`

Brand New
Laundromat
Location:
1419 Haddon Avenue
Camden, NJ

Confidential
Memorandum
Business Plan
February 2013
Bridget Phifer
Executive Director
Parkside Business and Community in Partnership, Inc
E-mail: bphifer@pbcip.org
Craig L. Sawyer
Business Consultant
ESR Advisors
E-mail: csawyer@esradvisors.net

The Atlantic

CONFIDENTIAL

Table of Contents
Mission and Statement of Purpose ........................................................................................................................ 3
Notice to Potential Equity Business Partners ......................................................................................................... 4
Business Concepts....5
Management Team .. ............................................................................................................................................. 8
Industry Analysis.................................................................................................................................................... 5
Target Market ......................................................................................................... Error! Bookmark not defined.
Sustainability..8
Products and Services ........................................................................................................................................... 8
Customer Experience ........................................................................................................................................ 200
Location .................................................................................................................. Error! Bookmark not defined.
Competition and Risks ......................................................................................................................................... 13
Marketing and Promotions ...................................................................................... Error! Bookmark not defined.
Business Structure.................................................................................................. Error! Bookmark not defined.
Investment Considerations .................................................................................................................................. 18
Financial Data ......................................................................................................... Error! Bookmark not defined.
Sources and Uses of Funds ................................................................................................................................. 19
Profit and Loss Projections20
Appendix......

The Atlantic

CONFIDENTIAL

Mission and Statement of Purpose

Parkside Business and Community in Partnership Inc. (PBCIP), a community-based, membership-driven,
professionally managed, non-profit organization, plans to acquire and renovate the property at 1419
Haddon Avenue to create a turn-key, high performance Laundromat in the Parkside/Whitman Park
community of Camden, New Jersey.
PBCIP primary objectives are to bring a high quality, neighborhood Laundromat to Haddon Avenue and
improve this unattractive corner property, provide business and employment opportunities for local
residents, and further advance economic investment and development on Haddon Avenue. The
secondary objective will be to generate earned income to further support PBCIP mission. Parkside
Business and Community in Partnerships mission is to build a vibrant neighborhood in Parkside through
advocacy, collaboration and commitment, guided by sustainable practices to achieve a green
community.
The Atlantic will serve as the self-service neighborhood Laundromat and it may also offer convenience
drop-off laundry and dry cleaning services to local residents and businesses. The business will contract
with a local dry cleaning company to provide the dry cleaning services. The mission of The Atlantic will be
to provide high quality laundry services in a sustainable manner.
Parkside Business and Community in Partnership is seeking to identify an equity business partner to:
1) Manage the day-to-day operations;
2) Market the business; and
3) Provide working capital to support the first-year operations of the business.
PBCIP may retain partial ownership of the business, and this business plan is intended to serve as a guide
for the social entrepreneur to assess the merit and viability of this business venture.
The Atlantic

CONFIDENTIAL

Notice to Potential Equity Business Partners

Parkside Business and Community in Partnership, Inc.
(PBCIP) is furnishing this confidential memorandum
(the Business Plan) solely for the consideration of
potential equity business partners, who have
knowledge and experience in operating a for-profit
business venture and who will conduct their own
due diligence investigation and evaluation in
connection with the business opportunity described
in this business plan.
PBCIP and its respective affiliates, employees and
representatives make no representation or warranty,
express or implied, as to the accuracy or
completeness of the information contained herein
or any other information (whether communicated in
written or oral form) transmitted or made available
to potential partner.

Inquiries related to the information contained in this

Memorandum should be directed to:
Bridget Phifer
Executive Director
Parkside Business and Community in Partnership
E-mail: bphifer@pbcip.org
Craig L. Sawyer
Business Consultant
ESR Advisors
E-mail: csawyer@esradvisors.net
PBCIP
1487 Kenwood Avenue
Camden, NJ 08103
Telephone: 856.964.0440
Fax: 856.964.3664

PBCIP
and
its
affiliates,
employees
and
representatives expressly disclaim any and all liability
relating to or resulting from the use of this
Memorandum or other such information by potential
equity business partner.
This Memorandum presents information with respect
to The Atlantic as of the date listed above. The
Company reserves the right to update or otherwise
revise this Memorandum following its distribution.

The Atlantic

CONFIDENTIAL

Business Concept
The Atlantic will serve as a neighborhood-based,
eco-friendly Laundromat located at 1419 Haddon
Avenue in the Parkside/Whitman Park neighborhood
of Camden, New Jersey. Laundromats, is defined
as commercial grade, self-service laundry
equipment placed into service in a retail space.
However, The Atlantic may also provide wash and
fold service and off-premise dry cleaning services.
Parkside Business and Community in Partnership
(PBCIP), a community-based, membership driven,
non-profit organization, plans to acquire 1419
Haddon Avenue and make a considerable
investment to renovate the single-story, 1,450 square
foot facility and install new energy efficient
commercial grade equipment, lighting and
mechanical systems.
The facility is currently a privately owned and
operated Laundromat in need of improvements.
The existing Laundromat will be totally revamped,
both physically and operationally. The brand, The
Atlantic, will embrace the mission of PBCIP and
provide a unique experience combining quality
service within an eco-friendly, educational and
community friendly environment.
The Atlantic

