TABLE OF CONTENTS

Page

TITLE PAGE
ACKNOWLEDGEMENT
DEDICATION
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
CHAPTERS
1 BUSINESS CONCEPT
Introduction
Executive Summary
Overview of the Business Concept
Business Name
Business Offerings
Business Structure
Location
Business Feasibility Study Objectives

2 SITUATION ANALYSIS
Related Studies 17
Industry Review 20
Key Drivers and Key Barriers 23
Target Market 23
Competition 24
SWOT Analysis 26

3 BUSINESS VIABILITY
Marketing Aspect 29
Management and Personnel Aspect 34
Productions and Operations Aspect 38
Legal Aspect 44
Financial Aspect 45

4 BUSINESS SCHEDULE
GANNT Chart of Business Activities 60
Budget Summary 60

5 CONCLUSIONS AND RECOMMENDATIONS

Conclusions 61
Recommendations 62
REFERENCES APPENDICES
A Letter of Request to the Municipal Mayor
B Letter of Request to the Barangay C
Letter to Respondents
D Survey Questionnaire

RESEARCHERS’ CURRICULUM VITAE

 LIST OF TABLES

Table 1: Key Drivers and Barriers 23

Table 2: Target Market 30
Table 3: Demand Analysis 30
Table 4: Supply Analysis 30
Table 5: Demand and Supply Gap 31
Table 6: Market Share 31
Table 7: Manpower Requirements 35
Table 8: Legal Requirements 44
Table 9: Sales Revenue Projection 46
Table 10: Cost of Services 47
Table 11: Utility Consumption 48
Table 12: LaundrySupplies Consumption 48
Table 13: Machine Capacity Table 49
Table 14: Office Supplies 50
Table 15: Cleaning Supplies 50
Table 16: Payroll Schedule 51
Table 17: Projected Five Year Statement of Cash Flows 53
Table 18: Projected Five Year Statement of Financial Performance 54
Table 19: Projected Five Year Statement of Changes in Equity 55
Table 20: Projected Five Year Statement of Financial Position 56
Table 21: Payback Period 57
Table 22: Return on Investment 57
Table 23: Capital Intensity Ratio 58
Table 24: Net Operating Margin 58
Table 25: Gross Profit Margin 58
Table 26: Financial Performance Ratios 59
Table 27: GANTT Chart 60
Table 28: Budget Summary 60
 LIST OF FIGURES

Figure 1: Business Logo 14

Figure 2: Sample Flier 32
Figure 3: Sample Coupon 33
Figure 4: Organizational Structure 36
Figure 5: Floor Layout 41
Figure 6: Floor Sketch 42
Figure 7: Operational Procedure 42
 Chapter I

PROJECT BACKGROUND

Executive Summary

This feasibility study attempted to determine the financial stability of a laundry

shop. The researchers sought to prove the feasibility of this business through the evaluation

and presentation of the different aspects concerned in its establishment. Through this

summary, the business concept will be explained and the feasibility of the business will

be proved.

Through modernization, the world itself created a lot of changes which lead us to

an economic evolution. These changes can be attributed to the improvement of

technologies such as innovations and inventions.

“Clean Capsule” is a laundry shop that will provide dry cleaning, laundry, and

garment alterations, offered with regular home pick-up and delivery services which

is located in San Fernando, Pampanga. The target market in the study is the households

residing in the proper town of San Fernando, Pampanga.

into four barangays namely Barangay _____, _____, _____. Competitors existing in

the current market are mostly traditional laundry shops. Compared to these traditional

laundry shops, Regular Home pick-up and drop laundry shop is more convenient, time

efficient, and affordable. Moreover, customers can supervise their laundry and use their own

specifications. On the other hand, being newto the market might be one of its weaknesses;

however, the researcher concluded that there is a high acceptability for the Home pick-up
and delivery laundryshop. In addition, there is a current gap on the demand and supply analysis,

which means there is a market share for new entrant.

 In a financial part, investing in a Home pick-up and delivery operated laundry

shop is capital intensive. This can be attributed to the acquisition of the vehicle to be used in

the operation. However, despite of being capital intensive, payback period in this business

can be expected in an acceptable period of time. In addition, due to its nature as a cash

business, there will be no possible long term receivables and liabilities. Also, based from

this study, profitability in this business can be expected in a great and satisfying result.

Through evaluation and analysis conducted in this study, establishing “Clean

Capsule”, Pick-up and Drop Laundry Shop, Pampanga is very feasible. Thus, proceeding

with the location and market plan provided by the study is highly recommended.

Introduction

Doing laundry is a part of every person’s life. Just like food and shelter, clothing is

one of our most basic necessities. To have fresh clothes every day that we can readily wear,

we allot some of our time and energy in washing and drying our clothes. There are two basic

ways in doing this, i.e. hand washing and machine washing. However, some people either

don’t have enough time or energy or both to do their own laundry. Thus, the birth of

laundry shops.

In the essence of modernization, there is a continuous improvement of

technologies through invention and innovation. The diffusion of technological changes

helps our economies evolve and this change affects the lifestyle of every individual. It is

clearly evident in the evolution of laundry machines. In the older times, it usually takes two

or more days before we can take back our clothes from the laundry shops. With the
emergence of coin-operated laundry machines, we can now do a week-load of laundry in

less than hour.

The Clean Capsule offer a Pick-up and Drop Service by just dialing the laundry shop’s

Contact Number for hustle free, Because of this, the customers will be able to do their work

at home.

For the judgment of feasibility of establishing a home pick-up and drop service

laundry shop, this study will provide a historical background of the business project,

description of the service, market analysis, details in operation and management, research

and policies and financial data. This study will be most beneficial to those who want to

venture into the laundry industry.

Historical Background

Washing of laundry is one of the oldest household chores, probably one of the

most unappreciated, known to man. Before the emergence of washing machines and

mechanical dryers, let us discover how washing laundry was done before.

The beginning of laundry can be attributed to the use of wool on clothes. Since

wool are highly expensive at that time, and the use of cotton has not yet been discovered

for textile, the need to reuse the clothes through cleaning had been a necessity. During

the earlier times, people did their laundry along rivers and streams. Laundry washing used

to be a man’s job, with full ones using rocks and boards to scrub and their feet to tread

the clothes. After washing, the clothes were dried and were brushed with hedgehog’s

skin or some thorn-embedded stalks or stems to remove visible adhering soils, after

which sulfur was scrubbed to whiten the clothe. Sun drying was the drying method used.

Manual Washing machines were developed 1700’s to aid tedious work of

handwashing. The first electric washing machine was released to public in 1900.

The fast Change of trend from individualized laundry to commercial laundry

services coincides with rapid technological change as well as the fast, changing and

modern lifestyle of Filipinos.

Laundry business is an easy convenient business to star. You can start this

business right from home and grow from there. It is very lucrative business, as not

everyone that puts on clothes has the time to do the laundry.

Situation of Industry

In a laundry market competition, it is advantageous to have a more convenient

and efficient service. Therefore, the idea having a home pick-up and delivery service type

one emerges as an enticing option.

The Business concept of Clean Capsule Laundry Shop is unlike any other existing

laundry shops in the municipality. The main factor that makes it different is the

introduction of the Home Pick-up and Drop Service which makes doing laundry Hustle

Free and Time Saving. We will also offer Suki /loyalty Discount Voucher, to maintain

the loyalty of the customer we will offer membership and there will be corresponding

points to reach to avail the discount. Aside from that we will also add a promo on the

first 2months of the Clean Capsule Laundry Shop, a Bring a friend promo in which a gift

item will be given if they bring a friend with them.

Business name

The business name is the first component of communications to the customers

as it will reflect the nature of the business, the right name can make your company the talk
of the town especially when it is unique and probably would catch their attention.

Therefore, proposedname of our business is “Clean Capsule Laundry shop” means we will

wash your clothes and will drop to you all clean and ready to wear.

Business Logo

Fig. 1 Business Logo

Location

The proposed location is at the San Fernando Pampanga. This location composes

of schools such as the St. John Bosco School of San Fernando Pampanga, AMA

Computer College San Fernando and Asian College of Science and Technology;

establishments; apartments and boarding houses.

Business Ownership
Mr. will be the one who will own and build the Clean Capsule Laundry Shop. It is
structured as sole proprietorship in which the business is established as a legal entity.

Mission

Establish a prestigious Pick-up and Drop Laundry Shop in San Fernando, Pampanga

to dominate the market in the field of our industry by providing our customers an

ambient, comfortable, and quality service and expand our business within the area of the

community. Remain trusted for our integrity, admired for our innovations, respected

for our business practices, and recognized for our success.

Vision
Clean Capsule, as a leading provider of Pick-up and Drop Laundry shop services

in San Fernando, Pampanga in terms of excellence, client satisfaction, professionalism,

and quality superiority.

Goals
To provide our customers with a hustle free, consistent, dependable-when-

promised service. To maintain a high standard of workmanship, which produces a

quality product.

Objectives

In providing laundry cleaning, folding, and ironing services for customers in San

Fernando, Pampanga Cleaners aims to;

Establish sustainable business by the end of the first year. Produce net profits.

To establish a good brand to customers and gain brand loyalty in its first three months

of operation by prevailing a socially responsible enterprise.

Research Design
 The researchers chose a survey research design because it is best served to

answer the questions and the purposes of the study.

The survey research is one in which a group of people or items is studied by collecting

and analyzing data from only a worker, adult and students residing near the proposed

location of the project. The survey will assess public opinion by the use of questionnaire

and sampling methods.

Research Locale

This study will be conducted in San Fernando, Pampanga. The respondent will

be interviewed and answer the survey in their houses, school or any comfortable place

that the respondent will choose to. The researchers also gathered respondents residing

the apartment near the said area. These respondent will be interviewed using the

researchers survey. The researchers chose the near place of implementation because it

will give the researchers the needed information for their proposed project. The Study

is conducted in the Last semester of the academic year 2019-2020.

 Chapter II

MANAGEMENT FEASIBILITY

This Chapter tackles about the entire organizational arrangement of the business.

The management aspect suggests a clear and precise identification of duties and
responsibilities, flow of authority and manpower level requirement. This contains the

organizational chat and the qualifications of the people involved the formation of the
business organization, structure. It must be able to plan all activities, for the company

to become dynamic and competitive business over and done with human resource,
financial capability and new technologies.

Kinds of Business Org.

The type of ownership will be Sole Proprietorship; A sole proprietorship is chosen since
it is one of the least expensive business structures to begin. Only one person owns a sole
proprietorship business, the legal requirements involve simply registering a business name

and obtaining any relevant licenses or permits that relate to the specific type of business.
Many sole proprietorship businesses have very low start-up costs as compared with other

type of business structures. The start-up investment typically includes the basic costs for
equipment, marketing and office utilities. However, the amount of the start-up costs may

vary, depending on the specific type of business.

II. Registration: Essentially, a sole proprietor business legally comes into existence
when the business owner registers the business name and obtains any relevant business

licenses.
Government agencies for registration

- Department of Trade and Industry

- Local Government Units where your business is located:

1. Barangay
2. Mayor’s Office

- Bureau of Internal Revenue

- Legally Required Registration of Employee Benefits

Employers are legally required to provide certain benefits for employees.

