2014
FSUU-Accontancy Program
Aparece,Marjorielou B.
Cadorna,Vina O.
Casinillo,Kissey Jen T.
Gumban,Christine Grace A.
Lorete,John Paul Niňo
R.Mosende,Nerissa G.
[COPYRIGHT PROTECTED DOCUMENT]
All right reserved. Merely for reference purposes, no part of this publication may be reproduced or
copied and paste to other document same in nature .Feasibility Study Plagiarism is prohibited.
1
All Rights Reserved.| FSUU-Accontancy Program
Father Saturnino Urios University
Accountancy Program
Feasibility Study
“Lovebada Bango Laundry Shop”
Prepared by:
Nerissa G. Mosende
Kissey Jen T. Casinillo
Christine Grace A. Gumban
John Paul Niňo R. Lorete
Marjorielou B. Aparece
Vina O. Cadorna
Adviser:
Mr. Daniel Nemeses C. Espina, CPA
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TABLE OF CONTENTS
I.
II.
III.
IV.
Introduction
a) Rationale
b) Business Description
c) Business Name
d) Business Location
e) Service Description
Marketing Aspect
a) Area Covered
b) Target Market
c) Competitors
d) Market Need
e) Demand Analysis
f) Supply Analysis
g) Laundry Services Offered
h) Prices
i) Income Projection
j) Advertising and Promotion
k) SWOT Analysis
Technical Aspect
a) Commercial Space for rent
b) Space Layout
c) Operating Procedure
d) Filtration Process
e) Operational Equipments
f) Laundry Cleaning Products
g) Supplies
h) Costing
Management Aspect
a) Form of Ownership
b) Business Culture
c) Manpower Requirements
d) Organizational Structure
e) Job Description and Duties
f) Segregation of Duties
g) Management Style
h) Motivating & Rewarding Employees
1
1
2
2
2
4
5
7
8
9
9
10
11
13
14
15
17
18
20
23
27
32
35
39
40
43
44
45
45
46
47
49
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V.
VI.
VII.
Financial Aspect
a) Considerations
b) Pre-Operating Expenses
c) Projected Balance Sheet
d) Projected Income Statement
e) Projected Statement of Cash Flows
f) Statements in Changes in Equity
g) Return on Investment
h) Payback Period
Socio Economic Aspect
a) Contribution to the Economy
b) Contribution to the Government
c) Contribution to the Society
d) Environmental Impact
Conclusion and Recommendation
50
51
52
53
55
56
56
56
57
57
57
58
59
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CHAPTER 1
INTRODUCTION
Rationale
The fast change of trend from individualized laundry to
commercial laundry services coincides with rapid technological
change as well as the fast, changing and modern lifestyle of
Filipinos.
Laundry business is an easy and convenient business to
start. It is not capital or management intensive. You can start
this business right from home and grow from there. It is a very
lucrative business, as not everyone that puts on clothes has the
time to do the laundry. Based on the survey conducted the reasons
why they go to the laundry shops instead of doing it to their
own are because of tight schedule especially those students who
have a lot of extracurricular activities in school, others says
they don’t like washing their clothes because it is just a waste
of time (laziness), and some boarding houses didn’t allowed
washing clothes in consideration to the consumption of water.
This is the reason why there is chance of making a lot of
money because this people will definitely seek your services.
Business Description
Butuan City as a highly urbanized city in the Philippines
emerged too many businesses nowadays. It can be seen that
numerous schools and establishment are spotted around the area
urging to look for convenience due to their busy time. And this
gives a positive outlook for some businessmen who were just
started in the industry to put their investment in certain
businesses particularly the Laundry business in which the field
is not that much penetrated.
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Business Name
The right name can make your company the talk of the town
especially when it is unique and probably would catch their
attention. Therefore, the proposed name of our business is “Love
Vada Bango Laundry Shop” originated from the word “labada bango
with love” that means we will wash clothes with love, passion
and fragrance.
Fig. 1 Business Logo
Business Location
The proposed business location is located at Lopez Jaena
Extension, Barangay Tandang Sora, Butuan City.
This location composes of schools like FSUU, SJIT and BCC;
establishments; apartments and boarding houses.
Service Description
The Business concept of LOVEBADA BANGO is typically
homogeneous to those other existing Laundry shops in the city.
But certain things will make it stand and that includes its
quality services, professionalism of its personnel towards its
customers.
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Quality Services - The quality services really matters in
LOVEBADA BANGO Laundry. It is planned to provide services such
as washing, pressing, ironing and folding customer’s clothes and
garments. It will be using quality equipments and machineries
that could greatly help and make the business exist. It shall
offer affordable cleaning too, making sure that the output will
reach its quality standard
Professionalism towards customers - Personnel of the shop will
surely build professional customer relationship. Unlike the
other personnel/workers that may just think business is easy as
doing what is assigned to them and this normally getting
payments from customers after doing/giving what the latter
wants. More than that, it would be better to set your customers
as part of the top priority. In addition, the team will take
care of each customer item with great respect since personal
things are engaged in the business.
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Chapter II
MARKETING ASPECT
The marketing aspect will serve as the basis of the
financial section through the projected demand. This includes
the area covered, target market, proposed location, competitors,
the demand and supply, demand and supply gap analysis, marketing
program and SWOT analysis.
Area Covered
This is to identify a point or an area of study. Geographic
target is in Butuan City primarily located at this Barangays
Sikatuna, Humabon and Tandang Sora 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 FSUU, SJIT and BCC;
establishments; apartments and boarding houses. Out from these
components we will determine the population of those living in
apartments and boarding houses where our target market is
situated.
Fig. 2 Area covered Brgy. Humabon
Fig. 3 Area covered Brgy. Sikatuna
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Fig. 4 Area covered Brgy. Tandang Sora
Area Covered
Brgy. Humabon
Brgy.
Sikatuna
Brgy. Tandang
Sora
Total
No. Apartments
and Boarding
houses
32
Total
Population
(actual
data)
523
23
72
127
670
1,706
2,899
Fig. 5 Actual Population
Notes:
1. The number of apartments and boarding houses were gathered
from the list of registered business establishments as of
June 2014 from City Hall Butuan City.
2. The Population is based from actual data which is gathered
by the researchers while doing the survey and interview
with the Caretakers/Owners.
Target Market
Our target market will determine from those living in
apartments and boarding houses within the mentioned Barangays
such as:
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1. Young professionals
2. Students
3. Family
This group of market will be described their need according to
their lifestyle considering a number of potential influences on
buying behavior including the attitudes, expectations and
activities of consumers.
In order to know the population demand for the proposed
laundry business for that area in Lopez Jaena Extension, we used
the “slovins” formula in determining the number of respondents
for the survey questionnaires. We use the actual number of
residents in apartments and boarding houses total 2,899(fig.5)
and the margin of error would be 10%. Margin of error denotes
the allowed probability of committing an error in selecting a
small representative of the population.
N = n / (1 + ne^2)
Therefore:
N = Number of samples
n = Total population
e = Margin of error
N =
N =
Barangay
brgy. Humabon
Brgy. Sikatuna
Brgy. Tandang Sora
2899
(1+2899*.10*.10)
96.67 round of to 97
Number of population Distribution Ratio total Respondents Distribution of respondents
523
670
1706
2899
18.0%
23.1%
58.8%
100.0%
97
97
97
17
22
57
97
Fig. 6 Questionnaire Distributions
Notes:
1. The number of population is based on Actual.
2. The ratio for distribution of respondents is based on the
Specific population in a barangay over total target
population and is multiplied to number of respondents.