The Atlantic will not serve just as a Laundromat but

also a neighborhood destination and attraction.
The renovated facility will tell the story behind
sustainability and community engagement. Besides
energy efficient washers and dryers, the facility will
contain pictures, displays and rotating exhibits
designed to education customers and visitors about
the benefits of going green and the sustainable
features used at the site. A small comfortable
atmosphere will be created to encourage
continuous repeat use and visitation and to
reinforce the value of sustainable practices.
The operational strategy will be to lease the turn-key
operation to a local entrepreneur to own and
manage the business.
PBCIP may retain partial
ownership, depending on the experience, expertise
and equity of the entrepreneur selected.

Management Team
The business operator will be supported by PBCIP,
through the services of ESR Advisors, who possesses
a similar commitment toward sustainable business
practices and the creation of a vibrant business
district in Parkside.

CONFIDENTIAL

Craig L. Sawyer, Business Consultant with PBCIP, will

serve as part of the management support team.
Craig Sawyer is Principal and Managing Partner of
ESR Advisors, formerly Equitable Development
Consultants, L.L.P., a community economic
development consultancy firm. Established in 2002,
the firm has consulted and assisted numerous
organizations and businesses in a wide range of
community-based economic development projects,
especially commercial district revitalization, real
estate development, job creation/entrepreneurship
development, and social enterprise development
initiatives.
Craig has more than 20 years of experience helping
organizations implement economic development
plans and development strategies to bring visions of
vibrant and healthy communities and businesses to
life.
Business Advisors
The Business Operator will also have access to
accounting, marketing and legal professionals
provided by PBCIP. PBCIP will be able to provide
recordkeeping, reporting and other services for the
business at a nominal, competitive fee.

The Atlantic

Industry Analysis
Industry growth within the Laundromat industry is
based on the demographics of population density
and income. The more concentrated the
population, the greater the need for quality laundry
facilities.
The industry market size grows
proportionately to the increase in population, as the
public will always need this basic health service
people always need to wash clothes!
National and regional demographics indicate
renters, the primary users of coin laundries, are the
fastest-growing segment in the nation. As of the
2010 U.S. Census, 63.2% of the area neighborhood's
8,568 households were renter occupied households,
an
increase
from
the
2000
Census.
The Laundromat industry is a mature, stabilized
industry with predictable rates of turnover and
values. Laundromats are unique small businesses in
that they have no inventory or receivables, and only
minority of coin laundries employs attendants.
Laundromats are prefect examples of passive
income generators. Laundromats generally occupy
retail space on long-term leases (10-25 years) and
generate steady cash flow over the life of the lease.

CONFIDENTIAL

The industry thrives in periods of both growth and

recession. During periods of recession, when home
ownership decreases, the self-service laundry
market expands as more people are unable to
afford to repair, replace or purchase new washers
and dryers, or as they move to apartment housing
with inadequate or nonexistent laundry facilities.
Operationally, Laundromats operations consist of
three basic areas: janitorial, maintenance, and the
handling of money (which consists of collections
and loading coin changers).
Bookkeeping,
administration, and banking are typically off-site
management areas.

Target Market
The primary customer base will be the residents of
the Parkside and Whitman Park community, who do
not have a washer and dryer within their home or
apartment. According to the 2010 U.S. Census,
approximately 50% of the residential households do
not own a washer or dryer, and over 60% of the
neighborhoods households live in rental housing,
almost doubled the states average of 35%. This was
supported by a sample survey of 97 community
residents which showed that 54% of local residents
do not own a washing machine and 62% do not
own a dryer in their home or apartment.
The Atlantic

The area population demographics consist of 25,370

people with a marginal growth rate according to
the U.S. Census. The area median income is $26,296
with a per capita income of $13,247. Based on the
2007 Consumer Expenditure Surveys, Bureau of
Labor Statistics, the population spent an annual
average of $107/per on laundry and cleaning
supplies.
This profile serves well the proposed
business in the Parkside/Whitman Park community.
The secondary market will consist of the local nonrental population, who owns laundry equipment in
their home or apartment and uses commercial
Laundromat only occasionally. According to the
survey of community residents, 32.5% of the
population who have a washer or dryer in their
home or apartment, use laundry facilities outside the
home at least once a month.
Also, the Laundromat may attract a few carbon
conscious consumers from throughout the city of
Camden and elsewhere who want to support the
business mission and purpose.
It is estimated that the business can generate about
$75,000 annually in sales. The former Laundromat
grossed around $60,000 year.

CONFIDENTIAL

Sustainability
Laundry may seem like a basic chore, but doing the
laundry has a bigger impact on the planet than
many people realize.
Between 75-80% of our
clothings lifecycle impact comes from washing and
drying because it takes so much energy to heat the
wash water and run the dry cycle. So there is huge
potential to reduce a persons energy and water
use, and therefore their environmental footprint, by
simply greening their laundry habits.
The Atlantic will serve as a sustainable Laundromat.
Sustainable, not only as a sustainable company who
enjoy profit to ensure the continuity of the company
over the long term and income to PBCIP but also as
a responsible company for the health and wellness
of customers, employees and the environment. The
Atlantic will limit its adverse effects to the planet and
the environment by an efficient use of natural
resources (water, energy, chemicals), and limiting
the environmental burden by waste disposal and
emissions to water and air.
More specifically, The Atlantic will seek to implement
the application of sustainable laundry technology to
achieve a more efficient use of water and energy.
The business will also incorporate sustainable
practices in its operations.

