How To Start A Profitable Laundry Business

Are you thinking about starting a laundry business? Whether you want to run a laundromat, offer laundry pickup and delivery, or work from home with a wash-and-fold service, there are lots of ways to get started.

The laundry industry is huge and keeps growing. People will always need help with their clothing. But with so many choices, it can be hard to know where to begin. This handy guide will explain the different types of laundry businesses, show you how to start and promote your services, and help you turn new customers into regulars.

1. Choose the right laundry business model for your situation

Before you buy your first washing machine, think hard about which type of business fits your goals, budget, and target market:

a. Laundromat model

The traditional laundromat business is a good option if you’re looking for a physical location and semi-passive income. It’s not exciting, but it’s a solid, dependable business with consistent demand. 

Some tips:

• Look for opportunities to buy existing businesses as older laundromat owners seek to retire.
• It’s easy to stand out with some design updates and extra services. For example, the Laundry Cafe in London, Ontario has a pinball machine, coffee and snacks, and comfortable sofas. Fresh & Clean laundries in San Diego offer free WiFi, snack vending machines, and a kids’ play area.
• You can charge extra for a dropoff service.

If you’re considering buying an existing laundromat, we highly recommend reading the articles at Laundromats 101, which offer solid advice from a couple who have actually done it.

b. Pickup and delivery laundry service model

Pickup and delivery services serve busy professionals and families who want clean clothes without fuss, and they’re the fastest-growing business opportunity in the laundry market.

You can offer a pickup and delivery service from a traditional laundromat, or from an industrial laundry facility. The advantage of using a dedicated facility is that you can find a location with lower rents.

Some tips:

• Encourage repeat business and eliminate plastic waste by offering your customers reusable bags and totes. The Laundry Brothers in Vancouver is a good example. Providing bags also ensures standard load sizes, making pricing easier. 
• Consider both commercial customers and households. Hotels, guesthouses, AirBnBs, hospitals, vet clinics, restaurants, daycares, hair salons, gyms, and spas are all examples of businesses that need laundry services. 

The pickup and delivery model is technology-intensive. Apart from laundry equipment, you will need to invest in:

• A website where customers can book a service. Ideally, they should be able to choose their pickup and delivery times. A mobile app is a nice extra but not essential.
• A delivery management system like Routific so you can offer accurate time windows, plan your pickups and deliveries efficiently, and communicate ETAs to your customers.

c. Home-based wash and fold laundry model

Home-based laundry businesses are great for those testing the waters or looking for a side hustle. If you’re one of the rare people who actually enjoys doing laundry, why not make some money out of it?

This is a business where you can start out very small to test the waters. Your startup and marketing costs can be pretty much zero: tell friends and family, put up notices at local businesses, and mention your service in neighbourhood groups online. 

Some tips:

• Check with your local government about bylaws and regulations. You don’t want to end up paying fines for running an illegal business.
• Don’t skimp on financial planning just because this is a small home-based business. Charging too little could lead to depleting your own resources with every sale you make. Calculate your costs accurately and pay yourself a good wage for your labor — otherwise you’ll burn out. 

Once you’ve chosen your model, you can move on to market research and planning.

2. Do your market research and write a business plan

Every successful business idea starts with detailed market research and a clear business plan. Your business plan should answer at least these questions:

• Who are your competitors? Visit local laundromats and try out pickup and delivery services to see how they operate, and what you might be able to do better.
• What are their pricing models? 
• What are the opportunities in your local market? Could you introduce missing service offerings like eco-friendly laundry services, commercial laundry, or special care for comforters and delicate items?

Your business plan should cover:

• Your chosen business model and target market
• Startup costs and funding sources
• Service offerings (wash-and-fold, drop off, dry cleaning services, delivery service, etc.)
• Pricing strategy
• Marketing strategy (social media, referrals, word-of-mouth)
• Financial projections and profitability goals

Your business plan doesn’t have to be long or complicated, but it does need to be written. Do the homework, and be honest with yourself about what will work for you in the long term. 

3. Deal with legal, licensing, and liability paperwork

• Start by registering your laundry business, and choosing if you want to run it by yourself, with a partner, or as a company. 
• Make sure you get all the business licenses and permits you need to operate in your area. 
• Before you start accepting drop offs, get insurance that protects you if clothes are lost, damaged, or if someone gets hurt at work. 
• Set up your payment options. Coin-op laundromats are still viable, but depending on your market you might want to be able to take credit card payments as well. 

