ChapterI

SummaryofProject

A NameoftheProject

SavepointCarwashwillbethenameoftheproject.

Asidefrombeingeasytoremember,this namecreates adirectrepresentationofthe

businesswhichistoservethecustomerswhoarewearyandtiredfromtheirjourneywiththeir
automotive.Itsendsamessagetothecustomersthatthisbusinessdoesnotonlyfocusesoncar
care but also the welfare of the customers. The name is simple yet formal and it tells
immediatelywhatthecompanyisabout.
The business name becomes an important aspect of the business because it helps
establishtheidentityofthecompanyanditisrepresentativeofthegoalsofthebusinesswhichis
toprovidehighqualityservicestotheircustomers.

B Location
ThemainsiteofthebusinessislocatednearLanangBusinessPark,DavaoCity.Thesaid
placeis300metersawayfromLanangBusinessPark.(DeltaBldg.Km.7,Lanang,DavaoCity)

Figure1.2.1ProspectivelocationofSavepointCarwash
 C DescriptiveDefinitionoftheProject

Thisprojectisaservicetypeofprojectwhichdealsdirectlywiththeclients.The
proposedprojectofferscarwashandmassagechairfacilities.Themainfocusoffersthese
twomaintypesofservices.
BusinessthatofferscarwashiscommonhereinDavaobutwiththisbusinessits
afirsttohavecarwashwithmassagechair.Thisbusinessprovidesassurance,comfort
andaffordablepricethatwouldcatertotheclientsneeds.
Thecarwashindustryisanestablishedindustrythatcontinuestogrowduetothe
increasingdemand.Togetherwiththemassagechairwhichisanaffordablerelaxation
comparedtoanactualsalon.
Peoplearealwaysonthegonowadaysnooneisexemptedfromthefastpaced
worldwearecurrentlylivingin,becauseofthisreasonwehavearetryingtoestablish
thisbusinessthatcatertothistypeofsituationsthateverybodyisfacing.

D ProjectsLongrangeObjectives

Inthenextten(5)years:
1 Topenetratethemarketbycapitalizingontheefficiencyofservicesofferedatreasonable
priceatagreaterqualitycomparedtoitscompetitors.
2 Servicesrenderedwillsubstantiallyincreaseby3%peryear.
3 Toestablishareputablenameasanedgeproviderofcompetent,efficient,effective,and
accurateworkersinordertoestablishavalueforthebusiness.
 CHAPTERIIMARKETSTUDY

Thischapterdescribestheserviceandthemarketofthebusiness.Italsocontainsthesizeof

thedemandfortheserviceandsupplysituation,differentmarketfactorsandhowitwouldaffect

the business operations. The ultimate part of this chapter discusses marketing policies and

programsthatwouldbeimplementedintheoperationofthebusiness.

A. SERVICEDESCRIPTION
BusinessName
ThenameofthebusinessisSavepointCarwash.SavepointCarwashisamanual

carwashservicethatofferstopqualitywashingandserviceforcarownersinLanang,

Davao City. It also provides a moneyoperated relaxation massage chair for the

customerswhowishtorelaxwhilewaitingfortheircar.SavepointCarwashislocatedin

frontofPhoenixGasStation,Km.7DeltaBldg,J.PLaurelAve.,Lanang,DavaoCity.
BusinessLogo
Geographicalareasofdispersion
In the location where our business is strategically located, there are other

businesseswiththesamenatureasofourswhocaterthemarketsdemand.Thesaid

businesses are Hyenas Car Spa, and Gorilla Carwash which are located within the

vicinityofourbusiness.
B. MARKETDESCRIPTION
Thecarwashindustryisgrowinganditisoneofthehugemarketspotentialin

todaystimebecausealmostallbrandofcarsneedtocarwash.Thetargetmarketofthis

studyisthecarownerswholivenearbyresidentialareasinLanang,DavaoCity,taxi

drivers,andcarownerswhoworkinDavaoDisplayCenter.

Thefollowingdatadescribestherespondentsoftherandomsurveyconducted.


Figure2.2.1:Demographicsbysex

Figure2.2.2:DemographicsbyOccupation
 Male
Female
Self-Employed
Government Employee
Employed in Private
Organization
Student

Figure2.2.3:TargetMarketoftheproposal

C. DEMAND
Demand is an economic principle that describes a consumer's desire and

willingness to pay a price for a specific good or service. In other words, it is the

willingnessofanindividualtobuyacertainproductoravailservicesatagivenprice.

Understandingthemarketdemandisanimportanttoolinstudyingthepotentialmarket

foracertainbusiness.Itdetermineswhetherthesaidbusinesswillbemarketableor

profitableinthefuture.Theanalysisofmarketdemandinthisstudyisbasedonthe

secondarydataacquiredbytheproponentsonareasconcerningthecarwashindustry.
However,differentfactorsaffectingthemarketmustbeconsideredindetermining

thedemandofacertainindustry.Onefactorthatwillaffectmarketdemandisthepriceof

theservice.Currently,thepricesofcarwashservicesbetweencompetitorsdonotgreatly

differfromeachothersprices.Therefore,pricesfortheproposedbusinessarebasedon
 thecurrentmarketprices.Anotherfactoristheincomeoftheconsumers.Theincome

willgreatlyaffectthewillingnessoftheconsumertoavailoftheservice.Iftheincomeof

theconsumerincreases,therewillalsobeanincreaseinthedemandandviceversa.

