How to Start a Laundry Business in 10 Steps

Owning your own business can be daunting. From finding the right employees to managing a budget to managing inventory and everything in between, it’s like a full-time job on top of running your shop. Luckily, starting a laundry business might not be as complicated as you think! We’ve put together this guide that will walk you through each step of starting up your new venture so that you can run your small business efficiently from day one.

1.  Choose a business name.

Select a business name that is easy to spell and remember. You want people to be able to find your business by searching for it on Google or Yelp, so avoid words that are too long or complicated. You also need a name that stands out–don’t use something like “Auntie’s Laundry Service,” because it doesn’t tell anyone what you do!

Consider how similar your chosen name will be to other businesses in your area. If there are too many similar names around, customers might mistakenly go somewhere else instead of coming to you. It can also be confusing if there are multiple businesses with the same first three letters

  1. Determine your location.

The location of your laundry business is one of the most important decisions to make. After all, how can you serve customers if they can’t find you?

Your location should be easy for people to access by car, bus, or train. It should also be safe and secure so that no one will break into your store while it’s closed at night.

Look for a place that’s close to customers: If you’re targeting people who live in apartments or condos, pick a spot near these buildings so they don’t have far to go when their clothes need cleaning. This could be as simple as opening up a shop on the first floor of an apartment building where customers are already walking by every day!

3.  Obtain personal and commercial insurance.

  • *Get insurance. This is the single most important thing you can do to protect yourself, your employees, and your business. Insurance protects against lawsuits and other claims, as well as natural disasters, theft, and fire damage. Many states require that small businesses have a certain amount of liability insurance to register with the state or city clerk’s office (depending on where you live). You may also need additional coverage for floods or earthquakes if you live in areas prone to them.
  • *Buy the right amount of coverage from an established company with competitive rates, such as State Farm or Liberty Mutual. Shop around for quotes from several different companies before deciding which one is best for your needs

4.  Register Your Business

To be a legitimate business, you should also register with the state labor department and your city or county. You may need to get a business license, too.

The benefit of registering your business early on is that it gives you more time to plan out how you want your company to run and what equipment/supplies you will need before going into operation.

5.  Apply for a local business license or permit.

How to get a business license or permit:

  • Find out if your municipality requires you to file for a local business license or permit. Call the office of the clerk in your city and ask them if they have such requirements. If they do, find out what kind of forms and fees you’ll need to submit to complete the process.
  • Check with your state’s Department of Labor (or equivalent) regarding whether they require any specific permitting before starting your laundry service business. In many cases, this type of government agency doesn’t mandate that you obtain any specific kind of permitting—but it’s always best to err on the side of caution when dealing with big bureaucracies!

6.  Get an employment ID number and register with your state labor department.

The first step in starting a business is to register with the state labor department. This includes obtaining an Employer Identification Number (EIN) and registering for unemployment insurance tax, workers’ compensation insurance tax, and other state payroll taxes.

7.  Open a bank account for your laundry business.

  • Open a bank account for your laundry business.
  • Pick the best laundry payment systems for your business.
  • Choose a bank that is convenient, reliable, and will support your needs as an entrepreneur.
  • Consider opening an online checking account with an ATM card so that you have access to cash whenever needed.
  • Keep track of all receipts from purchases made on behalf of the business, especially those related to supplies or equipment purchases.
  • Learn how to manage your business’s finances using basic bookkeeping skills or hire a bookkeeper such as this bookkeeper in Melbourne; this will help you avoid making mistakes in tax preparation and record-keeping for future years (or decades!).

8.  Learn what equipment is needed to start a laundry business.

You will need commercial laundry equipment and the right water management services to start a laundry business. This can include:

  • Commercial washers are used to wash large loads such as linens and clothing.
  • Commercial dryers are used to dry small loads of clothes or other items like bedding and tablecloths.
  • Ironing equipment, including irons that use electricity or steam heat for pressing clothes after they’ve been cleaned at the laundromat. If you want your customers’ clothes to look neat, ironing is essential!

You’ll also want folding tables, chairs, and ironing boards so that you can take care of those last details before delivering the clean laundry back home with your customers’ families (or keeping it in storage until they’re ready).

9.  Buy commercial laundry equipment.

Before you buy commercial laundry equipment, there are a few things to keep in mind. First, make sure the machine is appropriate for your business size and needs. For example, a dryer that can handle 100 pounds of clothes would be overkill for a small laundry service that only services 15-20 garments at once. It’s also important to be familiar with the different types of commercial laundry equipment available:

  • Washing machines come in both automatic and semi-automatic varieties—the latter requires humans to load them up manually before they start washing;
  • Dryers are either gas or electric-powered; they come in various capacities ranging from 30 pounds (allowing them to hold 6 shirts) up to 100 pounds (which can accommodate 20 garments).

Finally, you’ll need some sort of financing plan in place before making any purchases. Many people choose zero-interest credit cards because they don’t require collateral or proof of income like other forms of loans might; however, these cards often have high-interest rates due to their low entry points so it’s best not to use this method unless necessary

10. Hire workers, if you need them.

If you need help with laundry services, then hire people with experience. If they don’t have any, then they’re going to make mistakes that cost you money and waste time. You need your workers to be trustworthy and reliable. They should be motivated and willing to learn new skills.

When hiring new employees, always look for good communicators who can solve problems instead of creating them for themselves or others around them.


We hope this guide has been helpful for you and that you are now ready to start your own laundry business. We wish you the best of luck with your new venture and look forward to seeing all the amazing things that you do for the community!

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