How to Start a Laundry Business in the Philippines

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There are different laundry businesses that one can start in the Philippines. The choice of laundry business will largely depend on how much money you want to invest and the extent of involvement you want in the business. The profitability of the business is dependent on the operational expenses, which include the cost of rent, supplies, wages and utilities. It is important to select the right equipment and get the required permits and licenses before you start.

Select a Business Type

Research the type of laundry business that best suits your needs. The types include dry cleaning business, home based laundry, coin operated laundry and laundry shop. You could also buy an existing business and improve it. The average cost of starting a franchise is Php 200,000 to Php 400,000, depending on the franchise you choose. A popular franchise in the Philippines is Nothing but Laundry. The advantage of a franchise is that it is a low-risk investment option with established name recognition, management assistance and a proven system of operation. An independent business gives you the advantage of running your laundry business as you choose. You can easily find laundry shops for sale in Philippines, especially on Sulit. Prices range from Php. 150,000 to Php. 400,000.

Find a Location

For a coin-operated laundry, you will need to find a strategic location. For a laundry shop and dry-cleaning business, you will need a retail location. It is important that the shop be able to accommodate all the laundry equipment you will need. This will take space of approximately 1,500 to 5,000 square feet. A coin-operated laundry requires at least 100 square feet.

For a home-based laundry, find adequate space where you will be able to place washed and unwashed clothes and the washing machine. Some of the areas to find space for your laundry business include major shopping malls such as Robinsons Mall and Eastwood Mall or in metropolitan areas such as Manila.

Purchase Equipment

The type of equipment you need varies according to the laundry business you are operating. For a home-based business, find a washing extractor that washes and dries clothes. For a laundry shop, get washers, dryers, ironing tables, dry cleaning machines, credit card machines and a cash register. For a coin-operated laundry, two of the best places online to find coin-operated machines are Sulit and eBay. The average price of a coin-operated machine is Php. 100,000. Also find suppliers for detergents. Avoid using brand-named retail detergents and look for commercial ones.

Get Licensed

You will need the required license for your business. Register with the Department of Trade and Industry (DTI) if you are running a sole proprietorship or the Securities and Exchange Commission for a partnership. You also need to register with the Bureau of Internal Revenue (BIR) for a business identification taxpayer number. Also register with the Department of Labor and Employment if you will have more than five employees. Register with Social Security System and Philippine Health Insurance Corp. for you and your employees. If you are opening a franchise, the franchise will look after the business registration on your behalf and allow you to use its trade name.

Hire Employees

For a home-based laundry, you may not need to hire employees. Start your business alone and grow from there. You will need to hire employees for a dry-cleaning and laundry shop. The best place to advertise for laundry store employees would be online on Sulit.

Advertise Services

Market your services through word of mouth, handing out flyers and coupons, and advertising on Sulit. You can distribute flyers door-to-door in local neighborhoods, and in local hotels and motels, offering promotional discounts. also works well for a laundry business Philippines. You may wish to attend training seminars which are provided to help potential business owners set up laundry shops in the Philippines and network with potential partners while exposing your brand name.

References

About the Author

Martin Muchira has been writing content for online businesses since 2008. He has written content for major companies like Air Asia and Comcast. Muchira graduated at the top of his class from Moi University with a Bachelor of Science in wood science and industrial processes.