Assignment 1: Creating an eCommerce Business
BUS 402: Small Business Management
Creating an eCommerce Business
I have always love to decorate, so my first idea was to create an event planning business. But I also want to open a laundromat, and there are still some out here that need clean cloths. So my business is 24/7 cleaners and laundromat, called Diva’s Suds and Cleaners. I first want to make sure there is a market for this in my area; I want to find resources for income. I want to be able to open this business myself, but I will consider investors. I have always been a creative individual. I want to have high-end washing machines, dryers, and machines that will dry clean clothes as well. Customers will be able to do all this themselves. I want to open more businesses around the Maryland, Virginia area eventually, but for now, I am ready for the one I want to open in a few months. My company will cater to customers that are on budgets and need to clean their clothes and not feel like they paid a boatload of money to clean them. I want to incentives for the more you wash you get quarters to use towards your next wash.
My key competitors are other laundromats and cleaners in the area, like zips dry cleaning, and other small laundromats. My most significant competitor will be zips dry cleaning because they offer in by nine out by five services and the prices are deficient $2.49 a garment. That would be one of the strengths; also, they are all over the area. I’m not sure how my business will compete with that. They also offer you a chance to own your franchise. Now one of their weaknesses I would say, zips will be closed on Sundays, and they close at 7 pm on weekdays. My business will open twenty-four hours, and on Sundays, so I will pull the late-night people and the people that wait until the last minute to wash or want work clothes clean. I will have the same services as zips, but I will have dry cleaning machines in with the washing machines just in case customers want their clothes themselves. We will have great incentives, the more you wash, the more credit you will have towards any machine, which means you don’t have to spend your money. My mission statement would be simple, to provide a safe and efficient laundry experience like nobody else, through concierge customer service, strategic marketing, innovative technology, and superior cleanliness, provide best-in-class laundry and cleaning. The customer comes first with us and integrity to do the right thing. Our employees are our competitive advantage. Family-friendly facilities.
Laundromats make it more accessible to get laundry done when customers either don’t have a washing machine at home or need to wash more clothing than their wash machines can handle at home. My Laundromat will also sell detergents and bleach, dryer sheets, and other related items to assist customers while getting their laundry done. However, when my business grows, I will hire a manager, for now, I will run it. Unless I can get a volunteer to help part-time, that’s all I can afford for now. Clean clothes are a must, not an extravagance, so somebody is going to have to use a laundromat, no matter how the stock market is today, tomorrow or next month. My laundromat will also service the general public and bring in a consistent stream of revenue. Typical customers are those living in apartments where there are no onsite laundry services or washers and dryers for self-service. This might mean placing the laundromat near low-rent or impoverished neighborhoods, not that middle-class areas don’t need them, but doing research majority of them are in low-income areas.
My laundromat will have the latest technology, the use of credit cards, and even laundromat-specific cards. However, accepting credit cards increases convenience, possibly commencing to more customers. Diva’s Suds and Cleaning will go with today’s lifestyle. Customers expect more from laundry experience, and I will provide it. Easy to use smart-phone apps and rewards will be available.
Now, Costs for opening a laundromat are essential. Depending on the location, it can cost me $100,000 and $200,000 to purchase an existing business, or it will cost up to $1 million or more to start from the bottom. I will be buying an existing business. It also will depend on the area I purchase it. I will be purchasing new machines they will initially cost more, but I will also know the entire service history and they will last longer.
If I finance the business, rather than pay cash, I will only need to put down 10% to 30% of the total cost. Utility costs are a necessary expense. Since the machines can cost $500 to $700 each for top loader and $3,500 and $20,000 for front loaders, utilities to run them (water, heating, etc.) can run between $200 and $2,000 per month, each.
Since I am Establishing a legal business an LLC, that will prevent me from being personally liable. I’m thinking of using a registered agent service to help protect my privacy and stay compliant. I’m registered for a variety of state and federal taxes before the laundromat open for business. I don’t want to fail to acquire required permits and licenses, and not have heavy fines, that will cause for my business to shut down.
I researched and found out Insurance is strongly recommended for all business owners. So, If I hire employees, workers compensation insurance may be a legal necessity in MD. I will finish by advertising through social media and getting a bill board in the area along will a huge grand-opening.