Lack of planning remains a principal cause of business stagnation and failure. Although every laundry owner plans in some way, shape or form, those who take the time and effort to develop a detailed, carefully researched, and well formulated and thought out business plan and use it to guide their business can increase their chances of success.
Business plans are no longer only being used when buying and selling stores. They are now commonly being used as a day-to-day business guide to keep a store in line as it attains its goals and successfully carries out its mission. A well-prepared business plan not only serves as a document for use in monitoring current financial position, but also provides non-financial information vital to making decisions about a laundry’s performance and growth.

The plan should present a clear picture of the store that can be used in these critical areas.

Elements of a Business Plan

1. Guidance. A well prepared and thought out business plan furnishes data that indicates what might lie ahead, allowing the owners to work with foresight rather than hindsight. In effect, it serves as a road map that details the starting point, direction, and destination of the business. By indicating deviations between the expected, and actual results, a business plan documents the operating effectiveness of the store, which in turn helps the owner to establish future performance goals.
2. Control. When a problem or crisis arises, information contained in the business plan is an invaluable tool for developing contingency strategies and monitoring their implementation. The profile details company strengths and weaknesses as well as threats and opportunities. Objectives are also clearly defined and stated. By relying on the business plan in a crisis situation, the owner should save valuable time that would have otherwise been spent compiling data. Therefore the owners can take prompt action while preserving the planned course for their business future.
3. Internal Communications. A business plan has traditionally been used as a communication tool; for informing potential investors and lenders about the history and progress of a business. However, the plan can also be used to brief attendants as to the direction in which the store is headed. When new hires are informed of the company’s objectives and tools needed to obtain them, the new employee gain a better idea of what must be accomplished and how their jobs relate to the overall progress of the company. For top management, an updated business plan serves as an ongoing memo outlining the company’s changing needs.
4. Financial Information. The quality of a business plan’s financial statement plays a key role determining both present and future financial demands on the company. It should provide information on a wide range of financial concerns such as budgeting, possible cash surpluses or shortfalls or the need for external resources of funds.

Preparation of a Business Plan

While there are many “off the shelf” computer programs that can easily assist you in the preparation of a business plan, the following is an overview of what a viable business plan may include;

Introduction

1. Cover sheet
1. Title of the business plan
2. Owner/potential owner name
3. Business name
4. Logo if applicable
5. Contact information (address, phone, email, fax, etc.)
6. Date prepared.
2. Executive summary
1. Business concept
2. Financial features
3. Financial requirements
4. Current state of business and age of business if applicable
5. Principal owners and key personnel
6. Major achievements
3. Table of contents for the business plan

Business Description

1. Industry overview
1. Brief description of the coin laundry industry
2. Present and foreseeable challenges and opportunities
2. The Company
1. Mission statement
2. Type of business
3. Legal structure
4. History
5. Principals and their experience
3. Services Provided
1. What make this business unique
2. What will make this laundry successful and profitable
4. Position in the Marketplace
5. Pricing strategy

The Market

1. The environment in Which the Laundry will Operate
1. Who are the customers
2. How many potential customers are in your market
3. What trends are developing within the market
2. Competitors
1. Who are they
3. Why Would Potential Customers Prefer You

Development and Production

1. How are the Services and Products offered?
2. What is the process?
3. What does the process cost?
   1. Labor requirements
   2. List of monthly expenses
   3. Capital requirements (i.e. equipment, and building etc.)

Sales and Marketing

1. Strategy for reaching potential customers and turning them into actual customers.
2. Advertising plans
3. Special methods for making sales (such as commercial accounts)

Management

1. Business managers
1. Names
2. Responsibilities (be specific)
3. Experience and expertise
2. Outsourced services such as legal counsel, payroll, and accounting.
3. Owners of the business
4. Board of directors or board of advisors

Financial Information

1. Full Set of Financial Statements
1. Balance sheet
2. Income statement
3. Cash flow statement
4. Historical data if this is an existing business
5. Projected financial statements
2. Discussion of the Risks that the Business Faces
3. Funding Request
   1. Type of funding (loan, lease etc.)
   2. Use for funding
   3. Lenders interest rate, and expected terms
   4. Downside risk and the upside potential

This plan should be continuously used, reviewed, and updated. If properly created and updated, should the need for outside financing arise, this business plan becomes a complete financial proposal that will meet the requirements of most lenders.

** Information includes materials obtained from the Coin Laundry Association and other sources.