For more details, check out our article and free business plan for setting up a delivery service.

4. Invest in high-quality laundry equipment

Laundry machines are the backbone of your business, so invest in good quality. You’ll need washers and dryers that can handle constant large loads, while using water and electricity efficiently. 

You should also have enough laundry detergent, fabric softener, and special supplies for items that need extra care.

Don’t forget to folding tables, carts, and storage shelves for organizing clothes, especially if you offer wash-and-fold services. 

If you plan to pick up and deliver laundry, you will need a reliable vehicle as well.

5. Set your pricing and service offerings

To set good prices for your laundry business, check what other local laundry businesses are charging. This will help you decide how much to charge and how to stay competitive.

You can offer different prices for different services, like basic wash-and-fold, fast service, special care for delicate items, commercial laundry, or dry cleaning. This is called tiered pricing.

Always show your prices clearly in store, on your website and in your ads. Being open about your prices helps customers trust you and can bring in more business.

Popular service offerings to consider include:

• Self-service laundromat
• Drop off and pickup wash-and-fold service
• Laundry pickup and delivery service
• Commercial laundry for hotels, restaurants, and spas
• Dry cleaner partnerships for delicate or specialty items

5 non-negotiables you need to get right for a successful laundry business

• Location: For laundromats, choose a spot with high foot traffic, ample parking, and visibility. For pickup and delivery services, find a location with the right combination of easy accessibility and competitive rent.
• Branding: Pick a memorable name and logo that reflects your values.
• Website & social media: For a pickup and delivery service it’s essential to build a user-friendly website with online booking, pricing, and FAQs. Use social media to showcase clean clothes, happy customers, and special offers.
• Marketing strategy: Combine digital marketing (local SEO, Google Ads, social media) with local outreach (flyers, partnerships, word-of-mouth, and referrals). Target busy professionals and families who value convenience and reliability.
• Customer service: Train your team to deliver excellent customer service, handle special requests, and resolve issues quickly. Personal touches, like remembering customer preferences or offering loyalty discounts, drive repeat business.

How to optimize a pickup and delivery laundry service for growth

The difference between a successful laundry pickup and delivery business and a struggling one is simple: Efficient delivery operations. 

So what does an efficient delivery operation look like? You need:

• Optimal route planning: Use delivery management software like Routific to plan efficient pickup and delivery routes that minimize drive time and fuel costs. The software automatically factors in traffic patterns, delivery windows, and vehicle capacity to create optimal daily routes.
• Accurate time windows and ETAs: Customers like to know when their laundry will arrive — not just what day, but what time.
• Good communication: Real-time tracking and automated updates keep customers informed without constant phone calls.
• Proof of delivery using digital signatures or photos. This protects your business from “we never got our laundry” disputes, while giving customers peace of mind.

💡Routific is an easy-to-use delivery management tool for small businesses. Try our 7-day free trial to see the benefits for yourself.

Once you have a good delivery management system in place, you have a base for further improving your business:

• Track your delivery metrics: These are things like average delivery times, fuel costs per route, and customer satisfaction scores. Use this data to find out which neighborhoods are most profitable and where you're losing money on long drives.
• Expand strategically: Adding customers in areas where you already deliver is far more profitable than chasing individual customers across town.
• Diversify your service mix: Commercial accounts (hotels, salons, restaurants) provide steady volume and predictable pickup schedules that help fill your routes during slower residential periods.

Scale up, then diversify

Once your laundry business is running smoothly, it’s a great time to look for new ways to grow. For example:

• Add a dropoff wash-and-fold service to a laundromat.
• Offer special services for delicates, woollens, and bulky items.
• Start offering pickup and delivery services.
• Buy more washers and dryers.
• Open a new location.
• Consider franchising your model. India’s Washmart is a good example. 

Final tips for laundry entrepreneurs

There are no right and wrong ways to get a small business off the ground. Your journey is bound to be unique in many ways. But some fundamentals will always apply:  

• Pick the business model that fits your budget, goals, and target market.
• Invest in high-quality laundry machines and equipment for reliability.
• Prioritize customer experience, communication, and on-time delivery.
• Use technology to optimize routes, scheduling, and marketing.
• Stay flexible—adapt your service offerings as the laundry market evolves.

Ready to start your own laundry business? With the right plan, equipment, and marketing strategy, you can start today to build a profitable laundry service business that serves your community and offers reliable cash flow.