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)

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 and Case Study: 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.

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
 Business Offerings

The business’ main offerings are Washing and Drying. It will be up to the customers’

judgements to choose the services they wish to avail since the laundry services are self-

service.

Washing – The customers shall weigh their laundry in the weighing scale to ensure

that it is within the capacity of the machines. Then, they will load the clothes into the

machine, put some detergent and fabric conditioner in the detergent chute and close

the lid.

Drying – There will be a coin-operated drying machine wherein customers can load their

washed clothes.

Folding – There is a free designated folding area for those who wish to fold their clothes.
WASHATERIA: WASH YOUR PROBLEM
 WASHATERIA: WASH YOUR PROBLEM

CHAPTER II SITUATION

ANALYSIS

Related Studies

The term coin laundry is defined by the American Coin Laundry Association

(CLA)—the only national trade association for the coin laundry industry—as

commercial-grade, self-service laundry equipment placed into service in a retail space.

Coin laundries are unique small business in that they have no inventory or receivables.

Today’s coin laundry industry is a strong and vibrant one. Even more appealing is the fact

that this dependable public service industry continues to grow and thrive.

History of Laundromats

As long as humans have been wearing clothes, they have been washing them as

well. Although our early ancestors lacked the stringent laundry technologies we enjoy

today, they surely appreciated the scent, feel, and look of freshly laundered clothing and

linens.

The very first washing machine was invented in 1858 by HamiltonSmith. A little less

than 20 years later, a man named William Blackstone invented a household washer as a

gift for his wife. While these machines were incredibly convenient, they were expensive

luxuries thatmost families were unable to afford. As a result, the Laundromat was born.
 WASHATERIA: WASH YOUR PROBLEM

In 1934, the first Laundromat, which was known at the time as a “Wash-a- teria,”

opened in the Fort Worth, Texas. This laundry facility featured four washing machines

that charged by the hour. Laundromats quickly gained popularity, and 15 years later,

Bendix Home Appliances created the first coin operated washers.

Over the past few decades, laundry technology has improved dramatically.

Energy-efficient, low-water washers are gaining in popularity, and dryers are much faster

than they were in decades past. Although many machines still rely on coin-operated

mechanisms, digital card-operated payment systems are also available. Because

Laundromats typically operate on a self-serve, automated system, their owners are able

to step back and manage their stores from afar. Many Laundromats include amenities like

free Wi-Fi, TVs, vending machines, and children’s play areas. In addition, it isn’t unusual for

Laundromats to remain open 24/7, an extra convenience for customers with busy schedules.
 WASHATERIA: WASH YOUR PROBLEM

Feasibility Study: Lovevada-Bango Laundy Shop (Aparece, et al., 2014). The study was

conducted in Butuan City, a highly urbanized city in the Philippines wherein many

businesses emerged. It can be seen that numerous schools and establishment are spotted

around the area urged to look for laundry convenience due to their busy schedules.

According to the study, the reasons people go to laundry shop are because of tight

schedule, laziness, and in consideration of water consumption. Their target market will

be the young professionals, students and households.

The study 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 it is expected to last in the long run. Generally, Lovebada-Bango Laundry Shop

is seen to be feasible upon studying its location, market demand and the factors affecting

the market.

Industry Review

The coin laundry industry is approximately 70 years old and has been growing

and thriving over those years. It is especially gaining more popularity in the recent years

because most people now look to simplifying household works and save time by

depending on highly mechanized machines.

The coin laundries are one part of the self-service laundry business; the industry is

actually comprised of two distinct segments as stated by the CLA. The first is coin-op

laundries, the second is represented by coin-operated machines

 WASHATERIA: WASH YOUR PROBLEM

located in apartment housing. This apartment segment of the business is referred to as the

multi-housing laundry business.

Industry growth is based on the demographics of population density, population

mix and population income. The more concentrated the population, the greater the need

for quality coin laundry facilities. National and regional demographics indicate renters,

the primary users of coin laundries, are the fastest-growing segment in the nation. As of

the 2010 U.S. Census, 34.5percent of the nation’s 116 million households were renter

occupied. The number of coin laundry stores built over the past 70 years has grown steadily

as the population has increased and shifted to more concentrated areas resulting in a

mature, stabilized industry.

According to an industry study prepared by MSG Firm in 2011, there are some

35,000 coin-operated laundries in the U.S., and they generate $5 billion in annual gross

revenue. They serve an estimated 100 million Americans, the majority of whom live in

rental housing. This figures includes coin laundries and coin-operated machines in

apartment buildings. Today, growth in the laundromat industry is being driven by cities, where

density and multi-family construction are expanding the market for clean clothes. One more

thing worth noting about coin laundries is that they are passive income generators. The

demand for laundry is steady month to month, meaning that revenue is steady and accounting

is easy.

Meanwhile, in the Philippines, despite the continued fluctuation and instability

of peso, doing laundry is one of the things that is a certain and constant household duty. At

present, the cost of operating a laundry business depends

 WASHATERIA: WASH YOUR PROBLEM

largely on the operational expenses. It involves a lot of balancing act of lowering the cost

and increasing sales to keep the business afloat. However, with economic downturns and

market uncertainties, laundry business is evolving into a dynamic opportunity while

maintaining its high rate of success for today’s investors.

Old-school laundry owners in the country often view this as a passive business

which has allowed to new era of laundry owners to experiment and come up with the

coin-operated laundry business (Kirhat, 2016). An ordinary laundry shop may offer as

low as PhP25.00 per kilo, but the coin-operated laundry shops offer PhP20.00 or lower

per kilo for both washing and drying plus the added feature that the customer is now assured

that their clothes will not get lost. With both the average family and business establishments

washing between 15 to 25 kilos a week, it is easy to see just how much a coin-operated

laundry business can gross in the same period.

With all of these industry reviews, it is no wonder that more and more coin-

operated laundry shops are arising especially in populated areas such as Manila and

Makati. Meanwhile, aside from coin-operated laundry machines, there is also the card-

operated. One of which was recently built in Lucena City, Quezon. This is evidence that the

self-service laundry industry is deemed to thrive not only in the capital region but also in

the provinces and small towns such as in Atimonan, Quezon.

 WASHATERIA: WASH YOUR PROBLEM

Key Drivers and Barriers

Low cost of service Rural Area Location

Cash Business

Table 1. Key Drivers and Barriers

Target Market

Our target market is determined from the number of households within the

mentioned Barangays. In order to identify the population demand for the proposed

coin-operated laundry business for that area in Brgy. Zone II- Poblacion, we used the

Slovin’s formula in determining the number of respondents that will be surveyed. We use

the actual number of households, a total of 2,954 and a 10% margin of error. Margin of

error denotes the allowed probability of committing error in selecting a small

representative of the population.

