How Much Money Do You Need to Start a Laundry Business

How Much Money Do You Need to Start a Laundry Business

Most Filipinos are now more focused on their careers and own businesses that they would rather pay for laundry services instead of wasting their time washing and rinsing a bunch of dirty clothes. This new Filipino way of life paved for laundry businesses to flourish in almost all parts of the metro. The demand for laundry services if undeniably high so GoBear has come up with an educated evaluation of how much money you need to prepare if you plan to establish a laundry service deal.


•    Laundry equipment – Most washing machines used in this type of trade are not ordinary automatic washers. Dryers and washers are fused in one equipment to provide full laundry services and endure more than five hours of use in a day. You can buy traditional appliances from Php20,000 while modern ones with a card or coin features are sold from Php50,000. 

Some packages range from Php 500,000 which includes three sets of stackable dryer and washer which provides setup and renovation services.

•    Business Permit – Budding entrepreneurs in the country need to face legal and bureaucratic fees associated with business set-up costs. You might need to set aside around Php40,000 for securing the business permit, again depending on the type of activity and your business location. Mayor’s permit alone can cost around Php12,000 to be paid upon submission of the business transaction form. Other expenses include Certificate of Registration and TIN to be applied from the Bureau of Internal Revenue.


•    Rental Costs – You can save on rental fees if you have your space to renovate. However, those who are planning to rent, you might want to allot around Php25,000 monthly rental. Most landlords require two months’ deposit and one-month advance cash payment and checks for the remaining months. Initially, rental fees cost up to Php75,000-Php150,000.

•    Renovation Fees – A laundry business space needs to have the right plumbing system for water supply to be generated and flushed out systematically. It should also provide proper ventilation and waiting area for customers to comfortably sit and wait for their laundry to be done. You can spend around Php200,000 for renovation costs including a provision of a unique plumbing and electrical wiring structure.

•    Salaries of employees – Ideally, you can hire one cashier, one staff for delivery and assistance, and one driver. But if you want a self-service laundry business, then one staff will be enough for the first three to six months of operation. As the firm grows, you can gradually add personnel depending on the demand. The salary of one regular employee is based on the minimum wage rate in the metro which is about Php12,000 for 25 days plus benefits.


•    Monthly bills and taxes – Percentage tax are imposed on businesses with gross annual sales not exceeding Php1.5 million. Percentage tax is usually equal to 3-5% of profits per month. On the other hand, monthly bills highly depend on the business. For a shop with 5-10 machines and air-conditioning system, electric bills can range from Php20,000 while water bill can sum up to Php15,000 per month.

Building a laundry business is not easy but knowing how much money you need to help you come up with a better plan. The pricing mentioned above are estimates based on research and actual expense may either be higher or lower. Create your business plan and apply for loans from Citibank and other lending institutions. Compare loan packages on and start making your business dream come true.