Laundry Business in the Philippines

It was the  year 2003 when this booming business got my attention. I attended a laundry business seminar which was conducted by Electrolux. They were selling second hand washers- washcator, and a 75kgs tumble dryer, but they also offer brand new units. They lectured on the factors affecting a laundry, the types of laundry business, the machines, marketing and promoting your business, business registration, financial aspects and a lot of things.

I was certain that there is more to learn at that seminar but due to time constraints not all of my questions were answered. Nonetheless, it was very informative.

Unfortunately, my attention was diverted to supplies related to laundry. I started soap making in 2006. Most of my customers are shop owners with Top Load washers. They liked my product a lot as it was so bubbly and i was just selling it for 25php a kilo. In pursuit of a better and high performance soap, i did some research and discovered that i was doing my soap all wrong. I should be producing a low suds soap.

Immediately after learning how soap should be done, i stopped making low quality, bubbly detergent. I removed ingredients that harm the water system. I started making quality low suds, high efficiency detergent.
I tried educating my customers about the advantages of using a High Efficiency (HE) detergent. Some of them would insists the bubbly one's perhaps it is cheaper. I would just tell them to buy elsewhere, however, those who bought my HE detergent are convinced that up to this time they remained a faithful customer.

We are in the business of serving other people, quality above all. A happy customer would eventually convert to a better sales.

At present, my soap is known as "OXY SOAP" short for oxygenated soap. Yes, it uses oxygen to clean your clothes. My customers loved the idea of an oxygen cleaning your clothes. It does not require the use of Clorox.

In 2008, i opened up my own shop. All my machines are front load. I also started conducting my own laundry seminar after a year. Being a soap formulator i was able to educate shop owners of using the right detergent and of course the right machine.

I am biased when it comes to machines. I  recommend Front Load because of the many advantages it offers.
In my upcoming posts i will discussed its advantages.

At present, i am hopeful that shop owners would work together and elevate the standards in pricing. Most of the prices are peg at 25php per kilo. It is high time to level up the rates. Anyway, this would fall in my wishlist.

Watch out for my next posts. I have inline the following topics:

• How to make your own Job Order Form
• Laundry Procedures
• Laundry Necessities
• Stain Removal
• Online Seminar - for FREE
• How to formulate your own Fabric Conditioner
• DIY Finishing Spray

How To Register Your Laundry Business

BUSINESS REGISTRATION
Putting up a business requires some paper work to make your business legal. The process listed here is applicable only to pinoys living here in Metro.

First thing you got to do is to register your business name. Your first stop would be the Department of Trade and Industry (D.T.I.). Prepare at least 3 to 5 names. Why? because in some cases, your desired name may already be taken. There is a form to be filled up and this form is available online.

Visit their website and check out the rates and requirements for business name registration
Here's the link: www.dti.gov.ph

When ask regarding the startup capital i suggest you specify at least two units only. One washer and one dryer. From this thought you based your startup capital.

The last time I registered a name, it only took me a day to finished everything. Same day, i got my certification.

Next step, after DTI you're next step is to go and register your business with the city government having jurisdiction over the place where you will setup your laundry business.

Prepare the following:

• DTI Certification
• Zerox copy of DTI Certification
• Current Resident Certificate
• Contract of Lease - if renting the place of business
• Baranggay Permit
• Zerox of Baranggay Permit
• Bring 1 x 1 photo - just in case

Again, if ask about capitalization, be consistent. Write the same capitalization as you did with DTI. After complying with the requirement of the city government, you will be issued a Mayor's Permit. Issuance usually takes a week, depending on the city government, it could be earlier with other city, so it varies.

Lastly, you will now go to BIR to register your business.

Bring the following:

• TIN No.
• DTI Certification
• Zerox copy of DTI Certification
• Current Resident Certificate
• Contract of Lease - if renting the place of business
• Baranggay Permit
• Zerox of Baranggay Permit
• Bring 1 x 1 photo - just in case

When ask, what tax category you would likely be, then i suggest register as NON-VAT.
and Other Taxes subject to is Expanded W/holding Tax on Rent. That is it. Don't mention Expanded withholding on compensation. Why? because most of our staff are exempt. I will discuss this in my coming post.

IMPORTANT NOTE:

You need to register your business with the BIR within 30 days from released of your DTI Certification.