Starting a laundry pickup and delivery business can be an excellent way to enter the home service industry. With the rise in demand for convenience-based services in 2025, laundry pickup and delivery is becoming a profitable venture with relatively low startup costs.
In this step-by-step guide, we’ll cover the essentials — from legal setup to marketing, so you can hit the ground running and land your first clients quickly.
Step 1: Define Your Business Model
The first step in starting a laundry pickup and delivery business is deciding how you will run the operation. The model you choose will impact your initial investment, the structure of your business, and your overall profit margins.
Business Model Options
- Outsourced Model: This is the leanest option. You handle pickups, deliveries, and customer service while outsourcing the actual laundry work to a local laundromat.
- In-House Model: This requires handling everything yourself — from washing and drying to folding, and delivery. This model typically offers higher profit margins but comes with more operational challenges.
Outsourced Model:
In the outsourced model, you will partner with local laundromats or laundry services to manage the washing, drying, and folding of the laundry. You’ll be responsible for picking up the laundry from your customers, dropping it off for washing, and delivering the cleaned laundry back to the customer.
Pros:
- Low startup costs: You don’t need to purchase expensive laundry equipment.
- Lower time commitment: You focus on customer service, logistics, and marketing.
Cons:
- Lower profit margins: Since you’re paying the laundromat to process the laundry, you won’t have as high of a profit margin.
- Less control: You have to rely on the laundromat to meet customer expectations.
In-House Model:
In the in-house model, you’ll handle all aspects of the laundry process yourself. This includes washing, drying, folding, and ironing if necessary. While this option has higher initial costs due to equipment and supply investments, it offers greater control over quality and the potential for larger profit margins.
Pros:
- Higher profit margins: You keep all of the revenue from each job.
- Control over quality: You ensure the quality of the service, which can be a major selling point.
Cons:
- Higher time commitment: You’ll need to spend time on laundry tasks and manage your equipment.
- Higher initial investment: Purchasing washers, dryers, and other supplies will require more upfront capital.
Recommendation: If you’re just getting started and want to keep things low-risk and simple, the outsourced model might be best. You can always transition to an in-house model once your business gains traction.
Step 2: Handle the Legal Setup
Before you start serving customers, it’s essential to make your business legitimate and compliant with local laws. This will protect you from legal issues and help you scale your business down the line.
1. Choose a Business Structure
You’ll need to decide on the legal structure for your business. The most common structures are:
- Sole Proprietorship: This is the simplest and least expensive structure. You own the business personally, and the business is taxed as part of your personal income.
- LLC (Limited Liability Company): While more expensive and complicated to set up, an LLC protects your personal assets from business liabilities. It also offers more tax flexibility.
Most laundry pickup and delivery businesses opt for an LLC because it provides personal liability protection without the complexity of forming a corporation.
2. Register for a Business License
Every state and city has different requirements for business registration. You may need to:
- Obtain a general business license from your city or county.
- Apply for a home occupation permit if you plan on running the business from your home.
It’s important to check with your local government to understand the specific requirements for home-based businesses in your area.
3. Get an EIN (Employer Identification Number)
An EIN is a unique number assigned to your business by the IRS. It’s used to identify your business for tax purposes. Getting an EIN is free and essential if you’re planning to hire employees or operate as an LLC.
4. Set Up a Business Bank Account
Having a business bank account separates your personal finances from your business finances. It also makes tax filing easier and builds professionalism with your clients.
Step 3: Price Your Services
Pricing your services correctly is crucial to making your business profitable. You want to ensure that you’re charging enough to cover your costs and make a profit, but you also want to remain competitive with local businesses.
Pricing Models
You can choose to charge your customers based on:
- Per bag: The most common model, where customers are charged a flat fee for each bag of laundry picked up.
- Per pound: Some laundry services charge by the weight of the laundry. This can be more profitable for heavy loads but requires a scale to weigh the laundry.
- Subscription pricing: Offer discounts for customers who subscribe to a weekly or bi-weekly service, providing more predictable revenue.