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Respondents Classifications
1%
21%
students
78%
working
other
Fig. 7 Respondents Classification
Based on the survey, the graph shows that 78% are students,
21 % from working and others 1% coming from family section.
Competitors
We have gathered data of the list of the Laundry Shops
registered as of June 2014 in Butuan City. Below are the lists:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
ALL SEASON STEAM LAUNDRY – R. CALO ST. 5, Diego Silang
LIM’S HOUSE OF LINEN – 12, Bancasi
WASH ‘N DRI LAUNDRY SHOP – Dagohoy
KITZ N’ CHARLS LAUNDRY – MONTILLA BLVD. DOOR 1-CINDERELLA
ARCADE, Ong Yiu
VIA’S LAUNDRY SHOP – 084 MONTILLA BLVD., New Society
Village
LAUNDRY KO - #162 J.C. AQUINO AVE., Bayanihan
ECS LAUNDRY SHOPPE – 2, Libertad
KRISSIE’S SO CLEAN, SO BRIGHT CLOTH CARE – J.C. AQUINO
AVE., Lapu Lapu
R & D BUBBLE WASH AND LAUNDRY – PRINCESS HOME ARCADE,
Villa Kananga
NRL LAUNDRY TIM – 327 CAPITOL DRIVE, Dagohoy
KWIK KLEEN LAUNDRY SHOP – ZONE – 5 R CALO ST, Diego Silang
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Fig. 8 Competitors location
Notes:


Among those shops listed above, highlighted is the nearest
competitor which is 500 meters and 568.48 meters away from
the area where the target market resides.
The following competitors are not within our covered area
from the mentioned barangays.
Market Need
The survey says that the needs of the market are of the
following factors enumerated below. Therefore this would be our
basis to better achieve customer satisfaction and they will be
able to continue availing the service.
 Quality of cleanliness
 Price
 Timeliness and customer service
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MARKET NEED
12%
Quality of cleanliness
29%
59%
Price
Timeliness
Fig. 9. Market Need
Area covered
Total Actual Population
(a)
Brgy. Humabon
Brgy. Sikatuna
Brgy. Tandang Sora
Total
523
670
1706
2899
Percentage of those Total Population who Estimated # of kls
who are willing
are willing to avail minimum per week
(b)
(axb)
(d)
82%
82%
82%
429
549
1399
2377
3
3
3
projected
demand
(in kilo)
1287
1648
4197
7132
Fig. 10. Demand Analysis
Services
Working
Hours per
day
Machine Wash 8 hours
Hand Wash
Total No. of
Loads
Estimated
Cycle Time
per load
(hour)
2 hours
3 hours
Estimated
No. of loads
Capacity Per
allowed per
Load
day
(b)X 4
(a)
machines
4
1
30 kg
5 kg
Load
Capacity
per day
(axb=c)
Working
days
(d)
Loading
Capacity Per
week
(cxd=e)Kilo
120 kg
5 kg
6 days
6 days
720
30
750
Fig. 11. Supply Analysis
Demand
Supply
Demand and Supply Gap
7132
750
6382
Fig.12. Demand and Supply Gap Analysis
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Note:
1. Demand Analysis (Fig.10), projected demand is the estimated
kilo of clothes per week that needs to be catered by our
services.
2. Supply analysis (Fig.11), Loading Capacity per week is the
normal operating capacity that the Laundry shop can cater.
3. As seen in Fig.12, there will be a gap of 6382 (7132-750)
kilos that will never be catered. Hence which is a good
thing, since the demand for our services is higher than
what we can give. Therefore the threats of competitors to
rise up in the same area (sharing of market) won’t
materially affect our sales projection.
Laundry Services Offered
The following are the list of the services to be offered based
on the needs of the market:
1. Wash-Dry-Press
2. Wash-Dry-Fold
3. Hand washing
Services to Avail
7%
19%
Wash-dry-press
wash-dry-fold
Handwashing
74%
Fig. 13 Services to avail
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How often do you do laundry?
Thrice a week
3%
Twice a week
19%
Once a week
78%
Fig. 14
Prices
Wash Dry Fold
(Per Kilo)
Wash Dry Press
(Per Kilo)
Handwashing
(Per kilo)
Special Items
(Per kilo)
P 23.00
P 65.00
Wash-Dry-fold P 60.00
Minimum of 3 kg
Without hanger P 65
Wash-Dry-Press P 65.00
Jeans/Maong - P 30
Bed Sheet/Towel - P 45
Comforter - P 65
Fig. 15 Prices
How much the market is willing to spend for laundry service?
Wash-Dry-Fold
17%
P23/kg
83%
P25/kg
Fig. 16 Wash-Dry-Fold
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Notes:

On the survey provided, 83% will go for cost of
23.00/min.3kls and only 17% will go for cost of
25.00/min.3kls.
Fig. 17 Wash-Dry-Press
Note
 On the survey provided, 72% will go for cost of
65.00/min.3kls and only 28% for the 70.00/min.3kls.
This is in consideration as a student price.
Bring to Laundry Shop
Yes
38%
No
62%
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Fig. 18
Fig. 19
Based on this survey 38% of the market says yes that they
bring their clothes to the laundry shop, while the
remaining 62% says no. Therefore, out of the 38% that says
yes, 8% of them only bring 2 kilos and below, 21% brings 3
kilos, 34% brings 4 kilos and the remaining 37% brings 5
kilos and above.
Income Projection
SERVICE REVENUE PROJECTION
Wash-Dry-Fold
Wash-Dry-Press (with hanger)
Wash-Dry-Press (w/o hanger)
Hand Washing (Wash-Dry-Fold)
Hand Washing (Wash-Dry-Press)
Special Items
Jeans/Maong
Bed Sheet/Towel
Comforter
TOTAL REVENUE
Estimated Kg. of
Laundry per Week
300
72
73
25
25
85
85
85
750
Rate per Kg.
₱
.00
70
65
60
65
30
45
65
Total Sales No. of Weeks in
per Week
a Year
6,900.00
52
5,040.00
52
4,745.00
52
1,500.00
52
1,625.00
52
2,550.00
3,825.00
5,525.00
52
52
52
Total Sales in
Year 1
₱ 58,800.00
262,080.00
246,740.00
78,000.00
84,500.00
132,600.00
198,900.00
287,300.00
₱ ,64 ,
.
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Advertising and Promotion
This refers to raising customer awareness of the services and
creating services loyalty.
1. Leaflets and flyers – will be distributed upon the opening
of the shop so that the market will be able to be informed
that it is already available.
The leaflets and flyers will be personally done by the
owner of the shop which has a budgeted amount of P 3,000.00
Leaflets will include the following information:
- Services offered
- Price list
- Company address and contact number
- Business hours
- Business slogan
2. Tarpaulin – to be placed in front of the shop. The cost
would be P 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.
To avail the discount
Laundry Requirement
Discount
Points
30 kls/mo. 40 kls/mo. 50kls/mo
3%
4%
5%
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.
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Fig. 20
SWOT ANALYSIS
I.
Strengths









II.
Using machines with quality and brand
High profitability because it is more accessible to
market
Quality output and faster service
The location is on the main city nearest to the
boarding houses, apartments and schools
Location is just a walking distance
Prices are relative, competitive and accords to what
the customers want
Does not need a large amount of capital
Promotion strategies – social networking sites is very
accessible as well
Accessibility of the location
Weaknesses

Lack of experience as this will be the first time to
conquer the market in the said location
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
III.
Opportunities



IV.
