Republic of the Philippines

University of Eastern Philippines University Town, Northern Samar College of Business Administration Accountancy Department

PROJECT FEASIBILTY STUDY FOR LIEZYLS SABON FACTORY OUTLET AND LAUNDRY SHOP
(Laundry, Home/ Building, Car, and Personal Care Product Direct Selling and Laundry Services)

Prepared by: AGELINE L. PADILLA ARNEL P. ADORA GENEVIEVE B. SINGZON MARK ANTHONY B. DESQUITADO CLONA JANE C. BRUZA BS Accountancy 5

CHAPTER II PROJECT BACKGROUND and HISTORY

Todays

society

is

giving

much

of

attention

on

creating things which will bring convenience and benefits to human being. The modern lifestyle demands for things beyond our basic needs. The use of cleaning agents be it for personal or home use has become a necessity than an extravagance. This is because of dependence of health on hygienic practices. On the contrary, the

present economic distress leads to a difficulty in meeting these needs for we have to prioritize the things which we really cant live

without as food, clothing, and shelter. Because of this, the notion on direct selling and

distributing GRIST products was initiated. These are products which have the same qualities with those well-known and branded in the

market. This idea came with the aim to assist the public in reaching and obtaining some needs which are within the main priorities yet important and at the same time securing the benefits of good qualities from those without worrying on the affordability. With maximization of the thought of the business an as a distributor, service with

resources

usage

through

extended

laundry acceptance was decided to be added. Moreover, a new kind of service is to be opened for the availment of the people of Lavesarez, Northern Samar.

Nature of the Business In real sense, Liezels Sabon Factory Outlet and Laundry Shop has for its main objective a necessity of todays living, the sanitation. Human health is bound on the situation of his environment, thus, this business intends to serve this ultimate purpose. The need for cleaning agents for personal, home/ building and laundry use, as well as perfumes for men and women is what this business will be trying to meet. These products do have the same, and if not, at least have almost the same qualities with those currently existing at the market. Only that the packaging is a bit given up for those are directly taken from the manufacturer. Laundry services is also expected to be rendered to those who seek quality cleaning

process of clothes, be it from households or business establishments. This business will be distributing its products through direct selling, thus, a credit system is expected to create a broad and accessible market. Some of its products will of course be used in its laundry division to likewise promote and attest the quality of the products. The community in the town proper of Lavesarez, Northern Samar is the initial target market of Liezels Sabon Factory Outlet and Laundry Shop. But once the business is already well-established, it is expected to cater the needs of the neighboring communities.

Rationale The absence of businesses of exactly the same nature

Lavesarez, Northern Samar is one of the opportunities Liezels Sabon Factory Outlet and Laundry Shop is expecting to seize. Yes, there are general products merchandise at the stores and existing price this but none of them offer It must the be

form

business

offers.

emphasized that the products to be sold might be inferior in packaging compared to the ones already existing in the market but the quality is surely not sacrifice. And the necessities of practical living are expected to lead to a choice of sacrificing packaging for the same product quality at a lesser price. In addition, the credit system to be established is expected to be taken advantage by the customers who have the intention of reselling the products. The business will be situated in a commercial area of Lavesarez, Northern Samar, exposed enough to create a market for its laundry services. Some people may perceive seeking of a laundry

service as an extravagance but it could be a great help to individuals and businesses that are busy enough to do this with themselves and to those who seek a better cleaning process for their clothes. Its

presence at the center of the town is expected to create an extensive demand for both the products and laundry services. Standing on the main base which is the products and

services nature itself being a necessity makes its great opportunity to sell on individual household, and businesses. As the location and

size

of

the Shop

business conserve

suggests, as a

Liezels to

Sabon those

Factory who

Outlet to

and earn

Laundry

wholesaler

want

through reselling. You earn from them as they earn with you. This is an encouragement which will open opportunities for an increasing

number of patronizes. Given the loose competition in the market, necessary nature of the products and encouraging credit system Liezels Sabon Factory Outlet and Laundry Shop is projected to be feasible.

Statement of the Problem This feasibility study aspires to evaluate the feasibility of hygienic products distribution and laundry services that will cater the residents of Lavezares, N. Samar, specifically it aims to answer the following questions: Economic Aspect: 1. What is the level of demand for the hygienic products of the laundry services to be offered by Liezyls Soap Factory Outlet and Laundry Shop? Technical Aspect: 1. What are the promotional activities that the business will use to create demand? 2. Is there a stability of supply from the main source? 3. What are the means of transporting the products from main source to the business location?

