Laundromat Business Plan free essay sample

Laura’s Laundromat The Eco-Friendly Laundromat Business Plan March 1, 2009 403 S. Czech Hall Road Yukon, OK 73099 405-577-5651 [emailprotected] com www. LaurasLaundromat. com 1 INDEX 1. 0 1. 1 1. 2 1. 3 2. 0 2. 1 2. 2 2. 3 3. 0 3. 1 4. 0 5. 0 6. 0 7. 0 8. 0 9. 0 Executive Summary Objectives Mission Keys to Success Company Summary Company Ownership Startup Summary Location Equipment Permits Local Competition Marketing / Advertisement / Operations Store Layout Demographics Industry Summary Monthly Projected Income Proforma 10. 0 Attachments 11. 0 Additional income source 12. Investor Return 2 1. 0 Executive Summary Laura’s Laundromat is a startup laundromat that will target a customer base of low to middle income renters or owners. Laura’s Laundromat will differ from the conventional â€Å"coin-op† laundry by implementing the newest technologies available in the laundry industry. The most notable of these technologies is the ability to eliminate the coin fro m the â€Å"coin-op† business. Laura’s Laundromat will be implementing the smart card technology that allows customers to purchase a vending card that can be used for all equipment located within the store. Some of the obvious advantages of using the smart card are the elimination of the daily collections of coins from each machine, the ability to change prices throughout the day in various increments and as a marketing tool to bring customers back each week since they will still have a credit value on their card. We will write a custom essay sample on Laundromat Business Plan or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 1. 1 Objectives Laura’s Laundromat objectives for 2009: ? ? ? ? ? Secure financing by the end of April Incorporate to an LLC by Build and install equipment in the store by the end of October 2009. Open for business by November 1, 2009. Achieve profitability by the end of December 2009. Laura’s Laundromat growth objectives for years 2009 and 2010. ? 2009-10 – Stabilize costs while extending customer base to maximize profits. 1. 2 Mission Laura’s Laundromat will be the leader in the self-laundry business by providing a clean, safe and reliable store at a cost less than or equal to its competitors, along with satisfying the customers needs and costs objectives. Laura’s Laundromat will also be environmentally conscious by installing high efficiency washers that use less than 50% of the water and detergent than most conventional washers. Laura’s Laundromat will provide a safe and secure children’s play area so our customers can have a place for their children to play while they take care of their laundry. In addition, we will provide free Wi-Fi 3 services. The most innovative feature of Laura’s Laundromat will be two exercise machines for those who would like to exercise while their laundry is being cleaned. In this, Laura’s Laundromat will be a community friendly establishment that is friendly to the environment, yet technologically innovated in its approach to securing a consistent customer base. . 3 Keys to Success As a start-up company new to the area, and introducing new technologies, we must be focused and work hard to create acceptance for ourselves and our services within the marketplace. The keys to our success are: ? Provide a clean and safe environment. ? Provide competitive pricing. ? Maintain a steady, disciplined pattern of growth. ? To make laundry a social event, not a drud gery. ? Minimize wait times for equipment. ? New features such as Wi-Fi and exercise equipment which allows one to multi-task. ? Provide signage in English and Spanish. . 0 Company Summary Laura’s Laundromat is a family owned and operated company that provides self-laundry services targeting low to middle income renters or home owners. By implementing the smart card system it will eliminate the need for our customers to carry change around with them to do their laundry and create return customers to utilize their smart card. 2. 1 Company Ownership Laura Ridley will be the sole owner of Laura’s Laundromat. Mrs. Ridley is currently a homemaker and an Independent Distributor for Shaklee Corporation. Her experience in sales, marketing, and customer service will be an asset to this business. 4 2. 2 Start-up Summary Startup cost have been estimated and budgeted at $125,000. Investors will be sought to provide the startup cost for land acquisition and building construction. A conventional loan will be used for the remainder of the costs. Mrs. Ridley will be responsible for making the monthly payments each month. (See table 2A). Table 2A Land Furniture Security Cameras Personal Computer 5 TV’s with mounts Exercise Equipment Vending Machine Misc. Expenses Construction Sub totals Equipment Total Estimated Amount $365,000 $10,000 $3,500 $3,500 $5,000 $4,000 $4,500 $5,000 $500,000 $900,500 $242,000 $1,142,500 Budget Amount $365,000 $10,000 $3,500 $3,500 $5,000 $4,000 $4,500 $5,000 $500,000 $900,500 $242,000 $1,142,500 2. 