Setting Your Rates
Typical rates for laundry pickup and delivery are:
- Standard laundry load: $25–$45 per bag.
- Wash & fold by weight: $1.50–$2.50 per pound.
- Add-on services (rush orders, stain treatments, etc.): $5–$15.
Most customers will typically order 1–2 bags of laundry per week, but pricing should reflect the level of service, convenience, and quality you’re offering.
If you’re in an area with limited competition, you can charge a bit more, but keep your prices competitive enough to gain your first customers.
Step 4: Get the Right Tools & Supplies
To get started, you don’t need to spend thousands on commercial equipment. Here’s a list of the basic tools you’ll need for a lean startup:
Essential Equipment for In-House Model
| Item | Purpose | Estimated Cost |
|---|---|---|
| Washer/Dryer | Laundry cleaning and drying | $300–$600 (used) |
| Laundry detergent & supplies | Cleaning materials | $100–$200 |
| Laundry baskets | Organizing laundry before/after | $20–$50 |
| Folding table | Folding clothes | $60–$150 |
| Delivery bags | For transportation and delivery | $50–$100 |
Tech Tools for Efficient Operations
| Tool | Purpose | Suggested Option |
|---|---|---|
| Scheduling System | Let customers book online | CleanCloud, Dreezy, Square |
| Payment Processing | Process payments securely | Stripe, Square, Venmo |
| Route Planning Tools | Optimize delivery routes | Circuit, RoadWarrior |
While starting, focus on software that’s free or low-cost to keep expenses low. A simple online booking system and a spreadsheet for tracking orders can work in the beginning.
Step 5: Plan Your Delivery Schedule
Efficient route planning can save you time and money. Here’s how to streamline your deliveries:
Efficient Delivery Tips:
- Batch deliveries by neighborhood or ZIP code: This will minimize your travel time and help you save on fuel costs.
- Use route planning apps: Tools like Circuit or Google Maps can help you plot the most efficient route for pickups and deliveries.
- Offer set days and times: Having customers book at fixed times allows you to better manage your schedule.
While it might seem tempting to serve all over town, focusing on a specific area initially will help you build a reputation and gain loyal customers.
Step 6: Market Your Launch Locally
To attract your first customers, focus on hyper-local marketing strategies. You want to be known in your community before branching out to larger areas.
Marketing Methods
- Google Business Profile: A free and powerful tool to show up on Google Search and Google Maps. Make sure to update it with your business hours, services, and location.
- Social Media: Leverage platforms like Instagram, Facebook, and Nextdoor to post about your new service. Offer promotions like 10% off for new customers.
- Flyers & Direct Mail: Target local apartment complexes and neighborhoods with no on-site laundry services. Leave flyers or door hangers at high-traffic areas like gyms or cafes.
Step 7: Launch Week Checklist
Here’s your actionable launch checklist to make sure you’re set for success:
| Task | ✅ |
|---|---|
| Finalize your website and booking system | ✅ |
| Set up Google Business Profile | ✅ |
| Prepare flyers and local promotions | ✅ |
| Post on local social media groups | ✅ |
| Offer a special launch discount (10–15% off) | ✅ |
| Collect testimonials from first clients | ✅ |
Ensure everything is ready to go a few days before launching. Soft launch with a small group of friends or family to work out any kinks.
Legal Disclaimer
This article is for informational purposes only and does not constitute legal, financial, or tax advice. Always consult with a certified attorney, accountant, or small business advisor in your area to ensure compliance with all local laws before launching your business.
Are YOU Ready to Launch?
Starting a laundry pickup and delivery business doesn’t require a lot of upfront investment or complex logistics. By following this step-by-step guide, you can launch your service with a minimal budget, attract customers quickly, and scale as your business grows.
Start small, focus on delivering exceptional service, and watch your customer base grow. With dedication and smart marketing, your laundry pickup and delivery business can become a highly profitable venture.
To learn more on how to start your own laundry pickup and delivery business check out our completely free guide and newsletter here.
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