’s busy lifestyles these days, many people prefer having their laundry done for them instead of doing it at home. It saves time and the results are cleaner and fresher clothes.
Curious about how much it costs to start a laundry business? In this article, we'll break it down. We’ll go over the business opportunities, how to get started, estimated costs, potential profits, risks, and tips for success.
Laundry Business Opportunity
- High and Stable Demand
Dirty laundry is something everyone needs to deal with. As long as people need clean clothes, laundry businesses will always be in demand. This is especially true in densely populated areas, boarding houses, campuses, and residential neighborhoods.
- Adaptable Capital
Laundry businesses can be started small (just 1–2 washing machines) or big, with a full-service offering.
- High Repeat Orders
If customers are happy with your service, they’ll come back. Many may even become regular, monthly customers.
- Growth Potential
Starting with kilo laundry, you can branch out into services like shoe, bag, and carpet cleaning or even add a pick-up and delivery service.
With a wide market and constant demand, laundry businesses have low risks of failure, as long as you manage them well.
Also Read: How to Calculate Capital and Selling Price to Make Your Business More Successful
How to Start a Laundry Business
Before you dive into the laundry business, there are a few things you need to prepare to ensure things run smoothly from the start. Here’s a step-by-step guide:
1. Choose the Type of Laundry Service
First, decide on the type of laundry service you want to offer. Here are some popular options:
- Kilo Laundry → The most common service, priced per kilogram, perfect for students and families.
- Premium Laundry → Offers higher quality with imported fragrances, neatly folded clothes, and exclusive packaging.
- Express Laundry → Completed within 1 day or even a few hours. Higher prices but great for customers in a hurry.
- Shoe & Bag Laundry → A trendy service, popular among younger customers.
Choosing the right type from the start will help you focus on preparing your capital, equipment, and marketing strategy.
2. Pick a Strategic Location
Location is key to the success of a laundry business. Choose a spot that’s close to your target audience, like:
- Boarding houses or campuses → Students prefer kilo laundry services.
- Densely populated neighborhoods → Young families often go for laundry services because they’re convenient.
- Near office areas → Ideal for offering express laundry services.
Make sure the location is easy to get to, visible from the road, and has enough parking space for customers.
3. Get the Necessary Equipment
Equipment is the biggest investment in a laundry business. Be sure to purchase durable and suitable equipment. You’ll need:
- At least 1-2 large-capacity washing machines.
- A drying machine to speed up the process, especially during rainy seasons.
- A steam iron for neat ironing and energy efficiency.
- A digital scale for weighing customer laundry accurately.
- Other supplies like laundry bags, hangers, baskets, detergent, and fragrances.
The more complete your equipment is, the faster and more professional your service will be.
Also Read: Opportunities and How to Start a Digital Printing Business
4. Manage Your Team
If you’re starting with limited capital, you can manage the business on your own at first. However, if you’re aiming for a bigger operation, you’ll need to hire employees for tasks like washing, ironing, and customer service. Having a solid team will ensure quicker service and happier customers.
5. Set Up an Organized System
Having a well-organized system is crucial. Make sure you keep track of each customer’s laundry to avoid mistakes. You can use a manual system or even a laundry app to record orders. Don’t forget to track income and expenses to manage finances better.
6. Promotions and Branding
Promotions are essential to attract new customers. You can use social media platforms like Instagram, TikTok, or WhatsApp to market your laundry service. Some promo ideas include:
- Discounts during your first week of business.
- Free 1 kg for every 10 kg washed.
- Free pick-up and delivery for certain customers.
In addition to promotions, create a strong brand identity—think about your laundry name, logo, and design for receipts and packaging.
7. Set Up Payment Methods
These days, most people prefer to pay non-cash. So, in addition to accepting cash, it’s also a good idea to offer digital payment options such as bank transfers, e-wallets, or QRIS. This makes the payment process smoother and gives your business a more modern, professional vibe.
Example Capital Breakdown for a Laundry Business
The capital needed for a laundry business can vary depending on the location and size of the operation. Below is an estimate for a small-scale kilo laundry:
| Requirement | Estimated Cost |
| Washing machines (2 units) | Rp 8.000.000 |
| Drying machine | Rp 6.000.000 |
| Steam iron | Rp 1.500.000 |
| Digital scale | Rp 500.000 |
| Supporting equipment | Rp 1.000.000 |
| Plastic & fragrance | Rp 1.000.000 |
| Rent (per month) | Rp 3.000.000 |
| Renovation/business space | Rp 2.000.000 |
| Promotional costs | Rp 1.000.000 |
| Total Initial Capital | ± Rp 24.000.000 |
If you want to start on a smaller scale, you could buy just 1 washing machine, which would cost around Rp 10–15 million.
Laundry Business Profit
The profits in the laundry business can be quite promising, especially if you’re located in a strategic area.
- Average price for kilo laundry: Rp 7,000 – Rp 10,000/kg
- For example, if you serve 20 customers per day with an average of 3 kg per person:
20 x 3 kg x Rp 8,000 = Rp 480,000/day - In one month (30 days): Rp 480,000 x 30 = Rp 14.4 million/month
After deducting operational costs (electricity, water, employee salaries, etc.), the net profit could range from Rp 5-7 million per month. As the customer base grows, so will your profit.
Risks in the Laundry Business
While the laundry business seems promising and has a broad market, there are still risks to consider. Here are some of the common risks:
- Machine Damage
Washing machines and dryers are crucial assets for your business. If they break down, operations will come to a halt, and customers will be disappointed. Regular maintenance and cleaning will prevent this.
- Customer’s Clothes Issues
The risk of customers’ clothes getting damaged or even lost is always there. This can hurt your business reputation if not handled correctly. To avoid this, use labels for each order, check clothing materials before washing, and clearly communicate any special washing instructions.
- High Competition
In densely populated areas, there’s likely to be strong competition with other laundry businesses offering competitive prices. You’ll need a unique service to stand out, such as offering free pick-up, express services, or great promotions.
- High Utility Bills
Laundry machines use a lot of electricity and water, so your utility bills may be high. To reduce costs, use energy-efficient machines, manage laundry cycles effectively, and monitor all operating expenses.
By understanding these risks from the start, you can develop preventative strategies. Remember, the laundry business isn't just about washing, but also about management and customer service.
Also Read: Boutique Business: Details of Capital, Profits, and Tips for Success
Tips for a Successful Laundry Business
To help your laundry business grow quickly, consider these tips:
- Use high-quality fragrances to ensure laundry smells fresh for longer.
- Keep an organized system for tracking orders to avoid mistakes.
- Offer attractive promotions like “Wash 10 kg, get 1 kg free” or “Discounts on certain days.”
- Be punctual! If you promise a 2-day turnaround, make sure to meet that promise.
- Use non-cash payment methods (QRIS, transfers, e-wallets) for more convenience.
- Focus on customer service—being friendly and responsive will keep customers coming back.
- Add express laundry services for those who need things done quickly.
- Promote your business on social media to attract more customers.
- Offer free pick-up and delivery to make it even more convenient for your customers.
Want to make managing your laundry business easier? Don’t just focus on washing machines and fragrances—make sure your payment system is practical and secure. Use Ayolinx for online payments. With a complete, fast, and flexible payment system, your customers will feel more at ease, and your business will look more professional.