Where:

N = Number of samples

n = Total population

e = Margin of error

Therefore:

Competition
 WASHATERIA: WASH YOUR PROBLEM

PALABAHAN CO. LAUNDRY SERVICES: “Palabahan ni Ate Monang”. This traditional

laundry shop is located at 393 Doña Aurora St., Brgy. Zone I- Poblacion, Atimonan,

Quezon owned by Mr. Generoso Alvarez and managed by his wife. The business space is

stationed at the front porch of their personal house so as to avoid the costs of renting a

commercial space. They have been operating for 4 years now and said to have started with

an average of 50 kilos of laundry during weekdays and twice of it on weekends. Their laundry

services are washing, drying and folding with rates varying on the types of item i.e. ordinary

clothes, household items and pants, and comforters priced at Php25.00/kg,

Php35.00/kg and 65.00/kg, respectively. They also have a sari-sari store as an extra income

provider and free pick-up and delivery within the town proper.

They are currently using industrial Top Load and Front Load Machines, both with

11kg capacity, and Dryer with 3kg capacity. The machine prices are estimated at

Pph45,000.00 each, water and electricity consumption ranging from Php3,000.00 to

Php5,000.00 and all other operating expenses are 40% of gross revenues. The manager,

whom we interviewed, mentioned that the payback period for their business is 2 years.

The manager perceived that the expensive price of coin-operated laundry machines will

pose as the major problem to be encountered in opening a coin-operated laundry shop.

CARIÑOS LAUNDRY SHOP. Another traditional laundry shop located at 1249 Governor

St., Brgy. Zone IV-Poblacion, Atimonan, Quezon. The owner is Michael Cariño and the

business is managed both by him and his wife. They have been
 WASHATERIA: WASH YOUR PROBLEM

in the business for 2 years now and said to have started with an average of 40 kilograms

during the weekdays and twice of it on weekends. Their laundry services are Washing,

Drying, Dry Cleaning priced at Php25.00/kg for ordinary clothes, Php30.00/kg for

household items and pants and Php65.00 for bedsheets with a minimum of five (5)

kilograms. They are also offering Free Pick-Up and Deliverywithin the town proper.

The business is currently running on two 2 Washing Machines and Dryers both with

10.5kg capacity. The machine prices are estimated at Php60,000.00 each. Their monthly

water and electricity expenses range from Php5,000.00 to Php6,000.00 monthly and all

other operating expenses are estimated at Php650.00 monthly. The owner mentioned

that their payback period is after 1 and a half year of operations. The owner perceived no

major problems to be encountered if a coin-operated laundry shop is established in

Atimonan, Quezon. If there is any, he said, it will not be significantly different to the

problems encountered by a traditional laundry shop.

AAV EXPRESS WASH & DRY SERVICES. This newly opened hybrid laundry shop caters

both Do It Yourself Laundry and Crew Laundry Service. It has been in operation for 6

months as of writing at AAV Building Osmeña St., Brgy. Zone II-Poblacion, Atimonan,

Quezon, personally owned by Mr. Abel A. Vallesteros. Their services are Washing, Drying

and Pressing and the prices vary depending on the type of laundry item and it is P5.00

cheaper if the customer choose the Do It Yourself laundry. They are also offering Free

Liquid Detergent and Fabric

 WASHATERIA: WASH YOUR PROBLEM

Conditioner for both of the service and a Free Delivery and Pick-Up for the Crew Laundry

Service only.

Presently, the machines used by the business are commercial-grade washing

machines. There is 1 washer only machine costing P30,000.00 and 2 washer-dryer

machines costing P125,000.00 each, all of which have 10kg capacity. Their water and

electricity consumption amounts to P7,000.00 monthly, salary expense is P6,000.00 monthly

and other expenses amounts to P10,000.00. On his initial investment of P300,000.00, Mr.

Vallesteros said that the payback period is expected to be in 1 year. Some of the

problems encountered by his business is the lack of water supply during power

interruptions and the stains on clothes which cannot be removed by the machines in

one cycle.
 WASHATERIA: WASH YOUR PROBLEM

 New entrants as there are relatively low barriers of entry.

 Customers because majority still prefer to do their own laundry.

 Customers who prefer full-service laundry rather than self-service.

 Growing sentiment about environmental protection.

 Power interruption and source of water.

 WASHATERIA: WASH YOUR PROBLEM

Chapter III BUSINESS

VIABILITY

Marketing Aspect

The marketing aspect will determine the extent to which services generated by

the business are needed or demanded by the target market and to design the appropriate

marketing strategies and plans that will help ensure that the business outputs will be reach

and be accepted by the customers.

Area Covered

The area covered refers to where the business is to be set up and the areas

surrounding it. Geographically, the target area is in Atimonan, Quezon primarily located

at the Barangays in the town proper i.e. Brgy. Zone I-Poblacion, Brgy. Zone II-Poblacion,

Brgy. Zone III-Poblacion and Brgy. Zone IV-Poblacion. This makes up for 9.5% of the 42

barangays of the town. There are a total of 2,954 households in this barangays which are

the primary subjects of this study. These locations are composed of colleges such as Leon

Guinto Memorial College, Quezonian Education College and ASTI; establishments;

apartments and boarding houses.

The total number of households was obtained from the list of National Statistics’

Survey of Population and Household by Barangays as of May 1, 2010 requested from the

Local Government of Atimonan, Quezon.

 WASHATERIA: WASH YOUR PROBLEM

Total
Are Covered number
household
Brgy. Zone 1 876
Brgy. Zone 2 866
Brgy. Zone 3 460
Brgy. Zone 4 752
Total 2,954
Table 2. Target Market

Demand and Supply Analysis

Demand Analysis
Total actual Total population who
Percentage
AreCovered household are willing to avail
(a) (b) laundry services(axb)
Brgy. Zone 1 876 59% 517
Brgy. Zone 2 866 59% 511
Brgy. Zone 3 460 59% 271
Brgy. Zone 4 752 59% 444
Total 2,954 1,743

Table 3. Demand Analysis

Working
EXISTING No. of Working days per Capacity of
Hours Per
LAUNDRY SHOP Machines week cycle per week
day

Laundry Shop #1 10 4 7 280

Laundry Shop #2 10 2 7 140
Laundry Shop #3 8 3 7 168
Total 588

Table 4. Supply Analysis

 WASHATERIA: WASH YOUR PROBLEM

Demand and Supply Gap Analysis

Demand Supply
Supply Gap

Table 5. Demand and Supply Gap

Market Share Analysis

MARKET SHARE ANALYSIS

% of willing to Total
Households
% of willing to avail laundry Household
TOTAL willing to avail
avail laundry service offered willing to avail
HOUSEHOLD laundry
services in the given laundry
services
location service
Zone 1 876 59% 517 20% 103
Zone 2 866 59% 511 43% 220
Zone 3 460 59% 271 35% 95
Zone 4 752 59% 444 16% 71
TOTAL 2,954 59% 1743 489
Table 6. Market Share

Advertising and Promotion

1. Grand Opening or 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 partners from their personal funds.

 32
WASHATERIA: WASH YOUR PROBLEM

2. Light Signage

This is a common way to direct customers to your shop. It must be clearly

readable and recognizable from the street so that customers will easily identify and find

your business place. The lighting is important during night hours. According to

business.ph, a common sized signage costs around Php1350.00

including the electrical works and light bulb.

