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Chapter 1

INTRODUCTION

Fabrics are essential to our daily lives. Their worth cannot be

underestimated as we use fabrics in most of our clothes, blanket, bed sheet, pillow

case, curtains, rugs, and more. One of the basic necessities of people is clothing. It

protects the body from varying temperatures and injuries. It also covers the body

not to expose delicate parts. For proper hygiene purposes, people tend to change

clothes more often. The Filipinos are keen when it comes to cleanliness and

proper hygiene. Washing of laundry is one of the oldest household chores, maybe

one of the most difficult. Traditionally, most housewives do the chores at home

including washing of laundry. But, because of workloads and changing lifestyles,

washing of clothes becomes a problem that resort to the utilization of laundry

services.

Laundry service is an easy and convenient business to put up. It may or may

not require high capital because it can be home-based or commercialized which can

target households, malls, inns, companies, dormitories, schools, and even

subdivisions where the people are condensed. With the help of technological

advancement, starting a laundry business is quite possible and uncomplicated.

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BUSINESS NAME

A catchy business name is one of the essential requisites in putting up a

business. The business name must be appealing and catchy in order to attract

customers’ attention and curiosities. Thus, the proposed name of this business is

“Wash Yours Laundry.”

Figure 1 Business Logo

BUSINESS OFFERINGS

The business concept of Wash Yours Laundry is typically heterogeneous.

It will offer quality services such as washing, drying, pressing and folding clients’

garments. It will also provide delivery for customers’ convenience. Furthermore,

it will also offer free WIFI for them to enjoy surfing the net while waiting for

their laundries be done. Wash Yours will also have a self-service area wherein

customers can use and operate the equipment to wash their own laundry for a

lower cost.

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UNIQUE QUALITY

Unlike other laundry businesses, Wash Yours is more of a customer and

service-oriented type. It values the time and money the customers spend for the

services it provides. It exhibits a Win-Win situation wherein both parties are

benefitted from one another. It is distinct because it provides quality services like

delivery, WIFI, and a self-service area.

Quality Services –Wash Yours Laundry will provide several services such as

washing, drying and folding clients’ garments. It will use quality and durable

equipment that can last longer to cater to customers’ needs. It will also use

affordable and quality hypoallergenic detergent powder and fabric conditioner to

make sure that the output is of good quality and safe to all types of clients.

Furthermore, Wash Yours will provide good customer service through attentive,

competent and honest staffs. Honesty is somewhat that the client will

momentously value. Customers may not always be right but it is easier to keep

them coming back than having new ones come to your store, thus honesty and

loyalty to customers are extremely important in a business like a laundry shop

Delivery- Wash Yours will offer delivery for customers’ convenience. With this,

clients can enjoy and use their time for some activities instead of waiting in the

shop for their laundry to be done.

Free WIFI -Internet can no longer be considered as a luxury because it is now

part of individuals’ daily lives considering that many transactions and businesses

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are now being managed online. With this type of offering, clients will enjoy

browsing, posting on social media and continuing their businesses on line while

waiting for their laundry to be done.

Self-Service Area – Wash Yours will have an area for the clients who wish to rent

or pay for the equipment only. This is an area wherein customers can do their own

laundry. This type of service solves the usual complaints about traditional laundry

services.

BUSINESS STRUCTURE

Wash Yours Laundry is a sole proprietorship form of business to be

established and managed by Grace S. Hutalla, a sales specialist in SCPA

Corporation. Her starting capital is Php600, 000.00, to be loaned from the company

she is working with.

The sole proprietorship is the most common form of business because of

its simplicity, ease of operation, and minimal cost. To be ready for a business, a

sole proprietor only needs to register his or her name and secure local licenses.

However, a distinct disadvantage is that the owner of a sole proprietorship

remains personally accountable for all the business's liabilities. So, if a sole

proprietor company gets into financial difficulty, creditors can bring lawsuits

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against the business owner. If such suits are successful, the owner will have to

remunerate the company liabilities with his or her own money.

VISION

To be known and become the preferred laundry service business in Quezon

province by 2025

MISSION

To establish a momentous relationship with customers and be responsive to their

needs to the best of our ability by providing them with a quality environment and

fast service

Figure 2 Business Structure

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LOCATION

The proposed business location is located at Isabang, Tayabas Quezon. This

location composes of subdivisions like Leveriza Heights, Sunridge Ville,

Welmanville, and Camella Homes; establishments like Max’s Restaurant and St.

Jude Hotel. It is also beside the construction site of Isabang Town Center.

Figure 3 Business Location

BUSINESS FEASIBILITY STUDY OBJECTIVES

It is the company’s goal to offer customers a valuable long-term laundry

service and become their longstanding partner when it comes to laundry errand.

Following are the objectives.

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Objectives:

 To provide a comfortable and pleasant atmosphere to clients by providing

fast and quality service, free WIFI and clean environment.

 To avoid allergies and infections to customers by providing bio-based

detergent powder and fabric softener in their laundries.

 To be responsive to all customers’ needs to the highest standards.

 To improve the image of the business.

 To expand the business and increase the numbers of washing machines in

the next two years.

 To penetrate the market further and compete more effectively &

efficiently.

 To position the business as a one-stop convenient and reliable laundry

business in Quezon.

 To grow the business so as to cater to other regions.

 To further diversify the business by offering additional related services.

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Chapter 2
INDUSTRY

Many people may think that a laundry business is about clothes, but it’s

not. Laundry business is about people. It is service-type businesses, which like

others, customers must be treated well in order for them to return and patronize

your offerings.

If you are friendly and know how to handle customers well, your

customers will patronize your business. By talking to them, you will be able to

know their thoughts and learn their laundry needs and preferences. All this will

help you improve the quality of your service and you will attract more customers.

Laundry cleaning service in the Philippines can be illustrated as a business firm

that accepts clothes and other household items that need to undergo cleaning

services. These cleaning services are washing, drying, pressing, dry cleaning and

folding. Customers assume and expect laundry shops to perform the full laundry

operation and have their clothes ready for pick-up or delivery.

As stated in the feasibility study of Cabelles, et al. (2009), laundry

industry is a strong and energetic business. This kind of industry is really seen on

the go for the target audience because of convenience and practicability.

According to Manahan (2016), laundry cleaning service is a rising

business in the Philippines based on recent studies and researchers. There are a

constant growth and progress in the laundry cleaning service industry in line with

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urban economic development. As a population continuously grows in urban areas

along with the increase of husbands and wives earners, the requirement for

laundry service is high in connection to these economic indicators. As Philippine

urban areas are constantly getting more condensed by population, there will be a

larger demand for quality laundry services.

As the demand rises, the competition also escalates. Competition shifts the

technology innovation in this industry at a swifter rate producing new

developments resulting in growth and profitability. Technological development

and evolutions are critical aspects of modernization. Customers continuously need

services delivered with satisfying outcomes and convenient facilities.

Modernization of the industry would benefit communities thru the businesses’

effectiveness.

KEY DRIVERS & BARRIERS

Key Drivers

 With strong supplier partnership

 New marketing potential

 Improved quality service and amenities

 Good location

Key Barriers

 Requires bigger investments to start the business.

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 Environmental/ social impact often difficult to measure directly

 Requires “mind shift” from consumers and increased engagement

 Compliance with regulations

TARGET MARKET

Figure 4 Locations of Target Markets

Target markets are households from Leveriza Heights, Welmanville, Sun

Ridge Ville, Camella Homes and households outside these subdivisions. Also,

establishments like Max’s Restaurant and St. Jude Hotel and Resort will add to

target markets. These groups of markets will describe the buying behaviors

including expectations and activities of laundry business consumers.

