INTRODUCTION

Rationale
The fast change of trend from individualized laundry to commercial laundry
services coincides with rapid technological change as well as the fast, changing and
modern lifestyle of Filipinos. Laundry business is an easy and convenient business to
start. It is not capital or management intensive. You can start this business right
from home and grow from there. It is a very lucrative business, as not everyone that
puts on clothes has the time to do the laundry.
Based on the survey conducted the reasons why they go to the laundry shops
instead of doing it to their own are because of tight schedule especially those
students who have a lot of extracurricular activities in school, others says they dont
like washing their clothes because it is just a waste of time (laziness), and some
boarding houses didnt allowed washing clothes in consideration to the consumption
of water. This is the reason why there is chance of making a lot of money because
this people will definitely seek your services.
Business Description
As the time goes the Odiongan, Romblon province in the Philippines is
continue to grow emerged too many businesses nowadays. It can be seen that
numerous schools and establishment are spotted around the area urging to look for
convenience due to their busy time. And this gives a positive outlook for some
businessmen who were just started in the industry to put their investment in certain
businesses particularly the Laundry business in which the field is not that much
penetrated.
Business Name
The right name can make your company the talk of the town especially when
it is unique and probably would catch their attention. Therefore, the proposed name
of our business is LoveVaHonMo KaVangyU Laundry Shoporiginated from the word
labahan mo ay mabango that means we will wash clothes with a good smell.
Fig. 1 Business Logo

L veVaHonMo
KaVangYu
Laundry Shop

Business Location

The proposed business location is located at Barangay Liwayway, Odiongan,

Romblon. This location composes of school; establishments; apartments and
boarding houses.

Service Description
The Business concept of LOVEVAHONMO KAVANGYU is typically
homogeneous to those other existing Laundry shops in the city. But certain things
will make it stand and that includes its quality services, professionalism of its
personnel towards its customers.

Quality Services- The quality services really matters in LOVEVAHONMO KAVANGYU

Laundry. It is planned to provide services such as washing, pressing, ironing and
folding customers clothes and garments. It will be using quality equipment and
machineries that could greatly help and make the business exist. It shall offer
affordable cleaning too, making sure that the output will reach its quality standard
Professionalism towards customers- Personnel of the shop will surely build
professional customer relationship. Unlike the other personnel/workers that may just
think business is easy as doing what is assigned to them and this normally getting
payments from customers after doing/giving what the latter wants. More than that,
it would be better to set your customers as part of the top priority. In addition, the
team will take care of each customer item with great respect since personal things
are engaged in the business.

MARKETING ASPECT

The marketing aspect will serve as the basis of the financial section through
the projected demand. This includes the area covered, target market, proposed
location, competitors, the demand and supply, demand and supply gap analysis,
marketing program and SWOT analysis.
Area Covered
This is to identify a point or an area of study. Geographic target is in
Odiongan, Romblon Province primarily located at this Barangays Liwayway,
Liwanag, and Ligaya as a primary market. This is 12% of the overall barangays total
of 25 that composes the province. This location composes of schools like OSCES and
RSU; establishments; apartments and boarding houses. Out from these components
we will determine the population of those living in apartments and boarding houses
where our target market is situated.

Fig. 2 Area Covered by Brgy. Liwanag

Fig. 3 Area Covered by Brgy. Ligaya

Fig. 4 Area Covered by Brgy. Liwayaway

Area Covered

Number of Apartments
and Boarding House

Total Population

Barangay Liwayway
Barangay Liwanag
Barangay Ligaya
Total

15
24
28
67

342
533
624
1499

Fig. 5 Actual Population

Notes:
1. The number of apartments and boarding houses is estimated only.
2. The Population also estimated.