3. Leaflets and flyers

This will include the information such as the services offered, price list, company

address and contact number, business hours and business slogan. The

design will be personally done by the partners and the total amount of Php2650.00

will be allotted for the printing and distribution of the leaflets and

flyers.

Figure 2. Sample Fliers

 WASHATERIA: WASH YOUR PROBLEM

4. Coupons

To help drive business during its slowest periods of the year, free wash or dry coupons can

be offered to entice customers to try our service for the first time or for customers to come

back and try our service again. The coupons that will be offered are mostly “Free Dry”

Coupons. A total amount of Php4,500.00 coupons will be given to deserving customers

and accounted for as promotional expenses.

Figure 3. Sample Coupon

5. Sports and Event Sponsorships

The schools and colleges in Atimonan are fond of holding events for the enjoyment

of their students. And the student organizations of these schools are always looking for

sponsorships. Our business will be particularly supportive of sports events which requires

students to wear jersey uniforms on their games. A total amount of Php10,000.00 free

laundry service will be sponsored by the partners to chosen events and the excess will be

given as cash sponsorship.

 WASHATERIA: WASH YOUR PROBLEM

Management and Personnel Aspect

Tagline

Wash is your problem? Do it yourself!

Mission Statement

Establish a prestigious Laundromat in Atimonan, Quezon 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 Statement

Washateria: Wash Your Problem, as a leading provider of Laundromat services in

Atimonan, Quezon in terms of excellence, client satisfaction, professionalism, and

quality superiority.

Core Values

CLIENT VALUE CREATION

Be understanding, and friendly to develop a long term relationship to the

customers.

INTEGRITY

Be transparent in communication and honest as integrity is the foundation of our

guiding principles.
 WASHATERIA: WASH YOUR PROBLEM

SOCIAL RESPONSIBILITY

To treat our employees with respect and dignity they deserve and take preservation

to our environment.

ACCESSIBILITY

Be considerate for our customers in terms of a fair price value of a satisfactory kind

of service and timeliness of availability of the service for our customers.

Manpower Requirements

Attendant All-Around Worker

Physical:
Male or Female Male
Age must be 18-25 Age must be 20-30 years
years old old
Without any movement
restriction
Qualities, Skills, and Interest:
At least high school graduate At least high school graduate
With pleasing personality Practical skills to operate the
Ability to measure and count machine
accurately Work willingness
Good communication skills Multitasking ability
Enthusiastic Considerate
Has the ability to operate
machinery
Table 7. Manpower Requirements
 WASHATERIA: WASH YOUR PROBLEM

Organizational Structure

Figure 4. Organizational Structure

Job Description and Duties

A. Partner K

Accounting and record keeping.

Preparing tax and other legal and regulatory requirements.

B. Partner S

Auditor and assets custodian.

Inspection of the operational and technical processes of the business.

C. Attendant

Greeting the customers and entertaining them.

Counter clerk and cashier.

Exchanging coins for the customers.

Providing assistance on whatever situation which requires such.

Also responsible to maintain the stocks of supplies which is used in the service.
 WASHATERIA: WASH YOUR PROBLEM

D. Laundry Worker

Helping the customer to weigh their laundry.

Tagging the machine with customer receipt.

Responsible for store keeping chores.

Assist and monitor the customers availing the service.

Taking care and handling the cleaning supplies.

Familiar and able to do all other work except for those assigned to the partners.

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 to be organized by

the partners.
 WASHATERIA: WASH YOUR PROBLEM

Productions and Operations Aspect

Laundry Equipment and Supplies

EQUIPMENT
LG STACKED WASHER/DRYER
(COIN-OP) GIANT C+PLATINUM

Supplier: BigWash Laundry Shop Inc.

Price: Php. 177 000.00
Quantity: 4
Life expectancy: 10 years
Capacity per Load: 10 kilograms
Cycle time: 40mins(Washer); 40mins
(Dryer)
Washer Dryer
Dimensions 27 (686) 27 (686)
(WxHxD x 38.7 x 38.7
in (mm) (983) x (983) x
30.2 30.1
(767) (764)
Weigh 191.8 130
Lb(kg) (87) (59)/143
/211.6 (65)
(96)

EXHAUST FAN HANABISHI HEWF10 10”

Supplier: Abenson Online Appliance Store
Price: Php. 1 098.00
Quantity: 3
 WEIGHING SCALE

Price: Php. 1 895.00

FURNITURE AND FIXTURES

SHELVE AND CABINET BS-18580BCH

Supplier: Cost-U-Less Appliance Store Price:

Php. 7 000.00
Quantity:1

COUNTER TABLE

Supplier: Cost-U-Less Appliance Store Price:

Php. 850.00
Quantity: 3

WALL FANS SHARP PJ W160M 16”

Supplier: Abenson Online Appliance Store Price:

1 300.00
Quantity: 3
STACKING CHAIR SUMO PLASTIC SC-
02BLK

Price:
Php. 300.00
Quantity: 5

CASHIER DESK AND CHAIR

Supplier: Cost-U-Less Appliance Store Price:

Php. 3 200.00
Quantity:1

FULL HD TV LG 43LJ500T 43”

Supplier: Abenson Online Appliance Store Price:

Php. 20 997.00
Quantity:1
 WASHATERIA: WASH YOUR PROBLEM

Floor Plan

Figure 5. Floor Layout

 WASHATERIA: WASH YOUR PROBLEM

Figure 6. Floor Sketch

Operational Procedure

Figure 7. Operational Procedure

 WASHATERIA: WASH YOUR PROBLEM

Business Culture

I. Operating hours from 9:00 am to 6:00 pm – no day off Break

time: 12:00 to 1:00 pm.

II. Day to Day Monitoring

The owners will monitor the employees’ attitude and performances, the

consistency and ongoing coaching and giving instructions to them. For monitoring the

daily time record of the employee, upon their arrival, they should log in to the record book

which will include their time in and out, and their signature. The customers upon entering

the laundry shop will be greeted by the attendant and assist them in weighing their

laundry.

The attendant was also responsible for exchanging coins for the customers. The

coins being handed down to the attendant will be from the owner who will also be the cash

custodian. After the operation of the day, the total cash being exchanged from the

customers, which will be handed back to the cash custodian, should also be equal to the

coins handed down to the attendant before the start of the operation.

As a self-service laundry service, customer should be the one operating the

machines and putting their desired amount of the detergent, bleach and fabric

conditioner to be used in their laundry. The all-around worker will assist them in operating

the machine and make sure that there will be no leaks and over loading. Aside from that,

there will be an instructions posted in the wall to guide the customers.

