FreshFold Laundry Pickup and Delivery

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

FreshFold Laundry Pickup and Delivery is a small laundry service in South Carolina. We pick up dirty laundry from doorsteps, wash, dry and fold it in our own leased workspace, and deliver it back clean, usually within two days. We also wash linens for short-term rentals and small businesses, and send dry cleaning to a partner cleaner. Our customers are busy families, working parents and hosts who would rather spend their time on something else.

The problem is simple. Laundry never ends, and a trip to the laundromat can eat a weekend. We give customers a clear price per pound, a set pickup window and clean, folded clothes at their door.

Here is what our numbers show. We expect sales of $254,500 in Year 1, growing to $710,000 by Year 5 as we add routes, short-term rental accounts and a second set of machines. We expect a profit of about $14,500 in Year 1, growing to about $91,300 by Year 5.

We need $125,000 in total. That covers $82,500 in startup costs (commercial washers and dryers, a used van, folding tables and carts, utility hookups, the lease deposit, insurance and signage) and a cash cushion for the first months. I am putting in $25,000 of my own money, and I am asking for a $75,000 SBA loan plus $25,000 from an investor or partner.

I am Tiffany Reed, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

FreshFold Laundry Pickup and Delivery will be a limited liability company (LLC) in South Carolina, owned by Tiffany Reed. An LLC is a business type that generally keeps your home and savings separate from the business's debts and lawsuits, although a lender may still ask for a personal guarantee. A business attorney or the Small Business Development Center (SBDC) can explain how it works in our state.

What we believe. Clothes are personal. We treat every bag with care, keep each customer's laundry separate and tell customers the truth when something goes wrong.

What we offer:
- Residential wash and fold. Customers leave a bag at the door, and we wash, dry, fold and return it, priced by the pound.
- Short-term rental and small business linens. Sheets, towels and uniforms for hosts, salons, gyms and small offices, on a regular schedule.
- Dry cleaning through a partner cleaner. We collect, hand off and return dry cleaning, and the partner does the cleaning.
- Later, as we grow: a second van and subscription plans. The numbers in this plan do not include these.

The space. In Year 1 we will lease about 1,800 square feet of light industrial space with water, drains, gas or electric service for dryers and proper venting. We budget $30,000 a year ($2,500 a month) for rent, water, gas and electric, and the plan assumes this grows about 18% a year as volume grows.

Licenses and insurance. We will register the LLC with the state, get a business license, an EIN (the business tax number from the IRS, free at irs.gov) and a sales tax registration where it applies. Before I sign a lease I will ask the city and the sewer or water utility whether the space is approved for commercial laundry and whether a wastewater permit is needed, and ask the fire department about dryer venting and lint cleaning. We will carry general liability insurance, commercial auto insurance for the van, insurance for customers' property in our care and workers' compensation once we hire.

Where things stand today. This plan is my starting point. Before I sign a lease or buy machines, I will ask at least 30 households and 5 short-term rental hosts what they would pay, and line up at least 20 households and 2 hosts who say they would sign up. If I cannot, I will change the plan before I spend money.

Problem & Opportunity

Laundry takes more time than most people have.

1. Hours lost every week. A family can spend many hours a week washing, drying and folding.
2. Laundromat trips are a chore. Carrying heavy bags, finding machines and waiting are hard for busy people, seniors and people without a car.
3. Short-term rental hosts need fast turnover. Clean sheets and towels have to be ready between guests.
4. Small businesses need reliable linen service. Salons, gyms and offices often do not have a washer, or enough time.
5. Unclear prices and lost items. Some services quote vague prices or lose items, and customers do not know who to call.

How we will find out if people want this before we spend money. I will ask at least 30 households and 5 hosts what they pay now, how much laundry they do and what they would pay for pickup. Our Year 1 plan needs about 1,731 pounds a week from households, about 40,000 pounds a year from rentals and businesses and about 4,000 dry cleaning items, so I will ask for at least 20 households and 2 hosts to sign up first.

