New Business Advice

Roisin1985

Hi,

I am looking into starting my own business and am having big problems deciding which direction to go with it.
My current options are; Recruitment Consultancy or Launderette/Dry Cleaners. For the Consultancy I have found some premises which I could afford, I am just nervous about the start up and how long it could take to establish myself. The launderette is the more attractive option at the moment as it has low outgoing costs monthly, and I have found a company which will help me fit out the premises with all necessary equipment and help me get started for a 30% stake of whatever I earn.
This will be my first business so any advice would be much appreciated.

Many thanks

Roisin1985

Any other suggestions for a business would also be welcomed!

patman99

There are a lot of recruitment consultancies (fancy name for job agency) around. There are 20+ in my home town alone.

As for launderrette, you could add services such as becoming an agent for a drycleaners (you get commission, they take the risk), ironing service, clothing repair etc.

I would suggest doing a doorstep survey to find-out whether such a facility is needed in your area.

Don't forget about potential business customers. If there are any garages/cafes/factories in your area, they may just be looking for someone to wash their uniforms.

Premier_2

Roisin1985 wrote: »

... I have found a company which will help me fit out the premises with all necessary equipment and help me get started for a 30% stake of whatever I earn.
This will be my first business so any advice would be much appreciated.

Many thanks

I'd snap their hand off if I were you.

Washing machines are about £4k, you'll probably need half a dozen - £25k total

Not sure how much driers are, probably about the same.

That's £50k before you start the rest of the fitting out cost and launch costs.

All that for a 30% stake not even in the business, but just the profit?

I'm out! :rotfl:


As for a decision between the two alternatives? How about tossing a coin? Would probably as good a way of deciding.

Savvy_Sue

Personally, and maybe only in this area, there are far fewer launderettes than recruitment agencies, and a number have closed in the last few years. Which SHOULD mean it's not too hard to make a going concern of it, because there is less competition, but you have to think why there are fewer and fewer of them. Obviously most of us regard a washing machine at home as a necessity not a luxury, so when you NEED a launderette they're like hen's teeth. BUT when you washing machine is working well, you don't need the launderette!

jexygirl

2 very diverse options!
What experience do you have in either industry?
How fast do you need it to take money - I would imagine that a recruitment agency would take longer to bring in cash as you need to find clients, as well as getting potential candidates on your books. Even then, it could be over a month, if the person is successful (some interview processes are quite lengthy) before they pay you - again provided its your candidate that gets it. So you may not see any income for at least the first 3 or 4 months, and yet you will have alot of overheads advertising, phones, bills, rent etc.

As for the launderette, you know what your area needs, however I do agree with sues comments regarding it. I think you would need to look at a larger picture, perhaps doing a pick up and drop off service, and canvass local buisnesses like hotels for contract laundering.
GL
Jex

paulwf

What sort of job do you like doing OP? You'll be spending most waking hours looking after your business at first so you need to enjoy it.

Launderettes I've seen have been around for ages (as someone else said £50K new is a lot of money, perhaps why you don't see new ones). There seems to be someone who opens in the morning, perhaps a min wage assistant during the day and then someone comes and closes. It's not something I could get passionate about...each to their own though.

lincroft1710

Savvy_Sue wrote: »

Personally, and maybe only in this area, there are far fewer launderettes than recruitment agencies, and a number have closed in the last few years

I've also noticed there are fewer launderettes around, so are they not making enough money (less demand) or too costly to run at a profit or too much effort for too little return.

Savvy_Sue

lincroft1710 wrote: »

I've also noticed there are fewer launderettes around, so are they not making enough money (less demand) or too costly to run at a profit or too much effort for too little return.

Tricky, isn't it? You'd certainly have to offer larger machines so that people could use them for duvets etc, but also some smaller ones (at cheaper prices) for those who don't have a full load. You would get machine abuse (overloading etc), unless you had someone on site all the time it was open, and that would add to costs. You might find that doing service washes would help off set those costs, if you can find those who want to use that service.

But in the right place, it could make a bomb! I was thinking that the last couple of times I've known anyone need a launderette was at the end of a camping holiday, and when a house share broke down ...

So you might think that being in a holiday area would give a market, but having said that I wouldn't now do a self-catering holiday without a washing machine on site, and haven't done for years: it's one of the first things I look for.

Idle musings really, since I have no intention of doing this myself, not to be stepped into lightly!

patman99

Just a thought, if you don't mind cleaning people's ovens, you could set-up an oven cleaning service. You would need a van and a few environmentally friendly products (just use google to find manufacturers).

You could try using a batch of white vinegar+bicarbonate of soda+water on your own oven shelves, I have seen this used to great effect on 'How clean is your house'. If it works, then you are away and running as they say.

Victoriajayne

The Launderette is the best option in my opinion, if the location you propose can support it.

I use one of the local launderettes to dry my laundry through the cold/wet months (I have no room in the house for a tumble dryer), and to wash/dry my duvets and sleeping bag. The owner of the launderette employs two part time ladies that assist during the day, and the owner himself plays a very large part in the operation of his business. He offers a collection and delivery sevice which he does himself, and he also washes the sports kit for the local football teams. He is located very close to the military housing which brings in a lot of customers, and many of his customers are students from the university. He has recently started an ironing service too, he tells me it's very theraputic ;-)

Good luck whatever you choose x