How to Start a Dry Cleaning Business in 2021: The Ultimate Guide, Step-by-Step

how to start a dry cleaning business
how to start a dry cleaning business

Dry cleaning business is one of the most lucrative business opportunities that pays well.

Owing to the fact that the majority of people who always want to wear neat and ironed clothes pull cold feet when it comes to them doing their laundry, makes the demand for this service skyrocket.

Although operating this kind of service can be exciting, to be among the people making big cash in this line of service business requires you to plan rightly.

This article gives an ultimate guide on how to start a Dry Cleaning Business. It will always give accurate information about what this business idea encompasses.

The table of contents below will help you for easy navigation.

How is Dry Cleaning Business Operated?

Just like every other business, dry cleaning business to make it boom required determination, handwork, and time.

Aside from that, it has to do with being on schedule. Opening the store on time, keeping public and employee areas clean, and making sure that orders are fulfilled in a timely manner are all activities you can expect on a daily basis.

You will also need to make sure the equipment is operating properly, and load up the washers and dry cleaning machines with additional clothes that need cleaning to keep making good progress for all of the customers’ orders.

Required Dry Cleaning Business Skills and Experiences?

You will need to be friendly with the walk-in customers and very careful with their items. Also, attention to detail is important.

You will need to notice things like stains or damage to the clothing to point them out to the customers when they drop off the clothing for laundry or dry cleaning.

As a dry cleaner, you also need good communication skill. With that you can communicate with your customers easily.

Furthermore, time management skill. There is always a tight schedule of work necessary to get everything ready on time.

Step-by-Step Guide on How to Start a Dry Cleaning Business

Like I mentioned earlier, dry cleaning business is one of the well-paying business opportunities that is booming today.

But do you know it’s possible for you to established it and still won’t make enough money out of it?

Yea, it’s 100% possible because it is beyond getting the best physical setting with all sophisticated equipment and getting the business registered.

There are successful steps on How to Start a Dry Cleaning Business that must be followed strictly.

#1. Plan Your Business

There is a popular adage that says ‘He who fails to plan, Plans to Fail’. To start up a dry cleaning business, you must have a clear plan. Not just for the dry cleaning business alone, but for any other business at all.

In planning how to start, it’s expedient you consider;

  • The name of the Business
  • The costs
  • Who your target mnarket will be
  • How much you will charge for your service.

In choosing a name that is perfect for your business, you don’t have to choose an already existing name. You might want to operate under a business name other than your own name as a sole proprietorship.

And when registering your business name, it is necessary you check your business name on federal and state trademarks records, social media, web domain availability to ensure it’s unique.

In the cost aspect, you need to ask yourself, ‘what will it costs to set up a dry cleaning Business’. Put into consideration a deposit for lease if it won’t be a work-from-home operation, signage, laundry, and dry cleaning equipment, and a cash register.

Moreso, you need to consider the cost of cleaning supplies, coat hangers, and plastic bags, mechanical clothes rack and so many other things you might need to set up the business.

Other costs you must consider are the ongoing expenses which include rent, equipment lease payments, insurance, utilities, supplies, and marketing costs (printing and delivery expenses for promotional flyers).

Let’s move on!

Another important thing you must consider is your market target. Will your customers come from local area? will there be subscription services? what will likely be the customers allergic reactions and how can it be prevented? Answers to all these questions are to be on desk while planning.

Then, the price for your services. Considering this should depend on how much your customers can afford and the value of your services.

You can do a little bit of research to find out how much the existing laundry services charge. Do a quick survey to size up the market and find out if they are okay with their current services.

If the information you collect reveals that the market is underserved, it may be an opportunity to provide a faster, high quality, and more affordable service.

Once you are do with the planning, the next step is to form a Legal Entity.

There are different types of business. Either its a sole proprietorship, partnership, corporation or limited liablity company. Once you are done with the planning process, form a legal business entity.

Been a legal entity means it has legal rights and responsibilities, including tax filings. It can enter into contracts either as a vendor or a supplier and can sue or be sued in a court of law.

Establishing a legal entity like limited liability company will protect you from being held liable if your business is sued.

#3. Register for taxes

As a legal entity, you will need to register for a variety of state and federal taxes before you can open for business because your business has fully be recognized by the government of the state is registered in.

All you have to do is to apply for an Employer Identification Number (EIN). EIN is like a Social Security number (SSN) for your business. The unique nine-digit EIN number allows the Internal Revenue Service (IRS) to identify businesses for tax reporting.

#4. Open a Business Bank Account

Since your business is a legal entity, another wise thing to do is to open a separate account for it. Doing this separates your personal assets from your company’s assets, which is necessary for personal asset protection.

It also makes accounting and tax filing easier.

#5. Have Business Accounting

Business accounting is the systematic recording, analyzing, interpreting, and presenting of financial information.

This information will help you have a financial report; record your expenses and income. It will also help you keep a track of your financial performance and perform your compliance obligations as a business.

#6. Get Permits and Licenses

This stage is very important and must be completed. If you’re be meet up with other steps and ignore this, your business will be shut down.

Basically, in getting license, you apply for:

  • State & Local License
  • Certificate of Occupancy
  • Labor safety

The requirements and fees for state and local licenses depend on your business activities and business location. The dry cleaning business is regulated locally by the state.

Certificate of Occupancy

Since you won’t be operating a home-to-home business, you need a physical location. And to do that requires a Certificate of Occupancy. This certificate confirms that all building codes, zoning laws, and government regulations have been met.

#7. Get Business Insurance

For your business to operate safely, you need to get business insurance. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

However, there are several types of insurance policies created for different types of businesses with different risks.

One is General Liability Insurance. This type of insurance is perfect if you’re unsure of the types of risks your business may face.

The other one is Workers’ Compensation Insurance. This type of insurance is perfect if your business will have employees.

#8. Define your brand

Your brand is what your company stands for, as well as how your business is seen by the public. A strong brand will help your business stand out from competitors.

At this stage, you can promote your business using hand-delivered flyers that offer a discount coupon.

#9. Build your business website

Once you are done building your brand which must have attracted more customers, the next time is to build a business website.

With a business website, you can have an online presence which will in return expand your market.

Let’s look at some of the necessary Dry cleaning equipment!

Laundry And Dry Cleaning Equipment

The following items and equipment are needed for a dry cleaning business:

  • Washing machine
  • Washing basin
  • Generator set
  • Dryer
  • Drying rack
  • Garment conveyor
  • Ironing table or board
  • Industrial steam iron
  • Water storage or tanks
  • Wooden shelves
  • Tags
  • Nylons
  • Sink
  • Laundry detergents
  • Baking soda
  • Stain removers

Reference

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