How to Start a Dry Cleaning Business? Here’s a 10-step Guide

Dry cleaning, a service that has been around since the 1800s, only gained widespread popularity in the late 20th and early 21st centuries. Today, it’s highly sought after by industrial, commercial, and residential sectors alike.

Several factors have driven this boom, including the rise in single-person households, increasing urbanization, and the demands of busy working professionals. Additionally, the hospitality and healthcare sectors have fueled the growth of dry cleaning services worldwide.  

Surprisingly, the global dry-cleaning and laundry services market is anticipated to reach $616.98 bn by 2030, growing at a compound annual growth rate of 6.6% between 2023 and 2030.

So, if you want to tap into this new business opportunity with high growth prospects, no time is better than now.

However, starting a dry cleaning service requires more effort to ensure quality, customer convenience, and profitability, making it more complex than regular washing services. 

So, if you are wondering how to start and run a dry cleaning business successfully, this blog can serve as your guide. It covers the steps to set up a dry cleaning business, the costs involved, and the pros and cons of this business.

10 Steps to Start a Dry Cleaning Business 

Dry cleaning business space comes with immense potential. But to make the most out of it, you must follow the proper steps. Let’s discuss the ten steps involved in starting a dry cleaning business.

1. Research the target market

The dry cleaning business is a lucrative and stable industry. This industry’s target market is people looking for a reliable, affordable way to keep their clothes clean and fresh. 

It can include families who want to keep up with their laundry, busy professionals who don’t have time to do their laundry, and even millennials with hectic schedules. 

A structured business plan is essential for excelling in this industry. It guarantees that your business operations satisfy the needs of your diverse customer base.

2. Set up a dry cleaning company in a prime location

Dry cleaning businesses are highly profitable and do not require much startup costs. They can generate a lot of revenue if done correctly. However, choosing a prime location for your business to thrive and grow in the long run is crucial.

The perfect location for a dry cleaning business has a large customer base. The more people who live nearby and the more money they spend on dry cleaning, the better. It is also recommended that you consider a spot with ample parking space.

For that, you can set up your business near the following.

• Shopping centers
• Restaurants
• Hotels/motels
• Businesses/office buildings

However, you must also ensure that the spot you rent fits your budget and doesn’t hamper your return on investment, especially when you have just started. Another crucial aspect is that your chosen location complies with zoning regulations to prevent legal penalties.

3. Decide your services

Dry cleaning is a service used to clean clothes, but it is different from the traditional way of cleaning clothes, which is washing them.

Dry cleaners can provide full-service laundering and dry cleaning services to households and commercial clients, such as hospitals, hotels, restaurants, and nonprofit organizations.

So, you can conduct market research to find out the services your competitors don’t provide and consider offering them to stand out and gain a competitive edge.

As a dry cleaning business owner, you can offer various services.

Here are a few of them that you can consider picking from after thorough market research.

• Dry cleaning of all types of garments.
• Dry cleaning of delicate fabrics like silk and wool.
• Customized pressing services that include suit pressing, shirt pressing, and more.
• Customized tailoring services, including hemming pants or skirts and customizing suits by adding pockets or other features.
• Repairing damaged garments such as ripped seams or broken buttons.
• Dry cleaning services include curtains, bed linens, and upholstery.

4. Register your business

If you want to open a laundry and dry cleaning business, there are several essential considerations you need to make. One of the most important is whether you should establish your business as an LLC or corporation. The most common business structure types are sole proprietorship, partnership, limited liability company (LLC), and corporation. 

If you operate your business as an LLC or corporation business structure, then all of the assets of that business belong to the entity itself and not its owners. It means that if someone sues your LLC or corporation over an accident at one of its locations, they cannot sue any individual members of the company. An LLC offers limited liability protection.

Another crucial aspect is choosing a business name that should be short, descriptive, and eye-catching. You must also look at your competitors to ensure your business name is not very similar to theirs.

After you decide the type of entity and name, you can file your paperwork with your Secretary of State to get it registered. Furthermore, it’s essential to manage your business finances effectively. Part of that includes setting up a dedicated business bank account and a credit card to separate your personal and business finances.

5. Get a business insurance

When running a dry cleaning business, it’s easy to get caught up in the day-to-day hustle and forget that you need insurance to protect your personal assets and business from any sort of unexpected events.

When it comes to the dry cleaning market, here are some types of insurance to consider:

• Property insurance: If a natural disaster or fire damages your building, property insurance will help you rebuild and reopen your business.
• General liability insurance covers any legal costs associated with lawsuits related to injuries or property damage caused by your business. It also pays medical bills if someone gets hurt while on your property, such as at a dry cleaner’s.
• Workers’ compensation insurance: This type of coverage provides medical care for employees injured or ill due to their work duties.

6. Provide on-demand service

Your customers want convenience. They want to access dry cleaning when convenient, which is why on-demand dry cleaning businesses are so important. They are an effective way to attract customers by showcasing your commitment to service.

On-demand dry cleaning services let customers schedule the pickup and delivery of their dirty laundry with just a few taps on their screens. So, your customers do not have to take time out of their schedules to access dry cleaning, and you are not at risk of a failed pickup or drop-off. 

Additional services, such as immediate delivery or special garment care, can be consolidated to enhance the client experience. So, take advantage of this opportunity to provide on-demand dry cleaning services to your customers!

