Exploring the idea of starting a laundry shop business, but overwhelmed by where to begin? You're not alone. More and more Filipinos are now wondering how to start a laundry business in the Philippines, because this really can be a working tool to take your life to the next level. Just look at it as at something very simple, a routine task in everyone’s daily life and it becomes clear why this business is gaining popularity all over the world. Steady income, even with minimal investment and regardless of global crises or instability in financial markets, gives the owner a sense of power and confidence in the future.
Today, the laundry business in the Philippines is not just about washing clothes. It’s also about helping people get things done faster, providing good service and reducing daily stress. Furthermore, the prospect of becoming an entrepreneur or investing wisely, even without having a large capital, by allocating your investment budget smartly.
Of course, the big question is: how much laundry shop capital do you need? The beauty of this type of business is that the startup capital can be quite affordable. Especially if you start from scratch, small and with just one or two machines, a compact space, and a well-thought-out business plan.
Key Takeaways
1. Launching a laundry business in the Philippines could be a very perspective idea, especially in more developed and buzzy areas, where people value their time or simply do not have washing machines at home.
2. Startup costs can differ and 170 thousand Philippine pesos may be enough to start, but much will depend on the business format you’ll choose.
3. Assessing financial risks, including whether to take business loan or quick loan, deciding on the location and ensuring a high level of comfort for the customers are all crucial on the path.
Why a Laundry Business is a Profitable Opportunity
Let’s say, you’re just a regular guy, starting your own first business in Manila. Living in a buzzy, vibrant area. What customer are you looking for? There are so many options here. It could be an office worker, tired after a 12-hour shift, or a student, who just came home from a party and found a mountain of dirty clothes at home. It could also be a condo resident, who doesn't want to waste time doing laundry and just wants to hang out with his girlfriend. If you're willing to provide them with a quick and quality service, you've got plenty of customers.
Nowadays, the laundry business in the Philippines is evolving fast. New formats are popping up: self-service laundromat business, pickup and delivery options.
Perform as an intermediary between customers who are looking for premium options, like express delivery and those looking for basic services.
Step-by-Step Guide to Starting a Laundry Business
Research Your Business Model
Choosing a model for your future laundry business, it is important to decide on the audience your services are aimed at. There are two primary business models when it comes to launching a laundry shop: self-service and full-service operations. Although both models have their benefits and drawbacks, you can always add some unique feature to your project. It will help you break away from the competition in the market, no matter how much capital you have.
1. Full-service laundry. You perform a full range of services for the client: pick up his clothes, wash, delivery service. This model will be popular with customers who value their time or do not have the opportunity for various reasons to do the entire cycle of work themselves.
2. Self-service laundry. Customers take care of their own laundry. You won’t need to hire staff, but you’ll have to invest in machines and rent a space. This setup might be interesting to middle class people who want to save on laundry costs and have enough free time to handle their own washing.
3. Franchise: Don't know where to start and need expertise in this business? You can consider offers from already known brands, for example, SudsGO or Save5 Self-Service Laundromat.
Estimate the Capital You Need to Start
Initial Investment
To get started, you’ll need some investment. Here’s a rough breakdown of the costs:
- Rent: starts from 10.000 PHP + per month (depends on the location. Don’t forget that you have to pay in advance)
- Improvements: 20.000 - 100.000 PHP (it depends on the kind of changes you’re going to make in your space)
- Washing and drying machines (2 - 4 sets): starting from 100.000 PHP
- Small equipment: 20.000 PHP (shelves, baskets, folding tables, ironing boards)
- Registration, licenses, and permits: 5. 000 - 20.000 PHP
- Supplies (detergents, packaging): around 5.000 - 15.000 PHP
- Advertising: 10.000 - 20.000 PHP (banners, social media, flyers)
Total estimated cost: 150.000 to 500.000 PHP
Ongoing Expenses
- Staff salaries: starting at 10.000+ PHP per person (1 employee or 10 it’s just your decision)
- Electricity and water: 5.000 - 20.000 + PHP per month
- Marketing: 3.000 - 10.000 PHP (loyalty programs, themed events, social media campaigns)
- Equipment maintenance: 2.000 - 10.000 + PHP (monthly check-ups to keep the machines in good condition and avoid costly sudden breakdowns)
Find a Good Location for Your Laundry Shop
Location can determine the success of your business. Oftentimes it shows how well you perform.
