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Dry Cleaning Business Plan Template

Written by Dave Lavinsky

Dry Cleaning Business Plan

You’ve come to the right place to create your Dry Cleaning business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Dry Cleaning companies.

Below is a template to help you create each section of your Dry Cleaning business plan.

Executive Summary

Business overview.

Oleson Cleaners is a new dry cleaner located in the heart of Phoenix, Arizona. Our mission is to provide high-quality dry cleaning services that are environmentally friendly. Unlike our competitors, we don’t use any toxic chemicals in any of our services. We use environmentally friendly solvents to keep our customers’ clothes in perfect condition without harming the environment. We aim to be one of the finest dry cleaning businesses in the area and guarantee that every garment will be in better condition than when the customer dropped it off.

Oleson Cleaners is headed by its founder, Jacob Oleson. He has worked at a local dry cleaner for ten years as an Assistant Manager. His experience at this job has given his extensive knowledge of the industry, dry cleaning techniques, and customer service. As a manager, he also gained in-depth knowledge and experience in the operations and management aspects of running a business. He also holds a degree in Business Administration.

Product Offering

We are a local dry cleaner that provides dry cleaning services for individuals living in or near Phoenix, Arizona. We can clean any garment that requires dry cleaning, including suits, gowns, other professional wear, and household fabrics (such as table linens and sheets).

Our services are priced on a case-by-case basis, depending on the quantity and type of fabric that needs to be cleaned. Customers can call our business or check out our website to get a quote.

Customer Focus

Oleson Cleaners will target all individuals in the Phoenix area that need dry cleaning services. Specifically, it will target men and women living in the area, busy parents, and anyone else who has garments that require dry cleaning. The company will also target tourists or business professionals in the city who need a fast and efficient dry cleaning. No matter the customer, Oleson Cleaners will deliver the best service and convenience.

Management Team

Oleson Cleaners is headed by its founder, Jacob Oleson. Jacob has worked at a local dry cleaner for ten years as an Assistant Manager. His experience at this job has given his extensive knowledge of the industry, dry cleaning techniques, and customer service. As a manager, he also gained in-depth knowledge and experience in the operations and management aspects of running a business. In addition to his experience, he holds a degree in Business Administration from Arizona State University.

Success Factors

Oleson Cleaners will be able to achieve success by offering the following competitive advantages:

  • Location: Oleson Cleaners’ location is near the center of town, giving us access to commuters, local office workers, and nearby residents.
  • Management: Our management team has years of business and industry experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
  • Environmentally-friendly services: Oleson Cleaners is committed to providing dry cleaning services that are nontoxic and environmentally friendly. We are the only dry cleaner in the area that is committed to providing these services.

Financial Highlights

Oleson Cleaners is currently seeking $400,000 to launch. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital. Specifically, these funds will be used as follows:

  • Store design/build: $150,000
  • Three months of overhead expenses (payroll, rent, utilities): $150,000
  • Marketing costs: $50,000
  • Working capital: $50,000

The following graph below outlines the pro forma financial projections for Oleson Cleaners.

Oleson Cleaners Financial Projections

Company Overview

Who is oleson cleaners.

  Oleson Cleaners is headed by its founder, Jacob Oleson. He has worked at a local dry cleaner for ten years as an Assistant Manager. His experience at this job has given his extensive knowledge of the industry, dry cleaning techniques, and customer service. As a manager, he also gained in-depth knowledge and experience in the operations and management aspects of running a business. He also holds a degree in Business Administration.

Oleson Cleaners’ History

After graduating from Arizona State University, Jacob Oleson immediately began researching the local market and planning out his ideas for a dry cleaner business. Jacob incorporated Oleson Cleaners as an S-Corporation on January 1st, 2023. The business is currently being run out of Jacob’s private office, but once the build-out on Oleson Cleaners’ retail location is finalized, all operations will be run from there.

Since incorporation, the company has achieved the following milestones:

  • Found a location and signed a Letter of Intent to lease it
  • Developed the company’s name, logo, and website
  • Determined equipment and inventory requirements
  • Began recruiting key employees

Oleson Cleaners’ Services

Industry analysis.