Target Market
Our target market will determine from those living in apartments and boarding
houses within the mentioned Barangays such as:
1. Young professionals
2. Students
3. Family
This group of market will be described their need according to their lifestyle
considering a number of potential influences on buying behavior including the
attitudes, expectations and activities of consumers. In order to know the population
demand for the proposed laundry business for that area in Odiongan, we used the
slovins formula in determining the number of respondents for the survey
questionnaires. We use the actual number of residents in apartments and boarding
houses total 1,499(fig.5) and the margin of error would be 10%. Margin of error
denotes the allowed probability of committing an error in selecting a small
representative of the population.
N = n / (1 + ne^2)
Therefore:

N=

N = Number of samples

1499
(1+1499 x . 102 )

n = Total population

N=93.75round of 94
e = Margin of error
Barangay

Number of

Distribution

Total

Distribution

Barangay
Liwayway
Barangay
Liwanag
Barangay
Ligaya

Population

Ratio

Respondents

342

22.8%

94

of
Respondents
22

533

35.6%

94

33

624

41.6%

94

39

1499
Fig. 6 Questionnaire Distributions

Notes:
1. The number of population is estimated.
2. The ratio for distribution of respondents is based on the Specific population in a
barangay over total target population and is multiplied to number of respondents.

Respondent Classification
8%
25%
67%

student

working

others

Based on the estimate, the graph shows that 67% are students, 25 % from
working and others 8% coming from family section.
Competitors
We have gathered data of the list of the Laundry Shops registered as of April 2016
in Odiongan, Romblon. Below are the lists:
1. Never Naked Laundry Shop- Brgy. Liwanag, Odiongan, Romblon
2. As Laundry Shop- Brgy. Ligaya, Odiongan, Romblon

Fig. 8 Competitors Location

Notes:

Among those shops listed above, highlighted is the nearest competitor

which is 320 meters and 820 meters away from the area where the target
market resides.
The following competitors are not within our covered area from the
mentioned barangays.

Market Need
The survey says that the needs of the market are of the following factors
enumerated below. Therefore this would be our basis to better achieve customer
satisfaction and they will be able to continue availing the service.

Quality of cleanliness
Price
Timeliness and customer service

Market Need
10%
22%
68%

Quality and Cleanliness

Price

Timeliness

Fig. 9 Market Need

Area
Covered

Total Actual
Population
(a)

Percentage of
those who are
willing
(b)

Estimated
# of kls
minimum
per week

Projected
Demand
(in Kilo)

74%

Total
Population
Who are
willing to
avail (axb)
253

Barangay
Liwayway
Barangay
Liwanag
Barangay
Ligaya
Total

342

759

533

74%

394

1182

624

74%

462

1386

1499
Fig. 10 Demand Analysis

Services

Workin
g Hour
per Day

Machine
8 hours
Wash
Handwas
h
Total No. of loads

Estimated
Cycle of
time per
load (hour)

No. of
Loads
allowed
per day
(a)

Load
Capacit
y per
Day
(axb=c)

Workin
g Days
(d)

Estimate
d
Capacity
per Load
(b) x 4
machines
30 kg

120 kg

6 days

Loading
Capacit
y per
Week
(cxd=e)
kilo
720

2 hours
3 hours

5 kg

5 kg

6 days

30
750

Fig. 11 Supply Analysis

Demand

Supply

Demand and Supply

1386

750
Fig. 12 Demand and Supply Gap

Gap
636

Note:
1. Demand Analysis (Fig.10), projected demand is the estimated kilo of clothes
per week that needs to be catered by our services.
2. Supply analysis (Fig.11), Loading Capacity per week is the normal operating
capacity that the Laundry shop can cater.
3. As seen in Fig.12, there will be a gap of 636 (1386-750) kilos that will never
be catered. Hence which is a good thing, since the demand for our services is
higher than what we can give. Therefore the threats of competitors to rise up
in the same area (sharing of market) wont materially affect our sales
projection.

Laundry Services Offered

The following are the list of the services to be offered based on the needs of the
market:
1. Wash-Dry-Press
2. Wash-Dry-Fold
3. Hand washing

Service to Avail
7%

22%

71%

Wash-Dry-Press

Wash-Dry-Fold

Fig. 12 Services to Avail

Handwashing

How often do you do laundry?