3 Location Laura’s Laundromat’s office will be located at 403 S. Czech Hall Road, Yukon, Oklahoma. The location of the store is essential to acquiring the target customer base of low to middle income renters and home owners since it is located in an area that has a heavy concentration of apartment complexes. Laura’s Laundromat will be located approximately 3. 0 miles from nearest competitor to the north and 6. 0 miles from the nearest competitor to the south. More about competitors and their stores are described later in detail. Utilities will be provided as follows: Oklahoma Gas Electric for all electric, Oklahoma Natural Gas for natural gas, The City of Oklahoma City for water, sewer and garbage, Cox Communications for cable and ATT for phone and internet service. 5 3. 0 Equipment Laura’s Laundromat will install the following equipment: ? 3– 40† flat panel TVs ? – 32† TV for power point advertisement/entertainment ? 1 – 32† TV in the children’s play area ? 1 – Netmaster smart card system ? 1 Snack machine and soda machine ? 1 Laundry soap dispenser ? 1 – Large cork board for customer postings ? 1 DVR system ? 1 PC for power point ads and security recording ? 1- Treadmill Exercise Machine ? 1- Elliptical Mach ine See (distributor’s equipment list) attachment for model numbers and prices for several of the major items noted above. 3. 1 Permits Laura’s Laundromat will acquire a vendor’s license, sign permit, and a letter of acceptable use for the location in question. . 0 Local Competition Epperson Laundry at 361 N. Mustang Road, Mustang, OK is approximately six miles to the south. It is a smaller and older Laundromat. It is approximately 1000 square feet. Equipment consists of 24 top load washers, one 30 lbs, one 40 lbs, and one 50 lbs washing machine, and 17 dryers. Facilities and equipment are dated. There is no children’s play area, television or entertainment of any type. The Laundromat is not well kept and at any given time there are several machines out of order. Services offered are wash dry fold, dry cleaning and alterations. Highland Center is located at the corner of Vandament and Holly Ave in Yukon, Oklahoma and is located approximately three miles to the north. The store is approximately 1000 square feet and consists of (5) 40 lbs washing machines, 26 top loading machines, 8 large capacity dryers and 23 smaller dryers. The facilities and equipment are dated. There is no children’s play area, no vending machines 6 and no TV or entertainment of any type. Personal services offered are wash, dry, and fold. 5. Marketing / Advertising / Operations Laura’s Laundromat will be utilizing various marketing and advertising methods to draw in new customers and to retain them. ? Card System: Instead of using quarter’s through out the store, Laura’s Laundromat will be implementing the Smart Card system that distributes a credit card to the customer that can be used through out the store on all washing machines and dryers. C ard Advantages: ? Less coin transactions – Money is collected less often and can be done in minutes rather than hours. ? Variable pricing – All vending prices can be increased in as little as $. 1 increments instead of the normal $. 25. This will be extremely helpful in off setting variable utility costs by being able to raise or lower prices at any time without having to touch the actual machines. With the older quarter systems, the owner could only go up or down in $. 25 increments. Therefore, either cutting his profits, or by losing customers with higher increases. ? Timely pricing – Since the card system is networked, sales and specials can be preprogrammed. This way you could run afternoon specials and actually set the price in advance, and at a predetermined time. All of the specials will spread the customer base from the peak hours to the off peak hours. To do this on a traditional coin-op system would take hours to change the prices in a store. ? Customer loyalty – When a customer leaves the store, chances are they will still have credit on their card (since we will be charging odd amounts). Customers will be more determined to return next week to use up the remaining credit or add value to their card to finish the current week of laundry. ? Bonus Dollars – If a customer adds value to their card, Laura’s Laundromat can give a bonus credit if they add a specified amount to their card. Example: If the customer adds $20. 