Sei sulla pagina 1di 56

Feasibility Study

“Clean Capsule Laundry Shop”

Prepared by:

Clean Capsule Laundry Shop | All Rights Reserved. 2


TABLE OF CONTENTS

I. Introduction
a) Rationale 1
b) Business Description 1
c) Business Name 2
d) Business Location 2
e) Service Description 2
II. Marketing Aspect
a) Area Covered 4
b) Target Market 5
c) Competitors 7
d) Market Need 8
e) Demand Analysis 9
f) Supply Analysis 9
g) Laundry Services Offered 10
h) Prices 11
i) Income Projection 13
j) Advertising and Promotion 14
k) SWOT Analysis 15
III. Technical Aspect
a) Commercial Space for rent 17
b) Space Layout 18
c) Operating Procedure 20
d) Filtration Process 23
e) Operational Equipments 27
f) Laundry Cleaning Products 32
g) Supplies 35
h) Costing 39
IV. Management Aspect
a) Form of Ownership 40
b) Business Culture 43
c) Manpower Requirements 44
d) Organizational Structure 45
e) Job Description and Duties 45
f) Segregation of Duties 46
g) Management Style 47
h) Motivating & Rewarding Employees 49

Clean Capsule Laundry Shop | All Rights Reserved. 3


V. Financial Aspect
a) Considerations 50
b) Pre-Operating Expenses 51
c) Projected Balance Sheet 52
d) Projected Income Statement 53
e) Projected Statement of Cash Flows 55
f) Statements in Changes in Equity 56
g) Return on Investment 56
h) Payback Period 56
VI. Socio Economic Aspect
a) Contribution to the Economy 57
b) Contribution to the Government 57
c) Contribution to the Society 57
d) Environmental Impact 58
VII. Conclusion and Recommendation 59

Clean Capsule Laundry Shop | All Rights Reserved. 4


CHAPTER 1

INTRODUCTION

Rationale

The fast change of trend from individualized laundry to


commercial laundry services coincides with rapid technological
change as well as the fast, changing and modern lifestyle of
Filipinos.

Laundry business is an easy and convenient business to start.


Despite the constant need for clean clothes, many don’t have time
to handle this simple task. In fact, laundry is often rated as the
least favorable household chore. While running your own laundry
business does not require any specific qualifications or
experience, it’s a good idea when entering any business to have
experience in the industry. With this in mind, it may prove
valuable to take a job in a laundry facility, so you can learn
more about the trade and what customers want. Based on the survey
conducted the reasons why they go to the laundry shops instead of
doing it to their own are because of tight schedule especially
those students who have a lot of extracurricular activities in
school, others say they don’t like washing their clothes because
it is just a waste of time (laziness), and some boarding houses
didn’t allow washing clothes in consideration to the consumption
of water.

This is the reason why there is chance of making a lot of


money because this people will definitely seek your services.

Business Description

San Fernando Pampanga City as a highly urbanized city in the


Philippines emerged too many businesses nowadays. It can be seen
that numerous schools and establishment are spotted around the
area urging to look for convenience due to their busy time. And
this gives a positive outlook for some businessmen who were just
started in the industry to put their investment in certain
businesses particularly the Laundry business in which the field is
not that much penetrated.
Clean Capsule Laundry Shop | All Rights Reserved. 5
Business Name

The right name can make your company the talk of the town
especially when it is unique and probably would catch their
attention. Therefore, the proposed name of our business is “Clean
Capsule Laundry Shop” means we will wash your clothes and will
back to you all clean and ready for action.

Fig. 1 Business Logo

Business Location

The proposed business location is located at San Fernando,


Pampanga.

This location composes of school establishments; apartments


and boarding houses.

Service Description

The Business concept of CLEAN CAPSULE is typically homogeneous


to those other existing Laundry shops in the city. But certain
things will make it stand and that includes its quality services,
professionalism of its personnel towards its customers.

Clean Capsule Laundry Shop | All Rights Reserved. 6


Quality Services - The quality services really matters in CLEAN
CAPSULE Laundry. It is planned to provide services such as washing,
pressing, ironing and folding customer’s clothes and garments. It
will be using quality equipments and machineries that could greatly
help and make the business exist. It shall offer affordable
cleaning too, making sure that the output will reach its quality
standard

Professionalism towards customers - Personnel of the shop will


surely build professional customer relationship. Unlike the other
personnel/workers that may just think business is easy as doing
what is assigned to them and this normally getting payments from
customers after doing/giving what the latter wants. More than that,
it would be better to set your customers as part of the top
priority. In addition, the team will take care of each customer
item with great respect since personal things are engaged in the
business.