Lastly,thecarpopulationgrowth.Anincreaseordecreaseinthecarpopulationwill

surelyaffectthedemandsinceitisthebasisforthetrendoftheproposedbusiness.

DemandAnalysis

Survey Result

Carwash 25% Home

75%

Figure2.3.1RespondentsPreferenceSurveyResult

Onthesurveyconductedbytheproponents,74.8%ofthetotalnumbersofrespondents

prefertowashtheircarinacarwashservicecenter.Giventhisresult,thereisahighdemand

for carwashservices in the local market. However, there are other factors needed tobe

consideredinanalysingthedemandforthesaidservice.Otherfactorsincludethefrequency

ofavailingtheservice,andthevehiclepopulationwithinthecity.
 Frequency of Availing the Service

Once a week
8%
6% Twice a Week
6% Once a Month
38%
Twice a Month
Others

43%

Figure2.3.2FrequencyofAvailingtheService

Thetableaboveshowstheresultofthesurveyonhowfrequentthecarownersavailof

the carwash services. Given the data, 37.90% avails the carwash service once a week,

42.50%,twiceaweek,6%foronceandtwiceamonth,and7.6%others.Thus,ifthemarket

availstheservicefortwiceaweek,inoveralltherewouldbeanincreasingdemandforthe

service.

Motorcycle/Tricycl Growth
Year Cars UV SUV Total
e Rate

2012 14,391 33,892 5,862 84,582 138,727

2013 15,629 34,636 7,079 86,649 143,993 3.80%

2014 14,763 33,568 6,210 73,107 127,648 (11.35%)

2015 14,052 32,827 6,381 73,487 126,747 (1%)

2016 13,600 31,600 6,591 73,487 125,278 (1.16%)

Table2.3.3:PopulationofVehicles(basedonthedatagatheredfromtheLandTransportation

OfficeXI)
TheproponentsobtainedthenumberofregisteredmotorvehiclesinDavaoCityfromLand

TransportationOfficeXI.Fromthestatisticsgivenbytheoffice,theproponentsonlyinclude

in thetotalnumberofcar population thosevehicles thatare mostlikelytoavail ofthe

carwashservices.Thesevehicles arethefollowing:Cars,UtilityVehicles,Sports Utility

Vehicles(SUVs),andMotorcycles/Tricycles.

Basedonthedatagathered,thetotalnumberofregisteredvehiclesincludedinthetarget

marketincreasedby3.80%intheyear2013,andin2014amajordecreaseof11.35%.In

2015 and 2016 the population of vehicles still decreased but not as much as the major

decreasein2014.Giventhecarpopulationpattern,ifthepopulationofvehicleswillstill

decreaseinthesucceedingyears,thedemandfortheproposedcarwashbusinesswillalso

decrease.

Inconclusion,thereisademandfortheserviceinthelocalmarketbasedontheresearch

surveyundergone.However,thedemandfortheserviceisdecreasingduetothedecreasing

populationofregisteredvehiclesinthecity.

D. SUPPLY
Forthisstudy,theproponentsusedsecondarydataasmeanstogetthesupplyof

thepastfiveyearsfromDavaoCityBusinessBureau.

SUPPLYFORTHEPAST5YEARS

YEAR NUMBER OF CARWASH GROWTHRATE

BUSINESSES

2012
 2013

2014

2015 121

2016 113

Table2.4.1:Supplyforthepast5years(NumberofCompetitors)

E. DEMANDSUPPLYANALYSIS

F. PRICESTUDY

Competitors

Based on the gathered data, the proponents identified several factors as to why its

competitors set certain prices on their services. One factor is that, the prices given by the

competitorsarebasedonthecurrentpricingofthemarket.Theysetpriceswithintherangeof

pricesgivenbytheindustry.Also,thepricessetbytheentitysmajorcompetitorsaremadeto

put in mind a basic pricing objective which is to maximize their profit. These established

businesseshavesetthepriceoftheirservicessothattherevenuesearnedcancoverallexpenses

incurredallthroughoutthecourseofitsbusinessoperations.

Asidefromthisprofitabilityobjective,theyalsoconsideredtheprofitmarginsearnedby

thebusinessinthepastyears.Intheory,ifthebusinesshasbeenexperiencingariseinprofit

margin,theimplicationisthatrevenuehasincreasedattributedtoanincreaseinthepricebutit

couldalsobethatexpenseshasbeendecreasedwhilethepriceremainedconstant.Businesses

tendtowantahigherprofitmarginthanthepreviousyearandforserviceorientedentities,price

isoftenincreasedbecausetheirexpensesaremostlyfixed.
Entity

Sincepeoplearechoosingthemosteconomicalamountofexpenses,theproponentstook

thehighestconsiderationonthecompetitiveenvironmentinwhichtheentityoperatesforitis

alwaysanaimofthebusinesstoestablishanedgeagainstitscompetitors.Inpricingtheservices

SavepointCarwashprovides,themarketbasedapproachisusedasamethodofbasisinsetting

upthepriceofitsservices.