SCOT ANALYSIS

Strength

 Modern equipment and technology

 With delivery service

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 Affordable and reliable price

 Quick service

 Well-trained and attentive service staff

 Convenient and accessible location

 With free WIFI

 With self-service area

Challenges

 New in the business industry that’s why the brand name is not yet

established

 There are affordable washing machines with spinners in the market.

Opportunities

 Growing city population

 New establishments in the same area like hospital and mall will create

future customers

 Increasing of disposable income and changing lifestyles.

Threat

 Seasonal market demand

 Competition to established and bigger businesses

 Threat from new entrants

 Changing economy & inflation rate.

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Chapter 3
MARKETING ASPECT

MARKET DESCRIPTION

Marketing is a fundamental element of a business success. It encompasses

production and distribution of products and services. The market is vital to this

study to discern if the proposed endeavor is feasible or not.

To be effective, firm that deals with consumers on a daily basis must not

only be customer-driven but customer-obsessed. This is because customers are the

lifeblood of the company. Without them, we would not possibly exist. The target

market should be given primacy since income will generate from them. An

evident apprehension of demand and supply analysis, systematized and accurate

interpretation of data and recognition of the target market are the essentials of any

feasibility study.

Nowadays limited space has become a huge problem when it comes to

washing & drying laundries. Most households likewise business establishments do

not have enough space to sundry their laundries.

Table 1 Number of Target Markets/ Households

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Note: The number of households is based on actual data which is gathered by the

researchers while doing the survey and interview.

To compute for the sample size to be used for the survey, the researchers

used the Slovin’s formula. The researchers computed the sample size of 96

respondents with the maximum 10% error of tolerance and 90% confidence

level. Slovin’s formula is a random sampling technique formula to estimate

sampling size. A confidence level tells how reliable a measure is. Common

standards used by researchers are 90%, 95% and 99%. A margin of error tells you

how much error surrounds a measure. It’s a percentage that describes how much

the opinion of the sample you survey is likely to deviate from the total population.

Computation of sample size through Slovin’s formula;

n = N / (1 + Ne^2)

Where: n = Number of samples

N = Total population

e = Margin of error

n= 2163
1 + [(2163) (0.10) (0.10)]

n= 96

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Figure 5 Locations of Direct Competitors

This is to identify the three competitors of Wash Yours Laundry along the Old

Manila Road namely, Snow White, Doña Labandera and Red Tub Laundry. From

the figure, it is noticeable that the farthermost distance between Wash Yours

Laundry and Snow White Laundry Shop is 4.2 kilometers and will take 8 minutes

travel using public or service vehicle as a mode of transportation.

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Table 2 Services of Direct Competitors

The table shows that the three competitors have different price points when

it comes to the services they offer. Also, they are using different varieties of

detergent powder which also make them distinct from one another. When it comes

to pick-up date, all of them have allocated 48 hours before a customer can pick-up

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their done laundries. Aside from this, all of them have no WIFI and do not offer

delivery service.

Table 3 List of Other Indirect Competitors

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From the data, there are twenty-one laundry shops operating in Lucena

City. Most of them are situated in the city proper due to saturated population and

lots of establishments.

Figure 6 Distributions of Respondents

From the figure above, Leveriza Subdivision has the largest distribution of

respondents which is 61 or 63.55%, followed by Camella with 19 or 19.79%

distribution, Sunridge with 7 or 7.29%, Welmanville with 6 or 6.25%, and

Isabang with 3 or 3.12% of the total distribution of households. This shows that

most of the customers of Wash Yours Laundry will come from Leveriza Heights

Subdivision.

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Figure 7 Numbers of Members per Household

Figure 7 identifies the number of members per household of the market

area. There are 44 or 45.84% of the total distribution having 3-4 family members

followed by 31 or 92.29% having 5-6 family members, 14 or 14.58% having 1-2

family members and lastly 7 or 7.29% having 7 and above members of the

family.

The data merely shows that most of the households have a small number

of family members, thus, Wash Yours Laundry will be servicing most of the

families having 3-4members only.

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Figure 8 Type of Employment

Figure 8 identifies whether the family heads are employed or not. From

the data gathered, 25 or 26.04% of the total surveyed households are currently

employed in public sector or government agencies and another 25 or 26.04% are

currently employed in private sector. Meanwhile, 46 or 47.92% of the total

distribution did not identify their employer.

Having a total of 50 or 52.08% employed head of households means that

most of the family heads have little time to do their families’ laundry. This

indicates also that most of the families can afford to pay for laundry service.

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Figure 9 Estimated Household Income

From the gathered data, 27 or 28.12 % of the total distribution of

households are earning PhP11, 000- 20,000, followed by 21 or 21.88% who are

earning PhP21, 000-30,000 and PhP31, 000-50,000. There are also 13 or 13.54%

households who are earning Php10, 000 below on a monthly basis, followed by 8

or 8.33% who did not declare their monthly income. And lastly, there are 6 or

6.25% households who are earning Php51, 000 and above.

The data merely states that majorities of the households are earning good

which makes them capable to pay for laundry service.

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Figure 10 Years of Residency

The data illustrates the years of residency of the target markets which are

the households. 45 or 46.88% of the total households are already residing in their

home for 5 years and above, followed by 25 or 26% households who are residing

in their homes for 1-3 years already. Meanwhile, 17 or 17.72% households are

already living 4-5 years in their home, followed by 9 or 9.40% households who

are living in their homes for less than 1 year.

The figure also indicates that Wash Yours Laundry will have long-time

partners or customers because majorities of the households are already residing in

their homes for a long time now.

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Figure 11 Does a Household Own a Washing Machine

According to the data, 92 or 95.83% households already have washing

machines while 4 or 4.17% said that they have no washing machine. This

indicates that not 100% of the households will avail laundry service because

majorities of the households have already invested in washing machines.

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Figure 12 How Is Laundry Done?

According to 55.74% households, they do their own laundry while 30.33%

said that somebody else does their laundry. There are also 13.11% said that they

have their laundry done thru laundry shop and 0.82% did not answer.

The data shows that although majorities of the households have their own

washing machine, not all of them are using the machine. Some still let somebody

else do the laundry and there are some who avail the services of a laundry shop.

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Figure 13 How Frequent is Laundry Done?

Figure 13 shows that 31 or 32.28% households are doing their laundries

3x a week, followed by 27 or 28.13% households who are doing their laundries

daily. From the data also, 23 or 23.96% households are doing their laundries 2x a

week and 15 or 15.63% households are doing their laundries for only once a

week.

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Figure 14 Kilos of Laundry Done

This figure shows the estimated number of kilos of laundries being done

by the households. 22 or 22.92% households are washing estimated 6-10 kilos, 23

or 23.96% are washing 3-5 kilos, and 3 or 3.12% are washing 10kilos above.

Meanwhile,48 or 50% households have no answer to this question.

Although 48 or 50% of the respondents did not answer how many kilos of

their laundries are being done or washed, still there is a big expectation for a

higher service income because large part also of the target households are having

6-10 kilos done.

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Figure 15 Are Households in Favor of Establishing Wash Yours Laundry?

According to the gathered data, 93 or 96.88% households answered yes

while only 3 or 3.12% answered no. This shows that households are in favor of

the having a laundry shop in their vicinity. This is an indication of positive

response and future sales.

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Figure 16 Types of Service Willing to Avail

Figure 16 demonstrates the services which the respondents are willing to

avail. 25.64% wished to avail Pick-up/ Delivery Service, 24.62% wished to avail

Wash-Dry-Fold service, 20.10% wished to avail Wash-Dry-Press-Fold service,

14.07% wished to avail Self-Service Laundry, 14.07% wished to avail the Wash-

Dry-Press service while 1.50% did not mention which type of service they are

willing to avail.

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Figure 17 Preferred Price per Kilo for Wash-Dry-Fold

Figure 17 shows the price preference of respondents for Wash-Dry-Fold

service. Majorities of the households or 50 or 51.2.08% selected Php24/ kilo for a

minimum of 6kilos, while 43 or 44.79% selected PhP25/ kilo for a minimum of 3

kilos and 3 or 3.13% did not select from the two price points.

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Figure 18 Preferred Price per Kilo for Wash-Dry-Press

The gathered data shows the preferred price of respondents for Wash-Dry-

Press service. There were 49 or 51.04% households who selected the price of

Php65/ kilo for a minimum of 3 kilos while there were 44 or 45.83% who selected

the price of Php64, kilo for a minimum of 6 kilos. And there are 3 or 3.13% who

did not select any of the price points.

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Figure 19 Preferred Price per Kilo for Wash-Dry-Press-Fold

Figure 19 shows the preferred price of respondents for Wash-Dry-Press-

Fold service. From the data, majorities of 53 or 55.21% selected the price of

Php74/ kilo for a minimum of 6 kilos of laundry while 40 or 41.66% selected the

price of Php75/ kilo for a minimum of 3 kilos of laundry. Only 3 or 3.13% did not

select their answers.

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Figure 20 Preferred Price per Kilo for Self-Service Laundry

The data shows that 61 or 63.54% selected the price of Php90 for 4 to 5

kilos of laundry while 32 or 33.33% selected the price of Php100 for 6 to 8.5 kilos

of laundry. There are also 3 or 3.13% households who did not select their price

preference.

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Figure 21 Preferred Price per Kilo for Pick-up and Delivery

This figure shows the households’ preferred price for Pick-up and

Delivery service. Majorities of 69 or 71.87% selected the price of Php16 for a

minimum of 3 kilos within 1 kilometer plus additional Php5.00 for every

additional 1 kilometer, while 24 or 25% selected the price of Php18 for a

minimum of 3 kilos within 1 kilometer plus additional Php3.00 for every

additional 1 kilometer. There are also 2 or 3.13% who did not select their price

preference.

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Table 4 Survey for Establishments

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The data above shows the two target establishments of this study, St. Jude

Hotel and Max’s Restaurant. According to the survey, St. Jude Hotel is already

operating 1 year and above while Max’s is already operating 11 years and above.

When it comes to own laundry area, St. Jude has its own that’s why it does its

own 30-40 kilos laundries but sometimes avail services from a laundry shop while

Max’s has none that’s why Max’s 20-30 kilos laundries are being done by a

laundry shop. . When it comes to their laundries, both of the establishments’

laundries are being done three times a week. St Jude Hotel’s laundries are usually

composed of tablecloths, curtains, blankets, table napkins, bed sheets & pillow

cases while the other establishment’s laundries are composed of tablecloths,

curtains, and table napkins only. Although they have their own service providers

which offer cheap price & free delivery, they are still in favor of having a laundry

shop near their vicinities. And according to them, they may avail wash-dry-fold

and pick-up & delivery services. When asked regarding price preferences, both of

the establishments did not give their answers.

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SERVICE DESCRIPTION

Wash Yours Laundry will be considered as the first laundry business in the

point of the area of Isabang Tayabas Quezon. Primary markets which are located at

this barangay are Leveriza Heights Subdivision, Welmanville Subdivision,

SunRidge Ville, and Camella Homes. There are also establishments like Max’s

Restaurant and St. Jude Hotel. The location is also beside the construction site of

Isabang Town Center.

This laundry business will offer both full-service and self-service laundry.

In the self-service area, the customers will do their own laundries for a fixed price

of Php90.00 per load composing of 4 to 5 kilos of laundries. Each load will take 1

hour and 15 minutes for both washing and drying. While for the customers who

want to avail the full- service laundry, they have to pay the corresponding amount

per kilo of the service they wish to avail. The price of Wash-Dry-Fold service is

P24 per kilo for a minimum of 6 kilos. When it comes to Wash-Dry-Press, the

price per kilo is P64 for a minimum of 6 kilos also. For Wash-Dry-Press-Fold, the

price per kilo is P74 for a minimum of 6 kilos also. On top of the laundry service,

Wash Yours will also offer pick-up and delivery with an additional charge of P16.

For the customers who wish to stay in the shop, they could enjoy watching

television while browsing the internet with our free WIFI.

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MARKET PROGRAMS

This refers to raising customer awareness of the services and creating services

loyalty.

 Leaflets and flyers – will be distributed before & upon the grand opening

of the shop so that the target markets will be informed of the new

business in their vicinity. The leaflets and flyers will be personally done

by the owner of the shop which has a budgeted amount of P 6,000.00

Leaflets will include the following information:

- Services offered

- Price list

- Company address and contact number

- Business hours

Figure 22 Flyers/ Leaflet

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 Tarpaulin – to be placed in front of the shop. For 8x8, the cost would be

P 896.00. It will include the following information:

- Services offered

- Business name, address and contact number

- Business logo

- Business hours

Figure 23 Tarpaulin

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 Wash Yours Laundry Facebook advertisement

Figure 24 Facebook Advertisement

 Wash Yours web page

Figure 25 Web Page

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 Pick-Up and Delivery service

There will be a charge of Php16 for a minimum of 3 kilos within 1

kilometer plus an additional of Php5.00 for every additional 1 kilometer.

The delivery man will have to bring with him the weighing scale for him

to weigh the laundries that he will pick-up in the areas.

Table 5 Distribution of Market

The distribution of market is computed by getting the fifty percent of the

total actual number of markets. Half of the total number of households was

distributed to Wash Yours since there are competitors and most of the respondents

said that they own washing machines.

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Table 6 Demand Analysis

Table 6 identifies the number of projected demand in kilos for one week.

From the data, there are 6, 450 kilos of laundry which Wash Yours needs to cater

for one week.

Table 7 Supply Analysis

The table shows the supply that Wash Yours Laundry can provide to the

market. The table states that Wash Yours can supply 2, 106 kilos of laundry in

one week.

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Table 8 Demand and Supply Gap Analysis

Note:

1. In Demand Analysis, the projected demand is the expected kilo of clothes that

Wash Yours needs to cater on a weekly basis which is 6, 450 kilos.

2. In Supply analysis, the loading capacity stated is the maximum capacity of the

machines Wash Yours can perform. The number of kilos of laundry Wash Yours

can perform on a weekly basis is 2, 106.

3. In Demand and Supply Gap analysis, there will be a gap of 4, 344 (6, 450 –

2,106) kilos that will never be provided. Because the demand for our services is

higher than what we can provide, there is great chance to last in the business.

Table 9 Projected Sales

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MANAGEMENT & PERSONAL ASPECT

MANAGEMENT AND PERSONAL DESCRIPTION

Form of Ownership

1. The business will be a sole proprietorship.

Because of simplicity, ease of setup, and nominal cost, the sole

proprietorship becomes a prevalent type of business. The owner needs only to

register his or her name and secure local licenses, and the business is ready for

operation. A clear inconvenience, however, is that the owner of a sole

proprietorship continues to be personally liable for all the business's debts. So, if

ever the business suffers an imminent loss and liabilities, creditors or lenders can

bring lawsuits against the business owner.

Table 10 Gantt Chart

List ofctivities Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan
1 Research and development
2 Putting up equity
3 Site selection
4 Improvement of location and shop
5 Registration
6 Orders and receipts of equipments
7 Intallation of machineries and equipments
8 Services making & testing
9 Hiring & Training of staffs
10 Start of Operation of the business

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Gantt Chart of Business Activity

a. Research and development

 Includes generating and gathering of ideas for possible business.

 Conducting surveys and interviews and also includes revision of

documents.

Time allotted: January – December

b. Putting-up equity

 Deciding on sources of funds or capital

 Processing of loan for capital

 Time allotted: February- April

c. Site selection

 Searching for a possible location

Time allotted: March - April

d. Improvement of location and shop

 Renovation of place

Time allotted: May – July

e. Registration

 Securing of all the required and necessary licenses and permits for

the business

Time allotted: May – July

f. Orders and receipts of equipment

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 Procurement of all the necessary equipment and supplies for the

operation

Time allotted: July – September

g. Installation of machinery and equipment

 Installation of all machinery and equipment in their respective

locations

 Testing of machines and equipment

Time allotted: August – September

h. Services making and testing

 Includes the testing of all services to be offered

Time allotted: October – November

i. Hiring and training of staffs

 Includes scouting, hiring, orientation and training of newly

selected employees

Time allotted: November – December

j. Start of the operation of the business

Time allotted: January

2. Registration of the business

A business owner must register the business’s name and must obtain

relevant licenses to become a legal sole proprietor business.

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Government agencies for registration:

 Department of Trade and Industry

 Local Government Units where your business is located:

a. Barangay

b. Mayor’s Office

 Bureau of Internal Revenue

 Required Registration of Employee Benefits

Business owners are required to provide their employees the required benefits

for them to be protected and secured. Owners must register to selected

government agencies for the employees’ benefits.

Required Registration to the ff:

 SSS

 PhilHealth

 Pag-ibig – HDMF

2.1 Registration with DTI

a. Must register the business name to DTI

 Make sure to have three business names because this is a

requirement.

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 DTI will check if there are businesses already carrying your chosen

names.

 If your business name is available, fill up Business Name

Application Form.

b. Present your accomplished and completely filled-out BN application

form to DTI’s offices/branch.

c. Wait for your DTI Certificate of Registration

2.2 Registration with Barangay

a. Proceed to the barangay hall where your business is to be put up to

secure and fill-up application form.

b. Present your completely filled-out application form together with the

following:

 Certificate of Business Registration from DTI

 Two valid IDs

 Proof of Address such as Contract of Lease or MERALCO bill

c. Secure Barangay Certificate of Business Registration

2.3 Registration with municipality

a. Proceed to the municipal office where your business is located to secure

and fill-up application form

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b. Present your completely filled-out application form together with the

following:

 Certificate of Business Registration from DTI

 Barangay Clearance Certificate

 Two valid IDs

 Proof of Address such as Contract of Lease or MERALCO bill

2.4 Registration with the Bureau of Internal Revenue (BIR)

a. Proceed to Regional District Office where your business is located

b. Accomplish the BIR Form 1901- Application for Registration (for Sole

Proprietor)

c. Present your completely filled-out registration form together with the

following requirements:

 Certificate of Business Registration from DTI

 Barangay Clearance Certificate

 Mayor’s Business Permit

 Proof of Address such as Contract of Lease

 Valid ID

d. Pay the registration form (BIR form 0605)

e. Register your book of accounts and receipts/invoices

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f. Claim your Certificate of Registration (BIR Form 2303)

Table 11 Permits and Licenses

Registration
Business Permit & Licenses Amount
Registration with DTI 500.00
Registration with Baranggay 250.00
Business Permit with Mayor's office 2,951.00
Registration in BIR (10%*monthly rental) 500.00
Documenatry stamp 15.00
OR 1,500.00
Total 5,716.00

Service Operations

Wash Yours laundry is on business from Monday to Saturday from 8am to

8pm. This is to give the clients further time to avail the laundry’s services and for

some to be able to get their finished clothes even after their works. The cut-off for

delivery is until 6pm only. Every Sunday will be the official day-off of all staffs.

This is to give them time to relax & time with God.

Table 12 Staff Shifting

Shifting
Employees
From To
Manager 11am 8pm
Service Staff/ Fronliner 8am 5pm
Washer 1 8am 5pm
Washer 2 11am 8pm
Laundry Finisher 1 8am 5pm
Laundry Finisher 2 11am 8pm
Delivery man 10am 7pm

48
Customer’s Account

All the customers’ information will be recorded in the logbook likewise

will be encoded in Microsoft Access. It is necessary to have customer’s profile or

information for communication and marketing purposes. Moreover, encoded data

is useful in tracking down important data whenever a problem arises. Microsoft

Access will also be used for transactions and sales print-out generation.

Manpower requirements

1. Physical Requirements:

 Age must be 18-45 years old

 Physically & mentally fit

 Without allergies specifically skin allergies

2. Skills, Interests, and Qualities

 At least High School graduate

 With practical skills to operate washing machines and dryer

 With the ability to count and measure accurately

 With good communication skill

 Willing to work for an extended hour

 With the ability to work under pressure

 Flexible and trustworthy

 For the driver; must have a driver’s license

49
Work Descriptions

Manager/ Proprietor

 Has the overall responsibility for business operations

 Responsible for expanding the market and finding new opportunities to

increase company’s profit

 Responsible for ensuring that the company’s income is consistently rising

 Responsible for securing all the necessary permits and licenses

 Responsible for processing payroll

 Responsible for evaluating staffs’ performance

 Responsible for cashiering

Service staff/ Front-Liner

 Ensures that the services given to the customers are of good quality and

satisfying

 Ensures that all customers’ needs are addressed properly and correctly

 In-charged in the receiving and releasing of laundries

 In-charged in weighing, tagging, and computation of the amount due

 In-charged in recording entries and safekeeping of business materials

Washers

 In-charged with the laundry activities.

 Ensure that all clothes or laundries are properly taken cared of with the

diligence of a good father.

50
 Make sure that the equipment is cleaned and taken cared of properly

Laundry Finishers

 In-charged in pressing, folding, hanging and packing of laundries

 In-charged in sorting and tagging of laundries for dispatch

 Assist customers who will use self-service washing machine.

Delivery man

 Makes sure that all the laundries are picked-up and delivered on time

 Takes good care of the service vehicle

MANAGEMENT & PERSONAL PRACTICES

1. Hiring Process

The applicants must submit their resumes for the positions that they are

applying for. Then interview will follow and whoever will pass will be required to

submit requirements like High School report card, Barangay Clearance, Police

Clearance, Mayor’s permit, medical examination results, Pag-ibig, Philhealth, and

SSS numbers. This is to ensure that all screened applicants are fit to work and

have no criminal records.

2. Safe Working Environment

A safe working environment is important not only to employees but also

to customers. With this, Wash Yours Laundry keeps its shop hazard-free at all

times. It is important that all cleaning materials and agents are kept separate from

51
other material that’s why separate cabinets are provided for them. Those cabinets

are properly labeled to avoid confusion and mistakes. Aside from this MSDS or

Materials Safety Data Sheets are placed in the same cabinet with the cleaning

agents to be prepared for untoward incidents.

FIFO and CAYGO are strictly implemented in the business. The staffs

always make sure to observe FIFO (First-in, First-out) when using detergents and

softeners. Clean-as-you-go is also practiced to ensure that the shop is clean and

safe before closing.

