Starting a Laundry Business in the Philippines

It is quite simple to start a laundry business on your own. Here are the steps:

• Determine whether to be a commercial or home laundry. Commercial laundry businesses cater primarily to establishments such as lodges, hotels, restaurants, spas and hospitals; while home laundry targets individuals. You need millions of pesos to compete effectively if you want to tap the commercial laundry market, but you may be able to start with P250,000 if you decide to focus on individual buyers.

• Obtain the ideal location. You must try to be as near your market as possible. If the desired area’s rent is extremely high, you may opt to put up a pickup station and locate your cleaning operations in a lowcost area or in your home. In this case, you will need only three to five square meters. If you want to clean the clothes onsite, it will take at least 25 square meters of floor area. The water supply must be sufficient and not full of minerals that may affect the cleaning process.

• Register your business. If you intend to be a sole proprietor, go to DTI. For corporations or partnerships, you must go to the SEC. Then register in your municipality for your business permit and register with the BIR and have your receipts printed.

• Choose the appropriate laundry equipment. Washing machines come in two basic types: top load or front load. The front load machine is good for heavily soiled clothing and sensitive fabrics. It needs less water to operate and uses much less electricity because of this. Another advantage of front loaders is that because of the faster spin during the drying cycle, the laundry is easier to dry. The main disadvantage of front load machines is their much higher price and maintenance expense. On the other hand, a top load washing machine is rougher on clothes and is not as efficient in cleaning extremely dirty clothes. Top loaders are also noisier because of a stronger tendency to have noise due to load imbalance.

• Offer dry cleaning services. Dry cleaning is the process of cleaning fabrics without using water. Instead of water, a liquid chemical is used. The profits in dry cleaning are usually far better than normal laundry items. Clothes that need dry cleaning are expensive and are often for special occasions, so there is less price competition.

Laundry shops have a bright future as demand for their services will likely increase. To learn how to operate a laundry business, attend seminars on the topic.

BusinessCoach, Inc., a leading business seminar provider, conducts an excellent seminar on Starting a Laundry Shop Business. Contact (02) 727-5628, (02) 727-8860, (0915) 205-0133 or visit www.businesscoachphil.com for details.

Click here to view details of the seminar: Starting a Laundry Shop Business »

*Originally published by the Manila Bulletin. Written by Ruben Anlacan, Jr. (President, BusinessCoach, Inc.) All rights reserved. May not be reproduced or copied without express written permission of the copyright holders.