The Atlantic

Some sustainable projects for consideration:

Waste water treatment to enable water reuse in the laundry process;
Solar panels to generate power for dryers or
building;
Application of warm but purified water in the
laundry process to reduce energy
consumption;
Receptacle for recyclable materials; and
Vending machines with toxin-free detergents

Products and Services

The Atlantic mission and image will transcend every
detail of the Laundromat and total customer
experience. The Atlantic will serve as a clean, ecofriendly,
quality
self-service
neighborhood
Laundromat that provides ancillary laundry services
to complement The Atlantic brand.
PBCIP plans to replace the 18 outdated top-loading
washing machines and 16 gas-fired dryers installed
in the facility with new high-efficiency, ENERGY STAR
labeled, washers and dryers. The Atlantic may keep
the six relatively new front-loading heavy duty
washing
machines
in
operation.
For
any
malfunctions of the machines, an attendant will be
either on-site or on-call, depending on the specific
time of day, and a reputable service technician will
service the equipment.
CONFIDENTIAL

Depending on cost, the laundry equipment may be

installed with courtesy pay card terminals.
The
terminals will allow customers to pay by using their
courtesy cards to start any washer or dryer without
interfering with the coin drops on typical machines.
This system will reduce the volume and frequency of
handling change and make it more convenience
for customers. A Smart Card Transaction Reader
would be installed to replace the existing coin
machine. The courtesy card will also help build The
Atlantic brand and customer loyalty.
Based on a survey completed by local residents, The
Atlantic may be able to provide profitably several
convenience laundry services such as wash/fold
service and dry cleaning services. An attendant
would be made available on a limited basis to
receive clothes for wash/fold services and offpremise, dry cleaning services. The business will hire
additional personnel as demand for the wash/fold
services increases, and a dry cleaning company will
be contracted to provide the dry cleaning service.
Profitability will be frequently assessed to determine
the continuation of these services.
The Atlantic will also offer ancillary products for sale,
such as green and concentrated laundry detergent,
bleach, stain remover, dryer sheets and other brand
name laundry supplies. In addition, the store will sell
convenience products such as water, treats and
The Atlantic

non-perishable healthy snacks. The existing soda

machine may remain in the Laundromat.
According to the responses from the customer
survey, when asked would you prefer to have the
following products or services available for purchase
at the Laundromat, the response was as follows:
90%
41%
41%
27%
24%
16%

Soap and Laundry Supplies

Water and Soft Drinks
Snacks
Dry Cleaning Services
Wash/Fold Services
Video Games

Three or four flat-screen televisions will be mounted

on the wall near the seating area to offer customers
entertainment while they wait. Also, The Atlantic will
provide free Wi-Fi service.
Special consideration will be given to ensure the
Laundromat will remain clean at all times and
periodic bathroom checks will be made throughout
store operations. A local resident will be hired to
provide daily janitorial services. Also, a maintenance
agreement will be executed with an established
equipment service dealer. In addition, security
cameras will be strategically installed through the
facility for security and safety.

CONFIDENTIAL

Customer Experience
The Atlantic will educate community residents and
customers about water and energy conservation,
clean energy alternatives, sustainable living, and
environmentally responsible business practices in a
non-evasive, non-intimidating community friendly
manner.
Besides the development of mixed-income homes,
Parkside Business and Community in Partnership is
actively working to revitalize the commercial district
on Haddon Avenue to create a place where work,
quality shops, great dining, excellent schools and
leisure activities exist to produce a desirable and
sustainable neighborhood.
The flagship project is the development of the
RENEW building located one block away from The
Atlantic site on Haddon Avenue.

The RENEW Building

The RENEW building will be a LEED Certified
commercial building home to several commercial
tenants, including the PSE&G Sustainability Center.
The PSE&G Sustainability Center will include handson museum style exhibits, graphic panels, media
interactive exhibits and workshops to engage folks,
of all ages, on sustainable activities and lifestyles.
The center is designed to engage visitors in handson discovery that will give them the practical
knowledge, tools and inspiration to adopt a more
sustainable lifestyle and reduce their environmental
impact.
The Atlantic will serve as an unofficial extension of
that vision.

The Atlantic

CONFIDENTIAL

10

Location
The Atlantic will be located at 1419 Haddon
Avenue, a highly visible corner location on Haddon
and Atlantic Avenue, in Camden, New Jersey. This
site on Haddon Avenue is in the Parkside/Whitman
Park community and sandwiched between two
expanding medical institutions Coopers Hospital
and Our Lady of Lourdes Medical Hospital and two
major development projects.
The site has convenience parking in front of the
Laundromat and possibly additional space in the
building rear for expansion.
Even though the
Laundromat is located in a relatively poor
community in Camden, over 90% of the residents
surveyed stated that convenient parking was either
very or somewhat important. Whereas, less than 9%
stated that parking was not important.
Facility
The footprint of the single-story structure is 1,485
square feet, with a building capacity of 30 persons.
The exterior of the building will be completing
overhaul with the replacement of its roof and front
faade. Also, PBCIP plans to replace the existing
windows, doors, lighting and signage.