Clean Capsule Laundry Shop | All Rights Reserved. 7


Chapter II

MARKETING ASPECT

The marketing aspect will serve as the basis of the financial


section through the projected demand. This includes the area
covered, target market, proposed location, competitors, the demand
and supply, demand and supply gap analysis, marketing program and
SWOT analysis.

Area Covered

This is to identify a point or an area of study. Geographic


target is in 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 , and ; establishments;
apartments and boarding houses. Out from these components we will
determine the population of those living in apartments and boarding
houses where our target market is situated.
Fig. 2 Area covered Brgy.

Fig. 3 Area covered Brgy.

Clean Capsule Laundry Shop | All Rights Reserved. 8


Fig. 4 Area covered Brgy.

No. Apartments Total


and Boarding Population
Area Covered
houses (actual
data)
Brgy. 32 523
Brgy.
23
670
Brgy.
72
1,706
Total 127 2,899

Fig. 5 Actual Population

Notes:

1. The number of apartments and boarding houses were gathered


from the list of registered business establishments as of
June 2014 from City Hall San Fernando City.
2. The Population is based from actual data which is gathered by
the researchers while doing the survey and interview with the
Caretakers/Owners.

Target Market

Our target market will determine from those living in apartments


and boarding houses within the mentioned Barangays such as:

Clean Capsule Laundry Shop | All Rights Reserved. 9


1. Young professionals
2. Students
3. Family

This group of market will be described their need according to


their lifestyle considering a number of potential influences on
buying behavior including the attitudes, expectations and
activities of consumers.

In order to know the population demand for the proposed laundry


business for that area in San Fernando, Pampanga, 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.5) and the margin
of error would be 10%. Margin of error denotes the allowed
probability of committing an error in selecting a small
representative of the population.

N = n / (1 + ne^2) Therefore:

N = Number of samples N = 2899


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

Barangay Number of population Distribution Ratio total Respondents Distribution of respondents

brgy. 523 18.0% 97 17


Brgy. 670 23.1% 97 22
Brgy. 1706 58.8% 97 57
2899 100.0% 97

Fig. 6 Questionnaire Distributions

Notes:

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.

Clean Capsule Laundry Shop | All Rights Reserved. 10


21%

other

Fig. 7 Respondents Classification

Based on the survey, the graph shows that 78% are students,
21 % from working and others 1% coming from family section.

Competitors

We have gathered data of the list of the Laundry Shops


registered as of August 2019 in Sam fernando City. Below are the
lists:

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Clean Capsule Laundry Shop | All Rights Reserved. 11


Fig. 8 Competitors location

Notes:

 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 the mentioned barangays.

Market Need

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

 Quality of cleanliness
 Price
 Timeliness and customer service

Clean Capsule Laundry Shop | All Rights Reserved. 12


MARKET NEED

Quality of cleanliness
Price
Timeliness

Fig. 9. Market Need

Percentage of those Total Population who are Estimated # of kls projected


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

Brgy. 523 82% 429 3 1287


Brgy. 670 82% 549 3 1648
Brgy. 1706 82% 1399 3 4197
Total 2899 2377 7132

Fig. 10. Demand Analysis

Estimated
Estimated No. of loads Load Loading
Working Capacity Per Working
Cycle Time allowed per Capacity Capacity Per
Services Hours per Load days
per load day per day week
day (b)X 2 (d)
(hour) (a) (axb=c) (cxd=e)Kilo
machines
Machine Wash 8 hours 2 hours 4 30 kg 60 kg 6 days 360
Hand Wash 3 hours 1 5 kg 5 kg 6 days 30
Total No. of
390
Loads

Fig. 11. Supply Analysis

Demand Supply Demand and Supply Gap

7132 390 6742

Fig.12. Demand and Supply Gap Analysis

Clean Capsule Laundry Shop | All Rights Reserved. 13


Note:

1. Demand Analysis (Fig.10), projected demand is the estimated


kilo of clothes per week that needs to be catered by our
services.
2. Supply analysis (Fig.11), Loading Capacity per week is the
normal operating capacity that the Laundry shop can cater.
3. As seen in Fig.12, there will be a gap of 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.

