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D2D LAUNRY SERVICES: BUBBLEWRAP

Batangas State University Main Campus I, College of Accountancy, Business Economics and
International Hospitality Management

I. EXECUTIVE SUMMARY Cleaning equipment will be leased with the


accompanying maintenance contracts. Strat-up
D2D Laundry services: Bubblewrap is a start-up financing will be through owner investment and
enterprise to be stablished in Batangas City. This bank loans.
business will provide dry cleaning, laundry, and
garment alterations, offered with regular home The proposed legal form of business is a Partnership
pick-up and delivery services. D2D Laundry of Jonnel Aivan Tisbe and Joshua Dinglasan. The
services: Bubblewrap will have a production facility partners will share to profit and losses of the
but will not need a retail shop because of our pick – business according to their contribution. This is a
up and delivery service. However, we will need a small business and need not publicly disclose its
delivery vans, and customer service trained drivers. finances. The partners will be the director and will
initially handle the bookkeeping responsibilities
Customer can pay upon pick – up of their laundries and the other management will be supported by
or at the time of each delivery. hired employee.

The business provides a new door-to-door dry VISSION


cleaning, laundry, and alteration services around
Batangas City that will surely attract customers To become one of the most popular laundry services
attention. Working customers may find this service in the country that gives solutions by providing high
is convenient for them and want to try it. If they are quality of service to the customers.
satisfied with the service quality, they will likely
become repeat customers. When the patronage MISSION
happens continuously, they become loyal customers
of the service. These customers will recommend We will offer dry cleaning, laundry, and clothing
D2D Laundry services: Bubblewrap to their friends alteration services with free home pick-up and
and coworkers. As more and more customers use delivery. Our high quality and convenience will
this service, D2D Laundry services: Bubblewrap’s save time for students working customers.
image is enhanced, and we will gain more and more
market share. OBJECTIVES

In Providing laundry and clothing alteration


Gross Margin services for customers in the Batangas City area,
D2D Laundry services: Bubblewrap aims to:

 Establish sustainable business by the end of year


2019
 Have first year total sales in excess of the initial
capital
 Producing profits
Year 1 Year 2 Year 3 Year 4  Establish high quality service and gain loyal
customers.
Figure 1. Estimated Gross Margin
KEYS TO SUCCESS
II. BUSINESS DESCRIPTION D2D Laundry services: Bubblewrap’ key to success
are the following.
D2D Laundry services: Bubblewrap is a
1. The business is entering the first year of
start-up enterprise to be stablished in Batangas City.
operation, therefore, a comprehensive marketing
This business will provide dry cleaning, laundry,
strategy will be the key to success of the
and garment alterations, offered with regular home
business.
pick-up and delivery services.
2. It is important to remember that the target
customer have money and want to be provided
high quality service, therefore, they will only use Construction. In Batangas City, some popular
this service if they are entirely satisfied. employers include B/E Aerospace Corporation,
3. Furthermore, the hours of operation must be SunPower Corporation, and Nestle Philippines
convenient and service completion must be
The increasing standard of living of the people in
timely in order that the customers are not harried
Batangas City which in turn leaves them having less
after a long day working.
time to do their housework (including laundry).
They are often tired after the whole day of working
START-UP SUMMARY
and tend to spend money to hire someone else to do
the housework for them. Moreover, the demand on
Startup expenses funded through a combination of
clothes of these working people (particularly
owners’ equity capital and a bank loan.
professionals) usually increases proportionately
with their income. Buying more clothes makes them
Capital plan. The partners will invest Php 700,00
pay more attention to the care and cleaning of those
each with a total start-up capital of Php 1,400,000.
garments.
Additional capital for the business in the amount of
Php 500,000 will be borrowed form bank. One of the key factors in choosing a personal
service, such as laundry and dry cleaning, is not
Loan. Lending plan has to be completed and price but the convenience of the service. People tend
submitted to the bank 6 months before the starting to choose services based on how much time and
the business. Loan will be needed two months in effort the service will save them, although there are
advance. Annual interest of 10% to be paid on the several conventional drop-ff dry cleaning/laundry
long-term loans secured with fixed asset. service providers in the area, D2D Laundry
services: Bubblewrap will primarily market its
convenient pick-up/delivery service to those busy
START-UP SUMMARFY
individuals who are willing to appreciate such
3,000,000 service, as it saves them time for other endeavours.
2,500,000
2,000,000 MARKETING STRATEGY.
1,500,000
1,000,000
500,000 Place. Dealing directly with customers,
0 conveniently in the customers' houses in Batangas
City. BubbleWrap Laundry Services will receive
clothes from and return them to customers' houses.
Requests for urgent situation pickups and deliveries
will be accommodated, and a nominal fee charged.
Figure 2. Start-up summary
Product. Free home pickup and delivery service,
coming to customers' houses between 7 am - 8 pm
III. MARKET STRATEGIES three times per week. We provide convenience
and high-quality dry cleaning, laundry, and
Laundries and Dry Cleaners rated in the top 10 alteration services.
enterprise with the lowest failure rate.
http://www.mindspring.com/~jimgirone/cleanpage/ Price. Normally, new businesses set their
initial prices lower than their competitors. In
desire.html
our situation however, the business has higher
costs for our delivery service and promotions to
 Payment for the service is by cash
increase customers' awareness and establish
 No capital stagnancy, receive payment every pick our brand name. We will set our prices to match
or delivery, easy to get instant profit those of our competitors. The pricing scheme is
 This service only requires a few staff based on a per service price. Moreover, the business
 The demand for using service is increasing due to targets working and professional customers who
often pay less attention to price than the quality and
changing lifestyle, incomes, and the increase in
convenience of service. Kelvin Clancy (in Kotler,
clothing expenditures. 2003) shows that only between 15 and 35 percent of
buyers are price sensitive. People with higher
Employees in Batangas City make an average salary incomes are willing to pay more for features,
of PHP 219,826. Popular jobs in Batangas City customer service, quality, and convenience.
include Registered Nurse (RN), Customer Service
Representative (CSR), and Process Engineer which Promotion.
pay between PHP 122,890 and PHP 342,000 per
year. Some popular Batangas City industries  Offer 10% discount as an incentive for customers
include Manufacturing, Education, and who sign one-year contracts.
 Issue coupons with lower price for loyal
customers. Company Logo

