Meet the founder of Laundryheap
I’m Deyan Dimitrov, CEO of Laundryheap, an on-demand laundry and dry-cleaning service. I came from fairly humble beginnings, having worked in business development and e-commerce before I founded Laundryheap in 2014. In the early years, Laundryheap was a bootstrap start-up, meaning the brand started with no external funding, just my own personal funds. We had low overheads and I didn’t take a salary when the company first started.
Fast forward to 2020 and we’ve dry-cleaned over 10 million items of clothing and seen active users grow 450% per year. We’ve also raised £2.9 million in funding from a combination of angel and VC backed funds. In the wake of the pandemic, Laundryheap has launched in several cities across the globe including Dubai, Amsterdam and New York, with more expected this year.
What inspired you to launch your business and what is the end goal?
Laundryheap was established in 2014, after one fateful evening that left me standing outside a closed dry-cleaners, with my suit on the wrong side of the doors. I became frustrated by the lack of alternative options available and the idea for Laundryheap was born.
The app offers time-strapped individuals the opportunity to get through their daily chores without having to compromise on other responsibilities. All customers need to do is book a collection slot with us and their laundry will be washed, ironed or dry cleaned, then returned to their door, all within under 24 hours. People’s free time is now more precious than ever, and they don’t want to waste it doing errands and chores. Laundryheap offers a practical, quick and convenient solution to a common problem.
How do you set yourself apart from other businesses in your industry?
The on-demand laundry service industry is very competitive and this is something we realised early on. The main way we differentiate ourselves is that we’re currently the only app of our kind to offer a guaranteed 24-hour turnaround. This means the whole process is streamlined which enables us to meet modern consumer expectations, retain loyalty, and ultimately become market leaders. It’s not by chance that the majority of our business is repeat custom. We provide a fast service because we understand how busy our customers are; and how valuable their time is.
How did you fund the launch of your business and what creative strategies did you use to execute a minimal cash flow?
Laundryheap started as a bootstrapped start-up, meaning we had minimal overheads and I made the decision to cut back on my salary to re-invest in the business. Before starting the business I went in with the idea that VC funding would add value to our business, and it wouldn’t act as a lifeline. I think that distinction is so important because ultimately, your business won’t be able to survive if you’re solely relying on funding.
As Laundryheap bootstrapped for the first three years, I was insistent that we shouldn’t accept external funding until we were sure our business model was solid. It was frustrating to see VC-backed competitors splashing the cash on ad campaigns, but I’m pleased that we stuck to our guns. It allowed us to scale up steadily and meaningfully; we’ve now got a much stronger business model as a result.
There are lots of success stories currently in the media around entrepreneurship and innovation. How do you think you’ve innovated in your sector and why?
I think in terms of innovation, you don’t necessarily have to come up with a completely novel idea to create a solution that’s innovative and works really well. If you can figure out a simple way to reinvent a sector, or bring added value to an already crowded marketplace, then that will put you in good stead and that’s innovation.
As a business in a crowded marketplace, Laundryheap has innovated by continuously thinking of new ways in which we can bring added value to our customers and in turn retain them against competitors. For example, this year we launched an initiative supported by Age UK to deliver essential care packages to the elderly, who couldn't access basic cleaning supplies due to the pandemic.
Additionally, we always have our finger on the pulse and are thinking of new ways to attract new clientele. Or even collaborate with other services to strengthen our offering and ensure our services reach those who need it. Most recently, this has involved establishing partnerships with the hotel and accommodation industry - including a partnership with Under the Doormat to service the temporary accommodation of NHS workers for free.
Do you have a morning routine or ritual to get your day started on the right foot?
I make sure to compile a to-do list whilst commuting, which sets me up at the right way to start my day. Usually I set two to three larger tasks for the day, and a couple of quick tasks that might be left over from the day before. For the larger tasks, I block time in my calendar to make sure I actually do them and don’t get distracted by something else.
What’s the most important question entrepreneurs should be asking themselves?
I would encourage entrepreneurs to ask themselves “Do you truly believe in your business idea?” because that’s what will make you successful.
The same goes for bootstrap startups. If you truly believe in your product, push as hard as you can to create a viable entity or a watertight business model before you seek external funding. Otherwise, the external input and pressures could throw you off trap, or you could be pulled into a never ending round of annual raises, teetering on the edge of collapse before the next injection from VCs. Be as strategic as possible.
How do you believe the evolution of tech will affect your industry over the next 10 years?
The advancement of machine learning and AI within the tech sector will enable apps to provide better user experience and improve engagement. We’re working towards making the entire process of getting your dry cleaning done as easy and hassle-free as possible. We also look to these advancements to identify patterns in purchasing and user behaviour, enabling us to provide a better service for customers.
As people grow accustomed to using technology to improve their everyday life, there are huge opportunities for on-demand service providers like Laundryheap.
Does your company help the community that you’re located in?
Laundryheap has been helping a range of communities, especially during the pandemic when people needed it the most. For example, we created care packages of cleaning essentials for the elderly who didn’t have access to basic items such as soap, toothpaste and bleach during the pandemic, and made these packages available to pay-it-forward, with matched gifting.
We also worked closely with charities and brands to offer free accommodation to NHS workers during the pandemic so that they didn’t have to travel far to get to work and meant that they could get their laundry cleaned for free.
What do you think gives a brand longevity?
Successful brands are the ones that keep their promises. If you promise customers value and reliability, then you have to make sure that you always offer your customers just that. If you can do that, it’ll go a long way in building your credibility and, in turn, your brand.
Once you’ve differentiated yourself from your competitors you must then build an emotional connection with your audience. Emotional connections come from the experience you offer your customers, such as good customer service, providing a sense of comfort that they’re in safe hands, and communicating with them on a human level. If you can provide and maintain that, customers will keep returning.
What plans do you have for Laundryheap over the next two years?
The wake of the pandemic has been a huge challenge for our business but also a real opportunity, so much so that we’re actually preparing to launch a few new locations around the world in the coming months which is really exciting!
I think in the next two years we will be focusing on expanding the business globally, to introduce our service to new cities. We also want to attract new talent to the Laundryheap team as we grow, to help with our ambitious plans.
