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Can your new plant be a success?
There have been quite a number of new plants being built around the country, some have been failures and some have been successful.
This article will discuss the requisites for a successful venture into the complex realm of clothing maintenance (dry-cleaning, laundry, wetcleaning and tailoring) and the areas of fire and flood restoration and wedding gown restoration.
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There are two types of persons who delve into this industry: experienced and inexperienced. There are two types of business relationships by these two persons: on-site direct management and investor with hired management.
The first type is usually the more successful since he or she knows the “ins and outs” of the hardcore day-to-day problems and operations.
They have worked at most of the jobs in the plant and are familiar with the basic equipment and the tribulations connected with its maintenance and operation.
They have a basic education of the industry through the dissemination of valuable information by the various trade journals which are available to them at no charge.
They have had the exposure of trade shows and seminars to keep them advised of the many advances in technology, marketing and management.
The second type has used drycleaners extensively and is quite impressed with the excitement of so many small transactions being conducted, especially during the busiest times of the day when there are many customers going in and out of the customer service area.
The thrill of the noisy plant in the back with the garments flowing and the employees busy at their work stations present an atmosphere of good profitability.
The second type has had a college education, usually in business management or marketing, and feel that the industry is lacking in those attributes and hungry for someone to elevate it to a more professional form of business organization.
This person usually has been in the corporate environment where the exposure to business tactics and operations are on a more upscale level. They are used to the pressures of their superiors “cracking the whip” to get things done, and they despise the politics involved with advancement in the corporate world.
Some of them have been the victim of corporate down-sizing and have been laid off with a nice separation package to help them adjust to the “other side of the coin.”
If the second type is to be successful in this industry, he or she must get an education on the actual operations of a plant. This means taking the general courses offered by the two major trade associations (International Fabricare Institute and National Cleaners Association).
In the meantime, that person should try to become familiar with the industry by visitations to plants and even working on the clerical side of the industry to get a feel for it. Who knows? They may decide that this is not for them.
These requisites are a must, especially for those who plan to actively participate in the business, and helpful if they plan to hire a general manager to run the business.
Where do these two categories of persons need to go, and to whom do they need to go? That is the question that must be answered.
The first person to go to is the potential owner himself to survey the area of interest, but the services of a demographic expert must be included in the initial study to determine if that area is conducive and practical for a profitable drycleaning business.
The next step is to seek information on the equipment needed for the size of the operation chosen. They can go to a distributor of equipment for advice and prices and get a proposal. Or they can go to an experienced consultant to prepare a generic equipmeft list describing the equipment needed according to the financial strength of the buyer and which will give the most production and quality to be attained.
In addition to the equipment list, the consultant must write installation specifications to ensure quality of materials and specifics on pipe sizes and configurations, etc.
The buyer can take the generic equipment list and shop it for bids among several distributors. If the consultant and buyer both agree that the lowest bid is the best bid, then the lowest bidder gets the contract.
Sometimes the next higher bid is the better bid according to the quality of the equipment offered.
Service and stocking of spare parts is an important consideration in all bids. In any event, the consultant and buyer must then work closely with the distributor to accomplish the best results.
The consultant is now under obligation to offer telephone, e-mail and written consultations at all times to the buyer (client).
The next step for the consultant, or distributor, is to prepare an equipment layout and installation specifications in order to apply for permits to install the plant. In this regard, the distributor who gets the purchase contract will assist in getting permits and licenses, etc.
The next step is to take the installation specifications, equipment layout and equipment list with description of the equipment to be installed to several installers and electricians for bids. By having the installation specifications the buyer can be confident that the best in materials and workmanship are being used.
The installer must follow the specifications, but if he feels that an adjustment must be made for unforeseen circumstances, he must secure the permission of the consultant before proceeding thereon. This writer has had several cases where that took place, especially with selection of materials available to the installer.
During the interim, the buyer has to make all the real estate arrangements necessary for the location, and he/she has to make arrangements with the bank for the financial end.
Having enough money to finance this venture is most important since going in under-capitalized can be disastrous. You need money to live on besides carrying the business during the initial unprofitable term.
The next requirement of the consultant or distributor is to prepare the equipment layout. This document, the installation specifications and equipment list are given to the installers as part of the bid for cost including electrical, mechanical and any building modifications.
As you can now foresee, the total cost of installing a new plant is quite high since you must include the extra start-up money and capital needed in addition to any marketing campaign cost and demographic studies already incurred.
The mix of equipment should be the best that can be obtained in order to give the best quality work and the most production. And the employees should be well trained, or retrained, to produce thad quality and production required.
Creating an exceptional image
You must create a professional image to the consuming public. This starts with the customer service area.
The consultant’s client should have been planning the façade of the customer service area along with a pleasing and warm, but yet cool, décor of the store. The counters should be both efficient and attractive. There should be a tailoring area in the customer service area with a dressing room.
And, most important of all, the customer service representatives (CSRs) should wear attractive apparel with your logo embroidered on one side and a name tag on the other side, and they must be well-trained in customer service relations.
Never have signs telling consumers what you will not do, always be positive and tell them what you will do. If you want to air condition the customer service area, your back wall should be glass so customers can see your clean and active plant operation. Of course, the best course would be to air condition the entire building and not have the separation wall.
If you are building your own plant from the ground up, a large glass window surrounding the plant for view by the public is a good drawing card to show your professionalism, but you must be dedicated to a clean plant and uniformed workers.
Having your plant’s name printed on garment bags, hanger shields, etc., will keep your name alive in the customers’ minds.
If you have a truck, it should be lettered with simplicity and without tacky slogans beyond those that connote quality work. The truck must be kept clean at all times and parked at the entrance to your shopping area when not in use. This is free exposure of your name.
Consistency of quality to establish a brand
You must re-train any experienced employees, especially pressers, to standardize their work in accordance with the procedures that you, or your consultant, have established. Inspection must be everyone’s job in the plant. Use of the best supplies is mandatory since the lowest price is not always the lowest cost.
Above all, you must have a constant training program for reinforcement of your standards, and you must spell out all requirements of your employees in an employee handbook. Constant supervision is the job of your manager, or yourself, or even both to ensure a smooth flow of work.
My father once said: “You can’t run the plant from the spotting board.” By this he meant that you must be all over the plant to see that it is running efficiently, and you can’t see what is going on when doing one particular job.5
The critical opening week
It is crucial to the success of your business to have a smooth opening week. If your pre-advertising has brought you a large volume of work, make sure that you get that work out on time and with the quality you purport to give. If you don’t, it will be a disaster and you will create a negative impression of your organization that could easily bring you down. Be at the front area as much as possible during that week and “turn on the charm.”
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Stan Caplan has over 35 years experience in his own high volume