A laundry business is a genuinely accessible option for entrepreneurs looking for a low-cost, low-complexity venture: relatively cheap to start, no special licences or specialist knowledge required, and steady demand in the right location.
There is more to running one properly than buying a washing machine and taking orders. This guide covers how the business actually operates and where it makes sense to locate it.
Does a laundry business make money?
Starting a laundry business can be genuinely profitable. Many South Africans rely on laundry services daily, particularly those working long hours who simply don’t have time to do their own washing, and laundry services also thrive in areas where housing space is limited.
The downside is that margins per customer are relatively slim, this is a volume business, not a high-margin one. A consistently busy laundry operation can still be very profitable, and creative owners can boost margins further by adding services like sneaker cleaning alongside standard laundry.
Main operating costs include water, electricity, laundry products, rent, and staff if you need extra hands, all relatively manageable compared to many other business types. A self-service laundromat model takes considerably less day-to-day time and effort to manage than a full-service, staffed operation. Washers and dryers are the major upfront investment, and can be genuinely expensive depending on capacity and quality.
What is needed to open a laundry business?
Start with a solid business plan: how the business will operate, who your potential customers are, where it will be based, and what your realistic profit margins look like, alongside clear revenue expectations and monthly expenses.
Find a location where you have identified genuine demand for laundry services. Once secured, kit the premises out with the right equipment: washers, dryers, ironing equipment, a laundry cart, detergents and more, sized to the demand you actually expect rather than guessed capacity.
Register the business properly with SARS as you would any new business.
Decide early whether the business will be self-service or full-service. Self-service requires coin or card-operated machines. A drop-off laundry service instead needs sufficient space and staff to handle order volume.
Marketing matters even for a service this straightforward. Clear, visible signage is the baseline, and additional marketing effort around launch can meaningfully speed up how quickly the business builds a steady customer base.
Is a laundry business useful?
Genuinely, yes. Many people work long hours and lack the time or space to do their own laundry, and a laundry business fills that need directly.
One of the strongest advantages is recurring custom: laundry is a repeat need, so a good service builds a base of returning customers who come back week after week.
Location matters more than almost anything else here. Affluent areas typically have washers and dryers in every household, often with domestic help handling laundry too, so demand is thinner there. Areas with limited household laundry capacity, apartment blocks especially, tend to be far stronger locations for a laundromat.
Frequently asked questions
Is a laundry business profitable in South Africa?
It can be, though margins per customer are relatively thin. Profitability comes from consistent volume and recurring customers rather than high per-transaction margins.
Do I need a special licence to run a laundry business?
No special licence is required, though you still need to register the business properly with SARS like any other business.
Should I run a self-service or full-service laundry business?
Self-service laundromats need less day-to-day management but require coin or card-operated machines. Full-service, drop-off laundry needs more space and staff but can charge a premium for the convenience.
What is the best location for a laundry business?
Areas with limited in-home laundry capacity, apartment blocks are a strong example, tend to generate the most consistent demand, more so than affluent areas where households typically already own washers and dryers.
What is the biggest upfront cost in starting a laundry business?
Washers and dryers, which can be a substantial investment depending on the capacity and quality you choose. Size this purchase to your expected demand rather than over- or under-investing upfront.
Getting started
Pick a location with genuine, identified demand, invest in equipment sized to that demand, and register the business properly from day one. Done right, a laundry business offers steady, recurring revenue with a relatively low barrier to entry.
Originally published in May 2022. Updated September 2026 to reflect current laundry business setup and operating costs. Costs vary by location and scale, so confirm current figures for your specific area.