7. Acquire permits, licenses, or certifications

To start your own dry cleaning business, you’ll need several business licenses and permits; they are different for different business models. The state or local government may require you to obtain the following licenses:

• Cleaning business license: This standard license allows you to do business within your state, whether you’re operating a commercial dry cleaning business or a residential cleaning service.
• Business registration certificate: This certificate allows you to operate as a corporation in your state, complying with both state and local government requirements. 
• Environmental Protection Agency registration: If your laundering operating procedures use EPA-regulated materials, register with this agency before beginning operations.

8. Invest in dry cleaning equipment and staff

The essential equipment needed for a dry cleaning business varies depending on the company’s size.

The key to any successful business is having the right equipment. When it comes to dry cleaning, there are a few essentials you’ll need to get started:

• A washer and dryer
• Dry cleaning chemicals
• Ironing board
• Hangers
• Dry cleaning machine
• POS systems
• Garment racks
• Steam presses

Also, you can rely on leasing equipment instead of purchasing equipment before you secure funding to lower the initial investment of your small business. The most important thing is that you have enough commercial space and workforce available to handle the volume of your business.

Then comes hiring a skilled team expert in cloth care, stain removal, and customer service. Train them on standard operating procedures and expectations from their roles so they get familiarized with your company culture.

9. Do Marketing for dry cleaning services

Marketing for a dry cleaning business is about creating a compelling and approachable image for your business. You want people to feel like they can trust you and that you’ll take care of their clothes as if they were your own.

When customers talk about their experience with your company, other people will become interested in trying out your services. Word-of-mouth marketing is free!

Marketing your business online on social media platforms is another excellent way to market a dry cleaning business because it allows you to connect with more people than ever.

You can advertise your services on television, radio shows, print magazines, and newspapers too!

10. Provide quality customer service

To provide good customer service for the dry cleaning business, you need to be able to identify your customers’ needs and provide them with a solution that meets those needs.

Good customer service is essential for any business but vital for a laundry business. Here are some ways you can ensure your customers love working with you, fostering trust and satisfaction that can turn them into repeat customers:

• Be friendly and helpful if someone is having trouble finding the clothes or getting something appropriately cleaned. Try to help them out!
• Offer extra services when appropriate. Do you offer alterations? If so, ensure your customers know they can bring and alter their clothes while waiting.
• Keep up with technology; use an app or website to track orders and payments.

There’s nothing worse than a bad dry cleaning experience. So be prepared to ensure smooth operations every time, especially if you want to build customer loyalty and make your dry cleaning business successful.

What is the Cost to Start a Dry Cleaning Business? 

Starting a dry cleaning business may cost you around $8,000. It includes the cost of equipment and an initial supply of cleaning products. If you decide to hire a full-time employee or two, your starting costs will rise to around $30,500, which will be a part of ongoing business expenses.

But with repeat business and inherently high profit margins, you can flourish as a small business owner. As you can see, if you want to start a dry cleaning business, you don’t have to spend a fortune.

Pros and Cons of Starting a Dry Cleaning Business

One of the most important things to consider when starting a new business is the pros and cons. It’s essential to weigh the advantages and disadvantages of your business model and compare it with those of other small businesses in the industry.

Pros:

1. Dry cleaning is an established industry that people are familiar with, so you can build your clientele relatively quickly.
2. You can start as a local dry cleaning business and grow at your pace.
3. The dry cleaning process is easy and not complicated to get started—the equipment required is relatively simple, and the chemicals are not too complex.
4. You can easily use dry cleaning machines explicitly designed for this purpose.

Cons:

1. You must learn how to properly clean different fabrics and types of clothing, which requires training and practice.
2. You must deal with some harmful chemicals, which can be dangerous if not handled properly.
3.  Dry cleaning equipment is expensive and requires regular maintenance, which can be costly.

Fulfill Dry Cleaning Appointments with Perfectly Planned Routes on Upper 

Upper Route Planner is the solution that allows you to create routes, track your vehicles, and manage deliveries from one platform. 

Our simple and intuitive interface lets you quickly build routes optimized for your traffic deliverables. With Upper Route Planner as your service route planning software, there is a lot more you can do, such as

• Send automatic ETA alerts to dry cleaning customers.
• Get a daily summary report to analyze workers’ performance and used routes.
• Follow optimize routes to reduce travel time and gas costs.
• Schedule routes months in advance to skip manual planning.
• One click is enough to quickly dispatch routes to your team.

Efficient Route planning for dry cleaning businesses

Upper is the best way to get the dry cleaning job done in a timely manner. It’s easy to use, flexible, leverage efficiency, and minimizes time spent on the road.

Combining historical data and real-time information allows for dynamically calculating the best route for each worker. Thus, you will know whether a worker arrives on time no matter how many you send out.

Enhanced customer satisfaction

Customers are your biggest asset, and we want to help you ensure that your dry cleaning services provide the quality you want for your potential customers. Upper dry cleaning business route scheduling software allows you to capture images of the receipt as proof of dry cleaning service. 

This approach helps you avoid missing areas and ensures your customers receive the highest quality service possible.

Want a successful dry cleaning business? Experience the difference Upper can make with a free 7 days trial.

Conclusion

To run a successful dry cleaning business, you must invest in equipment like dryers, washing machines, and ironers. You’ll also need to find clients willing to pay for your services.

If you’re looking for a great source of income, opening a new business is the way to go. Dry cleaning businesses can make a lot of money if you have the right business location, offer competitive services, and maintain your business well.

However, starting and maintaining a dry cleaning business doesn’t end there. For sustainable business growth in the dry cleaning industry, you must provide on-time service to your customers. This is where Upper route planning and optimization software comes in. 

Upper advanced route optimization software takes all driving contingencies into account to provide you with the shortest routes so that you can fulfill more appointments. Try the free 7 days Upper trial today.