As the machines with brand and quality is expensive,
maintenance will be quite expensive as well
Continuous development of the city with having new
establishments for residential (apartments and
boarding houses)
Students, working professionals having lack of time in
doing their own laundry
Only two competitors nearest which is 500 meters and
568.48 meters away from location
Threats


Price variations
Future competition
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Chapter III
TECHNICAL ASPECT
This chapter provides information
that
includes
the
structures and the floor plan, operating procedures/processes
that are essential to the overall operation of the business,
proposed equipment, machineries and supplies together with their
descriptions and specifications.
Commercial Space for Rent
The space will undergo some sort of renovation just to
maximize the space intended for the business since the space is
not that large enough to settle all the equipments or other
furniture. The rent will be 2 months deposit and one month
advance total 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
Cost
Description of Jobs
Fabrication and Installation of the
following:
Cabinets
Counter tables
Divisions
Ironing Board
Total Cost for Furnitures and
Fixtures
Leasehold Improvements
Electrical works for the lights and
connections to the machines including
the materials and labor
Painting including materials and
labor
Plumbing works for the installation
of water connections to the machines
and drainage system (septic tank)
TOTAL
5,500.00
6,100.00
5,200.00
4,000.00
20,800.00
3,000.00
3,500.00
12,000.00
18,500.00
Fig. 21
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Space Lay out
Fig. 22
The floor plan was designed intended to facilitate the work
flow and show how the space looks like.
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Image of the Actual Space
Fig. 23
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Operating Procedure
Fig 24. Operating Procedure
The above chart shows
explained as below:
the
laundry
process.
Each
process
is
1. Tagging - the clothes are firstly tagged with a specific
number, mentioned in the invoice given to customers. This
procedure is used for identification of clothes once ready
for collection for customers.
2. Sorting - After tagging the clothes are arranged in
different sets. Some people will sort by color. Other sort
by fabric type.
3. Pre-treatment of clothes – soaking in hot water.
4. Washing - The clothes are washed in washing machine using
detergent washing powder and or bleach on white.
5. Drying - The clothes washed are transferred to dryers.
(Note: one of the machine are automatic dry)
6. Packing - Once pressed, the clothes are properly hanged and
covered in the plastic wrap and then tagged so that it can
be easily identified.
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Receiving and Tagging
1. Note the time that the items received.
2. Check the item against the laundry list.
- Make sure the item received matched the item listed on
the laundry list.
3. Tag each laundry items.
4. Check for damage and lost and found items.
5. Fill out in the separate logbook for lost and found items.
- Record the time, date, name, description of the item
6. Place the item in a plastic bag and surrender it to the
supervisor.
7. Record the laundry items according to company procedures.
- Record the date, name of customer, time received, name of
the attendant, signature and remarks.
8. Sort each item according to weight and color (heavy, white,
colored and damaged)
- Put damaged item to separate basket
9. Prioritize express items.
Wash Dry Fold per 10 kilo wash load

Thin Garments including clothing, bed sheets, curtains, and
towels
1. 30 minutes washing time
2. 4 scoops of detergent soap and 1 cup of fabric
softener
3. 25 to 30 minutes drying time
4. Quality checking of clothes
5. Approximately 30 mins for folding

Thick Garments such as blankets and comforters
1. 30 minutes washing time
2. 4 scoops of detergent soap and 1 cup of fabric
softener
3. 30 minutes drying time
4. Quality checking of clothes
5. Approximately 1 hour for folding
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
Pressing Service
1. Inspection of clothes for pressing if the fabric
allows pressing and specific temperature requirements
2. Segregation
of
clothes
according
to
size
and
temperature requirement for pressing.
3. Pressing of clothes requiring high temperature and
folding.
4. Pressing of clothes requiring medium to low heat
temperature and folding.
5. Segregation
of
clothes
according
to
tag,
identifications and tagging for pick up

Hand Washing Process
1. Clothes are inspected for washing requirement symbol.
2. Clothes are initially soaked and rinse in lukewarm
water to loosen up the fabric for easy cleaning.
3. Clothes are soaked in lukewarm water with detergent
for about 8 minutes
4. Clothes are hand washed with bar soap and bleach (if
needed)
5. Clothes are soaked and rinse in cold water for rinsing
twice
6. On the third rinsing procedure, rinsing procedure,
clothes would be soaked and rinse in cold water with
fabric conditioner
7. Clothes are to be tumble dried in minimum time
according to fabric requirement
8. Clothes are segregated and folded according to tag
identification
9. Clothes are bagged for pick up
Removing Stain
1. Prepare the necessary materials.
(gloves,cotton cloth, stain remover, laundry basket)
2. Lay the cotton cloth on your work area - cotton cloth
absorbs the stain while it is being removed.
3. Turn the garments to its wrong side.
4. Lay the stained part of the garment on the cotton cloth.
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5. Wear protective equipment - Gloves protect your hands from
harsh effect of chemicals.
6. Apply stain remover and gently scrub the area. Apply more
stain remover as necessary for stubborn stains; soak the
garments for 5-15 mins.
7. Check if the stain has been removed.
8. Place the garment in a basket for laundry.
Notes:
1. First come first serve basis for laundry service.
2. If in case customer will request for quick delivery
additional charge of P 5.00.
Filtration Process – Environmental Impact
Step 1:
The higher hole was inserted on
the side of the washing waste
pipe, and the lower hole is for
the pipe to the canal.
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Step 2:
Vermin proof lid on the grey
water filter box. It comes with
a secure lid, so that will also
deter vermin.
Step 3:
Larger filter stones layer the
base of the black box.
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Step 4:
Smaller filter stones were laid
on top of the larger stone.
Step 5:
A couple of layers of shade
cloth to hold the sand.
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Step 6:
A layer of clean sand.
Step 7:
Test run
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Operational Equipments
Electrolux EWT904 - 9kg Top
Load Washing Machine with
T-Drive Washing Technology
Price: 22,395.00
Quantity: 2
Life Expectancy: 5 years
Body Type: Top-load washer
Total Capacity Washing
Capacity: 9kg
Number of Wash Cycles: 11
Spin Speed: 850 rpm
Dimensions: 67 x 107 x 68
cm
Drum and Interior Finish:
Stainless steel
Eco-friendly
Certification(s)
3
ticks(WELS)
Eco-friendly Feature(s):
Load Selector - Low Middle - High, Deep / Eco
Rinse
Material(s):
Zinc-coated
Body
Screen Technology
LED
light Indicator and time
display, Electronic Control
Wash Cycle Modes:
Regular
Wash, Fast Wash, Colour,
Delicates, Heavy Soil,
Woollens
Control Panel Programmes
in single knob control
Timers: Soak and delay end
function
Dispensers: Detergent,
Bleach dispenser drawer
Center Fabric Softener
Holder
Supplier:
Electrolux
located
at
the
Robinsons
Appliances
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Health Features:
T-DRIVE
washing technology: 35%
cleaner washing
performance: Anti-residue
system
Water Efficiency: 3
ticks(WELS) Water
consumption: 8.80 L /kg
Regular wash
Noise Reduction: Stabilised
Belt-driven System
Indicators: LED Remaining
Time Display
Languages Supported
(OSD/Menu)
English
Quick Menu Options Soaking
Function- 45,30,15 min
Rinse Function - Extra,
Deep,Eco,Fast
Power Supply: 220-240 V/50
Hz
Warranty: 2 years warranty
WM-2011/007953
7kg Sensor Dry Dryer with
Iron Aid - EDS7051
Price:
18,995.00
Quantity: 2
Life Expectancy: 5 years
Body Type: Front-load Dryer
Total Capacity Drying
Capacity: 7kg
Number of Wash Cycles: 6
Spin Speed: No
Stackable: Yes
Dimensions: 600 x 845 x 620
Drum and Interior Finish:
Stainless Steel
Energy Consumption: Drying
Per Cycle: 4.46 kWh
Eco-friendly
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Certification(s):ENERGY
EFFICIENCY (MELS) - 1 ticks
Eco-friendly Feature(s):
Auto Sensing, Iron-aid
function, Reverse Tumbling
Technology
Material(s): Galvanised
Zinc-coated Body
Screen Technology: LCD
light Indicator and
Electronic Control
Wash Cycle Modes:
Normal/Delicate/Airing/90mi
n/60min/30min
Height with Lid
Open:Electronic Control
Panel
Timers:
3/6/9 hours
Safety Features
:
Safety Cut-off, Door lock
Indicators:
Drying /
Airing / End
Languages Supported
(OSD/Menu):
English
Power Supply: 220-240 V/50
Hz
Packaging Weight:
32kg
Included Accessories:
Venting kit
Warranty: 2 years warranty
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4 CYLINDER 5 SPEED SUZUKI VAN TYPE WITH
AIRCON - Used
Php 95,000.00
Life Expectancy: 5 years
Water Tank
Storage in case there will be
water disruption.