Employee benefits play an important role in the lives of employees as well as their

families. For that reason, the benefits you offer can be a deciding factor for a
potential; employee’s decision to work at your business.

Employee’s registration to the following:

- SSS

- Philhealth
- Pag-ibig – HDMF

Basic requirements and procedure in registering a Sole Proprietor Business

- Register a business name at DTI
1. Come up with three business names

2. Search in the DTI’s website if there is an existing name similar to yours

3. If your business name is available, fill up business name (BN) Application Form
 4. Submit your completed BN application form to DTI’s offices/branch.
5. Wait for your DTI Certificate of registration

- Registration with Barangay

1. Go to the barangay where your business is located to secure and fill-up

application form.
2. Submit your completed application form together with the following:

a. Certificate of Business Registration from DTI

b. Two valid IDs

c. Proof of Address such as Contract of Lease

3. Claim Barangay Certificate of Business Registration

- Register your business in the Mayor’s Office

1. Go to the municipal office where your business is located to secure and sill-up

application form
2. Submit your completed application form together with the following:

a. Certificate of Business Registration Form DTI

b. Barangay Clearance Certificate

c. Two valid IDs

d. Proof of Address such as Contract of Lease

- Register in the Bureau of Internal Revenue (BIR)

1. Go to Regional District Office where your business where your business is

located
2. Fill-up the BIR Form 1901-Application for registration (for Sole Proprietor)

a. Certificate of Business Registration Form DTI

b. Barangay Clearance Certificate

c. Two valid IDs

d. Proof of Address such as Contract of Lease

e. Mayor’s Business Permit

- Pay Registration form (BIR form 0605)
- Register your book of accounts and receipts/invoices

- Claim your certificate of Registration (BIR Form 2303)

Amount of Registration
Business Permit and Licenses
 Registration with DTI 215.00
Registration with Barangay 100.00
Business Permit in Mayor's Office 5,027.00
Registration in BIR 500.00
Total 5,842.00
Fig. 2 Registration Expenses
Structures and Feature of Organization

An organizational structure is a system that outlines how certain activities are

directed in order to achieve the goals of an organization. These activities can include
rules, roles and responsibilities. Businesses of all shapes and sizes use an organizational

structure heavily. They define specific hierarchy within an organization. A successful

organizational structure defines each employee’s job and how it fits within the overall
system. Put simply, the organizational structure lays out who does what so the
company/business can meet its objectives.

Fig. 2 Organizational Structure

Management Style

I. Hiring Process

The applicants are required to submit their resume on the position that they are
interested to apply for. The management will immediately evaluate and sort those

applicants. And whoever passed in the next stage will be informed by means of a
message on mobile phones. Each of them will undergo a brief interview to personally

determine if they are fit physically and mentally to the position they were applying
for and not only that but also to evaluate if they really have the skill and ability to stay

at the business. And those who successfully overcome the process shall submit their
requirements for legal purpose employment.
 1. Physical Requirements
a. Age must be 28-40 years’ old

b. Workers without bending, crouching or walking restrictions.

c. No Skin allergies

2. Skills, Interests and Qualities

a. Must be Graduate of Housekeeping NC II

b. Practical Skills to operate and adjust machinery

c. Good Attention to detail

d. Willingness to do repetitive work

e. The ability to work methodically and follow instructions

f. Willingness to work flexibly

g. Good timekeeping skills

h. Has the ability to count and measure accurately

II. Safe Working Environment

Safe working environment keeps the employees free from any hazards and it

complies with the law providing safeties especially to the business operated. There
are safety precautions that should be apply, employees are segregated based on their

assigned jobs. They are required to wear gloves and mask during the laundry process
to avoid from skin irritations. They are allowed to wear comfortable dress attire so

that it would not be hard for them to move freely. Personal hygiene is appropriate to
avoid disease or any illness, especially for chemicals that contains strong solution.

There is specific baggage area for the employees where they can place their bags or

things to it. Their things will be check by the assigned personnel or the owner before
and after working hours to avoid thief or any misappropriation of assets.

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

business requires training for its employees, especially it is in need of due care, as
clothes one the basic needs of every individual. Before being hired, employees will
 undergo some sort of trainings for laundry process to evaluate if they have the
capabilities required for the position, and to ensure that they will know how to

properly do their jobs to give the customer the satisfactions they are looking for. They
will be evaluated as necessary to test their working knowledge and improvements.

The PowerClean Chemicals Institute (PCLi) is our choice to be the supplier of our

laundry chemicals and they also offer laundry seminar not only in Luzon but also to
other regions in the Philippines. We chose them because the lectures are based from

actual experience of running a laundry shop. They have wide coverage of topics which
covers the Business Management such as Financial Aspect, Taxation, Marketing,

Manpower, Machine and the like. They provide continuous assistance, demo of
laundry chemicals and advice of laundry operations and management even after the

seminar. The speakers are experts in Laundry Business in which they already trained
more than 1,300 Laundry owners. Affordable price of ₱15.00 each person for early

registrants of laundry shop session. They also continuously improve their training
facility with free Wi-Fi access.

The owner should understand his choice of employees and time invested to train

them results in a direct reflection in his marketing efforts and money spent on those
efforts. All of the owner’s best intentions to provide a clean, well equipped, multi-

service, and attractive store to his customers will be wasted if there are any employees
who do not provide to his customers the level of service, clean appearance, and

customer friendly attitude they expect and his deserve for his investment.

At all times, the owner should remind his employees that their top priority is their
customer’s interests. From welcoming the customers to the shop, to keeping the

machines, and floors clean, keeping bathrooms clean, and properly supplied, taking
in Wash-Dry-and Fold and Pressing, peacefully resolving customer issues and
complaints, and having that all important good attitude. Monitor also the employees

closely and fix any employee problems immediately.

Jobs Specification and Job Description

I. Manager

Owner: operate their own company or Business and handle responsibilities such
as creating business plans, arranging financing, hiring staff, reviewing sales, developing

marketing strategies, overseeing daily activities, and identifying business opportunities.

Bookkeeping: analyzing and recording the transaction on time.

II. Machine Washer

a. Weigh laundry and place it in huge washing machines. Machine washers

control the machine settings for each kind of material. This includes setting

the proper temperature, washing speed and water and suds level and
adding the right amount of bleaches and rinses. After the laundry is washed

and rinsed.
b. Marker or Sorters Tag: Mark the laundries so that they can be returned to

the appropriate customer. They usually remove loose buttons and mark
items that need to be mended.

III. Route Worker

Pick up Laundries at Customer’s Homes. Market new customers along their routes.
They also deliver clean laundry, giving invoices and collect payments.

IV. Chief Finance Officer

a. Counter Clerk: Answer Calls and Received laundries from customers, give
back clean laundry, scheduling the date of pick-up and delivery with the

customers, and billing.

b. Inspect & Supervise: Check the finished laundry. If it needs rewashing or

repressing, he sends it back to the proper department. He sends some

pieces to menders, who do repairs by hand or machine. Assemblers collect
all the items belonging to each customer. Finally, baggers or bundle

wrappers place the laundry in bags or bundles and attach invoices, which
indicate how much money the customer owes.
V. Extractor Operator

Place it in extractors, which spin most of the water out of it. The laundry then goes
to tumbler operators who put it in drying machines that tumble it dry. Some items, such

as blankets and rugs, may be hung in heated rooms to dry.

Motivating and Rewarding Employees

Aside from the basic salary and necessary benefits given to the employees, 13th Month

Pay must be given as stated in the 13th Month Pay Law, Memorandum Order, P.D. No. 851 and

also, De Minimis Benefits such as Uniform Allowance and Laundry Allowance. Furthermore, it is

important for the partners to have a tight bond with their employees to avoid hostility and to

promote trust and loyalty. There will also be celebrations during special occasions such as

Birthdays, Christmas and New Year will be organized by the owner.

Conditions of Employment

A condition of employment refers to something that both the employee and

employer agree to at the beginning of a worker’s employment. Examples of items that

might be brought up when discussing conditions of employment include dress code,

number of vacation days, hours worked each day, break policies, work-related
responsibilities and number of sick days. These conditions can also encompass certain

benefits such as retirement plans and health insurance coverage. A condition may also
include a contract that states that an employee is given employment for a certain length

of time so long as the employee does not violate the terms of the contract. Workers with
more valuable workplace skills are more likely to be able to negotiate better employment

conditions.
All workers or Staff that will be hired by the Owner of Clean Capsule Laundry Shop

will be given a Condition of Employment Form or Contact for them to review and signed. And
the owner will provide them the agreed Conditions.
General Business Policy

I. Terns and Condition for Wash Dry Fold Service

Rest assured, your satisfaction is our first priority. In fact, we treat your laundry as
if it were our own, however we still need to agree to some rules to ensure that there are

no misunderstandings about Clean Capsule (referred to as “we,” “us,” “our”, or “Clean

Capsule Laundry”) or your obligations and responsibilities. By using our service, you

acknowledge and accept the following Terms and Conditions.

II. Suitability for Laundering

By using our service, you agree that your clothes are suitable to be washed in water,
on a normal cycle, and dried using heat in a tumble dryer. We cannot be responsible for
any damage to clothing that is not suitable for this standard laundering process.
III. Pick-up/Drop Service

All services will be provided by Clean Capsule Laundry Shop. Pick-up/Delivery will
take place on a predetermined day and frequency, except on certain holidays, as

determined by you. Clean Capsule Laundry or you may change the predetermined pick-
up/delivery times, permanently or temporary, with advance notice by either you or Clean

Capsule Laundry. Clean Capsule Laundry requires at least 1-hour notice prior to any
change. Clean Capsule provides pick-up and delivery service between San Fernando and

every City in between these two.

We will do our best to pick-up your laundry at the agreed upon time however sometimes
things beyond our control (think Highway 4 traffic) can cause delays. We don’t want to

be late however we can’t be held accountable if we are late for unforeseen circumstances.
Similarly, we hope that you will strive to be on-time for our pick-ups and deliveries. If

you do miss a pick-up or delivery, we will try to coordinate an alternate time as soon as
possible.

A No Show is when we show up to your door, but you and your laundry aren’t around.

In the case of a Now Show, we reserve the right to charge a No Show fee (15 Pesos).

Keep in mind, there’s no fee if you cancel or reschedule 4 hours before the start of your
pick-up or delivery time.
If you’d like to leave your items at a secure spot for pick up, it will be at your own risk.

This is also true for delivery. Items left for pick up are not under our care until we have
retrieved said items. Items left for delivery at the predetermined location will not be

under our care once they have been left at the agreed upon location. Clean Capsule
Laundry are not responsible for, and shall not pay for, any loss, damage or theft of items

left unattended by the customer for pick-up or delivery. Clean Capsule Laundry will not
leave items in the possession of any other person that is not the owner of those items

unless the owner has given consent. The customer is responsible for ensuring that his/her
laundry is delivered safely to the Clean Capsule Laundry Shop.

If the customer misses the scheduled pickup/ delivery, the customer must coordinate

with Clean Capsule Laundry Shop to reschedule. Customer may be subject to a missed
pickup/ delivery fee in the amount of 15 Pesos if they fail to notify their Provider 1 or

more hours prior to the scheduled day & time.

