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Following this guide will put you well on your way to owning your own Dry Cleaner's. As your read-on, here are the items we will cover, which is also your basic checklist as you begin this venture:
- Obtaining Financing
- Finding a Location(s)
- Competitive Analysis
- Demographics Study
- Choosing a Business Package
- Writing a Business Plan
- Contact Us
Here is a list of resources that will prove helpful:
While you consider this business opportunity, keep in mind that while the paybacks are plentiful (when you run an efficient business), there are significant cash expenditures up front. Our contracts require 20% down and the remainder of the payments for your particular package are paid as installments up through the opening of your drycleaning store.
In addition to our package costs, you will need cash and/or financing for your working capital and build-out costs, which can range anywhere from $5000 to $50,000 depending on the state of your location and/or new construction agreement.
If you are seeking a loan, we recommend that you start with your local bank because they know you best. If that doesn't work, we can work with you to find an SBA preferred lender. The Small Business Administration loan option is a great program. The fees are usually more than what you would get at your local bank, but small business loans (obviously) are their specialty, and the SBA is a great asset for entrepreneurs opening their first drycleaners. However, make sure you choose a preferred lender to expedite the process.
Private financing is also available through companies like Butler Capital, but they require first and last payments upfront, much higher interest rates and a shorter term (typically a 5-year term) for payback.
Moving forward, we suggest you fill out our Personal Financial Statement so that we can help you with pre-qualification. At a minimum, you are going to need to have a strong credit score (650 plus - 700 plus preferred), assets (cash, stocks, investment properties) and/or equity in your home.
As you work on the financial aspect, we should be working on finding the best location for your business. We can do this for you or you might consider a marketing firm to pinpoint some of the most lucrative areas in the city, commercial and residential, but this must be balanced with square footage cost is for available locations.
Here are your primary concerns in securing a location:
- Power supply and electric standards (single vs. three phase)
- Available utilities (natural gas, electric, water, etc…)
- Plumbing and drainage for the washers
- Ceiling heights must be at least 12 to 15 feet for an up/down conveyor system
- Building size: 1200 to 2000 square feet or greater depending on your package
Other concerns:
- Traffic flow (automobile and foot traffic)
- Available parking (preferably not parallel spaces)
- Access to your store (easy in and out for automobiles)
- Nearby businesses that are attractive and complimentary
Once a suitable location has been identified, we will need to perform the appropriate demographic study specializing in population, income and marketing breakdowns, which will help you determine what size dry cleaning business package you will need to serve your customer base.
In addition, as you scrutinize potential locations, ask the following questions: "What do people generally think about this area?" "What is the image this location presents to the public?" Your dry cleaning store will do well in any middle or upper income locale, but especially in an area of high density population (single family homes and apartment complexes).
On a city street, while foot traffic is of prime importance, vehicular traffic will also be of significance. On-site parking, if available, would be the most desirable. If not available, be certain that parking is readily available on the street or in inexpensive off-street parking facilities nearby.
This all leads to your business plan and finalizing your financing. Ask yourself these questions:
- How will you be financing this endeavor? Will you be seeking outside funding or a bank loan?
- How much have you scrutinized the local competition? How is their quality? What are their prices? What are their advantages and disadvantages? Do they have specials, for example, in by 9 and out by 4 or 2 for 1 on Wednesday? Are they high-end or discount/one-price cleaners? Do they do routes or business delivery?
It’s important that take some of your clothing to as many of your competitors as possible to get a feel for the market. Take detailed notes on your experience at each cleaner’s. Working together, we can begin to formulate your marketing strategy and competitive advantages based on what you encounter around town.
We'll help you create a dry cleaning business plan and model that will be your step-by-step guide to success. We've done many of these in past, but with your input, we create a unique plan that works for you and your location.
Alongside our dry cleaning operation manual, which you receive upon signing a contract with Neighborhood Cleaners, we share our proven strategies that will guide you to financial stability and profitability through good customer service, operational efficiency, effective employee management, timely marketing and proper equipment maintenance.
Keep in mind that by with working Neighborhood Cleaners, our experience is your advantage. With state-of-the-art inventory, demo videos, detailed package pages and the most innovative equipment, throughout our Web site, you can see what we use in our own plant everyday.
After reviewing our site and noting your questions, your next step is to contact us to get started on the path to owning your own dry cleaning franchise with no royalty or annual fees included. |