13%

5%

82%

once a week

twice a week

thrice a week

Price

Fig. 15 Prices
How much the market is willing to spend for laundry service?

Fig. 16 Wash-Dry-Fold
Notes:
On the survey provided, 83% will go for cost of 23.00/min. 3kls and only 17%
will go for cost of 25.00/min. 3kls.

10

Fig. 17 Wash-Dry-Press
Note
On the survey provided, 72% will go for cost of 65.00/min.3kls and only 28%
for the 70.00/min.3kls. This is in consideration as a student price.

Fig. 18

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Fig. 19
Based on this survey 38% of the market says yes that they bring their clothes to the
laundry shop, while the remaining 62% says no. Therefore, out of the 38% that says
yes, 8% of them only bring 2 kilos and below, 21% brings 3 kilos, 34% brings 4 kilos
and the remaining 37% brings 5 kilos and above.

Income Projection

Advertising and Promotion

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This refers to raising customer awareness of the services and creating services
loyalty.
1. Leaflets and flyers will be distributed upon the opening of the shop so
that the market will be able to be informed that it is already available.
The leaflets and flyers will be personally done by the owner of the shop which
has a budgeted amount ofP 3,000.00
Leaflets will include the following information
o Services offered
o Price list
o Company address and contact number
o Business hours
o Business slogan
2. Tarpaulin to be placed in front of the shop. The cost would be P 2,500.00. It
will include the following information:
o Business name, address and contact number
o Business logo
o Business hours
o Business slogan
3. Membership offering that will give customer discounts -to maintain
the loyalty of the customer we will offer membership and there will be
corresponding points to reach so they can avail the discount.

4. Bring a friend - a gift item will be given.

5. Pick Up and drop service to increase more of the willingness of the
customer to avail of the laundry service, we will offer pick up and drop
service as it shows also in the survey that 45% would like to have this kind of
extra service for the convenience of the customer.

13

Fig. 20
SWOT ANALYSIS
I.
Strengths
o Using machines with quality and brand
o High profitability because it is more accessible to market
o Quality output and faster service
o The location is on the main city nearest to the boarding houses,
apartments and schools
o Location is just a walking distance
o Prices are relative, competitive and accords to what the customers want
o Does not need a large amount of capital
o Promotion strategies social networking sites is very accessible as well
o Accessibility of the location
II.
o
o
III.
o
o
o
IV.
o
o

Weaknesses
Lack of experience as this will be the first time to conquer the market in
the said location
As the machines with brand and quality is expensive, maintenance will
be quite expensive as well
Opportunities
Continuous development of the city with having new establishments for
residential (apartments and boarding houses)
Students, working professionals having lack of time in doing their own
laundry
Only two competitors nearest which is 500 meters and 568.48 meters
away from location
Threats
Price variations
Future competition

TECHNICAL ASPECT
This chapter provides information that includes the structures and the floor
plan, operating procedures/processes that are essential to the overall operation of
the business, proposed equipment, machineries and supplies together with their
descriptions and specifications.
Commercial Space for Rent
The space will undergo some sort of renovation just to maximize the space
intended for the business since the space is not that large enough to settle all the
equipments or other furniture. The rent will be 2 months deposit and one month
advance total 30,000.00 on first month and cost 10,000.00 pesos on a monthly
basis onward provided by a lease contract for minimum of 1 year and renewable.
Below shows the innovation cost for the space rented.

14

Fig. 21
Space Layout

15

The floor plan was designed intended to facilitate the work flow and show
how the space looks like.

Space Layout

16

Operating Procedure

Fig 24. Operating Procedure

The above chart shows the laundry process. Each process is explained as below:

17

1.

2.
3.
4.
5.
6.

Tagging - the clothes are firstly tagged with a specific number, mentioned
in the invoice given to customers. This procedure is used for identification
of clothes once ready for collection for customers.
Sorting - After tagging the clothes are arranged in different sets. Some
people will sort by color. Other sort by fabric type.
Pre-treatment of clothes - soaking in hot water.
Washing - The clothes are washed in washing machine using detergent
washing powder and or bleach on white.
Drying - The clothes washed are transferred to dryers. (Note: one of the
machine are automatic dry)
Packing - Once pressed, the clothes are properly hanged and covered in
the plastic wrap and then tagged so that it can be easily identified.