SALES STRATEGY

We will start off my matching our main competitor's


prices and we will be closely monitoring our
financials to make sure that we develop a
sustainable business without heavily discounting
our services to win customers. All sales inquiries
will be initially handled by the business owner. We
You leave it! We Clean it!
will also train all our employees, especially those
facing the customers, in customer service to make
sure that our customers are fully satisfied, as such Figure 5.1 Company Logo
customers will not only stay longer with us but will
also refer other customers to us. We will offer
limited discounts to our customers with large Space Lay out
recurring orders and also provide incentives for new
customer referrals.

IV. COMPETITIVE ANALYSIS

STRENGTHS

 We offer relatively new, door-to-door service for


dry cleaning, and laundry, providing another
choice for customer.
 We provide quick and convenient service in order
to save customer’s time.

WEAKNESSES

 Competition from already established


competitors in Batangas City area.
 Less experience than competitor. Figure 5.2 Space Lay out

OPPORTUNITIES
Floor Plan
 Expenditures on clothing in increasing, including
expensive clothes; therefore, the demand for
taking care of clothes also increases.
 There are more and more women – who
traditionally have done the laundry and cleaning
work in the family – going to work outside the
home. The target market of this business id=s
working class and professional class customer,
both men and women.
 Average income of Batangas City citizens is
increasing
 People tend to spend more of their time on leisure
activities rather than doing house work.
Figure 5.3 Floor plan
THREATS

 If the business is successful, there will be new


competitor who supply the same kind of service.
 New technology changes may bring out new
family washing machines for dry cleaning.

V. DESIGN AND DEVELOPMENT PLAN


Operating Procedure

Figure 10: Location of the BubbleWrap Laundry


Services

Story Board

figure 5.4 Operating Procedure

The above chart shows the laundry process. Each


process is explained as below:

Tagging. the clothes are firstly tagged with a


specific number, mentioned in the invoice given to
customers. This procedure is used for identification
of clothes once ready for collection for customers

Sorting. After tagging the clothes are arranged in


different sets. Some people will sort by color. Other
sort by fabric type.