 WASHATERIA: WASH YOUR PROBLEM

Legal Aspect
LEGAL REQUIREMENTS 2019 2020 2021 2022 2023

Barangay Clearance ₱ 150.00 ₱ 150.00 ₱ 150.00 ₱ 150.00 ₱ 150.00

Barangay Garbage Fee 700.00 700.00 700.00 700.00 700.00
Community Tax Certificate: 500.00 500.00 500.00 500.00 500.00
Fire Safety and Inspection Fee 491.00 176.00 176.00 176.00 176.00
Fire Extinguisher 2,100.00 0.00 0.00 0.00 0.00
SEC Certified Articles of Partnership:
Reservation of partnership name 100.00 0.00 0.00 0.00 0.00
Filing fee 2,020.00 0.00 0.00 0.00 0.00
Various notarial fee 500.00 0.00 0.00 0.00 0.00
BIR Business Registration:
Annual registration fee 500.00 500.00 500.00 500.00 500.00
Documentary stamp tax for lease 361.00 361.00 361.00 361.00 361.00
Purchase of Book of Accounts 100.00 100.00 100.00 100.00 100.00
Mayor's Business Permit:
Mayor's Permit Fee 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Sanitary Inspection Fee 350.00 350.00 350.00 350.00 350.00
Eco-Solid Waste Management 100.00 100.00 100.00 100.00 100.00
Health Clearance 30.00 30.00 30.00 30.00 30.00
Certification Fee 50.00 50.00 50.00 50.00 50.00
Tax Clearance 50.00 50.00 50.00 50.00 50.00
Health Examination 50.00 50.00 50.00 50.00 50.00
Occupational Fee 50.00 50.00 50.00 50.00 50.00
Business Plate No. 80.00 80.00 80.00 80.00 80.00
Sticker 10.00 10.00 10.00 10.00 10.00
Business Tax 200.00 2,273.00 2,273.00 2,273.00 2,273.00

Total ₱ 9,492.00 ₱ 6,530.00 ₱ 6,530.00 ₱ 6,530.00 ₱ 6,530.00

Table 8. Legal Requirements

 WASHATERIA: WASH YOUR PROBLEM

Financial Aspect

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

Washateria: Wash Your Problem Coin-Operated 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.

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.

 WASHATERIA: WASH YOUR PROBLEM

B. REVENUE PROJECTION ASSUMPTION

% of
Expected Estimated Total
Revenue Total No. of
No. of Rate per ANNUAL
in the Projection Cycles
weeks/year Cycle REVENUE
Projected (in cycles) per
Demand Annum
2019 50% 245 52 12,715 ₱ 150.00 ₱ 1,907,299
2020 55% 269 52 13,987 150.00 ₱ 2,098,029
2021 60% 293 52 15,258 150.00 ₱ 2,288,759
2022 65% 318 52 16,530 150.00 ₱ 2,479,489
2023 70% 342 52 17,801 150.00 ₱ 2,670,218
Table 9. Revenue Projection

Year 1 estimated revenue will hold 50% of the projected revenue.

100% percent of the revenue projection from the survey might not be a hundred

percent accurate. We set an allowance of 5% for margin of error, 30% for competition,

and 15% for conservatism purposes. 80% of the projected revenue will be maximum

percentage of expected revenue for the estimated revenue projection.

It is assumed to those who will avail the Wash Service will also avail the Dry Service. Any

deviation from this assumption will be attributed to the conservatism rate of 15%.

There will be an increase of 5% in the estimated revenue projection every following

year. (Assuming that the revenue will increase by 5% every following year

through effective advertising and promotions and good quality laundry.) 100% of

revenue projection less 5% margin of error and 15% for conservatism purposes.
 WASHATERIA: WASH YOUR PROBLEM

C. COST OF SERVICES

COST OF SERVICE
2019 2020 2021 2022 2023
Laundry suppliesConsumption ₱ 232,849.41 ₱ 256,134.35 ₱ 279,419.29 ₱ 302,704.23 ₱ 325,989.17
Utility Consumption-Direct Equipment 299,128.04 329,040.85 358,953.65 388,866.46 418,779.26
Depreciation-Direct Equipment 72,520.00 72,520.00 72,520.00 72,520.00 90,650.00
Depreciation-Indirect Equipment 953.18 953.18 953.18 953.18 953.18
Salaries-Laundry Worker 156,000.00 156,000.00 156,000.00 156,000.00 156,000.00
Employee Benefits 21,381.60 21,381.60 21,381.60 21,381.60 21,381.60
Maintenance-Direct Equipment 6,000.00 6,000.00 6,000.00 6,000.00 7,000.00
Total Cost of Service ₱ 788,832.23 ₱ 842,029.98 ₱ 895,227.72 ₱ 948,425.47 ₱ 1,020,753.21
Table 10. Cost of Services

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.
 WASHATERIA: WASH YOUR PROBLEM

Direct Equipment-Utility Consumption

PER CYCLE Cost Quantity/Cycle Cost/Cycle
Machine Wash (40min.)
Electricity (KW/h) ₱ 12.00 0.40 ₱ 4.80
Water (Cubic Meter) ₱ 28.50 0.05 1.43
Machine Dry (40 min.)
Electricity (KW/h) ₱ 12.00 0.40 4.80
LPG-Propane (L/Hr) ₱ 25.00 0.5 12.50
TOTAL ₱ 23.53
Table 11. Utility Consumption

The detergent, fabric conditioner and bleach are considered as freebies to the

customers as they still have an option if they will acquire these freebies or use

their own.

Laundry Supplies Consumption

Cost Quantity Cost/Cycle

Detergent (40gpack) 3.75 2 7.50

Fabric Softener (28ml pack) 4.50 2 9.00
Liquid Bleach (colored) 7.25 0.25 1.81
TOTAL 18.31
Table 12. Laundry Supplies Consumption
 WASHATERIA: WASH YOUR PROBLEM

D. MACHINE CAPACITY ASSUMPTION:

2019 2020 2021 2022 Changes 2023

Operating Capacity Full 73% 80% 87% 95% 82%
Working Hrs per Day 8 8 8 8 8 8 8
Mins. per Cycle 40 40 40 40 40 40 40
No. of Machines 4 4 4 4 4 5 5
No. of cycles per Day 48 48 48 48 48 60 60
Working Days per Week 7 7 7 7 7 7 7
No. of cycles allowed per Week 336 245 269 293 318 420 342
Kg. Capacity per Cycle 10 10 10 10 10 10 10
No. of Kilograms allowed per Week 3360 2445 2690 2934 2313 4200 3423
No. of Weeks per Year 52 52 52 52 52 52 52
No. of Kilograms allowed per Year 174,720 127,153 139,869 152,584 120,297 218,400 178,015
Table 13. Machine Capacity Table

80% of the full capacity will be the normal capacity of the machines in the actual

operation.

This is to assume that 20% of the full capacity of the machines will be unutilized not

only for conservatism in terms of demand but also to slow down the rate of wear and tear

of the machines.

Before year 5, the estimated revenue reached the 80% of the machine capacity.

Thus, the owners decided to purchase additional equipment.

E. DEPRECIATION ASSUMPTION:

For the simplicity of computations, the straight-line method of depreciation was use.

The residual value of the machines is 2% based on the original cost of the

depreciable items.

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

 WASHATERIA: WASH YOUR PROBLEM

equipment such as the exhaust fan and weighing scale is 8 years and 7 years,

respectively.

