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Laundry Business Plan

Table of Contents

  • Entry and growth strategy
    • Customers
    • Estimated market share
    • Awareness
    • Interest
    • Desire
    • Action
    • Income statement
    • Cash flow Statement
    • Balance Sheet
    • Break Even Analysis

This project is about creating a business plan in which we have to mention the overall plan on the identified opportunities we are developing a business plan on hostel laundry While living in a hostel of our university we identified a need of laundry service in our hostel that’s why we are going to start a laundry service with the name of bright and clean hostel laundry in which we are going to provide a laundry service at cheapest price which is just $ 4.5 of washing of one dress with its iron as well. As we identified the market demand of hostel laundry business is too high as the students of hostel have not enough time to wash out and press there dresses time to time. They have to rigid routine of their studies and due to this it’s difficult for them to manage all these households. Our target market is girls hostels we did a survey at the hostel and filled out questionnaires from different respondent’s majority of the respondents agreed to our initiative our competitive advantage is that here is no such laundry is available which provides such quality and services at cheapest prices to the girls living in hostels. Our team comprise of 5 members this whole business is being supervised by Miss S.A whereas other members are managers as well as supervisors we are offering the following facilities to our customers Washing, Spinning, Ironing, Stitching, Packing and Delivery at cheap price and good quality.


Current status of industry:

If we checkout the scope and demand of laundry business over the globe, it’s a huge business which have a high profit earning business. In the whole world if we check out the industry of laundry service, there is few business are available have such nature. In Europe and other developed countries of world people are having such busy routine of working and their business dealings so they usually depends upon the laundry services provided in their countries or home town, because the trend of working of women is very common there so they need that laundry services in their daily routines. But in many countries such business have no any high demand or need as most of the people are focusing on home washing as there is very low trend of working of women, most of the women are house wives so they focus on home washing more than getting dependent on laundry services. As we are going to target the market of universities so it’s important to check out the business status in universities as well, in universities most of the population have its working routine and majority of people are students and in such busy routine of these studies they need a proper laundry service. From all the students majority are hostel ides and they have no proper availability of washing clothes in there hostels and have no such time availability as well, so after this research we came to know that it’s have a need to start a business for providing the laundry service to the girls hostels that the female students may get their clothes washed, pressed and available to them on time.

Growth Trends and competitors:

Growth potential of such business is too high as there is a huge demand of such service in hostels of boys as well as for girls that’s why it will must considered as an ongoing business with high potential of profit in it. Here are no such direct competitors of our business which can affect the growth of working of the business. But here are some indirect competitors of our business like simple maids or other common laundries.

Energy Requirements:

Energy requirements of the business we needed to start and run the business are as follows:

Laundry Business Plan

Supply chain factors:

In our business integration will be used by adopting a way of vertical integration that we are going to provide a takeoff service of dirty clothes and delivery services of pressed dresses. For this purpose we will use a forward vertical integration by adopting a making technique in it that we will hire our own employee which will perform such services to takeoff and delivery of clothes on the other level of services.

Waste generation or Recycling:

There is no such wastage of any of material or service will occur in our business as our business is as services business and according to this there is no any wastage of resources in it so that we should recycle it.

The Company and The concept:

Business Name and Address:

Bright and Clean Hostel Laundry service

Proprietor Name and Address:


Nature of Business:

Bright and clean company is basically a service provider company and is providing the service of washed clothes with ironing and other services to the hostel girls to avail an affordable laundry service.

Mission of Business:

“The mission of Bright and clean is to provide affordable services of laundry to girls living in university hostel. The main aim is to offer affordable, high-standard and good quality of service to the customers. This will be achieved with the help of courteous behavior, friendly customer service and unique ambience”

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Vision of Business

“The company’s vision is to provide affordable services of laundry to girls living in university hostel”

Company Logo:

Laundry Business Plan

Services going to provide:

As a company logo, bright and clean will use the company name engraved in white on the blue background with blue borders.

Bright and clean will offer an affordable, yet high-standard laundry service to its customers We will provide our customers with the following facilities washing of clothes with best detergent and fabric conditioner, iron with starch, proper packing and delivery.

We will have our own separate staff for the picking of clothes from the rooms each room will be assigned with a unique code that will provide the person the ease of sorting the clothes in order. Furthermore we will conduct a customer survey in order to ensure that whether or not our clients are satisfied with our services or not.


We will provide our customers with the following services

Laundry Business Plan


We will have our own  delivery  staff  who will be responsible for the picking  of dirty clothes as well as delivery of clean clothes each room will be assigned with codes which will make the person easy to identify this will avoid misplacement as well as ensure proper safety of clothes.

