Start a Self-Service Laundry: How Much Initial Capital Is Required?
While the prospect of owning a self-service laundry business is undoubtedly appealing, one critical question often looms large: What is the capital required to kickstart such a venture?
In this comprehensive guide, we’ll delve into the intricacies of starting a self-service laundry business, including the essential equipment, operational costs, and potential overheads. By the end of this article, you’ll have a clear understanding of the capital investment needed to embark on this entrepreneurial journey.
It is common to spend between RM250,000 and RM500,000 to open a coin laundry shop. The final cost depends on several factors, like machines, quantity, size, and brand will result in different price points.
The figure listed is a mere estimate for your reference. You could get a lower or higher figure based on various requirements and factors. With that in mind, let us look at the following costs.
1. Business Registration
Register your business with the Companies Commission of Malaysia (SSM) to establish its legal entity. Choose a suitable business structure, whether it’s a sole proprietorship, partnership, or private limited company, based on your preferences and long-term goals.
If you go for Sdn Bhd incorporation, it will usually cost RM1,000, which is more expensive than a sole proprietorship. As for sole proprietorship, it is a small figure of RM30 – RM100 to set up.
2. Premise License
All types of businesses in Malaysia require premise licenses to operate. Obtain essential licenses from local authorities to operate legally. Budget around RM600 annually for application fees, ensuring compliance and avoiding potential penalties.
3. Signboard
Capture attention and reinforce your brand identity with eye-catching signage and wallpaper stickers. Allocate funds for the design, printing, and installation of signage to elevate your business presence. You may need to spend RM5,000 to get the signboard and some wall decoration done.
4. Gas License
Secure a gas license from Suruhanjaya Tenaga for drying machines, with costs around RM200. Factor in additional expenses for periodic pressure tests to maintain regulatory compliance.
5. Insurance
Protect your business against unforeseen risks and liabilities by investing in comprehensive insurance coverage. Consider policies such as property insurance, liability insurance, and worker’s compensation to safeguard your assets and provide peace of mind. (Premiums starting from RM1,500 per year.)
6. Laundry Machines
Invest in high-quality laundry machines, including washers and dryers, to deliver efficient and reliable service to your customers. Choose equipment that aligns with your business’s capacity and operational needs while prioritizing energy efficiency and durability.
Depending on the scale, expect to allocate between RM35,000 to RM105,500 for a basic setup, with additional costs for installation and delivery.
7. Renovation
Transform your space into a functional laundry hub with a budget of approximately RM40,000 for essential renovations, including infrastructure, utilities, and safety features.
Besides, you may need to build a gas room which can cost you another RM15,000.
8. Rental
If you are renting a shop, other than your monthly rent, you have to pay an extra rental deposit (2 +1) beforehand. So let’s say your rental is RM3,000, then the deposit is RM9,000.
9. Additional Features
Equip your shop with essential amenities such as tables, benches, trash bins, and cleaning supplies, with an estimated spending of RM1,000 to ensure a seamless customer experience. You can also enhance customer experience with value-added amenities such as vending machines, seating areas, and Wi-Fi connectivity.
Embarking on a self-service laundry business journey in Malaysia requires meticulous planning and a solid financial foundation. By understanding the capital essentials and addressing key components such as licensing, equipment procurement, and facility setup, you can pave the way for a successful venture.
As you navigate through the complexities of entrepreneurship, remember that professional guidance and support are invaluable. Our team of experienced consultants is here to assist you every step of the way, from initial planning to operational optimization.
Ready to turn your vision into reality? Contact us today