Php 10,000.00
2in1,blower and suction- 1/2hp,
200watts,20" x 20"
Exhaust Fan
Php 6,000.00
1 pc. Of 120kls. Weighing Scale
Php 3,500.00
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34
1 pc. Of Calculator
Php 200.00
Water Hose 50ft
Php 1,500.00
2 pcs. Of Steam Flat Iron
Php 1,095.00 each
1
set
of
Dataworx
Computer Package (Black)
Budget
Php 11,879.50
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1 pc. of Plastic Container (for
filtration process)
Php 739.75
1 sq.meter of Black Shade Cloth
Php 100.00
Laundry Cleaning Products
We choose to have a one supplier for our supplies to be use
for the laundry process.
Name of the Supplier
Branch
Access
Website
Alternative Supplier
Address
Access
PowerClean Chemicals
KM 5 Buhangin Highway Corner
Pag-asa St. Davao City
Order Online
http://www.powerclean.com.ph/
Villa Fidelina
Ochoa Ave.cor.Lauraville
Subd.,Brgy.Limaha, Butuan City
Direct Buying
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Supreme Power Detergent
Description:
High Density Power Detergent
with supreme performance, 100%
biodegradable active, antibacterial and optical
brightener, no odor soaking,
and no chalk. Ideal for
Handwash and machine wash.
12 Sacks – 25 kg each
Life Expectancy : 1 year
Price: P 19,500.00 @ 1,625 per
sack
Fabric Softener
Description:
A concentrated liquid fabric
softener that soften and leaves
a fresh scent on fabrics,
soluble in cold and hot water.
With various scents suited to
different personalities.
40 Gallons
Life Expectancy : 1 year
Price : P 7,600.00 @ 190 per
gallon
Liquid Bleach
Description:
Mild, safe chlorine bleach for
all purpose cleaning and
disinfection. Contains sodium
hypochlorite and releases 5-7 %
available chlorine that will
react with your fabric stain.
Effective at low temperature,
fast action and removes
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37
stubborn stain.
40 Gallons
Life Expectancy : 1 year
Price : P 3,280.00 @ 82 per
gallon
Paint, Oil and Grease Remover
Description:
Is a fast acting liquid spot
cleaner especially formulated
to remove paint, oil and grease
on fabric and other surfaces
without affecting color and
quality. This can also remove
unwanted bubble gum on hard
surfaces.
10 gallons
Life Expectancy : 1 year
Price : P 5,000.00 @ 500 per
gallon
Fabric Freshener
Description:
Is a water based scent
especially formulated to
eliminate undesirable odors and
enhance the freshness of newly
washed clothes. It comes in
pleasant smelling dawny,
comfort fashion and lavender
scent
40 Gallons
Life Expectancy : 1 year
Price : P 10,000.00 @ 250 per
gallon
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Liquid Detergent
Description:
A concentrated liquid solution
which has mild surfactant
system effective for color fast
Supplies
2 pairs of Rubber Gloves
Life Expectancy : 1 year
Php 199.00 @ 99.50 each
10 pcs. Of Laundry Basket
Life Expectancy:1 year
Php 2,000.00 @ 200 each
3 pcs. Of Dipper
Life Expectancy:1 year
Php 90.00 @ 30.00 each
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144 pcs x 10. Plastic Hangers
Life Expectancy: 1 yr
Php 4,000.00 @ 400.00 for 144
Face Mask Ear Loop
(50 pcs/box)
Disposable item
Php 100.00
Big Plastic Basin - 5
Life Expectancy: 1 yr
Php 2,250.00 @ 450.00 each
50 rolls
Roll
of
Tagging
Paper
Life Expectancy: 1 year
Php 9,000.00 @ 180.00 each
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40
Ball Pens
Life Expectancy:1 year
Php 60.00 @ 5.00 each
40 pcs. Of Scotch Tape
Life Expectancy: 1 year
Php 500.00
@12.50each
Record Book- 300 Pages
Life Expectancy: 1 year
Php 100.00
10 pcs. For
Order Slip
500
sheets
Life Expectancy: 1 year
Php 1,687.50 @337.50 each
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of
10 pcs. For
Delivery Slip
500
sheets
of
Life Expectancy: 1 year
Php 2,600.00
Plastics
Units
16x24
20x30
200 pcs.
100 pcs.
20x40
24x36
24x60
1 year
100 pcs.
100 pcs.
100 pcs.
1,770*2
Sando
Bags
310.00 Large
165.00 Extra
Large
285.00 Jumbo
390.00
620.00
3,540.00
Units
100 pcs.
100 pcs.
140.00
185.00
100 pcs.
330.00
655*2
1,310.00
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42
Cost of Services
COSTING PER 10 kg Process
FOR WASHING MACHINE PROCESS
( WDF 8kg,WDP 2kg)*a
Direct Material
Detergent (250grams)*b
Fabric Softener (1 cup)*c
Fabric Freshener (1 cup)*d
Liquid Bleach( 1 cup)*e
Water (522L)*g
Total Direct Material Cost
DM Cost per Unit*f
Direct Labor
Wash-dry-fold DL allocation *h
Wash-dry-press DL allocation*h
Total Direct Labor Cost
DL Cost per Unit*i
Overhead-Electricity Consumption
Machine Washing(30min)
Machine 1 (.600kwh)*j
Machine 2 (.600kwh)*j
Tumble Dryer(30 min)
Dryer1 (4.46kwh)*k
Dryer2 (4.46kwh)*k
Pressing (15 min)
Flat Iron (1.258kwh)*l
Total Overhead Cost
Overhead Cost per unit
TOTAL COST
Php
Php
Php
Php
Php
4.86 Php
Php
16.25
11.88
15.63
5.13
2.54
48.88
Wash-dry-fold
8kg
Php
13.00
Php
9.50
Php
12.50
Php
4.10
Php
2.03
Php
39.10
Php
4.89
Wash-dry-press
2kg
Php
3.25
Php
2.38
Php
3.13
Php
1.03
Php
0.51
Php
9.78
Php
4.89
Php
Php
Php
76.57 Php
89.33
165.90 Php
Php
76.57
Php
76.57 Php
9.57 Php
89.33
89.33
11.17
Php 7.9734 Php
Php 7.9734 Php
2.39 Php
2.39 Php
1.91 Php
1.91 Php
0.48
0.48
Php 7.9734 Php
Php 7.9734 Php
17.78 Php
17.78 Php
14.22 Php
14.22 Php
3.56
3.56
Php 7.9734 Php
Php
2.51
40.35 Php
Php
Php
32.28 Php
4.03 Php
2.51
10.58
1.32
Php
255.12 Php
Php
147.95 Php
18.49 Php
109.68
54.84
Rate
Total Cost of Process
Total Cost per Unit
COSTING
HANDWASHING
Total Cost
Direct Material
Detergent (125grams)*m
Fabric Softener (1/2cup)*n
Fabric Freshener (1/2 cup)*o
Liquid Bleach( 1/2cup)*p
Water (391.5L)*q
Total Direct Material
DM Cost per Unit*r
4.86
Direct Labor
Handwash-dry-fold *s
total Direct Labor
Direct Labor unit cost
Overhead
Tumble Dryer(15 min)
Dryer1 (4.46kwh)*t
Total Overhead
Cost per unit
8.13
5.94
7.81
2.56
1.90
26.34
5.27
252.24
252.24
50.45
7.9734
Total Handwashing Cost
Total Cost per unit
FSUU-Accontancy Program | All Rights Reserved.