Uniqueness of services:

Uniqueness of our business is defined by the following points:

Laundry Business Plan

Entry and growth strategy

Before entering in the market we will develop an awareness plan in which we will promote our business before opening. For this purpose we will develop our promotional plan in which we will specify that how we will approach to our customers.



Our customers are basically females who don’t have the time to manage their laundry activities due to their busy schedule of studies

Estimated market share:

Our estimated market shares are round about 10 percent for our laundry business which will be achieved with the help of our target community which we have selected for our business.

Current Marketing Situation Analysis:

For market size and trends we will focus on its PESTEL analysis:

  • Political
  • Economic
  • Social
  • Technological
  • Environmental
  • Legal

As the political conditions of our country is changing day by day, so it’s an external factor which may affect the performance of our business in a way of changing in government policies, taxation policies and other laws. Etc. So we will maintain our business according to those policies.


Here are some of the economic factors which influence on the performance and working of the business like any of the crises raised in the country or any kind of other issues.


In a society our business has to settle and survive as a long term business so we have to focus on the social issues which can impact on the business performance and success. Here are some of the social issues which can effect, like the social security issues.


Here is a great improvement and advancement in the technological sector in the world so it’s also as important external factor which influences on the performance of the business and to keep that performance level of business maintained we have to use new advance technology in the business.


Some of the environmental issues which may impact on the performance of the business, like the location of business and other environmental hazards So for controlling such issues we may develop the strategies of the business to keep the quality service by adopting environment friendly strategies.


Some of the legal issues may also affect the working of business so we should keep our company incorporated by the laws and to work according to the legal conditions and formalities.


Marketing Strategy:

Following are some strategies adopted by our business to deals with its marketing department:

  • The marketing strategy is based on positioning and status of the business
  • We will promote our business at mass level in order to gain more sponsors
  • Our business will be fulfilling the individual needs collectively. Furthermore we will use pull strategy and will communicate our message to the people with the help of our promotions.
Pricing strategy:

We adopted a pricing strategy to provide the service to our customers and potential customers at cheapest price, which is just Rs. 45 having multiple services in it. As here is no a direct competitor of our business that’s why our target market will must avail our services. Some of the indirect competitors may not provide such facilities at such cheapest prices that’s why our business have a great potential to be more profitable and successful by providing such services of washing, drying, starch, iron, takeoff and delivery as well. We selected such price level by keeping all the costs and expenses of the business under consideration.

Sales Tactics:

We will perform the activity of delivering the completed services to its destination with the help of using forward vertical integration and for this purpose we will hire an employee which will perform all the activities of takeoff and delivery of clothes to the customers. We will hire that employee with setting a specific salary level given to him on the basis of per month and other than a vehicle will provided to him and an expense of fuel for vehicle used will also provide to him to meet the expectations of the business.

Service and Warranty policies:

Following are some of the warranties given to the customers:

Service and Warranty policies

By focusing on all the aspects of warranty, we must get our customers satisfied with our services and this strategy will help the business to get more potential customers and will get expand because these all things are matters a lot for the owners of clothes to get the best quality service.

Handling of Problems:

For handling the problems that may arise in the business we may use the following methods to overcome these issues:

  • We will get a time to time customer feedback which will guide us about the impact of our services on customers.
  • We will adopt a coding method in order to ensure the safety of clothes, we will assign a specific code to each hostel, a separate code to each room number of the hostel and a separate code will beassigned to the customers individually.
  • There will be a proper quality check system which will use by business to have complete check and balance on the services delivered by the business, for this purpose an inspection visit will be designed.
  • There will be a complete schedule designed for the takeoff and delivery of clothes from customers to service area and then from service area to the end user.

Advertising and Promotion:

We will promote our service using the following criteria

Advertising and Promotion

Marketing Budget:

The accomplishment of our objectives to create awareness about our service and Our promotional efforts will not only help in attracting the existing market but also will create interest in new groups of people. The promotional tactics have been designed keeping in view the trends of the target market and the modes which are best suited to reach them. For delivering the message about our business to the general public we will use an AIDA model:

  • Awareness
  • Interest
  • Desire
  • Action

Bright and clean hostel laundry is the innovative service provider business introduced for hostel ides. For which purpose we will start an awareness campaign to make them aware about the business services.


We will provide maximum services relating laundry at cheapest prices that will develop an interest of hostel ides to avail such facilities from our business.


Than a desire of getting such facility and get their clothes washed by a laundry in good quality will de arise in our potential customers.


