A laundry pickup and delivery service is a business that is involved in the pickup and delivery of clothes from a customer to a laundry or dry-cleaning service and back to the customer. Most laundry companies usually offer this service in any destination within their coverage area.
The process of ordering for this service is through their telephones, website, or customized mobile app and a lot of these companies allow customers to keep accounts with them to make frequent ordering convenient. Payments are usually done either by credit card or cash, with the laundry or dry-cleaning company returning a percentage to the delivery service.
Recent data released shows that the global dry-cleaning and laundry service market size was estimated at USD 60.9 billion in 2019 and it reached USD 63.2 billion in 2020. The market size is expected to reach USD 14.4 billion by 2028. It is estimated to grow at a CAGR of 4 percent from 2022 to 2028.
Steps on How to Start a Laundry Pickup and Delivery Service Business
Table of Content
Conduct Market Research
If you are considering starting a laundry pickup and delivery business, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your laundry pickup and delivery business should be to develop market-based research questions in line with your overall business goals and objective.
In this regard, you should source information that will help you maximize your business, give you a clue of what your potential market will be looking out for from a laundry pickup and delivery business, and also help you operate your laundry pickup and delivery business with less stress and build the business to profitability.
a. Who is the Target Market for a Laundry Pickup and Delivery Business?
Laundry and dry-cleaning companies, households, assisted living homes, nursing homes, hostels, dormitories, camp houses, and everyone who resides in the location where you intend to operate your laundry pickup and delivery business.
b. Is Laundry Pickup and Delivery Business a Profitable Business?
Yes, the laundry pickup and delivery business is profitable. This is supported by the fact that the industry is projected to grow by USD 14.4 billion by 2028 with an estimated CAGR growth of 4 percent from 2022 to 2028.
c. Are There Existing Niches in the Industry?
It is important to state that there is no known niche area when it comes to the laundry pickup and delivery business. Every player in this line of business is involved in the pickup and delivery of clothes as requested by their customers.
d. Who are the Major Competitors?
- Chattanooga Laundry Delivery Service
- Laundry Genie
- Tide Cleaners
- Laundry Care/Push Laundry
- Martinizing Dry Cleaning
- Lapels Dry Cleaning
- e-laundry USA
- Laundry Heap
- Laundry Care
- Drive Cleaning
- Laundry Solutions Company
- Lazybones Laundry
- Freshly Folded
- Wash & Fold Laundry Service
- Push Laundry
- Pick Up My Wash
- Laundrapp: Dry Cleaner & Laundry Service
- Liox Laundry Service & Dry Cleaning.
e. Are There County or State Regulations or Zoning Laws for Laundry Pickup and Delivery Business?
There are no specific county or state regulations and zoning laws for laundry pickup and delivery businesses, players in this industry are expected to work with the existing regulations governing such business in the county or state where their business is domiciled.
f. Is There a Franchise for Laundry Pickup and Delivery Business?
Yes, there are franchise opportunities for laundry pickup and delivery businesses. Here are some of them;
- Martinizing Dry Cleaning
- OneClick Cleaners
- Dryclean USA.
g. What Do You Need to Start a Laundry Pickup and Delivery Business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- Delivery Vans or Bikes
- Commercial Driver’s License (CDL) (at least a Class B CDL)
- EIN (Employer Identification Number) / Federal Tax ID Number.
- A Corporate Bank Account
Choose a Memorable Business Name Ideas for Laundry Pickup and Delivery Business
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a laundry pickup and delivery business are;
Creative Laundry Pickup and Delivery Business Name ideas
- Josh Goldberg© Laundry Delivery, Inc.
- Praise Vitalis® Laundry Delivery, LLC
- Evergreen© Laundry Delivery, Inc.
- Laundry Solutions® Laundry Delivery Company, Inc.
- Laundry King™ Laundry Delivery Company, Inc.
- Cleanup Line™ Laundry Delivery Company, LLC.
- Frenzy Gang© Laundry Delivery Company, LLC
- Delivery Guys® Laundry Delivery Company, Inc.
- Star Glaziers© Laundry Delivery Company, Inc.
- One Twenty™ Laundry Delivery Company, LLC
- Phil Foden® Laundry Delivery Services, LLC
- Tango & Charlie® Laundry Delivery Company, Inc.
- Thomas Page© Laundry Delivery Company, LLC
- White Angels® Laundry Delivery Company, Inc.
- Mike Orlando® Laundry Delivery Company
- North End™ Laundry Delivery Company, Inc.
- Zaps Network® Laundry Delivery, Inc.