Receiving and Tagging

1. Note the time that the items received.
2. Check the item against the laundry list. - Make sure the item received
matched the item listed on the laundry list.
3. Tag each laundry items.
4. Check for damage and lost and found items.
5. Fill out in the separate logbook for lost and found items. -Record the time,
date, name, and description of the item
6. Place the item in a plastic bag and surrender it to the supervisor. Record
the laundry items according to company procedures. - Record the date,
name of customer, time received, name of the attendant, signature and
remarks.
7. Sort each item according to weight and color (heavy, white, colored and
damaged) -Put damaged item to separate basket
8. Prioritize express items.
Wash Dry Fold per 10 kilo wash load
Thin Garments including clothing, bed sheets, curtains, and towels
1. 30 minutes washing time
2. 4 scoops of detergent soap and 1 cup of fabric softener
3. 25 to 30 minutes drying time
4. Quality checking of clothes
5. Approximately 30 mins for folding
Thick Garments such as blankets and comforters
1. 30 minutes washing time
2. 4 scoops of detergent soap and 1 cup of fabric softener
3. 30 minutes drying time
4. Quality checking of clothes
5. Approximately 1 hour for folding
Pressing Service
1. Inspection of clothes for pressing if the fabric allows pressing and
specific temperature requirements
2. Segregation of clothes according to size and temperature requirement
for pressing.

18

3. Pressing of clothes requiring high temperature and folding.

4. Pressing of clothes requiring medium to low heat temperature and
folding.
5. Segregation of clothes according to tag, identifications and tagging for
pick up
Hand Washing Process
1. Clothes are inspected for washing requirement symbol.
2. Clothes are initially soaked and rinse in lukewarm water to loosen up
the fabric for easy cleaning.
3. Clothes are soaked in lukewarm water with detergent for about 8
minutes
4. Clothes are hand washed with bar soap and bleach (if needed)
5. Clothes are soaked and rinse in cold water for rinsing twice
6. On the third rinsing procedure, rinsing procedure, clothes would be
soaked and rinse in cold water with fabric conditioner
7. Clothes are to be tumble dried in minimum time according to fabric
requirement
8. Clothes are segregated and folded according to tag identification
9. Clothes are bagged for pick up
Removing Stain
1. Prepare the necessary materials. (Gloves, cotton cloth, stain remover,
laundry basket)
2. Lay the cotton cloth on your work area - cotton cloth absorbs the stain
while it is being removed.
3. Turn the garments to its wrong side.
4. Lay the stained part of the garment on the cotton cloth.
5. Wear protective equipment - Gloves protect your hands from harsh
effect of chemicals.
6. Apply stain remover and gently scrub the area. Apply more stain
remover as necessary for stubborn stains; soak the garments for 5-15
mins.
7. Check if the stain has been removed.
8. Place the garment in a basket for laundry.
Notes:
1. First come first serve basis for laundry service.
2. If in case customer will request for quick delivery additional charge of P 5.00.

Filtration Process Environmental Impact

19

20

21

Operational Equipments

22

23

24

25

26

27

Laundry Cleaning Products

We choose to have a one supplier for our supplies to be use for the laundry
process.

28

29

30

31

32

33

34

MANAGEMENT ASPECT

35

This chapter provides information about the management aspect of the

business. Basically, it shows the form of ownership which the business have. This
includes how business will be managed, the control and supervision matters and
even the start-up cost of the business. It will also provide you with information
about the basic requirements and procedures in registering the business and the
government agencies that the business is related to. The management aspect will
determine the successfulrealization of the business. Thats why the study of
theofficers, key personnel and manpower requirements will be very important
matter in this chapter. Business culture which includes the operating schedule and
the day to day monitoring will also be part of this chapter.
Form of Ownership
I.