The dry cleaner industry has been an essential industry for several decades. Many professionals and individuals need to wear high-quality fabrics that cannot be cleaned easily through traditional means. Dry cleaning cleans these delicate fabrics to perfection without causing any damage, wear, or tear.

The dry cleaner industry is thriving and is expected to continue its success throughout the next few years. The industry is expected to grow at a compound annual growth rate (CAGR) of 3.4% over the next five years. As people continue to live their busy lives, they will continue to depend on dry cleaners and other laundry services to keep their clothes clean and in perfect condition. Therefore, we expect the industry to continue to grow for the foreseeable future.

Customer Analysis

Demographic profile of target market.

Oleson Cleaners will target men and women in the Phoenix area that need dry cleaning services. Specifically, the company will target busy parents, tourists, and professionals who need quick and efficient dry cleaning services.

The precise demographics for Phoenix, Arizona are:

Customer Segmentation

Oleson Cleaners will primarily target the following customer profiles:

  • Busy parents and families
  • Business professionals

Competitive Analysis

Direct and indirect competitors.

Oleson Cleaners will face competition from other companies with similar business profiles. A description of each competitor company is below.

Cascade Dry Cleaners

Cascade Dry Cleaners is a local small dry cleaner that offers affordable services for the residents of Phoenix, Arizona. They can clean anything that requires dry cleaning, including ball gowns, suits, and linens. They also offer tailoring and alterations for an additional fee. The business is open nearly 24/7 so anyone who is interested in their services can drop off their garments any time.

All American Laundromat

All American Laundromat was established in 2009 and offers a variety of laundry services. Their services include: Coin-operated washers & dryers, dry cleaning, and wash and fold services. Their main clientele includes multifamily housing, colleges and universities, and hotels. They have three locations in the area.

Super Dry Cleaning

Super Dry Cleaning has been open since 2005. They offer affordable dry cleaning services to anyone living or working near downtown Phoenix, Arizona. They can clean any garment that comes into their store and guarantee speedy service. Customers can choose to pick up their clothes when they are ready or get them delivered for an additional charge.

Competitive Advantage

Oleson Cleaners will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Oleson Cleaners will offer the unique value proposition to its clientele:

  • Commitment to environmentally friendly services
  • Well-trained staff that prioritizes customer satisfaction
  • Service built on long-term relationships
  • Thorough knowledge of the industry

Promotions Strategy

The promotions strategy for Oleson Cleaners is as follows:

Customer Loyalty Programs

Oleson Cleaners will create a winning customer loyalty program to keep our best clients coming back again and again. In addition, we will send periodic, regular emails and text messages to customers. These communications will ensure customers are satisfied with our services and remind them after a period of time that they may need to utilize our services again. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.

Website/SEO

Oleson Cleaners will develop a professional website that displays pictures of our locations and lists the services we provide. We will also invest in SEO so that the company’s website will appear at the top of search engine results. Oleson Cleaners will also publish frequent newsletters and blogs to educate our customers on promotions and discounts.

Social Media

Oleson Cleaners will maintain an active presence on various social media platforms including Facebook, Instagram, Twitter, LinkedIn, TikTok, and YouTube, with the marketing manager updating these accounts regularly.

Word of Mouth/Referrals

Jacob has built up an extensive list of contacts over the years by providing exceptional service and expertise to his customers. His network of contacts has committed to spreading the word about his new company to their friends and families.

Oleson Cleaners’ pricing will be competitive so customers feel they receive great value when utilizing our dry cleaning services. Customers can expect to receive personalized attention when visiting our location.

Operations Plan

The following will be the operations plan for Oleson Cleaners.