- The Vintage Group© Laundry Delivery Company, Inc.
- Finger Snaps™ Laundry Pickup and Delivery Company, LLC
- Timely People™ Laundry Pickup and Delivery Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for Laundry Pickup and Delivery Business?
When it comes to the business structure of a laundry pickup and delivery business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.
Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Laundry Pickup and Delivery Business?
- General Business License
- Commercial Driver’s License (CDL) (at least a Class B CDL)
- Zonal Permits
- Signage Permit
- Proof of ownership, proper identification, and vehicle license
d. What Type of Certification is Needed to start a Laundry Pickup and Delivery Business?
You don’t need any certifications to start a laundry pickup and delivery business.
e. What Documents are Needed to Open a Laundry Pickup and Delivery Business?
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval (For your kitchen and parking)
- Certificate of Incorporation
- Commercial Driver’s License (CDL) (at least a Class B CDL)
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a laundry pickup and delivery business, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Laundry Pickup and Delivery Business?
The startup cost for a laundry pickup and delivery business is not uniform. A laundry pickup and delivery business will cost from $5,000 – $100,000 to start and that can easily go higher depending on your overall business goals and objectives.
b. What are the Costs Involved in Starting a Laundry Pickup and Delivery Business
- The total fee for registering the Business in the United States of America – is $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $1,300.
- Marketing expenses for $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- Insurance (general liability, workers’ compensation, and auto insurance) coverage at a total premium – $2,400.
- Rent and renovation – $35,000
- Other start-up expenses like phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, fueling of the delivery vans and bikes, payments of bills et al) – $25,000
- The cost for store equipment (cash register, security, ventilation, signage) – $3,750
- The cost of purchase of delivery vans and bikes – $30,000
- The cost of launching a website – $1,200
- Miscellaneous – $5,000
c. What Factors Determine the Cost of Opening a Laundry Pickup and Delivery Business?
- The size of the delivery business (number of delivery vans and bikes you intend to start the business with)
- The choice of location
- The required licenses and permits
- The cost for branding, promotion, and marketing of the laundry pickup and delivery business
- The cost of insurance
- The cost of registering the business
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
It is not compulsory to build a new facility for your laundry pickup and delivery business because the nature of the business makes it possible for you to get everything done on the go or online without owning an office facility.
e. What are the Ongoing Expenses of a Laundry Pickup and Delivery Business?
- Utility bills (internet subscriptions, phone bills, signage, software renewal fees et al)
- Salaries of employees
- Delivery vans and bikes maintenance
- Marketing costs
f. What is the Average Salary of your Staff?
- Chief Operating Officer (Owner) – $38,000 Per Year
- Manager – $30,000 Per Year
- Delivery Van and Bike Driver – $26,800 Per Year
- Call Center Agents – $26,500 Per Year.
g. How Do You Get Funding to Start a Laundry Pickup and Delivery Business
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Zaps Network® Laundry Delivery Services, Inc. is a licensed laundry pickup and delivery company that will be based in New York City, New York but operate all across major cities in New York. Zaps Network® Laundry Delivery Services, Inc. has been able to secure all relevant licenses and permits to operate throughout the United States.
b. Products and Service
- Laundry pickup and delivery services.
c. Mission Statement
Our mission is to build a laundry pickup and delivery business that will meet the needs of our customers in the regions and cities where we will cover and sell franchises across the United States of America and Canada.
Our vision is to become one of the preferred choices for individuals and organizations when it comes to laundry pickup and delivery in the whole of New York City.
d. Goals and Objectives
The goals and objectives of a laundry pickup and delivery business are to bridge the gap between laundry or dry-cleaning services and their customers.
e. Organizational Structure
- Chief Operating Officer (Owner)
- Delivery Van and Bike Drivers
- Call Center Executives.
a. SWOT Analysis
- Excellent operational history
- Robust relationships with key stakeholders
- Experience and trained professionals.
- Excellent customer testimonials.
- Reliable and efficient delivery vans and bikes
- The owner is new to large scale marketing
- We will need a loan to purchase the latest delivery vans and bikes
- The owner is currently running the business solo without owning a laundry or dry-cleaning facility
- Lack of economies of scale.
- The rising working population coupled with the rising spending on clothes is expected to fuel market growth
- Growing eCommerce activities such as people ordering laundry services online
- The hospitality and tourism industries are expanding rapidly, which will also augment the demand for laundry and dry-cleaning facilities
- Increase in the number of laundry or dry-cleaning services that want to leverage online ordering.
