Starting a Dry Cleaning Business: Step-by-Step Guide

Are you thinking about starting a dry cleaning business? When you know the right strategies to get started on the right path, a dry cleaning business can prove to be a reliable, lucrative opportunity.

In this guide, you’ll discover everything you need to know about starting a dry cleaning business—from the initial early days to marketing and scaling.

Understanding the Dry Cleaning Industry

The dry cleaning industry in the United States is anticipated to reach $12.74 billion in 2025. Dry cleaning services are in steady demand, especially in urban and suburban areas where busy professionals, frequent travelers, and even small businesses rely on outsourced garment care. Here’s why it’s a smart business opportunity:

Many dry cleaning businesses are small, family-owned shops. This means there’s room for new businesses to compete. The key is providing good service and building relationships with customers in your community.

1. Research the Market

Before anything else, study the demand in your local area. Here’s what to focus on:

Pro Tip! Check out reviews of local cleaners to find service gaps you can fill (e.g., faster turnaround, eco-friendly options, delivery service).

2. Choose a Business Model

Dry cleaning isn’t one-size-fits-all. Choose the right structure for your budget and goals:

Traditional Storefront

Drop-Off Kiosk / Locker System

Pickup and Delivery Service

3. Create a Business Plan

A solid business plan sets the foundation. Include:

Did you know? The average American household spends about $600 per year on dry cleaning and laundry services, according to the Bureau of Labor Statistics.

When planning, think about what services you’ll offer. Basic dry cleaning is just the start. You might also do:

Write down your basic business plan. It doesn’t have to be fancy, but it should cover your goals, target customers, services, and how you’ll make money. This plan will help you stay focused as you work on starting a dry cleaning business.

Pro Tip! Include potential revenue from add-on services like wash & fold, household item cleaning, and tailoring.

4. Choosing the Right Location

Location is super important for a dry cleaning business. You want to be where your customers can easily find you and drop off their clothes. The best locations are usually in busy areas with lots of foot traffic.

Here’s what to look for:

Remember, you want a place where people can quickly stop by on their way to/from work.

Plus, think about your competition. Having other dry cleaners nearby isn’t always bad. It might mean the area has lots of customers who need these services. But you want to make sure there’s enough business for everyone.

Also, consider the size of the space you need. You’ll need room for a customer service area, equipment like:

Most dry cleaning businesses need at least 1,500 to 2,000 square feet. Don’t forget about parking! Customers need a place to park when they drop off and pick up their clothes.

5. Getting the Proper Licenses and Permits

Starting a dry cleaning business requires several licenses and permits. These rules exist to keep workers and customers safe. The exact requirements depend on where you live, but here are the common ones you’ll need.

Check with your local small business association or chamber of commerce for specific licensing requirements.

Did You Know?

The dry cleaning industry has become much more environmentally friendly over the years. Many businesses now use “green” cleaning methods that are safer for people and the planet.

You might also need fire department permits, health department permits, building permits if you’re renovating, and zoning permits to make sure your business is allowed in that location.

Getting all these permits might seem like a lot of work, but it’s important to do it right. Having the proper licenses protects your business and shows customers that you’re professional and trustworthy.

6. Equipment and Supplies You’ll Need

Equipment is a big part of starting a dry cleaning business. You’ll need several types of machines and supplies to do the job right. This is probably where you’ll spend the most money when starting.

The main piece of equipment is the dry cleaning machine. These machines use special solvents to clean clothes without water. New machines can cost $50,000 to $100,000 or more. Used machines cost less but might need more repairs.

You’ll also need:

Fun Fact: Modern dry cleaning machines are much more efficient than old ones. They use less solvent and are much better for the environment.

Other important equipment includes conveyors for moving clothes, bagging machines, tagging equipment, point-of-sale systems, and security systems.

Don’t forget about supplies! You’ll need hangers, bags, tags, cleaning solvents, and spotting chemicals. These ongoing costs add up, so budget for them in your planning.

7. Setting Up Your Pricing Structure

Pricing is tricky when starting a dry cleaning business. You want to charge enough to make a profit, but not so much that customers go somewhere else. Research what other dry cleaners in your area charge for similar services.

Most dry cleaners charge by the item. Common prices might be $2.50 to $4.00 for men’s shirts, $4.00 to $6.00 for women’s blouses, $8.00 to $15.00 for suits, and $4.00 to $8.00 for pants.

Fun Fact: The average dry cleaning transaction is about $25 to $50 each visit, with an average of 3-5 items.

Consider offering package deals, discounts or loyalty programs for regular customers. Your prices should cover equipment payments, rent and utilities, employee wages, insurance, supplies,  chemicals and marketing costs while still leaving you with a profit.

8. Hire and Train Staff

The customer experience often hinges on your employees. Prioritize:

Invest in training. Even if you hire experienced workers, ensure consistency in quality and service.

9. Marketing Your New Dry Cleaning Business

Marketing is crucial when starting a dry cleaning business. You need to let people know you exist and convince them to try your services. Start with your grand opening. Plan a special event to introduce your business to the community.