- The key factors here will be
- Good public transport options
- Foot traffic
- Easy walking access to business centers or schools
It’s important that the laundry shop is easy to reach out on foot, has a visible entrance and provides the necessary connections to run all the equipment smoothly.
Register Your Business
Paperwork is part of the game. Laundry shop business in the Philippines involves some registrations, permits and a bit of patience. Before opening your doors, you’ll need to go through the following process:
- Register your business with the DTI (Department of Trade and Industry), or the Securities and Exchange Commission (SEC), if you're establishing a corporation
- Obtain a business permit from the local city (Mayor’s Permit)
- Receive a Tax Identification Number (TIN)
- Meet all health and safety requirements, including sanitation and fire safety inspections
Purchase or Rent Equipment
Machines form the backbone of every laundry business. As they drive every process from start to finish, the approach to choosing equipment should be careful and without rushing.
Main options for equipping your Laundry Startup:
- New equipment tends to be more expensive, but it offers reliability and typically comes with warranties. A new washing machine can cost from 40,000 to 100.000 PHP.
- Purchasing second-hand machines can save money upfront, but comes with a higher risk of breakdowns and may lack warranty coverage.
A little local research about your area and its people can set you apart and help you better tailor your services to their needs. For instance, if you are hoping to attract more families to your place, you can add a children’s play zone to make their weekly chore laundry more joyful. Setting a vending machine with snacks and beverages can also be a smart idea!
Promote Your Laundry Business
Plan your marketing strategy well in advance, putting it on top of your list of considerations. Without it, there is no chance for potential customers find your laundry. You might not be a marketing expert, but with the rise of technologies and the ability of modern internet research, you don’t have to hire a dedicated person to run a special campaign or promote your business. You just need a marketing budget and desire to try new ideas. By combining digital strategies with offline actions, you can reach more customers without overwhelming them. What matters most is your own confidence and friendly welcoming attitude toward clients. Subtle, thoughtful promotion often draws more attention than spammy flyers scattered everywhere.
Now it’s time to attract your first customers. Here are a few practical ways to get started:
- Place the laundry on Google Maps
- Create interactive content on Facebook, post photos, promotions, reviews
- Launch the “Bring a friend - get free laundry” promotion
- Leave flyers at doorsteps in the area to introduce your business
- Provide exclusive deals for families
- Offer special promotions to the first 50 customers
- Announce and share customer testimonials
According to the multiply surveys, people likely trust the recommendations of their friends and family members than unknown advertisements. In the Philippines, it’s amazingly effective to spread the word. Encourage your spouse or a friend to recommend your laundry service and the spread the news about your opening through their networks. Minimizing your costs could be crucial especially if you're just starting out and don’t yet have experience in the laundry business. Besides that, maintaining a lean budget can serve as a buffer during the early stages.
Common Challenges in Running a Laundry Business
- High water and electricity bills. Be prepared to pay more in hot season. It's okay, you just need to reflect it in your spending plan.
- Poor financial planning.
- Equipment breakdowns. Your washing machines will break down sometimes. You need to learn to take this calmly and add monthly maintenance costs to your expenses. Or your business or property insurance may cover this.
- Competition. If there are already such points in your area that are well-known and have their steady customers. What will be your advantage over your competitors? You can add free Wi-Fi or install a vending machine with cookies.
- Seasonal declines in demand. Boom in the summer, decrease in the fall. This is generally normal, think about special offers when you’ll notice a drop in customer visits.
- Personnel issues. The quest is to find a reliable courier or operator. You must be prepared for staff turnover in the beginning.
Final Thoughts: Is a Laundry Business Right for You?
In the Philippines, the laundry business can be attractive due to its relatively low entry threshold compared to other ventures. If you have initial capital or are ready to take out a quick loan and start, devoting all your attention and time to this new story at the initial stage, you can safely try yourself in a new role. At the same time, keep in mind expenses, unexpected events and risk or equipment failures. Long-term budget planning will help you cope with this. Before you start, just ask yourself, if you are ready to perform some operations, even the simplest ones in force majeure situations. Do you understand who your main client is and what are their service requirements: cleanliness? Speed? Location? What’s your plan to compete effectively? Success is a combination of daily work and luck. It can be a delicate laundry service or a full self-service point. Or you’ll decide to build a new laundromat. It’s not just about clean clothes anymore. It’s about making life easier!
We encourage you to create a laundry business that reflects your vision and shows your unique approach.
