Swirlz Laundromat is a proposed state-of-the-art laundry facility to be located on Route 47 in Huntley, Illinois, directly across from the Del Webb retirement community. With no existing laundromats in the village of Huntley, and with village authorities expressing high interest in having one, this presents a prime opportunity. Additionally, a newly developed apartment complex with 290 units is being built within half a mile of our location, further increasing the potential customer base. Swirlz Laundromat will offer modern laundry services and feature six slot machines as an additional amenity and income stream. By incorporating pickup and delivery services, wash-dry-fold options, and entertainment amenities, Swirlz Laundromat aims to meet and exceed the laundry and leisure needs of the local communities of Huntley and nearby Gilberts, IL.
Target Market
- Primary Market:
- Residents of Huntley, including the Del Webb retirement community.
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- Residents of the new 290-unit apartment complex within half a mile.
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- Residents of Gilberts, IL, which lacks a laundromat.
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- Secondary Market:
- Nearby businesses and households requiring laundry and leisure services, including pickup and delivery.
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Demographic Analysis
- Huntley, IL
- Population: Approximately 27,000 residents.
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- Median Household Income: Around $75,000.
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- Age Distribution: Significant portion aged 55+, especially in Del Webb community.
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- Key Insights:
- No other laundromats in the village.
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- Village authorities have expressed high interest in having a laundromat.
- Gilberts, IL
- Population: Approximately 8,000 residents.
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- Median Household Income: Around $100,000.
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- Key Insight: No existing laundromats, presenting an opportunity to capture this market.
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- New Apartment Complex
- Units: 290 units within half a mile.
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- Implication: Increased demand for laundry services, especially if units lack in-unit washers and dryers.
Market Needs
- Convenience: Busy professionals, apartment residents, and older adults require easy access to laundry services.
- Quality Service: Demand for high-quality washing and drying that preserves clothing.
- Entertainment Amenities: Availability of slot machines provides leisure activity while customers wait.
- Additional Services: Interest in pickup and delivery, as well as wash, dry, and fold services.
Competition
- Direct Competitors: None in the village of Huntley or Gilberts.
- Indirect Competitors: In-home laundry machines, dry cleaners, and online laundry services.
Organization and Management
- Owner/Manager: DeAnna Papachristopoulos and Demetri Papachristopoulos
- Responsible for overall operations, compliance with gaming regulations, marketing, and customer service.
- Staff:
- Attendants: Assist customers, maintain facility cleanliness, and monitor slot machines.
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- Drivers: Handle pickup and delivery services.
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- Administrative Assistant/Bookkeeper: Manage finances, including gaming revenue tracking.
Services
- Self-Service Laundry: Modern washers and dryers available for customer use.
- Wash, Dry, and Fold: Staff-managed service for customers preferring to drop off laundry.
- Pickup and Delivery: Convenient service targeting busy individuals and the elderly.
- Slot Machines: Six state-regulated slot machines for customer entertainment and additional revenue.
- Additional Amenities: Free Wi-Fi, comfortable seating, vending machines, and TV entertainment.
Marketing and Sales Strategy
Marketing Channels
- Local Advertising: Flyers, local newspapers, and community bulletin boards in Huntley and Gilberts.
- Online Presence: Website with service details, online scheduling, and information on gaming amenities.
- Social Media: Active engagement on platforms like Facebook and Instagram.
- Community Engagement:
- Partnerships with local businesses.
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- Participation in community events.
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- Collaboration with the village authorities who have shown interest.
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- Outreach to New Apartment Complex:
- Welcome packages for new residents.
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- Special promotions and discounts.
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Sales Strategy
- Competitive Pricing: Offering fair prices in line with industry averages.
- Promotions:
- Laundry Services: Introductory discounts, loyalty programs, and referral incentives.
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- Slot Machines: Legal promotions as permitted by state regulations.
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- Quality Service: Emphasizing customer satisfaction to encourage repeat business.
- Convenience Services: Emphasize pickup and delivery options to attract busy professionals and seniors.
