These days most experts will advise you to create a business plan before you decide to take the risks that are associated with starting a business. A laundromat is typically a little more complicated than other small business models so the need for research, planning and a clear direction are even more essential for entrepreneurs entering the coin operated laundry industry.

A laundromat business plan will help you to prove to yourself that your ideas are viable. With a plan in place you will be able to set clear goals and map out a path towards achieving them in an organized manner. A sound business plan may become essential if you have to show it to financiers or investors prior to getting the startup funds that you need. Lastly it will help you to be more realistic and to ask yourself some tough questions about your ideas.

In this article we have set out a sample laundromat business plan layout. We have set out some examples of titles and content that you might consider using. Feel free to use it as a template as you proceed to put your own plan together.

Cover Letter

Your plan should be set out neatly in a folder with a cover that outlines what the report is about and who contributed to it. It is likely that many different parties will read your plan so you may consider attaching a cover letter to each one that addresses the reader specifically, highlighting the concerns that they will have.

Contents Page

If the plan is any longer than a couple of pages you should include a table of contents. This includes a list of all headings and sub-headings together with a page reference so that the information can be located quickly by the reader.

Executive Summary

An executive summary is a simple introduction to the report. Give the reader a brief introduction to your business plan and summarize each of the sections in the plan.

Mission Statement

While not essential, some businesses like to set out a mission statement which outlines their purpose or business philosophy. It usually covers non-financial motives. For a laundromat you might say that you strive to provide the best service to your customers or that you want to provide a clean, safe and efficient way for them to do their laundry. Your mission should be to do your best for the customer and to be better than your competitors.

Background

Provide readers with some background information on yourself and any other individuals who are involved with the proposed laundromat. Readers may want to know what your qualifications are and if you have had any experience in business or in the coin laundry industry.

Provide a background on the local coin laundry industry so that readers get a better understanding of the opportunities that are available.

If your planning has been in progress for a while then you might want to update the reader on what stage you are at. If you are considering purchasing an existing laundromat then you will want to outline the history of the business in this section too.

Business Description

Offer readers a basic description of the proposed coin laundry business. When will your new unit open for business? Where will it be located? Will you have an attendant on-site at the laundromat all day or only part-time?

Goals and Targets

Set out a list of realistic targets that you want to achieve with the business in the first year or two. Such targets could be financial and relate to gross or net profits on a monthly basis. They could also be related to other metrics such as membership numbers or customer satisfaction rates. Thinking longer term you may also set goals to expand into new locations.

Startup Requirements

Before you can launch your new laundromat business you must know exactly what you are going to need and how much it will cost. Costs will include everything from equipment purchases, renovations and marketing along with professional fees and compliance costs.

Once you have listed everything out you can then work out the total startup cost. From here you can mention some of the options that you have for funding the laundromat. Mention how much you will be able to contribute yourself and how much external funding you will require.

Products and Services

Go through the services that you plan on offering to customers. As well as a basic machine laundry service with washers and dryers you may also offer more upmarket services like ironing or dry cleaning. Make a note of the products that will be vended onsite. Obviously you will sell washing related products like soap powder and fabric softener but you may also offer non-related products like coffee and soda.

Market Analysis

As a prerequisite to writing a plan you should have done at least a little market research around the area where you propose to open your coin laundry. You can present your findings in this section of the plan.

In your research you should attempt to discover if there is sufficient demand for a laundromat in the area in question and if so, exactly what kind of services the people within this target market want.

You also need to consider the competition that you have in the local area. Produce a map that shows your customer catchment area bearing in mind that customers will usually go to the laundromat that is more convenient for them to get to. Look at the strengths and weaknesses of your competitors. Is it going to be possible to pull customers from the catchment area of competing laundromats? Can you make your service that much more attractive than theirs?

Marketing Plan

Set out a plan to bring new customers into your laundromat and to convert them into regulars. The marketing component of your plan should cover everything from the development of your brand, pricing, advertising, other marketing methods and customer service.

Remember that in the laundromat business you will be relying on building long term relationships with regular customers. You not only need to focus on bringing in new customers but you also have to focus on satisfying and ‘over delivering’ to your existing customer base. If you retain your customers and please them then you will also benefit by referrals and ‘word of mouth’.

Business Operations

Set out a plan for the daily operation of your laundromat. Make a note of the equipment that you will have in place and how the demands for water and energy will be met. Mention how you plan on maintaining the machines.