Operation Functions:

  • Jacob Oleson will be the Owner and Manager of the company. He Will oversee all staff and manage daily operations. Jacob has spent the past year recruiting the following staff:
  • Beth Clark – Accountant/Bookkeeper will provide all accounting, tax payments, and monthly financial reporting.
  • Anna Lopez– Marketing Manager will provide all marketing and advertising campaigns for Oleson Cleaners.
  • Robert Ellis – Assistant Manager will supervise the team of attendants and manage the staff schedule.
  • Jacob will also hire several staff to help run the store and provide dry cleaning services for customers.

Milestones:

Oleson Cleaners will have the following milestones completed in the next six months.

  • 7/202X – Finalize contract to lease storefront.
  • 8/202X – Finalize personnel and staff employment contracts.
  • 9/202X – Purchase equipment and supplies.
  • 10/202X – Begin word of mouth and online marketing campaigns.
  • 11/202X – Begin moving into Oleson Cleaners.
  • 12/202X – Oleson Cleaners opens for business.

Financial Plan

Key revenue & costs.

Oleson Cleaners’ revenues will come primarily from providing dry cleaning services.

The lease of the business space, supplies, and labor expenses are the key cost drivers of Oleson Cleaners. Ongoing marketing expenditures will also be a notable cost driver for Oleson Cleaners, especially in the first few years as the business gets established in the market.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

Average number of daily customers:

  • Year 5: 100

Financial Projections

Income statement, balance sheet, cash flow statement, dry cleaning business plan faqs, what is a dry cleaning business plan.

A dry cleaning business plan is a plan to start and/or grow your dry cleaning business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Dry Cleaning business plan using our Dry Cleaning Business Plan Template here .

What are the Main Types of Dry Cleaning Businesses?

There are a number of different kinds of dry cleaning businesses , some examples include: Multi-service Dry Cleaning, Express Dry Cleaning, and Hotel Dry Cleaning.

How Do You Get Funding for Your Dry Cleaning Business Plan?

Dry Cleaning businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Dry Cleaning Business?

Starting a dry cleaning business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Dry Cleaning Business Plan - The first step in starting a business is to create a detailed dry cleaning business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your dry cleaning business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your dry cleaning business is in compliance with local laws.

3. Register Your Dry Cleaning Business - Once you have chosen a legal structure, the next step is to register your dry cleaning business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your dry cleaning business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Dry Cleaning Equipment & Supplies - In order to start your dry cleaning business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your dry cleaning business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

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Dry Cleaning Home Delivery Business Plan

Start your own dry cleaning home delivery business plan

Columbia Cleaners

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Columbia Cleaners is a start-up enterprise to be established in Hillsboro, Oregon as a limited liability company owned by J.C. Copperbeech. The company will provide dry cleaning, laundry, and garment alterations, offered with regular home pick-up and delivery services. The company will have a production facility, but will not need a retail shop because of our pick-up and delivery service. However, we will need delivery vans, and customer service trained drivers.

Customers can choose payment either at the time of each delivery, or by monthly credit card billing. At the end of each month we will send statements to each contract customer, itemizing service fees and the charge for the service to their credit cards for payment.

The business provides a new door-to-door dry cleaning, laundry, and alteration service in Hillsboro, OR and surrounding neighborhoods that will surely attract customer attention. Working customers may find this service is convenient for them and want to try it. If they are satisfied with the service quality they will likely become repeat customers. When the patronage happens continuously, they become loyal customers of the service. These customers will recommend Columbia Cleaners to their friends and coworkers. As more and more customers use this service, Columbia Cleaners’ image is enhanced and we will gain more and more market share.

Sales forecast gradually increase over the first year and comprise total sales of $324,700. We project modest net profits the first year. Our second and third year net profits are expected to grow substantially.

Dry cleaning home delivery business plan, executive summary chart image

1.1 Objectives

In providing laundry and garment alteration services for customers in the Hillsboro area, Columbia Cleaners aims to:

  • Establish sustainable business by the end of the first year
  • Have first year total sales in excess of $324,000
  • Producing net profits

1.2 Mission

We will offer dry cleaning, laundry, and clothing alteration services with free home pickup and delivery. Our high quality and convenience will save time for working customers.