Pre-treatment of clothes. Soaking in hot water

Washing. The clothes are washed in washing


machine using detergent washing powder and or
bleach on white.

Drying. The clothes washed are transferred to


dryers. (Note: one of the machines are automatic
dry)

Packing. Once pressed, the clothes are properly


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

Location of the Company


The location of our company is located at
Kumintang Ibaba, Batangas City, 4200 Batangas.
We choose this place as the location of our business
because we can see that this place is the best to start
our business.
2in1, blower and
1 Exhaust suction- 1/2hp, Php 6,000
Fan 200watts,20" x
20"
1pc 120kls. Php 3,500
Weighing Weighing Scale
Scale
2 Calculator 1pc Php 400
50ft Water 50 ft Php 1,500
Hose
2pcs Steam 2pc Php 2,800
Flat Iron
2pcs Plastic For filtration Php 750
container process
Repair and Maintenance of Php 50,000
Maintenance machineries
TOTAL Php 940,530
VI. OPERATIONS AND MANAGEMENT Table 7.1 Cost of Materials for Operational
PLAN Equipment.

The owner of the business will be director and Laundry Cleaning Products
accountant, working full time. Five laundry experts
will be employed and will be in charge of the We choose to have a one supplier for our supplies
operation and the quality of garment cleaning. Two to be use for the laundry process.
part-time drivers for picking up and delivering Name of the Supplier PowerClean
clothes. And a Bookkeeper who is responsible for Chemicals
recording of all transactions of the business. KM 5 Buhangin
Address Highway Corner Pag-
The Staff should be able to carry out working asa St. Davao City
conditions and requirements: Access Order online
Alternative Supplier Villa Fidelina
 Understand and apply dry cleaning and Ochoa
washing processes Address Ave.cor.Lauraville
Subd., Brgy.Limaha,
 Meet set standards by following instructions Butuan City
Access Order online
 Work in hot, humid surroundings
 Perform the same work continuously ITEM DESCRIPTION AMOUNT
1-year Life
 Overtime may be required during peak Supreme expectancy. 12
seasons such as spring and autumn. Detergent sacks – 25kg Php 19,500
Powder each. Php
1,625/sack
VI. FINANCIAL FACTORS
Fabric 1-year Life
Annual Projection
Softener expectancy. 80 Php 15,200
gallons – Php
Operational equipment.
190/gal.
Liquid 1-year Life
ITEM DESCRIPTION AMOUNT
Bleach expectancy. 80 Php 6,560
4 Washing Electrolux Php 89,600
gallons – Php
Machines EWT904 - 9kg
82/gal
4 Dryers 7kg Sensor Dry
Paint, Oil 1-year Life
Dryer with Iron Php 75,980
and Grease expectancy. 10 Php 5,000
Aid - EDS7051
remover gallons – Php
1 Service L300 Isuzu Van Php 700,000 500/gal
vehicle
Fabric 1-year Life
Water Tank Storage in case Freshener expectancy. 40 Php 10,000
there will be Php 10,000 gallons – Php
water disruption 250/gal
TOTAL Php 56,260 Ironing 3 pcs ironing Php 2,100
Table 7.2 Estimated Cost of Landry Cleaning Board board
Products for one-year operation. Computer 1 set of
Package Dataworx
Supplies Budget Php 11,890
Computer
ITEM DESCRIPTION AMOUNT Package
Rubber 1-year Life TOTAL Php 42,090
Gloves expectancy. 6 Php 600 Table 7.3 Estimated Cost of Laundry Supplies for
pairs – Php one-year operation.
100/each
Laundry 1-year Life Cost of Labour
Basket expectancy. 10 Php 2,000
pieces – Php PERSONEL SALARY AMOUNT
200/each 5 Laundry Php 6,000/mo. Php 30,000
Dipper 1-year Life Expert
expectancy. 4 Php 120 2 Drivers Php 6,000/mo. Php 12,000
pieces – Php 1 Bookkeeper Php 7,000/mo Php 7,000
30/each TOTAL Php 44,000
Big Plastic 1-year Life TOTAL (annually) Php 528,000
Basin expectancy. Table 7.4 Cost of Labour
5pieces – Php Php 2,250
450/each
Tagging 1-year Life Utility Expense ( Estimated Annully).
Paper Roll expectancy. 50 Php 9,000
rolls – Php UTILITY AMOUNT
180/each
Water Expenses Php 96,000
Ball pen 1-year Life
expectancy. 5 Php 100 Electric Expenses Php 72,000
pieces – Php
20/each Gas Expenses Php 60,000
Scotch Tape 1-year Life
expectancy. 40 Php 500 TOTAL Php 228,000
pieces – Php
12.50/each Table 7.5 Utility Expenses
Record 1-year Life
Cash Inflows and Outflows
Book (300 expectancy. Php 100
pages) CASH INFLOWS
1-year Life
Order Slip expectancy. Php 1,680 SOURCES AMOUNT
10pcs for 500
sheets Capital Contribution Php 1,400,000
Delivery 1-year Life
Slip expectancy. Php 2,600 Bank Loans Php 500,000
10pcs for 500
Total Php 1,900,000
sheets
Plastics and Large, Extra CASH OUTFLOWS
Sando Bags Large, Jumbo
1-year life Php 4,850 SOURCES AMOUNT
expectancy –
1,250 pieces per Operational Equipment Php 940,530
size
Plastic 1-year Life Laundry Cleaning Product Php 56,260
Hangers expectancy. Php 4,000
Supplies Php 42,090
144pcs x 10 –
Php 400 Labour Cost Php 528,000
Face Mask 50pcs/box – Php Php 300
Ear loop 100/box Utility Expenses Php 228,000
Total Php 1,794,880 REFERENCES