IV. Minimum Fee

We do have a minimum weight limit for “drop off” laundry (you drop it off at our

store) of 3kg. If you have less than 3kg., we’re happy to wash your clothes but you will
be charged for the minimal 3kg. fee. With our “Pick Up and Drop Service,” we have a

minimum $25 order amount per visit. If you cancel your order after we have already
picked up your laundry you will still be charged this minimum 15.00 Pesos fee in order

to cover the cost of returning the laundry to you without servicing it. Please take the time
to weigh your clothes ahead of time so that you know what to expect regarding cost

before placing an order and agreeing to both these terms/conditions as well as our
pricing.

V. Lost Laundry
We would love to be able to inventory every piece of laundry you give us.

Unfortunately, it is cost-prohibitive for us to do so. As a result, we can’t be held

responsible for any lost laundry; we simply have no efficient way of verifying that we
actually received any particular piece of laundry in the first place. Rest assured though,
we carefully track your clothes. For instance, we tag your clothes with your sales slip, and

your clothes will never lose in our facility unless they’re inside a machine, on the folding
table with us present, or locked in our office. If you do believe you are missing something

from your delivery, please notify us within 24 hours of receiving your clean clothes back
— we are much more likely to find misplaced laundry if it is reported early.

You agree that by using our services that if you are not home during delivery, that it is

OK for us to leave your order by the front door. You further agree that any loss, stolen,
or damaged laundry as a result of the pick-up or delivery process is not our fault and you

agree that you accept full responsibility for your laundry during these times.

VI. Customer’s Account

The customer’s account will be the basis to track their location during the pick-up

and delivery service. It contains the customer’s name, address, contact number, number
of returned garments with the payments and other information using the Microsoft Excel

as our system. It is necessary to have a better customer communication such as,

scheduling or canceling of bookings, automatic SMS, information about their account

balances without invoice tickets during delivery and optimized customer search.

VII. Refund Policy

Before you commit to using our “drop off” service we weigh your clothes to tell

you what the cost will be ahead of time. If you agree to use our services at that point,
then we expect payment before washing your clothes.

If you choose to use our “Pick-Up and Drop” Service, then you can weigh your

clothes and estimate their weight/price before choosing to proceed with your order.
Once we receive your order back at our store, we will go through your laundry looking
to be sure there are no items you missed like comforters, blankets, sleeping bags, and

rugs which are priced by the item and NOT by the pound. We reserve the right to then
modify the price on your order and continue washing the clothes/items and charge you
on the Drop off. Although we truly hope you are satisfied with our services, once we have
laundered your clothes, we cannot offer a refund. Additionally,

VIII. Privacy Policy

We Collect information from you when you register on our shop or when you talk
to one of our employees. When ordering or registering on our shop, as appropriate, you

may be asked for information like your name, e-mail address, home address, phone
number and mode of payment. We do not sell, trade, or otherwise transfer to outside

parties your personally identifiable information. We may also release your information
when we believe release is appropriate to comply with the law, enforce our site policies,

or protect ours or other’s rights, property, or safety. However, non-personally identifiable

visitor information may be provided to our staff for marketing, advertising, or other uses.

IX. Miscellaneous

As our business changes, we may want to modify some of terms in this agreement.
Therefore, we encourage you to check back frequently to familiarize yourself with any

changes.

X. Self Service Customers

We take no responsibility for self-serve customers laundry. Please check inside all

machines both before and after each use. Check your pockets for left-in articles like
crayons, lipstick, etc. Remove any bra wires if possible before washing as they come out

regularly in the machines. Many items may not be suitable for washing as they can’t
handle the washing process so doing so is at your own risk. If you find a machine that is

damaged, notify us immediately and do not use it. Follow the directions of any chemicals
you use and do not use more soap than recommended. No dyeing of clothing is allowed.

No rubber or tar covered items may be washed or dried in our machines. If you have any
insect infestations, you may not wash or dry in our stores. Follow the order of instructions
on our machines. Feel free to ask us for directions. Do not leave your clothes unattended.

Please remove your clothes promptly once they are finished washing and or drying. The
carts are to be shared once your clothes are washing or drying, no reserving carts for your
 entire stay and they must remain inside the store at all times. Children may not play with
or ride in the carts. No sitting on folding tables or placing children on them. Please clean

up after yourself and leave the store in the same condition as when you arrived. No
smoking, no loitering, no soliciting, and no pets of any kind are allowed inside. The

washers must be started by 6:30 PM or they shut off automatically. The dryers will shut
off at 7:00 PM regardless of any remaining time left on them so do not overfeed them

with quarters. All customers must vacate the store by 7:00PM. We do not have public
bathrooms in any of our stores. We do have private bathrooms for our employees in our

stores that we generally are willing to share with our loyal guests while they are washing
with us. This assumes an Attendant is on duty and present to let them in while they are

working.

Employee ‘s Rules and Regulation

The following Rules and Regulations shall apply to all employees of the Company

while in the Company’s premise at all times including break times and overtime:

1. Each employee must act in accordance with the company’s policies, orders, rules,
regulations, guidelines etc. applicable from time to time.

2. The Company expects each employee to maintain proper decorum. Employees are
expected to conduct themselves on the job in a manner that contributes to operating

effectiveness, productivity, safety and a harmonious work environment.

3. The duty must be performed in good faith and a brief reporting of the work done in

the entire day must be given to the head office.

4. Proper registers must be maintained for easy tracking and record keeping.

5. No employee shall be under the influence of or using alcoholic beverages including

drinking such beverages during the work hours. Any employee arriving to work under

the influence of alcohol or an illegal substance will not be permitted to work.

6. No employee shall drive a Company’s vehicle or operate any equipment while under

the influence of alcohol.

7. You are required to be at your appointed work place and ready to begin work at the
appointed starting time. Irregular attendance or tardiness will not be tolerated and may
 result in termination.
8. Employees who will be late or absent from work must inform their Supervisor at least

two (2) hours prior to normal starting time.

9. Under no circumstances should employees leave the assigned work area early without

express permission from a Supervisor.

10. Designated break times are assigned to have meals.

11. Employees who work late or on overtime must ensure that all lights, air-conditions and
Equipment are shut off when they leave the work place.

12. Dress code is to be followed strictly. Employees must wear their uniforms at locations
where uniforms are required. You are expected to look neat and presentable while on

the job.
13. An increment based on individual performance shall be given every year.

14. If employees do not meet the company’s expectations of performance or conduct,

necessary corrective action may be taken. It is within management’s discretion to

determine what measure would be appropriate under each circumstance.

Operation Schedule

Clean Capsule Laundry Shop Operating hours from 10:00am to 6:00pm Monday to

Saturdays, Their Break time is 12:00noon to 1:00 pm. The Pick-up and Drop will start at
9:00 am from Monday to Saturday. Our customers will contact us, since we are giving

leaflets to them and posting tarpaulins in the area. The customer and the counter clerk
will set-up the date of pick-up of laundry through telephone or cellphone, prior to the

date of pick-up in order to manage the route in one way we can reduce the cost of
gasoline. However, we will charge ₱5.00 for every pick-up and delivery.

Operation Schedule
Clean Capsule Operating hours from 10:00 am to 7:00 pm From Monday to Saturday.

Day-Off (Sunday) Break time: 12:00 to 1:00 pm.

Salary Scheme

Salary scheme are an important component of effective compensation programs

 and help ensure that pay levels for groups of jobs are competitive externally and equitable
internally. A well-designed salary structure allows management to reward performance

and skills development while controlling overall base salary cost by providing a cap on
the range paid for particular jobs or locations.

PAYROLL SCHEDULE (FIXED RATE)

Personnel No. Min.Wage/ Working Monthly DEDUCTIONS Total

Net Monthly Pay
Day Days Gross Pay SSS Premium PhilHealth Premium PAG-IBIG Premium Deductions
ER EE ER EE ER EE
Chief Finance 1 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 6,474.34
Officer
Route Worker 1 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 6,474.34
Exctractor Operator 2 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 12,948.68
Machine Washers 2 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 12,948.68
TOTAL 27,872.00 2,102.80 1,017.20 400.00 400.00 557.44 557.44 1,974.64 38,846.04
TOTAL PER ANNUM 334,464.00 25,233.60 12,206.40 4,800.00 4,800.00 6,689.28 6,689.28 23,695.68 466,152.48
Employer's Contribution 36,722.88
Employee's Contribution 23,695.68
Figure 3. Salary Scheme
Cash Handling

Cash management refers to the management of an entity’s cash to ensure

sufficient cash to sustain the entity’s daily operations, finance continued growth and

provide for unexpected payments while not unduly forfeiting profit owing to excess cash
holdings Basically cash management is concerned with managing cash flows that is cash

inflows and cash out flows.

Major sources of cash inflow include cash from operating activities, sell of business
assets among others. Sources of cash out flows include settling of creditors, purchase of

inventory among others. Cash needs to be efficiently managed and allocated to meet
routine business objectives. The gap between cash expenses and cash collection enhances

liquidity position, profitability leading to overall business growth over a period of time.

The Importance of Cash Management Cash management decision is one of the important
decisions because of the scarcity of financial resources of many companies, and for
different objectives and, as we know that cash is the most liquid assets, where cash is
considered an important element in the management of the company’s operational

process in order to achieve success. The cash management is a function of financial

management and that are interested financing and investment operations as the cash

component affects the performance of the companies and the competitors in markets.

A lot of companies interesting to think in the following decisions: capital structure, capital
budgeting and the decision of the working capital where the decision of the working

capital is the important decisions that affect of the performance of companies in terms of
liquidity, which is reflected on the profitability and hence the level of competition in the

market as it may determine the survival or the company out of the market

The importance of managing cash in a business comprises of the following advantages: -

Managing cash helps in achieving liquidity in a business and proper control; - It assists in

the planning towards reducing cash expenses and increasing cash receipts to ensure the
business is liquid; - Proper managed cash is vital as the future cash flow behavior cannot

be predicted. Therefore, it’s essential to plan; and - Through proper controls of cash,
innovative procedures could be implemented for cash receipts and cash payments in the

business.

The in charge of handling the payment of the customer in Clean Capsule Laundry
Shop is the Chief Finance Officer and turnover all finances, bookkeeping including all

transaction, all proceeds and financial record will be the manager or the owner.

Attending Customer Request

Untimely response to customer requests is one of the hallmarks of poor customer

service. Customers want to feel valued; they want to know their business is appreciated.
Therefore, customers are likely to take their business elsewhere if they feel neglected, if
they have an immediate need for a service that you are failing to deliver, or if they simply

do not appreciate your work ethics.

Poor response time, especially if done repeatedly, results in loss of customers and
revenue. The key to generating loyal customers is to provide them with efficient service

by the required time frame. For example, if you provide in-house electronic repair services,
arrive on time for appointments and keep the lines of communication open between you

and the customer.

The One who is in charge of answering and attending all customer request will be our
counter clerk.

Attending Customer Request

One of the biggest mistakes that an organization can make is to assume that all of its

customers are the same. The power of excellent sales, marketing and customer service
comes from realizing that different types of customers have different types of needs.

