Magnolia Laundromat — Business Plan Sample (2025)
Prepared by: National Laundry Equipment | Contact: John Dixon
1) Executive Summary
Magnolia Laundromat is a proposed, investor-backed self-service and full-service laundry located in Fictional County, Tennessee. The concept combines a modern mix of high-extract washers, efficient dryers, and a staffed wash–dry–fold (WDF) counter to serve apartment dwellers, students, service workers, and busy professionals. The project leverages proven laundromat economics—measured chiefly by Turns Per Day (TPD)—to deliver durable cash flow.
Capital structure totals ~$1.1M: $300k equity and ~$800k debt at ~9.5% APR (monthly debt service ≈ $10,520). Under conservative assumptions of ~4.2 TPD (industry average ≈ 5 TPD), the store clears break-even (≈3.16 TPD) and produces robust profits with EBITDA near ~$97k in Year 1, expanding as debt amortizes. Section 179 first-year expensing on up to ~$700k of qualified equipment meaningfully enhances after-tax cash flow. Baseline projections show path to >$10.8k average monthly profit at ~4.2 TPD, with significant upside at higher TPD.
Source: Internal profitability analysis and Fictional County rates.
2) Company & Concept Overview
- Name: Magnolia Laundromat (fictional)
• Location: Small Town MSA (Fictional County), TN
• Format: Hybrid—self-service + attended WDF
• Footprint: ~3,000–3,400 sq ft inline retail space with 24/7 camera monitoring and cashless capability
• Mission: Deliver a spotless, fast, and reliable laundry experience with fair pricing and zero-hassle service
• Value Proposition: Faster cycles, transparent pricing, mobile pay, loyalty, and same‑day WDF available
Equipment Mix & Vend Strategy
The store’s revenue engine is a balanced bank of high-extract washers paired to ample dryer pockets to prevent bottlenecks and protect customer experience.
| Equipment | Qty | Vend Price (Self‑Service) |
| Washer 80# | 6 | $12.50 / load with cycle modifiers that increase price |
| Washer 60# | 6 | $10.50 / load with cycle modifiers that increase price |
| Washer 40# | 6 | $8.00 / load with cycle modifiers that increase price |
| Washer 30# | 8 | $4.00 / load with cycle modifiers that increase price |
| Dryer Pockets (mixed) | 34 | $ Varies, depending on size |
Pricing is tuned to value and cycle time; with ~45 minutes per wash load, dryer revenue rides alongside washer volume.
Services
- Self‑Service Laundry (24/7 or extended hours)
• Wash–Dry–Fold (WDF) counter: baseline 2,000 lbs/month at $1.85/lb (~$3,700 gross; sales tax remitted)
• Commercial Accounts (targeted onboarding in Year 1–2): salons, gyms, short‑term rentals
• Vending: detergents, softeners, snacks; ATM & change services as needed
3) Market Analysis & Competitive Positioning
The Small Town MSA features dense rental corridors and steady in‑migration, creating durable demand for third‑place laundry solutions. Key drivers include multifamily stock without in‑unit washers/dryers, service‑industry schedules, and convenience‑seeking professionals. Magnolia Laundrimat positions as the clean, safe, and data‑calibrated option with transparent pricing, card/mobile pay, and same‑day WDF.
Competitive differentiation focuses on: (1) throughput—ample dryers to eliminate queues; (2) uptime—preventive maintenance; (3) speed—high‑extract washers reduce dry times; and (4) hospitality—attended hours for WDF and customer support.
Customer Segments
- Renters in garden‑style and urban multifamily within a 5–8 minute drive time
• Students and healthcare/service workers with off‑hours schedules
• Professionals using WDF for time savings; STR operators seeking reliable weekly service
4) Operations Plan
Hours target 6:00 a.m.–11:00 p.m. daily (last wash 10:00 p.m.), with the option to expand to 24/7 using remote monitoring and access control. Two to three attendants cover peak blocks and WDF processing. Preventive maintenance is scheduled weekly. A service contractor handles warranty work and gas/electrical inspections.
