1. Clean and Friendly Laundromat
Business plan presentation

2. Mission Statement
Clean and Friendly Laundromat will build a reputation as a clean, safe, reliable and efficient laundry environment that will attract and maintain customer loyalty

3. Industry History The laundry industry is considered a mature market
There are few distinctions in the industry from facility to facility
Often the owners are “absentee owners”
Facilities can either be staffed or unstaffed – low payroll obligations
The laundry industry is a service industry by which the customer provides all labor - excluding facility maintenance
Even facilities with absentee owners could see a profit because the business fulfills a basic need – recession proof
Investments in the laundry industry can net returns of 40%, higher than most industries
Recent years has seen changes to make customers feel more comfortable and make the facilities more aesthetically appealing
Updated more energy efficient equipment
Wash and fold drop off service
Clean and spacious facilities
Staffed facilities
Other amenities for customer pleasure such as TV's, music, and vending machines

4. Market Summary
Target market is low to mid income families and individuals
Residents of East New York Brooklyn
Apartment dwellers lacking laundry equipment in house or on premises
Home renters lacking laundry equipment in house, in need of large machines for bulk items, busy families in need of drop off service
Home owners lacking laundry equipment in house, in need of large machines for bulk items, busy families in need of drop off service
72% of Brooklyn residents are renters
Even families/individuals with in house laundry equipment are increasingly opting for the ease and efficiency of Laundromats

5. Business Concept
Our plan is to maximize and expand on the current facility which will include updates to the facility to enhance the customer experience
29 washers, 30 dryers and daily drop off service
Upgrade to a money card system
Valuable amenities for customers such as free coffee, Wi-Fi connectivity, televisions w/cable, vending machines, ample folding space and seating
Laundry cleaning products sold at a discount price
Excellent customer service
A clean, spacious and well lit facility

6. Opportunities
The biggest problem customers face at a laundry facility is a lack of available machines
Another problem customers face is a lack of customer service if and when they encounter a problem at the facility
A money card system can electronically fix problems quickly and efficiently
The square footage and number of washers and dryers eliminates wait times for customers
A well trained staff and hands on owner means customers will receive immediate attention
A good repair service contract along with repair and maintenance training received by the owner will diminish down time for machines

7. Competition Competitive Advantage
Our nearest competition consists of three facilities all within a mile
Two of these facilities are less than 2000 square feet
They each have machinery that is either outdated or in disrepair
Those facilities are run and owned by absentee owners, sometimes without any staff
They are all traditional “Coin-Operated” facilities
Competitive Advantage
Our square footage and updated machinery will give our customers the efficiency of “in and out service”
We will upgrade our machines to a money card system for pricing and accounting simplifications
The facility will be fully staffed
The owner will be completely hands on in order to efficiently handle any issues that may arise including being trained in repair and maintenance of the equipment

8. Goals and Objectives
With the implemented updates we will attract additional customers to add to the already steady market base
We will increase the self service wash and dry as well as the drop off service by 15% in year 1
The 15% increase for those services will be maintained in subsequent years by use of advertising, surveys and customer incentives

9. The Team
Clean and Friendly Laundromat will be owned and operated by Clarissa David
Clarissa David has over 15 years of experience in the field of Accounting including seven years in management
Extensive research has been conducted and subscriptions to several trade publications on the industry have been obtained
Membership to the Coin Laundry Association will soon follow
The facility will be staffed during all working hours by three part time employees

10. Financial Plan
Our washing, drying and drop off service prices will be on par with the competition at approximately $0.70 per pound
The washing and drying prices will be as follows:
18 lb front load washer $1.75
20 lb front load washer $2.00
35lb front load washer $3.25
Dryer $0.25 per 10 minutes
The sale of laundry cleaning products will comparable to large discount/retail chains such as Target which is approximately five miles away
Sales from vending machines will be supplied by and profits split 40/60 with vending companies

11. Financial ProForma of Current Owner
REVENUE
COIN $13,610
DROP OFF SERVICE $2,580
SODA MACHINE $400
SNACK VENDING MACHINE $190
VIDEO GAMES $100
INTERNET $90
TOTAL INCOME $16,970
EXPENSES
RENT $4,150
REAL ESTATE TAX $167
GAS $2,200
ELECTRIC $1,050
WATER $934
INSURANCE $375
GARBAGE $94
TELEPHONE $86
PARTS/REPAIRS $310
SOAP SUPPLIES $220
TOTAL EXPENSES $9,586
NET PROFITS $7,384

12. Projected ProForma for Clean and Friendly Laundromat
REVENUE
COIN $15,652
DROP OFF SERVICE $2,967
SODA MACHINE $460
SNACK VENDING MACHINE $219
VIDEO GAMES $115
TOTAL INCOME $19,412
EXPENSES
RENT $4,150
REAL ESTATE TAX $167
GAS $2,200
ELECTRIC $1,050
WATER $934
INSURANCE $375
GARBAGE $94
TELEPHONE $86
PARTS/REPAIRS $310
PAYROLL $2,910
LOAN PAYMENT $3,547
SOAP SUPPLIES $220
TOTAL EXPENSES $16,043
NET PROFITS $3,369
**Includes Loan Pay Back

13. Funding Requirements CONSTRUCTION REMODELING $0
COST OF EXISTING LAUNDRY BUSINESS $250,000
RENOVATIONS $3,100
DUES AND LITERATURE $400
WASHER HOOK UP FEES $0
BUSINESS LICENSES/PERMITS $0
ADVERTISING/GRAND OPENING $500
LAUNDRY EQUIPMENT – WASHERS $0
LAUNDRY EQUIPMENT – DRYERS $0
CARD SYSTEM $60,000
WATER HEATING SYSTEM $0
SOAP DISPENSER $0
LAUNDRY CARTS $0
LAUNDRY SCALE $0
CASH REGISTER $0
CHANGE MACHINE $0
OFFICE EQUIPMENT $300
PHONE INSTALLATION $0
TELEVISIONS $800
VIDEO SECURITY SYSTEM $0
LEGAL AND ACCOUNTING FEES $450
PREPAID INSURANCE $300
RENT $4,150
RESERVE FOR CONTIGENCIES $10,000
TOTAL START UP COSTS $330,000

14. Risks and Rewards Weaknesses Risks Strengths Rewards
Rival Laundromats nearby
Possibility of new Laundromats
Failure to attract new customers
Risks
Failure to repay loan at an accelerated rate
Diminished net profit until loan repayments
Strengths
Dedicated owner
Clear business strategy
Clear marketing strategy
Training from previous owner
Industry association membership
Business fulfills a basic need – steady cash flow
Rewards
Loan repayment in advance of end date
Increased market share/net profit
Possibility for additional facilities

15. Key Issues Near term Long term Upgrade equipment technology
Complete cosmetic updates to the facility
Grand opening advertising
Hire and staff for the facility
Postponing any of the above near term goals would affect the attraction of new customers
Long term
Maintain employee training and customer satisfaction
Maintain equipment repair and maintenance contracts as well as owner equipment repair training
Allowing any of the above areas to fall short will reduce repeat business and sales