Dry cleaning is a service that is sought after and needed by many people. Because there is always a demand for dry cleaning services for clothes and home goods, this business can be started in various locations in the world. With proper planning and implementation, starting a dry cleaning business can be an attractive business opportunity.
Step
Part 1 of 2: Preparing for Business
Step 1. Gain experience
Before starting your own business, try working at a dry cleaner in your city for a few months to a year. This helps you determine if a dry cleaning business is right for you, and teaches valuable skills that come in handy when running your own business. You will also learn the types of equipment needed, the approximate amount of funds needed to open a business, and how to interact with customers.
If you can't work in a dry cleaning area, do thorough research. Read various information on the internet to find out the various needs to start a dry cleaning business, borrow books from the library, and ask people who run the industry
Step 2. Do market research
Chances are you will find it difficult to open a dry cleaning service if you have never been in this market before.
- Check census data to determine the population of your area.
- Use the phone book or the internet to find out how many dry cleaning businesses there are in your area. Should not open a business that already has many competitors in the market.
Step 3. Determine the location and business model
It's a good idea to determine it before deciding to open a business so you can take into account the cost of renting a shop. You can also label the business as an alternative dry cleaning business that provides pick-up and delivery services or uses environmentally friendly methods. This step can attract customers and fill the special needs of the local community.
- If you are going to open a laundry delivery service, prepare a reliable vehicle and driver. As such, you need to consider whether to hire staff and the number of staff needed.
- Consider opening a “green” dry cleaning business. Many traditional dry cleaning businesses use a dangerous chemical called perchlorethylene. Green dry cleaning uses environmentally friendly chemicals such as harvested carbon dioxide.
Step 4. Write a business plan
A business plan is a declaration of your professional goals and plans for achieving those goals. The plan will serve as a template for your business, and is required to raise funds if you plan to apply for a loan.
- Starting from the organization and management. Both are suitable as a starting point for business planning because they show the managerial structure of the company, the professional qualifications of each member of the business, and your plans to maintain ownership of the company.
- Next, describe the service in detail, including all the factors that separate the business from other dry cleaning businesses. You will also need to include how your services work, and list any copyrights or patents that exist, exist, or are expected to have in your business.
- Describe the marketing strategy to be executed, including how you will enter the market, develop your business, the distribution channels you will choose, and how you will market your business to customers.
- Develop a sales strategy that includes a proposed workforce and projected sales activity.
- Draft a request for grants, if needed. This draft should include the company's current funding needs, projected funding needs over a five-year period, how you will use the funds (specifically) after receiving assistance, and strategic financial plans for the future.
- After you or your accountant has analyzed the market you want to enter, draft a business financial projection. This draft includes historical financial information if you have previously been involved in this business, as well as projected financial data (estimated profit, loss, etc.) for the next five years.
Part 2 of 2: Opening a Business
Step 1. Prepare funds
After drawing up a budget and calculating the estimated profit and loss, you need to prepare funds to start running the business. The amount of funds needed depends on the location of business operations, as well as the type of equipment that will be used. You can start a dry cleaning business with a budget of approximately IDR 480,000,000, with high quality industry standard equipment for IDR 9,600,000 or more. Starting a dry cleaning business requires capital of up to IDR 7,000,000 just to open it. Consult with an accountant or financial consultant to determine the amount of money to be prepared.
- Maybe you can get an SME loan. Contact financial companies in your area, or learn more about SME loan qualifications here.
- Consider opening a franchise, instead of starting a business from scratch. Franchising has several advantages, including a well-known name/brand, and an established and real business model.
Step 2. Get the necessary permissions and licenses
You need a special permit and license to open a dry cleaning business, and renew it regularly.
- You need to contact or visit the Trade Office to obtain and deposit the forms required to open a dry cleaning business.
- If you are planning on hiring staff, you will also need to register your business for an Employer Identification Number.
Step 3. Rent or buy equipment
Your dry cleaning business cannot operate without the right equipment. This is the most expensive part of the process, but if you buy cheap, low-quality equipment, the costs can increase even more for various repairs. So, buy high-quality supplies from trusted manufacturers and retailers, or consider buying in good condition supplies from a bankrupt dry cleaning business.
Step 4. Hire staff
Choose employees who have relevant experience, and understand how to work in a dry cleaning business.
- keep in mind that you have to give employees a decent salary. You can choose to pay employees by the hour, day, or month, as long as you comply with the minimum wage rules that apply in your area.
- Even if you have staff, try to spend as much time in the shop as possible. You may need to do some dry cleaning work, especially to cut costs (instead of paying employees to do tasks you can do yourself). You also need to spend a lot of time in the store being the face of your dry cleaning business, keeping in touch with customers, and making sure clients are satisfied with your work.
Step 5. Market your business
Dry cleaning business marketing relies on bringing in customers to keep it going. You can try placing an ad in the phone book, although it can be quite expensive. You should use social media to market your business because it is free and customers can interact directly with business owners. You can even offer special discounts or coupons through social media, which entice customers to follow your business on the internet.
Tips
- If you need help opening a dry cleaning business, there are several companies that offer franchises. If you don't have a lot of capital, you should consider using the services of this company to help you open a business.
- As your business grows, you can offer additional services, including changing and washing clothes.
- Purchase a dry cleaning franchise.
- It's better if a dry cleaning business has a particular specialty or uniqueness instead of just offering dry cleaning services in general. For example, you can offer flat prices for all items or focus on leather products only.