Discuss your daily staff requirements. What role will you, as the owner take in the daily running of the laundromat? How many employees will you need and what will their responsibilities be?

What other systems will you have in place to ensure that the laundromat runs smoothly on a daily basis and that you can control and manage the business efficiently. Will you have a computer system to keep track of stock and cash flows? What about a security system?

Financial Analysis

Lastly, but most importantly, a sound business plan will include detailed financial forecasts over a period of two to three years. This data is best displayed in spreadsheets so that you can set up a column for each month. Some businesses include more than one spreadsheet to allow for different situations. You may consider including one as a best case scenario and others that show revenue growing at a slower rate than is expected.

Try to identify a break even point where the business would basically be running without making a profit, but without losing money at the same time. Then you will have an idea of the customer volume that you will have to aim for. To calculate break even point you need to assume an average customer spend per visit and then calculate the number of customer visits needed on a monthly basis.

If you are borrowing money to start the business you should also include a repayment schedule to show how fast the loan will be paid back.

Appendix

Many assumptions are made in business plans so it is important to be able to give reasons as to why you made such assumptions. Rather than guessing you should try to include data that backs up your theories. Include an appendix at the end of your plan that includes all supporting materials that don’t fit conveniently into the pages of the report. These could include maps, pictures, spreadsheets, tables and lists of references and sources to name just a few examples.

A trend that is growing in popularity is starting an online business. One of the first and most important things to get your business off to the right start is to make an effective and well thought out internet business plan. By creating a good plan, you can focus your efforts and in turn help grow your business and make it successful.

The following are some tips to help you create the best internet business plan for your business. These tips are applicable for both prior to starting your business and after it has been established.

• Learn about your target market. Research is essential to find out what is your target market for your internet business plan for your online business. You need to find out what type and where your customers are for what you want to sell. You can do a thorough keyword search and analysis on the internet to see what keywords work the best so that you can position your business correctly. You can also contact online survey companies to conduct surveys that will give you this information as well. The more you know about your target market, the better and more successful your online business will be.
• Learn about your competition. The more you know about your competitors the better you can position your online business. You can determine your business’ niche by finding a different angle to pursue than your competitors. Additionally, you can offer better pricing or services than those offered by competitors that will be more attractive to consumers which can translate into more sales for you.
• Think about your advertising. Advertising is essential for any business and is an important element of your internet business plan. You can use email marketing tools to create emailing lists where you can send weekly specials or blast about special sales. You can also use networking to your advantage as well as ask for referrals. Business advertising basics such as a professional looking business card and print advertising can also work to drive consumers to your online business.
• Think about the brand for your business. Many companies may offer the same products or services that your online business may offer. In this case, it is important to differentiate yourself from the competition. By creating a brand as a part of your internet business plan, you can do just that. Creating an effective and recognizable brand can include developing a logo, catch phrase and a consistent design and look to all of your marketing and advertising, both online and in print. The more recognizable you make your business, the more it will stand out in the minds of consumers which can give you the edge when they are making a purchasing decision.

After implementing all of the above points consistently in your internet business plan, your business will be on its way to success. By focusing your efforts, you will find that it will be very rewarding to you and your business.

Article 2 – Business Planning

How to Write a Business Plan that Works!

If you are a new start up business operator then you should have already completed our Feasibility Study available on our website and you have determined that your new business idea is in fact a viable business venture…Congratulations! Now we carry what you have found throughout your Feasibility Study and move that information into a plan that is going to work for you, every day in helping your drive your business forward towards a profitable success.

If you are a current business owner and you feel you may have lost your direction or you are lacking the ability to drive your business forward, then our business plan is going to change all of that and hand you back the reigns to your business! You will take this plan and implement it and immediately notice results easing the pressure on you as a manager and helping you see the light at the end of that tunnel.

So why do we do a business plan? Usually if you require funding for your business you are going to need a business plan to prove that you are going to spend the banks money in a way that they see is planned, fair and organised. You must prove that you know where you are heading, in great detail. However the real reason every business owner must operate with a plan is because without one you are simply treading water. I know you are groaning at me right now because you believe all of your wonderful ideas are up there somewhere in your head and you believe that you are somehow implementing those ideas into your business everyday. Chances are if you are reading this article, that you have realised that ideas in head = confused business operator who cannot grow and drive their business forward.

We do a business plan so that day in day out we have one very important thing; Clear Direction. Clear Direction = Profitable Business.