The machine installation costs is included as a capitalizable cost in the total cost of the

laundry machines. REPAIRS AND MAITENANCE ASSUMPTION:

The estimated cost of repairs and maintenance is attributable to the equipment

other than the laundry machines and to the furniture & fixtures.

The repairs and maintenance of the laundry machines will be shouldered by the

machine providers as part of the sales contract.

F. OFFICE SUPPLIES AND CLEANING SUPPLIES

Office Supplies Quantity Price Total Supplier

Ballpen 36 ₱ 15.00 ₱ 540.00 National Bookstore
Tape Dispenser 1 189.00 189.00 National Bookstore
Books ofAccounts 4 35.00 140.00 National Bookstore

Calculator 1 345.00 345.00 National Bookstore

Clear Tape 35 15.00 525.00 National Bookstore
BIR Receipts 266 60.00 15,957.73 Authorized Printer
TOTAL ₱ 17,696.73
Table 14. Office Supplies

Cleaning Supplies Quantity Price Total Supplier

Broom and Dust Pan 2 ₱ 176.00 ₱ 352.00 Novo Store
Mop 1 245.00 245.00 Novo Store
Rag 1 285.00 285.00 Novo Store

Toilet bowl cleaner 1 204.00 204.00 Novo Store

Toilet tissue 156 5.00 780.00 Novo Store
Trash can 1 50.00 50.00 Novo Store
Doormat 1 40.00 40.00 Novo Store
Total ₱1,956.00
Table 15. Cleaning Supplies
 WASHATERIA: WASH YOUR PROBLEM

G. SALARIES AND BENEFITS

1. The salaries are expected to remain constant throughout the 5 years period

similar to the SSS, PhilHealth and Pag-Ibig Contributions.

2. The workers will receive other De Minimis Benefits such as Uniform

Allowance, Laundry Allowance and 13th Month Pay.

3. The partners will also be personally involved with the daily operations of the

business but their salary will be taken from the withdrawals.

PAYROLL SCHEDULE

Working Gross
Personnel No. Wage/day Days Monthly Pay

LaundryWorker 1 250.00 26 ₱ 6,500.00

Attendant 1 250.00 26 6,500.00
TOTAL 13,000.00
TOTAL PER ANNUM ₱ 156,000.00

Deductions

SSS Philhealth PAG IBIG EE ER

PS ES EE ER
₱ 478.80 ₱ 236.20 ₱ 137.50 ₱ 137.50 ₱ 130.00 ₱ 130.00
478.80 236.20 137.50 137.50 130.00 130.00
957.60 472.40 275.00 275.00 260.00 260.00
₱11,491.20 ₱5,668.80 ₱3,300.00 ₱3,300.00 ₱3,120.00 ₱3,120.00

Employee Benefits
Total Net Monthly Uniform Laundry 13th Month
Deductions Pay Allowance Allowance Pay
₱ 503.70 ₱ 5,996.30 ₱ 1,000.00 ₱ 3,600.00 ₱ 6,500.00
503.70 5,996.30 1,000.00 3,600.00 6,500.00
1,007.40 11,992.60 2,000.00 7,200.00 13,000.00
₱ 12,088.80 ₱143,911.20 ₱ 2,000.00 ₱ 7,200.00 ₱13,000.00

Total Employee's Contribution ₱ 17,911.20

Total Employer's Contribution ₱ 12,088.80
 WASHATERIA: WASH YOUR PROBLEM

PROJECTED FINANCIAL STATEMENT

A. Projected Statement of Cash Flows

WASHATERIA: WASH YOUR PROBLEM

PROJECTED STATEMENT OF CASH FLOWS
2019 2020 2021 2022 2023
Cash Provided/Used by Operating Activities:
Cash Receipts from Service Revenues ₱1,907,298.90 ₱2,098,028.79 ₱2,288,758.68 ₱2,479,488.57 ₱2,670,218.46
Purchase of Laundry Supplies 243,521.67 257,104.55 280,389.49 303,674.44 326,959.38
Purchase of Office Supplies 17,696.73 18,586.81 20,112.65 21,638.49 23,164.32
Purchase of Cleaning Supplies 1,956.00 1,956.00 1,956.00 1,956.00 1,956.00
Payment of Advertising Expense 18,500.00 18,500.00 18,500.00 18,500.00 18,500.00
Payment of Utilities 330,628.04 359,040.85 388,953.65 418,866.46 448,779.26
Payment of Rent 130,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Payment of Repairs and Maintenance 6,000.00 6,000.00 6,000.00 6,000.00 7,000.00
Payment of Salaries 156,000.00 156,000.00 156,000.00 156,000.00 156,000.00
Payment of Employee Benefits 40,111.20 40,111.20 40,111.20 40,111.20 40,111.20
Payment of Permits and Licenses 9,492.00 6,530.00 6,530.00 6,530.00 6,530.00
Payment of Other Percentage Tax 57,218.97 62,940.86 68,662.76 74,384.66 80,106.55
Payment of Income Tax 0.00 242,139.90 292,163.83 331,249.15 370,334.47
Net Cash Provided by Operating Activities 896,174.28 809,118.61 889,379.10 980,578.19 1,070,777.27

Cash Provided/Used from Investing Activities:

Acquisition of Equipment and Machineries -747,084.00 0.00 0.00 0.00 -177,000.00
Payment of Machine Installation Cost -32,000.00 0.00 0.00 0.00 -8,000.00
Acquisition of Furniture and Fixtures -38,397.00 0.00 0.00 0.00 0.00
Payment for Leasehold Improvements -11,000.00 0.00 0.00 0.00 0.00
Net Cash Used in Investing Activities -828,481.00 0.00 0.00 0.00 -185,000.00
 WASHATERIA: WASH YOUR PROBLEM

Cash Provided/Used from Financing Activities:

Investment of Partners 900,000.00 0.00 0.00 0.00 0.00
Payment for Withdrawals of Owners 240,000.00 240,000.00 240,000.00 240,000.00 240,000.00
Net Cash Provided by Financing Activities 660,000.00 -240,000.00 -240,000.00 -240,000.00 -240,000.00

Net Cash Inflow (Outflow) 727,693.28 569,118.61 649,379.10 740,578.19 645,777.27

Add: Beginning Cash Balance 0.00 727,693.28 1,296,811.90 1,946,191.00 2,686,769.18

Ending Cash Balance ₱ 727,693.28 ₱ 1,296,811.90 ₱ 1,946,191.00 ₱ 2,686,769.18 ₱ 3,332,546.45

