Laura’s Laundromat

The Eco-Friendly Laundromat

Business Plan
March 1, 2009

403 S. Czech Hall Road Yukon, OK 73099 405-577-5651


3 3.0 8.0 1.0 Investor Return 2 .0 6.1 4.0 2.0 3.0 5.2 1.0 Attachments 11.1 1.0 9.2 2.0 Additional income source 12.1 2.3 2.0 Executive Summary Objectives Mission Keys to Success Company Summary Company Ownership Startup Summary Location Equipment Permits Local Competition Marketing / Advertisement / Operations Store Layout Demographics Industry Summary Monthly Projected Income Proforma 10.0 7.INDEX 1.

The most notable of these technologies is the ability to eliminate the coin from the “coin-op” business. In addition. Some of the obvious advantages of using the smart card are the elimination of the daily collections of coins from each machine. Laura’s Laundromat growth objectives for years 2009 and 2010. Laura’s Laundromat will be implementing the smart card technology that allows customers to purchase a vending card that can be used for all equipment located within the store. safe and reliable store at a cost less than or equal to its competitors.0 Executive Summary Laura’s Laundromat is a startup laundromat that will target a customer base of low to middle income renters or owners. 2009.  2009-10 – Stabilize costs while extending customer base to maximize profits. 1. Open for business by November 1.2 Mission Laura’s Laundromat will be the leader in the self-laundry business by providing a clean.1 Objectives Laura’s Laundromat objectives for 2009:      Secure financing by the end of April Incorporate to an LLC by Build and install equipment in the store by the end of October 2009. along with satisfying the customers needs and costs objectives. we will provide free Wi-Fi 3 . Laura’s Laundromat will provide a safe and secure children’s play area so our customers can have a place for their children to play while they take care of their laundry.1. Laura’s Laundromat will also be environmentally conscious by installing high efficiency washers that use less than 50% of the water and detergent than most conventional washers. the ability to change prices throughout the day in various increments and as a marketing tool to bring customers back each week since they will still have a credit value on their card. Laura’s Laundromat will differ from the conventional “coin-op” laundry by implementing the newest technologies available in the laundry industry. Achieve profitability by the end of December 2009. 1.

4 . The most innovative feature of Laura’s Laundromat will be two exercise machines for those who would like to exercise while their laundry is being cleaned.1 Company Ownership Laura Ridley will be the sole owner of Laura’s Laundromat. Mrs. marketing. disciplined pattern of growth.  To make laundry a social event.0 Company Summary Laura’s Laundromat is a family owned and operated company that provides self-laundry services targeting low to middle income renters or home owners.3 Keys to Success As a start-up company new to the area. By implementing the smart card system it will eliminate the need for our customers to carry change around with them to do their laundry and create return customers to utilize their smart card. 1. Laura’s Laundromat will be a community friendly establishment that is friendly to the environment.  Provide signage in English and Spanish. and introducing new technologies.  New features such as Wi-Fi and exercise equipment which allows one to multi-task. yet technologically innovated in its approach to securing a consistent customer base.  Maintain a steady. and customer service will be an asset to this business. 2.  Minimize wait times for equipment. 2. Her experience in sales. we must be focused and work hard to create acceptance for ourselves and our services within the marketplace. Ridley is currently a homemaker and an Independent Distributor for Shaklee Corporation. The keys to our success are:  Provide a clean and safe In this.  Provide competitive pricing. not a drudgery.