8.89
8.89
1.78
287.47
57.49
43
CHAPTER IV
MANAGEMENT ASPECT
This chapter provides information about the management aspect
of the business. Basically, it shows the form of ownership which
the business have. This includes how business will be managed,
the control and supervision matters and even the start-up cost
of the business.
It will also provide you with information
about the basic requirements and procedures in registering the
business and the government agencies that the business is
related to.
The
management
aspect
will
determine
the
successful
realization of the business. That’s why the study of the
officers, key personnel and manpower requirements will be very
important matter in this chapter. Business culture which
includes the operating schedule and the day to day monitoring
will also be part of this chapter.
Form of Ownership
I.
The business will be sole proprietorship.
- Manage
- Control
- Supervise
- Start Up cost
A sole proprietorship is chosen since it is one of
the least expensive business structures to begin.
Only one person owns a sole proprietorship business,
the legal requirements involve simply registering a
business name and obtaining any relevant licenses or
permits that relate to the specific type of
business.
Many sole proprietorship businesses have very low
start-up costs as compared with other types of
business
structures.
The
start-up
investment
typically includes the basic costs for equipment,
marketing and office utilities. However, the amount
of the start-up costs may vary, depending on the
specific type of business.
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44
II.
Registration
Essentially, a sole proprietor business legally
comes into existence when the business owner
registers the business name and obtains any relevant
business licenses.
Government agencies for registration
 Department of Trade and Industry
 Local Government Units where your business is
located:
a. Barangay
b. Mayor’s Office
 Bureau of Internal Revenue
 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:
a. SSS
b. PhilHealth
c. Pag-ibig – HDMF
Basic requirements and procedure in registering a Sole
Proprietor Business
1. Register a business name at DTI
1) Come up with three business names
2) Search in the DTI’s website if there is an
existing name similar to yours
3) If your business name is available, fill up
business name (BN) Application Form
4) Submit your completed BN application form to
DTI’s offices/branch
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5) Wait for your DTI Certificate of
Registration
2. Registration with Barangay
1) Go to the barangay where your business is
located to secure and fill-up application
form
2) Submit your completed application form
together with the following:
 Certificate of Business Registration
from DTI
 Two valid IDs
 Proof of Address such as Contract of
Lease
3) Claim Barangay Certificate of Business
Registration
3. Register your business in the Mayor’s Office
1) Go to the municipal office where your
business is located to secure and fill-up
application form
2) Submit your completed application form
together with the following
 Certificate of Business Registration
from DTI
 Barangay Clearance Certificate
 Two valid ID
 Proof of Address such as Contract of
Lease
4. Register in the Bureau of Internal Revenue (BIR)
1) Go to Regional District Office where your
business is located
2) Fill-up the BIR Form 1901- Application for
Registration (for Sole Proprietor)
3) Submit completed registration form together
with the following
 Certificate of Business Registration
from DTI
 Barangay Clearance Certificate
 Mayor’s Business Permit
 Proof of Address such as Contract of
Lease
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 Valid ID
4) Pay the registration form (BIR form 0605)
5) Register your book of accounts and
receipts/invoices
6) Claim your Certificate of Registration (BIR
Form 2303)
Business Permit and Licenses
Registration with DTI
Registration with Barangay
Business Permit in Mayor's Office
Registration in BIR
Total
Amount of
Registration
215.00
100.00
5,027.00
500.00
5,842.00
Business Culture
I.
II.
Operating hours from 9:00 am to 6:00 pm – Mondays to
Saturdays
Break time: 12:00 to 1:00 PM
Day to day monitoring
The Inspector will monitor the employees’ attitude and
performances, the laundry process, the consistency and ongoing coaching and giving instructions to them.
-
Monitoring of sales
Inventory
Delivery and Pick-up
The pick-up and delivery will start at 9:00 am from
Monday to Saturday. Our customers will contact us, since we
are giving leaflets to them and posting tarpaulins in the
area. The customer and the counter clerk will set-up the
date of pick-up of laundry through telephone or cellphone,
prior to the date of pick-up in order to manage the route
in one way we can reduce the cost of gasoline. However, we
will charge ₱5.00 for every pick-up and delivery.
III.
Customer’s Account using Microsoft Excel
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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.
Manpower requirements
I.
Physical Requirements:
-
II.
-
Age must be 18-40 years old
Workers without bending, crouching or walking restrictions.
no skin allergies
Skills, Interests and Qualities
Must be graduate of Housekeeping NC II
practical skills to operate and adjust machinery
good attention to detail
willingness to do repetitive work
the ability to work methodically and follow instructions
willingness to work flexibly
good timekeeping skills
Has the ability to count and measure accurately.
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Organizational Structure
Route worker
pick up,deliver,collect
Machine
washers (2)
Inspector/Supervisor
Sorter tags and washer
Counter Clerk
Extractor
Operator(2)
Manager
Owner and Bookkeeper
extractor operator, Finishes
clothes (fold and press ,iron)
Job Description & Duties
I.
Machine washers
Weigh laundry and place it in huge washing machines.
Machine washers control the machine settings for each kind
of material. This includes setting the proper temperature,
washing speed and water and suds level and adding the right
amount of bleaches and rinses. After the laundry is washed
and rinsed,
II.
Counter clerk
Received laundries from customers, give back clean laundry,
scheduling the date of pick-up and delivery with the
customers, and billing.
III. Bookkeeper
Analyzing and recording the transaction and presenting the
reports on time.
III. Markers or sorters tag
Mark the laundries so that they can be returned to the
appropriate customer. They usually remove loose buttons and
mark items that need to be mended.
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IV.
Extractor operators
Place it in extractors, which spin most of the water out of
it. The laundry then goes to tumbler operators who put it
in drying machines that tumble it dry. Some items, such as
blankets and rugs, may be hung in heated rooms to dry.
V.
Inspector
Check the finished laundry. If it needs rewashing or
repressing, he sends it back to the proper department. He
sends some pieces to menders, who do repairs by hand or
machine. Assemblers collect all the items belonging to each
customer. Finally, baggers or bundle wrappers place the
laundry in bags or bundles and attach invoices, which
indicate how much money the customer owes.
VI.
Finishers
Fold and press the clean, dry laundry. When requested, they
press. They also may just fold and stack. Other finishers
work on shirts, ruffled curtains, blankets, or other items
that require special pressing and finishing. To get
professional results, they use forms designed for certain
parts of clothing, such as shirt sleeves, shirt collars, or
the bodies of skirts. They also use hand irons to finish
certain items that cannot be done on the forms. The
finished items are then folded or placed on hangers.
VII. Route workers
Pick up laundries at customers' homes. Market new customers
along their routes. They also deliver clean laundry, giving
invoices and collect payments.
Segregation of Duties
I.
