Clean and Friendly Laundromat Business plan presentation

Mission Statement Clean and Friendly Laundromat will build a reputation as a clean, safe, reliable and efficient laundry environment that will attract and maintain customer loyalty

Industry History The laundry industry is considered a mature market There are few distinctions in the industry from facility to facility Often the owners are “absentee owners” Facilities can either be staffed or unstaffed – low payroll obligations The laundry industry is a service industry by which the customer provides all labor - excluding facility maintenance Even facilities with absentee owners could see a profit because the business fulfills a basic need – recession proof Investments in the laundry industry can net returns of 40%, higher than most industries Recent years has seen changes to make customers feel more comfortable and make the facilities more aesthetically appealing Updated more energy efficient equipment Wash and fold drop off service Clean and spacious facilities Staffed facilities Other amenities for customer pleasure such as TV's, music, and vending machines

Market Summary Target market is low to mid income families and individuals Residents of East New York Brooklyn Apartment dwellers lacking laundry equipment in house or on premises Home renters lacking laundry equipment in house, in need of large machines for bulk items, busy families in need of drop off service Home owners lacking laundry equipment in house, in need of large machines for bulk items, busy families in need of drop off service 72% of Brooklyn residents are renters Even families/individuals with in house laundry equipment are increasingly opting for the ease and efficiency of Laundromats

Business Concept Our plan is to maximize and expand on the current facility which will include updates to the facility to enhance the customer experience 29 washers, 30 dryers and daily drop off service Upgrade to a money card system Valuable amenities for customers such as free coffee, Wi-Fi connectivity, televisions w/cable, vending machines, ample folding space and seating Laundry cleaning products sold at a discount price Excellent customer service A clean, spacious and well lit facility

Opportunities The biggest problem customers face at a laundry facility is a lack of available machines Another problem customers face is a lack of customer service if and when they encounter a problem at the facility A money card system can electronically fix problems quickly and efficiently The square footage and number of washers and dryers eliminates wait times for customers A well trained staff and hands on owner means customers will receive immediate attention A good repair service contract along with repair and maintenance training received by the owner will diminish down time for machines

Competition Competitive Advantage Our nearest competition consists of three facilities all within a mile Two of these facilities are less than 2000 square feet They each have machinery that is either outdated or in disrepair Those facilities are run and owned by absentee owners, sometimes without any staff They are all traditional “Coin-Operated” facilities Competitive Advantage Our square footage and updated machinery will give our customers the efficiency of “in and out service” We will upgrade our machines to a money card system for pricing and accounting simplifications The facility will be fully staffed The owner will be completely hands on in order to efficiently handle any issues that may arise including being trained in repair and maintenance of the equipment

Goals and Objectives With the implemented updates we will attract additional customers to add to the already steady market base We will increase the self service wash and dry as well as the drop off service by 15% in year 1 The 15% increase for those services will be maintained in subsequent years by use of advertising, surveys and customer incentives

The Team Clean and Friendly Laundromat will be owned and operated by Clarissa David Clarissa David has over 15 years of experience in the field of Accounting including seven years in management Extensive research has been conducted and subscriptions to several trade publications on the industry have been obtained Membership to the Coin Laundry Association will soon follow The facility will be staffed during all working hours by three part time employees

Financial Plan Our washing, drying and drop off service prices will be on par with the competition at approximately $0.70 per pound The washing and drying prices will be as follows: 18 lb front load washer $1.75 20 lb front load washer $2.00 35lb front load washer $3.25 Dryer $0.25 per 10 minutes The sale of laundry cleaning products will comparable to large discount/retail chains such as Target which is approximately five miles away Sales from vending machines will be supplied by and profits split 40/60 with vending companies

Financial ProForma of Current Owner REVENUE COIN $13,610 DROP OFF SERVICE $2,580 SODA MACHINE $400 SNACK VENDING MACHINE $190 VIDEO GAMES $100 INTERNET $90 TOTAL INCOME $16,970 EXPENSES RENT $4,150 REAL ESTATE TAX $167 GAS $2,200 ELECTRIC $1,050 WATER $934 INSURANCE $375 GARBAGE $94 TELEPHONE $86 PARTS/REPAIRS $310 SOAP SUPPLIES $220 TOTAL EXPENSES $9,586 NET PROFITS $7,384

Projected ProForma for Clean and Friendly Laundromat REVENUE COIN $15,652 DROP OFF SERVICE $2,967 SODA MACHINE $460 SNACK VENDING MACHINE $219 VIDEO GAMES $115 TOTAL INCOME $19,412 EXPENSES RENT $4,150 REAL ESTATE TAX $167 GAS $2,200 ELECTRIC $1,050 WATER $934 INSURANCE $375 GARBAGE $94 TELEPHONE $86 PARTS/REPAIRS $310 PAYROLL $2,910 LOAN PAYMENT $3,547 SOAP SUPPLIES $220 TOTAL EXPENSES $16,043 NET PROFITS $3,369 **Includes Loan Pay Back

Funding Requirements CONSTRUCTION REMODELING $0 COST OF EXISTING LAUNDRY BUSINESS $250,000 RENOVATIONS $3,100 DUES AND LITERATURE $400 WASHER HOOK UP FEES $0 BUSINESS LICENSES/PERMITS $0 ADVERTISING/GRAND OPENING $500 LAUNDRY EQUIPMENT – WASHERS $0 LAUNDRY EQUIPMENT – DRYERS $0 CARD SYSTEM $60,000 WATER HEATING SYSTEM $0 SOAP DISPENSER $0 LAUNDRY CARTS $0 LAUNDRY SCALE $0 CASH REGISTER $0 CHANGE MACHINE $0 OFFICE EQUIPMENT $300 PHONE INSTALLATION $0 TELEVISIONS $800 VIDEO SECURITY SYSTEM $0 LEGAL AND ACCOUNTING FEES $450 PREPAID INSURANCE $300 RENT $4,150 RESERVE FOR CONTIGENCIES $10,000 TOTAL START UP COSTS $330,000

Risks and Rewards Weaknesses Risks Strengths Rewards Rival Laundromats nearby Possibility of new Laundromats Failure to attract new customers Risks Failure to repay loan at an accelerated rate Diminished net profit until loan repayments Strengths Dedicated owner Clear business strategy Clear marketing strategy Training from previous owner Industry association membership Business fulfills a basic need – steady cash flow Rewards Loan repayment in advance of end date Increased market share/net profit Possibility for additional facilities

Key Issues Near term Long term Upgrade equipment technology Complete cosmetic updates to the facility Grand opening advertising Hire and staff for the facility Postponing any of the above near term goals would affect the attraction of new customers Long term Maintain employee training and customer satisfaction Maintain equipment repair and maintenance contracts as well as owner equipment repair training Allowing any of the above areas to fall short will reduce repeat business and sales