While some organizations consider customer complaints to be signs of failure, others see
them as opportunities to learn from. Also, research suggests that customers who

experience prompt resolution to their complaints often are some of the most loyal
customers. You can understand why the most important aspect between your

organization and its customers is the quality of the relationship between the organization
and its customers. That quality determines how loyal your customers are to your

organization.
 Chapter III

MANAGEMENT FEASIBILITY

This This chapter provides information about the management of the business.

Basically, it shows control and supervision matters and even the start-up cost of the
business. It will also provide you with information about the environment, target market,

target age and other formula that will be use. This includes the area covered, target
market, proposed location, competitors, the demand and supply. The purpose of this

chapter is to project how much startup capital is needed, sources of capital, return on

investments and other financial considerations.

Marketing Analysis Customer

Despite the continued fluctuation and instability of the Philippine currency, there is
one thing that remained certain: Everyone has to wash clothes! With companies
downsizing and people looking to create new identities for themselves, the idea of
opening or a Pick-up and Drop Laundry Shop one emerges as an enticing option.

Clean Capsule will be primarily targeting customers in the San Fernando,

Pampanga area. We will start off by offering services to the city of________________
but will also aim at extending our service offering to the residents of nearby town.

We will be targeting both Young Professionals, Students and Family as customers

who would value the convenience of our service in Brgy., Brgy. And Brgy. as

customers who would value the convenience of our service. Demographic research
shows that the total population of the Brgy. area is about 523 populations. Brgy.

area is about 670 populations, Brgy. area is about 1706 populations, as summarized
in the table
MARKET ANALYSIS below.
Brgy.

523

1706
670
Brgy. Brgy.

Figure 4 Market Analysis

The chart in the previous topic shows survey result of population resident

of the 3 barangay who is willing and will go to Clean Laundry Shop. This results in
increasing standard of living, which in turn leaves people having less time to do

their housework (including laundry) in San Fernando, Pampanga. They are often
tired after the whole day of working and tend to spend money to hire someone

else to do the housework for them. Moreover, the demand on clothes of these
working people (particularly professionals) usually increases proportionately with

their income. Buying more clothes, especially expensive clothes, makes them pay
more attention to the care and cleaning of those garments. With careful research,

this business focuses on working and professional class customers as a target

segment market.
Environment Analysis

Gathering Data

Data collection is defined as the procedure of collecting, measuring and

analyzing accurate insights for research using standard validated techniques. A

researcher can evaluate their hypothesis on the basis of collected data. In most
cases, data collection is the primary and most important step for research,

irrespective of the field of research. The approach of data collection is different for
different fields of study, depending on the required information.

The researchers will be using the method of Interview, Case Study & Questionare:

Interview as a technique of data collection is very popular and extensively used in

every field of social research. The interview is, in a sense, an oral questionnaire.

Instead of writing the response, the interviewee or subject gives the needed

information verbally in a face-to-face relationship. The dynamics of interviewing,

however, involves much more than an oral questionnaire.

Interview is relatively more flexible tool than any written inquiry form and permits

explanation, adjustment and variation according to the situation. The observational

methods, as we know, are restricted mostly to non-verbal acts. So these are

understandably not so effective in giving information about person’s past and

private behaviour, future actions, attitudes, perceptions, faiths, beliefs thought

processes, motivations etc.

According to Biesanz and Biesenz “the case study is a form of qualitative analysis

involving the very careful and complete observation of a person, a situation or an

institution.” In the words of Goode and Hatt, “Case study is a way of organizing
social data so as to preserve the unitary character of the social object being studied.”

P.V. young defines case study as a method of exploring and analyzing the life of a

social unit, be that a person, a family, an institution, cultural group or even entire

community.”

In the words of Giddings “the case under investigation may be one human individual

only or only an episode in first life or it might conceivably be a Nation or an epoch

of history.” Ruth Strong maintains that “the case history or study is a synthesis and

interpretation of information about a person and his relationship to his environment

collected by means of many techniques.”

Shaw and Clifford hold that “case study method emphasizes the total situation or

combination of factors, the description of the process or consequences of events in

which behaviour occurs, the study of individual behaviour in its total setting and the

analysis and comparison of cases leading to formulation of hypothesis.”

The use of the two method will help the researchers gather all necessary

data such as the total population in every houses, apartments & etc. of the covered

area with the help of the actual records of City Hall San Fernando, Pampanga.

Questionnaire provides the most speedy and simple technique of gathering data

about groups of individuals scattered in a wide and extended field. In this method,

a questionnaire form is sent usually by post to the persons concerned, with a

request to answer the questions and return the questionnaire.

Project Location
This is to identify a point or an area of study. Geographic target is in San

Fernando, Pampanga City primarily located at this Barangays _______, ________ and

_________ as a primary market. This is 3.5% of the overall barangays total of 86 that
composes the city. This location composes of schools like St. John Bosco School of
San Fernando Pampanga, AMA Computer College San Fernando and Asian College of
Science and Technology; establishments; apartments and boarding houses. Out from

these components we will determine the population of those living in apartments

and boarding houses where our target market is situated.

Figure 5 Are covered Brgy.

Figure 6 Are covered Brgy.

Figure 7 Are covered Brgy.

Target Market

Our target market will determine from those living in apartments and
boarding houses within the mentioned Barangays such as:

1. Young Professionals
2. Students

3. Family

This group of market will be described their need according to their lifestyle
considering a number of potential influences on buying behavior including the
attitudes, expectations and activities of consumers.
No. Apartments and No. Apartments
Boarding houses and Boarding
Age in Years
House

18-28 523 32
29-45
670 23
46-75
1706 72

Total 2899 127

Figure 8 Distribution of Population Age Result

1. The number of apartments and boarding houses were gathered from the
list of registered business establishments as of June 2019 from City Hall

San Fernando Pampanga.

2. The Population is based from actual data which is gathered by the

researchers while doing the survey and interview with the

Caretakers/Owners.

In order to know the population demand for the proposed laundry business for that
area in Brgys., we used the “slovins” formula in determining the number of

respondents for the survey questionnaires. We use the actual number of residents in
apartments and boarding houses total 2,899(fig.8) and the margin of error would be

10%. Margin of error denotes the allowed probability of committing an error in

selecting a small representative of the population.

Slovin’s Formula
N = n / (1 + ne^2) Therefore:

N = Number of samples N= 2899

n = Total population (1+2899*.10*.10)
e = Margin of error
N= 96.67 round of to 97

Age Number of Distribution Ratio total Respondents Distribution of

population respondents

18-28 523 18.0% 97 17

29-45 670 23.1% 97 22
46-75 1706 58.8% 97 57
2899 100.0% 97
Figure 9 Distribution of Age result

1. The number of population is based on Actual.

2. The ratio for distribution of respondents is based on the Specific population

in a barangay over total target population and is multiplied to number of

respondents.

Market Segmentation

There are four types of Market Segmentation, in this Research Age

Segmentation will be use under Demographic Segmentation. Demographic

segmentation strategy in which a product-market is grouped into segments based

on the basis of age so that the organisation can more precisely target its offerings to

the needs and wants of each stage of life of interest to it. In this way, an organisation
may develop different products and different marketing approaches for school

children, teens, young married couples, mature adults, elderly citizens and so on.

Age Segmentation is the most basic variable of them all, albeit the most
important because consumer preferences continually change with age. Almost all

marketing campaigns target age-specific audiences.

This variable can be viewed regarding specific age ranges or life cycle stages: babies,
children, adolescents, adults, middle-age, and seniors. For example, many famous

fashion designers have different collections to target different age groups. They aim
certain clothing lines at specific age ranges, such as a chic fashion line at younger

prospects, and a more formal and elegant line at older individuals.

Projected Demand Analysis

Percentage of those Total Population who Estimated # of projected

Total Actual
Area covered who are willing are willing to avail kls minimum demand
Population (a)
(b) (axb) per week (d) (inkilo)

Brgy. Humabon 523 82% 429 3 1287

Brgy. Sikatuna 670 82% 549 3 1648
Brgy. Tandang Sora 1706 82% 1399 3 4197
Total 2899 2377 7132
Figure 10 Projected Demand Analysis

Projected Supply Analysis

Estimated
Estimated No.ofloads Load Loading
Working Capacity Per Workin
CycleTime allowedper Capacity Capacity Per
Services Hours Load g days
per load day perday week
per day (b)X 4 (d)
(hour) (a) (axb=c) (cxd=e)Kilo
machines
Machine 8 hours 2 hours 4 30 kg 120 kg 6 days 720
Wash
Hand Wash 3 hours 1 5 kg 5 kg 6 days 30

Total no. of Load 750

Figure 11 Projected Demand Analyris

Supply and Demand Analysis

Demand Supply Demand and Supply Gap

7132 750 6382

Figure 12 Supply and Demand Analysis

1. Demand Analysis (Fig.10), projected demand is the estimated kilo of clothes per
week that needs to be catered by our services.

2. Supply analysis (Fig.11), Loading Capacity per week is the normal operating
capacity that the Laundry shop can cater.

3. As seen in Fig.12, there will be a gap of 6382 (7132-750) kilos that will never be
 catered. Hence which is a good thing, since the demand for our services is higher
than what we can give. Therefore, the threats of competitors to rise up in the same

area (sharing of market) won’t materially affect our sales projection.

5C’s

Company

Collaborators Context Customer

Competitors

Figure 13 5C’s

1. Customer – Determine what are the needs of customers and from which clients
that you’re trying to satisfy. A few areas of research can be market segments,
frequency of purchases, quantity of purchases, retail channel, and customer needs

depending on trends over time.

2. Company – Determine if your company is in a position to meet those customer

needs. For example, whether your company has the right product line and
technical expertise. A good tool to find out your company’s strengths and
weaknesses is “SWOT” analysis.

SWOT Analysis
 Strengths

 Highly-efficient machines

 Pick-up and Drop Service

 Faster laundry service: within 1 hour

 Affordability

 Convenience: free Wi-Fi connection and television

 Assurance: customers can supervise their own laundry

 Assistance: Staff are readily available to assist customers

 Low operating cost Weaknesses

 New in the market

 Highly-depreciable machines.

 Lack of separation between ownership and management

 Opportunities

 The continuous promotion of the tourism industry of Atimonan is perceived to

induce the growth of the hospitality industry. There is a possibility of resorts,

hotels, bed and breakfasts, lodges, and so forth of outsourcing laundry services.

 There is a constant, consistent market demand because doing laundry is part of

every person’s life.

 There is demand in the area covered.

 No competitors for coin-operated laundry service.

 New in the market and a unique kind of service.

 Advanced technology needed for coin-operated washing machines are readily

available from our supplier.

 Unpredictability of the weather that can directly affect the households.

 Threats

 Volatility in prices of liquefied petroleum gas (LPG).

 Well-established traditional laundry shops.

3. Competition – Determine who competes with your company in meeting

the customer’s needs. Is the competitor an active competitor or is it a

potential threat? What are their products exactly? What are their strengths
and weaknesses?

4. Collaborators – Determine if there is any outside source or third party

help that can help the company such as distributors, suppliers etc.

5. Context – Determine if there are any limitations due to

 Political issues: legal problems, trade regulations, taxes or labor laws

 Economic issues: growth rate, labor costs, and business cycle stage
 Social impacts: demographics, education, and culture

 Technological developments: impact on cost structures

This is also known as “PEST” analysis.

7P’s

1. Product

7. People 2. Prices

Target
6. Market 3.
Positioning Promotion

5.
4. Place
Packaging
 Figure 14 7P’s

1. Product - To begin with, develop the habit of looking at your product as

though you were an outside marketing consultant brought in to help your

company decide whether or not it’s in the right business at this time. Ask
critical questions such as, “Is your current product or service, or mix of

products and services, appropriate and suitable for the market and the
customers of today?

2. Prices - The Second P in the formula is price. Develop the habit of continually
examining and reexamining the prices of the products and services you sell

to make sure they’re still appropriate to the realities of the current market.
Sometimes you need to lower your prices. At other times, it may be

appropriate to raise your prices. Many companies have found that the
profitability of certain products or services doesn’t justify the amount of

effort and resources that go into producing them. By raising their prices,
they may lose a percentage of their customers, but the remaining

percentage generates a profit on every sale. Could this be appropriate for

you?

3. Promotion- The third habit in marketing and sales is to think in terms of

promotion all the time. Promotion includes all the ways you tell your
customers about your products or services and how you then market and

sell to them.

Small changes in the way you promote and sell your products can lead to
dramatic changes in your results. Even small changes in your advertising can

lead immediately to higher sales. Experienced copywriters can often increase

the response rate from advertising by 500 percent by simply changing the

headline on an advertisement.
4. Place- The Fourth P in the marketing mix is the place where your product or

service is actually sold. Develop the habit of reviewing and reflecting upon
the exact location where the customer meets the salesperson. Sometimes a

change in place can lead to a rapid increase in sales.

5. Packaging- The fifth element in the marketing mix is the packaging. Develop
the habit of standing back and looking at every visual element in the

packaging of your product or service through the eyes of a critical prospect.

Remember, people form their first impression about you within the first 30

seconds of seeing you or some element of your company. Small

improvements in the packaging or external appearance of your product or

service can often lead to completely different reactions from your customers.

6. Positioning- The Next P is positioning. You should develop the habit of

thinking continually about how you are positioned in the hearts and minds

of your customers. How do people think and talk about you when you’re not
present? How do people think and talk about your company? What

positioning do you have in your market, in terms of the specific words people
use when they describe you and your offerings to others?

7. People- The Final P of the marketing mix is people. Develop the habit of
thinking in terms of the people inside and outside of your business who are

responsible for every element of your sales and marketing strategy and
activities.

It’s amazing how many entrepreneurs and businesspeople will work

extremely hard to think through every element of the marketing strategy and

the marketing mix, and then pay little attention to the fact that every single
decision and policy has to be carried out by a specific person, in a specific

way. Your ability to select, recruit, hire and retain the proper people, with the

skills and abilities to do the job you need to have done, is more important
than everything else put together.
Competitor Analyris

We have gathered data of the list of the Laundry Shops registred as of

June 2019 in San Fernando, Pampanga City. Below are the lists:

1. Everything Clean Laundry Services (170 Tagumpay St.)

2. Spin City Laundry Shop (Mac Arthur Highway)

3. Sinukwan Laundry Shop (Barangay Dolores)

4. Sindalan Laundry Zone (MMM Bldg.)

5. Clean Way Laundry Shop (VMHC Bldg.)

6. E3R’s Laundry Express

7. Express Wash Laundry & Dry Clean (Genesis Building)

8. Angeles Laundry Express (MacArthur Highway)

9. Laba Kadabra
10. Happy Cleanser Laundry

11. Lunandry Laundry

Figure 15 Competitors

Among those shops listed above, highlighted is the nearest competitor

which is 500 meters and 568.48 meters away from the area where the target
market resides. The following competitors are not within our covered area from

mention barangays.

Marketing Program

Promotional Budget
We This refers to raising customer awareness of the services and
creating services loyalty.
1. Leaflets and flyers – will be distributed upon the opening of the shop so that

the market will be able to be informed that it is already available.

The leaflets and flyers will be personally done by the owner of the shop which

has a budgeted amount of P 3,000.00

Leaflets will include the following information:

Services offered
Price list

Company address and contact number

Business hours

Business slogan

Figure 16 Flyer Layout & Tarpauling

2. Tarpauling- to be placed in front of the shop. The cost would be P 2,500.00. It

will include the following information:

Business name, address and contact number
Business logo
Business hours

Business slogan
3. Membership offering that will give customer discounts - to maintain the loyalty
of the customer we will offer membership and there will be corresponding

points to reach so they can avail the discount.

Figure 17 Discount Voucher

To avail the discount Points
Laundry Requirement 30 kls/mo. 40 kls/mo. 50kls/mo
Discount 3% 4% 5%
Figure 17 Membership Points

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

5. Pick Up and drop service – to increase more of the willingness of the customer
to avail of the laundry service, we will offer pick up and drop service as it shows

also in the survey that 45% would like to have this kind of extra service for the
convenience of the customer.

Figure 18 Pick-up & Drop Survey

Operational Budget

An operating budget is management’s plan for generating revenue

and incurring expenses over the time of the budget. Operating budgets are
usually in effect for a fiscal year, but they are subject to alterations if
anticipated revenues or costs change markedly from what was projected.

The space will undergo some sort of renovation just to maximize the space
intended for the business since the space is not that large enough to settle all the

equipment or other furniture. The rent will be 2 months’ deposit and one-month
advance total 30,000.00 on first month and cost 10,000.00 pesos on a monthly

basis onward provided by a lease contract for minimum of 1 year and renewable.
Below shows the innovation cost for the space rented.
Estimated
Description of Jobs
Cost
Fabrication and Installation of the
following:
Cabinets 5,500.00
Counter tables 6,100.00
Divisions 5,200.00
Ironing Board 4,000.00
Total Cost for Furnitures and Fixtures
20,800.00
Leasehold Improvements
Electrical works for the lights and connections to the machines
including 3,000.00
the materials and labor
Painting including materials and
3,500.00
labor
Plumbing works for the installation of water connections to the
machines and drainage system (septic tank) 12,000.00

Total For Leasehold Improvements 18,500.00

Figure 19 Operational Budget

Estimated Selling Price

The following are the list of the services to be offered based on the needs

of the market:
1. Wash-Dry-Press

2. Wash-Dry-Fold
3. Hand washing
 Figure 20 Service to avail

Thrice a week

Figure 21 Often doing Laundry

Wash Wash Dry Handwashing Special Items
Dry Press (Per kilo) (Per kilo)
Fold (Per Kilo)
(Per
Kilo)
P 23.00 P 65.00 Wash-Dry-fold P 60.00 Jeans/Maong - P 30 Bed
Sheet/Towel - P 45 Comforter - P 65
Minimu Without Wash-Dry-Press P 65.00
m of 3 hanger P 65
kg

Figure 22 Prices
How much the market is willing to spend for laundry service?
 Figure 23 Wash Dry-Fold
On the survey provided, 83% will go for cost of 23.00/min.3kls and
only 17% will go for cost of 25.00/min.3kls.

Figure 24 Wash Dry-Press

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

Figure 25 Bring to Laundry Shop

 Figure 26 Kilos per Laundry

Based on this survey 38% of the market says yes that they bring their
clothes to the laundry shop, while the remaining 62% says no. Therefore, out of

the 38% that says yes, 8% of them only bring 2 kilos and below, 21% brings 3
kilos, 34% brings 4 kilos and the remaining 37% brings 5 kilos and above.

Estimated Selling Price

Estimated Kg. of Total Sales No. of Weeks in Total Sales in
Rate per Kg.
Laundry per Week per Week a Year Year 1
Wash-Dry-Fold 300 ₱23.00 6,900.00 52 ₱358,800.00
Wash-Dry-Press (with 72 70 5,040.00 52 262,080.00
hanger)
Wash-Dry-Press (w/o hanger) 73 65 4,745.00 52 246,740.00
Hand Washing (Wash-Dry- 25 60 1,500.00 52 78,000.00
Fold)
Hand Washing (Wash-Dry- 25 65 1,625.00 52 84,500.00
Press)
Special Items
Jeans/Maong 85 30 2,550.00 52 132,600.00
Bed Sheet/Towel 85 45 3,825.00 52 198,900.00
Comforter 85 65 5,525.00 52 287,300.00
TOTAL REVENUE 750 ₱1,648,920.00

Figure 27 Estimated Selling Price

 Chapter IV

TECHNICAL STUDY

This chapter provides information that includes the structures and the

floor plan, grand opening, operating procedures/processes that are essential to

the overall operation of the business, proposed equipment, machineries and

supplies together with their descriptions and specifications.

Gantt Chart

Activities J J A S O N D J
Conduct of project feasibility study and projection of
financial statements
Planning and budgeting
Capital investing and financing
Filing of legal requirements (Business registration,
permit, license, and etc.)
Location searching and space improvements
Acquiring and installing of laundry equipment and
purchase of supplies
Advertising and promoting
Hiring of personnel
Beginning of operation

Figure 28 Gantt Chart

Serving the Business

Grand Opening & Ribbon Cutting

The partners will coordinate with a local event coordinator to organize the launching
of the business. This is one of the most effective ways in attracting customers and making

them aware that we’re “Open”. The expenses for the grand opening will be shouldered by

the owner itself.

Services

The Clean Capsule Laundry Shop’s opening will be on _______ There are Exciting

freebies await their customers valid only on the day of opening, there will be also some

exciting promo/discount for the first 30 Person who attends the opening like Wash &

Dry for as low as 30.00Pesos/Kg, first come First serve Basis!

Quality Service

The Clean Capsule Laundry Shop will be offering Quality Services for the Laundry of

the customers, here are the list of services offered:

1. Wash-Dry-Press

2. Wash-Dry-Fold

3. Hand Washing

And also Clean Capsule Laundry Shop is also offering Services Such as “Pick-up and Drop”

for only 5.00 Pesos, Membership to maintain the loyalty of the customer, there will be

corresponding points to reach for them to avail the said discount promo.

Process Service
 Figure 29 Process Service

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

below:
1. Tagging - the clothes are firstly tagged with a specific number, mentioned

in the invoice given to customers. This procedure is used for identification

of clothes once ready for collection for customers.

2. Sorting - After tagging the clothes are arranged in different sets. Some
people will sort by color. Other sort by fabric type.

3. Pre-treatment of clothes – soaking in hot water.

4. Washing - The clothes are washed in washing machine using detergent

washing powder and or bleach on white.

5. Drying -The clothes washed are transferred to dryers.

(Note: one of the machine are automatic dry)

6. Packing - Once pressed, the clothes are properly hanged and covered in

the plastic wrap and then tagged so that it can be easily identified.

Characteristic and Service Description

Receiving and Tagging

1. Note the time that the items received.

2. Check the item against the laundry list.

Make sure the item received matched the item listed on the laundry list.
3. Tag each laundry items.
4. Check for damage and lost and found items.
5. Fill out in the separate logbook for lost and found items.

Record the time, date, name, description of the item

 6. Place the item in a plastic bag and surrender it to the supervisor.
7. Record the laundry items according to company procedures.

Record the date, name of customer, time received, name of the attendant,
signature and remarks.