The business will be sole proprietorship

o .Manage
o Control
o Supervise
o Start Up cost
A sole proprietorship is chosen since it is one of the least expensive business
structures to begin. Only one person owns a sole proprietorship business, the
legal requirements involve simply registering a business name and obtaining
any relevant licenses or permits that relate to the specific type of business.
Many sole proprietorship businesses have very low start-up costs as
compared with other types of business structures. The start-up investment
typically includes the basic costs for equipment, marketing and office utilities.
However, the amount of the start-up costs may vary, depending on the
specific type of business.

II.

Registration
Essentially, a sole proprietor business legally comes into existence when the
business owner registers the business name and obtains any relevant
business licenses.
Government agencies for registration

Department of Trade and Industry

Local Government Units where your business is located:
Barangay
Mayors Office
Bureau of Internal Revenue
Legally Required Registration of Employee Benefits
Employers are legally required to provide certain benefits for
employees. Employee benefits play an important role in the lives of
employees as well as their families. For that reason, the benefits you

36

offer can be a deciding factor for a potential employees decision to

work at your business.
Employees registration to the following:
a. SSS
b. PhilHealth
c. Pag-ibig HDMF
Basic requirements and procedure in registering a Sole Proprietor
Business
1. Register a business name at DTI
1) Come up with three business names
2) Search in the DTIs website if there is an existing name similar to yours
3) If your business name is available, fill up business name (BN) Application
Form
4) Submit your completed BN application form to DTIs offices/bra
5) Wait for your DTI Certificate of Registration
2. Registration with Barangay
1) Go to the barangay where your business is located to secure and fill-up
application form
2) Submit your completed application form together with the following:
Certificate of Business Registration from DTI
Two valid IDs
Proof of Address such as Contract of Lease
Claim Barangay Certificate of Business Registration
3. Register your business in the Mayors Office
1) Go to the municipal office where your business is located to secure and
fill-up application form
2) Submit your completed application form together with the following
Certificate of Business Registration from DTI
Barangay Clearance Certificate
Two valid ID
Proof of Address such as Contract of Lease
4. Register in the Bureau of Internal Revenue (BIR)
1) Go to Regional District Office where your business is located
2) Fill-up the BIR Form 1901- Application for Registration (for Sole Proprietor)
3) Submit completed registration form together with the following
Certificate of Business Registration from DTI
Barangay Clearance Certificate
Mayors Business Permit
Proof of Address such as Contract of Lease
Valid ID
4) Pay the registration form (BIR form 0605)
5) Register your book of accounts and receipts/invoices
6) Claim your Certificate of Registration (BIR Form 2303)

37

Business Culture
I.
II.

Operating hours from 9:00 am to 6:00 pm Mondays to Saturdays

Break time: 12:00 to 1:00 PM
Day to day monitoring
The Inspector will monitor the employees attitude and performances, the
laundry process, the consistency and on-going coaching and giving
instructions to them.

Monitoring of sales
Inventory
Delivery and Pick-up

The pick-up and delivery will start at 9:00 am from Monday to Saturday.
Our customers will contact us, since we are giving leaflets to them and
posting tarpaulins in the area. The customer and the counter clerk will set-up
the date of pick-up of laundry through telephone or cellphone, prior to the
date of pick-up in order to manage the route in one way we can reduce the
cost of gasoline. However, we will charge 5.00 for every pick-up and
delivery.
III.

Customers Account using Microsoft Excel

The customers account will be the basis to track their location during the
pick-up and delivery service. It contains the customers name, address,
contact number, number of returned garments with the payments and other
information using the Microsoft Excel as our system. It is necessary to have a
better customer communication such as, scheduling or canceling of bookings,
automatic SMS, information about their account balances without invoice
tickets during delivery and optimized customer search.

Manpower requirements
I.