Czech Hall Road.0 miles from the nearest competitor to the south.000 $3.000 $1.142.000 $4. A conventional loan will be used for the remainder of the costs. Ridley will be responsible for making the monthly payments each month.000 $4.000 $10.000 $4.500 $3. The City of Oklahoma City for water.2 Start-up Summary Startup cost have been estimated and budgeted at $125.500 $5. (See table 2A).500 $242.500 $3.500 $5.000 $900. Cox Communications for cable and AT&T for phone and internet service.500 $5. sewer and garbage. Expenses Construction Sub totals Equipment Total Estimated Amount $365.000 $4.000 $3. Oklahoma Natural Gas for natural gas.000 $500. Yukon.000 $500. Laura’s Laundromat will be located approximately 3. 5 .3 Location Laura’s Laundromat’s office will be located at 403 S.0 miles from nearest competitor to the north and 6. Oklahoma.142.000 $900. Table 2A Land Furniture Security Cameras Personal Computer 5 TV’s with mounts Exercise Equipment Vending Machine Misc.500 2.000 $10.000 $1.500 $242. Utilities will be provided as follows: Oklahoma Gas & Electric for all electric.500 Budget Amount $365.000.2. More about competitors and their stores are described later in detail. The location of the store is essential to acquiring the target customer base of low to middle income renters and home owners since it is located in an area that has a heavy concentration of apartment complexes.500 $5. Mrs. Investors will be sought to provide the startup cost for land acquisition and building construction.

The store is approximately 1000 square feet and consists of (5) 40 lbs washing machines. It is a smaller and older Laundromat. one 40 lbs. The facilities and equipment are dated. Services offered are wash dry fold.1 Permits Laura’s Laundromat will acquire a vendor’s license.Laundry soap dispenser  1 – Large cork board for customer postings  1 .PC for power point ads and security recording  1.DVR system  1 .0 Local Competition Epperson Laundry at 361 N. There is no children’s play area. no vending machines 6 . Mustang. Oklahoma and is located approximately three miles to the north. and 17 dryers. television or entertainment of any type.Elliptical Machine See (distributor’s equipment list) attachment for model numbers and prices for several of the major items noted above. The Laundromat is not well kept and at any given time there are several machines out of order. dry cleaning and alterations. Facilities and equipment are dated. and one 50 lbs washing machine. 8 large capacity dryers and 23 smaller dryers. 3. and a letter of acceptable use for the location in question. There is no children’s play area. 26 top loading machines.3. one 30 lbs. Equipment consists of 24 top load washers.Treadmill Exercise Machine  1.0 Equipment Laura’s Laundromat will install the following equipment:  3– 40” flat panel TVs  2 – 32” TV for power point advertisement/entertainment  1 – 32” TV in the children’s play area  1 – Netmaster smart card system  1 . sign permit. OK is approximately six miles to the south.Snack machine and soda machine  1 . 4. Highland Center is located at the corner of Vandament and Holly Ave in Yukon. It is approximately 1000 square feet. Mustang Road.

and at a predetermined time. Laura’s Laundromat will add a bonus of $2.  Bonus Dollars – If a customer adds value to their card. Example: If the customer adds $20.and no TV or entertainment of any type. This way you could run afternoon specials and actually set the price in advance.0 Marketing / Advertising / Operations Laura’s Laundromat will be utilizing various marketing and advertising methods to draw in new customers and to retain them. or by losing customers with higher increases. To do this on a traditional coin-op system would take hours to change the prices in a store. Customers will be more determined to return next week to use up the remaining credit or add value to their card to finish the current week of laundry. the owner could only go up or down in $. Personal services offered are wash.25 increments. This will be extremely helpful in off setting variable utility costs by being able to raise or lower prices at any time without having to touch the actual machines. All of the specials will spread the customer base from the peak hours to the off peak hours.00 to their card. Therefore. With the older quarter systems. Laura’s Laundromat will be implementing the Smart Card system that distributes a credit card to the customer that can be used through out the store on all washing machines and dryers. either cutting his profits. Instant coupons! 7 .00 to the card giving the customer a total of $22.01 increments instead of the normal $. dry. chances are they will still have credit on their card (since we will be charging odd amounts).  Timely pricing – Since the card system is networked. Card Advantages:  Less coin transactions – Money is collected less often and can be done in minutes rather than hours.  Card System: Instead of using quarter’s through out the store. 5.  Variable pricing – All vending prices can be increased in as little as $. sales and specials can be preprogrammed. Laura’s Laundromat can give a bonus credit if they add a specified amount to their card.00.25. and fold.  Customer loyalty – When a customer leaves the store.