After the desire they will develop an ultimate action of availing such services from our business.

S.W.O.T Analysis:

  • Cheapest price
  • On time laundry service
  • Surety of security of clothes
  • Availability of iron along with washing
  • Tracking and delivery service
  • No extra charges
  • Proper packing and conditioning of clothes
  • Customer satisfaction
  • Service quality
  • Seasonal bounds
  • Delay in delivery
  • Mishandlings
  • Growth of business
  • Expand of business
  • Security threats
  • competitors


Development status and tasks:

Our service is a complete service regarding the laundry business. We are providing a complete service including different contents in it like washing, iron, starch, drying and delivery. Etc. So there is no need of more additions, because it’s have no remaining in it to make it marketable.

Difficulties and risks:

Following can be the difficulties and risk factors of our business:

  • Competitors
  • Seasonal variations
  • Weather climate
  • Electricity load shedding


The business has designed the pay slaps for the employees of the business which are as follows:

For the starting or incorporation of business of the fees will be paid to get the company incorporated and started. The budget of all those consulting fees is as following:

Proprietary issues:

We will develop a trademark of our company and will acquire copyrights of our business as only our entity; furthermore the name of our business will be registered under companies’ ordinance 1984.


Operating cycle:

Our working schedule will be based on one week, that’s why our lead time of delivery will be one week. On weekend we will take dirty clothes then on next weekend we will deliver it in the form of washed and pressed cloths. This process of working will be ongoing on each weekend.

Geographical location:

Location of the business is the most important factor influencing its success or failure. It is a long-term decision which one should take into consideration not only the present requirements of the organization but also its future expansion plans. The choice of location depends on several important factors. It is influenced by the kind of services being provided. The location of the business should meet the environmental guidelines and other regulations set by the Government. Our business will be located near universities the purpose of selecting this location is that we are providing the laundry facility to girl’s hostel only. Females do not travel so much outside and due to insecurity they manage their activities personally our convenient business location will be helpful for them for providing them this service furthermore we will hire a female staff in order to cover the insecurity issues of hostel for the purpose of selecting the location we used the following techniques.

  • Survey
  • Cost volume analysis

Facilities and improvements:

After the selection of location we have to determine what and how the resources will be acquired all the equipment will be purchased on cash basis the building acquired for the purpose of business will be purchased on rent and the rent will be paid on monthly basis.

Strategy and Plans:

Strategy and plans of our service will include all the following steps

 Laundry Business Plan

Ordering: Firstly we will receive the orders of our potential customers for washing of their cloths.

Picking: Than we will take the dirty cloths of our customer on the basis of their orders

Sorting: Assign them separate codes on the basis of their hostel, room number and an individual.

Washing: All the clothes will be washed out by using a good washing powder and machinery.

Conditioning: Fabric condition will be used to make the service quality better.

Starch: Than we will apply starch on the cloths by focusing on the nature or demand of customer

Drying: Than the clothes will be dry out with the help of modern technology

Ironing: Than the cloths will iron with the help of gas iron

Packing: All the washed and ironed clothes will be packed in the special envelops.

Delivery: Delivery of service will be made on the basis of weekly schedule.

Payment: Payment of the service will be received after delivering cloths.



Following are the important keys and responsibilities of the supervisor of the business:

  • He will responsible for all the activities got perform in the business.
  • He is responsible for all the quality inspection and assurance.
  • He would deals with all the existing customers and potentials.
  • He must check out the scheduling and its follow up.
  • He is responsible for the lead time management and checking.
  • He must do all the marketing campaigns.
  • He is responsible to conduct a meeting with owner of the business and inform them all of the current situations of the business.
  • He must take all the decisions in the business with the mutual consult of business owners.
  • He is responsible for checking of all the reports and statements maintained by the accountant.
  • He is also responsible to resolve all the conflicts and disputes arise in the business.

Organizational Chart:

Organizational structure of the business is simply a hierarchy of the business defining the positions of employees in the business. It helps us by telling the reporting system of the business, which is liable to report for its work to whom.

Organizational structures can be of different types or forms. Every business develops its organizational hierarchy according to its business nature and size. So this hostel laundry service business will develop its business structure by following the type of structure “Functional Structure”.

Business will make its hierarchy on the basis of activities of the business that how each department will work and who will report to whom in the business by following the activities. As the business has activities to perform in it so its structure will design on that basis following its contents.

