Guide to Starting a Profitable On-demand Laundry Business

The laundry business, with returns averaging 20-30%, is a business that is highly in demand and offers a flexible investment opportunity that can be more profitable than real estate or other traditional options.

In this blog, we’ll see how you can start an on-demand laundry business that follows the aggregator model.

To explain this model, here you operate as a middleman by partnering with local laundry providers and connecting them with customers through an app. Customers can schedule pickups and drop-offs, which makes laundry services convenient and effortless.

Steps To Start a Profitable Laundry Business

Step 1: Performing Market Research

Market research is the foundation of any successful business, especially for laundry services, as demand can vary by area and customer demographics.

Start by assessing the demand for laundry services in your target location. Identify who your customers are and what specific services they need.

Analyze your competition by reviewing their pricing, services, and customer feedback. This will help you identify gaps in their services and turn them into opportunities to make your business stand out.

This research will give you a clear picture of whether this business can thrive in your chosen area and guide you in making strategic decisions.

Step 2: Write a Business Plan

The second step in starting your on-demand laundry business is to write a clear business plan.

This document acts as a roadmap that outlines your business goals, strategies, and the steps needed to achieve success.

Here are the key components to include in your business plan:

• Executive Summary: A brief overview of your business concept and goals.
• Company Description: Details about your business model, including how you connect customers to laundry providers.
• Market Analysis: Insights on your target market and competitive landscape.
• Marketing Strategy: Strategies for attracting and retaining customers.
• Operational Plan: A summary of daily operations, and technology needs.
• Financial Projections: Expected startup costs, revenue forecasts, and funding requirements.
• Team Management: Information about key team members and their roles.

A clear and focused business plan will guide you through the startup process and help ensure your business is positioned for growth and profitability.

Step 3: Register Your Business

Start by choosing a name for your laundry business and open a business bank account to register it. You will need to decide on a business structure, which typically includes:

• Sole Proprietorship: Simplest form, where you are the sole owner and responsible for all liabilities.
• Limited Liability Company (LLC): Provides personal liability protection while allowing flexibility in management.
• Partnership: Involves two or more people sharing ownership and responsibilities.

The structure you choose will affect your business's operations and tax obligations, so consider consulting a legal professional for guidance.

Step 4: Obtain Necessary Business Permits

The permits required will vary depending on your location and the nature of your app-based business.

You will need a general business license and potentially other permits specific to operating an online platform.

Check with your local government to determine what permits are necessary and apply for them promptly to ensure compliance.

Step 5: Secure Funding for Your Business

When starting an on-demand laundry business, your primary expenses will likely include development and marketing. Here are the key areas to consider when securing funding:

1. App Development Costs: Prioritize the cost of developing your platform, which includes the customer/delivery partner apps, a web panel for laundry stores, and an admin panel to manage the platform.
2. Marketing and Advertising: To attract customers, delivery partners, and laundry store partnerships, allocate funds for marketing efforts, including online advertising, social media promotions, and other marketing initiatives.
3. Operational Expenses: Don’t forget to account for operational costs, such as customer support costs, payment processing fees, and insurance. These costs can vary, so estimate your monthly expenses to ensure you have enough working capital.

Creating a detailed budget will help you determine how much capital you need and where to focus your funding efforts.

Step 6: Develop Your Laundry Business Platform

Once you secure funds, it's time to move on to the most crucial step—developing your laundry business platform.

As mentioned earlier, you have to offer:

• Apps for Customers: To book and track services and communicate with pickup and delivery partners.
• Apps for Delivery Partners: To receive pickup/delivery requests and track their jobs and earnings.
• Web Panel for Laundry Stores: To set up their service categories, manage their orders, and oversee their payout accounts.

You will also need an admin panel to help you manage the platform and monitor users and their activities.

For developing your laundry business platform, you have two main options: custom development and readymade app solutions.

Custom Development

Custom development is the classic method that involves hiring a development firm to build your app from scratch.

The process involves:

• Defining your app requirements and creating a wireframe.
• Designing the app’s interface based on the plan.
• Coding and developing the app’s functionality.
• Testing the app to ensure it's free of issues and bugs.
• Launching the app and maintaining it regularly.

While custom development can be time-consuming and require more resources, it also offers a fully tailored platform designed exactly to your specifications.

Readymade App Solution

Your second option for launching your app is a readymade app solution.

These are pre-developed apps that come with pre-built features and workflows, which businesses can purchase, rebrand, and launch as their own.

The process includes:

• Purchasing the ready-made app solution.
• Rebranding the app to reflect your brand, typically at no additional cost.
• Customizing the app to add any unique features (if needed).
• Testing to ensure the app functions properly.
• Launching your app live for users.

Since readymade app solutions are pre-developed, they are cost-effective and also offer a quick launch.

These are your two options for launching your laundry business app. Evaluate the options and choose the one that fits your requirements and budget.

If you opt for a ready-made app solution, you can check out our laundry delivery app solution.

With our solution, you get:

• Android and iOS apps for both customers and delivery partners.
• Web panel for laundry store partners.
• Admin panel to help you manage the platform.
• Free tech support, which includes white-labeling, server installation, app launch, and support following app rejection.
• 100% source code, allowing you to change its functionality if necessary.

Step 7: Establish Partnerships with Local Laundry Providers

Once your app is live, you need to build partnerships with local laundry stores to ensure a strong supply side for your on-demand laundry business.

Here’s how to do it:

1. Research Local Providers: Look for nearby laundry services with good reviews and a solid reputation.
2. Reach Out: Contact the laundry providers and explain how partnering with your app can help them gain more customers.
3. Offer Training: Provide guidance on how to set up and manage the store web panel and also how to make their store attractive to customers.
4. Communicate Regularly: Keep in touch to solve any issues quickly and maintain good relationships.

By following these steps, you can establish initial partnerships with local laundry providers needed to start operating your business.

Once your platform gains traction among customers, more stores will begin to join on their own.

Step 8: Marketing Your Laundry Business

To succeed in the competitive landscape, effective digital marketing is crucial to attract both customers and freelance delivery partners.

Here are some key strategies to consider:

1. Search Engine Optimization (SEO): Optimize your website and app for search engines to increase visibility. Use relevant keywords related to laundry services and local searches to drive organic traffic.
2. Social Media Marketing: Leverage platforms like Instagram, Facebook, and X (formerly known as Twitter) to engage with potential customers. Share tips, promotions, and customer testimonials to build a community and increase brand awareness.
3. Referral Programs: Implement a referral program that rewards customers for bringing in new users. Offer discounts or credits for both the referrer and the new customer to encourage word-of-mouth promotion.
4. Content Marketing: Create helpful blog posts or videos that address common laundry challenges. This not only positions your brand as an authority but also enhances SEO and attracts traffic.
5. App Store Optimization (ASO): Ensure your app is easily discoverable in Google Play Store, App Store and others by optimizing its title, description, and keywords. High-quality screenshots and positive user reviews can enhance your app’s visibility and appeal to potential users.

By implementing these strategies, you can effectively promote your laundry business and attract both users and delivery partners.

Conclusion

If you follow the steps outlined in this blog, you’ll be on the path to starting your business. However, remember that success doesn’t happen overnight.

To grow and turn a profit, you need to provide excellent customer support, monitor feedback regularly, and use it to improve your app as needed.

Additionally, maintain regular communication with store and delivery partners to address any issues or challenges they encounter on your platform. Showing genuine care for their experience helps build loyalty and strong partnerships.

Over time, you can grow into a trusted business that brings in sustainable profits.