ProjectedRevenue

Carwash

Year1:2017=18carsperday

Projected Projected Projected

Numberof
CarType Price Daily Monthly Annual
Cars
Revenue Revenue Revenue

Small

BasicWash

Package#1

Package#2 2 P60 P120 P3,120 P37,440

2 P130 P260 P6,760 P81,120
1 P160 P160 P4,160 P49,920
Package#3
P230
1 P150 P150 P3,900 P46,800
Package#4
Medium 4 P320 P8,320 P99,840
2 P80 P320 P8,320 P99,840
1 P160 P200 P5,200 P62,400
BasicWash P200
 Package#1

Package#2

Package#3
P300
P200
Package#4
Large

BasicWash

Package#1

Package#2 3 P100 P300 P7,800 P93,600

1 P200 P200 P5,200 P62,400
P250
Package#3
1 P350 P350 P9,100 P109,200
P250
Package#4
Total 18 P2,380 P61,880 P742,560

Table2.6.1:ProjectedRevenuefortheYear2017(Carwash)

Thenumberofcustomersintheprojectedrevenueforcarwashsegmentcomputedabove

isbasedonthecurrentcustomersperdayofothercompetitors.Basedontheinterviewconducted

bytheresearchers,thenumberofcarswashedperdayisbetween1520cars.Inthisstudy,the

averageofitwasusedonthefirstyeartodeterminetheprojectedrevenue.Projectedrevenuefor

yeartwotofivecanbefoundontheNotestoFinancialStatements.

MassageChair

Projected Projected Projected

Number of
Duration Price Daily Monthly Annual
Customers
Revenue Revenue Revenue
2017=8customers

6minutes
P20 2 P40 P1,040 P12,480
15minutes
P50 4 P200 P5,200 P62,400
P100 2 P200 P5,200 P62,400
30minutes
TOTAL(2017) 8 P440 P11,440 P137,280

Table2.6.2ProjectedRevenuefortheYear2017(MassageChair)

In computing the projected revenue for the massage chair segment, the number of

customersusedinthecomputationisbasedonthesurveyresultwhere41.8%ofthosewhowill

availofthecarwashservicewillalsopreferablyavailofthemassagechairservice.Projected

revenueforthesucceedingyearscanbefoundontheNotestoFinancialStatements.

G. MARKETINGPROGRAM

Carwashisalreadyanestablishedbusinessinmanyplaces.Itisalsopresentinmanyareashere

inDavaoCity.Thus,makingithardforanewentrantbusinesstocompetewithitsexisting

competitorswithoutestablishinguniquemarketingstrategiesandcopingupwiththenewtrends

aboutthecarwashindustry.

SWOTAnalysis

Strengths

Locatednearsubdivisionsandcommercialareas.

Servicesarereasonablypriced.
 Designedaccordinglytoawellsuitedcarwashenvironment.

Providesqualityservices.

Offersotherservicewhilewaiting(referringtomassagechair).

Weaknesses

Slackseasonswhenacarownerpreferstowashhiscarathome.

Servicesofferedcouldbethesameasothercarwashbusinesses.

Newlyopenedbusinessmaytakesometimetoattractpotentialcustomers.

Opportunities

Increaseinnumberofcarownerswithinthearea.

PartnershipwithSUVs,PUVs,andtaxioperators.

Industrygrowthandinnovation.

Capitalizethroughpromotionsinsocialmediaandothermarketingscheme.

Threats

Increasingnumberofcompetitorsinthearea.

Possibledecreaseinmarketdemand.

Competitorsmarketingschemesandstrategies.
 Decreasingcustomerdiscretionaryspending.

Promotion

For the business to have an edge in the market, it should have different ways in

implementingitsmarketingpromotiontoitstargetcustomers.Onethingtobeconsideredin

promotionistheinterestofthecustomers.ToacquaintthetargetmarketofSavepointCarwash,

theuseofsocialmediasites,referralsorwordofmouth,leafletsandtarpaulinswillbeusedto

promotethecarwashbusiness.Bymeansofsocialmediasites,thecarwashwillbepromoted

throughmakingFacebookPage,TwitterAccount,andInstagramAccountpostingsignificant

detailsorinformationaboutthecarwashthatarehighlyappealingtocustomersspecificallyabout

itslocation,servicesitoffers,thepriceorrateoftheservice,facilitiespresent,andotherthings

thatmayappealtothecustomer.Promotionthroughthewordofmouthcanbedonebymaking

referralsfrompeoplewhohadavailedtheservicesoffered.Leafletsandtarpaulinscanalsobe

usedbyplacingittoplacesthatarevisibletothepublictoenticecustomerstoavailcarwash

services.Inaddition,thebusinesswillalsoofferdiscountsandotherpromotionsforthebusiness

tobeknowntoitstargetcustomers.

EstimatedCostforMarketing

ModeofPromotion/Advertising Size Quantity Price Amount

Leaflets
P220/ream
8x5.5inch 1ream P220
Supplier: Double J Graphics, Bolton St.,
sub.16
DavaoCity

Tarpaulin 3x2sq.ft. 10pieces P15.00/sq.ft P900

Supplier: Double J Graphics, Bolton St.,
.
DavaoCity

PanaflexSignage(Lighted)

3x10sq.ft 1piece P380/sq.ft. P11,400

Supplier: Double J Graphics, Bolton St.,

DavaoCity

Social Media (e.g: Facebook, Twitter,

None
Instagram,Blogs,etc.)