Funding Request
- Total Funding Required: Approximately $420,000 - $470,000
- Use of Funds:
- Equipment Purchase/Lease: Modern washers, dryers, and slot machines.
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- Leasehold Improvements: Interior design to create a bright and inviting space with a designated gaming area.
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- Operating Capital: Initial months of operating expenses including staff salaries and utilities.
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- Licensing and Compliance: Fees associated with gaming licenses and permits.
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- Marketing Expenses: Initial advertising and promotional campaigns.
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- Lease Security Deposit and Initial Rent: Accounting for the monthly rent of $5,000.
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Financial Projections
Revenue Streams
- Self-Service Laundry Income
- Wash, Dry, and Fold Service Fees
- Pickup and Delivery Charges
- Slot Machine Revenue
- Vending Machine Sales
Estimated Startup Costs
- Laundry Equipment Purchase/Lease: $150,000 - $200,000
- Slot Machines Purchase/Lease: $60,000 - $90,000
- Gaming Licensing and Permits: $10,000
- Leasehold Improvements: $70,000
- Initial Inventory and Supplies: $10,000
- Operating Capital (6 months): $100,000
- Marketing Expenses: $10,000
- Total Estimated Startup Costs: Approximately $410,000 - $490,000
Slot Machine Financials
- Average Gross Revenue per Machine per Day: $150 - $300
- Total Daily Revenue (6 Machines): $900 - $1,800
- Monthly Revenue Estimate: $27,000 - $54,000
- Profit Sharing with State/Gaming Authorities: Typically 25% - 35%
- Net Monthly Slot Revenue: Approximately $17,550 - $40,500
Projected Income Statement (First Year)
- Total Laundry Services Revenue: $300,000
- Total Slot Machine Net Revenue: $210,000 - $486,000
- Combined Total Revenue: $510,000 - $786,000
- Cost of Goods Sold (COGS): $60,000
- Gross Profit: $450,000 - $726,000
- Operating Expenses: $270,000
- Rent: $60,000 ($5,000/month)
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- Utilities: $30,000 (higher due to slot machines)
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- Staff Salaries: $80,000 (additional staff for gaming area)
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- Maintenance and Repairs: $15,000
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- Insurance and Licenses: $25,000 (includes gaming insurance)
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- Gaming Fees and Taxes: $50,000
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- Marketing: $10,000 (increased for outreach)
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- Miscellaneous Expenses: $10,000
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- Net Profit Before Taxes: $180,000 - $456,000
Break-Even Analysis
- Monthly Fixed Costs: Approximately $22,500
- Average Gross Profit Margin: 80%
- Break-Even Revenue per Month: Approximately $28,125
Legal and Regulatory Considerations
- Gaming Licenses: Obtain necessary state and local licenses to operate slot machines.
- Compliance: Adhere to all regulations regarding gaming operations, including age restrictions and revenue reporting.
- Insurance: Acquire appropriate insurance coverage for gaming activities.
- Zoning Approvals: Ensure the location is zoned appropriately for both laundromat and gaming operations.
- Village Support: Leverage the village's high interest in having a laundromat to facilitate permits and approvals.
Competitive Advantages
- Exclusive Service Provider: No other laundromats in Huntley or Gilberts, capturing unmet demand.
- Strategic Location: Proximity to Del Webb retirement community and new 290-unit apartment complex.
- Village Support: Expressed interest from village authorities may lead to smoother operations and potential incentives.
- Comprehensive Services: Combination of laundry services, pickup and delivery, and gaming amenities sets us apart.
- Modern Facilities: Brand new equipment and a clean, inviting space enhance customer experience.
Marketing Plan
- Grand Opening Event: Host an event with special promotions to attract initial customers.
- Apartment Complex Partnership: Collaborate with apartment management to offer new resident specials.
- Senior Community Outreach: Tailored services and promotions for residents of the Del Webb community.
- Online Reviews and Reputation Management: Encourage satisfied customers to leave positive reviews on platforms like Google and Yelp.
- Email Marketing: Collect customer emails for newsletters, promotions, and updates.
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