8. Sort each item according to weight and color (heavy, white, colored and
damaged)

Put damaged item to separate basket

9. Prioritize express items.

Wash Dry Fold per 10 Kilo Wash Load

 Thin Garments including clothing, bed sheets, curtains, and towels

1. 30 minutes washing time

2. 4 scoops of detergent soap and 1 cup of fabric softener

3. 25 to 30 minutes drying time

4. Quality checking of clothes

5. Approximately 30 mins for folding

 Thick Garments such as blankets and comforters

1. 30 minutes washing time

2. 4 scoops of detergent soap and 1 cup of fabric softener

3. 30 minutes drying time

4. Quality checking of clothes

5. Approximately 1 hour for folding

 Pressing Service

1. Inspection of clothes for pressing if the fabric allows pressing and

specific temperature requirements

2. Segregation of clothes according to size and temperature requirement

for pressing.
 3. Pressing of clothes requiring high temperature and folding.
4. Pressing of clothes requiring medium to low heat temperature and

folding.
5. Segregation of clothes according to tag, identifications and tagging for

pick up

 Hand Washing Process

1. Clothes are inspected for washing requirement symbol.

2. Clothes are initially soaked and rinse in lukewarm water to loosen up

the fabric for easy cleaning.

3. Clothes are soaked in lukewarm water with detergent for about 8

minutes
4. Clothes are hand washed with bar soap and bleach (if needed)

5. Clothes are soaked and rinse in cold water for rinsing twice
6. On the third rinsing procedure, rinsing procedure, clothes would be

soaked and rinse in cold water with fabric conditioner

7. Clothes are to be tumble dried in minimum time according to fabric

requirement
8. Clothes are segregated and folded according to tag identification

9. Clothes are bagged for pick up

Removing Stain
1. Prepare the necessary materials.

(gloves, cotton cloth, stain remover, laundry basket)

2. Lay the cotton cloth on your work area - cotton cloth absorbs the stain

while it is being removed.

3. Turn the garments to its wrong side.

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

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

6. Apply stain remover and gently scrub the area. Apply more stain remover
 as necessary for stubborn stains; soak the garments for 5-15 mins.
7. Check if the stain has been removed.

8. Place the garment in a basket for laundry.

Notes:

First come first serve basis for laundry service. If in case customer will
request for quick delivery additional charge of P 5.00.

Floor Plan

Figure 30 Floor Plan

Floor Plan Layout
 Figure 31 Floor Plan Layout

Cost of Service

Costing Per 10kg Process

FOR WASHING MACHINE PROCESS ( WDF8kg,WDP 2kg)*a TOTAL COST Wash-dry-fold Wash-dry-press
Direct Material 8kg 2kg
Detergent (250grams)*b Php 16.25 Php 13.00 Php 3.25
Fabric Softener (1 cup)*c Php 11.88 Php 9.50 Php 2.38
Fabric Freshener (1 cup)*d Php 15.63 Php 12.50 Php 3.13
Liquid Bleach( 1 cup)*e Php 5.13 Php 4.10 Php 1.03
Water (522L)*g Php 4.86 Php 2.54 Php 2.03 Php 0.51
Total Direct Material Cost Php 48.88 Php 39.10 Php 9.78
DM Cost per Unit*f Php 4.89 Php 4.89
Direct Labor
Wash-dry-fold DL allocation *h Php 76.57 Php 76.57
Wash-dry-press DL allocation*h Php 89.33 Php 89.33
Total Direct Labor Cost Php 165.9 Php 76.57 Php 89.33
0
DL Cost per Unit*i Php 9.57 Php 11.17

Overhead-Electricity Consumption Rate

Machine Washing(30min)
Machine 1 (.600kwh)*j Php 7.9734 Php 2.39 Php 1.91 Php 0.48
Machine 2 (.600kwh)*j Php 7.9734 Php 2.39 Php 1.91 Php 0.48
Tumble Dryer(30 min)
Dryer1 (4.46kwh)*k Php 7.9734 Php 17.78 Php 14.22 Php 3.56
Dryer2 (4.46kwh)*k Php 7.9734 Php 17.78 Php 14.22 Php 3.56
Pressing (15 min)
Flat Iron (1.258kwh)*l Php 7.9734 Php 2.51 Php 2.51
Total Overhead Cost Php 40.35 Php 32.28 Php 10.58
Overhead Cost per unit Php 4.03 Php 1.32

Total Cost of Process Php 255.1 Php 147.95 Php 109.68

2
Total Cost per Unit Php 18.49 Php 54.84
Figure 32 Cost of Service

Costing
HANDWASHING Total Cost

Direct Material
Detergent (125grams)*m 8.13
Fabric Softener (1/2cup)*n 5.94
Fabric Freshener (1/2 cup)*o 7.81
Liquid Bleach( 1/2cup)*p 2.56
Water 4.86 1.90
(391.5L)*q
Total Direct Material 26.34
DM Cost per Unit*r 5.27

Direct Labor
Handwash- 252.24
dry-fold *s
total Direct Labor 252.24
Direct Labor unit cost 50.45

Overhead
Tumble Dryer(15 min)
Dryer1 (4.46kwh)*t 7.9734 8.89
Total Overhead 8.89
 Cost per unit 1.78

Total Handwashing Cost 287.47

Total Cost per unit 57.49

Figure 33 Costing

Operational Equipments
Electrolux EWT904 - 9kg Top Load Supplier:
Washing Machine with T-
Drive Washing Technology Price: Electrolux
22,395.00 located
a
Quantity: 2 t the Robinsons
Life Expectancy: 5 years Body Type: Appliances
Top-load washer Total Capacity
Washing Capacity: 9kg
Number of Wash Cycles: 11 Spin
Speed: 850 rpm Dimensions: 67 x
107 x 68 cm
Drum and Interior Finish: Stainless
steel
Eco-friendly Certification(s) 3
ticks(WELS)
Eco-friendly Feature(s): Load Selector
- Low -
Middle - High, Deep / Eco Rinse
Material(s): Zinc-coated Body
Screen Technology LED light
Indicator and time display, Electronic
Control Wash Cycle Modes:
Regular
Wash, Fast Wash, Colour, Delicates,
Heavy Soil, Woollens
Control Panel Programmes in
single knob control Timers: Soak and
delay end function
Dispensers: Detergent, Bleach
dispenser drawer Center Fabric
Softener
Holder
Health Features: T-DRIVE
washing technology: 35% cleaner
washing performance: Anti-residue
system
Water Efficiency: 3 ticks(WELS)
Water consumption: 8.80 L /kg
Regular wash
Noise Reduction: Stabilised Belt-driven
System Indicators: LED Remaining
Time Display
Languages Supported (OSD/Menu)
English Quick
Menu Options Soaking Function-
45,30,15 min Rinse Function - Extra,
Deep,Eco,Fast
Power Supply: 220-240 V/50 Hz
Warranty: 2 years warranty
WM-2011/007953

7kg Sensor Dry Dryer

with Iron Aid - EDS7051
Price: 18,995.00
Quantity: 2
Life Expectancy: 5 years Body Type:
Front-load Dryer Total Capacity Drying
Capacity: 7kg
Number of Wash Cycles: 6 Spin Speed:
No Stackable: Yes
Dimensions: 600 x 845 x 620 Drum and
Interior Finish: Stainless Steel
Energy Consumption: Drying Per Cycle:
4.46 kWh
Eco-friendly
Certification(s):ENERGY EFFICIENCY
(MELS) - 1 ticks
Eco-friendly Feature(s):
Auto Sensing, Iron-aid function,
Reverse Tumbling Technology
Material(s): Galvanised Zinc-
coated Body
Screen Technology: LCD light
Indicator and Electronic Control
Wash Cycle Modes:
Normal/Delicate/Airing/90mi
n/60min/30min
Height with Lid Open:Electronic
Control Panel
Timers: 3/6/9 hours Safety
Features : Safety Cut-off, Door
lock Indicators: Drying / Airing /
End
Languages Supported (OSD/Menu):
English Power
Supply: 220-240 V/50 Hz
Packaging Weight: 32kg
Included Accessories:
Venting kit
Warranty: 2 years warranty
4 CYLINDER 5 SPEED SUZUKI VAN TYPE WITH AIRCON - Used
Php 95,000.00
Life Expectancy: 5 years

Water Tank
Storage in case there will be water
disruption.

Php 10,000.00

2in1,blower and suction- 1/2hp, 200watts,20" x 20"

Exhaust Fan Php 6,000.00

1 pc. Of 120kls. Weighing Scale

Php 3,500.00

1 pc. Of Calculator

Php 200.00
Water Hose 50ft

Php 1,500.00

2 pcs. Of Steam Flat Iron

Php 1,095.00 each

1 set of Dataworx Budget Computer

Package (Black)

Php 11,879.50

1 pc. of Plastic Container (for filtration process)

Php 739.75
 1 sq.meter of Black Shade Cloth Php 100.00

Laundry Cleaning Products

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

laundry process.
Name of the Supplier PowerClean Chemicals
Branch KM 5 Buhangin Highway Corner
Pag-asa St. Davao City
Access Order Online
Website http://www.powerclean.com.ph/
Alternative Supplier Villa Fidelina
Address Ochoa Ave.cor.Lauraville
Subd.,Brgy.Limaha, Butuan City
Access Direct Buying
Figure 34 Laundry Cleaning Supplier

Supreme Power Detergent

Description:
High Density Power Detergent with supreme
performance, 100% biodegradable active, anti-
bacterial and optical brightener, no odor soaking,
and no chalk. Ideal for Handwash and machine
wash.
12 Sacks – 25 kg each Life Expectancy : 1
year
Price: P 19,500.00 @ 1,625 per sack
Fabric Softener
Description:
A concentrated liquid fabric softener that soften and
leaves a fresh scent on fabrics, soluble in cold and
hot water. With various scents suited to different
personalities.
40 Gallons
Life Expectancy : 1 year Price : P 7,600.00 @
190 per gallon

Liquid Bleach
Description:
Mild, safe chlorine bleach for all purpose cleaning
and disinfection. Contains sodium hypochlorite and
releases 5-7 % available chlorine that will react with
your fabric stain.
Effective at low temperature,
fast action and removes stubborn stain.
40 Gallons
Life Expectancy : 1 year Price : P 3,280.00 @ 82 per
gallon
Paint, Oil and Grease Remover
Description:
Is a fast acting liquid spot cleaner especially
formulated to remove paint, oil and grease on
fabric and other surfaces without affecting color
and quality. This can also remove unwanted
bubble gum on hard surfaces.
10 gallons
Life Expectancy : 1 year Price : P 5,000.00 @ 500
per gallon

Fabric Freshener
Description:
Is a water based scent especially formulated to
eliminate undesirable odors and enhance the
freshness of newly washed clothes. It comes in
pleasant smelling dawny, comfort fashion and
lavender scent
40 Gallons
Life Expectancy : 1 year
Price : P 10,000.00 @ 250 per gallon
 Liquid Detergent
Description:
A concentrated liquid solution which has mild
surfactant system effective for color fast