Physical Requirements:
Age must be 18-40 years old
Workers without bending, crouching or walking restrictions.
no skin allergies
II. Skills, Interests and Qualities

38

Must be graduate of Housekeeping NC II

practical skills to operate and adjust machinery
good attention to detail
willingness to do repetitive work
the ability to work methodically and follow instructions
willingness to work flexibly
good timekeeping skills
Has the ability to count and measure accurately.

Organizational Structure

Job Description & Duties

I.

Machine washers
Weigh laundry and place it in huge washing machines. Machine washers
control the machine settings for each kind of material. This includes
setting the proper temperature, washing speed and water and suds level
and adding the right amount of bleaches and rinses. After the laundry is
washed and rinsed,

II.

Counter clerk
Received laundries from customers, give back clean laundry, scheduling
the date of pick-up and delivery with the customers, and billing.

III.

Bookkeeper
Analyzing and recording the transaction and presenting the reports on

time.
IV.

Markers or sorters tag

Mark the laundries so that they can be returned to the appropriate
customer. They usually remove loose buttons and mark items that need to
be mended.

39

V.

VI.

VII.

VIII.

Extractor operators Place it in extractors, which spin most of the water out
of it. The laundry then goes to tumbler operators who put it in drying
machines that tumble it dry. Some items, such as blankets and rugs, may
be hung in heated rooms to dry.
Inspector Check the finished laundry. If it needs rewashing or repressing,
he sends it back to the proper department. He sends some pieces to
menders, who do repairs by hand or machine. Assemblers collect all the
items belonging to each customer. Finally, baggers or bundle wrappers
place the laundry in bags or bundles and attach invoices, which indicate
how much money the customer owes.
Finishers Fold and press the clean, dry laundry. When requested, they
press. They also may just fold and stack. Other finishers work on shirts,
ruffled curtains, blankets, or other items that require special pressing and
finishing. To get professional results, they use forms designed for certain
parts of clothing, such as shirt sleeves, shirt collars, or the bodies of skirts.
They also use hand irons to finish certain items that cannot be done on
the forms. The finished items are then folded or placed on hangers.
Route workers Pick up laundries at customers' homes. Market new
customers along their routes. They also deliver clean laundry, giving
invoices and collect payments.

Segregation of Duties
I.

II.
III.

Single Duty
Route Worker
Bookkeeper-Owner
Duties may be desegregated
Counter Clerk and the Inspector
Markers or sorters tag and Machine washers (could be same
person)
Extractor operator and the Finisher (could be same person)

Management Style
I.

Hiring Process

The applicants are required to submit their resume on the position that they are
interested to apply for. The management will immediately evaluate and sort
those applicants. And whoever passed in the next stage will be informed by
means of a message on mobile phones. Each of them will undergo a brief
interview to personally determine if they are fit physically and mentally to the
position they were applying for and not only that but also to evaluate if they
really have the skill and ability to stay at the business. And those who
successfully overcome the process shall submit their requirements for legal
purpose employment.
II.

Safe Working Environment

Safe working environment keeps the employees free from any hazards and it
complies with the law providing safeties especially to the business operated.

40

There are safety precautions that should be apply, employees are segregated
based on their assigned jobs. They are required to wear gloves and mask during
the laundry process to avoid from skin irritations. They are allowed to wear
comfortable dress attire so that it would not be hard for them to move freely.
Personal hygiene is appropriate to avoid disease or any illness, especially for
chemicals that contains strong solution. There is specific baggage area for the
employees where they can place their bags or things to it. Their things will be
check by the assigned personnel or the owner before and after working hours to
avoid thief or any misappropriation of assets.
III.