Table 14. Projected Statement of Cash Flows

B. Projected Statement of Financial Performance

WASHATERIA: WASH YOUR PROBLEM

Projected Five Year Financial Statement of Performance
2019 2020 2021 2022 2023
Service Revenues ₱ 1,907,298.90 ₱ 2,098,028.79 ₱ 2,288,758.68 ₱ 2,479,488.57 ₱ 2,670,218.46
Less: Cost of Services 709,506.23 762,703.98 815,901.72 869,099.47 941,427.21
Gross Income 1,197,792.67 1,335,324.81 1,472,856.96 1,610,389.10 1,728,791.25
Less: Selling Expenses
Advertising 18,500.00 18,500.00 18,500.00 18,500.00 18,500.00
Employee Salaries 78,000.00 78,000.00 78,000.00 78,000.00 78,000.00
Employee Benefits 20,055.60 20,055.60 20,055.60 20,055.60 20,055.60
Total 116,555.60 116,555.60 116,555.60 116,555.60 116,555.60
General and Administrative Expenses
Depreciation-Furnitures and fixtures 3,839.70 3,839.70 3,839.70 3,839.70 3,839.70
Depreciation-Leasehold improvements 1,100.00 1,100.00 1,100.00 1,100.00 1,100.00
Rent Expense 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Office Supplies 16,997.39 18,523.23 20,049.07 21,574.91 23,100.75
 WASHATERIA: WASH YOUR PROBLEM

Cleaning Supplies 1,956.00 1,956.00 1,956.00 1,956.00 1,956.00

Permits and Licenses 9,492.00 6,530.00 6,530.00 6,530.00 6,530.00
Utilities Expense-Administrative 31,500.00 30,000.00 30,000.00 30,000.00 30,000.00
Machine Installation Costs 32,000.00 - - - 8,000.00
Other Percentage Tax 57,218.97 62,940.86 68,662.76 74,384.66 80,106.55
Total 274,104.06 244,889.79 252,137.53 259,385.27 274,633.00
Partnership Income before Tax 807,133.01 973,879.42 1,104,163.83 1,234,448.24 1,337,602.65
Less: Income Tax 242,139.90 292,163.83 331,249.15 370,334.47 401,280.79

Net Income After Tax ₱ 564,993.11 ₱ 681,715.59 ₱ 772,914.68 ₱ 864,113.77 ₱ 936,321.85

Table 15. Projected Five Year Statement of Financial Performance

C. Projected Statement of Owner’s Equity

WASHATERIA: WASH YOUR PROBLEM

Projected Five Year Financial Statement of Owner's Equity

2019 2020 2021

Partners Daniel Shammel Daniel Shammel Daniel Shammel Beginning Capital
Balance - - 612,496.55 612,496.55 833,354.35 833,354.35
Add: Investment 450,000.00 450,000.00 - - - -
Add: Proft/Loss Distribution 282,496.55 282,496.55 340,857.80 340,857.80 386,457.34 386,457.34
Total 732,496.55 732,496.55 953,354.35 953,354.35 1,219,811.69 1,219,811.69
Less: Withdrawals 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Ending Capital Balance 612,496.55 612,496.55 833,354.35 833,354.35 1,099,811.69 1,099,811.69
 WASHATERIA: WASH YOUR PROBLEM

2022 2023
Daniel Shammel Daniel Shammel
1,099,811.69 1,099,811.69 1,411,868.58 1,411,868.58
- - - -
432,056.88 432,056.88 468,160.93 468,160.93
1,531,868.58 1,531,868.58 1,880,029.50 1,880,029.50
120,000.00 120,000.00 120,000.00 120,000.00

1,411,868.58 1,411,868.58 1,760,029.50 1,760,029.50

Table 16. Projected Five Year Statement of Changes in Owner’s Equity

D. Projected Statement of Financial Position

WASHATERIA: WASH YOUR PROBLEM

Projected Five Year Financial Statement of Position
2019 2020 2021 2022 2023

ASSETS
Current Assets
Cash 727,693.28 1,296,811.90 1,946,191.00 2,686,769.18 3,332,546.45
Laundry Supplies Inventories 10,672.26 11,642.47 12,612.68 13,582.88 14,553.09
Prepaid Rent 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Office Supplies Inventory 699.34 762.92 826.50 890.07 953.65
Total Current Assets 749,064.89 1,319,217.29 1,969,630.17 2,711,242.14 3,358,053.19
 WASHATERIA: WASH YOUR PROBLEM

Noncurrent Assets
Equipments and Machineries 673,610.82 600,137.64 526,664.46 453,191.29 538,588.11
Furniture and Fixtures 34,557.30 30,717.60 26,877.90 23,038.20 19,198.50
Leasehold Improvements 9,900.00 8,800.00 7,700.00 6,600.00 5,500.00
Total Noncurrent assets 718,068.12 639,655.24 561,242.36 482,829.49 563,286.61

Total assets 1,467,133.01 1,958,872.53 2,530,872.53 3,194,071.62 3,921,339.80

LIABILITITES AND OWNER'S EQUITY

Liabilities
Income Tax Payable 242,139.90 292,163.83 331,249.15 370,334.47 401,280.79
Total Liabilities 242,139.90 292,163.83 331,249.15 370,334.47 401,280.79

Owner's Equity
Daniel, Capital 612,496.55 833,354.35 1,099,811.69 1,411,868.58 1,760,029.50
Santander, Capital 612,496.55 833,354.35 1,099,811.69 1,411,868.58 1,760,029.50
Total Owner's Equity 1,224,993.11 1,666,708.70 2,199,623.38 2,823,737.15 3,520,059.00

Total Liabilities & Owner's Equity 1,467,133.01 1,958,872.53 2,530,872.53 3,194,071.62 3,921,339.80
Table 17. Projected Five Year Statement of Financial Position
 WASHATERIA: WASH YOUR PROBLEM

Financial Statement Analysis

A. Payback Period

Net Cash
Inflow
Cash Flow

0 -₱ 900,000.00 -₱ 900,000.00
1 727,693.28 - 172,306.72
2 569,118.61 396,811.90
3 649,379.10 1,046,191.00
4 740,578.19 1,786,769.18
5 645,777.27 2,432,546.45
₱

1 year and 4 months

Table 17. Payback Period

B. Return on Investment

Net Income Ave. Investment ROI

2019 ₱ 807,133.01 ₱ 1,467,133.01 55%
2020 973,879.42 1,958,872.53 50%
2021 1,104,163.83 2,530,872.53 44%
2022 1,234,448.24 3,194,071.62 39%
2023 1,337,602.65 3,921,339.80 34%
Table 18. Return on Investment
 WASHATERIA: WASH YOUR PROBLEM

C. Capital Intensity Ratio

Total

Net Sales

Table 19. Capital Intensity Ratio

D. Net Operating Margin

2019 2020 2021 2022 2023

Net Profit before Tax ₱ 807,133.01 ₱ 973,879.42 ₱1,104,163.83 ₱1,234,448.24 ₱1,337,602.65

Divided by: Net Sales 1,907,298.90 2,098,028.79 2,288,758.68 2,479,488.57 2,670,218.46
NetOperating Margin 42% 46% 48% 50% 50%

Table 20. Net Operating Margin

E. Gross Profit Margin

2019 2020 2021 2022 2023

Gross Profit ₱1,197,792.67 ₱1,335,324.81 ₱1,472,856.96 ₱1,610,389.10 ₱1,728,791.25