Simple.

Let’s take a look at what your plan should include. We will then discuss how to implement it. It’s dead simple.

Step 1 – What are the Primary Objectives of Your Business The Primary Objective Section is simply a short paragraph that outlines your overall intention for the business, or your mission statement. Do not fluff or overdo your mission statement. Keep it clear, short and concise. All you are doing here is stating exactly what it is you intend to do.

Step 2 – The Summary of Your Plan In a nutshell, describe each section of your business so that it is clear in your mind just how this business will run.

The Concept – Where has your idea come from and what do customer need do you intend to fill by starting this business?

The Product and Service – What do you intend to produce and supply and briefly how you to intend to do this?

Market Research – What has your market research revealed? Is there a dire need for your product and service and how will your product or service fulfil that need? What will you do that your competitors are not?

Marketing Strategy – What strategies are you going to outline in your plan that can demonstrate how you will reach your customers?

Funding – What will the initial funding be and where will it come from? What other funds do you have to pay for the first year of expenses and what earnings do you expect to see within the first 12 months of operation.

Step 3 – Brief Description of Your Business

This is where you:

Describe the core activities of your business?

Business name and details?

The current position of the business; new or established?

Where will the business be located/where is it already located?

Where the business will be in 2 and 5 years?

What Structure have you chosen and why?

Step 4 – SWOT Analysis Strengths, Weaknesses, Opportunities and Threats?

This is where you outline your strengths and weaknesses as a business and opportunities and threats outside the business. Under each heading, use bullet points to outline your advantages and disadvantages and be completely honest; especially when considering your weaknesses as a business or individual and what will threaten your business. Only by being honest in these areas can you identify which areas of your management ability and the business requires the most attention.

Step 5 – Analyse Your Market It is essential to show that there is a sound customer base for the business or that you get to know your customers better than they know themselves. Provide a description of the market in terms of the following:
o Who are the customers?
o What is their geographical location?
o How many customers are there in this location?
o What is their purchasing power?
o How are they accessed?
o What is the stability of the market and expected growth (or decline)?
o What are the seasonal trends?
o What influences the customers?
o What is the price sensitivity?
o What is the competitive edge? How have you determined this knowledge? What proof do you have to support your research? Be thorough here and provide proof of your findings.

Step 6 – Marketing Strategies How do you intend to market your business both offline and online? Break your marketing strategies into the following sections and bullet point your answers:

Customer Service

Promotional Literature

Advertising

Location

Website

Online Advertising

Unique Selling Position/Competitive Advantage

By completing the BusiWIzard ECourse you will master this field.

Step 7 – Sales and Production Targets/Working Capital In a dollar value and product amount, what do you intend to sell each month/year and how are you going to fund your working capital each week/month until you are paid? You must be able to outline where your funds are coming from to fund a service (if need be) until you are paid. Outline in words how you intend to do this by breaking down your estimated profit per month and your estimated working capital requirements. Also determine how you will pay for your operating and advertising costs until you begin to see profit. If your business is already operating, outline how you are doing this currently.

Step 8 – Business Growth and Development How do you intend to grow your business? How will you increase your sales, optimise the use of the business infrastructure that you have created? How will you improve and become more efficient? What management skills do you have to be able to do this and how do you intend to do it step by step? This is the most crucial part of your plan as this will determine whether your business grows with market trends and whether you have the ability to consistently give your customer what they want as your customer base grows and as you grow busier, prove how you are going to continue to drive your business forward whilst still running it each day? What systems and structure will you have in place to do this? Be very, very specific throughout this section and break it into the following areas:

Management Processes; what account and customer management processes will be in place to ensure the business runs smoothly?

Financial Position; how will you monitor your financial position? What percentage of your profits will you allow to grow the business? Products and Services; How will you continue to monitor your products and services compared to that of your competitors?

Marketing and Advertising; What marketing and advertising will you use to ensure your business grows?

Step 9 – Production Provide an outline of how the products and services will be produced:

o The skills, qualifications and experience of the proprietors

o The equipment required

o Sources of raw materials

o Subcontracting

o Technical requirements

o Personnel

Step 10 – Financial Requirements It is vital to assess total funds required to set up a business and cover its operating costs until it becomes profitable. At first glance, it may appear that all that is required is stock, basic fixtures and perhaps the first month’s rent. However, there are many other costs and expenses in starting a business and you should consider every possible expense. Above you have already outlined in words what kind of profit you intend to see, what type of funding you are going to acquire and how. Now you are simply going to pinpoint what your exact expenses will be and whether your funds will support your expenditure.