Utilities & Fixed Costs
Fictional County baseline utilities at ~4.2 TPD:
• Electricity ≈ 15,000 kWh/mo @ $0.103 ≈ $1,550
• Natural Gas ≈ 2,500 therms/mo @ $0.48 ≈ $1,200
• Water & Sewer ≈ $1,827
Total Utilities ≈ $4,600/month
Fixed monthly costs:
• Rent: $4,168
• Labor (baseline attendants): $2,800
• Loan Payment: ~$10,520
• WDF Sales Tax Remitted: ~$361
5) Go‑to‑Market & Sales
Branding emphasizes speed, safety, and simplicity. Tactics combine digital discovery with hyperlocal presence:
• Local SEO & Maps: listings, reviews flywheel, reputation management
• Performance Ads: geo‑fenced search/social around target corridors
• In‑Store: loyalty program, SMS offers, referral credits, student/industry nights
• B2B: outbound to salons/gyms/STRs with simple per‑bag or per‑pound pricing, weekly routes
Introductory offers include, during first 60 days and beyond depending on success, WDF first‑bag discount, and loyalty points multiplier to accelerate repeat behavior.
6) Management & Staffing
Ownership oversees strategy, KPIs, and capital planning. A part‑time general manager coordinates scheduling, vendor relationships, WDF quality, and inventory. Attendants are trained on customer care, cashless systems, cycle troubleshooting, and light maintenance. KPI rhythm includes weekly TPD reviews by machine class, dryer utilization, WDF pounds processed, ticket size, and NPS.
7) Financial Plan & Projections
Assumptions derive from internal Small Town‑market analysis: break‑even ≈ 3.16 TPD; base case 4.2 TPD; industry average ≈ 5.0 TPD. Debt: ~$800k @ ~9.5% APR; equity: $300k; total project ≈ $1.1M. Section 179 expensing up to ≈$700k in Year 1 improves cash flow. WDF baseline ~2,000 lbs/mo @ $1.85/lb (gross ~$3,700; sales tax remitted).
| TPD | Monthly Profit | Annual Profit | ROI on $300k |
| 3 | $-616 | $-7,392 | -2.5% |
| 4 | $7,865 | $94,380 | 31.5% |
| 5 | $23,918 | $287,016 | 95.7% |
| 6 | $31,500 | $378,000 | 126.0% |
| 7 | $38,200 | $458,400 | 152.8% |
| 8 | $45,000 | $540,000 | 180.0% |
Note: Break‑even at ≈3.16 TPD; base case 4.2 TPD; industry average 5.0 TPD.
At ~4.2 TPD, EBITDA approximates ~$97,000 in Year 1, increasing as the note amortizes and as WDF/commercial accounts scale. Modeled cash flow exceeds $165,000 annually post‑debt retirement under steady throughput.
8) Risk Analysis & Mitigations
- Throughput Risk (TPD shortfall): Mitigated via grand‑opening offers, loyalty, SEO/maps, and route‑based WDF.
• Utility Inflation: Hedge with high‑extract washers, dryer maintenance (lint/airflow), and smart scheduling.
• Equipment Downtime: Preventive maintenance schedule; vendor SLAs; critical‑spares inventory.
• Competition: Moat via cleanliness, hospitality, uptime, cashless options, and B2B contracts.
• Labor Variability: Cross‑training; clear SOPs; attendance incentives; manager coverage.
• Regulatory/Tax: Utilize Section 179 where eligible; maintain CPA engagement and sales‑tax compliance.
Implementation Timeline (Month 0–12)
- 0–5: Site selection, LOI, schematic layout, financing approval
• 5–9: Permitting, build‑out, utilities/gas, equipment order
• 9–12: Install, inspections, staff hiring/training, POS setup
• 12: Soft open (friends/family), digital launch, grand opening
• 12–14: KPI cadence, WDF route onboarding, targeted B2B expansion
Appendix A — Pro Forma (Base Case Highlights)
| Metric | Base Case (4.2 TPD) |
| CapEx (Project) | ~$1,100,000 |
| Debt / Equity | ~$800k / $300k |
| Debt Service (Monthly) | ~$10,520 |
| Utilities (Monthly) | ~$4,600 |
| Fixed Costs (Rent/Labor/Tax) | ~$7,329 (ex‑debt) |
| WDF Volume / Price | 2,000 lbs @ $1.85/lb (gross ~$3,700) |
| EBITDA (Year 1) | ~$97,000 |
| Breakeven TPD | ≈ 3.16 |
| Expected Monthly Profit | > ~$10,800 at ~4.2 TPD |
Appendix B — Assumptions & Notes
Assumptions use Small Town utility benchmarks and machine count/vend levels listed above. Sensitivity tables are illustrative and reflect observed industry ranges; actual results depend on location quality, mix, operating discipline, marketing execution, and financing terms.