Dry Cleaning Insurance: Steps to Starting a Business
Last week, we discussed some methods of financing a laundry business, mentioning how the first thing these types of business owners need to keep in mind is how they will finance their business to begin with. The same methods apply to dry cleaners. In the post, we explored how negotiating a lease was an important component of this process. We also know that financial protection with a Dry Cleaning Insurance policy is imperative, but what should aspiring Laundromat or dry cleaning owners do before they even get to these steps?
Experts recommend studying the industry by working at a dry cleaner for up to a year before venturing out to open a new facility. It is believed that this will allow these aspiring business owners to gain the experience they need, and will also introduce them to what they need and don’t need to purchase. It could even be wise for aspiring dry cleaner owners to consider a franchise, as there are many reputable franchisees that provide comprehensive training and equipment as part of a franchise agreement.
In addition to actually working the field, dry cleaners should conduct market research; determining how many competitors are in their market, what they offer, and what they charge for their services. Checking with the Census Bureau to determine population of the area they want to serve is also an important step; to determine the size of their potential customer base.
The steps outlined above are nothing without a strong business plan that details costs, cash flow, laundry and dry cleaning equipment maintenance provisions, and all other business concerns. Aspiring dry cleaner owners will need a strong and well-documented business plan to obtain a business loan and get their business off the ground. These are not the only steps dry cleaners need to take, either; they should contact state and local officials for proper business and building permits, strategically select their location, and only purchase equipment from a reputable dealer.
At Irving Weber Associates, Inc. we understand the challenges that laundry and dry cleaning business owners face. Through our FabriCare Advantage program, we protect Dry Cleaners with broad Dry Cleaning Insurance coverage, experienced risk control, as well as educational resources and unparalleled responsive claims service. Please contact us today for more information.