Products & Services

What we sell. We have three services, each priced simply.

1. Residential wash and fold. The plan assumes an average of about $1.85 per pound in Year 1, rising to about $2.05 by Year 5, with a minimum order. Detergent, supplies and bags cost about $0.42 per pound. We expect about 90,000 pounds in Year 1 (about 1,731 a week), growing to about 200,000 a year by Year 5.
2. Short-term rental and small business linens. The plan assumes about $1.30 per pound in Year 1, rising to about $1.50, with about $0.36 per pound in supplies. We expect about 40,000 pounds in Year 1, growing to about 130,000.
3. Dry cleaning through a partner cleaner. The plan assumes about $9 per item in Year 1, rising to about $10, with about $6 per item paid to the partner. We expect about 4,000 items in Year 1, growing to about 10,500.

Our prices. A clear price per pound with a minimum, a lower price for regular weekly accounts, and a posted list for dry cleaning items. Delivery is included within our service area.

How it works for a customer:
1. The customer signs up online and picks a pickup window.
2. On pickup day, the customer leaves a labeled bag at the door, or hands it to the driver, and we weigh it and send the weight.
3. We wash, dry and fold the laundry in a separate batch and return it, usually within two days.
4. The customer pays by card, and we ask about special care such as scented or unscented detergent or allergies.

Gross margin, explained. "Gross margin" is the share of each sale left after paying for detergent, supplies and the dry cleaning we pass to our partner. Our plan shows about 70% in Year 1. That money pays the team, rent, water and power, the van and other bills. Team pay is counted separately, under payroll.

Market Analysis

Who will use us:
- Busy families and working parents.
- Seniors, people with disabilities and people without a car.
- Short-term rental hosts and property managers.
- Small businesses such as salons, gyms, spas and offices.

Where we will work. Customers within about 20 minutes of the workspace, with set routes on set days so the van is used well.

How we sized the plan. Our Year 1 plan needs about 1,731 pounds a week from households, which is about 115 bags of about 15 pounds, plus rentals and businesses. That is a modest volume for the machines we plan to buy. I will check the real numbers by signing up households before spending money.

Season. Summer and holidays bring more rental linens and family laundry, and winter bulky items such as comforters add weight. The numbers show a yearly average, and we plan ahead with route schedules and extra part-time hours.

We are careful on purpose. The plan assumes one van and a small team before we add routes.

Competitive Landscape

Other choices customers have:
1. Doing it at home or at the laundromat. It costs less in cash, but takes time.
2. Drop-off laundromats that fold for a fee. Convenient, but the customer must carry the bags.
3. Larger laundry delivery companies and apps. They have scale, but may cost more or have less personal service.
4. Dry cleaners that offer pickup, but usually not wash and fold at a low per-pound price.
5. Linen rental companies for businesses, which are good for large accounts but often require long contracts.

How we will win customers: a clear price per pound, a set pickup window, separate batches for each customer, careful folding and a person to call. These are promises we have to keep, and any competitor could make them too, so we will measure ourselves on them every week.

Marketing & Sales Strategy

How customers will find us.
- A simple website with online sign-up, a price list and pickup windows.
- A free Google business listing with photos and reviews.
- Neighborhood outreach. Door hangers, apartment community partnerships and a free first-bag offer.
- Short-term rental hosts and property managers. Visit with a sample, a clear price and a flexible schedule.
- A referral thank-you. A customer who refers a neighbor gets a free bag of laundry.

Marketing budget. About $6,000 a year in Year 1 (about $500 a month), growing about 8% a year. The van lettering, website and photos are paid for from startup costs ($3,500).

Operations Plan

How the business runs day to day.

The space. A receiving and weighing area, sorting tables, commercial washers and dryers with proper venting, folding tables, shelves for finished orders, a supply room and a loading door.

