A laundry business can be rewarding. But starting up this business can be quite confusing for the relative newbie. Here’s a simple guide to the options out there.

Nowadays, you have 3 main options in putting up a laundry business:

1. Starting Your Own Laundry Business from Scratch
2. Getting a Laundry Consultant Set-Up Service
3. Owning  a Franchise

Let’s try to see what are the advantages and disadvantages of the three options. Since I am a franchisor of Suds Laundry, you might be thinking this is an endorsement of the Suds franchise. Nope. Each of the three options has their own advantages. This article aims to guide you to what works best for you. Let’s start.

Option 1: Start Your Own Laundry Business from Scratch

What it Means – It means, you do it all on your own. No mentors, no consultants. Maybe a 1-3 day laundry seminar and some books.

Suited for – Individuals with a strong entrepreneurial spirit.  If you are the entrepreneur type who always has original ideas on how to do things, this might work for you. You need a strong resolve to get through the toughest years of business infancy. Once you get through the first 5 years, you could say you’ve made it to stable ground.

What to Expect if You Start on Your Own – 7 years ago, this was the path we took. Expect to have A LOT of problems the first 2 to 3 years. If you are new to the laundry business, you will realize that the trainings you took become useless after the first month. Your problems will include marketing, financial, personnel and most of all operations. Tough it out and solve one problem at a time. Expect customer complaints (since you are a service business) and learn how to handle it without taking it personally. Since you probably learned the techniques of washing and dry cleaning from a 1-3 day seminar, expect a lot of experimentation in your operations process since 3 days really just is not enough to learn the tricks of the trade.

I remember the first time we received a barong. I was apprehensive so I tried practicing on my barong. It took me 3 hours to figure out how to iron a barong properly. Needless to say, now I am a barong ironing ‘guru’.

Expect many challenges. But if you have the resolve and the proper frame of mind, you will find that underneath all that, this business is fun.

Advantages

• More control over your business
• You own your own brand.

Disadvantages

• Statistics is against you. 90% of people who follow this route end up closing shop within the 1st 5 years (Ouch).
• You are in charge of your own brand building.

Tips for People Who Choose this Option – Be a good learner. Buy books about marketing, personal finance and human relations. Remember that you need to be a leader and a manager at the same time. Remember: Don’t bring your problems home.

Option 2: Getting a Laundry Consultant Set-Up Service

What it Means – This means, you get the service of laundry shop set-up consultants. They set-up the shop for you, maybe provide you with the basic needs and teach you the basics of operating a laundry business.

Suited For – This is suited for individuals with ideas on how to run a business but do not know the specifics of running a laundry shop biz. This is like a halfway options between starting out on your own and owning a good franchise.

What to Expect – Expect more convenience in the first phase of start-up. Companies who teach you how to set-up your own laundry provide you with the basic materials, machines and basic know-how of running a laundry business. They also act as mentors who provide knowledge when you are starting out. This means, you have a slight edge in terms of support over one who started out on his own, at least in the initial part.

Over time, this type of business becomes more like option 1. As the services of the start-up mentors become inadequate, you end up on your own. Be careful of start-up mentors who only look to push products to you. Some of these may be really good companies who make good products and also know how to operate a laundry shop. But some I have attended clearly just wanted to sell products instead of teaching you how to operate a business. Doing your due diligence will be a great help to you.

Advantages

• More convenience in the initial phase
• Some mentoring involved

Disadvantages

• The statistics (90% fail rate) is still against you.
• No brand building.
• No continuing support.
• Some mentors only look to push products.

Tips for People Who Choose this Option – Compare, compare, compare. Do your research. Ask those who have taken the same route. How long does the support last? There are good companies out there. Your task is to find them. Be prepared to run the business on your own after 3-6 months so learn about finance, marketing and personnel.

Option 3: Owning a Franchise

What it Means – Franchising means you are buying a system. Or systems to be exact. A good laundry franchise is like a car, just plug the key in and it runs (that’s why franchises are sometimes called turn-key businesses).

Suited For – Franchising could be good for everyone. From business rookies  to the seasoned veteran who wants to expand. But I have to say it’s an added comfort to people who are first-timers in running a business. Also suited for those who might need a little confidence booster in starting and running a business.

What to Expect – Expect the franchisor to lead the way in the initial part. There will usually be an intensive training for you and your staff. It’s kind of like going back to school but only for a short while. You will learn the franchisor’s system, the way they do there business. It’s important to note that you should choose a franchisor with a proven business model because you will be buying that system.

Expect to be mentored more seriously in a good franchise. There will be a lot of sit down sessions and franchise visits while you get acclimated to the business. These visits will slowly be less regular as you gain confidence. But it should not stop. Also expect more of a tribal learning atmosphere where you can get to meet and learn from other, more experience franchisees.

A good franchise should offer convenience in the start-up phase and should have a solid support program. Don’t forget the operations manual. This book could be somewhere between 300 pages and up showing you what to do in specific situations. It should cover operations, marketing, finance and personnel among others.

Advantages

• You are inside a proven system
• Good start up and long term support and mentoring
• You are part of a brand
• Operations Manual

Disadvantages

• You have lesser control compared to running your own business
• Since you are in a system, you will have to follow rules. Not recommended for mavericks and independent types.
• You will have to pay fees.

Tips on People Who Choose this Option – Compare, compare, compare. There a lot of laundry franchises to choose from. Ask about their support, operations manual, fees, brand building initiative. How good are they in their business? Ask existing franchisees. Franchising is a relationship based business. It’s important you like the franchisor otherwise, the relationship might sour in the long run.

Note: Not all franchises are equal. Since there is no franchising law in the Philippines, it is very easy to call something a franchise when in fact it is not. A real franchise sells proven, interlocking and good-working systems (operations, marketing, etc). Don’t be afraid to ask challenging questions.

May you be guided in choosing how to start your laundry business.  You could find success in any of these options because success depends mainly on your attitude and fortitude to weather the challenges ahead. God bless!

• Written by Caloy Ang for Suds Laundry’s Blog
• Visit us @ www.suds.com.ph or read our blog @ sudslaundry.multiply.com