1.3 Keys to Success

  • The business is entering the first year of operation, therefore, a comprehensive marketing strategy will be the key to success of the business.
  • It is important to remember that the target customers have money and want to be provided high quality service, therefore, they will only use this service if they are entirely satisfied.
  • Furthermore, the hours of operation must be convenient and service completion must be timely in order that customers are not harried after a long day working.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Columbia Cleaners is a start-up enterprise to be established as a limited liability company in Hillsboro, OR.  The company will provide dry cleaning, laundry, and garment alterations, offered with regular home pick-up and delivery services. The company will have a production facility, but will not need a retail store front because of our pick-up and delivery service. However, we will need delivery vans and customer service trained drivers. Initially, the production facility will be rented. Cleaning equipment will be leased with accompanying maintenance contracts.

Start-up financing will be through owner investment and bank loans, with a line of credit established for operations eventualities.

2.1 Company Ownership

The proposed legal form of business is a limited liability company, wholly owned by its founder J.C. Copperbeech. This is a small business and need not publicly disclose its finances. The registration procedures are quite simple and the business can start operations as soon as possible. The owner/founder will be the director and will initially handle the bookkeeping responsibilities.

2.2 Start-up Summary

Startup expenses, funded through a combination of owner’s equity capital and a commercial loan, are summarized in the table below.

Leasing equipment: Buying new machines costs approximately $50,000 as opposed to leasing which costs $20,000 per year including maintenance. Evaluating the leasing solution shows NPV higher than that of buying machines. Moreover, the business is new and has less experience in maintenance and repair of machine breakdown, therefore the optimal solution is leasing machines. The following machines will be leased:

  • 1 Washer – 38 lb capacity, high spin, microprocessor control, electric heat
  • 1 Tumble dryer – 40 lb capacity, stainless steel drum and gas heated
  • 1 Dry cleaning machine – 25 lb
  • 1 Roller Iron 40 x 12 inch, variable speed and vacuum exhauster
  • 1 Ironing table with steaming vacuum board, integral 2 gallon boiler, iron, water pump and light

Capital plan: The owner will invest $40,000 in the business. Additional capital for the business in the amount of $20,000 will be borrowed from a bank.

  • Buying a van, and office/facilities equipment (computer, printer, fax, telephone instrument, tables, chairs, shelving, work tables, racks, etc.) and initial leasing of laundry machines: approx. $27,000
  • Buying another van in April: $10,000 (see the Cash Flow Table later in the document)

Loan: Lending plan has to be completed and submitted to the bank 6 months before starting the business. Loan will be needed two months in advance. Annual interest of 10% has to be paid on the long-term loans secured with fixed assets.

Dry cleaning home delivery business plan, company summary chart image

Columbia Cleaners is going to provide the following services for customers with free home pick-up and delivery in the Hillsboro area:

  • Alteration service

Operations plan

There are two ways for customers to take part in the service. Customers can sign contracts with Columbia Cleaners to get regularly scheduled service, or, if it is more convenient, they can order over the telephone or via e-mail.

Customers can choose payment either at the time of each delivery, or by monthly credit card billing. We will send statements to each contract customer, itemizing service fees and the charge for the service to their credit cards for payment, at the end of each month.

No retail shop will be rented in order to reduce the operation cost. An operations facility for installing machines and equipment, washing and cleaning activities, and storing not yet cleaned and cleaned garments and items is needed. The operations facility will require about 2,000 square feet divided into four main sections as following:

  • Garment alteration workroom

The whole operation process will be controlled and monitored by a laundry expert employee, and generally managed by the business owner.

Market Analysis Summary how to do a market analysis for your business plan.">

It is necessary to establish the reasons for choosing the dry cleaning, laundry, and alteration service before doing the market research and marketing plan. “Laundries and Dry Cleaners rated in the top ten enterprises with the lowest failure rate.” http://www.mindspring.com/~jimgirone/cleanpage/desire.html

  • Payment for the service is by cash, check, or credit card.
  • No capital stagnancy, receive payment every month, easy to get instant profit.
  • Capital requirement for purchasing commercial laundry equipment is minimal, therefore the risk of this business is low.
  • This service only requires a few staff.
  • Supplies a needed service for customers’ frequent demand (laundry – clean clothes).
  • Customers use this service as there are few or no alternatives (dry cleaning, carpet cleaning…).
  • The demand for using service is increasing due to changing life styles, incomes, and the increase in clothing expenditure.