A normal day:
1. The driver collects bags on the morning route, tags each bag and weighs it.
2. The team sorts and washes each customer's laundry separately, using the settings the customer has asked for.
3. Dryers are run and lint traps are cleaned between loads, then each order is folded, bagged and labeled.
4. The driver delivers finished orders on the afternoon route, and customers get a message when the order is at the door.

Care and claims. We follow care labels, wash dry-clean-only items only through the partner cleaner, check pockets and tell customers about anything left in them. We have a written policy for lost or damaged items that explains how a claim is made and what we pay. We do not wash soiled medical items or heavily contaminated linens.

Safety. We train everyone on lifting, chemical handling and fire safety, clean dryer vents and lint on a set schedule, keep clear exits and fire extinguishers, and keep detergents in labeled containers. Drivers carry no cash, follow the posted rules for the van and never enter customers' homes.

Equipment. About $56,000 to start: used commercial washers and dryers, folding tables and carts, a used cargo van, and a scale, computer and tags. We set aside about $6,000 a year after that for repairs, and the plan adds machines and a second van in Year 3.

Running costs in Year 1: rent, water, gas and electric about $30,000, van fuel, maintenance and insurance about $9,000, software and route planning about $3,600, marketing about $6,000, business insurance about $3,600, and accounting, permits and legal about $3,000. That is $55,200 in all.

Payment. Households pay by card when their order is delivered. Rental and business accounts are invoiced monthly and most pay within 30 days, so we keep a cushion of cash to cover the wait.

Management & Organization

Who runs the business. Tiffany Reed, owner and manager. As owner I will manage the schedule and routes, sign accounts, handle repairs and money, and drive when needed. I plan to pay myself $36,000 a year in salary.

The team. Pay figures include payroll taxes and workers' compensation insurance.
- Laundry attendant (full-time): one in Year 1, two in Year 2, three in Year 3, four in Year 4 and five in Year 5, at about $28,000 a year each.
- Driver (part-time): one in Year 1, two in Years 2 and 3 and three in Years 4 and 5, at about $20,000 a year each (about 20 hours a week).
- Route coordinator (part-time): one starting in Year 3, at about $20,000 a year.

We hire people who are careful, reliable and honest, train everyone on the same written steps, check driving records and run background checks (with the person's permission and following the law) on drivers and anyone who handles customers' belongings.

People who will help us: a bookkeeper or tax preparer, an insurance agent who understands laundry and vehicles, a business attorney for a one-time review of the lease and customer terms, and a free mentor from SCORE or the Small Business Development Center (SBDC).

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (4 to 6 months ahead): ask the city and utility about commercial laundry, wastewater and fire rules, sign up at least 20 households and 2 hosts, register the LLC and get an EIN, open a business bank account, get insurance and equipment quotes, find a space, have an attorney review the lease, line up a partner dry cleaner, and run practice loads. Sign the lease only after the utility answers and the sign-ups are in hand.
- Year 1: open with the owner, one attendant and one part-time driver, with about 1,731 pounds a week from households, $254,500 in sales and a profit of about $14,500.
- Year 2: add an attendant and a driver, with about 125,000 pounds a year from households, $380,750 in sales and a profit of about $39,000.
- Year 3: add a route coordinator and more machines, with about 155,000 pounds a year from households, $504,250 in sales and a profit of about $57,000.
- Year 4: add a fourth attendant and a third driver, with about 180,000 pounds a year from households, $612,125 in sales and a profit of about $69,100.
- Year 5: grow to about 200,000 pounds a year from households with a team of ten, $710,000 in sales and a profit of about $91,300.
Growth depends on signing and keeping route customers and rental accounts and keeping machines running, so treat the later years as goals, not promises.