Referrals None

TOTAL P12,520

Table2.7.1:EstimatedCostforMarketing

ModeofDistribution/Use

Leaflets Leaflets are to be distributed by Savepoint

Carwashpersonnelfromthefirstdayuntilthe

first three months of operation. It should be

distributedindifferentbusinessestablishments,

residential areas, commercial areas, and

schoolsfortheyarethemajortargetmarketof

thestudy.Itshouldbeplacedwhereitcanbe

easilyreachedbyinsertingitthroughthecar

wipersadjacenttothefrontageglass.

Tarpaulin Tarpaulins are to be placed in front of the

establishment,alongsidecornerofthepremise
 thatisvisibletopassers,andareasalongthe

highwayofLanangRoadandAngliongtoAve.

PanaflexSignage(Lighted) Lighted Panaflex Signage is placed on the

establishment where it serves as the main

signageoftheshop.

SocialMedia Savepoint carwash personnel are the ones

assignedforthemakingofsocialnetworking

sitesandblogstoenticethecustomersabout

theshop.

Table2.7.2:ModeofDistribution/UseofAdvertisingParaphernalia

CHAPTERIII

TECHNICALFEASIBILITY

A. TheService

SavepointCarwashofferstwo(2)linesofservices.Thesearethefollowing:1)Carwash
and2)MassageChair.Thiswillbethefirstevercarwashbusinesswithamassagechair
concepthereinDavaoCity.Thebusinesspointistoprovideservicesandconvenienceto
peoplewithitstwolineservices.
 CARWASHBUSINESS

SERVICES What A Day Kingsdrift Driftworx Savepoint

Carwash Carwash Carwash Carwash

BasicCarWash

P60 P70 P60 P60

Small

Medium P80 P90 P80 P80

Large P100 P110 P100 P100

PACKAGESERVICES:

1. Basic Wash + Engine Wash +

Vacuum
P120 P130 P120 P130
Small
P160 P170 P160 P160
Medium

P200 P210 P200 P200

Large

2. BasicWash+Wax+Vacuum
P170 P160
Small

Medium P210 P200

Large
P260 P250

3. Basic Wash + Engine Wash +

Wax+Vacuum

Small
P230 P240 P230
Medium
 P290 P320 P300

Large
P360 P400 P350

4. Basic Wash + Engine Wash +

UnderChassisWash+Vacuum

Small P180 P140 P150

Medium P240 P200 P200

Large
P300 P260 P250

Table3.1.1DifferentpricingofdifferentcarwashservicecentersincludingSavepointCarwash

MassageChair

Duration Price

6minutes
P20
15minutes
P50
P100
30minutes

Table3.1.2PricingofMassageChair

B. SERVICEPROCESS(MAINACTIVITIES)
CarwashService

Inquire
to the
Custome Choose Pay to
cashier
r Service the
cashier

Assign a
car
End of Perform
Transactio
attendan
Service t
n

Figure3.2.1CarwashServiceProcess

MassageChairService

Insert bill
to the
End of
massage Gets
Customer Transactio
chair Service
n
eqiupmen
t
Figure3.2.2MassageChairServiceProcess

Carwash

1) Customerarrivesandinquireonthecashier
 2) Thecustomerwillchooseoneitherindividualserviceorpackageservice
3) Afterthecustomerchoose,cashierwillgetthepayment
4) Thecashierwillinformandassignacarwashattendant
5) Carwashattendantgetsthekeytothecustomerandperformtaskbasedontherequestof
thecustomer
6) Aftertheservice,thecarwashattendantwillreturnthekeytothecustomer

MassageChair

1) InsertBilltotheMassageChairEquipment.Ifthecustomeriswillingtowaitforthecar
tobecompletelywashed,thecustomermayhavetheoptiontogotothemassagechair
area. The customer will insert a bill composes of twenty pesos (P20)for thirty (30)
minutesandfiftypesos(P50)forone(1)hour.
2) GetsService.Afterinsertingabill,themassagechairequipmentwilldotheprocess.
Oncetheprocessisdone,themassagechairequipmentwillturnonandstartstomassage
thecustomer.

C. BUSINESSLOCATION

TheSavepointCarwashwillbelocatedatKm.7,DeltaBldg.,Lanang,DavaoCity.The
proponentschosethisareabecauseofitsaccessibilitytocardisplaycenterssuchasToyota,
Subaru,Honda,MitsubishiandFordmakingtheircustomersasprospectcustomers.Also,there
wereonlyfewcarwashcentersalongLanang,DavaoCitymakingitasanopportunityforthe
proponents.Furthermore,mostofprospectbusinessestablishmentsweregoingNorth(suchasin
Lanang,Sasaandthelike)andSouth(suchasBangkal,Torilandthelike)oranywherefarfrom
the downtown. The reason is maybe because it is already crowded since most of the
establishmentswerebuiltaroundthedowntownarea.

D. EQUIPMENTS

CounterArea

Item Description Quantity Price Total

ComputerDesk SUPPLIER: 1 P3,430.00 P3,430.00

Mandaue Foam
(Lanang,DavaoCity
Branch)

LowBackChair 1 P2,359.00 P2,359.00

Thecashiershallbe
providedwiththis
 chair

SUPPLIER:

EMCOR (Bajada,
DavaoCity)

DesktopComputer 1 P13,700.00 P13,700.00

SPECIFICATIONS
:

(IntelPackageDual
Core)

4thGENG32603.3
GHZ

2GBDDR3,500GB

15.6LEDWIDE
Monitor

SUPPLIER:

Computer World
Marketing (Roxas
Ave.,DavaoCity)

TOTALFURNITUREANDFIXTURESANDEQUIPMENT P19,489.00
COUNTERAREA
Table3.4.1FurnitureandFixturesandEquipmentsinthecarwashcounterareawithcorrespondingdescription,
quantityandprice

CarwashArea

Item Description Quantit Price Total

y

ElectricPowerSpray SPECIFICATIONS 1 P7,000.00 P7,000.00

 :

Easy,convenient
operationfora
multitudeofcleaning
tasks

Includingextra
accessories

BRAND:

Hercules

SUPPLIER:

J.H.HardwareCo.
(RamonMagsaysay
Ave.,DavaoCity)

AirCompressor SPECIFICATIONS 1 P12,000.0 P12,000.00

: 0

Singlephase
1HPinductionmotor

Single
cylinder

BRAND:

Vespa

SUPPLIER:

J.H.HardwareCo.
(RamonMagsaysay
 Ave.,DavaoCity)

Vacuum SPECIFICATIONS 1 P7,000.00 P7,000.00

:

Easy
transportationand
loadingduetothe
particularlycompact
design

Robustand
powerfuldust
extractor

Compactand
impactresistant

BRAND:

Zekuke

SUPPLIER:

J.H.HardwareCo.
(RamonMagsaysay
Ave.,DavaoCity)

FoamWasher SPECIFICATIONS 1 P7,500.00 P7,500.00

:

Convenient in terms
of shampooing the
car

BRAND:
 Victor

SUPPLIER:

ATIN Industrial
Hardware Supply
Inc. (Ramon
Magsaysay Ave.,
DavaoCity)

Polisher/Buffing SPECIFICATIONS 1 P,5000.00 P5,000.00

:

Convenient and easy

todryandpolishthe
car

BRAND:

Kel

SUPPLIER:

J.H. Hardware Co.

(Ramon Magsaysay
Ave.,DavaoCity)

Pail/Bucket SPECIFICATIONS 2 P51.60 P103.20

:

Manual carwash will

neverbeoutofstyle.
This will be used if
ever it is a busy
 season and carwash
equipments are not
vacant

BRAND:

Handyman

SUPPLIER:

Handyman (Gaisano
Mall of Davao
Branch)

StepLadder SPECIFICATIONS 2 P1,599.75 P3,199.50

:

This is used
especially when
cleaningthetopload
ofthecar

BRAND:

Handyman

SUPPLIER:

Handyman (Gaisano
Mall of Davao
Branch)

WaterDrum SPECIFICATIONS 2 P600.00 P1,200.00

:
 This will be a water
storage. The electric
power spray will be
connectedhereusing
the pressurized hose
for an easy direct
sprayintothecar

SUPPLIER:

ATZKARL Trading
(Km. 9, McArthur
Highway, Puan,
DavaoCity)

TOTALFURNITUREANDFIXTURESANDEQUIPMENT P43,002.7
CARWASHAREA 0
Table3.4.2FurnitureandFixturesandEquipmentinthecarwashareawithcorrespondingdescription,quantity
andprice

MassageChairArea

Item Description Quantity Price Total

VendingMassageChair USAGE 2 P134,000.00 P268,000.00
CHARGES:

6minutes=P20

15minutes=50

30minutes=100

SIZE:

4sq.meter

2 Chairs
Information
StandPlatform

SUPPLIER:

Positive Living
Station, Westgate
TowerAlabang,
MuntinlupaCity

PublicChair SPECIFICATIO 2 P4,650.00 P9,300.00

NS:

These chairs will

beprovidedatthe
massage chair
area for waiting
customers
 SUPPLIER:

Mandaue Foam
(Lanang, Davao
CityBranch)

TOTALFURNITUREANDFIXTURESANDEQUIPMENTMASSAGE P277,300.00
AREA
Table3.4.3FurnitureandFixturesandEquipmentinthecarwashreceptionareawithcorrespondingdescription,
quantityandprice

AuxiliaryandSafetyEquipment

ITEM DESCRIPTION QUANTITY PRICE TOTAL

EmergencyLight 2 P1,595.00 P3,190.00

FEATURES:

2x3WattsLEDBulb

6V4.5AhLeadAcid
Battery

BRAND:

Firefly

SUPPLIER:

Handyman (Gaisano
Mall of Davao
Branch)
FireExtinguisher 2 P1,800.00 P3,600.00
SPECIFICATIONS
:

(10lbs.ABC)

DryChemical

CanputoutABC
fires

10lbs.(4.5kgdry
weight)

SUPPLIER:

Handyman (Gaisano
Mall of Davao
Branch)

Generator 1 P34,000.00 P34,000.00

SPECIFICATIONS
:

6.5kVa

Diesel

SUPPLIER:

ATINIndustrial
HardwareSupplyInc.
(RamonMagsaysay
Ave.,DavaoCity)

TOTALFURNITUREANDFIXTURESANDEQUIPMENT P40,790.00
AUXILIARYANDSAFETYEQUIPMENTS
Table3.4.4FurnitureandFixturesandEquipmentsAuxiliaryandSafetywithcorrespondingdescription,quantity
andprice
 TOTALFURNITUREANDFIXTURESANDEQUIPMENT P380,581.70
Table3.3.5TotalFurnitureandFixturesandEquipment

E. BUILDINGANDFACILITIES
a. Thecarwashareaisa550squaremeterexistingconcreteslabsite.Itconsistsofthree
(3)carparks.Theremaining50squaremeterisallottedfortheconstructionofa
small counter for the cashier. The total building and facilities is estimated at
P635,000.00.Thisisbasedontheestimateofanarchitect.(PleaseseeonAppendix_
thebreakdownforestimates)
b. Thelandisa600squaremeterarealocatedatKm.7,DeltaBldg,Lanang,Davao
City. The cost of rent is P50,000.00 per month. This is based on the agreement
betweentheproponentsandtheowner.

F. MATERIALSANDSUPPLIES

Supplies Supplier Price Quantity Quantity Total

WashandWaxShampoo

MicroMagic Handyman P149.00 4 1000mL

Microtex Handyman P350.00 2 2000mL P648.00

TireBlack

MicroMagic Handyman P59.00 40 100mL

Microtex Handyman P999.75 1 1gallon P1,679.88

Dashboard

Microtex Handyman P749.75 1 1gallon

ArmorAll Handyman P270.00 8 500mL P1,454.88

Wax

Microtex Handyman P279.00 2 500mL

TurtleWax Handyman P370.00 1 1000mL P464.00

GlassCleaner

Polyglaze Handyman P179.75 2 500mL

ArmorAll Handyman P220.00 2 500mL P399.75

MetalPolish

MC Handyman P53.00 2 125mL

Kiwi Handyman P183.00 2 125mL P236.00

MicroFiberCloth

Turtlewax Handyman P310.00 2 5in1

ProKlean Handyman P219.75 2 5in1 P529.75

Concept

SuperSponge

MicroMagic Handyman P87.75 3 1pc

Elevo Handyman P109.75 3 1pc P296.25

WaxPad

MicroMagic Handyman P87.75 2 4in1

Microtex Handyman P120.00 4 2in1 P327.75

Chamois

Aion Handyman P420.00 4 1pc

Formula1 Handyman P229.75 2 2in1 P1,069.75

TOTALCARWASHSUPPLIES P7582.01
Table3.5.1TotalSupplieswithcorrespondingdescription,price,unitandquantity
 G. UTILITIES

Source AlternativeSource Installation AnnualPayment

Utilities

Electricity DLPC,PrimaryRetail N/A 0 P14,000.00

Water DCWD N/A P3,000 P15,000.00

TotalAnnualPayment P29,000.00

TotalInstallationFee P3,000

TotalUtilitiesandTelecommunicationsExpenseforyear1 P32,000.00

Table3.7.1TotalUtilitiesandTelecommunicationsExpensefor1year

H. WASTEDISPOSAL

AsmandatedbytheDavaoCityEcologicalSolidWasteManagement,thebusinessshall
implement the segregation of waste from biodegradable to nonbiodegradable, recyclable,
residualandspecialwaste.Moreover,thecompliancetothisordinanceisimportantinorderto
maintainandmonitorthecleanlinessandsanitationoftheCarwash.

L.LABOR

JOBNAME JOBTYPE EXPECTEDSALARY

Cashier Administrative P8,450

CarwashAttendants DirectLabor P8,450

MassageChairOperator Maintenance P8,450

Table3.9.1Jobdescription,jobtypeandtheircorrespondingsalaries
TOTALNUMBEROFWORKERS

POSITION COUNT

Cashier 1

CarwashAttendants 2

MassageChairOperator 1

TOTAL 4

Table3.9.2TotalNumberofWorkers

SCHEDULEOFDIRECTLABORCOST:

MONTHLYANDANNUAL

JANUARY P16,900

FEBRUARY P16,900

MARCH P16,900

APRIL P16,900

MAY P16,900

JUNE P16,900

JULY P16,900

AUGUST P16,900

SEPTEMBER P16,900

OCTOBER P16,900

NOVEMBER P16,900

DECEMBER P16,900

TOTAL P202,800

Table3.9.3MonthlyandAnnualScheduleofDirectLaborCost
Note: The above P15,600 is calculated as follows: Sum ofthe salary of two(2) Carwash
Attendants(P325x2)multipliedby26days.TheCarwashAttendantssalariesaretheonly
directlaborcostofSavepointCarwash.

I. SERVICECOST

VariableCosts:

Utilities:

Water(14,000peryr./313days) 44.73/day

Electricity(P14,000peryr./313days) 44.73/day

OtherCosts:

Wash&WaxShampoo[(48gallonsperyr.xP648.00)/313 99.37/day

days] 64.40/day

TireBlack[(12gallonsperyr.xP1,679.88)/313days] 55.78/day

Dashboard[(12gallonsperyr.xP1,454.88)/313days] 35.58/day

Wax[(24litersperyr.xP464.00)/313days] 23/day

GlassCleaner[(18litersperyr.xP399.75)/313days] 9.05/day

MetalPolish[(12litersperyr.xP236.00)/313days] 13.54/day

MicroFiberCloth[(8pcsperyr.xP529.75)/313days] 11.36/day

SuperSponge[(12pcsperyr.xP296.25)/313days] 8.36/day

WaxPad[(8pcsperyr.xP327.75)/313days] 41/day

Chamois[(12pcsperyr.xP1,069.75)/313days]
SalariesandWages: 325/day

Cashier(Php8,450permo./26days) 650/day

CarwashAttendants[(Php8,450permo.X2)/26days] 325/day

MassageChairOperator(Php8,450permo./26days)

TOTALSERVICECOSTPERDAY P1,750.9

TOTALSERVICECOSTPERMONTH P45,523.4

TOTALSERVICECOSTPERYEARforYear1 P548,031.7

Table3.10.1BreakdownofServiceCostperday,monthandyear

CHAPTERIV

MANAGEMENTFEASIBILITY

A. FormofOwnership

SoleProprietorshipisabusinessorganizationwhereinthereisasingleownerknownas
theproprietorwhoisalsothemanageritself.Soleproprietorshipsareasmallservicetype
businesses and retail establishments. The owner itself is entitled to any profits and
 absorbsthelossesofthebusiness.Thisisinlinewiththeassumptionthattheproprietor
hasenoughresourcestostartthebusiness.Also,theownerisresponsibletoactively
managethebusiness.Furthermore,theownerisupdatedaboutthecurrentstateofthe
business.

B. OrganizationalChart

ThefollowingfigureshowstheorganizationalchartoftheSavepointCarwashbusiness.
Itillustratesthetwodifferentsegmentsofthebusiness,whichare:carwashandmassage
chaircarwashbeingthemainsegment.Thisalsopointupthebusinessstructureand
relationshipsofitsworkforce.Moreover,itpresentsthebusinessinformationaswellas
howtheresponsibilityandauthorityofthebusinessarebeingdiscrete.

Owner/
Manager

1 3 Carwash 1 Massage
Receptionist Attendant Chair
/Cashier s Operator
Table5.2.1OrganizationalChart

C. ManagementandPersonnel

a. Manager/Owner
- Isincontroloftheoverallbusiness.Thisincludesbeingthedecisionmakerand
implementerofbusinessrelatedactivities.Furthermore,administerstodirectits
workforcetofunctionwellinthebusiness.

b. Receptionist/Cashier
 - Istasktoentertainandanswersqueriesofthecustomers.Sheisalsoresponsible
topreparethebillandreceivepaymentofthecustomers.Moreover,sheisalso
responsibletoaccountandreportthesalesandcredittothemanagerattheendof
thedayaswellastopaythebillsincurredbythebusiness.

c. CarwashAttendants
- Are in charge to assist the customers and perform their intended task as per
requestbycustomers.

d. Massagechairoperator
- Istasktooperatethemachinesaswellasassistthecustomersincasetheyneed
something.Heshallalsoinchargeinoveralloperationandrepairingincaseany
ofthemachines.Hemayassistthecarattendantsin

KeyPersonnel Number JobQualifications Salaries

Mustbefemaleoflegalage P8,450.00
Atleasthighschoolgraduate
Receptionist/Cashier 1
Can work with less
supervision
Hasapleasingpersonality
Mustbemaleoflegalage P8,450.00
Atleasthighschoolgraduate
Can work with less
CarwashAttendants 2 supervision
Hasapleasingpersonality
Has experience of at least 6
months
Mustbemaleoflegalage P8,450.00
Has a vocational technician
training
Massage Chair Has experience of at least 6
1 months
Operator
Hasknowledgeincarwashto
beabletohelpincaseofpeak
seasons
Hasapleasingpersonality
Table5.3.1LaborRequirementsandSalaries

D. OrganizationalPolicies
1) Thebusinesstwo(2)segmentswilloperatesix(6)daysaweekfromMondaytoSaturday.
2) Thebusinesstwo(2)segmentswilloperatefrom9:00amto6:00pm
3) For appointments, it will be first come, first serve basis. In cases of cancellation of
appointments, inform the receptionist via call or personal appearance at least two hours
beforetoavoiddelay.
4) Salarieswillbepaidtwiceamonthonthe15thdayand30thdayhoweverinventorieswillbe
accountedweekly.

TypesofWorker PerDay 15thDay 30thDay

CarwashAttendants Atminimumwageof P4,225.00 P4,225.00

P325.00

Receptionist/Cashier Atminimumwageof 4,225.00 P4,225.00

P325.00

Massage Chair Atminimumwageof P4,225.00 P4,225.00

Operator P325.00
Table5.4.1BreakdownsofWorkersSalaries

5) Accountantshallbeoutsourcedifneeded.
6) ThebusinesstwosegmentswillbeopenevenifitsholidaysexceptChristmasandNew
Yearseasons
7) Personnelssalariesmayvaryincasesofholidays
8) All transactions made bycustomers shall beincashonly. However, allpayables ofthe
businesstwosegmentswillbepaidbycheckorcash(ifavailable)

CHAPTERV

FINANCIALFEASIBILITY
Thischapterdiscussesaboutthemajorassumptionswithregardstothefinancialaspectofthe

business.Italsohighlightsthetotalprojectcost,theinitialworkingcapitalrequirements,the

alternativesourcesoffinancingthatwasconsidered,themajorsourcesoffinancing,thepro

forma financial statements, the financial analysis, and the accounting and internal control

policies.

A. MAJORASSUMPTIONS

PropertyandEquipmentismeasuredatacquisitioncost.Theyaredepreciated

usingstraightlinemethodwithnoresidualvalue.Buildinghas8yearslifewhile

Carwash,MassageChair,OfficeandOtherEquipmenthas5yearslife.

AnamountofP500000willbeloanedwithasecuredinterestof6.50%for3

yearsandwithmonthlyamortizationofP15324.50

SalariesandWageswillincreaseby3%yearly.