II.
Single Duty
•
Route Worker
•
Bookkeeper-Owner
Duties may be desegregated
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•
Counter Clerk and the Inspector
•
Markers or sorters tag and Machine washers (could be
same person)
•
Extractor
person)
operator
and
the
Finisher(could
be
same
Management Style
I.
Hiring Process
The applicants are required to submit their resume on the
position that they are interested to apply for. The management
will immediately evaluate and sort those applicants. And whoever
passed in the next stage will be informed by means of a message
on mobile phones. Each of them will undergo a brief interview to
personally determine if they are fit physically and mentally to
the position they were applying for and not only that but also
to evaluate if they really have the skill and ability to stay at
the business.
And those who successfully overcome the process
shall submit their requirements for legal purpose employment.
II.
Safe Working Environment
Safe working environment keeps the employees free from any
hazards and it complies with the law providing safeties
especially to the business operated.
There are safety
precautions that should be apply, employees are segregated based
on their assigned jobs. They are required to wear gloves and
mask during the laundry process to avoid from skin irritations.
They are allowed to wear comfortable dress attire so that it
would not be hard for them to move freely. Personal hygiene is
appropriate to avoid disease or any illness, especially for
chemicals that contains strong solution.
There is specific baggage area for the employees where they can
place their bags or things to it. Their things will be check by
the assigned personnel or the owner before and after working
hours to avoid thief or any misappropriation of assets.
III. Training
Training is essential for the success of a business. Laundry
business requires training for its employees, especially it is
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51
in need of due care, as clothes one the basic needs of every
individual. Before being hired, employees will undergo some sort
of trainings for laundry process to evaluate if they have the
capabilities required for the position, and to ensure that they
will know how to properly do their jobs to give the customer the
satisfactions they are looking for. They will be evaluated as
necessary to test their working knowledge and improvements.
The PowerClean Chemicals Institute (PCLi) is our choice to be
the supplier of our laundry chemicals and they also offer
laundry seminar not only in Luzon but also to other regions in
the Philippines. We chose them because the lectures are based
from actual experience of running a laundry shop. They have wide
coverage of topics which covers the Business Management such as
Financial Aspect, Taxation, Marketing, Manpower, Machine and the
like. They provide continuous assistance, demo of laundry
chemicals and advice of laundry operations and management even
after the seminar. The speakers are experts in Laundry Business
in which they already trained more than 1,300 Laundry owners.
Affordable price of ₱1,500 each person for early registrants of
laundry shop session. They also continuously improve their
training facility with free wifi access.
The owner should understand his choice of employees and time
invested to train them results in a direct reflection in his
marketing efforts and money spent on those efforts. All of the
owner’s best intentions to provide a clean, well equipped,
multi-service, and attractive store to his customers will be
wasted if there are any employees who do not provide to his
customers the level of service, clean appearance, and customer
friendly attitude they expect and his deserve for his
investment.
At all times, the owner should remind his employees that their
top priority is their customer’s interests. From welcoming the
customers to the shop, to keeping the machines, and floors
clean, keeping bathrooms clean, and properly supplied, taking in
Wash-Dry-and Fold and Pressing, peacefully resolving customer
issues and complaints, and having that all important good
attitude. Monitor also the employees closely and fix any
employee problems immediately.
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Motivating & Rewarding Employees
1. Recognize and appreciate about the good things employees
do. They will do less negative and will strive to do more
of the positive things the owner is recognizing. It is far
easier to lead people to improved performances by thanking
them when they do it right than giving them grief when they
do it wrong.
2. Take a moment to celebrate like having a party. . It is too
easy to get so caught up in the daily struggle that you
never stop to recognize the good work you and your
attendants do.
3. Praise and recognize the star performers. Some of your
recognition budget should certainly go toward spotlighting
role model performances and role model employees. This
makes them feel good, encouraging them to stay on board and
keep trying hard. And it gives everyone a bit of
inspiration and a clearer idea of what you want employees
to shoot for.
4. Recognize good effort, not just results. When employees
have had a tough week, throw a mini-party for them. Bring
in some pizza, a cheesecake or whatever inspires the owner
and share it with the team. Or try writing a personal
thank-you card for each attendant – perhaps picking out a
different design for each and having some fun recognizing
individuals in your selection.
PAYROLL SCHEDULE (FIXED RATE)
Personnel
No.
Min.Wage/
Working
Monthly
Day
Days
Gross Pay
DEDUCTIONS
SSS Premium
ER
Total
PhilHealth Premium
EE
ER
EE
PAG-IBIG Premium
ER
Deductions
Net Monthly Pay
EE
Inspector/Supervisor
1
268.00
26
6,968.00
525.70
254.30
100.00
100.00
139.36
139.36
493.66
6,474.34
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
TOTAL PER ANNUM
27,872.00
2,102.80
1,017.20
400.00
400.00
557.44
557.44
1,974.64
38,846.04
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
Annual Withholding
tax
23,695.68
-
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CHAPTER V
FINANCIAL ASPECT
The purpose of this chapter is to project how much startup
capital is needed, sources of capital, return on investments and
other financial considerations.
Considerations
1. The owner shall invest P 500,000.00 in the business as
shown in the next page, which approximates the total preoperating expenses.
2. A service rendered is on cash basis.
3. The equipment and leasehold improvements are to be
depreciated on a straight-line basis.
4. For simplicity, all employees are presumed to be single
and that they have no dependents for purposes of
computing the withholding tax.
5. Income tax is computed using the tabular tax rate for
individuals provided by the National Internal Revenue
Code.
6. There are no other current liabilities aside from the
employee benefits and income tax since the entity pays
its obligations before the end of the year.
7. Owner/Manager will withdraw instead of salary.
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Pre - Operating Expenses
Machines
9kg Top Load Washing Machine with T-Drive
Washing Technology
7kg Sensor Dry Dryer with Iron Aid
89,580.00
75,980.00
165,560.00
Equipments
Water Tank
Exhaust fan
Weighing Scale
Steam Flat Iron
Computer Set
10,000.00
6,000.00
3,500.00
1,095.00
11,879.50
32,474.50
Vehicle
Multicab
150,000.00
11,500.00
18,500.00
Leasehold Improvements
Furnitures and Fixtures
Advertising Expenses
Leaflets and flyers
Tarpaulin
3,000.00
2,500.00
5,500.00
Gloves
Laundry Basket
Dipper
Hangers
Face Mask
Plastic Basin
Tagging paper
Ballpens
Scotch tape
Record Book
Calculator
Water Hose
Fire Extinguisher
Order Slip
Delivery Slip
Plastic Bag
1 sq.meter of Black Shade Cloth
Plastic Container (for filtration process)
Sando Bags
199.00
2,000.00
90.00
4,000.00
100.00
2,250.00
9,000.00
60.00
500.00
150.00
200.00
1,500.00
1,600.00
1,687.50
2,600.00
3,540.00
100.00
739.75
1,310.00
31,626.25
Supplies, etc.