Laundry Services Offered

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


on the needs of the market:

1. Wash-Dry-Press
2. Wash-Dry-Fold
3. Hand washing

Fig. 13 Services to avail

Clean Capsule Laundry Shop | All Rights Reserved. 14


Thrice a week

Fig. 14

Prices

Wash Dry Fold Wash Dry Press Handwashing Special Items


(Per Kilo) (Per Kilo) (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
Minimum of 3 kg Without hanger P 65 Wash-Dry-Press P 65.00 Comforter - P 65

Fig. 15 Prices

How much the market is willing to spend for laundry service?

Fig. 16 Wash-Dry-Fold

Clean Capsule Laundry Shop | All Rights Reserved. 15


Notes:

 On the survey provided, 83% will go for cost of


23.00/min.3kls and only 17% will go for cost of
25.00/min.3kls.

Fig. 17 Wash-Dry-Press

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

Clean Capsule Laundry Shop | All Rights Reserved. 16


Fig. 18

Fig. 19

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

Income Projection

SERVICE REVENUE PROJECTION

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 170 ₱23.00 3,910.00 52 ₱203,320.00
Wash-Dry-Press (with hanger) 37 70 2,590.00 52 134,680.00
Wash-Dry-Press (w/o hanger) 37 65 2,405.00 52 125,060.00
Hand Washing (Wash-Dry-Fold) 10 60 600.00 52 31,200.00
Hand Washing (Wash-Dry-Press) 10 65 650.00 52 33,800.00
Special Items
Jeans/Maong 42 30 1,260.00 52 65,520.00
Bed Sheet/Towel 42 45 1,890.00 52 98,280.00
Comforter 42 65 2,730.00 52 141,960.00
TOTAL REVENUE 390 ₱833,820.00

Clean Capsule Laundry Shop | All Rights Reserved. 17


Advertising and Promotion

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 2,500.00

Leaflets will include the following information:


- Services offered
- Price list
- Company address and contact number
- Business hours
- Business slogan
2. Tarpaulin – to be placed in front of the shop. The cost would
be P 1,500.00. It will include the following information:
- Business name, address and contact number
- Business logo
- Business hours
- Business slogan

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


4. 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.

Clean Capsule Laundry Shop | All Rights Reserved. 18


Fig. 20

SWOT ANALYSIS

I. Strengths

 Using machines with quality and brand


 High profitability because it is more accessible to
market
 Quality output and faster service
 The location is on the main city nearest to the
boarding houses, apartments and schools
 Location is just a walking distance
 Prices are relative, competitive and accords to what
the customers want
 Does not need a large amount of capital
 Promotion strategies – social networking sites is very
accessible as well
 Accessibility of the location

II. Weaknesses

 Lack of experience as this will be the first time to


conquer the market in the said location

Clean Capsule Laundry Shop | All Rights Reserved. 19


 As the machines with brand and quality is expensive,
maintenance will be quite expensive as well

III. Opportunities

 Continuous development of the city with having new


establishments for residential (apartments and
boarding houses)
 Students, working professionals having lack of time in
doing their own laundry
 Only two competitors nearest which is 500 meters and
568.48 meters away from location

IV. Threats

 Price variations
 Future competition

Clean Capsule Laundry Shop | All Rights Reserved. 20


Chapter III

TECHNICAL ASPECT

This chapter provides information that includes the


structures and the floor plan, operating procedures/processes that
are essential to the overall operation of the business, proposed
equipment, machineries and supplies together with their
descriptions and specifications.

Commercial Space for Rent


The space will undergo some sort of renovation just to
maximize the space intended for the business since the space is
not that large enough to settle all the equipments or other
furniture. The rent will be 2 months deposit and one month advance
total 122,500.00 on first month and cost 7,500.00 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.

ADVERTISING AND PROMOTION Estimated Cost


Description of Jobs
Fabrication And Installation of the ff:
Cabinets 5,500.00
Counter Tables 6,100.00
Divisions 5,200.00
Ironing Board 4,000.00
Total Cost of Fabrication & Installation 20,800.00
Leasehold Improvements
Electrical works for the lights and
connections to the machines including
the materials and labor 3,000.00
Painting Including materials and
labor 3,500.00
Plumbing works for the installation
connections to the machines and
drainage system (septic tank) 10,000.00
Total Cost of Leasehold Improvements 16,500.00
TOTAL PHP 37,300.00
Fig. 21

Clean Capsule Laundry Shop | All Rights Reserved. 21


Space Lay out

Laundry Room Receiving Area

Fig. 22

The floor plan was designed intended to facilitate the work


flow and show how the space looks like

Machines

Cavinets
Receiving Area

Clean Capsule Laundry Shop | All Rights Reserved. 22


Operating Procedure

Fig 24. Operating Procedure

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.