Training

Training is essential for the success of a business. Laundry business requires

training for its employees, especially it is in need of due care, as clothes one the
basic needs of every individual. Before being hired, employees will undergo
some sort of trainings for laundry process to evaluate if they have the
capabilities required for the position, and to ensure that they will know how to
properly do their jobs to give the customer the satisfactions they are looking for.
They will be evaluated as necessary to test their working knowledge and
improvements.
The PowerClean Chemicals Institute (PCLi) is our choice to be the supplier of our
laundry chemicals and they also offer laundry seminar not only in Luzon but also
to other regions in the Philippines. We chose them because the lectures are
based from actual experience of running a laundry shop. They have wide
coverage of topics which covers the Business Management such as Financial
Aspect, Taxation, Marketing, Manpower, Machine and the like. They provide
continuous assistance, demo of laundry chemicals and advice of laundry
operations and management even after the seminar. The speakers are experts in
Laundry Business in which they already trained more than 1,300 Laundry
owners. Affordable price of 1,500 each person for early registrants of laundry
shop session. They also continuously improve their training facility with free wifi
access.
The owner should understand his choice of employees and time invested to train
them results in a direct reflection in his marketing efforts and money spent on
those efforts. All of the owners best intentions to provide a clean, well equipped,
multi-service, and attractive store to his customers will be wasted if there are
any employees who do not provide to his customers the level of service, clean
appearance, and customer friendly attitude they expect and his deserve for his
investment.
At all times, the owner should remind his employees that their top priority is
their customers interests. From welcoming the customers to the shop, to
keeping the machines, and floors clean, keeping bathrooms clean, and properly
supplied, taking in Wash-Dry-and Fold and Pressing, peacefully resolving
customer issues and complaints, and having that all important good attitude.
Monitor also the employees closely and fix any employee problems immediately.

41

Motivating & Rewarding Employees

1. Recognize and appreciate about the good things employees do. They will do
less negative and will strive to do more of the positive things the owner is
recognizing. It is far easier to lead people to improved performances by
thanking them when they do it right than giving them grief when they do it
wrong.
2. Take a moment to celebrate like having a party. . It is too easy to get so
caught up in the daily struggle that you never stop to recognize the good
work you and your attendants do.
3. Praise and recognize the star performers. Some of your recognition budget
should certainly go toward spotlighting role model performances and role
model employees. This makes them feel good, encouraging them to stay on
board and keep trying hard. And it gives everyone a bit of inspiration and a
clearer idea of what you want employees to shoot for.
4. Recognize good effort, not just results. When employees have had a tough
week, throw a mini-party for them. Bring in some pizza, a cheesecake or
whatever inspires the owner and share it with the team. Or try writing a
personal thank-you card for each attendant perhaps picking out a different
design for each and having some fun recognizing individuals in your
selection.

42

FINANCIAL ASPECT
The purpose of this chapter is to project how much startup capital is needed,
sources of capital, return on investments and other financial considerations.
Considerations
1. The owner shall invest P 500,000.00 in the business as shown in the next
page, which approximates the total pre-operating expenses.
2. A service rendered is on cash basis.
3. The equipment and leasehold improvements are to be depreciated on a
straight-line basis.
4. For simplicity, all employees are presumed to be single and that they have no
dependents for purposes of computing the withholding tax.
5. Income tax is computed using the tabular tax rate for individuals provided by
the National Internal Revenue Code.
6. There are no other current liabilities aside from the employee benefits and
income tax since the entity pays its obligations before the end of the year.
7. Owner/Manager will withdraw instead of salary.

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LoveVaHonMo KaVangYu
PROJECTED FIVE YEAR COMPARATIVE BALANCE SHEET

45

LoveVaHonMo KaVangYu
PROJECTED YEAR COMPARATIVE INCOME STATEMENT

Cost of Services Provided

46

LoveVaH
onMo KaVangYu
Depreciation Table

47

LoveVaHonMo KaVangYu

48

PROJECTED STATEMENT OF CHANGES IN OWNERS EQUITY

SOCIO ECONOMIC-STUDY AND ENVIRONMENTAL IMPACT

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This chapter in general provides information about the socio economic study
of the business as well as its environmental impact. This will tackle the benefits that
can be rendered to the customers, the owners and the staff and how to keep the
environment safe from the chemicals that are main components of the laundry
business.
Socio-Economic
The proposed laundry business, LoveVaHonMo KaVangYu will bring
satisfaction to customers, who are looking for a laundry shop that will cater good
services of cleaning their clothes at a reasonable price. The business will help the
customers or individuals to maximize their time for other work and serve comfort to
the customers.
Contribution to the Economy
The proposed business will benefit the economy through providing
employment to every individual especially within the resident covered by the study.
This will give the hired employees and their families their source of income for their
living needs. This business will support local workers. It will also promote the
business and also contribute to the competition which will lower the price of the
product but will maintain the quality of the products.