4.1 Market Segmentation

Pro Tip:

We will be targeting both full-time and part-time employed customers who would value the convenience of our service. Demographic research shows that the total population of the Hillsboro-Beaverton area is about 350,000, of which about 250,000 are in the labor force. Of the later, approx. 220,000 are employed full time, 20,000 are employed part time and the rest are unemployed, as summarized in the table below.

Dry cleaning home delivery business plan, market analysis summary chart image

4.2 Target Market Segment Strategy

The table in the previous topic shows estimated percentages of Hillsboro-Beaverton residents working full time in 2004, which is a lot higher than that of those working part-time. Employment, income, and GDP trends show an increase over the past several years as well. This results in increasing standard of living, which in turn leaves people having less time to do their housework (including laundry) in Hillsboro. They are often tired after the whole day of working and tend to spend money to hire someone else to do the housework for them. Moreover, the demand on clothes of these working people (particularly professionals) usually increases proportionately with their income. Buying more clothes, especially expensive clothes, makes them pay more attention to the care and cleaning of those garments. With careful research, this business focuses on working and professional class customers as a target segment market.

4.2.1 Market Needs

Research shows that one of the key factors in choosing a personal service, such as laundry and dry cleaning, is not price but the convenience of the service. As stated above, with the growth of discretionary income people tend to choose services based on how much time and effort the service will save them. Although there are several conventional drop-off dry cleaning/laundry service providers in the area, Columbia Cleaners will primarily market its convenient pickup/delivery service to those busy individuals who are willing to appreciate such service, as it saves them time for other endeavors.

4.3 Service Business Analysis

The personal service industry is very fragmented overall. The Metropolitan Portland area is no exception to that, with numerous small providers servicing the community’s needs for laundry and dry cleaning. In the city of Hillsboro there are about half-dozen dry cleaners, some of which also provide laundry and garment alteration services. However, almost none of them, except Convenient Door-to-Door Dry Cleaning, provide the convenience of the door-to-door service.

4.3.1 Competition and Buying Patterns

Competition in the dry cleaning/laundry business in the Hillsboro area is not fierce. Research shows that there are seven dry cleaners in the city of Hillsboro, almost all of them offering the traditional drop-off service. The only competitor offering the convenience of the door-to-door service is Convenient Door-to-Door Dry Cleaning that provides dry cleaning and shoe repair services. We believe that initially this will be our major local competitor. We also believe that we will be able to win customers from our regular, drop-off competitors by enhancing the clients’ peace of mind though a new level of convenience and saving their time.

Strategy and Implementation Summary

The following areas will be monitored to evaluate the business performance:

  • Monthly and annual sales
  • Monthly and annual profit
  • Repeat business
  • Customer satisfaction

The business success will depend on quality and convenience of the service, customer opinions, and competitor response.

The business provides a new door-to-door dry cleaning, laundry, and alteration service in Hillsboro that will surely attract customer attention. Working customers may find this service is convenient for them and want to try it. If they are satisfied with the service quality they will likely become repeat customers. When the patronage happens continuously, they become loyal customers of the service. These customers will recommend Columbia Cleaners to their friends and coworkers. As more and more customers use this service, Columbia Cleaners’ image is enhanced and we will gain more and more market share.

If we attain monthly and annual sales at least as forecasted, total costs and expenses, including any unanticipated charges, will not exceed our estimates and therefore the monthly and annual profit will be satisfactorily achieved.

Difficulties and Risks

Columbia Cleaners is a start-up and as such has less experience and begins with no market share at all. Assertive, effective initial marketing efforts will be necessary to gain a customer base. If existing competitors see us as a major threat and they resort to overtly aggressive and debilitating actions it will be very difficult for us to become an established player in the marketplace. Risks caused by competitors are possible, therefore the business has to monitor and evaluate its performance frequently, and collect customer evaluations and suggestions in order to continually improve.