(Cash Inflows less Cash Outflows) https://www.amazon.in/Magna-Homewares-


Sigma-Premium-Ironing/dp/B01MQMEA67
Remaining Capital Php 105,120
https://smallbusiess.chron.com/open-laundry-
Table 7.6 Cash Inflows and Cash Outflows. business-2468.htl
The remaining capital will serve as contingency
http://energyusecalculator.com/electricity_clothes
budget and will be use for the unexpected future washer.htm?
expenses.
https://iprice.ph/appliances/laundry-machines/
Annual Income Projection

estimate Total
No. https://www.alibaba.com/premium/laundromat_wa
Rate of Total shing_machine_price.html?src=sem_ggl&mark=sh
d Kg. Sales
per week Sales in a
Laundry
Kg.
per
s in a year opping&cmpgn=1625368543&adgrp=6224239053
per week Week
year 9&fditm=&tgt=kwd-
Wash-dry- Php Php Php 355956725725&locintrst=&locphyscl=9067133&
300 52
fold 23 6,900 358,800
Wash-dry-
mtchtyp=b&ntwrk=g&device=c&dvcmdl=&creati
Press (with 72 70 5,040 52 262,080 ve=310820376917&plcmnt=&plcmntcat=&p1=&p
hanger) 2=&aceid=&position=1t4&gclid=Cj0KCQiAurjgB
Wash-dry-
Press
RCqARIsAD09sg9c8pg5TyvS2-tS5z-
73 65 4,745 52 246,740 JDiyOzoPBhPAcEnv7yhkLCSijNN0d_x7eUOMa
(without
hanger) As-jEALw_wcB
Hand
Washing
25 60 1,500 52 78,000
(Was-dry-
fold) ACKNOWLEDGEMENT
Hand
Washing
25 65 1,625 52 84,500
(Was-dry- We would like to give our deepest gratitude to
press)
SPECIAL ITEM
Ma’am Geraldine Aclan for giving us the
Jeans/Maon opportunity to make a business plan and for
85 30 2,550 52 132,600
g guiding and full support for our ideal business.
Bed
Sheet/Towe 85 45 3,825 52 198,900 She inspired us greatly to work in this project.
l Her willingness to motivate us contributed
Comforter 85 65 5,525 52 287,300 tremendously to our project. We also would
Php like to thank her for showing us some example
TOTAL 750 1,648,920
that related to the topic of our project.
Table 7.7 Income Projection for the first year of operation of the
business.
Finally, an honourable mention goes to our
families and friends for their understandings
and supports on us in completing this project.
Without helps of the particular that mentioned
above, we would face many difficulties while
doing this.

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