3. Training

Training is essential to the success of a business. This is why Wash Yours

Laundry make it appoint to put newly-hired employees in training for them to

know their job well and perform well. Aside from this, the company will request

demo and orientation from the providers of equipment and cleaning agents. This

is to give the employees the knowledge they will need when putting on the actual

scenarios. Wash Yours Laundry already requested seminars from Sanitary Care

products regarding the proper handling and usage of their products. They will

provide the shop training materials and MSDS. Whenever they will launch new

products they are willing to conduct another seminar and training. Likewise, the

sales agent of the washing machines is also amicable and willing to train the staffs

on equipment handling and cleaning.

52
5 Motivating & Rewarding Employees

5.1 The company will provide a monthly incentive for the outstanding model

employee in cash or in kind. This is to motivate all employees to love their

jobs and perform well. Motivation thru incentive is a good factor to keep a

loyal, trustworthy, industrious and valuable employee.

5.2 Every birthday celebrant will have a chance to take their Birthday Leave

with pay. This is to let the employees feel special on their birthdays and let

them celebrate this very special occasion with their loved ones.

5.3 Christmas party will be done yearly to relieve the employees from tiring

work. This is the time for blessings so 13th month should be granted.

5.4 Every Saturday and Sunday, all employees who are on duty are allowed to

wear freestyles or civilian clothes.

Table 13 Staff Payroll

PAYROLL SCHEDULE
DEDUCTIONS
Daily Working Monthly SSS Premium Philhealth Premium Pag-ibig Premium Total
Personnel No. Wage Days Gross Pay Deduction Net Monthly
ER EE ER EE ER EE Pay
Manager 1 577 26 15,002.00 1105 545 228 228 300.04 300.04 1073.04 13,928.96
Service Staff/Front Liner 1 310 26 8,060.00 589.3 290.7 137.5 137.5 161.2 161.2 589.4 7,470.60
Washer 2 310 26 16,120.00 589.3 581.4 275 275 322.4 322.4 1178.8 14,941.20
Laundry Finisher 2 310 26 16,120.00 589.3 581.4 275 275 322.4 322.4 1178.8 14,941.20
Delivery Man 1 310 26 8,060.00 589.3 290.7 137.5 137.5 161.2 161.2 589.4 7,470.60
Total 63,362.00 3,462.20 2,289.20 1,053.00 1,053.00 1,267.24 1,267.24 4,609.44 58,752.56
Total Per Annum 760,344.00 41,546.40 27,470.40 12,636.00 12,636.00 15,206.88 15,206.88 55,313.28 705,030.72
Employer's Contribution 69,389.28
Employee's Contribution 55,313.28

53
PRODUCTION AND OPERATION ASPECT

Service Process

Figure 26 Wash Yours Process Flow

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

1. Pick-up and receiving- the clothes are picked up and received from

customers’ house if they wish to pay for pick-up fee. For walk-in clients,

clothes are received in the receiving area.

2. Weighing – clothes are weighed in order to compute for the due amount

that the customers will pay depending on the kinds of services they prefer.

54
3. Recording – the customer’s information plus their laundry’s information

are recorded. (date, the name of the client, address, contact number, time

of receiving the laundry, number of times they acquired the service,

number of kilos of their laundry, numbers of pieces, and the type of

service that they will avail)

4. Tagging – After recording, baskets carrying the laundries to be washed

are the tagged according to the control number and name of the customers

in the logbook. This is to easily identify first-in and first-outs. This will

also help to minimize to avoid losses.

5. Sorting - After tagging, the clothes are sorted according to colors and

types of fabrics.

6. Treatment of clothes – treatment of clothes is done for stained and

heavily soiled clothes or fabrics.

7. Washing - The clothes are washed in the washing machine using

detergent washing powder and fabric softener.

8. Drying – After washing, the clothes are dried.

9. Pressing – If the customers availed of pressing service, then the clothes

are to be pressed after drying.

10. Folding – Once pressed, the clothes are properly folded. If the customers

wished their clothes not to be folded, then their clothes are hanged using

hangers.

55
11. Sorting – after folding or hanging, clothes are then sorted out based on the

recorded customers’ data.

12. Packing – Once sorted out, the clothes are properly placed in the plastic

wrap and then re-tagged so that they can be easily identified. If the clothes are

not folded, hanging clothes are also covered with plastic and tagged.

13. Delivery - If the customer availed of the delivery service, clothes will be

delivered to his/her house. The payment will be cash on pick-up or cash on

delivery. The delivery dispatched time will be recorded in the record book

which was filled-out during recording.

14. Releasing – for walk-in clients, clothes will be released by the cashier and

time of release will be recorded in the record book. (Note: clothes will be

released after 24 hours the time the laundries arrived or picked-up.)

Figure 27 Process Flow for Self-Service Laundry

56
1. Checking-in- this is where customers approach the service staff to avail

automatic coin-operated machine

2. Weighing- Clothes are weighed before proceeding to laundry. For one

hour laundry worth the required minimum load is 5kilos for Php50.00 or

maximum of 7 kilos load for Php70.00

3. Recording – after weighing all the information including customer’s

information are recorded.

4. Self-service washing – the customer may now start his/her laundry.

5. Checking-out – After using the coin-operated washing machine, the

customer will inform the service staff that he/she is checking-out already

Wash Dry Fold Process

Figure 28 Required time for Wash-Dry-Fold

1. 30 minutes washing time with

2. 45 minutes drying time

3. 30 minutes for folding

57
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.

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

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 reverse side.

4. Lay the stained part of the garment on the cotton cloth.

5. Wear protective equipment - Gloves protect your hands from chemicals.

6. Apply the stain remover and gently scrub the area. Apply more stain remover

as necessary for stubborn stains; soak the garments for 5-15 minutes.

7. Check if the stain has been removed.

58
8. Place the garment in a basket for laundry.

Pick-up and Delivery

1. Customer will call the laundry landline or mobile number for pick-up of items.

2. The delivery man will go to the customer’s house and weigh-in the laundry,

record all the necessary details in the logbook and bring the laundry to the shop.

3. After the laundry is done, the delivery man will then deliver the said laundry to

the owner and ask for payment. The payment will then be endorsed to the cashier

in-charged in the shop.

Filtration Process – Environmental Control

Aparece, et al. (2014) identified in their study a very basic procedure on

how to filter the grey water from laundry shop before disposing of the said water

to canal or sewer. This is a suitable process to avoid harmful effects of grey water

to the environment and sewer.

59
Figure 29 Filtration Process

Step 1:
The higher hole was made on the side of the
washing waste pipe, and the lower hole is for
the pipe to the drainage.

Step 2:
Vermin proof lid on the grey water filter box.
It comes with a secure lid, so that will also
deter vermin.

Step 3:
Larger filter stones layer the base of the
black box.

Step 4:
Smaller filter stones were laid on top of the
larger stone.

Step 5:
A couple of layers of shade cloth to hold the
sand.

Step 6:
A layer of clean sand.

