How to Start a Dry Cleaning Business in 2022: The Ultimate Step-by-Step Guide

Dry cleaning is one of the most lucrative and high paying business opportunities.

Due to the fact that the majority of people who always want to wear neat and ironed clothes are shy when it comes to doing their laundry, the demand for this service is skyrocketing.

While operating this type of service can be exciting, to be among the top earners in this line of business, you need to plan properly.

This article gives an ultimate guide on how to start a dry cleaning business. It will always give accurate information about what this business idea encompasses.

The table of contents below will help you for easy navigation.

How does a dry cleaning business work?

Like any other business, dry cleaning took determination, manual labor and time to make it successful.

Other than that, it's about being on time. Opening the store on time, keeping public and employee areas clean, and ensuring orders are fulfilled in a timely manner are all activities you can expect on a daily basis.

You will also need to make sure equipment is working properly and load washers and dry cleaning machines with extra clothes that need to be cleaned to keep progressing well for all customer orders.

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Skills and experience required in the field of dry cleaning?

You will need to be friendly with walk-in customers and very careful with their items. Also, attention to detail is important.

You will need to notice things like stains or damage on the clothes to point out to customers when they drop off the clothes for laundry or dry cleaning.

As a dry cleaner, you also need good communication skills. With this, you can easily communicate with your customers.

Also, the skill of time management. There is always a tight work schedule needed to get everything ready on time.

Step by step guide on how to start a dry cleaning business

As I mentioned earlier, dry cleaning is one of the high paying business opportunities that is booming today.

But do you know that it is possible for you to establish it and still you are not making enough money from it?

Yes, it is 100% possible because it is not about getting the best physical frame with all the fancy equipment and saving the business.

There are successful steps on How to Start a Dry Cleaning Business that must be followed strictly.

#1. Plan your business

There is a popular adage that goes “He who doesn't plan, plans to fail”. To start a dry cleaning business, you must have a clear plan. Not just for the dry cleaning industry, but for any other business.

In planning how to begin, it is advisable that you consider;

The name of the company

The costs

Who will be your target market

How much you will charge for your service.

By choosing a name that suits your business perfectly, you don't have to choose an already existing name. You may want to operate under a business name other than your own name as a sole proprietorship.

And while registering your business name, it is necessary that you check your business name against federal and state trademark records, social media, web domain availability to ensure that it is unique .

From a cost perspective, you have to ask yourself “how much will it cost to start a dry cleaning business”. Consider a security deposit for rental if not for work from home, signage, laundry and dry cleaning equipment, and cash register.

Additionally, you need to factor in the cost of cleaning supplies, hangers and plastic bags, mechanical clothes rack, and many other things you might need to start your business.

Other costs you need to consider are day-to-day expenses which include rent, equipment rental payments, insurance, utilities, supplies, and marketing costs (printing and delivery costs for promotional leaflets).

Let's move on!

Another important thing you need to consider is your target market. Will your customers come from the region? will there be subscription services? what are the likely allergic reactions of customers and how can they be prevented? The answers to all of these questions should be on the desk when planning.

Next, the price of your services. Considering this should depend on what your clients can afford and the value of your services.

You can do some research to find out how much existing laundry services charge. Do a quick survey to gauge the market and find out if they are okay with their current services.

If the information you collect reveals that the market is underserved, this may be an opportunity to provide faster, higher quality, and more affordable service.

Once you have completed the planning, the next step is to form a legal entity.

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# 2. Form a legal entity

There are different types of businesses. Either it is a sole proprietorship, partnership, corporation or limited liability company. Once you have completed the planning process, form a legal business entity.

Was a legal entity means it has legal rights and responsibilities, including tax filings. It can enter into contracts either as a seller or as a supplier and can sue or be sued in a court of law .

Establishing a legal entity such as a limited liability company will save you from liability if your business is sued.

#3. Register for taxes

As a legal entity, you will need to register for a variety of federal and state taxes before you can open a business, as your business is fully recognized by the state government in which it is registered.

All you have to do is apply for an Employer Identification Number (EIN) . EIN is like a social security number (SSN) for your business. The unique nine-digit EIN number allows the Internal Revenue Service (IRS) to identify businesses for tax reporting.

#4. Open a Business Bank Account

Since your business is a corporation, another wise thing to do is open a separate account for it. Doing this separates your personal assets from your business assets, which is necessary for personal asset protection.

It also facilitates accounting and filing tax returns.

#5. Have business accounting

Business accounting is the systematic recording, analysis, interpretation and presentation of financial information.

This information will help you to have a financial report; record your expenses and income. It will also help you track your financial performance and meet your compliance obligations as a business.

#6. Get Permits and Licenses

This step is very important and must be completed. If you encounter other steps and ignore it, it will close your business.

Basically, by getting a license, you ask for:

State and local license

Certificate of occupancy

Occupational safety

Requirements and fees for state and local licenses depend on your business activities and the location of your business. The State locally regulates the activity of dry cleaning.

Certificate of occupancy

Since you won't be operating a home-based business, you need a physical location. And to do this, you need a certificate of occupancy. This certificate confirms that all building codes, zoning laws and government regulations have been complied with.

#7. Get business insurance

To keep your business running safely, you need to purchase commercial insurance. Business insurance protects the financial well-being of your business in the event of a covered loss.

However, there are several types of insurance policies created for different types of businesses with different risks.

One is general liability insurance. This type of insurance is perfect if you are unsure of the types of risks your business may face.

The other is worker's compensation insurance. This type of insurance is perfect if your business will have employees.

#8. Define Your Brand

Your brand is what your business stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from its competition.

At this point, you can promote your business using hand-delivered flyers that offer a discount coupon.

#9. Build Your Business Website

Once you are done creating your brand which must have attracted more customers, the next time is to create a business website.

With a business website, you can have an online presence which, in turn, will expand your market.

Let's look at some of the necessary dry cleaning equipment!

Related Article: 25+ Most Profitable Small Businesses in 2022 | Expert advice

Laundry and dry cleaning equipment

The following items and equipment are needed for a dry cleaning business:

Washing machine

Washbasin

Generator

dryer

Drying rack

clothes conveyor

Table or ironing board

industrial steam iron

Water storage or reservoirs

Wooden shelves

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How to Start a Dry Cleaning Business in 2022: The Ultimate Step-by-Step Guide

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