Clean Capsule Laundry Shop | All Rights Reserved. 23


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

Clean Capsule Laundry Shop | All Rights Reserved. 24


 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.

Clean Capsule Laundry Shop | All Rights Reserved. 25


5. Wear protective equipment - Gloves protect your hands from
harsh effect of chemicals.
6. Apply stain remover and gently scrub the area. Apply more
stain remover as necessary for stubborn stains; soak the
garments for 5-15 mins.
7. Check if the stain has been removed.
8. Place the garment in a basket for laundry.

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

Clean Capsule Laundry Shop | All Rights Reserved. 26


Operational Equipments

SAMSUNG 8.5kg AddWash™ Steam Supplier:


Front Load Washer - WW85K54E0UW
Bundle Promo Price: 34,995.00 Electrolux
Quantity: 2 located at
Life Expectancy: 5 years Body
any SM
AddWash™ Function1
Steam Cycles2 Appliance
BubbleWash and BubbleSoak 15 Center
Minute
Quick Wash3
Auto Load Sensor
Smart Check Simple
Troubleshooting4
Gentle Diamond Drum
Drum Clean
11 Year Parts Warranty on the
Digital Inverter Motor5
Pair with matching DV80M5010QW
dryer

Samsung Front Load Dryer 9 KG Supplier:


DV90M5200QW/TC
Heatpump Technology Optimal Dry Electrolux
2-in-1 Filter Quick Dry located at
Bundle Promo Price: 34,995.00
any SM
Quantity: 2
Pair with matching WW85K54E0UW Appliance
Washer Center

Clean Capsule Laundry Shop | All Rights Reserved. 27


Sidecar with BMX Bike - New
Php 8,500.00
Life Expectancy: 5 years

Asahi C-56 Ceiling Fan 56"

1,610.00

1 pc. Of 120kls. Weighing Scale

Php 3,500.00

1 pc. Of Calculator

Php 200.00

Clean Capsule Laundry Shop | All Rights Reserved. 28


Water Hose 50ft

Php 1,500.00

1 pc. Of Steam Flat Iron

Php 1,095.00 each

1 set of Dataworx Budget


Computer Package (Black)

Php 11,879.50

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
Clean Capsule Laundry Shop | All Rights Reserved. 29
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

Clean Capsule Laundry Shop | All Rights Reserved. 30


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.
5 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
20 Gallons
Life Expectancy : 1 year
Price : P 10,000.00 @ 250 per
gallon

Clean Capsule Laundry Shop | All Rights Reserved. 31


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

Clean Capsule Laundry Shop | All Rights Reserved. 32


144 pcs x 5. Plastic Hangers

Life Expectancy: 1 yr

Php 2,000.00 @ 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

25 rolls of Tagging Paper


Roll

Life Expectancy: 1 year

Php 4,500.00 @ 180.00 each

Clean Capsule Laundry Shop | All Rights Reserved. 33


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

Clean Capsule Laundry Shop. | All Rights Reserved. 38


Cost of Services
COSTING PER 10 k

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 165.90 Php 76.57 Php 89.33
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 255.12 Php 147.95 Php 109.68


Total Cost per Unit Php 18.49 Php 54.84
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 (391.5L)*q 4.86 1.90
Total Direct Material 26.34
DM Cost per Unit*r 5.27

Direct Labor
Handwash-dry-fold *s 252.24
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

Clean Capsule Laundry Shop. | All Rights Reserved. 39


CHAPTER IV

MANAGEMENT ASPECT

This chapter provides information about the management aspect


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

Form of Ownership

I. The business will be sole proprietorship.


- Manage
- Control
- Supervise
- Start Up cost

A sole proprietorship is chosen since it is one of


the least expensive business structures to begin. Only
one person owns a sole proprietorship business, the
legal requirements involve simply registering a
business name and obtaining any relevant licenses or
permits that relate to the specific type of business.