Now it’s time to spread the word. Here’s how to attract your first wave of loyal customers:

Local SEO and Website

Social Media

Partnerships

Launch Offers

This is a great opportunity to introduce Trigger-Based Marketing. Leave the hard work up to BeCreative360, who can implement monthly, weekly, or daily campaigns to drive customers to your store.

10. Managing Day-to-Day Operations

Running a dry cleaning business involves many daily tasks. You’ll need to develop systems to keep everything running smoothly. The typical day starts with receiving clothes from customers. Each item needs to be inspected, tagged, and sorted.

After cleaning, clothes need to be pressed and finished. Quality control is important here. Check each item before it goes back to the customer. Finally, cleaned clothes need to be sorted, bagged, and organized for pickup.

Keep detailed records of everything. This includes customer information, what services they use, and how much they spend. Industry specific software like SPOT can help with this!

11. Scaling Your Business Over Time

Once your dry cleaning business is established, you’ll want to think about growth. One option is to add new services like alterations, shoe repair, or laundry services. Also, adding subscriptions to your repertoire can mean recurring revenue. Consider adding lockers to apartment buildings or businesses. Another growth strategy is to open additional locations.

You might also consider offering pickup and delivery services. Many customers love the convenience of having their clothes picked up and delivered. See below how delivery suites can take you to the next level. Technology can help you grow as well with better point-of-sale systems and customer management software.

Optional (but Powerful): Offer Pickup and Delivery

Adding pickup and delivery can increase revenue and customer convenience, especially for busy professionals.

Tools to make it easier:

This modern twist gives you an edge over legacy dry cleaners stuck in old-school processes.

Ready to get started? The team at Xplor Spot Dry Cleaning Software is here to help you. . Book your FREE personalized demo today!

12. Common Challenges and Solutions

Starting a dry cleaning business comes with challenges. Some of these challenges include seasonal fluctuations, equipment breakdowns, environmental regulations, and market share. 

The dry cleaning industry is well known for its seasonal fluctuation. Business is generally busier in the cooler months, September through February. While the summer months drop drastically. It is important to offer a range of services to stay relevant. Some examples are Wash, Dry, Fold and Pickup and Delivery. The more convenience you offer your customers, the higher your retention rate will be during the slow period. 

As most know, equipment breakdowns can be costly, directly impacting your bottom line. They can also damage the relationship you are building with your customers. It is important to stay up to date with equipment maintenance. It’s also detrimental to find and maintain a good relationship with a local repair service. 

Another drycleaning concern is the environmental regulations continuing to change. Staying informed about new rules and requirements is imperative to the safety of your employees and customers. You may consider investing in newer, more environmentally friendly equipment and processes. 

Like any business, your competition can be one of the biggest factors in the success of your business. It’s important to find a market that is not over saturated with competition, as this market can be extremely competitive. Taking the time to research your target areas can save you alot of dissapointment. 

13. Building Customer Relationships

Strong customer relationships are the foundation of a successful dry cleaning business. Most of your revenue will come from repeat customers who trust you with their clothes. Excellent customer service starts with the first impression.

Furthermore, studies show that it costs five to seven times more to acquire a new customer than to retain an existing one, making customer retention crucial for dry cleaning businesses.

Learn your customers’ names and preferences. Handle complaints quickly and professionally. Consider a loyalty program to reward regular customers.

BONUS! Startup Costs Snapshot

**This chart is a general estimate based on a range of numbers appearing in the market. Use this chart as a guideline to give you a general idea of startup costs.

Item	Estimated Cost
Lease & Renovations	$25,000–$100,000
Dry Cleaning Machines	$30,000–$80,000
Pressing & Tagging Equipment	$80,000–$100,000
Washing & Drying Equipment	$50,000–$60,000
POS & Software	$2,000–$10,000
Licensing & Insurance	$5,000–$15,000
Marketing & Branding	$5,000–$10,000
Initial Payroll	$10,000–$20,000
Total	$207,000–$395,000

Pro Tip! Start small with a drop-store and outsource cleaning to a plant before investing in equipment.

Ready to Start Your Own Dry Cleaning Business? 

Starting a dry cleaning business can be a rewarding venture that provides steady income and serves an important staple in your community. The key to success is careful planning, attention to detail, and excellent customer service.

Remember that starting a dry cleaning business requires a significant upfront investment in equipment and a suitable location. However, with proper planning and execution, it can provide a stable income for years to come.

Here are a few things to remember going forward:

Starting a dry cleaning business requires hard work and dedication, but it can be a profitable and satisfying way to serve your community. With the right approach and commitment to excellence, your dry cleaning business can thrive for years to come.

Need help managing routes, production, or anything in between? ? Consider using the best all-in-one dry cleaning software—Xplor Spot helps you keep everything running smoothly from day one.

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Related: Dry Cleaning Upsells: Using Subscriptions to Boost Sales

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