Step 7:
Test run

60
PROJECT SITE

Figure 30 Image of actual shop to be rented

Figure 31 Projected Floor Plan

Figure 32 Projected Store Plan

61
MATERALS

Table 14 Materials for Laundry Shop

62
Table 15 Raw Materials

Table 16 Plastics for Laundry Shop

63
MACHINES AND EQUIPMENTS

Table 17 Machines and Equipment

2 unit s of 11kg Whirlpool Top Load


Washer
2 units of Samsung Front Load Wash &
Specs: 3.6 cu. Ft. Stainelss Steel Wash
Dry Machine
Basket, Wash System w/ Auto Load
Dimension: 675x890x 651mm
Sensing, Unique Smart Agitator, 12
Weight: 72kg
Automatic Cycles, 800RpM Max Spin
Capacity: 8.5kg wash and 6kg Dry
Speed, 4 Temp. Settings, With Extra
PhP 93, 390.00 @ 46, 695.00 each
Rinse Option
PhP93, 996.00@46, 998 each

1 unit of Whirlpool AWD70A Front


Load Dryer
Water Tank
Capacity: 7kg
Storage in case there will be water
Dimension: H830xW600xD560mm
disruption.
With Sensor Drying Technology, Wall
Php 10,000.00
mounted, stackable or floor mounted
PhP 28, 899.00

1 unit of Kolin KSG-100B1G Split-type


aircon
Dimension: 790x265x170(mm) 1 unit of Second hand tricycle for
Weight: 9kg delivery
Cooling:9497kj/h PhP 50, 000.00
power consumption: 900w
PhP 19, 100.00

2 units of 40g self-computing


1 unit of DeVant 32in. LED TV
weighing scale
Php 19, 995.00
PhP 2, 198.00 @1, 099.00 each

1 set of desk top ASUS PC B202


Processor model: Atom N270 Processor
speed: 1.6GHz
1 pc. of Steam Iron Ram:1GB
Php 8, 925.00 Memory Type: DDR2
Storage type: HDD
HDD:80GB
PhP 16, 990.00

1 pc. of Calculator 2 pcs. of Flat Iron


Php 50.00 Php 900 @ Php450 each

3 units of benches
1pc. Of Ironing Board
Dimension: L36"xW20.5"xH16"
Php650.00
Php4, 499.25 @ 1, 499.75 each

1 pc. Folding Table


Dimension: 6ftx1.83M
Php2, 499.75

64
TOTAL COST

Table 18 Total Cost for Full-Service Laundry

COSTING FOR FULL-SERVICE LAUNDRY

Php 24.00/ kilo Php 64.00/ kilo Php 74.00/ kilo


FOR WASHING MACHINE PROCESS Wash-dry-fold Wash-dry-press Wash-dry-press-fold
Direct Material (6kilos) (6kilos) (6kilos)
Laundry detergent 7g/kilo 7.98 7.98 7.98
Fabric Softener 1ml/kilo 1.92 1.92 1.92
Stain remover 2ml/kilo 14.64 14.64 14.64
Water (0.1 cubic meter/load) 1.8 1.8 1.8
Total Direct Material Cost 26.34 26.34 26.34

Direct Labor
Wash-dry-fold(310/8*1.75) 67.81
Wash-dry-press(310/8*1.75) 67.81
Wash-dry-press (310/8*2.25) 87.19
Total Direct Labor Cost 67.81 67.81 87.19

Overhead-Electricity Consumption
Machine Washing & Drying (1hr & 15mins) 3.46 3.46 3.46
Pressing (30 min.) 3.46 3.46
T otal Overhead Cost 3.46 6.92 6.92

Total Cost of Process 97.61 101.07 120.45


Total Cost per Unit 8.87 9.19 10.95

65
Table 19 Total Cost for Self-Service Laundry

COSTING FOR 5KG SELF-SERVICE LAUNDRY

FOR WASHING MACHINE PROCESS Wash & Dry


Direct Material
Laundry detergent 7g/kilo 6.65

Fabric Softener 1ml/kilo 1.6


Water (0.1 cubic meter/load) 1.18
Total Direct Material Cost 9.43

Direct Labor
Wash-dry-fold(366/8*1.75)
Wash-dry-press (366/8*2.25)
Total Direct Labor Cost 0.00

Overhead-Electricity Consumption
Machine Washing & Drying (1hr & 15mins) 3.46
Pressing (30 min.)
T otal Overhead Cost 3.46

Total Cost of Process for 8.5kg 12.89


Total Cost per Unit 1.84

66
FINANCIAL ASPECT

The very aim of this chapter is to project how much capital is needed in

putting up Wash Yours Laundry Shop. Likewise, sources of capital return on

investments and other financial considerations are stated here.

Considerations

1. The proprietor shall loan Php600, 000.00 from her company in starting up

the business. It will be payable in 3 years with an annual interest of 9%.

2. The payment which will be received for services that the laundry shop has

provided will be cash basis. There will no acceptance of check, credit

card, or any other instruments aside from cash.

3. The depreciation of equipment and leasehold improvements will be

depreciated on a straight-line basis.

4. There are no other liabilities aside from employee benefits, utilities, rent

and monthly amortization of Php600, 000.00 loans which were used to put

up the business.

5. Employee salary will be cash basis.

67
Table 20 Loan Amortization

LOAN SUMMARY
Loan Amount: Php 600, 000.00
Annual Interest Rate: 9% Start of Amortization: January 2019
Loan Period in Years: 3 Scheduled Payment: 19,079.84
Number of Payment per Year: 12 Total Interest: 86,874.23

Payment Beginning Scheduled Cumulative


Payment Date Principal Interest Ending Balance
Number Balance Payment Interest
1 January 31, 2019 600,000.00 19,079.84 14,579.84 4,500.00 585,420.16 4,500.00
2 February 28, 2019 585,420.16 19,079.84 14,689.19 4,390.65 570,730.97 8,890.65
3 March 31, 2019 570,730.97 19,079.84 14,799.36 4,280.48 555,931.61 13,171.13
4 April 30, 2019 555,931.61 19,079.84 14,910.35 4,169.49 541,021.26 17,340.62
5 May 31, 2019 541,021.26 19,079.84 15,022.18 4,057.66 525,999.08 21,398.28
6 June 30, 2019 525,999.08 19,079.84 15,134.85 3,944.99 510,864.23 25,343.27
7 July 31, 2019 510,864.24 19,079.84 15,248.36 3,831.48 495,615.88 29,174.75
8 August 31, 2019 495,615.88 19,079.84 15,362.72 3,717.12 480,253.16 32,891.87
9 September 30, 2019 480,253.16 19,079.84 15,477.94 3,601.90 464,775.22 36,493.77
10 October 31, 2019 464,775.22 19,079.84 15,594.03 3,485.81 449,181.19 39,979.58
11 November 30, 2019 449,181.19 19,079.84 15,710.98 3,368.86 433,470.21 43,348.44
12 December 31, 2019 433,470.21 19,079.84 15,828.81 3,251.03 417,641.40 46,599.47
13 January 31, 2020 417,641.40 19,079.84 15,947.53 3,132.31 401,693.87 49,731.78
14 February 28, 2020 401,693.87 19,079.84 16,067.14 3,012.70 385,626.73 52,744.48
15 March 31, 2020 385,626.73 19,079.84 16,187.64 2,892.20 369,439.09 55,636.68
16 April 30, 2020 369,439.09 19,079.84 16,309.05 2,770.79 353,130.04 58,407.47
17 May 31, 2020 353,130.05 19,079.84 16,431.36 2,648.48 336,698.69 61,055.95
18 June 30, 2020 336,698.68 19,079.84 16,554.60 2,525.24 320,144.08 63,581.19
19 July 31, 2020 320,144.08 19,079.84 16,678.76 2,401.08 303,465.32 65,982.27
20 August 31, 2020 303,465.32 19,079.84 16,803.85 2,275.99 286,661.47 68,258.26
21 September 30, 2020 286,661.47 19,079.84 16,929.88 2,149.96 269,731.59 70,408.22
22 October 31, 2020 269,731.60 19,079.84 17,056.85 2,022.99 252,674.75 72,431.21
23 November 30, 2020 252,674.74 19,079.84 17,184.78 1,895.06 235,489.96 74,326.27
24 December 31, 2020 235,489.96 19,079.84 17,313.67 1,766.17 218,176.29 76,092.44
25 January 31, 2021 218,176.30 19,079.84 17,443.52 1,636.32 200,732.78 77,728.76
26 February 28, 2021 200,732.78 19,079.84 17,574.34 1,505.50 183,158.44 79,234.26
27 March 31, 2021 183,158.44 19,079.84 17,706.15 1,373.69 165,452.29 80,607.95
28 April 30, 2021 165,452.29 19,079.84 17,838.95 1,240.89 147,613.34 81,848.84
29 May 31, 2021 147,613.34 19,079.84 17,972.74 1,107.10 129,640.60 82,955.94
30 June 30, 2021 129,640.60 19,079.84 18,107.54 972.30 111,533.06 83,928.24
31 July 31, 2021 111,533.06 19,079.84 18,243.34 836.50 93,289.72 84,764.74
32 August 31, 2021 93,289.72 19,079.84 18,380.17 699.67 74,909.55 85,464.41
33 September 30, 2021 74,909.55 19,079.84 18,518.02 561.82 56,391.53 86,026.23
34 October 13, 2021 56,391.53 19,079.84 18,656.90 422.94 37,734.63 86,449.17
35 November 30, 2021 37,734.63 19,079.84 18,796.84 283.00 18,937.79 86,732.17
36 December 31, 2021 18,937.81 18,937.81 18,795.77 142.03 - 86,874.23

