Washing clothes is a necessity of life. People want their clothes to always be clean, which is why you always find demand for projects such as a laundry business.

Not everyone has a washer and dryer, or the time or desire to do their own laundry, which makes starting a laundry business a great option for budding entrepreneurs.

Of course, all of this sounds good in theory, but what does it take to open a laundry like this? If you are wondering how to start this kind of business, this article is for you.

We will talk about the critical first steps you need to take in order to start your own business.

Although you probably aim to open your laundry project as soon as possible, it is still better to take enough time to plan and prepare for it in order to guarantee yourself a successful start.

11 crucial steps for opening a laundry business:

Develop an action plan:

Before starting a laundry business, you need to draw up a comprehensive business plan that includes an analysis of the target market, knowledge of what is the return for a laundry of this type, financial expectations for the project, and the target customer base.

The market analysis should include research on the size of the market and the demographics that your business is targeting. Financial projections should also include estimates of start-up costs, operating expenses, and projected revenues. The outline of the target customer base should include information about demographics (will your project be directed to everyone, or will it be aimed at women only), income levels, and their laundry habits.

Create a feasibility study:

A feasibility study is an important step in any business. It is a detailed analysis that is done before making any major investment, whether it be time or money. The feasibility study should include the following elements:

  • Technical feasibility: This includes evaluating the availability and cost of equipment, and the availability of a suitable site and infrastructure for your project.
  • Financial feasibility: In it, start-up costs, operating expenses, and expected revenues are estimated. It also includes an analysis of the potential return on investment and the break-even point for your project.
  • Operational feasibility: This includes evaluating the resources and processes needed to manage the work on the project, such as staffing, inventory management, and customer service.
  • Legal and organizational feasibility: In it, the legislative and regulatory laws and regulations related to opening a laundry project in your area are examined, including building division laws, safety regulations, and labor laws.

Obtaining sufficient financing:

Once you have a business plan and a solid feasibility study in place, you will need to secure financing to start your own laundry business. This could be a small business loan, or an investment of your personal savings. Just be sure to carefully review the terms and conditions of any loan or financing before signing anything.


Finding the right location is crucial to your project. Find a location that is easily accessible and has heavy footfall. Consider factors such as parking availability, field of view and the surrounding area. This type of project is often more common in areas where there are a lot of apartment buildings, or in areas where people don’t necessarily have their own washing machines (such as dorm areas, for example).

Equipment purchase:

Determine what type of equipment you need based on the services you plan to provide. This may include washers, dryers, ironing equipment and foldable tables. Research different brands and models, until you find the one that best meets your needs and budget.

Hiring staff:

You will need employees who will handle tasks such as sorting laundry, operating equipment, and serving customers. So be sure to review the laws and regulations related to the recruitment process in your area.

Marketing for your project:

Create a website and social media accounts to promote your project. Make sure to use keywords that will help your business appear in search engine results. It is also possible to place advertisements in local newspapers, or road advertisements.

Processing systems:

This includes point of sale, inventory management, and schedules. You will also need to define procedures to be followed to handle customer complaints and disputes between employees.

Opening your laundry business:

Once you have your equipment installed and your staff trained, you can open the doors of your business to the public. But before that, do an informal — test — opening to identify kinks, unexpected hurdles, and ways to overcome them before the formal opening.

Improve service and perform maintenance operations:

Continuously improve your service and customer experience by answering their questions and listening to their suggestions. Maintain and update your equipment, and consider expanding your services over time.

Keep track of your business records

It is important to keep accurate records of all financial transactions for your business, so that you can keep track of your expenses and income. You should also prepare financial statements such as balance sheets and income statements.

Why is Al Raedah the best source of financing for your laundry business?