Many sole proprietorship businesses have very low


start-up costs as compared with other types of
business structures. The start-up investment
typically includes the basic costs for equipment,
marketing and office utilities. However, the amount
of the start-up costs may vary, depending on the
specific type of business.

Clean Capsule Laundry Shop. | All Rights Reserved. 40


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:
a. Barangay
b. Mayor’s Office
 Bureau of Internal Revenue

Basic requirements and procedure in registering a Sole


Proprietor Business

1. Register a business name at DTI


1) Come up with three business names
2) Search in the 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
2. Registration with Barangay
1) Go to the barangay where your business is
located to secure and fill-up application
form
2) Submit your completed application form
together with the following:
 Certificate of Business Registration
from DTI
 Two valid IDs
 Proof of Address such as Contract of
Lease

Clean Capsule Laundry Shop. | All Rights Reserved. 41


3) Claim Barangay Certificate of Business
Registration
3. Register your business in the Mayor’s Office
1) Go to the municipal office where your
business is located to secure and fill-up
application form
2) Submit your completed application form
together with the following
 Certificate of Business Registration
from DTI
 Barangay Clearance Certificate
 Two valid ID
 Proof of Address such as Contract of
Lease
4. Register in the Bureau of Internal Revenue (BIR)
1) Go to Regional District Office where your
business is located
2) Fill-up the BIR Form 1901- Application for
Registration (for Sole Proprietor)
3) Submit completed registration form together
with the following
 Certificate of Business Registration
from DTI
 Barangay Clearance Certificate
 Mayor’s Business Permit
 Proof of Address such as Contract of
Lease
 Valid ID
4) Pay the registration form (BIR form 0605)
5) Register your book of accounts and
receipts/invoices
6) Claim your Certificate of Registration (BIR
Form 2303
Amount of
Business Permit and Licenses
Registration
Registration with DTI 300.00
Registration with Barangay 200.00
Business Permit in Mayor's Office 5,500.00
Registration in BIR 500.00
Total 6,500.00

Clean Capsule Laundry Shop. | All Rights Reserved. 42


Business Culture

I. Operating hours from 9:00 am to 6:00 pm – Mondays to


Saturdays
Break time: 12:00 to 1:00 PM
II. Day to day monitoring

The Inspector will monitor the employees’ attitude and


performances, the laundry process, the consistency and on-
going coaching and giving instructions to them.

- Monitoring of sales
- Inventory
- Delivery and Pick-up

The pick-up and delivery will start at 9:00 am from Monday


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

III. Customer’s Account using Microsoft Excel

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.

Clean Capsule Laundry Shop. | All Rights Reserved. 43


Manpower requirements

I. Physical Requirements:

- Age must be 18-40 years old


- Workers without bending, crouching or walking restrictions.
- no skin allergies

II. Skills, Interests and Qualities

- Must be graduate of Housekeeping NC II


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

Clean Capsule Laundry Shop. | All Rights Reserved. 44


Job Description & Duties

I. Machine washers

Weigh laundry and place it in huge washing machines. Machine


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

II. Counter clerk

Received laundries from customers, give back clean laundry,


scheduling the date of pick-up and delivery with the
customers, and billing.

III. Bookkeeper

Analyzing and recording the transaction and presenting the


reports on time.

III. Markers or sorters tag

Mark the laundries so that they can be returned to the


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

Place it in extractors, which spin most of the water out of


it. The laundry then goes to tumbler operators who put it in
drying machines that tumble it dry. Some items, such as
blankets and rugs, may be hung in heated rooms to dry.

V. Inspector

Check the finished laundry. If it needs rewashing or


repressing, he sends it back to the proper department. He
sends some pieces to menders, who do repairs by hand or
machine. Assemblers collect all the items belonging to each
customer. Finally, baggers or bundle wrappers place the
laundry in bags or bundles and attach invoices, which indicate
how much money the customer owes.

Clean Capsule Laundry Shop. | All Rights Reserved. 45


VI. Finishers

Fold and press the clean, dry laundry. When requested, they
press. They also may just fold and stack. Other finishers
work on shirts, ruffled curtains, blankets, or other items
that require special pressing and finishing. To get
professional results, they use forms designed for certain
parts of clothing, such as shirt sleeves, shirt collars, or
the bodies of skirts. They also use hand irons to finish
certain items that cannot be done on the forms. The finished
items are then folded or placed on hangers.

VII. Route workers

Pick up laundries at customers' homes. Market new customers


along their routes. They also deliver clean laundry, giving
invoices and collect payments.