The interior will receive new wall finishing, flooring

and lighting, and an improved bathroom. Also, the
space will be designed to allow greater comfort
and space for folding clothes and for customer
seating. The estimated cost for the renovation
ranged from $150,000 to $200,000.
The purpose behind the renovation is to bring a
clean, attractive, high quality, green Laundromat
to the Parkside/Whitman Park neighborhood. In
addition, this project will help enhance curbside
appeal at this highly visible corner and help create
an environment conducive to further economic
investment and development on Haddon Avenue.
PBCIP will seek to secure grant funding and debt to
pay for the renovations. Already, PBCIP applied to
the City of Camdens Program Offering Widespread
Energy Efficiency Reduction (POWER) program to
defray the cost for the investment of energy
conservation measures. Based on the program
inspection, the property is eligible for all new
lightings and upgrades to the HVAC system. In
addition, the Citys Urban Enterprise Zone will
finance improvements to the exterior faade of the
building. The UEZ program will provide a $25,000
grant to improve the faade of the building.
The building renovations will comply with ADA and
NJ State building codes.

The Atlantic

CONFIDENTIAL

11

PBCIP hopes to commence construction in the

month of July and August, and reopen the
Laundromat as, The Atlantic, in September 2013.
Currently, PBCIP seek to identify an entrepreneur,
who may serve as a business partner to PBCIP, to
own and manage the business.

1419 Haddon Avenue Building Faade

Existing Condition
Lease Arrangement
Parkside Business and Community in Partnership
currently has a purchase agreement to acquire the
property at 1419 Haddon Avenue and the assets of
the existing Laundromat for $190,000. As part of the
agreement, PBCIP addressed all environmental
issues with the site and is currently waiting to receive
a Response Action Outcome (RAO) letter from the
States License Site Remediation Professional.

The business will lease the entire premise from PBCIP.

Parkside Business and Community in Partnership will
maintain 100% ownership of the property and may
retain partial ownership in the business.
The
percentage of ownership, if any, in the business will
be negotiated with the prospective business
partner.
Lease terms
Rent: $2,500 triple net with 5% escalation in Yr. 4
Term: 10 years with option
Maintenance/Repairs: Tenant responsibility
PBCIP may acquire funds to replace the equipment
with high energy efficiency and water conservation
measures. If so, this cost will be pass through to the
business partner. Also, the business partner must
agree to incorporate sustainable business practices
in its operations.

PBCIP expects to close on the property sometime in

April/May 2013.
The Atlantic

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12

Competition and Risks

This section describes the similarities with, differences
between, The Atlantic and the competition, and the
competition advantage or threat. It also lists the
distance from The Atlantic.
Gag Laundromat
1783 Norris Street, Camden, NJ (.57 miles)

Description. Small neighborhood Laundromat

located in the Whitman Park community; 1 yr
in business; no attendant; street parking; and
only one small TV on-premise.

Equipment: 7 Washers/12 Dryers

Threat. Very limited. Threat is only due to

close proximity to some Whitman Park
residents, specifically local residents without
transportation.

Maytag Equip Laundromat

1541 Mt. Ephraim Ave, Camden, NJ (.62 miles)

Description. Mid-size Laundromat on major

neighborhood commercial corridor; facility in
poor condition with outdated machines; no
parking available and no special amenities;
f/t attendant; 20+ years in business;

Equipment: 32 Washers/18 Dryers

Threat. No real threat except for residents

within short walking distance

Competitive Advantage. Convenient location

for residents living in short walking distance
only

Ultra Stop Laundromat

104 Haddon Ave, Collingswood, NJ (.99 miles)

Description. Mid-sized Laundromat located on

busy commercial corridor; 10+ years in
business;
full-time
attendant;
wash-fold
service; laundry supplies available; clean
facility; TV and Wi-Fi Service, ATM, and
relatively new coin machines.

Equipment: 24 Washers/32 Dryers;

Competitive Advantage. Convenient location

for those living within walking distance to the
Laundromat.

The Atlantic

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13

Threat.
The Laundromat will pose a
competitive threat.
The Laundromat will
attract a small population of Parkside and
Whitman
Park
residents
due
to
its
Collingswood location only.
Competitive Advantage. None, except for
established loyal customer base among some
Parkside or Whitman Park customers who may
prefer Collingswood over the City of Camden.