4. Will the business site and building be rented or is it an owned property? 5. acquired? 6. How much cost will be incurred in acquiring machineries and equipment? 7. How many personnel will the business operation require? What are the qualifications that they should set for hiring purposes? 8. What business operation flow should be established in selling hygienic products and laundry services? 9. What are the specific products that the store division will sell and what are the specific services that the laundry shop will offer? 10. What will be the costing and accounting system of the What are the necessary machineries and equipment to be

business operation? 11. In what type of business will Liezyls Soap Factory Outlet and Laundry Shop be classified? Financial Aspect: 1. How much will be the capital investment and how will these be financed? 2. business? What will be the projected financial statements of the

3. What are the projected daily operating expenses that will be incurred aside from cost of sales and services? Social Aspect: 1. What benefits will the community obtain from the business? 2. What are the possible environmental impacts to be considered? 3. What are the existing government regulations that could affect the business operation?

Significance of the Study 1. Data will be used by the client, Ms. Liezyl Bulosan, in

establishing this kind of business in their municipality. 2. Interested business dealers, to earn extra income in sub-dealing laundry, home/building, and car care products. 3. The community to avail quality branded products at an affordable price. 4. Convenience for those who live and reside within the locale of the study as to the quality cleaning of clothes. 5. Aside from services rendered of the laundry shop, this shall also serve as a promotional campaign for the laundry care products to attest its quality. 6. This study can be used as a preference for future studies of the same kind of business venture.

7. This study shall serve as partial fulfillment of the researchers requirements Accountancy. 8. This shall also serve as a training ground of the researchers in preparation for the real corporate world. for the Degree of Bachelor of Science in

CHAPTER III ECONOMIC ASPECTS

Market Analysis Liezels Sabon Factory Outlet and Laundry Shop will be located in one of the available space for rent beside the M Lluihller Pawn Shop at Barangay Sabang, Poblacion, Lavesarez, Northern Samar. Considering it is within the commercial center of the municipality and that is close to the different business establishments such as bakery,

department stores, etc. and residential houses, its target market will be those that live and reside within the area. The proponents of this project feasibility will make a survey on the target market to establish the market demand and the size of the different segments of the potential customers through questionnaires as research instrument. To compute the number of respondents or the sample population, the following formula will be used and a margin of error of 5%:

n=

Where: n = sample population

1+Ne2

N = the population size

e = the margin of error

Lavezares, N. Samar Caburihan (Poblacion) Caragas Cataogan 1539 1172 596

Ocad Sabang Tabok Total

866 1853 6026

n=

6026 1+[6026 x 0.052]

= 375

It will be assumed that the decisions and answers of these respondents whole to the survey questionnaires is the is representative of the of the

target

market,

which

population

poblacion

district, Lavezares, N. Samar, with only a 5% margin of error. The said survey showed that the prospective customers of

Liezyls Sabon Factory Outlet and Laundry Shop are composed of the following: 39.20% white-collar job 7.20% blue-collar job 10.67% housewives 32.53% students 10.40% do not fit into the first four categories and hereto referred to as the general public. The survey just proved that the biggest part of the target market are those employed as in private with and governmental collar job. agencies, They are

otherwise

known

individuals

white

followed by students. So, the marketing plans and strategies should focus mainly on these individuals who form part of the target market.

The segment,

general

public

follows and

in

the

said

ranking

of

market job.

then

housewives,

lastly,

those

with

blue-collar

Although the other three segments of the market are relatively small as to the total prospective market, still, it must be considered in the market plan and strategy to be created for the promotion of the business. With the two different operations of Liezels Sabon Factory Outlet and Laundry Shop, the target will then be divided into two, these are: 1. Customers for the Sabon Factory Outlet Household the main target for the Sabon Factory Outlet

especially those with extended families that have great demand for laundry and home care product and personal care product for each member of the family. The Liezels Sabon Factory Outlet and Laundry Shop aims to exploit this market

opportunity by selling the above mentioned care products. Students Students have a constant need for bath soap, lotion and cologne and other personal care products for their

personal hygiene, thus they are potential market of the Sabon Factory Outlet.

Business Owners Owners of the business establishments nearby also need janitorial care products for their building/ office to maintain the health and sanitation in their respective

areas. Thus they are potential market of the Sabon Factory Outlet.

Business Dealers Business-oriented people that would like to earn extra income sub-dealing the laundry care, home/building care, and personal care products to ultimate consumer. Thus they are potential market of the Sabon Factory Outlet.