Segregation of Duties

I. Single Duty

• Route Worker

• Bookkeeper-Owner

II. Duties may be desegregated


• Counter Clerk and the Inspector

• Markers or sorters tag and Machine washers (could be


same person)

• Extractor operator and the Finisher(could be same


person)

Clean Capsule Laundry Shop. | All Rights Reserved. 46


Management Style

I. Hiring Process

The applicants are required to submit their resume on the position


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

II. Safe Working Environment

Safe working environment keeps the employees free from any hazards
and it complies with the law providing safeties especially to the
business operated. There are safety precautions that should be
apply, employees are segregated based on their assigned jobs. They
are required to wear gloves and mask during the laundry process to
avoid from skin irritations. They are allowed to wear comfortable
dress attire so that it would not be hard for them to move freely.
Personal hygiene is appropriate to avoid disease or any illness,
especially for chemicals that contains strong solution.

There is specific baggage area for the employees where they can
place their bags or things to it. Their things will be check by
the assigned personnel or the owner before and after working hours
to avoid thief or any misappropriation of assets.

III. Training

Training is essential for the success of a business. Laundry


business requires training for its employees, especially it is

Clean Capsule Laundry Shop. | All Rights Reserved. 47


in need of due care, as clothes one the basic needs of every
individual. Before being hired, employees will undergo some sort
of trainings for laundry process to evaluate if they have the
capabilities required for the position, and to ensure that they
will know how to properly do their jobs to give the customer the
satisfactions they are looking for. They will be evaluated as
necessary to test their working knowledge and improvements.

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


supplier of our laundry chemicals and they also offer laundry
seminar not only in Luzon but also to other regions in the
Philippines. We chose them because the lectures are based from
actual experience of running a laundry shop. They have wide
coverage of topics which covers the Business Management such as
Financial Aspect, Taxation, Marketing, Manpower, Machine and the
like. They provide continuous assistance, demo of laundry chemicals
and advice of laundry operations and management even after the
seminar. The speakers are experts in Laundry Business in which
they already trained more than 1,300 Laundry owners. Affordable
price of ₱1,500 each person for early registrants of laundry shop
session. They also continuously improve their training facility
with free wifi access.

The owner should understand his choice of employees and time


invested to train them results in a direct reflection in his
marketing efforts and money spent on those efforts. All of the
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.

Clean Capsule Laundry Shop. | All Rights Reserved. 48


Motivating & Rewarding Employees

1. Recognize and appreciate about the good things employees do.


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

Personnel No. Min.Wage/Day Working Days Net Monthly Pay

Inspector/Supervisor 1 268.00 26 6,474.34


Route Worker 1 268.00 26 6,474.34
Exctractor Operator 1 268.00 26 6,968.00
Machine Washers 1 268.00 26 6,968.00
TOTAL PER MONTH 37,440.00
TOTAL PER ANNUM 449,280.00

Clean Capsule Laundry Shop. | All Rights Reserved. 49


CHAPTER V

FINANCIAL ASPECT

The purpose of this chapter is to project how much startup


capital is needed, sources of capital, return on investments and
other financial considerations.

Considerations

1. The owner shall invest P 300,000.00 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. Owner/Manager will withdraw instead of rent.

Clean Capsule Laundry Shop. | All Rights Reserved. 50


Pre - Operating Expenses
Machines
SAMSUNG 8.5kg AddWash™ Steam Front
Load Washer - WW85K54E0UW 69,990.00
Washing Technology (34,995) 2unit
Samsung Front Load Dryer 9 KG (34,885)
69,990.00 139,980.00
DV90M5200QW/TC 2unit
Equipments
Exhaust fan 1,610.00
Weighing Scale 3,500.00
Steam Flat Iron 1,095.00
Computer Set 11,879.50 18,084.50
Vehicle
Sidecar w/ BMX Bike 8,500.00
Leasehold
16,500.00
Improvements
Furnitures and Fixtures 20,800.00
Advertising Expenses
Leaflets and flyers 2,500.00
Tarpaulin 1,500.00 4,000.00
Supplies, etc.
Gloves 199
Laundry Basket 2,000.00
Dipper 90
Hangers 4,000.00
Face Mask 100
Plastic Basin 2,250.00
Tagging paper 4,500.00
Ballpens 60
Scotch tape 500
Record Book 150
Calculator 200
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