 Giveaways –Laura’s Laundromat will give away various items each month for the first several months.  Customer Training – By educating the customer on the efficiency of the new Speed Queen equipment. they will return to Laura’s Laundromat each week knowing that they will be getting the best service available for their money. Placards will be placed in various locations explaining the cost efficiency of using the equipment at Laura’s Laundromat. One 40” flat panel TV will be located in the exercise area also broadcasting various shows. This TV will broadcast various shows. The Mustang Times.  Children’s Entertainment: One 32” flat panel TV will be inset in the wall of the children’s play area with protective Plexiglas covering the screen.  Local Newspaper – Advertisements will run weekly for the first month. 8 .  Advertisement: One 32” Flat panel TV will be placed in the entertainment area (no sound) and will be used for Power Point presentations to advertise Laura’s Laundromat’s specials and also for other local business advertisements. and The Yukon Review. In three separate newspapers: The Mustang News.  Customer bulletin board: Laura’s Laundromat will hang a bulletin board so customers can post advertisements for free.00 dollars per month for this advertisement.  Entertainment: One 40” flat panel TV will be placed in the entertainment area. Local businesses may be asked to place a flyer for Laura’s Laundromat in their establishment in exchange for the Power Point advertisement. We will charge $50.00 to $100. Another 40” flat panel TV will be placed above the washing machines. Additional features include:  Vending: There will be one soda machine and one candy machine. This TV will be attached to a DVD player in the office to play children’s programming.

9 . Clean store –Laura’s Laundromat will be maintained at a minimum of twice a day. Laura’s Laundromat will use recycled materials during construction when available to make the building as environmentally friendly as possible.  Equipment: Laura’s Laundromat will utilize the tank less. The hours may be adjusted to meet demand. One camera will be dedicated to record anyone who comes in the front door. The bathroom will have fixtures that will operate automatically to keep the bathroom as clean as possible. Please see the attached floor plan.  Safety – To deter vandalism and fraud. This eliminates the need to keep large amounts of water heated at all times. This system combined with the water saving front loaders will save money on natural gas as well as water. including additional seating through out the store. There will also be a number of folding tables located near drying areas. This system will heat only what water is needed at the time.  Seating –Laura’s Laundromat will furnish two round tables with chairs in the entertainment area. Laura’s Laundromat will have an attendant on duty at all times. Various cameras will be placed in positions to give the best possible coverage of the entire store.  Hours – Laura’s Laundromat will be open from 8:00 am until 9:00 pm Monday thru Saturday and 10:00 am to 7:00 pm on Sunday. It also eliminates the need for a continuous pilot light. Laura’s Laundromat will be equipped with the newest video technologies available. 6. or instant hot water system.0 Store Layout Laura’s Laundromat was designed to promote safety and efficiency. 7.0 Demographics A demographic study has been completed and is available with this business plan.

10 .0 Additional Income Source The $500. even during economic downturns.00 per square feet. At a price of $9. no receivables.0 Monthly Projected Pro forma Please see attached Projected Pro forma.  A service that is always needed. 12. then the investor will receive 20% of the net profit for the remainder of the business partnership.000 construction price includes an additional 4500 square feet of space to be leased as retail space to other vendors. which is comparable with other retail property in the area. 9.00 income per month.8. this will add an additional $3375.  Cash only business.0 Investor Return The investor will receive 10% of the net profit until the equipment loan is paid off. 10.0 Attachments  Distributor’s equipment list  Laura’s Laundromat floor plans  Monthly Projected Pro forma 11. At that time the investor will receive 15% of the net profit until the construction loan is paid off.0 Industry Summary A few points about the laundry business:  No inventories to maintain.