Divided by: Net Sales 1,907,298.90 2,098,028.79 2,288,758.68 2,479,488.57 2,670,218.46
Gross Profit Margin 63% 64% 64% 65% 65%

Table 21. Gross Profit Margin

 WASHATERIA: WASH YOUR PROBLEM

F. Projected Statement of Financial Ratios

2019 2020 2021 2022 2023

Service Revenues 100.00% 100.00% 100.00% 100.00% 100.00%
Less: Cost of Services 37.20% 36.35% 35.65% 35.05% 35.26%
Gross Income 62.80% 63.65% 64.35% 64.95% 64.74%
Less: Selling Expenses 6.11% 5.56% 5.09% 4.70% 4.37%
General and Administrative Expenses 14.37% 11.67% 11.02% 10.46% 10.29%
Net Income Income Before Tax 42.32% 46.42% 48.24% 49.79% 50.09%
Income Tax 12.70% 13.93% 14.47% 14.94% 15.03%

Net Income After Tax 29.62% 32.49% 33.77% 34.85% 35.07%

Table 22. Financial Performance Ratios
 WASHATERIA: WASH YOUR PROBLEM

CHAPTER IV BUSINESS

SCHEDULE

GANTT CHART of Business Activities

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
Table 23. GANTT Chart

Budget Summary

Investment bythe partners 900,000.00

Less: Acquisition of LaundryEquipments 747,084.00
Acquistion of Furniture and Fixtures 38,397.00
Payment for Leasehold Improvements 11,000.00
Purchase of Office Supplies 1,329.81
Purchase of Cleaning Supplies 163.00
Payment of Advertisement Expense 1,541.67
Payment of Permits and Licenses 9,492.00
Payment of Rent 20,000.00
Total Cash Outflow 829,007.48
Exess (Deficit) 70,992.52
Table 24. Budget Summary
 WASHATERIA: WASH YOUR PROBLEM

CHAPTER V

CONCLUSION AND RECOMMENDATIONS

Conclusions

Based on the finding and analysis made in the study, the following conclusions are being

summarized.

The market feasibility of the study concluded that there is a current gap in the demand

and supply analysis. The target market in the study are the households residing in the

town proper of Atimonan, Quezon divided into four barangays namely Barangay Zone

I, Zone II, Zone III, and Zone IV. The areas covered reveal that the total number of

household is 2,954 from which 59% or 1,743 are willing to avail laundry services. On the

other hand, there are three laundry shops existing in the market. Assuming that these

laundry shops are operating at full capacity, 34% or 596 of the total household willing to

avail laundry services can be covered. Therefore 66% or 1150 of the total household are

still unfulfilled from the market. Thus, this can be an assurance and an opportunity for an

entrant of a new innovation in the laundry industry.

The respondents showed that there is high level of acceptability of coin- operated

laundry.

In the financial aspect of the study, establishing a laundry mat will require an intensive

capitalization, but the analysis showed that the return on investment will be ranging

approximately between 34 to 55% annually, and the payback period will be in a year

and 4 months.
 WASHATERIA: WASH YOUR PROBLEM

The selling price being used in the study was reasonable enough to gain an annual net

income ranging approximately between 29 to 35% of the service revenue.

Recommendations

Based from the results of the study, the following recommendations are being

summarized.

Proceeding in the location provided in the study wherein the most households

willing to avail laundry services are residing can be more advantageous.

Proceeding with the market plan provided by the study is highly recommended.

Advertising and promoting to introduce the business culture of a laundry self-

service are advisable since it is new to the market.

Complementary services such as internet access and magazines are highly

recommended.

Acquiring generators are highly recommended.

High quality for detergents, bleach, and fabric conditioner are advisable to emphasize

uniqueness from other laundry services.

Since self-service laundry doesn’t require any direct workers, and there is no

deliveries since customers are walking in, it is highly advisable in pricing

decision to be in a lower rate than a usual rate of a traditional laundry services.

Convenience and affordability shall be emphasized.

 WASHATERIA: WASH YOUR PROBLEM

Additional information for things to consider such as possible innovators and

competitors.

Further study and extensive research is recommended in case of changes from the

current situation and condition.

 REFERENCES

http://www.coinlaundry.org/investor-resources/additonalinfo

http://www.coinlaundry.org/investor-resources/gettingstarted

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/partnership/
APPENDICES
 Appendix A

LEON GUINTO MEMORIAL COLLEGE, INC.

443 Mabini St., Atimonan, Quezon
4331 (Recognized by the
Government)
E-mail Address: [email protected]
Tel. no. (042) 316-5471 or (042) 717-
1483

October 30, 2017

Engr. RUSTICO JOVEN U. MENDOZA

Municipal Mayor
Atimonan, Quezon

Dear Hon. Mayor:

The undersigned is recommending the 4th year students of Bachelor of Science in

Accountancy of Leon Guinto Memorial College, Inc., Atimonan, Quezon. As part of the
requirements in their subject Elec 4 – Feasibility Study, they are currently conducting a
business study entitled “Washateria: Wash Your Problem” in Atimonan, Quezon.

In this view, I would like to request permission from your good office to make
some inquiries to the departments that are involved in making this feasibility study
possible. Business Permit and License, Treasurer’s Office, Engineering Office and others.

Rest assured that the data obtained shall be kept confidential and shall be used for
academic purposes only. It will be treated strictly and in accordance with the ethics of
business research.

Thank you very much!

Name of researchers:

KHRISTINE MAE S. DANIEL

SHAMMEL S. SANTANDER

Respectfully yours,

JORGE C. ANDANAR, CPA

Research Adviser
teaching minds… changing lives… moving forward…
 Appendix B

LEON GUINTO MEMORIAL COLLEGE, INC.

443 Mabini St., Atimonan, Quezon
4331 (Recognized by the
Government)
E-mail Address: [email protected]
Tel. no. (042) 316-5471 or (042) 717-
1483

October 12, 2017

Dear Sir/Madam:

Good day!

We are 4th year Bachelor of Science in Accountancy students of Leon Guinto

Memorial College, Inc. We would like to inquire about the Legal Fees and Requirements in
building a Laundry Shop Business here in Brgy. Zone II- Poblacion, Atimonan, Quezon.
This information is a vital requirement in completing our Feasibility Study.

Rest assured that the information given shall be treated with confidentiality and shall
be used for academic and research purposes only.

Thank you for your kind consideration.

Sincerely yours,

KHRISTINE MAE S. DANIEL

SHAMMEL S. SANTANDER
The Researchers Noted

by:

JORGE C. ANDANAR, CPA

Feasibility Study Adviser
teaching minds… changing lives… moving forward…
 Appendix C

LEON GUINTO MEMORIAL COLLEGE, INC.

443 Mabini St., Atimonan, Quezon
4331 (Recognized by the
Government)
E-mail Address: [email protected]
Tel. no. (042) 316-5471 or (042) 717-
1483

Dear Respondents:

Good day!