Sando Bags 1,310.00 26,386.50


Cleaning Products for 6mos.
Detergents 19,500.00
Fabric Softener 7,600.00
Fabric Freshener 10,000.00
Liquid Bleach 3,280.00

Clean Capsule Laundry Shop. | All Rights Reserved. 51


Paint Oil and Grease Remover 5,000.00 45,380.00

Duties and Licenses 6,500.00

Rent 2 months advance 1 month deposit 22,500.00

TOTAL 308,631.00

Clean Capsule Laundry Shop. | All Rights Reserved. 52


Clean Capsule
PROJECTED FIVE YEAR 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

Clean Capsule Laundry Shop. | All Rights Reserved. 53


Clean Capsule
PROJECTED FIVE YEAR COMPARATIVE INCOME STATEMENT

Year 1 Year 2 Year 3 Year 4 Year 5

Service Revenues PHP 833,820.00 PHP 998,712.00 PHP 1,180,093.20 PHP 1,379,612.52 PHP 1,599,083.77
Less: Cost of Services 505,481.95 399,548.25 404,517.36 409,983.38 415,996.00
PHP PHP PHP PHP PHP
Gross Profit
328,338.05 599,163.75 775,575.84 969,629.14 1,183,087.77
Less: Expenses
Salaries & Wages 224,640.00 224,640.00 224,640.00 224,640.00 224,640.00
Depreciation -
4,767.81 4,767.81 4,767.81 4,767.81 4,767.81
Equipment
Depreciation -
Leasehold 3,300.00 3,300.00 3,300.00 3,300.00 3,300.00
improvements
Depreciation -
Furnitures and 4,160.00 4,160.00 4,160.00 4,160.00 4,160.00
Fixtures
Rent 105,000.00 90,000.00 90,000.00 90,000.00 90,000.00
Supplies 26,386.50 29,025.15 31,927.67 35,120.43 38,632.47
Advertising 4,000.00 2,000.00 2,000.00 2,000.00 1,000.00
Duties and Licenses 6,500.00 2,500.00 2,500.00 2,500.00 2,500.00
Utilities 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Repairs and
5,000.00 12,000.00 12,000.00 12,000.00 12,000.00
Maintenance
Total General and
393,754.31 473,818.51 477,297.39 481,124.17 483,333.62
Administrative Exp
Income Before Tax PHP 440,065.69 PHP 524,893.49 PHP 702,795.81 PHP 898,488.35 PHP 1,115,750.15
Income Tax (Tabular) PHP 106,895.72 PHP 128,034.88 PHP 151,287.95 PHP 176,866.33 PHP 205,002.54
PHP PHP PHP PHP PHP
Income After Tax
333,169.97 396,858.61 551,507.86 721,622.02 910,747.61

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
2,269.00 2,495.90 2,745.49 3,020.04 3,322.04
Discounts
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 66,138.86
Salaries of Direct Workers 449,280.00 449,280.00 449,280.00 449,280.00 449,280.00
Total Depreciation of Direct Equipment 13,090.95 13,090.95 13,090.95 13,090.95 13,090.95
TOTAL COST OF SERVICES 505,481.95 512,062.05 517,031.16 522,497.18 528,509.81

Clean Capsule Laundry Shop. | All Rights Reserved. 54


Breakdown of Utilities (Indirect)
Consumption In One
Description Total
per day (Php) Year
1. Telephone 0.191362 312 59.70
2. Electricity 3.18936 312 995.08
3. Water 0.486 312 151.63
4. Computer 10.04648 312 3134.50
4,340.92
Clean Capsule
Depreciation Table

Total
Quantity Cost/Equipment/Furniture Acquisition Scrap Value Est. Useful Life Annual Dep'n
Cost
8.5 Load Washing Machine 2 34,995.00 69,990.00 6,999.00 10 6,299.10

