How to Start a Profitable Laundry Business in the Philippines:

Running out of fresh clothes because you’ve been too busy to do laundry? You’re not alone.

That exact problem is the reason laundry businesses are booming across the Philippines—especially in urban areas where time, space, and convenience matter. Whether it’s young professionals in Makati, students in dorms, or busy parents juggling jobs and kids, more and more Filipinos are willing to pay for someone else to handle their laundry.

So, if you’re thinking of starting a small business in 2025, a laundry business might just be your ticket to success.

Let’s break it down together—how it works, how much you need, and how much you can actually earn.

Why a Laundry Business Makes Sense in 2025

Let’s start with the basics: why is the laundry business still worth investing in?

According to the Philippine Statistics Authority (PSA), urban households have grown by over 10% in the past five years. More families are living in condominiums and apartments—where owning a washing machine isn’t always possible. Add to that the rise of dual-income households and longer commutes, and suddenly, outsourcing laundry becomes a need, not a luxury.

In fact, a small self-service laundromat in Metro Manila can serve 30 to 50 customers daily, with each customer spending an average of ₱150 to ₱300.

We even spoke to Carla, a former OFW who opened her laundry shop in Cavite in 2022. “At first, I was scared. I had no business background,” she told us. “But after a year, I earned enough to pay off my loan and even opened a second branch.”

What Type of Laundry Business Should You Start?

Before jumping in, you’ll need to choose the right business model. Here are your options:

1. Self-Service Laundromat

Customers do their own laundry using your machines. This is great for high-foot traffic areas like near dorms or apartments.

• Pros: Low labor cost, scalable
• Cons: High upfront cost, space needed
• Startup capital: ₱1M to ₱2.5M (depending on number of machines)

2. Full-Service Laundry Shop

Your staff handles everything—from washing to folding.

• Pros: Personalized service, higher pricing
• Cons: Requires more staff
• Startup capital: ₱300K to ₱1M

3. Pickup and Delivery Laundry

No physical store required—you offer laundry services and deliver to the customer’s doorstep.

• Pros: Low overhead, flexible
• Cons: Logistics management
• Startup capital: ₱100K to ₱500K

4. Home-Based Laundry

Perfect if you’re just starting out and want to test the waters.

• Pros: Low cost, work-from-home
• Cons: Limited capacity
• Startup capital: ₱50K to ₱150K

Each model comes with its own risks and rewards. Choose the one that fits your location, capital, and lifestyle.

Step-by-Step Guide to Starting Your Laundry Business

Here’s your roadmap from idea to opening day:

Step 1: Do Your Research

Check if there’s demand in your area. Are there condos nearby? Is there another laundry shop already? Visit the area at different times of day to observe foot traffic.

Step 2: Register Your Business

Here’s a quick checklist:

• DTI or SEC registration
• Barangay and Mayor’s permit
• BIR registration
• Sanitary and fire permits

Tip: Visit the DTI Business Name Registration System to check name availability.

Step 3: Find the Right Location

Look for spaces near residential buildings, dorms, or business centers. Accessibility and visibility are key. Make sure there’s enough room for ventilation and plumbing.

Step 4: Buy the Right Equipment

You’ll need commercial washers and dryers—typically 10–15kg capacity for small shops. Don’t forget:

• Water tank
• Folding tables
• Steam iron
• Detergents and baskets

Pro tip: Consider energy-efficient machines to save on electricity in the long run.

Step 5: Hire and Train Your Staff

Teach them how to handle clothes, spot-check damage, and use equipment properly. Friendly service can turn first-timers into loyal customers.

Step 6: Market Your Business

Social media is your friend. Use Facebook and Tiktok to promote your promos, show behind-the-scenes content, or share customer feedback.

You can also:

• Offer opening discounts
• Partner with local apartment buildings
• List your shop on Google Maps

How Much Does It Cost to Start?

Here’s a rough breakdown of a full-service shop (2025 estimates):

Total: ₱500,000 to ₱700,000 (for a basic setup)

How Much Can You Earn?

Let’s say your shop handles 25 customers daily, with each spending ₱200.

That’s ₱5,000/day or ₱150,000/month in gross revenue.

After expenses like salaries, rent, water, and electricity (roughly ₱60,000), you’re left with ₱90,000 in monthly net income—not bad for a local business!

Most laundry shop owners reach their break-even point within 12–18 months, depending on foot traffic and marketing.

Franchise or Start Your Own?

If you don’t want to start from scratch, franchising is a great option. Here are some popular brands:

Franchises offer support, training, and branding—but they come with higher upfront costs. If you want full control, going independent lets you set your own rules.

Common Mistakes First-Time Owners Make

Avoid these rookie errors:

• Choosing a low-traffic location
• Buying residential machines instead of commercial ones
• Underpricing your services
• No accounting system or expense tracking
• No marketing strategy

Carla, the laundry shop owner we mentioned earlier, shared this: “I learned the hard way that cheap machines don’t last. I ended up replacing them in just six months.”

How to Stand Out from the Competition

Here’s how to make your shop the talk of the barangay:

• Offer loyalty cards – 10 washes = 1 free wash
• Use eco-friendly detergents – customers love sustainability
• Create a comfy waiting area with WiFi and AC
• Launch a subscription model for regular customers

Innovation doesn’t have to be expensive—it just has to be thoughtful.

Final Thoughts: Is This Business Right for You?

Starting a laundry business isn’t as glamorous as tech startups or food carts—but it’s reliable, essential, and profitable. It serves a real, growing need in both urban and provincial areas.

If you’re hardworking, organized, and willing to learn the ropes, this small business can bring in steady income and even expansion opportunities.

At MSME Philippines, we believe in empowering local entrepreneurs like you. Whether you’re just starting out or looking to scale, we’re here to guide you with insights, resources, and support that’s made for Pinoy business owners.

Let’s help you turn your clean idea into a clean profit.