Hing Self-Service Laundromat

2201 Federal Street, Camden, NJ (1.12 miles)

Village Laundromat
300 N. 27th Street, Camden, NJ (1.42 miles)

Description.
Small
neighborhood
Laundromat; No attendant; No parking; clean
but not attractive;

Equipment: 18 Washers (new)/26 Dryers

Threat. No threat

J&K Laundromat
2994 Mount Ephraim, Haddon Twp, NJ (1.64 miles)

Description. Regional, busy Laundromat on

commercial district; limited parking; full-time
attendant; wash/dry fold service; lots of outof-order machines; facility clean and in good
condition;
spacious facility and laundry
supplies available;

Description.
Large,
busy
regional
Laundromat; plenty of parking; 45 available
spaces; free dryer with wash; dry cleaning
service; ample laundry supplies available;
drop-off service; TVs and video games; Wi-Fi
service, chairs and lounge area

Equipment: 43 Washers/48 Dryers;

Equipment:
Reader;

Threat. Small threat do not offer sufficient

amenities to continue to lure enough residents
from the Parkside community;

Threat. Major Direct Competitor

Competitive Advantage. Card Reader; Video

games activities for the children; Lounge
Area

Competitive Advantage. Federal Street

The Atlantic

CONFIDENTIAL

78 Washers/84 Dryers; Card

14

Yorkship Laundromat
1186 Yorkship Square, Camden, NJ (1.76 miles)

Description.
Small neighborhood-based
Laundromat; old equipment except for the
larger washers; full-time attendant; and no
television on-premise

Equipment: 17 Washers/12 Dryers

Threat.

No threat

Liberty Laundromat
3905 Federal Street, Pennsauken, NJ (2.06 miles)

Description.
Large busy Laundromat with
plenty of parking (30 parking space plus onstreet parking); 6+ year in business; f/t
attendant; new equipment; several television
monitors and video games; clean and
relatively attractive facility.

Equipment: 56 Washers/48 Dryers;

Threat. Will attract some Parkside residents

Competitive Advantage. None. The Liberty

will have no major competitive advantage
over The Atlantic except for already
established customer base and larger facility
for greater comfort.

The Atlantic

There are a few high quality Laundromats in the

surrounding towns such as Cherry Hill, Audubon and
Haddon Heights accessible to those with
transportation and willing to drive at least 15
minutes. These Laundromat will continue to attract
some Parkside and Whitman Park residents.
The following is a list of the steps taken to study the
competition:

Visited each Laundromat;

Observed the store cleanliness and the
condition of the laundry equipment;
Recorded the Laundromat equipment and
parking capacity and hours of operations.
Observed the business volume during different
times of the day;
Recorded each Laundromat prices &
promotions, if any.

The competitive advantages that Atlantic will

possess to attract Parkside and Whitman Park
residents are:
Convenient Location
Renovated Facility with Parking
New Laundry Equipment
Flat Screen TVs and free Wi-Fi Service
Accessible Attendant
Convenient Services (wash/fold; dry
cleaning)
Community Owned
CONFIDENTIAL

15

Marketing and Promotions

The primary trading area will consist of the people
who live within a mile from the Laundromat which
consists of residents from the Parkside, Whitman Park
and portion of the Gateway community. We do not
anticipate a customer base outside of the City of
Camden.
The marketing plan will consist of exceptional
service, occasional promotions, and participation in
community branding opportunities.
Customer Service. Customer satisfaction will be the
most important objective of the business. The goal
will be to offer superior customer service through
high quality service, reliable machines and
convenience at a competitive price.
A
maintenance agreement with be put in place to
ensure the equipment are repaired properly and
promptly.
The Atlantic will provide regular scheduled staffing
while maintaining a high level of quality, courteous
service. When staff is not on-site, The Atlantic will
ensure that each customer has access to the
required assistance they deserve. Staff or business
partner will be available anytime during store hours,
when needed, by calling a local number posted on
the wall.
The Atlantic

Publicity and Partnerships. Parkside Business and

Community in Partnership will: 1) Promote The
Atlantic through its community outreach efforts and
various marketing outlets. PBCIP also intends to
represent the business at appropriate community
events, especially PBCIP sponsored activities and
events, and help the company gain entry into local
media outlets.
Promotion will include:

Grand Opening

Print fliers and posters that can be distribute freely

to area households to announce the grand
opening and special promotions

Social network marketing including PBCIP

website, Facebook, e-mail list and other on-line
strategies

Outdoor signage

PBCIP community and special events and

Features in local businesses

advertisements and promotions.

CONFIDENTIAL

publications,

16

Pricing

Business Structure

The Atlantic pricing strategy will mirror its primary

competitors.

The recommended legal structure for the business

will be a limited liability corporation. Final decision
will be made in the negotiations with the
prospective business partner.

