Due to lifestyle changes and increasing rates of working outside the home, the laundry project has become a promising investment opportunity in Saudi Arabia. Washing is a necessary task in people’s daily lives, and the laundry allows them to clean their clothes efficiently and with high quality while saving a lot of time and effort. More importantly, it removes their worries about household appliances, from providing a private space for washing and buying expensive washing machines and dryers to buying cleaning supplies periodically, so there is a growing demand for laundries. If you are thinking of starting your own business, a laundry project is undoubtedly an excellent idea, so we provide you with a comprehensive guide to everything you need to start your own business.
How do I start a laundry business?
In order to start a successful laundry business, you need to follow these steps:
1. Preparation of a feasibility study
Preparing a feasibility study is an essential step to starting a laundry business to ensure a balance between investment and return. It provides you with a clear view of all aspects of the project, as follows:
- Examine financial feasibility and conduct a careful financial analysis that includes estimating expected costs and revenues to determine whether the project will be profitable and worth the investment or not.
- Comprehensively analyze the market to understand the supply, demand, opportunities, and challenges expected in the target area, and determine the appropriate location for the project based on this.
- Identify potential competitors and analyze their strengths and weaknesses.
- Understand the needs of customers and the services required to prepare a list of services you would like to offer in your laundry.
- Determine the capital and operational costs needed to open the laundry from the costs of renting or buying the place, the costs of the necessary tools and materials, and the costs of marketing and promotion to attract customers, and this helps you determine how to finance the project and plan financial resources.
- Analyze the legal and regulatory aspects related to establishing a laundry business in Saudi Arabia, ensuring that your business complies with legal standards.
- Assess potential risks to the project and develop strategies to deal with and minimize them.
2: Obtaining licenses and permits
You must obtain the necessary licenses and permits to open the laundry, as follows:
- Licensing commercial activities from the General Investment Authority or the competent authority to start any commercial activity.
- A permit from the local municipality or municipal secretariat according to the location of the laundry.
- Permit and approval from the Civil Defense based on security regulations.
- A health record was obtained after registering the project with the local health authorities and adhering to health standards.
- Certificate of registration in the tax system (VAT).
- The approval of the municipality on the various activities related to the project before starting the work.
- Requirements can include adhering to environmental regulations to keep the environment healthy.
3: Choosing and equipping the venue
Make sure that the place you choose is close to vital residential complexes and that the storefront is eye-catching, preferably on a main street. And be sure to choose an interior that gives your customers a good and comfortable experience. You must also comply with the conditions of the municipality in the city where you will open the laundry to get the necessary license to start a laundry business. General conditions may include:
- Restrictions can exist depending on the location, such as being away from hospitals. It is preferable that the laundry be located on the ground floor of the building, and it is not recommended to open it in hotels or shops.
- Its area must be sufficient to accommodate equipment and machinery, preferably not less than 48 meters in most regions of the Kingdom. There may be special requirements for washing and drying areas, such as being separate from the customer reception section.
- The laundry must comply with hygienic conditions, such as that the sewer pipes be made of plastic, in order to avoid any reactions that may occur with the cleaning agents used in the laundry. There can be laws on hygiene and ventilation, and the temperature of the place should not exceed 25 °C.
4: Purchase of equipment and machinery
You have to choose high-quality equipment to ensure good performance in the long run. The cost of equipment you may need for a laundry project can be estimated in the following table:
| Type | Average price (SAR) |
| Washing Machine, 5 kg | 300-800 |
| Washing Machine, 8 kg | 1000-2500 |
| Washing Machine, 10 kg | 2000-3000 |
| Dryer, 5 kg | 1000-2000 |
| Dryer, 8 kg | 1500-3000 |
| Dryer 10 kg | 2000-4000 |
| Large steam iron | 250-800 |
| Cleaning materials with clothes and packaging bags | Up to 1000 |
5: Identification and pricing of services
It is important that you determine the services you want to provide in a laundry project and price them efficiently to make sure that you avoid any loss, and try not to increase the pricing of services at the beginning of your project in order to attract customers to you. In general, some or all of the following services can be provided with the appropriate pricing estimate, as follows:
| Service | Average price (SAR) |
| Regular laundry (shirts and pants) | 5-10 per piece |
| Laundry for underwear and socks | 2–5 per piece |
| Suits and uniforms | 20–50 per piece, depending on its type |
| Ironing regular parts | 5-20 |
| Upholstery cleaning (curtains, bed linen) | 30-100, depending on the size |
| Pick-up and delivery fees | 10–50, depending on the distance |
| Carpet washing | 15–30 per square meter |
6: Develop a successful marketing plan.
The success of a laundry project is not limited to choosing a suitable place and providing services with high efficiency; you must also pay attention to the marketing aspect of the project to stand out from your competitors in the region and attract customers. Here are some marketing tips and ideas for the success of the project and increasing profits, as follows:
- Design billboards and display them in places and streets frequented by your target audience. Publications bearing the services you provide can be printed with their prices and distributed to the target audience.
- Create an identity for your laundry on social media sites used by your target audience, and constantly post ads about your services, prices, and any discounts.
- Offer special discounts on national holidays and occasions.
- Get your customers’ information, such as their cell phone numbers or e-mail, to follow up with them and take their opinions after obtaining laundry services, and send them a postcard with offers and discounts.
- Make special offers for regular customers.
Features of the laundry project
The laundry project is an excellent choice for entrepreneurs, as it provides, as we mentioned, a service that has an increasing demand, and in addition to that, it has many advantages that are among the factors for the success of the project, the most prominent of which are the following:
1: low cost
A laundry project is less expensive than other projects, as it can start with a minimum capital of SAR 50,000.
2: High revenues
The laundry project achieves high revenues that cover the costs spent on it and give a monthly profit margin of 5,000 to 10,000 riyals if the project works at half the production capacity and 15,000 to 30,000 riyals if it works at full production capacity.
3. Not many workers need
One of the most important features of this project is that it does not need many workers, as it can start with two workers, one for reception and the other to supervise the services and tasks of the laundry.
Make your laundry business a success with Qoyod.
Qoyod Accounting Program is a vital tool for the success of a laundry project, as it provides you with a full range of services that help you manage the financial and accounting aspects of your project effectively and safely and allows you to accurately track revenues and expenses, monitor the financial performance of the laundry, track costs, and manage inventory, which helps you improve the efficiency of operations and achieve a balance in costs.
Qoyod provides you with accurate financial reports that reflect the status of the project and provide important analytics that help you make smart strategic decisions. It also provides electronic billing services in line with the requirements of the Zakat, Tax, and Customs Authority. Thanks to its cloud-based nature, you can access accounting data anytime, anywhere, improving instant decision-making.
You can benefit from the mentioned services and more completely free of charge for 14 days by registering in the cloud restrictions system easily and without the need for a credit card. You can cancel or upgrade your subscription to a paid subscription at any time.
Conclusion
It turns out that investing in a laundry project is a smart strategic move. By preparing a feasibility study and thoroughly understanding the legal aspects and licenses, you as an entrepreneur can achieve great success. The use of technology represented by cloud accounting systems also helps you manage the financial aspects of your project with high efficiency, so do not hesitate; let us be part of your success story in achieving your goals. Make the best decision for your project and join the Qoyod cloud accounting system now.
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