AdvertisingExpensewilldecreaseby20%yearlytolessentheuseofadvertising

supposingthebusinessalreadyestablishgoodwill

RepairsandMaintenanceisfixedforeachyear

InsuranceisconstanteachyearwhichissetbyInsularLife

TaxesandLicensesconsistofBIRRegistration(0605)
B. TOTALPROJECTCOST

C. INITIALWORKINGCAPITALREQUIREMENTS

D. ALTERNATIVESOURCESOFFINANCING

Thereisnoalternativesourcesoffinancingconsideredinthisstudysincetheproposed

projectwillbefinancedprimarilythroughabusinessloanandusingtheownerspersonal

money.

E. SOURCESOFFINANCINGTHEPROJECT

Thesourcesoffinancingtheoperationofthebusinessarethroughbusinessloanina

commercialbankwhichisinBankofthePhilippineIslandsandtheownerspersonal
money.TheamountthatwillbeloanedisP500000.Thetermoftheloanis3yearswith

asecuredinterestof6.50%.
F. PROFORMAFINANCIALSTATEMENTS

SavepointCarwash

ProjectedBalanceSheet
 SavepointCarwash

ProjectedIncomeStatement
 SavepointCarwash

ProjectedStatementofCashFlows
 SavepointCarwash

ProjectedStatementofChangesinOwnersEquity
 NOT
ESTOFINANCIALSTATEMENTS

Note1:PropertyandEquipmentNet

Thisaccountconsistsofthefollowing:

Note2:AccruedExpenses

Thisaccountconsistsofthefollowing:

Note3:LoansPayableandInterestPayable

Thisaccountconsistsofthefollowing:

Note4:Revenue

Thisaccountconsistsofthefollowing:
 Note5:SalariesandWages

Thisaccountconsistsofthefollowing:

Note6:SSS,PHIC,andPagIBIGContributions

Thisaccountconsistsofthefollowing:

 G. FINANCIALANALYSIS

H. ACCOUNTINGANDINTERNALCONTROLPOLICIES

APPENDIX

SSSContributionTable
PHIC
 ChapterVI
SocioEconomicFeasibility

Theestablishmentofthisprojectwouldgreatlyaffecttheemployees,government,apart
ofthepopulationandaltogethertheeconomy.Thefollowingfactorsitcouldaffectare:

EmploymentandIncome

SavepointCarwashwouldbehiringindividualsresidingneartheplaceofbusiness.
This is to make sure that the surrounding community is given a chance to have an
employment,fromwheretheycouldhaveasourceofincometoprovidefoodandother
basicneedstotheirfamily.Andsinceitis nearthebusinessitwouldensurethatthe
employeeswouldsavetransportationcostastheytraveltoandfromthebusiness.Wealso
thoughtthatthebestwaytohelptheneighbouringcommunityistogivethemlongterm
assistancebyprovidingworkandgrantingthemapermanentsourceofliving.Ifthey
wouldbeemployed,theproprietorcouldbetterlistentotheirpleaandtendtotheirneeds.

ThistoowouldhelpthemavailofthebenefitsfromSSS,PhilHeathandPagIBIG,
since their employment would mean that they will be contributing, together with the
employerscontributionstotheseagencies,asitisdirectedbylaw.

FeesandTaxes

Aspartofthegovernmentrequirementandsincethecompanyaimstomakean
income from its operations, Savepoint Carwash would also pay taxes. This taxes would
financiallyhelpthegovernmentitsexistence,itsoperationsanditsprojects.

Inasoleproprietorship,theproprietorwouldbetaxedbasedonthetaxrateonsalaried
individualsvaryingthroughtheincomederivedfromagivenperiod.ThisCarwashwouldbean
opportunityforthegovernmenttohaveanadditionalbusinesstobeleviedonbecausemore
entrantsmeanmorerevenuesforthegovernment.Thetaxescollectedwouldthenbeusedforthe
developmentofPhilippinesespeciallyinareasneedingmoreattention.

AccesstoServices

Alongwiththestandardoflivingincreases inherentinraisinglocalemployment,the
presenceofthisbusinesscouldraisethestandardoflivingfurtherbyprovidingawiderrangeof
servicesandamenities.Addingacarwashandcafetoanarea,forexample,canaddacarwash
andcafeoptiontolocalresidentswhilebringinginmoneyfromoutlyingcommunities.

KeepingMoneyintheArea

Anotheradvantageoflocalbusinessesisthatmoreofthemoneyspentatalocalbusiness
staysinthelocalarea.

A study done in 2003 in Austin, Texas, by the American Independence Business

Alliancefoundthatoutofevery$100spentatanationwidechainstore;onlyabout$13stayedin
thelocaleconomy.However,outofevery$100spentatalocallyownedandoperatedbusiness,
about$45stayedinthelocaleconomy.

Thisprovidesahugeboosttootherlocalbusinesses,workersandfamiliesinthelocal
area.

EconomicGrowth

SavepointCarwashasasmallbusinesscancontributetolocaleconomiesbybringing
growth and innovation to the community in which the business is established. It also helps
stimulateeconomicgrowthbyprovidingemploymentopportunitiestopeoplewhomaynotbe
employablebylargercorporations.

Small businesses tend to attract talent who invent new products or implement new
solutionsforexistingideas.

Larger businesses also often benefit from small businesses within the same local
community, as many large corporations depend on small businesses for the completion of
variousbusinessfunctionsthroughoutsourcing.