Worst Case Risks

The worst case scenario would be that the business cannot support itself on an ongoing basis. The costs of doing business may be under-estimated, or sales and profit may be less than expected, making the business difficult in finance. Moreover, in case of social economic recession, political changes, or inflation, the business may perform even worse than has been forecasted.

5.1 Competitive Edge

As the U.S. economy recovers and quality of life is increases, people tend to spend more time and money in leisure activities rather than doing their house work. They prefer that someone else does the cleaning work for them. Hillsboro has a population of 70,000 served by seven dry cleaning and laundry shops. These existing shops wait for customers to bring their garments in and pick them up later. Customers have to drive cars to town, find parking places, carry their clothes or large items, such as curtains, blankets, etc. to the shop, and wait to be served. Then they must repeat this boring process when they come to collect their items. Moreover, these shops are only open from 9am – 6pm, and close on Sunday, which are almost the same working hours of offices; most inconvenient for customers especially those with full-time jobs.

By understanding and addressing this need, our new dry cleaning, laundry and alteration service will be established, providing door to door service free of delivery charge. We make our customers’ lives simpler by saving them time, and eliminating waiting in queues, parking problems, forgetting to collect clothes, missing meals, and going home late.

The following is the SWOT analysis for Columbia Cleaners:

  • We offer a relatively new, door-to-door service for dry cleaning, and laundry, providing another choice for customers.
  • We provide quick and convenient service in order to save customer’s time.

Weaknesses:

  • Competition from already established competitors in Hillsboro.
  • Starting at no market share at all.
  • Less experience than competitors.

Opportunities:

  • Expenditures on clothing is increasing, including expensive clothes; therefore the demand for taking care of clothes also increases.
  • There are more and more women – who traditionally have done the laundry and cleaning work in the family – going to work outside the home. The target market of this business is working class and professional class customers, both men and women.
  • Average income of Hillsboro citizens is increasing.
  • People tend to spend more time on leisure activities rather than doing the house work.
  • Participation within a steadily growing service. The forecast of the dry cleaning and laundry service goes steadily up through 2010.
  • There is a high likelihood of repeat business.
  • The ability to decrease the fixed costs as the sales volume increases.
  • If the business is successful, there will be new competitors who supply the same kind of service.
  • New technology changes may bring out new family washing machines for dry cleaning.

5.2 Marketing Strategy

Place: Dealing directly with customers, conveniently in the customers’ houses in Hillsboro. We are choosing to not rent a shop in the town center, thereby reducing costs. Columbia Cleaners will receive clothes from and return them to customers’ houses. Requests for urgent situation pickups and deliveries will be accommodated, and a nominal fee charged.

Product: Free home pickup and delivery service, coming to customers’ houses between 6 pm – 9 pm three times per week. We provide convenience and high quality dry cleaning, laundry, and alteration services.

Price: Normally, new businesses set their initial prices lower than their competitors. In our situation however,  the business has higher costs for our delivery service and promotions to increase customers’ awareness and establish our brand name. We will set our prices to match those of our competitors. The pricing scheme is based on a per service price. Moreover, the business targets working and professional customers who often pay less attention to price than the quality and convenience of service. Kelvin Clancy (in Kotler, 2003) shows that only between 15 and 35 percent of buyers are price sensitive. People with higher incomes are willing to pay more for features, customer service, quality, and convenience.

  • Advertise our new service in the local press, the Internet, public areas such as buses and train stations, shopping centers and supermarkets etc., and drop advertising material into families’ mailboxes.
  • Offer 10% discount as an incentive for customers who sign one-year contracts.
  • Issue coupons with lower price for loyal customers.