Contribution to the Government

As Filipino citizens, the business owners will pay their tax liabilities mandated
by the law. Tax will help the government generate funds for the improvement of
public service and government projects.

Contribution to the Society

LoveVaHonMo KaVangYu business will keep this town marketable to attract
more investors that will help the community for its improvements and
modernization, which, in turn leads to money placed directly into the community.

Environmental Impact
Environmental impact of cleaning agents is the consequences of chemicals
contained in the products. We can't deny the fact that our environment is the first
affected by what we are doing especially when it involves upgrading our works
through the help of technology. Simple things like using a car as a means of
transportation can contribute or rather give impact to our environment. Laundry
business like LoveVaHonMo KaVangYu, perhaps gives an impact to our environment.

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The machines that we used emit greenhouse gasses (CO2) that add effect to what
we are experiencing nowadays, the "global warming".
Another thing is the used of detergents and bleaches in washing garments.
Although the place is not near the river in which fishes could die, detergents may
still affect our environment. Like lots of fillers used in powder detergents are poured
in drains causing wastage of useful products like common salt / washing soda and
choking of drain / sewerage system. Components of detergents like sodium sulphate
can wreak havoc on septic system. Synthetic detergents and our laundry practices
are contributing to our ground level water pollution.
The laundry business is aware of its harm to the environment from the
chemical substance that will be used as stated above. Since the proposed business
have to make sure that it will not cause any harm to the people and environment as
well, it has to make sure to treat every water it throws.
The water treatment will use filtration system for removal of contaminants by
chemical and physical bonding. The proposed business will make this process cost
friendly and more effective.

CONCLUSION AND RECOMMENDATION

The market study determined the demand for service through research on
the residents on the particular area from Brgy. Ligaya, Liwanag and Liwayway. The
study conducted revealed the demand for the service and enabled to come up with
an efficient marketing program that will support the viability of the business in its
first stages of operation and expected to last in the long run. Generally,
LoveVaHonMo KaVangYu Laundry Shop is seen to be feasible upon studying its
location, market demand and the factors affecting the market. It is recommended
that an extensive study for other aspects of the business feasibility is conducted
and the execution of the marketing program developed accords to what really
satisfies the market.

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Romblon State University

College of Engineering and Technology
Department of Civil Engineering

Feasibility Study
LoveVaHonMo KaVangYu Laundry Shop

Prepared by:
Dorothy Leonardo
Uzziel Wynne Dalisay
Keith Anin
Jay Mark Venus
Johnnel Steve Manalon
Sahra Mae Pastor
Daphne Ferranco

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TABLE OF CONTENTS
Introduction
Rationale
Business Description
Business Name
Business Location
Service Description
Marketing Aspect
Area Covered
Target Market
Competitors
Market Need
Demand Analysis
Supply Analysis
Laundry Services Offered
Prices
Income Projection
Advertising and Promotion
SWOT Analysis
Technical Aspect
Commercial Space for rent
Space Layout
Operating Procedure
Filtration Process
Operational Equipments
Laundry Cleaning Products
Supplies
Costing
Management Aspect
Form of Ownership
Business Culture
Manpower Requirements
Organizational Structure
Job Description and Duties
Segregation of Duties
Management Style
Motivating & Rewarding Employees
Financial Aspect

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1
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2
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6
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36
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Considerations
Pre-Operating Expenses
Projected Balance Sheet
Projected Income Statement
Projected Statement of Cash Flows
Statements in Changes in Equity
Return on Investment
Payback Period
Socio Economic Aspect
Contribution to the Economy
Contribution to the Government
Contribution to the Society
Environmental Impact
Conclusion and Recommendation

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