Washer:
Top Load 20Ibs Double Load 30Ibs Triple Load 45lbs Super Load 90Ibs -

$ 2.50
$ 3.25 3.75
$ 4.25 4.75
$ 8.00 8.50

Dryer:
8 min/quarter ($.03125/min)
J&K promotes free dryer time with washer but their
regular dry time cost is higher at $.45 for 10 min. (This
is equivalent to $.045/min.), not really a bargain.
Hours of Operation
The recommended hours of operation:
Weekday: 6:00 a.m. to 8:00 p.m.
Saturday: 7:00 a.m. to 7:00 p.m.
Sunday: 7:00 a.m. to 6:00 p.m.
An attendant will be available from opening to
10:00 a.m. on weekday and 12:00 p.m. on weekend,
and after 4:30 p.m. to close. This is the preferred
time to visit the Laundromat for wash/fold or dry
cleaning service according to the customer survey.
The Atlantic

If PBCIP decides to maintain full ownership of the

business, its attorney should be consulted to
determine if the business should be a for-profit or
non-profit corporation.
Business Name
The Atlantic is the pseudo name for the new
Laundromat.
A name search will be conducted
and the actual name will be decided by PBCIP, the
Business Partner or both.
Licenses and Permits
A self service laundry license is required by the City
of Camdens Bureau of License & Inspections. The
fee is $27.60 per machine plus $172.50 annual fee.
Also, the State of New Jersey Weights and
Measures conduct an annual assessment of all
timing device.
Laundry service is exempt from State sales tax.

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17

Investment Considerations
PBCIP wants the potential business partner to
consider several important and attractive features
or benefits of this business opportunity.

Parkside Business and Community in Partnership.

PBCIP is an ideal partner who will constantly
market and promote the business to local
residents. PBCIP may retain partial ownership,
depending on the experience, expertise and
equity of the entrepreneur identified.

PBCIP will provide a turnkey operation. PBCIP will

make a considerable investment to renovate the
facility and install new energy efficient
commercial grade equipment and mechanical
systems.

The Atlantic concept is unique. There is no high

performance, high quality Laundromats in the
community, and few will have the cache and
distinct branding that The Atlantic can deliver.

An exceptional management team of seasoned

professionals will support The Atlantic.
The
management team is experienced business
consultants, who are committed to the success
of the venture, led and supported by PBCIP and
the Parkside community.

The Atlantic

Low start-up capital requirements. The equity

business partner does not have to invest
considerable amount of up-front capital. Sweatequity will be the primary source of investment.

Established client base. The current business

operation has a loyal client base, and according
to responses from the customer survey, there is
opportunity to capture a greater market share.
Almost 60% of the residents surveyed use
Laundromat facilities at least once a month, and
many travel outside the neighborhood.

In the long term, The Atlantic has the potential to

generate additional revenue through expansion
and ancillary sales. As the company grows, so
will opportunities to expand and provide
complimentary services such as commercial
laundry services, dry cleaning services and
ancillary products including laundry bags, t-shirts
and other branded products for sale.

NOTE:
The prospective business equity partner
interested in this business opportunity is advised to
consult the appropriate professionals and experts
before making any major decisions. The potential
business partner should also conduct their own due
diligence and evaluation in connection with the
business opportunity described in this business plan.

CONFIDENTIAL

18

Financial Data

Sources and Uses of Funds

The financial projections are not guaranteed. The

data is based on a number of assumptions, which
are subject to significant uncertainties. Therefore,
there is no assurance that the projections will be
achieved.

Sources

The core assumptions that drive the financial

projections:

Total Sources

Owners Equity

$12,500

PBCIP Equity

Negotiable
$12,500

Established client base.

The existing
Laundromat does approximately $60,000 in
gross sales annually.

Uses
Space Build out

$0

Sustainable growth. The assumption is based

on a sharp increase in sales, 25% and 20%
respectively, in Years Two and Three. Then,
slow growth in companys sales in Year 4 and
Year 5 of 5% before sales become flat.

Exterior Signage

$5000

Legal/Incorporation/License

$3000

Equipment Lease

$2000

No Owners Salary. The company will focus

on increasing profits and generating cash for
the partners prospective business partner
and Parkside Business and Community in
Partnership. Therefore, PBCIP has chosen to
eliminate the owners salary in an effort to
increase
short-term
cash
flow
and
demonstrate
the
equity
partners
commitment to the business.

Marketing

$1000

Supplies

$500

Miscellaneous

$1000

The Atlantic

Total Uses

$12,500

Working Capital Needs Y1/Y2

$25,575

CONFIDENTIAL

AR
LY
YE

Au
g-1
4

Ju
l-1
4

Ju
n-1
4

Sep-13

Ma

Fiscal Year Begins

Ap
r-1
4

r-1
4
Ma

Fe
b-1
4

Ja
n -1
4

3
De
c-1

No
v-1
3

Oc
t-1
3

B/A

p-1
3
Se

I ND

.%

Twelve-month profit and loss projection

y-1
4

Profit and Loss Projections

Revenue (Sales)
Washers Revenue

2,550

74.7

2,550

74.7

2,550

74.7

2,550

74.7

2,550

74.7

2,550

74.7

3,820

75.1

3,820

75.1

3,820

75.1

3,820

75.1

3,820

75.1

3,820

75.1

Dryers Revenue

765

22.4

765

22.4

765

22.4

765

22.4

765

22.4

765

22.4

1,145

22.5

1,145

22.5

1,145

22.5

1,145

22.5

1,145

22.5

1,145

22.5

Laundry Supplies

100

2.9

100

2.9

100

2.9

100

2.9

100

2.9

100

2.9

120

2.4

120

2.4

120

2.4

120

2.4

120

2.4

120

2.4

Wash/Fold Service

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Dry Cleaning Service

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Other

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

3,415 100.0

3,415 100.0

3,415 100.0

3,415 100.0

3,415 100.0

3,415 100.0

5,085 100.0

5,085 100.0

5,085 100.0

5,085 100.0

5,085 100.0

5,085 100.0

Total Revenue (Sales)