In connection with our Feasibility Study, we, Bachelor of Science in Accountancy

4thyear students, Khristine Mae S. Daniel and Shammel S. Santander are conducting a
Feasibility Study regarding the establishment of a laundry shop. In order to have an
accurate and reliable result from the study, we are seeking your cooperation by answering
the following questions honestly and sincerely. We will assure you that your answers shall
be held with utmost confidentially.

Your cooperation will highly contribute to the success of this study. Thank you very
much.

Very truly yours,

KHRISTINE MAE S. DANIEL

SHAMMEL S. SANTANDER
The proponents

Noted by:

JORGE C. ANDANAR, CPA

Feasibility Study Adviser
teaching minds… changing lives… moving forward…
 Appendix D

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 Coin-Operated Washing Machine?

No
Yes, but not used yet
Yes and already used
8. Is the idea of a Coin-Operated Washing Machine acceptable for you?
Yes (Answer no. 9 and 10)
No,
Why
9. If yes, what factors do you consider in accepting a coin-operated laundry
business? (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 the coin-operated laundry shop?
Wash only
Wash and Dry
Dry only
 RESEARCHERS’ CURRICULUM VITAE

DANIEL, KHRISTINE MAE

SEVILLANO
805 Villamiel St., Brgy. Zone III-Poblacion,
Atimonan, Quezon
0906-570-4284 (globe) / 0909-771-8822 (smart)
[email protected]

I am seeking to be a part of an institution that

values the skills, abilities and knowledge of an employee
wherein I can be effective with the skills I gained in
solving problems, analyzing situations and finding
possible solutions in an efficient and positive manner.

Age: 21
Sex:
Female
Birth date: February 7, 1997
Birth place: Biliran, Biliran
Citizenship: Filipino
Civil Status: Single
Religion: Roman Catholic

Tertiary:
Bachelor of Science in
Accountancy Leon Guinto
Memorial College, Inc. Atimonan,
Quezon
Class of 2018

Secondary:
Bulacan Ecumenical
School City of Malolos,
Bulacan Class of 2013
 Leon Guinto Memorial College, Inc. Graduating Class of 2018
President

Junior Philippine Institute of Accountants (JPIA)

Local Chapter of Leon Guinto Memorial College
President (2017-2018)

Quezon Federation Junior Philippine Institute of Accountants (QFJPIA)

V.P. for Membership (2017-2018)

National Federation of Junior Philippine Institute of Accountants

(NFJPIA) Region 4 Council
Member

LGMC’s 21st Commencement Exercises

April 14, 2017

NM Parafina Leadership Award

QFJPIA Leadership Excellence Award-Executive Officer
QFJPIA Leadership Excellence Award-Local Chapter President
SPES Achievement Award
Best Research Presenter
Best Feasibility Study Presenter
Outstanding Apprentice Trainee

PICPA Accounting Quiz Bowl and Seminar

Enverga University-Candelaria
Level 23 Accounting Quiz Bee Participant
July 29, 2016

PICPA Accounting Quiz Bowl and Seminar

Enverga University-Candelaria
Level 2 Accounting Quiz Bee Participant
1st Runner Up in Overall Ranking of Quiz
Bowl July 23, 2016

Magnates Accounting Quiz Bee: “Jorge C. Andanar Qualifier Zone”

Leon Guinto Memorial College,
Inc. 1st Placer
January 24, 2016
“Train Law and Special Business Law”
Sacred Heart College, Lucena City
February 28, 2018

“Imbibing the Business Culture – Breakthrough

Excellence” Leon Guinto Memorial College, Inc. Atimonan,
Quezon January 26, 2018

“Academics Big Day Year 3: Beyond

Bounderies” Lyceum of the Philippines
University, Batangas City January 21, 2018

“CPA Licensure Exam Updates” Quezon Roadshow

Manuel S. Enverga University Foundation Candelaria,
Quezon December 3, 2017

“Transcendence: Millenials Take the Lead”

Leon Guinto Memorial College, Inc. Atimonan, Quezon
January 27, 2017

October 18, 2015 Civil Service Examination Passer (Professional Level),

Computer literate and proficient in Microsoft office application and
internet technology with effective researching skills,
Proficient in written and oral communication, particularly in English and Filipino,
Highly critical thinker with accuracy and attention to details,
Willing to undergo training and highly adaptable to any working conditions, and,
Possess strong sense of responsibility and interpersonal and relationship
building skills.

Bureau of Internal Revenue, RDO No. 61

On-The-Job Training
2017, 300 Hours
Special Program of Employment for
Students Municipality of Atimonan and
R4-DOLE Clerk/Enumerator
2017, 20 Days

Municipal Budget Office

Municipality of Atimonan
Office Staff / Job Order Employee
January 2016 to June 2016

Jorge C. Andanar, CPA

College Registrar and CBA
Chairman Leon Guinto Memorial
College, Inc. 0995-100-1527

Catherine M. Alvarez
Municipal Budget
Officer Municipality of
Atimonan (043) 316-
4939

I hereby certify that the above information are true and correct to best of my
knowledge and beliefs.

KHRISTINE MAE S. DANIEL

 SHAMMEL S. SANTANDER

Degree: Bachelor of Science in Accountancy

Inaclagan-Sitio Sto Anghel, Atimonan,
Quezon
0955-968-8338
[email protected]

To be employed and put my knowledge and skills into practice,

to further develop and broaden my experience, and to enhance my
ability and competency in my profession

PERSONAL DATA

Birth date March 2, 1998

Age 20
Gender Female
Status Single
Citizenship Filipino
Religion Roman Catholic

Computer literate and proficient in Microsoft office application

Efficient in time management and able to adjust in work condition

Able to understand and speak English.

Willing to undergo training and seminars.

Enthusiastic, fast learner and active.
On the Job Training/Internship
Philippine National Bank-Atimonan
Branch April-May 2017

Clerk/Enumerator
Special Program for Employment of Students
LGU-Atimonan Quezon
2014-2017

Innovative Research Award 2018

21st Commencement Exercises
LGMC Gymnasium, Atimonan Quezon

Leadership Award 2017

Special program for Employment of Students LGU-
Atimonan Quezon

4th Place LGMC Accounting Quiz Bowl 2016 4th

place LGMC Accounting Quiz Bowl 2015 LGMC
Junior Philippine Institute of Accountants

3rd Place LGMC Scholarship 2014

Leon Guinto Memorial College, Inc.

Tertiary
Leon Guinto Memorial College Inc.
Bachelor of Science in Accountancy
Year Graduated, April 2018

Secondary
Atimonan National Comprehensive High School Year
Graduated, March 2014

Primary
Sapaan Elementary School
Elementary School
Year Graduated, March 2010
JORGE C. ANDANAR, CPA
College Registrar and Chairman of College in Business and Accountancy Leon
Guinto Memorial College
0995-100-1527

ROYCE P. PARDO, CPA

Cost Accounting Teacher Leon
Guinto Memorial College 0917-
540-5600
0917-540-5600

MA. ISABEL MAKAYAN

PNB Manager-Atimonan Branch
Atimonan, Quezon

I hereby certify that the above information are true and correct to best of my
knowledge and beliefs.

SHAMMEL S. SANTANDER