68
Table 21 Pre-operating Expense

PRE-OPERATING EXPENSE
MACHINES
Samsung Front Load Wash & Dry Machine 93,390.00
Whirlpool Top Load Washer 93,996.00
Whirlpool AWD70A Front Load Dryer 28,899.00 216,285.00
EQUIPMENTS
Powergen PG5100i-R Inverter Gasoline Generator 27,100.00
Kolin Split-type Aircon 19,100.00
Water Tank 10,000.00
Self- Computing Weighing Scale 2,198.00
Devant 32inc LED TV 19,995.00
Steam Iron 8,925.00
Flat Iron 900.00
Asus Desk Top 16,990.00 105,208.00
VEHICLE
Second hand tricycle 50,000.00
LEASEHOLD IMPROVEMENTS 50,000.00
FURNITURE & FIXTURES
Bench 1,499.75
Folding Table 2,499.75
Ironing Board 650.00 4,649.50
ADVERTISING EXPENSE
Tarpaulin 896.00
Leaflets & Flyers 6,000.00 6,896.00
SUPPLIES, ETC.
Plastic Container 1,739.75
Black Cloth 100.00
Calculator 50.00
Rubber Gloves 199.00
Fire Extinguisher 2,500.00
Laundry Basket 1,800.00
Dipper 99.00
Plastic Hangers 2,916.66
Big Plastic Basins 750.00
Tagging Paper Roll 9,000.00
Record Book 200.00
Order Slip 1,687.50
Face Mask Ear Loop 2,496.00
Water Hose 75feet 876.00
Packing Tape 3,744.00
Ballpen 60.00
Delivery Slip 1,300.00
Plastic and Sando bags 28,100.00 57,617.91
CLEANING PRODUCTS
2gals. Fabric Softener 7,902.02
5 gals. Laundry Spotter-Food/Grease/Oil/Lipstick/ Bodysoil
3,988.85
5 sacks Ecobrite Detergent 24,178.90 36,067.77

PERMITS AND LICENSES 5,716.00


RENT 2 MONTHS DEPOSIT + 1 MONTH ADVANCE 30,000.00
TOTAL 562,440.18

69
Table 22 Breakdown of Utilities

Table 23 Depreciation Table

70
FINANCIAL STATEMENTS

Table 24 Projected Five-Year Comparative Statement of Performance

Wash Yours Laundry


Statement of Performance
For the year ended Dec 31
Year 1 Year 2 Year 3 Year 4 Year 5
Service Revenues Php 1,910,016.00 2,101,017.60 2,311,119.36 2,542,231.30 2,796,454.43
Less: Expenses
Salaries & Wages 705,030.72 726,181.64 747,967.09 770,406.10 793,518.29
Employee Benefits 63,362.00 65,262.86 67,220.75 69,237.37 71,314.49
Depreciation - Machines 19,466.00 19,466.00 19,466.00 19,466.00 19,466.00
Depreciation - Equipment 18,939.00 17,170.00 17,170.00 17,170.00 17,170.00
Depreciation - Vehicle 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00
Depreciation - Leasehold improvements 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Depreciation - Furnitures and Fixtures 930.00 930.00 930.00 930.00 930.00
Rent Expense 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Interest Expense 28,958.08 28,958.08 28,958.08 - -
Supplies Expense 249,649.34 257,138.82 264,852.98 272,798.57 280,982.53
Advertising Expense 6,896.00 7,102.88 7,315.97 7,535.45 7,761.51
SSS contribution 83,160.00 85,654.80 88,224.44 90,871.18 93,597.31
PhilHealth Contribution 25,692.00 26,462.76 27,256.64 28,074.34 28,916.57
PAG-IBIG Contribution 30,413.76 31,326.17 32,265.96 33,233.94 34,230.95
Permits and Licenses 5,716.00 5,716.00 5,716.00 5,716.00 5,716.00
Utilities 164,397.00 169,328.91 174,408.78 179,641.04 185,030.27
Tax Expense 57,300.48 63,030.53 64,921.44 66,869.09 68,875.16
Repairs and maintenance 5,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Total General and Administrative Exp 1,603,910.38 1,652,729.45 1,695,674.13 1,710,949.08 1,756,509.09

Income Before Tax 306,105.62 448,288.15 615,445.23 831,282.22 1,039,945.34


Less: Income Tax 11,221.12 42,072.04 83,861.31 139,384.67 201,983.60
Net Income 294,884.50 406,216.11 531,583.92 691,897.55 837,961.74

71
Table 25 Projected Five-Year Comparative Financial Position

Wash Yours Laundry


Statement of Financial Position
As of Dec 31

ASSETS
Current Assets Year 1 Year 2 Year 3 Year 4 Year 5
Cash 318,298.12 613,700.14 1,045,408.33 1,851,164.25 2,810,059.92
Prepaid Rent 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Total Current Assets 338,298.12 633,700.14 1,065,408.33 1,871,164.25 2,830,059.92

Non Current Assets


Machines 216,285.00 196,819.00 177,353.00 157,887.00 138,421.00
Less: Accumulated Depreciation 19,466.00 19,466.00 19,466.00 19,466.00 19,466.00
Equipment 105,208.00 86,269.00 67,330.00 48,391.00 29,452.00
Less: Accumulated Depreciation 18,939.00 18,939.00 18,939.00 18,939.00 18,939.00
Vehicle 50,000.00 41,000.00 32,000.00 23,000.00 14,000.00
Less: Accumulated Depreciation 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00
Leasehold Improvements 50,000.00 40,000.00 30,000.00 20,000.00 10,000.00
Less: Accumulated Depreciation 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Furnitures and Fixtures 4,649.50 3,719.50 2,789.50 1,859.50 929.50
Less: Accumulated Depreciation 930.00 930.00 930.00 930.00 930.00
Total Non Current Assets 367,807.50 309,472.50 251,137.50 192,802.50 134,467.50