0.0

Cost of Sales
Utilities - Water

510

510

510

510

510

510

764

764

764

764

764

764

Utilities - Gas & Electric

663

663

663

663

663

663

993

993

993

993

993

993

Resale of Merchandise

50

50

50

50

50

50

60

60

60

60

60

60

Reselling - Dry Cleaning

Other

Total Cost of Sales

1,223

35.8

1,223

35.8

1,223

35.8

1,223

35.8

1,223

35.8

1,223

35.8

1,817

35.7

1,817

35.7

1,817

35.7

1,817

35.7

1,817

35.7

1,817

35.7

Gross Profit

2,192

64.2

2,192

64.2

2,192

64.2

2,192

64.2

2,192

64.2

2,192

64.2

3,268

64.3

3,268

64.3

3,268

64.3

3,268

64.3

3,268

64.3

3,268

64.3

Operating Expenses
Salary expenses

Payroll expenses

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

600

Rent
Insurance
Utilities - Sewer

600

600

600

Regulations/Licenses
Marketing and Promotion

600
250

250

200

200

200

200

200

200

200

200

200

200

Car, delivery and travel

60

60

60

60

60

60

60

60

60

60

60

60

Accounting and Legal

500

500

500

500

500

500

500

500

500

500

500

500

Security

40

40

40

40

40

40

40

40

40

40

Telephone/Internet

50

50

50

50

50

50

50

50

50

50

50

50

Supplies

100

100

100

100

100

100

100

100

100

100

100

100

Maintenance & Repairs

100

100

100

100

100

100

100

100

100

100

100

100

Real Estate Taxes

500

500

500

500

500

500

500

500

500

500

500

500

Equipment Lease

Depreciation
Misc. (unspecified)
Total Expenses
Net Profit

The Atlantic

100

100

100

100

100

100

100

100

100

100

100

100

4,200

4,200

4,750

4,150

4,150

4,750

4,150

4,150

4,750

4,150

4,110

5,310

-2,008 -58.8

-2,008 -58.8

-2,558 -74.9

-1,958 -57.3

-1,958 -57.3

-2,558 -74.9

-882 -17.3

CONFIDENTIAL

-882 -17.3

-1,482 -29.1

-882 -17.3

-842 -16.6

-2,042 -40.2

-20,060

20

AR
LY
YE

Au
g-1
5

Ju
l-1
5

Ju
n-1
5

Sep-14

Fiscal Year Begins

Ap
r-1
5

Ma
r-1
5

Fe
b-1
5

Ja
n -1
5

4
De
c-1

No
v-1
4

Oc
t-1
4

B/A

p-1
4
Se

I ND

.%

Twelve-month profit and loss projection

Ma
y-1
5

Profit and Loss Projections

Revenue (Sales)
Washers Revenue

4,775

75.1

4,775

75.1

4,775

75.1

4,775

75.1

4,775

75.1

4,775

75.1

4,775

75.1

4,775

75.1

4,775

75.1

4,775

75.1

4,775

75.1

4,775

75.1

Dryers Revenue

1,430

22.5

1,430

22.5

1,430

22.5

1,430

22.5

1,430

22.5

1,430

22.5

1,430

22.5

1,430

22.5

1,430

22.5

1,430

22.5

1,430

22.5

1,430

22.5

150

2.4

150

2.4

150

2.4

150

2.4

150

2.4

150

2.4

150

2.4

150

2.4

150

2.4

150

2.4

150

2.4

150

2.4

Laundry Supplies
Wash/Fold Service

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Dry Cleaning Service

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Other

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

6,355 100.0

6,355 100.0

6,355 100.0

6,355 100.0

6,355 100.0

6,355 100.0

6,355 100.0

6,355 100.0

6,355 100.0

6,355 100.0

6,355 100.0

6,355 100.0

Total Revenue (Sales)