Cleaning Products
Detergents
Fabric Softener
Fabric Freshener
Liquid Bleach
Paint Oil and Grease Remover
Duties and Licenses
Rent
TOTAL
2 months advance 1 month deposit
19,500.00
7,600.00
10,000.00
3,280.00
5,000.00
45,380.00
5,842.00
30,000.00
496,382.75
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Lovebada Bango
PROJECTED FIVE YEAR COMPARATIVE BALANCE SHEET
Year 1
Year 2
Year 3
Year 4
Year 5
ASSETS
Current Assets
Cash
Supplies Inventories
Total Current Assets
660,841.65
2,269.00
884,816.46
2,495.90
982,166.09
2,745.49
970,134.35
3,020.04
623,783.09
3,322.04
663,110.65
887,312.36
984,911.58
973,154.39
627,105.13
348,034.50
348,034.50
348,034.50
348,034.50
348,034.50
50,606.46
101,212.92
151,819.38
202,425.84
253,032.30
Non Current Assets
Equipments
Less: Accumulated Depreciation
Leasehold Improvements
11,500.00
11,500.00
11,500.00
11,500.00
11,500.00
Less: Accumulated Depreciation
2,300.00
4,600.00
6,900.00
9,200.00
11,500.00
Furnitures and Fixtures
Less: Accumulated Depreciation
18,500.00
3,700.00
18,500.00
7,400.00
18,500.00
11,100.00
18,500.00
14,800.00
18,500.00
18,500.00
PHP 321,428.04
PHP 264,821.58
PHP 208,215.12
PHP 151,608.66
PHP 95,002.20
PHP 984,538.69
PHP 1,152,133.94
PHP 1,193,126.70
PHP 1,124,763.05
PHP 722,107.33
4,680.00
4,680.00
Total Non Current Assets
Total assets
LIABILITIES & OWNER'S EQUITY
Current Liabilities
Due to SSS
Due to Philhealth
4,680.00
4,680.00
4,680.00
1,200.00
1,200.00
1,200.00
1,200.00
1,200.00
Due to PAG-IBIG
Income Tax Payable
1,672.32
178,435.64
1,672.32
232,529.88
1,672.32
286,127.25
1,672.32
345,084.35
1,672.32
410,577.16
Total Current Liabilities
PHP 185,987.96
PHP 240,082.20
PHP 293,679.57
PHP 352,636.67
PHP 418,129.48
0.00
0.00
0.00
0.00
0.00
PHP 185,987.96
PHP 240,082.20
PHP 293,679.57
PHP 352,636.67
PHP 418,129.48
798,550.73
912,051.73
899,447.14
772,126.38
303,977.85
PHP 984,538.69
PHP 1,152,133.94
PHP 1,193,126.70
PHP 1,124,763.05
PHP 722,107.33
Non Current Liabilities
Loan Payable
Total Liabilities
Owner's Equity
Capital
Total Liabilities and Owner's Equity
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Lovebada Bango
PROJECTED FIVE YEAR COMPARATIVE INCOME STATEMENT
Year 1
Year 2
Year 3
Year 4
Year 5
Service Revenues
PHP 1,648,920.00
PHP 1,813,812.00
PHP 1,995,193.20
PHP 2,194,712.52
PHP 2,414,183.77
Less: Discounts
49,467.60
54,414.36
59,855.80
65,841.38
72,425.51
PHP 1,599,452.40
PHP 1,759,397.64
PHP 1,935,337.40
PHP 2,128,871.14
PHP 2,341,758.26
392,968.15
399,548.25
404,517.36
409,983.38
415,996.00
PHP 1,206,484.25
PHP 1,359,849.39
PHP 1,530,820.04
PHP 1,718,887.76
PHP 1,925,762.25
167,232.00
167,232.00
167,232.00
167,232.00
167,232.00
35,213.31
35,213.31
35,213.31
35,213.31
35,213.31
2,300.00
2,300.00
2,300.00
2,300.00
2,300.00
Net Service Revenue
Less: Cost of Services
Gross Profit
Less: Expenses
Salaries & Wages
Depreciation - Equipment
Depreciation - Leasehold improvements
Depreciation - Furnitures and Fixtures
Rent
Supplies
Advertising
3,700.00
3,700.00
3,700.00
3,700.00
3,700.00
140,000.00
120,000.00
120,000.00
120,000.00
120,000.00
31,626.25
34,788.88
38,267.76
42,094.54
46,303.99
5,500.00
3,000.00
3,000.00
3,000.00
1,000.00
37,850.40
37,850.40
37,850.40
37,850.40
37,850.40
PhilHealth Contribution
7,200.00
7,200.00
7,200.00
7,200.00
7,200.00
PAG-IBIG Contribution
10,033.92
10,033.92
10,033.92
10,033.92
10,033.92
SSS contribution
Duties and Licenses
5,842.00
2,500.00
2,500.00
2,500.00
2,500.00
38,000.00
38,000.00
38,000.00
38,000.00
38,000.00
5,000.00
12,000.00
12,000.00
12,000.00
12,000.00
489,497.88
473,818.51
477,297.39
481,124.17
483,333.62
Income Before Tax
PHP 716,986.37
PHP 886,030.89
PHP 1,053,522.65
PHP 1,237,763.59
PHP 1,442,428.63
Income Tax (Tabular)
PHP 178,435.64
232,529.88
286,127.25
345,084.35
410,577.16
PHP 538,550.73
PHP 653,501.00
PHP 767,395.40
PHP 892,679.24
PHP 1,031,851.47
Utilities
Repairs and Maintenance
Total General and Administrative Exp
Income After Tax
Cost of Services Provided
Year 1
0
Year 2
2,269.00
Year 3
2,495.90
Year 4
2,745.49
Year 5
3,020.04
Purchases
Freight-in
45,380.00
2,269.00
49,918.00
2,495.90
54,909.80
2,745.49
60,400.78
3,020.04
66,440.86
3,322.04
Total Purchases
Purchase Discounts
Net Purchases
47,649.00
2,269.00
45,380.00
52,413.90
2,495.90
49,918.00
57,655.29
2,745.49
54,909.80
63,420.82
3,020.04
60,400.78
69,762.90
3,322.04
66,440.86
Cost of Inventoy Available for Use
Less: Inventory, Dec
45,380.00
2,269.00
52,187.00
2,495.90
57,405.70
2,745.49
63,146.27
3,020.04
69,460.90
3,322.04
Cost of Inventoy Used
43,111.00
49,691.10
54,660.21
60,126.23
66,138.85
334,464.00
15,393.15
334,464.00
15,393.15
334,464.00
15,393.15
334,464.00
15,393.15
334,464.00
15,393.15
392,968.15
399,548.25
404,517.36
409,983.38
415,996.00
Inventory, Jan
Salaries of Direct Workers
Total Depreciation of Direct Equipment
TOTAL COST OF SERVICES
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Breakdown of Utilities (Indirect)
Consumption per day (Php)
Description
1. Gasoline
2. Telephone
3. Electricity
4. Water
5. Computer
100
0.191362
3.18936
0.486
10.04648
In One Year
Total
312 31,200.00
312
59.70
312
995.08
312
151.63
312
3,134.50
35,540.92
Lovebada Bango
Depreciation Table
Equipments
Cost/Equipment/F
urniture
Quantity
Total Acquisition Cost
9kg Top Load Washing Machine with TDrive Washing Technology
7kg Sensor Dry Dryer with Iron Aid
Steam Flat Iron
Direct Equipment - Overhead
Multicab
Water Tank
Computer Package
Weighing Scale
Exhaust Fan
Total Depreciation Equipments
Furnitures and Fixtures
Leasehold Improvements
TOTAL
Scrap Value
Est. Useful Life Annual Dep'n
4
4
1
22,395.00
18,995.00
1,095.00
89,580.00
75,980.00
1,095.00
8,958.00
7,598.00
109.50
10
10
2
1
1
1
1
1
150,000.00
10,000.00
11,879.50
3,500.00
6,000.00
150,000.00
10,000.00
11,879.50
3,500.00
6,000.00
348,034.50
15,000.00
1,000.00
1,187.95
350.00
600.00
5
5
5
2
2
18,500.00
11,500.00
18,500.00
11,500.00
378,034.50
8,062.20
6,838.20
492.75
15,393.15
27,000.00
1,800.00
2,138.31
1,575.00
2,700.00
35,213.31
5
5
FSUU-Accontancy Program | All Rights Reserved.