Total assets 706,105.62 943,172.64 1,316,545.83 2,063,966.75 2,964,527.42

LIABILITIES & OWNER'S EQUITY


Current Liabilities
Income Tax Payable 11,221.12 42,072.04 83,861.31 139,384.67 201,983.60

Non Current Liabilities


Loan Payable 400,000.00 200,000.00

Total Liabilities 400,000.00 200,000.00 - - -

Owner's Equity
Capital 294,884.50 701,100.61 1,232,684.52 1,924,582.08 2,762,543.82

Total Liabilities and Owner's Equity 706,105.62 943,172.64 1,316,545.83 2,063,966.75 2,964,527.42

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Table 26 Statement of Owner’s Equity

OWNER'S EQUITY
Year 1 Year 2 Year 3 Year 4 Year 5
CAPITAL, Beg - 294,884.50 701,100.61 1,232,684.52 1,924,582.08
add: Net profit 294,884.50 406,216.11 531,583.92 691,897.55 837,961.74

Capital, End 294,884.50 701,100.61 1,232,684.52 1,924,582.08 2,762,543.82

Table 27 Statement of Cash Flows

Wash Yours Laundry


Statement of Cash Flows
For the year ended Dec 31

Cash flow from Operating Activities Year 1 Year 2 Year 3 Year 4 Year 5
Cash received from
Net Income 294,884.50 406,216.11 531,583.92 691,897.55 837,961.74
Depreciation - Machines 19,466.00 19,466.00 19,466.00 19,466.00 19,466.00
Depreciation - Equipment 18,939.00 18,939.00 18,939.00 18,939.00 18,939.00
Depreciation - Vehicle 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00
Depreciation - Leasehold improvements 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Depreciation - Furnitures and Fixtures 930.00 930.00 930.00 930.00 930.00
Increase in Prepaid Rent (20,000.00)
Increase in Tax Payable 11,221.12 30,850.91 41,789.27 55,523.36 62,598.94
Net Cash Flows Provided for Operating Activities 344,440.62 495,402.02 631,708.19 805,755.91 958,895.67

Cash flow from Investing Activities


PPE 426,142.50 - - - -
Net Cash Flows Provided for Investing Activities 426,142.50 - - - -

Cash flow from Financing Activities


Borrowing 600,000.00 - -
Payment for loan 200,000.00 200,000.00 200,000.00
Net Cash Flows Provided for Financing Activities 400,000.00 (200,000.00) (200,000.00) - -

Increase in Cash & Cash Equivalents 318,298.12 295,402.02 431,708.19 805,755.91 958,895.67
Add: Cash & Cash Equivalents, Beg - 318,298.12 613,700.14 1,045,408.33 1,851,164.25
Cash & Cash Equivalents, Ending 318,298.12 613,700.14 1,045,408.33 1,851,164.25 2,810,059.92

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Table 28 Payback Period

Payback Period
(Original Investment / Average Net Income)
Payback Period
Investment 600,000.00
Average Net Income 552,508.76
Payback Period 1.09 years

Table 29 Return on Investment

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Table 30 Break Even Analysis

WASH YOURS
Fixed Cost (Monthly) YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Water 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Electricity 45,000.00 45,000.00 45,000.00 45,000.00 45,000.00
Permits & Licenses 476.33 476.33 476.33 476.33 476.33
Ammortization 19,079.84 19,079.84 19,079.84
Depreciation 4,861.25 4,861.25 4,861.25 4,861.25 4,861.25
Internet & Phone 1,999.75 1,999.75 1,999.75 1,999.75 1,999.75
Wage 63,362.00 63,362.00 63,362.00 63,362.00 63,362.00
Rent 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Advertising 574.66 574.66 574.66 574.66 574.66
Total Fixed Cost 147,353.83 147,353.83 147,353.83 128,273.99 128,273.99

Variable Cost (Monthly) YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5


Repairs 416.66 458.33 504.16 554.57 610.03
Supplies 20,804.11 21,428.23 22,071.08 22,733.21 23,415.21
gasoline 5,200.00 5,356.00 5,516.68 5,682.18 5,852.65
Total Variable Cost 26,420.77 27,242.56 28,091.92 28,969.97 29,877.89

Contribution Margin = (Revenue - Variable Cost) / Revenue

Break Even Point = Fixed Cost / Contribution Margin

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5


Revenue 1,910,016.00 2,101,017.60 2,311,119.36 2,542,231.30 2,796,454.43
Variable Cost 26,420.77 27,242.56 28,091.92 28,969.97 29,877.89

Contribution Margin 98.62% 98.70% 98.78% 98.86% 98.93%


Break Even Point (Annual) 24,333.60 24,312.24 24,292.28 24,273.61 24,256.16

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CHAPTER 4
CONCLUSIONS AND RECOMMENDATIONS

CONCLUSIONS

Based on the findings, the following conclusions were drawn.

1. From the demographic profile; most of the respondents were married

female ages 26-35 years of age and residing in Leveriza Heights Subdivision.

Most of the respondents were government employees with the total household

income of P11, 000 to P20, 000. They are not the head of their families which are

composed of 3-4 members. They owned their houses and been living there for 5

years and over.

2. Households own washing machines. They do their own laundries three

times a week. Some also bring their 3-5 kilos of laundries in laundry shops

because the shops offer them fast service. For the households, they are in favor of

having a laundry shop in their location. They wish to avail the P24/ kilo Wash-

Dry-Fold service for a minimum 6 kilos and P74/ kilo Wash-Dry-Press-Fold

service for a minimum of 6 kilos also. They also want to avail the pick-up and

delivery service for P16.00 within 3 kilometers plus P5 for every additional 1

kilometer.

3. When it comes to establishments, St. Jude Hotel is already operating

over a year while Max’s is already operating 11 years and above. St. Jude has its

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own area for laundry that’s why it does its own 30-40 kilos laundries but

sometimes avails services from a laundry shop. Max’s has no laundry area that’s

why its 20-30 kilos laundries are being done by a laundry shop. Both of the

establishments’ laundries are being done three times a week. St Jude Hotel’s

laundries are usually composed of tablecloths, curtains, blankets, table napkins,

bed sheets & pillow cases while the other establishment’s laundries are composed

of tablecloths, curtains, and table napkins only. Although they have their own

service providers which offer cheap price & free delivery, they are still in favor of

having a laundry shop near their vicinities. And according to them, they may avail

wash-dry-fold and pick-up & delivery services.

RECOMMENDATIONS

The study is feasible and can be established near its target market because

the location is surrounded by most households inside the subdivisions. Each house

in any subdivision has limited space only which makes it difficult to sundry the

laundries especially the blankets, curtains and bed sheets.

The study suggests that instead of offering both full-service and self-

service laundry, it must focus on full-service first since most of the markets prefer

the former. The survey results showed that most of the markets don’t want to do

their own laundries. Later on, Wash Yours Laundry can expand and include self-

service laundry as an additional offering.

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When it comes to sales projection, full-service laundry on Wash-Dry-

Press-Fold has higher projected service income than Wash-Dry-Fold service so

Wash Yours Laundry must promote Wash-Dry-Press-Fold service by giving

loyalty cards which will offer discounts to members who will avail this type of

service only.

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APPENDICES
Mazza, et al, Business Plan for a Self-Service Store Lavo Mate. (2005)

Aparece et al. Feasibility Study “Lovebada Labango Laundry Shop.” (2014)

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