0.0

Cost of Sales
Utilities - Water

955

955

955

955

955

955

955

955

955

955

955

955

Utilities - Gas & Electric

1,241

1,241

1,241

1,241

1,241

1,241

1,241

1,241

1,241

1,241

1,241

1,241

Resale of Merchandise

75

75

75

75

75

75

75

75

75

75

75

75

Reselling - Dry Cleaning

Other

Total Cost of Sales

2,271

35.7

2,271

35.7

2,271

35.7

2,271

35.7

2,271

35.7

2,271

35.7

2,271

35.7

2,271

35.7

2,271

35.7

2,271

35.7

2,271

35.7

2,271

35.7

Gross Profit

4,084

64.3

4,084

64.3

4,084

64.3

4,084

64.3

4,084

64.3

4,084

64.3

4,084

64.3

4,084

64.3

4,084

64.3

4,084

64.3

4,084

64.3

4,084

64.3

Operating Expenses
Salary expenses

Payroll expenses

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

600

Rent
Insurance
Utilities - Sewer

600

600

600

Regulations/Licenses
Marketing and Promotion

600
200

200

200

200

200

200

200

200

200

200

200

200

Car, delivery and travel

60

60

60

60

60

60

60

60

60

60

60

60

Accounting and Legal

600

600

600

600

600

600

600

600

600

600

600

600

Security

40

40

40

40

40

40

40

40

40

40

Telephone/Internet

50

50

50

50

50

50

50

50

50

50

50

50

Supplies

100

100

100

100

100

100

100

100

100

100

100

100

Maintenance & Repairs

100

100

100

100

100

100

100

100

100

100

100

100

Real Estate Taxes

500

500

500

500

500

500

500

500

500

500

500

500

Equipment Lease

Depreciation
Misc. (unspecified)
Total Expenses

Net Profit

The Atlantic

150

150

150

150

150

150

150

150

150

150

150

150

4,300

4,300

4,900

4,300

4,300

4,900

4,300

4,300

4,900

4,300

4,260

5,460

-216

-3.4

-216

-3.4

-816 -12.8

-216

-3.4

-216

-3.4

-816 -12.8

-216

-3.4

CONFIDENTIAL

-216

-3.4

-816 -12.8

-216

-3.4

-176

-2.8

-1,376 -21.7

-5,512

21

YE
AR
LY

Au
g-1
6

Ju
l-1
6

Ju
n-1
6

Sep-15

Ma

Fiscal Year Begins

Ap
r-1
6

r-1
6
Ma

Fe
b-1
6

Ja
n -1
6

5
De
c-1

No
v-1
5

Oc
t-1
5

B/A

p-1
5
Se

I ND

.%

Twelve-month profit and loss projection

y-1
6

Profit and Loss Projections

Revenue (Sales)
Washers Revenue

5,730

75.1

5,730

75.1

5,730

75.1

5,730

75.1

5,730

75.1

5,730

75.1

5,730

75.1

5,730

75.1

5,730

75.1

5,730

75.1

5,730

75.1

5,730

75.1

Dryers Revenue

1,720

22.6

1,720

22.6

1,720

22.6

1,720

22.6

1,720

22.6

1,720

22.6

1,720

22.6

1,720

22.6

1,720

22.6

1,720

22.6

1,720

22.6

1,720

22.6

175

2.3

175

2.3

175

2.3

175

2.3

175

2.3

175

2.3

175

2.3

175

2.3

175

2.3

175

2.3

175

2.3

175

2.3

Laundry Supplies
Wash/Fold Service

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Dry Cleaning Service

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Other

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

7,625 100.0

7,625 100.0

7,625 100.0

7,625 100.0

7,625 100.0

7,625 100.0

7,625 100.0

7,625 100.0

7,625 100.0

7,625 100.0

7,625 100.0

7,625 100.0

Utilities - Water

1,146

1,146

1,146

1,146

1,146

1,146

1,146

1,146

1,146

1,146

1,146

1,146

Utilities - Gas & Electric

1,490

1,490

1,490

1,490

1,490

1,490

1,490

1,490

1,490

1,490

1,490

1,490

Resale of Merchandise

88

88

88

88

88

88

88

88

88

88

88

88

Total Revenue (Sales)

0.0

Cost of Sales

Reselling - Dry Cleaning

Other

Total Cost of Sales

2,724

35.7

2,724

35.7

2,724

35.7

2,724

35.7

2,724

35.7

2,724

35.7

2,724

35.7

2,724

35.7

2,724

35.7

2,724

35.7

2,724

35.7

2,724

35.7

Gross Profit

4,902

64.3

4,902

64.3

4,902

64.3

4,902

64.3

4,902

64.3

4,902

64.3

4,902

64.3

4,902

64.3

4,902

64.3

4,902

64.3

4,902

64.3

4,902

64.3

Operating Expenses
Salary expenses

Payroll expenses

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

2,500

600

Rent
Insurance
Utilities - Sewer

600

600

600

Regulations/Licenses
Marketing and Promotion

600
200

200

200

200

200

200

200

200

200

200

200

200

Car, delivery and travel

60

60

60

60

60

60

60

60

60

60

60

60

Accounting and Legal

600

600

600

600

600

600

600

600

600

600

600

600

Security

40

40

40

40

40

40

40

40

40

40

Telephone/Internet

50

50

50

50

50

50

50

50

50

50

50

50

Supplies

100

100

100

100

100

100

100

100

100

100

100

100

Maintenance & Repairs

100

100

100

100

100

100

100

100

100

100

100

100

Real Estate Taxes

500

500

500

500

500

500

500

500

500

500

500

500

Equipment Lease

Depreciation
Misc. (unspecified)
Total Expenses

Net Profit

The Atlantic

150

150

150

150

150

150

150

150

150

150

150

150

4,300

4,300

4,900

4,300

4,300

4,900

4,300

4,300

4,900

4,300

4,260

5,460

602

7.9

602

7.9

0.0

602

7.9

602

7.9

0.0

602

7.9

CONFIDENTIAL

602

7.9

0.0

602

7.9

642

8.4

-559

-7.3

4,298

22