00 to their card, Laura’s Laundromat will add a bonus of $2. 00 to the card giving the customer a total of $22. 00. Instant coupons! 7 ? Additional features include: ? Vending: There will be one soda machine and one candy machine. ? Customer bulletin board: Laura’s Laundromat will hang a bulletin board so customers can post advertisements for free. ? Entertainment: One 40† flat panel TV will be placed in the entertainment area. This TV will broadcast various shows. One 40† flat panel TV will be located in the exercise area also broadcasting various shows. Another 40† flat panel TV will be placed above the washing machines. ? Children’s Entertainment: One 32† flat panel TV will be inset in the wall of the children’s play area with protective Plexiglas covering the screen. This TV will be attached to a DVD player in the office to play children’s programming. ? Advertisement: One 32† Flat panel TV will be placed in the entertainment area (no sound) and will be used for Power Point presentations to advertise Laura’s Laundromat’s specials and also for other local business advertisements. We will charge $50. 00 to $100. 00 dollars per month for this advertisement. Local businesses may be asked to place a flyer for Laura’s Laundromat in their establishment in exchange for the Power Point advertisement. ? Local Newspaper – Advertisements will run weekly for the first month. In three separate newspapers: The Mustang News, The Mustang Times, and The Yukon Review. ? Giveaways –Laura’s Laundromat will give away various items each month for the first several months. ? Customer Training – By educating the customer on the efficiency of the new Speed Queen equipment, they will return to Laura’s Laundromat each week knowing that they will be getting the best service available for their money. Placards will be placed in various locations explaining the cost efficiency of using the equipment at Laura’s Laundromat. 8 ? Clean store –Laura’s Laundromat will be maintained at a minimum of twice a day. The bathroom will have fixtures that will operate automatically to keep the bathroom as clean as possible. ? Hours – Laura’s Laundromat will be open from 8:00 am until 9:00 pm Monday thru Saturday and 10:00 am to 7:00 pm on Sunday. The hours may be adjusted to meet demand. ? Safety – To deter vandalism and fraud, Laura’s Laundromat will be equipped with the newest video technologies available. Various cameras will be placed in positions to give the best possible coverage of the entire store. One camera will be dedicated to record anyone who comes in the front door. Laura’s Laundromat will have an attendant on duty at all times. ? Equipment: Laura’s Laundromat will utilize the tank less, or instant hot water system. This system will heat only what water is needed at the time. This eliminates the need to keep large amounts of water heated at all times. It also eliminates the need for a continuous pilot light. This system combined with the water saving front loaders will save money on natural gas as well as water. ? Seating –Laura’s Laundromat will furnish two round tables with chairs in the entertainment area, including additional seating through out the store. There will also be a number of folding tables located near drying areas. 6. 0 Store Layout Laura’s Laundromat was designed to promote safety and efficiency. Please see the attached floor plan. Laura’s Laundromat will use recycled materials during construction when available to make the building as environmentally friendly as possible. . 0 Demographics A demographic study has been completed and is available with this business plan. 9 8. 0 Industry Summary A few points about the laundry business: ? No inventories to maintain. ? Cash only business, no receivables. ? A service that is always needed, even during economic downturns. 9. 0 Monthly Projected Pro forma Please see attached Projected Pro forma. 10. 0 Attachments ? Distributor’s equipment list ? Laura’s Laundromat floor plans ? Monthly Projected Pro forma 11. Additional Income Source The $500,000 construction price includes an additional 4500 square feet of space to be leased as retail space to other vendors. At a price of $9. 00 per square feet, which is comparable with other retail property in the area, this will add an additional $3375. 00 income per month. 12. 0 Investor Return The investor will receive 10% of the net profit until the equipment loan is paid off. At that time the investor will receive 15% of the net profit until the construction loan is paid off, then the investor will receive 20% of the net profit for the remainder of the business partnership. 10