In a city neighborhood just outside Quezon City, my former college batchmate Jenny started a small laundry shop with just two second-hand washers and a dream. Today, her shop handles over 500 kilos of laundry a week, and she still can’t keep up with the demand.
Laundry businesses, especially in urban centers, are among the most surprisingly resilient micro-enterprises in the Philippines. Whether you’re a full-time entrepreneur or just someone looking to start a side hustle, 2025 is shaping up to be a great year to get into this service industry.
With the rise of condo living, busier lifestyles, and even the popularity of self-service laundromats, more Filipinos are choosing convenience over doing laundry themselves.
Let’s explore how you can ride this wave and build your own profitable laundry business, even on a budget.
Yes, and it can be very rewarding, especially if you choose the right model for your market.
A typical laundry shop in a busy area can earn between ₱40,000 to ₱150,000 per month, depending on foot traffic, service quality, and number of machines. Start-up costs can range from ₱150,000 for a small home-based setup to ₱1.5 million for a full-service laundromat with high-end washers.
What makes this business model attractive?
Scalable: Start small, grow as demand grows
Not all laundry businesses are the same, and that’s a good thing. You can choose one that fits your budget, location, and lifestyle goals.
Ideal for: Stay-at-home parents or side hustlers
Initial capital: ₱50,000 to ₱150,000
A student I once interviewed in Iloilo runs a weekend-only laundry service from their garage using a single washer and Facebook Messenger to take orders.
You handle everything from washing and drying to folding and even delivery.
Initial capital: ₱300,000 to ₱800,000
This setup is great for high-traffic areas or neighborhoods with many condos.
Customers do their own laundry with your machines.
Capital required: ₱800,000 to ₱1.5 million
Popular near universities, office hubs, and high-density residences.
Ideal for those who want a plug-and-play model with branding and systems.
Franchise cost: ₱250,000 to ₱2 million
Well-known brands in the Philippines include Suds, Quicklean, and Laundry Lounge.
Here’s a basic breakdown depending on the type of laundry business you want to start:
Setup Type | Estimated Cost | Inclusions |
Home-Based | ₱50,000 to ₱150,000 | Washer, dryer, detergents, packaging supplies |
Full-Service | ₱300,000 to ₱800,000 | Machines, shop rental, staff, signage |
Coin-Operated | ₱800,000 to ₱1.5 million | Industrial machines, tokens, renovations |
Franchise | ₱250,000 to ₱2 million | Franchise fee, equipment, branding, training |
Tip: Save money by buying pre-loved machines or sourcing through online local marketplaces. Always inspect before purchasing.
Let’s walk through the practical steps of getting your laundry shop up and running.
Before investing anything, assess your area:
Spend time observing your community. Visit laundromats, ask questions, or better yet, experience the service as a customer.
To operate legally, register your laundry business with:
You can complete your business name registration through the DTI’s official portal.
Pick a spot with heavy foot traffic, access to clean water, good drainage, and enough space for machines and customer waiting areas.
Check the building’s water pressure and power supply. These affect machine performance and daily operations.
Here’s a starter checklist:
Brands like Whirlpool, LG, and Samsung are known for their durability and energy efficiency.
If you’re starting a full-service setup, 1 to 2 trained staff is enough.
Focus on:
A good staff experience often becomes your best marketing tool.
Typical pricing:
Survey the rates of competitors nearby. If your services are better or faster, you can price slightly higher.
Build visibility from day one.
You can also partner with dorms, BPOs, or sari-sari stores to get more referrals.
One inspiring story comes from Maricel, a single mom from Calamba. She started her laundry shop in 2020 with a loan and a lot of prayer. At first, it was just her and one machine. Today, she has two helpers and handles pick-up services for four nearby boarding houses.
“I started with one customer, my neighbor,” she told me during a podcast episode. “Now, I serve entire buildings.”
Her advice? Focus on good service and keep your customers happy.
No business is without issues. Here are common problems laundry shop owners face, and how to overcome them.
Challenge | Solution |
High electricity bills | Use inverter machines and schedule loads wisely |
Machine downtime | Set maintenance routines and have a backup tech |
Water interruptions | Install a 300 to 500-liter tank for emergencies |
Competing low prices | Win on service quality, cleanliness, and speed |
If you prefer a business with structured systems, a franchise might be ideal. It offers support, branding, and marketing resources.
Top franchises in 2025:
Weigh the pros and cons carefully. Franchises often come with royalty fees and strict guidelines, but they also reduce your learning curve.
Getting started often requires funding that goes beyond personal savings. This is where Radiowealth Finance Company can be a valuable partner.
RFC has supported thousands of Filipino entrepreneurs with:
If you are ready to take the leap but need financial assistance, RFC can help you cover the capital gap and launch with confidence.
Yes. Starting a laundry business in the Philippines this year is not only profitable but also practical. You’re solving a real-world problem for busy people while creating steady income for yourself.
Whether you’re working out of your home or opening a fully equipped shop, you can start with what you have and grow responsibly over time.
Remember:
At Radiowealth Finance Company (RFC), we know that small business ideas need solid support. For over 60 years, we’ve helped Filipino entrepreneurs launch and grow service-based businesses like laundry shops with flexible loan options and local understanding.
If you’re planning to start your own laundry business, RFC can help fund your equipment, renovations, or even franchise costs.
Learn more about our business loan solutions at Radiowealth Finance Company. Your laundry business can be the start of something bigger.
Let us help you make it happen.
Startup costs range from ₱50,000 for a home-based setup to ₱1.5 million for a full-service or self-service laundry shop. A franchise setup can cost between ₱250,000 to ₱2 million depending on the brand.
Yes. A laundry shop in a good location can earn between ₱40,000 to ₱150,000 per month depending on customer traffic, pricing, and service quality.
You can choose between a home-based laundry service, a staffed full-service laundry shop, a coin-operated laundromat, or a branded laundry franchise.
You need to secure a DTI registration, barangay clearance, mayor’s permit, BIR registration, and other local government permits depending on your area.
Look for areas with high foot traffic such as near condominiums, boarding houses, office hubs, or residential neighborhoods. Make sure the location has strong water pressure and consistent electricity.
Basic equipment includes washing machines, dryers, a water tank, weighing scale, ironing board, packaging materials, and detergents. Energy-efficient brands like LG or Whirlpool are recommended.
For full-service or medium-sized setups, 1 to 2 trained staff is usually enough. For home-based or small-scale operations, you can start solo and expand as needed.
Use Facebook Pages, neighborhood groups, local Google listings, loyalty programs, and partnerships with nearby dorms or small businesses to attract and retain customers.
Common issues include high utility bills, machine downtime, water supply interruptions, and pricing competition. These can be addressed through efficient equipment, backup plans, and great customer service.
Yes. Radiowealth Finance Company offers flexible loans to help you fund equipment, shop setup, or even franchise costs, with personalized support for Filipino entrepreneurs.
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