5.3 Sales Strategy

We will start off my matching our main competitor’s prices and we will be closely monitoring our financials to make sure that we develop a sustainable business without heavily discounting our services to win customers. All sales inquiries will be initially handled by the business owner. We will also train all our employees, especially those facing the customers, in customer service to make sure that our customers are fully satisfied, as such customers will not only stay longer with us but will also refer other customers to us. We will offer limited discounts to our customers with large recurring orders and also provide incentives for new customer referrals.

5.3.1 Sales Forecast

The sales forecast gradually increases over the year 2005 and comprises total sales of $324,700. However, in the last three months, October, November and December the sales remain almost level due to possible seasonal factors. Yearly forecasts are summarized in the table below.

Dry cleaning home delivery business plan, strategy and implementation summary chart image

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The owner of the business will be director and accountant, working full time. A laundry expert will be employed and will be in charge of the operation and the quality of garment cleaning. Workers will report the laundry expert who reports to the owner.

6.1 Personnel Plan

Through consultations with a dry cleaning consultant, the term of reference of a laundry expert and workers are prepared. Employment information will be advertised in local newspapers. The laundry expert and two part-time workers who have experience in laundry work will be employed.

The laundry expert will be in charge of the operation and the quality of garment cleaning. Workers will be responsible for cleaning and classifying work and have duty to report daily work to the laundry expert. The expert has to report their working results and problems to the director.

Two part-time drivers for picking up and delivering clothes work from 5:30 pm – 9:30 pm three times a week.

The staff should be able to carry out working conditions and requirements:

  • Understand and apply dry cleaning and washing processes
  • Meet set standards by following instructions 
  • Work in hot, humid surroundings
  • Perform the same work continuously
  • Overtime may be required during peak seasons such as spring and autumn.

Number of staff and salary in the period of January to March 2005:

From April 2005, the business has more customers and becomes busier, thus new staff (a worker and a driver) are employed. The business prefers to hire extra part-time workers and drivers sharing the total needed working hours. In case one of them becomes sick or busy, other staff can replace him therefore the working process will not be effected.

An average 5% increase in all salaries is planned for the following two years of operations.

Financial Plan investor-ready personnel plan .">

The following topics, the cash flow statement, profit and loss account, and balance sheet have been built using forecasted information which is as accurate and realistic as possible. Sales increase gradually over the 12 months showing the positive trend of sales. Columbia Cleaners is steadily gaining market share. Gross profit and net profit rise proportionately to sales revenue. The financial statements show that the business runs quite well and achieves expected results.

7.1 Start-up Funding

Startup expenses will be funded through a combination of owner’s equity capital and a commercial loan, as summarized in the table below.

The owner will invest $40,000 in the business. Additional capital for the business in the amount of $20,000 will be borrowed from a bank.

The lending plan has to be completed and submitted to the bank 6 months before starting the business. The loan will be needed two months in advance. Annual interest of 10% has to be paid on the long-term loans secured with fixed assets.

7.2 Break-even Analysis

The monthly break-even point of the business is calculated below. As revenue becomes higher than break-even point, the business starts to harvest the profit. As forecasted, the total demand on dry cleaning and laundry service continues to rise in the following years; therefore, if the service satisfies its customers, increases new customers and retains customer loyalty, the profit will continue to go up.

Dry cleaning home delivery business plan, financial plan chart image

7.3 Projected Cash Flow

Dry cleaning home delivery business plan, financial plan chart image

7.4 Projected Profit and Loss

The table below outlines our projected profit and loss statements for the first three years of operation. In general, the business might meet some difficulties in the beginning months but after that the business grows as expected and produces a small profit at the end of the year. It is not necessary for the business to gain high profit in the first year. Nevertheless, we are expecting to make a small profit the first year. Our second and third year net profits are expected to grow quite a bit, as shown below.

Dry cleaning home delivery business plan, financial plan chart image

7.5 Projected Balance Sheet

The table below shows the balance sheet annual figures for the first three years of operation. First year monthly figures are presented in the appendix.

7.6 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios for Commercial Drycleaning and Laundry Collection and Distribution Establishments, based on the Standard Industrial Classification code 7216.9903, are shown for comparison.

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