Is This a Good Idea for a Business?

Q. I have a business idea that involves offering in-house laundry service to houses in my neighborhood. I would hire some people to go to other people’s houses and do their laundry for them. In some cases, I might just have them pick up the laundry and take it to a local laundromat.

I am an at-home mom, and I know I would use this service. Do you think it’s a good idea? How would I go about starting it and what should I charge?

Thanks tons!

A. Dear Deborah,

Congratulations! You’ve already taken the first step toward starting your business. You’ve identified an existing need in the marketplace and generated a way to meet that need in the form of a service.

Every small business begins with an idea just like yours. Ultimately, you’ll only know how good your idea is once you’ve started offering your services in the marketplace. However, there are some simple things you can do to prepare for the day when your concept makes the transition from a good idea to a start-up small business.

1. Research the Market
Your service may sound good to you, but what do other people think? If at-home moms are going to be your target market, start talking to your at-home mom friends about your idea. Ask questions about the type of service they’d prefer. Would they rather have their laundry done on or off their premises? Would they be willing to pay extra for ironing? You may discover that at-home moms aren’t nearly as excited about your idea as working moms. Be flexible and adapt your idea to meet the demands of the marketplace.

2. Develop a Business Plan
The next step is to develop a business plan, i.e. a written document that covers everything from start-up costs to business goals. In their rush to start doing business, many would-be business owners skip over the business plan and jump head first into the marketplace without having considered what they are getting themselves into.

If you’ve never done a business plan before, don’t panic. You probably know someone who can help you get started. If not, the internet is filled with resources designed to help you construct a business plan and lay a solid foundation for your business.

3. Create a Buzz
Before you wash your first dirty sheet, you’re going to have to get the word out about your new business. There are many different ways to do this, but the most common way (especially for a small start-up) is word of mouth promotion. Start with your friends and family members since they will most likely be your first customers. They will also be the ones who will be most likely to refer your services to other people. You may want to print some brochures and business cards to help them spread the word about your services.

4. Price Your Product
The principles of supply and demand are governed by the idea that products and services are sold at the highest price the market will bear. If similar businesses already exist, you can use their prices as a gauge to determine how much the market is willing to pay for your service.

If similar businesses don’t currently exist, then you’re going to have to start from scratch. Begin by asking yourself how much you would be willing to pay for your service, and be honest. Then it’s back to the playground to ask other moms how much they would be willing to pay for the service. It won’t take long to learn how much your clients will be willing to pay for your service.