What we check every week: pounds washed, orders delivered on time, lost or damaged claims, machine downtime, route stops per hour, rental accounts and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $125,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $82,500, listed item by item in the Startup Costs section: $30,000 for used commercial washers and dryers, $4,200 for folding tables, carts, hampers and shelving, $16,500 for used cargo van with racks, $5,300 for scale, computer, tablet and tags, $2,500 for detergent, bags, hangers and supplies for the first weeks, $9,500 for water, gas and electric hookups and drains, $6,000 for lease deposit and first month of rent, $1,100 for business license, wastewater and local permits, $1,900 for legal and accounting setup, $3,500 for van lettering, website and photos, and $2,000 for first insurance payment.
- A cash cushion of about $34,800: about 3 months of running costs. Our cash stays above zero in every year of the plan, but lenders still want a cushion in the bank for slow weeks and surprises. They call this "working capital."
- Together that comes to about $117,300, rounded up to the nearest $500: $117,500.
We are raising $7,500 more than that, $125,000 in all, to leave extra room for loan payments in the first years and for machine repairs.

Where the money comes from:
- My own money: $25,000.
- Amount requested as a loan: $75,000.
- From an investor or partner: $25,000.

Kind of funding we are looking for. An SBA 7(a) small loan through a local bank or community lender, plus investor or partner money. Investor or partner money is not paid back with interest, but the person gets a share of the business. A family member, a friend, a local investor or a business partner could fill this part. Put any agreement in writing.

How we will pay it back. We expect a profit of about $14,500 in Year 1, growing to about $91,300 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan, and the lowest year-end balance is about $78,300, at the end of Year 1. The loan is planned at 12.75% interest over 10 years, so payments of about $1,109 a month (about $13,306 a year) are already included in our cash flow. We chose 12.75% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

What we are offering the lender: our equipment as collateral (something the lender can claim if the loan is not repaid) and my personal guarantee (my promise to repay from my own money if the business cannot).

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start with pickup and delivery using a laundromat that allows commercial drop-off washing, or partner with a wholesale laundry, taking about 30 customers while keeping your current job. Startup can be roughly $4,000 to $7,000 for bags, supplies, insurance and a website. Get your own quotes.
- Phase 2: once routes are full, lease a workspace, buy used machines and a van and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or training certificates.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Proof of insurance, or a quote.
- Your price list, pickup rules and a claim policy for lost or damaged items.
- Written answers from the city and utility on commercial laundry permits.
- A letter or quote for the space, and the lease once you have it.
- Quotes for the machines and van.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Residential Wash and Fold: about $1.85 per pound in Year 1, rising to $2.05; about $0.42 per pound in direct costs, rising to $0.46; about 90,000 pounds in Year 1, growing to 200,000.
- Short-Term Rental and Small Business Linens: about $1.30 per pound in Year 1, rising to $1.50; about $0.36 per pound in direct costs, rising to $0.40; about 40,000 pounds in Year 1, growing to 130,000.
- Dry Cleaning Through a Partner Cleaner: about $9 per item in Year 1, rising to $10; about $6 per item in direct costs, rising to $6.60; about 4,000 items in Year 1, growing to 10,500.
- Pay: Owner / Manager $36,000 (1/1/1/1/1); Laundry Attendant (full-time) $28,000 (1/2/3/4/5); Driver (part-time) $20,000 (1/2/2/3/3); Route Coordinator (part-time) $20,000 (0/0/1/1/1). The numbers in parentheses are how many people we plan to have in Years 1 through 5. Pay figures are yearly and include payroll taxes and workers' compensation.
- Other yearly costs in Year 1: rent, water, gas and electric $30,000, van fuel, maintenance and insurance $9,000, software and route planning $3,600, marketing $6,000, business insurance $3,600, and accounting, permits & legal $3,000. These grow between 5% and 18% a year as the business grows.
- Households pay when their order is delivered, but rental and business accounts are invoiced. At the end of Year 1 about $15,270 (6% of Year 1 sales) is owed to us by those accounts or is still on its way from card processors.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs