- Country: Pakistan
- Industry: Business services, Consulting
- Stage: Expansion/Growth
- Investment size: $100,000 / min. $50,000
Laundry services field in Pakistan is a gold mine. Aiming to break into where there is hardly any competition. Funds required for set up of retail shops. Pakistan does not have laws which can increase the launch cost (ex: environment, chemical restriction,etc). Labor laws are very relaxing and the population is booming.
I started this business with a net capital of Rs. 30,000 (less than $500). My last monthly gross billing exceeded Rs. 200,000 per month (over $2,000 per month). Here's how:
Pakistan's population exceeds 190 million. Many believe this figures is inaccurate and the actual figure touches 200 million.
Only 12% of the population is considered to be 'upper class' and hence can afford external laundry services.
Some exciting figures:
Target Market = 1% of the population = 1.9 million customers
1.9 million Customers using external laundry services only once a month. Each customer wears at least 2 clothing items.
Hence: 1.9 x 2 =3.8 million clothing items for laundry per MONTH.
Minimum profit margin per item = Rs. 10
Hence: 10 x 3.8 = 38 million
Summary: If we only capture 1 % of the market (10% of the target market), and our potential customers only change their clothes once a month, and our minimum profit is Rs. 10, our month net profits is Rs. 38 million.
I've shared these numbers to show the ever growing Pakistani market and even more, the growing vacuum between the educated consumers vs. the typical uneducated laundry services provider.
My firm has attained the necessary knowledge to set up, maintain and grow this business. We are also looking for business capitol to exceed this venture and to quickly capitalize on this untapped gold mine. Feel free to contact us for any business queries.
Since the beginning laundry industry in this part of the world was considered a low class and a low end field because it lacked educated and technical people. Well, Ironman Laundry Services (ILS) is changing the way people think about laundry services in Pakistan.a
Incorporated in 2009, ILS is a sole proprietorship with its name and logo TM & R and is fast capturing this untapped goldmine.
Laundry is a simple business. All the customer wants is good quality, on time. They are willing to pay, if they get good quality delivered on time. While we are educated and being a quality conscious consumer of my own industry, we have the first hand knowledge with is missing. Currently all the industry players are generations old with no new ideas and repeating what their grandparents learned. Our focus will strictly been on these 2 key points. As mentioned above, our target market is very strong and getting stronger.
Rationale for the deal
Our opportunity is to grad the middle and upper classes with account for about 12-30% of the 190 million and ever growing population. Its a simple 'in' and 'out' services business, which is an essential need of everyone, everywhere. You simply cannot choose to not to wear clothes. If clothes are worn, then they must be washed. Pakistan has mostly warm to hot climate. This means that most part of year, more and more clothing items are much higher.
Use of financing
The funds are initially needed for set up of retails shops across the country. We will start with one city and gradually expand to the most populated urban cities. I simply don't have the funds to expand this business to the expected level, in a short amount of time. Desired amount is $100,000 to be paid in 10 quarterly installments.
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