Al Raedah Company’s programs to support small and medium enterprises that contribute to strengthening the national economy come with the provision of financial liquidity, to enhance the opportunities for these enterprises to develop their business through a set of carefully designed programs, including:

  • Innovative digital financial solutions that integrate human experience with technology.
  • All solutions are licensed by the Sharia Board.
  • Fast financing, once you complete the required documents, you can receive the financing within 5 working days.
  • We understand the financial challenges that organizations face, and we always strive to solve them with flexibility and ease.
  • We provide you with support to grow your business wherever you are in the Kingdom of Saudi Arabia, through one of the many financing options.
  • Flexible payment mechanism by deducting payments, without fixed monthly installments; In order not to hinder you from continuing to develop your business.
  • We require fewer documents than any other competitor.
  • We offer technical financing solutions without complicated financial lists.
  • Get the liquidity your project needs without providing any guarantees.
  • You can submit your application to the company online.

Disadvantages of a laundry project

High startup costs

Starting a laundry business can be expensive because you will have to buy equipment, rent or buy a location, and hire employees. This can make it difficult for you to get off the ground with your business.


With so many well-established competitors in this field, it can be difficult for any new laundry business to attract customers and generate revenue.

Maintenance and repair costs

Maintenance and repair of laundry equipment can be expensive. As an employer, you will find yourself needing to budget for regular maintenance and repairs to make sure that your equipment is running efficiently.

Labor costs

This project requires a lot of labor, in addition to a lot of work in order to be managed effectively. This can be tiring and can also be challenging in finding and retaining employees.

Environmental concerns

Washing operations can have a significant impact on the environment, particularly in terms of water and energy use. As an employer, you must be mindful of these concerns and take steps to reduce the impact of your work on your environment.

Limited scalability

It can be difficult to scale your business because it is often site-dependent and may require large investments in equipment and personnel to scale.

Seasonal fluctuations

Laundry businesses can experience fluctuations in demand depending on the season and weather, which can affect revenue and profitability.

Length of working hours

The working day of laundry shops is often long, especially in peak seasons, which can put a lot of pressure on the employees and the employer himself.

It is important to consider these drawbacks carefully and ensure that you have a solid plan in place to mitigate the risks and challenges that you may face while planning your laundry project.

Conditions for opening a laundry shop

  • Obtain the necessary permits and permissions.
  • It is better if the laundry is on the ground floor, away from hotels and shops.
  • The area of the facility must be suitable for the project and the necessary equipment.
  • The facility should be far from hospitals.
  • The customer reception section must be different from the laundry location.
  • The facility should be well ventilated, and the temperature should not exceed 25 degrees Celsius.

Types of very fast financing solutions and loans offered by leading companies

Point of sale financing program at Al Raedah Company:

Al Raedah Company launched a POS financing program to help owners of small and medium businesses aspiring to enhance, develop and expand their business by obtaining flexible financing in record time. We have designed a flexible and smooth program for them that helps them achieve their aspirations without any periodic monthly installments.

The financing amount for unsecured facilities starts from 50,000 Saudi Riyals to 1,500,000 Saudi Riyals. As for secured facilities, we offer more financing on a case-by-case basis. 

Financing may be up to 21% of annual POS sales with a repayment period of up to one year, or up to 38% of annual POS sales with a repayment period of up to two years, or up to 50% of annual POS sales with a repayment period of up to three years.

  • This financing program does not require a guarantor or monthly installments.
  • The method of payment is daily through points of sale.
  • You must have had POS terminals for at least three months.
  • The annual percentage rate ranges from 14%-78%.
  • One-time fixed administrative fee of 1.5% (at least 5,000) Saudi riyals.
  • A value added tax of 15% applies.


It is true that starting a laundry business can be challenging, but rewarding at the same time. Don’t forget that it requires a significant investment of time and money, as well as a thorough understanding of the market, industry, equipment and processes needed.

As a business owner, you should expect the costs of starting a laundry business to be high, in addition to the costs of regular maintenance and repairs.

Because our goal in AlRaedah Finance is to support small and medium enterprises and provide them with urgent financial liquidity without a guarantor or exaggerated guarantees, we are keen to provide facilities that help our customers develop their businesses as quickly as possible.

We have carefully designed technical financing solutions to provide them with the financing they need in a simple way. and smooth, with the least possible paperwork and documents. So what are you waiting for? Apply now.