Our ‘Pull Out Business Template’ supplied with a video tutorial in our ECourse covers this section in great detail so be sure to grab yourself the course if you require further assistance fleshing out the following areas of expense.

– Pre Business Costs

– Initial Costs

– Capital Costs

– Possible Direct/Renovation Costs

– Possible Overhead Expenses for the First Year

Step 11 – Projected Profit and Loss/Cashflow Now that you have outlined your expenses, you can project your profit for each month of the year and establish your profit or loss… When estimating your profit, it is important to be realistic about what you are going to sell. Work on minimal figures to be safe. For example, if you are an electrician and you are starting a new business. You may estimate an average of two small jobs per week for the first 2 months and then build your job list from there. You would estimate the profit received from those jobs and this will become your profit projection for each month and for a whole year. To calculate your projected profit and loss simply add all outgoings for the first year to establish your required capital (this will include all direct or initial set up costs). Subtract your outgoings from your incomings and there you have your estimated profit or loss. When costing your products or services be sure to include your profit in the price so that the business is sure to stay afloat. To establish what your bottom line will be, simply take out the estimated profit and there you have the bottom line financials that you must make to stay afloat. It is possible that for the first year you will have a loss so you will need to determine how you are going to fund your business until you begin to see profit. Factor into your monthly profit or loss statement that your business will require cash flow. Cash flow shortages can arise from customers not paying on time or from an over order of stock etc so you must understand that your projection is simply that, a projection. Allow a certain amount of profit or funds to be available for business cash flow. Talk to your accountant or book keeper to certify what kind of cash flow you will require and to double check that your estimated figures are realistic estimates. To grab yourself a free profit and loss projection form Google Microsoft Templates and search for P and L forms.

Step 12 – Personnel The proprietors and staff are the most important resource of a small business and good arrangements between the business and its personnel is necessary to ensure the success of a business, especially in the long term. The following matters need to be considered:

o Arrangements between the proprietors?

o Involvement of family members?

o Assessment of staff and subcontractors’ performance?

o Contribution of staff to the development and implementation of business plans?

o Training programs?

Step 13 – Administration What records do you have to keep and how are you going to keep them? Some items to consider may be:

o Cash book

o Receipt book

o Invoices, received and sent

o Bank deposits and statements

o Petty cash expenditure

o Wage, WorkCover, superannuation, long service leave records, and employee details

o Capital assets register

o Materials purchased and allocated to each job or temporarily as floating stock

o Contact details of all enquirers, existing clients, suppliers and subcontractors

o Individual job records showing progress

o Job estimates Provide a detailed summary as to what type of account, customer relationship management and office organisation system you intend to use.

Outline your experience in using these types of systems and if none, outline personnel who will be hired to undertake the job for you or training that you will undertake to ensure you can manage the administration side of your business.

Wow, that is your plan complete! I know what you are thinking… You are cringing at the thought of putting a document like that together. But here’s the good news. It doesn’t have to be long and complicated, it can be 3 pages long if you stick to the important information and keep it clear and simple.

Now, how do we implement it into everyday business life? This is the really easy part. Gab a white board and a diary and plan ahead every month including everything from your plan you decided to work on for the whole year. Yes this requires effort, but once you begin to start using your plan everyday by taking what you set out to do and sticking it right under your own nose everyday it will become like second nature and yo will start to see your processes streamlined as your business continues to grow with ease. You have outlined in your plan your marketing principles, your projections for profit, your management and structural processes and much more. Now take that information and decide for the first 3 months what you are going to achieve. Tick it off as you go. Now for the next three months repeat the process ensuring that you are taking on more marketing and systemising your business as you go. This is how you drive yourself forward. Allow time to implement and take responsibility for your plan.

The only way to implement your plan is to do just that. Take it, read it, write it down on your weekly to do lists and actually start physically implementing it!

So off you go, right now write your plan and start implementing it immediately. Don’t forget our comprehensive ECourse that covers everything from planning to management and marketing for small business operators just like you. A Step By Step Guide that is absolutely packed with resources, useful information, templates, tutorials and more to walk you through your daily journey as a business manager. It will save you hours of time, oodles of cash and give you the freedom you deserve to have as a business owner. Best Wishes! Heidi Shannonwww.busiwizard.com