 Laundry Business Plan

Key Management Personnel:


Following are the contents of a supervisor of business:

  • He should be a skillful having a 3 to 4 years management experience
  • He must have a degree of master in business administration
  • He must fulfill its all responsibilities

Following are some contents of accountant:

  • He must be a Masters with specialization in accounts.
  • Having knowledge of MS office, Peachtree and other accounting software’s
  • He must have an experience of 2 year.
Employee 1:

Following are the contents of employee of a company:

  • He must have a matriculation degree
  • Must have knowledge about machinery and technology
  • He will responsible for the washing of clothes, starch, drying. etc.
Employee 2:

Following are the contents of employee of a company:

  • He must be matriculated
  • Must have knowledge about ironing and technology
  • He will responsible for ironing of the clothes
Employee 3:

Following are the contents of employee of a company:

  • He must be matriculated
  • Have to be multi-talented that perform all small tasks or work in place of others in their absence.
Delivery Boy:

Following are the contents of employee of a company:

  • He must be matriculated
  • Have a responsibility of taking and delivering cloths to the customers.
  • Must know about traffic rules

Recruitment and Selection:

Recruitment and selection of employees of the business will do by the HR department. The process of recruitment and selection will varies according to the job or position vacant in business. Firstly the business recruits the employees by using e-commerce technique and using word of mouth technique, so that resumes of qualified candidates will collect. Than HR department will scan out the resumes and select the persons to interview and then by conducting interviews selection of employees of the business will completed.

Sometimes business may use internal sources of hiring employees of the business, with the help of existing employees.

Selection Procedure:

 Laundry Business Plan

Training and Development:

Responsibility of training and development of the existing employees as well as of new recruits is on the management of business. Management has to design the training schedules and make the employees as well as organization’s development. For training and development of labor management will focus on these concerns:

  • Assessment
  • Design
  • Implementation
  • Evaluation

Department must have check and balance on the working and performance of its employees so that it will comes to know that which employees need training.


Than the department will design a training that which type of training will needed is that will an “on the job training” or “off the job training”. Its whole schedule will be designed by the management in HR department.


Then it will be decided that how that design will implement in the business, this will on working days of the business or in offs of its employees.


The management of the department will evaluate the output of this training on its employees working and performance. Business must check the return of such investment on employees in business.

Performance Management:

Here are many common methods to check out the performance of employees in a business, like combination method or 360 degree method but the management of HR department of such hostel laundry is decided to check and measure the performance of its employees by using a method of appraisal system. The performance of employees will be measured on the basis of their effectiveness and efficiency in work. Their outputs will be their way of appraisals.

Employment and Bonus Plans:

Employees of the business will must be get benefits and bonuses on the basis of their performances which are measured with the help of appraisals. Who perform better will get better reward.


          Following can be the critical risk factors of our business:

  • Competitors
  • Seasonal variations
  • Weather climate
  • Electricity load shedding

Existence of the competitors in the market and to compete with them in terms of effective price and quality can be a biggest risk for us.

Seasonal variations:

Changing of condition of seasons matters a lot like sudden variation in climate

Weather climate:

There is a risk of changing of weather conditions like chance of rain, dust and humidity but we will manage our activities on time

Electricity load shedding:

Electricity load shedding is the biggest issue that we will face in our business since our most important requirement is electricity as most our equipment’s  need electricity to function electricity fluxions and load shedding can cause a great harm to our industry resulting in delay in delivery of orders as well as malfunctioning of machinery.


Laundry Business Plan

Cash flow Statement

For the year ended 31 May, 2014

Balance Sheet

For the year ended 31 May, 2014 

Break Even Analysis

For the Year Ended May 31st, 2014

Total cost:

= total fixed cost + total variable cost

= 762920 + 558000

= 1320920

Selling price per unit:Rs.

=   sales / total units

= 1296000/28800

= 45

Variable cost per Unit: Rs.

= variable cost / total units

=558000 / 28800


Break even quantity:

= Fixed Cost / (Selling Price per Unit – Variable Cost per Unit)

= 762920 / (45 – 19.375)

= 762920 / 25.62

= 5277 Units (Approximately)

Break even Sales:

= Total produced unit * per unit sale

= 28800 * 45

= 1296000 (Approximately)












For a successful business it is necessary that one should have proper knowledge and skills of managing the entire business the owners should properly hire the supervisors by following the specific selection criteria and should themselves take personal interest in the activities as well they should stay updated with the business activities furthermore the  supervisor should adapt suitable measures for the eliminations of risk that the business can face he should focus on core problem and should take suitable actions to minimize them


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Murad February 10, 2020 - 1:43 am

Good business plan

Emmanuel Teega February 16, 2020 - 6:03 pm

the business plan is beautiful,


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