Supplies

2 pairs of Rubber Gloves Life

Expectancy : 1 year Php

199.00 @ 99.50 each

10 pcs. Of Laundry Basket

Life Expectancy:1 year Php

2,000.00 @ 200 each

3 pcs. Of Dipper

Life Expectancy:1 year

Php 90.00 @ 30.00 each

144 pcs x 10. Plastic Hangers Life

Expectancy: 1 yr

Php 4,000.00 @ 400.00 for 144

Face Mask Ear

Loop (50 pcs/box)

Disposable

item Php 100.00

Big Plastic Basin - 5

Life Expectancy: 1 yr

Php 2,250.00 @ 450.00 each

50 rolls of Tagging
Paper Roll

Life Expectancy: 1 year Php

9,000.00 @ 180.00 each

Ball Pens

Life Expectancy:1 year Php

60.00 @ 5.00 each

40 pcs. Of Scotch Tape Life

Expectancy: 1 year Php 500.00
@12.50each

Record Book- 300 Pages Life

Expectancy: 1 year Php 100.00

10 pcs. For 500 sheets

of Order Slip

Life Expectancy: 1 year Php

1,687.50 @337.50 each
 10 pcs. For 500 sheets
of Delivery Slip

Life Expectancy: 1 year Php

2,600.00

Plastics Units Sando Units

Bags
16x24 200 pcs. 310.00 Large 100 pcs. 140.00
20x30 100 pcs. 165.00 Extra 100 pcs. 185.00
Large
20x40 100 pcs. 285.00 Jumbo 100 pcs. 330.00
24x36 100 pcs. 390.00
24x60 100 pcs. 620.00
1 year 1,770*2 3,540.00 655*2 1,310.00

Projected Expenses

Projected Expenses
Machines
9kg Top Load Washing Machine with T-Drive
89,580.00
Washing Technology
7kg Sensor Dry Dryer with Iron Aid 75,980.00
165,560.00
Equipments
Water Tank 10,000.00
Exhaust fan 6,000.00
Weighing Scale 3,500.00
Steam Flat Iron 1,095.00
Computer Set 11,879.50 32,474.50
Vehicle
Multicab 150,000.00
Leasehold Improvements 11,500.00
Furnitures and Fixtures 18,500.00
Advertising Expenses
Leaflets and flyers 3,000.00
Tarpaulin 2,500.00 5,500.00
Supplies, etc.
Gloves 199.00
Laundry Basket 2,000.00
Dipper 90.00
Hangers 4,000.00
Face Mask 100.00
Plastic Basin 2,250.00
Tagging paper 9,000.00
 Ballpens 60.00
Scotch tape 500.00
Record Book 150.00
Calculator 200.00
Water Hose 1,500.00
Fire Extinguisher 1,600.00
Order Slip 1,687.50
Delivery Slip 2,600.00
Plastic Bag 3,540.00
1 sq.meter of Black Shade Cloth 100.00
Plastic Container (for filtration process) 739.75
Sando Bags 1,310.00 31,626.25
Cleaning Products
Detergents 19,500.00
Fabric Softener 7,600.00
Fabric Freshener 10,000.00
Liquid Bleach 3,280.00
Paint Oil and Grease Remover 5,000.00 45,380.00
Duties and Licenses 5,842.00
Rent 2 months advance 1 month deposit 30,000.00
TOTAL 496,382.75

Figure 34 Projected Expenses

Depreciation Facilities Management
Cost/Equipmen Total
Quantity t/Furniture Acquisition Scrap Est. Useful Life Annual Dep'n
Cost Value
9kg Top Load Washing
Machine with T- 4 22,395.00 89,580.00 8,958.00 10 8,062.20
Drive Washing
Technology
7kg Sensor Dry Dryer 4 18,995.00 75,980.00 7,598.00 10 6,838.20
with Iron Aid
Steam Flat Iron 1 1,095.00 1,095.00 109.50 2 492.75
Direct Equipment - 15,393.15
Overhead
Multicab 1 150,000.00 150,000.00 15,000.00 5 27,000.00
Water Tank 1 10,000.00 10,000.00 1,000.00 5 1,800.00
Computer Package 1 11,879.50 11,879.50 1,187.95 5 2,138.31
Weighing Scale 1 3,500.00 3,500.00 350.00 2 1,575.00
Exhaust Fan 1 6,000.00 6,000.00 600.00 2 2,700.00
Total Depreciation 348,034.50 35,213.31
Equipments

Furnitures and Fixtures 18,500.00 18,500.00 5 3,700.00

Leasehold 11,500.00 11,500.00 5 2,300.00
Improvements
TOTAL 378,034.50 56,606.46

Figure 35 Depreciation Facilities

DEPRECIATION ASSUMPTION:

For the simplicity of computations, the straight-line method of depreciation was use.
The useful life of the laundry machines, furniture and fixtures and leasehold
improvements is estimated at 10 years and the useful life of the indirect equipment
such as the exhaust fan and weighing scale is 8 years and 7 years, respectively.
Waste Disposal System

Filtration Process will be used

Step 1:

The higher hole was inserted on

the side of the washing waste
pipe, and the lower hole is for the
pipe to the canal.

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
 Chapter V

FINANCIAL FEASIBILITY

The purpose of this is to provide proof on the financial feasibility of the Clean

Capsule Pick-up and Drop Laundry Shop. This will focus on the assessment of the

projected starting capital investments, expenses, revenues, disbursements and returns.

The results in this aspect will be most relevant to investors who are planning to venture

into the laundry industry.

Considerations

1. The owner shall invest P 500,000.00 in the business as shown in the next page,

which approximates the total pre- operating expenses.

2. A service rendered is on cash basis.

3. The equipment and leasehold improvements are to be depreciated on a

straight-line basis.
4. For simplicity, all employees are presumed to be single and that they have no
dependents for purposes of computing the withholding tax.

5. Income tax is computed using the tabular tax rate for individuals provided by
the National Internal Revenue Code.

6. There are no other current liabilities aside from the employee benefits and

income tax since the entity pays its obligations before the end of the year.
7. Owner/Manager will withdraw instead of salary.

Summary of Assumptions

A. GENERAL ASSUMPTIONS
 The Demand and Supply Analysis showed that 62% is the excess in demand over the

supply and it will be the market share basis for the purpose of this study.

Every household will do their laundry once every week in one cycle.

The maximum capacity of the machines acquired is 10 kilos per cycle. The survey result

shows that majority of the household has an average of 9 kilos of laundry per week

which is within the capacity of the machines. The survey result also shows that most of

the household owners do their laundry once every week.

Ending inventory shall be equal to 50% of the required average monthly supplies

of the following year.

B. Projected Comparative Balance Sheet

Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
Current Assets
Cash 660,841.65 884,816.46 982,166.09 970,134.35 623,783.09
Supplies Inventories 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04
Total Current Assets 663,110.65 887,312.36 984,911.58 973,154.39 627,105.13

Non Current Assets

Equipments 348,034.50 348,034.50 348,034.50 348,034.50 348,034.50
Less: Accumulated Depreciation 50,606.46 101,212.92 151,819.38 202,425.84 253,032.30
Leasehold Improvements 11,500.00 11,500.00 11,500.00 11,500.00 11,500.00
Less: Accumulated Depreciation 2,300.00 4,600.00 6,900.00 9,200.00 11,500.00
Furnitures and Fixtures 18,500.00 18,500.00 18,500.00 18,500.00 18,500.00
Less: Accumulated Depreciation 3,700.00 7,400.00 11,100.00 14,800.00 18,500.00
Total Non Current Assets PHP 321,428.04 PHP 264,821.58 PHP 208,215.12 PHP 151,608.66 PHP 95,002.20

Total assets PHP 984,538.69 PHP 1,152,133.94 PHP 1,193,126.70 PHP 1,124,763.05 PHP 722,107.33

LIABILITIES & OWNER'S EQUITY

Current Liabilities
Due to SSS 4,680.00 4,680.00 4,680.00 4,680.00 4,680.00
Due to Philhealth 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Due to PAG-IBIG 1,672.32 1,672.32 1,672.32 1,672.32 1,672.32
 Income Tax Payable 178,435.64 232,529.88 286,127.25 345,084.35 410,577.16
Total Current Liabilities PHP 185,987.96 PHP 240,082.20 PHP 293,679.57 PHP 352,636.67 PHP 418,129.48
Non Current Liabilities
Loan Payable 0.00 0.00 0.00 0.00 0.00
Total Liabilities PHP 185,987.96 PHP 240,082.20 PHP 293,679.57 PHP 352,636.67 PHP 418,129.48
Owner's Equity
Capital 798,550.73 912,051.73 899,447.14 772,126.38 303,977.85

Total Liabilities and Owner's Equity PHP 984,538.69 PHP 1,152,133.94 PHP 1,193,126.70 PHP 1,124,763.05 PHP 722,107.33

Figure 36 Projected Five Year Comparative Balance

Sheet

C. Projected Comparative Income Statement

Yea Yea Yea Yea Yea

r1 r2 r3 r4 r5
Service Revenues PHP 1,648,920.00 PHP 1,813,812.00 PHP 1,995,193.20 PHP 2,194,712.52 PHP 2,414,183.77
Less: Discounts 49,467.60 54,414.36 59,855.80 65,841.38 72,425.51
Net Service Revenue PHP 1,599,452.40 PHP 1,759,397.64 PHP 1,935,337.40 PHP 2,128,871.14 PHP 2,341,758.26
Less: Cost of Services 392,968.15 399,548.25 404,517.36 409,983.38 415,996.00
Gross Profit PHP 1,206,484.25 PHP 1,359,849.39 PHP 1,530,820.04 PHP 1,718,887.76 PHP 1,925,762.25
Less: Expenses
Salaries & Wages 167,232.00 167,232.00 167,232.00 167,232.00 167,232.00
Depreciation - Equipment 35,213.31 35,213.31 35,213.31 35,213.31 35,213.31
Depreciation - Leasehold 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00
improvements
Depreciation - Furnitures and 3,700.00 3,700.00 3,700.00 3,700.00 3,700.00
Fixtures
Rent 140,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Supplies 31,626.25 34,788.88 38,267.76 42,094.54 46,303.99
Advertising 5,500.00 3,000.00 3,000.00 3,000.00 1,000.00
SSS contribution 37,850.40 37,850.40 37,850.40 37,850.40 37,850.40
PhilHealth Contribution 7,200.00 7,200.00 7,200.00 7,200.00 7,200.00
PAG-IBIG Contribution 10,033.92 10,033.92 10,033.92 10,033.92 10,033.92
Duties and Licenses 5,842.00 2,500.00 2,500.00 2,500.00 2,500.00
Utilities 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00
Repairs and Maintenance 5,000.00 12,000.00 12,000.00 12,000.00 12,000.00
Total General and Administrative Exp 489,497.88 473,818.51 477,297.39 481,124.17 483,333.62
Income Before Tax PHP 716,986.37 PHP 886,030.89 PHP 1,053,522.65 PHP 1,237,763.59 PHP 1,442,428.63
Income Tax (Tabular) PHP 178,435.64 232,529.88 286,127.25 345,084.35 410,577.16
Income After Tax PHP 538,550.73 PHP 653,501.00 PHP 767,395.40 PHP 892,679.24 PHP 1,031,851.47
 Figure 37 Projected Five Year Comparative Income
Statement

D. Projected Cost of Services Provided

Year 1 Year 2 Year 3 Year 4 Year 5
Inventory, Jan 0 2,269.00 2,495.90 2,745.49 3,020.04
Purchases 45,380.00 49,918.00 54,909.80 60,400.78 66,440.86
Freight-in 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04
Total Purchases 47,649.00 52,413.90 57,655.29 63,420.82 69,762.90
Purchase Discounts 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04
Net Purchases 45,380.00 49,918.00 54,909.80 60,400.78 66,440.86
Cost of Inventoy Available for Use 45,380.00 52,187.00 57,405.70 63,146.27 69,460.90
Less: Inventory, Dec 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04
Cost of Inventoy Used 43,111.00 49,691.10 54,660.21 60,126.23 66,138.85
Salaries of Direct Workers 334,464.00 334,464.00 334,464.00 334,464.00 334,464.00
Total Depreciation of Direct Equipment 15,393.15 15,393.15 15,393.15 15,393.15 15,393.15

TOTAL COST OF 392,968.15 399,548.25 404,517.36 409,983.38 415,996.00

SERVICES

Figure 38 Projected Cost of Services Provided

Due to the nature of the business which is self-service or coin-operated, there will be

no Direct Materials and Direct Labor in the Cost of Services, only the Overhead
expenses will be included.

