Page 60 - Clean India Journal - Sept 2023 Digital Edition

Laundry

The 8-point approach to

business growth

What should anyone looking to enter into and expand
their existing laundry business keep in mind before

investing in expansion? Arunabh Sinha, Founder &
CEO, UClean condenses his vast experience into clear
and concise points for everyone to follow.

Solid business model • Scalability: Do you foresee in place, you will be able
to build a model that can
Before diving into yourself launching 10 blitzscale.
laundromats in 10 different
franchising, it’s crucial to cities on the same day at
ensure that your existing some point of time in your • Market demand: Laundry
laundry business has a solid journey? This will be a by nature is an extremely
and proven business model, true measure of a scalable hyperlocal business. Hence,
for which the following factors demand assessment also
should be evaluated: laundromat business. It needs to happen hyper
will need a tremendous
locally – within 3 kms of
• Profitability: In simple amount of automation the place where you want
words, Profitability = in terms of technology, to set up the laundromat.
Revenues – Expenses. How manpower management Figure out the number of
quickly can your business and razor-sharp execution families that live in the
become profitable? If capabilities. As a brand, neighbourhood – there
the business is taking you will have to set up should be at least 5,000
significantly long to families within that radius.
become profitable, it SOPs and systems in
will frustrate potential the back end to be able Are there also B2B clients
franchisees. While to execute something of in the vicinity? An accurate
evaluating profitability, also this nature but once it is estimation of the number of
evaluate how much time
it will take the profits to
cover the initial investment.
For a laundromat business
that can be set up in ₹20
lakhs, it should not take
more than 24 months.
• Operational efficiency:
For a laundry business, this
translates into how many
cycles you run per day vs
how much is theoretically
possible. An operational
efficiency >70% is good
and something that the
franchise should also gun
for. This will also translate
into anywhere between 25%
to 30% profitability, which is
attractive for the franchisees.

SEPTEMBER 2023•Clean India Journal
60 www.cleanindiajournal.com