- Loans diminish profitability until they are paid off
- The first year will be financially tight while we gain customers and pay off loans
- Competition in the area could increase. For example, the coin-operated segment accounted for the highest revenue share in 2020 and is projected to register a CAGR of 4.2 percent from 2022 to 2028
- Management of employees requires time, money, and effort
- The regulatory department could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses
b. How Do Laundry Pickup and Delivery Businesses Make Money?
Laundry pickup and delivery businesses make money by charging clients for the pickup and delivery of clothes.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Introduce your laundry pickup and delivery company by sending introductory letters to laundry and dry-cleaning companies, households, assisted living homes, nursing homes, camp houses, and other stakeholders in and around the city you intend to cover.
- Advertise your laundry pickup and delivery business in community-based newspapers, local TV and radio stations
- List your business and services on yellow pages ads (local directories)
- Leverage the internet and mobile apps to promote your laundry pickup and delivery brand
- Engage in direct marketing and sales
- Deliberately brand your laundry pickup and delivery vans and bikes
- Encourage the use of word-of-mouth marketing (referrals)
a. How Much Should You Charge for your Service?
Most laundry pickup and delivery businesses charge based on the quantity of the clothes and the distance the clothes are to be picked up and delivered. Generally, fixed fees start from $1.50 per pound of laundry and are paid by the customer, while percentages range from 20 percent to 30 percent and are paid by the laundry facilities and dry-cleaning services companies.
b. How Much Profit Do Laundry Pickup and Delivery Business Owners Make a Year?
It depends, but available reports show that on average, a laundry pickup and delivery business owner should net more than $60,000 per year assuming they have steady clientele.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the laundry pickup and delivery business
- The location the laundry pickup and delivery business is covering
- The management style of the business
- The business approach of the laundry pickup and delivery business
- The advertising and marketing strategies adopted by the laundry pickup and delivery business.
- The number of years the laundry pickup and delivery business is in business
d. What is the Profit Margin of a Laundry Pickup and Delivery Business?
The profit margin of a laundry pickup and delivery business is not fixed. It could range from 15 percent to 25 percent.
e. What is the Sales Forecast?
Below is the sales forecast for a laundry pickup and delivery business. It is based on the location of the business and other factors as it relates to such startups in the United States;
- First Fiscal Year: $240,000
- Second Fiscal Year: $330,000
- Third Fiscal Year: $450,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Laundry Pickup and Delivery Business?
- The demography of the location
- The demand for laundry pickup and delivery services in the location
- The purchasing power of businesses and residents of the location
- Accessibility of the location
- The number of laundry pickup and delivery businesses, and laundry or dry-cleaning services in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Laundry pickup and delivery business?
- New York City, New York
- Dallas, Texas
- Columbus, Ohio
- Oklahoma City, Oklahoma
- Chicago, Illinois
- Boston, Massachusetts.
- Los Angeles, California
- Las Vegas, Nevada
- Miami, Florida
- Washington DC
c. What Equipment is Needed to Operate a Laundry Pickup and Delivery Business?
- Laundry delivery vans and bikes
- Laundry bags, hanger, and casing
- Relevant software (Apps).
When it comes to hiring employees for a standard laundry pickup and delivery business, you should make plans to hire a competent chief executive officer (you can occupy this position), manager, delivery driver, and call center executives.
Launch the Business Proper
You may not need to host a party to open your laundry delivery business since it is very likely that you may not have an office at that point. The most important thing to do for the business at this point is to create a whole lot of publicity for it. This is because the success of your laundry delivery service is dependent on the right people knowing about it.
a. What Makes a Laundry pickup and delivery business Successful?
- Choose a good location, and reliable delivery vans and bikes to launch the business
- Partner with leading laundry or dry-cleaning companies in your city
- Build reliable and easy to use laundry pickup and delivery apps
- Hire only competent, hardworking, and trustworthy staff
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your laundry pickup and delivery business
- Leverage all available online and offline platforms to promote your laundry pickup and delivery business
b. What Happens During a Typical Day at a Laundry Pickup and Delivery Business?
- The business is open for the day’s work
- The delivery vans and bikes are cleaned, and ready for business
- Laundry is picked up and delivered
- Schedule maintenance of delivery vans and bikes are carried out
- Marketing/website upkeep
- Administrative duties
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Laundry Pickup and Delivery Business?
- Good driving skills
- Excellent logistics handling skills
- Customer services skills
- Interpersonal skill
- Business management skills
- Work experience in the laundry pickup and delivery industry
- Experience in managing people
- Experience in business administration
- Experience in handling relevant software apps.