9kg Dryer 2 34,995.00 69,990.00 6,999.00 10 6,299.10

Steam Flat Iron 1 1,095.00 1,095.00 109.50 2 492.75

Direct Equipment - Overhead 13,090.95

Sidecar w/BMX Bike 1 8,500.00 8,500.00 850.00 5 1,275.00

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 2 630.00

Ceiling Fan 1 1,610.00 1,610.00 161.00 2 724.50


Total Depreciation
166,564.50 4,767.81
Equipments

Furnitures and Fixtures 20,800.00 20,800.00 5 4,160.00

Leasehold Improvements 16,500.00 16,500.00 5 3,300.00

TOTAL 203,864.50 25,318.76

Clean Capsule Laundry Shop. | All Rights Reserved. 55


PROJECTED STATEMENT OF CASH FLOWS

Year 1 Year 2 Year 3 Year 4 Year 5


Cash Provided/Used by Operating
Activities
Cash Receipts from Sales &
PHP 833,820.00 PHP 998,712.00 PHP 1,180,093.20 PHP 1,379,612.52 PHP 1,599,083.77
Services
Purchase of Inventory 45,380.00 49,918.00 54,909.80 60,400.78 66,440.86

Payment of Advertising Fee 4,000.00 3,000.00 3,000.00 3,000.00 1,000.00

Payment of Utilities Expense 10,000.00 38,000.00 38,000.00 38,000.00 38,000.00

Payment of supplies 26,386.50 29,025.15 31,927.67 35,120.43 38,632.47

Payment of Rent 105,000.00 90,000.00 90,000.00 90,000.00 90,000.00


Payment of Repairs and
5,000.00 12,000.00 12,000.00 12,000.00 12,000.00
Maintenance
Payment of Employee Salaries /
449,280.00 449,280.00 449,280.00 449,280.00 449,280.00
Wages
Payment of Duties and Licences 6,500.00 2,500.00 2,500.00 2,500.00 2,500.00

Remittance of Withholding Tax - - - - -

Payment of Income Tax 0 101,269.40 141,729.19 185,419.92 235,704.95


Net Cash Provided by Operating
PHP 182,273.50 PHP 223,719.45 PHP 356,746.54 PHP 503,891.39 PHP 665,525.49
Activities

Cash Provided/Used from Investing


Activities
Payment to acquire equipment 187,364.50 0 0 0 0
Payment for leasehold
16,500.00 0 0 0 0
improvements
Net Cash Used in Investing
203,864.50 0 0 0 0
Activities

Cash Provided from Financing


Activities
Cash received as investment by
300,000.00 0 0 0 0
owner
Payment for withdrawals by owner 140,000.00 340,000.00 580,000.00 920,000.00 1,050,000.00

Net Cash Provided by Financing


160,000.00 -340,000.00 -580,000.00 -920,000.00 -1,050,000.00
Activities

Net Cash Inflow (Outflow) 22,273.50 -116,280.5468 -223,253.4583 -416,108.6142 -384,474.5123

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

Clean Capsule Laundry Shop. | All Rights Reserved. 56


Clean Capsule
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 493,169.97 PHP 550,028.58 PHP 521,536.44 PHP 323,158.46
Add: Investment 300,000.00 - - - -
Net Income 333,169.97 396,858.61 551,507.86 721,622.02 910,747.61
Total PHP 633,169.97 PHP 890,028.58 PHP 1,101,536.44 PHP 1,243,158.46 PHP 1,233,906.07
Less: Withdrawals 140,000.00 340,000.00 580,000.00 920,000.00 1,050,000.00
Ending Capital PHP PHP PHP PHP PHP
Balance 493,169.97 550,028.58 521,536.44 323,158.46 183,906.07

FINANCIAL STATEMENT ANALYSIS

Return On Investment

Year 1 Year 2 Year 3 Year4 Year 5

Net Income 333,169.97 396,858.61 551,507.86 721,622.02 910,747.61


Divided by: Average
300,000.00 323,520.00 328,760.93 303,879.38 307,596.98
Investment
ROI Percentage 1.11 1.23 1.68 2.37 2.96

Clean Capsule Laundry Shop. | All Rights Reserved. 57


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.

Contribution to the Government

As Filipino citizens, the business owners will pay their tax


liabilities mandated by the law. Tax will help the government
generate funds for the improvement of public service and government
projects.

Contribution to the Society

Clean Capsule business will keep this town marketable to


attract more investors that will help the community for its
improvements and modernization, which, in turn leads to money
placed directly into the community.

Clean Capsule Laundry Shop. | All Rights Reserved. 58


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.

Clean Capsule Laundry Shop. | All Rights Reserved. 59


Chapter VII

CONCLUSION AND RECOMMENDATION

The market study determined the demand for service through


research on the residents on the particular area from Brgy._______,
________and ________. 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.

Clean Capsule Laundry Shop. | All Rights Reserved. 60

Potrebbero piacerti anche