Many people are attracted to the self-service laundry business because it can offer steady income with minimal daily staff. However, new operators often face unexpected challenges in their first year if they are not well prepared.
Here are the 3 most common and costly mistakes that many beginners make:
1. Choosing the Wrong Location
This is still the number one reason why many new laundry shops fail to perform.
Some operators choose a shop simply because the rental is cheap. They end up in industrial areas or places with very few residents nearby. As a result, customer traffic stays low no matter how good the machines are.
What you should do instead: Focus on high-density residential areas such as apartments, condominiums, PPR flats, and student hostels. These locations have people who need laundry services regularly because they lack space for washing and drying at home.
2. Using Cheap or Residential Machines
Trying to save money on machines is another frequent mistake.
Many new owners buy cheap “heavy duty” home washing machines thinking they can handle commercial use. In reality, these machines are not built for 15–18 hours of daily operation and break down very quickly.
What you should do instead: Invest in proper commercial-grade machines from the start. Reliable brands like Speed Queen are widely used in Malaysia because they are durable, more efficient, and easier to service when needed.
3. Joining High Royalty Franchise Models
Attracted by big brand names, some investors sign up for traditional franchise packages without fully understanding the costs.
High monthly royalties (often 6%–10% of sales) plus other fees can eat heavily into profit after paying rent, electricity, and water bills.
What you should do instead: Look at licensing models instead. They usually charge only a fixed yearly fee with zero royalties, giving you full control and allowing you to keep 100% of your earnings.
Dobi Land helps you avoid these mistakes from day one. Find out how.