3,700.00
2,300.00
56,606.46
58
PROJECTED STATEMENT OF CASH FLOWS
Year 1
Year 2
Year 3
Year 4
Year 5
Cash Provided/Used by Operating Activities
Cash Receipts from Sales & Services
PHP 1,599,452.40
PHP 1,759,397.64
PHP 1,935,337.40
PHP 2,128,871.14
PHP 2,341,758.26
45,380.00
49,918.00
54,909.80
60,400.78
66,440.86
Payment of Advertising Fee
5,500.00
3,000.00
3,000.00
3,000.00
1,000.00
Payment of Utilities Expense
38,000.00
38,000.00
38,000.00
38,000.00
38,000.00
Payment of supplies
31,626.25
34,788.88
38,267.76
42,094.54
46,303.99
140,000.00
120,000.00
120,000.00
120,000.00
120,000.00
5,000.00
12,000.00
12,000.00
12,000.00
12,000.00
466,152.48
466,152.48
466,152.48
466,152.48
466,152.48
SSS, Philhealth & PAG-IBIG Premium (ER&EE share)
83,075.52
90,627.84
90,627.84
90,627.84
90,627.84
Payment of Duties and Licences
5,842.00
2,500.00
2,500.00
2,500.00
2,500.00
Purchase of Inventory
Payment of Rent
Payment of Repairs and Maintenance
Payment of Employee Salaries / Wages
Remittance of Withholding Tax
-
Payment of Income Tax
0.00
178,435.64
232,529.88
286,127.25
345,084.35
778,876.15
763,974.81
877,349.64
1,007,968.26
1,153,648.74
366,534.50
0.00
0.00
0.00
0.00
Payment for leasehold improvements
11,500.00
0.00
0.00
0.00
0.00
Net Cash Used in Investing Activities
378,034.50
0.00
0.00
0.00
0.00
Cash received as investment by owner
500,000.00
0.00
0.00
0.00
0.00
Payment for withdrawals by owner
240,000.00
540,000.00
780,000.00
1,020,000.00
1,500,000.00
Net Cash Provided by Financing Activities
260,000.00
-540,000.00
-780,000.00
-1,020,000.00
-1,500,000.00
Net Cash Inflow (Outflow)
660,841.65
223,974.81
97,349.64
-12,031.74
-346,351.26
PHP 660,841.65
884,816.46
982,166.09
970,134.35
PHP 884,816.46
PHP 982,166.09
PHP 970,134.35
PHP 623,783.09
Net Cash Provided by Operating Activities
-
-
-
-
Cash Provided/Used from Investing Activities
Payment to acquire equipment
Cash Provided from Financing Activities
Add: Beginning Cash Balance
Ending Cash Balance
PHP 660,841.65
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59
Lovebada Bango
PROJECTED STATEMENT OF CHANGES in OWNER'S EQUITY
YEAR
Beginning Balance
1
2
3
4
5
A, Capital
A, Capital
A, Capital
A, Capital
A, Capital
PHP 798,550.73
PHP 912,051.73
PHP 899,447.14
PHP 772,126.38
PHP 0.00
Add: Investment
500,000.00
Net Income
538,550.73
653,501.00
767,395.40
892,679.24
1,031,851.47
PHP 1,038,550.73
PHP 1,452,051.73
PHP 1,679,447.14
PHP 1,792,126.38
PHP 1,803,977.85
240,000.00
540,000.00
780,000.00
1,020,000.00
1,500,000.00
PHP 798,550.73
PHP 912,051.73
PHP 899,447.14
PHP 772,126.38
PHP 303,977.85
Total
Less: Withdrawals
Ending Capital Balance
0.00
0.00
0.00
0.00
FINANCIAL STATEMENT ANALYSIS
Net Income
Divided by: Average Investment
ROI Percentage
Year 1
538,550.73
984,538.69
0.547
Return On Investment
Year 2
653,501.00
1,068,336.31
0.612
Year 3
767,395.40
1,172,630.32
0.654
Year4
892,679.24
1,158,944.88
0.770
Year 5
1,031,851.47
923,435.19
1.117
Payback Period (Uneven Cash Flows)
Net Operating Cash Cummulative Cash
Flows
Flows
Year
1
778,876.15
778,876.15
2
763,974.81
1,542,850.96
3
877,349.64
2,420,200.59
4
1,007,968.26
3,428,168.85
5
1,153,648.74
4,581,817.59
Computation:
500,000.00
0.67
In 8 months
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60
Chapter VI
SOCIO ECONOMIC-STUDY AND ENVIRONMENTAL IMPACT
This chapter in general provides information about the
socio
economic
study
of
the
business
as
well
as
its
environmental impact. This will tackle the benefits that can be
rendered to the customers, the owners and the staff and how to
keep the environment safe from the chemicals that are main
components of the laundry business.
Socio-Economic
The proposed laundry business, “Lovebada Bango” will bring
satisfaction to customers, who are looking for a laundry shop
that will cater good services of cleaning their clothes at a
reasonable price. The business will help the customers or
individuals to maximize their time for other work and serve
comfort to the customers.
Contribution to the Economy
The proposed business will benefit the economy through
providing employment to every individual especially within the
resident covered by the study. This will give the hired
employees and their families their source of income for their
living needs. This business will support local workers. It will
also promote the business and also contribute to the competition
which will lower the price of the product but will maintain the
quality of the products.
Contribution to the Government
As Filipino citizens, the business owners will pay their
tax liabilities mandated by the law. Tax will help the
government generate funds for the improvement of public service
and government projects.
Contribution to the Society
Lovebada Bango business will keep this town marketable to
attract more investors that will help the community for its
improvements and modernization, which, in turn leads to money
placed directly into the community.
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61
Environmental Impact
Environmental impact of cleaning agents is the consequences
of chemicals contained in the products. We can't deny the fact
that our environment is the first affected by what we are doing
especially when it involves upgrading our works through the help
of technology. Simple things like using a car as a means of
transportation can contribute or rather give impact to our
environment.
Laundry business like Love Vada Bango, perhaps gives an
impact to our environment. The machines that we used emit
greenhouse gasses (CO2) that add effect to what we are
experiencing nowadays, the "global warming".
Another thing is the used of detergents and bleaches in
washing garments. Although the place is not near the river in
which fishes could die, detergents may still affect our
environment. Like lots of fillers used in powder detergents are
poured in drains causing wastage of useful products like common
salt / washing soda and choking of drain / sewerage system.
Components of detergents like sodium sulphate can wreak havoc on
septic system. Synthetic detergents and our laundry practices
are contributing to our ground level water pollution.
The laundry business is aware of its harm to the
environment from the chemical substance that will be used as
stated above. Since the proposed business have to make sure that
it will not cause any harm to the people and environment as
well, it has to make sure to treat every water it throws.
The water treatment will use filtration system for removal
of contaminants by chemical and physical bonding. The proposed
business will make this process cost friendly and more
effective.
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62
Chapter VII
CONCLUSION AND RECOMMENDATION
The market study determined the demand for service through
research on the residents on the particular area from Brgy.
Sikatuna, Tandang Sora and Humabon. The study conducted revealed
the demand for the service and enabled to come up with an
efficient marketing program that will support the viability of
the business in its first stages of operation and expected to
last in the long run.
Generally, Lovebada Bango Laundry Shop is seen to be
feasible upon studying its location, market demand and the
factors affecting the market. It is recommended that an
extensive study for other aspects of the business feasibility is
conducted and the execution of the marketing program developed
accords to what really satisfies the market.
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63