Are you thinking about starting your own laundry business? You can either build your business from scratch or buy into a franchise. There are pros and cons to each approach.
Here are the main factors to consider before making your decision:
1. Cost
A franchise usually comes with a standard operational system that you can implement immediately. The franchisor may also offer marketing support. These perks involve a higher initial investment compared to a start-up. Start-ups may have a lower initial cost, but it requires more work as youare building everything from ground up.
2. Risk
Franchisors provide marketing support, staff training and ongoing guidance to help franchisees succeed. Start-up laundry business owners will have to do everything on their own. This can be overwhelming especially for first-time entrepreneurs. It is therefore not surprising that start-ups have a higher risk of failure of 25% in their first year.
3. Control
If you value creative freedom above everything else, then start-up is the way to go. For a start-up, you do not need to follow the guidelines, regulations, structured system and established policies set by the franchisor. You would have more flexibility and control over your laundry business.
4. Recognition
One advantage of a franchise is its brand value. A franchise typically features a well-established and instantly recognisable brand. That way, you can hit the ground running with a franchise laundry business. This is not the case for a start-up. It takes time and effort to build brand awareness from scratch for your start-up business.
5. Revenue
A franchise with an existing customer base and proven revenue model may promise lucrative returns. However, you need to factor in the royalties and other fees due to the franchisor. With that in mind, a well-managed start-up laundry business has the potential for higher profits in the long run.
The final decision lies in your personal preferences and priorities. It is wise to weigh the pros and cons based on your risk profile, investment strength, industry experience, business capabilities and long-term goals. You can also consult PLE Laundry Equipment Sdn. Bhd., Asia’s no. 1 coin laundry distributor with decades of industry experience. Contact us at 016-262 2965 or 03-5633 6405 to start your entrepreneurial journey now.