The consumption rate of the laundry machines used in the computation of the
Utilities Expenses such as electricity, water and gas was obtained from the feasibility

study of LG Electronics, Inc. which is the brand owner of the laundry machines used.

The price rate used per Utilities Expense was set at the maximum to address further
fluctuations in prices.

E. Projected Breakdown of Utilities (in direct)

Breakdown of Utilities (Indirect)

Description Consumption per day (Php) In One Year Total
1. Gasoline 100 312 31,200.00
2. Telephone 0.191362 312 59.70
3. Electricity 3.18936 312 995.08
4. Water 0.486 312 151.63
5. Computer 10.04648 312 3,134.50
35,540.92

Figure 39 Projected Breakdown of Utilities (in direct)

F. PROJECTED STATEMENT OF CASHFLOW

PROJECTED STATEMENT OF
CASH FLOWS
Year 1 Ye Ye Ye Ye
ar ar ar ar
2 3 4 5
Cash Provided/Used by Operating Activities
Cash Receipts from Sales & Services PHP PHP 1,759,397.64 PHP 1,935,337.40 PHP 2,128,871.14 PHP 2,341,758.26
1,599,452.40
Purchase of Inventory 45,380.00 49,918.00 54,909.80 60,400.78 66,440.86
Payment of Advertising Fee 5,500.00 3,000.00 3,000.00 3,000.00 1,000.00
Payment of Utilities Expense 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00
Payment of supplies 31,626.25 34,788.88 38,267.76 42,094.54 46,303.99
Payment of Rent 140,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Payment of Repairs and Maintenance 5,000.00 12,000.00 12,000.00 12,000.00 12,000.00
Payment of Employee Salaries / Wages 466,152.48 466,152.48 466,152.48 466,152.48 466,152.48
SSS, Philhealth & PAG-IBIG Premium (ER&EE share) 83,075.52 90,627.84 90,627.84 90,627.84 90,627.84
Payment of Duties and Licences 5,842.00 2,500.00 2,500.00 2,500.00 2,500.00
Remittance of Withholding Tax - - - - -
Payment of Income Tax 0.00 178,435.64 232,529.88 286,127.25 345,084.35
Net Cash Provided by Operating Activities 778,876.15 763,974.81 877,349.64 1,007,968.26 1,153,648.74

Cash Provided/Used from Investing Activities

Payment to acquire equipment 366,534.50 0.00 0.00 0.00 0.00
Payment for leasehold improvements 11,500.00 0.00 0.00 0.00 0.00
Net Cash Used in Investing Activities 378,034.50 0.00 0.00 0.00 0.00

Cash Provided from Financing Activities

Cash received as investment by owner 500,000.00 0.00 0.00 0.00 0.00
Payment for withdrawals by owner 240,000.00 540,000.00 780,000.00 1,020,000.00 1,500,000.00
Net Cash Provided by Financing Activities 260,000.00 -540,000.00 -780,000.00 -1,020,000.00 -1,500,000.00

Net Cash Inflow (Outflow) 660,841.65 223,974.81 97,349.64 -12,031.74 -346,351.26

Add: Beginning Cash Balance - PHP 660,841.65 884,816.46 982,166.09 970,134.35
Ending Cash Balance PHP 660,841.65 PHP 884,816.46 PHP 982,166.09 PHP 970,134.35 PHP 623,783.09

Figure 40 PROJECTED STATEMENT CASHFLOW

G. PROJECTED STATEMENT OF CHANGES IN OWNER’S EQUITY

 YEAR
1 2 3 4 5
A, Capital A, Capital A, Capital A, Capital A, Capital
Beginning Balance PHP 0.00 PHP 798,550.73 PHP 912,051.73 PHP 899,447.14 PHP 772,126.38
Add: Investment 500,000.00 0.00 0.00 0.00 0.00
Net Income 538,550.73 653,501.00 767,395.40 892,679.24 1,031,851.47
Total PHP 1,038,550.73 PHP 1,452,051.73 PHP 1,679,447.14 PHP 1,792,126.38 PHP 1,803,977.85
Less: Withdrawals 240,000.00 540,000.00 780,000.00 1,020,000.00 1,500,000.00
Ending Capital PHP 798,550.73 PHP 912,051.73 PHP 899,447.14 PHP 772,126.38 PHP 303,977.85
Balance

Figure 41 PROJECTED STATEMENT OF CHANGES IN OWNER’S EQUITY

H. PROJECTED RETURN OF INVESTMENT

Return On Investment
Year 1 Year 2 Year 3 Yea Year
r4 5
Net Income 538,550.73 653,501.00 767,395.40 892,679.24 1,031,851.47
Divided by: Average 984,538.69 1,068,336.31 1,172,630.32 1,158,944.88 923,435.19
Investment
ROI Percentage 0.547 0.612 0.654 0.770 1.117
Figure 42 PROJECTED RETURN OF INVESTMENT
H. PROJECTED PAYBACK PERIOD

Payback Period (Uneven Cash Flows)

Net Operating Cash Cummulative Cash
Year Flows Flows
1 778,876.15 778,876.15
2 763,974.81 1,542,850.96
3 877,349.64 2,420,200.59
4 1,007,968.26 3,428,168.85
5 1,153,648.74 4,581,817.59

500,000.00
Computation: 0.67
In 8 months
Figure 43 PROJECTED PAYBACK PERIOD

Chapter VI
SOCIO ECONOMIC-STUDY AND
ENVIRONMENTAL IMPACT

This chapter in general provides information about the socio

economic study of the business as well as its environmental impact.
This will tackle the benefits that can be rendered to the customers,
the owners and the staff and how to keep the environment safe from
the chemicals that are main components of the laundry business.

Socio-Economic

The proposed laundry business, “Clean Capsule” will bring

satisfaction to customers, who are looking for a laundry shop that
will cater good services of cleaning their clothes at a reasonable
price. The business will help the customers or individuals to maximize
their time for other work and serve comfort to the customers.

Contribution to the Economy

The proposed business will benefit the economy through

providing employment to every individual especially within the
resident covered by the study. This will give the hired employees and
their families their source of income for their living needs. This
business will support local workers. It will also promote the business
and also contribute to the competition which will lower the price of
the product but will maintain the quality of the products.
Environmental Impact

Environmental impact of cleaning agents is the

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

Laundry business like Clean Capsule perhaps gives an impact to our

environment. The machines that we used emit greenhouse gasses
(CO2) that add effect to what we are experiencing nowadays, the
"global warming".

Another thing is the used of detergents and bleaches in washing

garments. Although the place is not near the river in which fishes
could die, detergents may still affect our environment. Like lots of
fillers used in powder detergents are poured in drains causing
wastage of useful products like common salt / washing soda and
choking of drain / sewerage system. Components of detergents like
sodium sulphate can wreak havoc on septic system. Synthetic
detergents and our laundry practices are contributing to our ground
level water pollution.

The laundry business is aware of its harm to the environment from

the chemical substance that will be used as stated above. Since the
proposed business have to make sure that it will not cause any harm
to the people and environment as well, it has to make sure to treat
every water it throws.
The water treatment will use filtration system for removal of
contaminants by chemical and physical bonding. The proposed
business will make this process cost friendly and more effective.

Chapter VII
CONCLUSION AND RECOMMENDATION

The market study determined the demand for service

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

https://www.citylab.com/life/2014/06/why-were-stuck-with-coin-op- laundromats/373177/

https://laundrylux.com/coin-laundry-equipment/electrolux-coin-laundry/dryers/
http://www.coinlaundry.org/investor-resources/gettingstarted

http://www.bigwashlaundry.com/

http://www.laundrybusinessph.com/lg/?contact-form-id=285&contact-form-
sent=431&contact-form-
hash=08b1ec877c279dbf95dc17264a88881fa8178f6c&_wpnonce=d608feaa96# contact-
form-285

http://www.business-plan.co.za/laundry_business_plan/1_contents.html

http://www.full-suite.com/blog/7-steps-getting-mayors-permit/

http://seeknomore.blogspot.com/2008/10/coin-operated-laundry-shop- business.html

https://americancoinop.com/articles/2016-2017-state-self-service-laundry- industry-
part-1

http://www.dexter.com/support/knowledge-base/successful-laundromat-
promotional-ideas-/

http://www.sec.gov.ph/services-2/company-2/registration/primary- registration/
 QUESTIONARE SURVEY SAMPLE

Name: (Optional)
Sex
Male
Female

Occupation
Student
Employee
Household owner
Others, specify

Direction: Please check (/) based on your preference in the following questions:
1. What is your age range?
15-22
22-29
29-36
36-43
43-50
50+
2. How much allowance for laundry do you have for a week?
P25-50
P50-100
P100-150
P150-200
P200+
3. How do you usually wash your clothes?
By hand
By washer
By laundry women (Labandera)
By laundry shop
4. If you are availing services from a laundry shop, please specify its name
5. How often do you wash and dry your clothes?
Once a week
Twice a week
Thrice a week
More than 3 times a week
Once every 2 weeks
Once every 3 weeks
6. How many loads of laundry do you have per week?
1-3 kilograms
4-6 kilograms
7-9 kilograms
9+ kilograms
 Appendix D

7. Have you heard about a Pick-up and Drop Laundry Shop?

No
Yes, but not used yet
Yes and already used
8. Is the idea of a Pick-up and Drop Laundry Shop acceptable for you?
Yes (Answer no. 9 and 10)
No,
Why
9. If yes, what factors do you consider in accepting a Pick-up and Drop Laundry
Shop? (You may choose more than 1 answer)
Cost of laundry
Quality of the laundry
Quickness
Efficiency
Prestige
Credibility
Able to maximize the detergent customer’s wishes to put
More convenience
Assurance that your laundry will not be lost
Satisfy their laundry perception
Others, please specify
10. If yes, what services are you going to avail in theClean CapsulePick-up and Drop
Laundry Shop?
Wash only
Wash and Dry
Dry only