General Public This refers to the rest of the population that does not fit into other four types of target market above that Liezels Sabon Factory Outlet and Laundry Shop aims to serve by selling laundry care, home/building care, and

personal care products. 2. Customers for the Laundry Shop Household Most of the household composed of many members that have no time washing their clothes would resort to the service of a laundry shop especially if it is a well-off family. Thus they are potential market of the Laundry Shop. Employees business Employees in different government agencies and establishments that are busy with their work

sometimes need a service from a laundry shop, thus they are potential market of it. Business Owners Owners of the business establishments could be potential market of the laundry shop in that there is need for them to wash their linens.

General Public This refers to the rest of the population that does not fit into other three types of target market above that Liezels Sabon Factory Outlet and Laundry Shop aims to serve by washing clothes.

The Laundry

commencement

of

the

Liezels will

Sabon be

Factory

Outlet to let

and the

Shop

promotional be

campaigns of

launched of

potential

customers

aware

the

existence

laundry

care,

home/building care, and personal care products and laundry services. During these preliminary promotional campaigns, all segments of the prospective market must be reached by the information drive. Posters, flyers and leaflets will be distributed in the locality.

Results of the Survey PART II.SURVEY QUESTIONS FOR SABON FACTORY OUTLET DIVISION A. LAUNDRY CARE PRODUCTS 1. For those who personally wash their laundries, mark the box/es and indicate the prices that correspond to the item/s that you and your family use.

375

Demand Level for Laundry Products

72.53% 54.4% 34.40% 30.13% 18.67% 12.27%

300 225 150 75 0

4.27%

11.20%

The bar graph indicates that there is a high demand for laundry products like laundry bar, all-purpose powder, detergent powder, and fabric softener. The respondents we have surveyed have the tendency to buy these products because these are the common products that are usually used in washing laundries than that of liquid detergent.

Number of users

Products

B. HOME/BUILDING CARE PRODUCTS 1. Do you use these products?

375 Number of users 300 225 150 75 0

Demand Level for Home/Building Care Products

85.06% 67.73%

22.93%

26.4% 4.53%

Air Freshener

Toilet Bowl and Tile Cleanser

Glass Cleanser

Dishwashing Dishwashing Liquid Paste

The graph shows that 85.06% of respondents use toilet bowl and tile cleanser. 67.73% of respondents use dishwashing liquid. This is favorable to the business for this shows that more than 50% of the population are potential customers of the business.

Products

C. CAR CARE PRODUCTS 1. Do you own a car or any vehicle?

51.92 %

48.08 %

Yes No

This pie graph shows that almost 50% of the respondents own a car or any vehicle. This means that respondents may become potential customers if they wash their vehicles on their own.

2. If yes, do you wash it personally or go to car wash?

0%

Wash personally Go to car wash 100%

This is a follow-up question to No. 1. Since all the respondents wash their vehicles personally, they will tend to buy cleaning products or agents for their vehicles.

3. If you wash it personally, how frequent?

9.40% 2.90% 5.80%
The graph shows that 81.88% of the respondents wash their vehicles weekly. This explains that any day of a week, a potential customer may buy cleaning agents. This is favorable to the business.

Daily Weekly Monthly 81.88% Others

4. Mark the item/s that you use for car care and indicate its price on the corresponding line.

Demand from vehicle owners

180 150 120 90 60 30 0

Demand Level of Vehicle Owners for Car Care Products

43.33% 17.22% 4.44% Car Shampoo Armor Shine Products Tire Black

The graph indicates that 43.33% will buy car shampoo, 17.22% of tire black, and 4.44% of armor shine. This implies that these products are still wanted by respondents who own vehicles and wash it personally.

D. PERSONAL CARE PRODUCTS 1. Mark the box/es that correspond to the kind of bathing soap/s that you and your family use.

375 300

Demand Level for Each Kind of Bathing Soap

60.27%

225 150 75 0 Shower Gel Organic Soap Herbal Soap Whitening Soap

45.33%

7.47%

4.53%

1.07%
Fragrant Soap

The graph shows that majority of the respondents use whitening soap and fragrant soap. This implies that most of the respondents are potential customers of these kinds of bathing soap that Liezyls store offers at a low price.

Number of users

Products

2. Mark the item/s that you use for personal care and indicate its price on the corresponding line.

Demand Level for Other Personal Care Products

375 Number of users 300 225 150 75 0 34.13% 24.80% 21.87% 13.07% 73.07% 68% 81.07%

Products
The graph shows that the sample population responded as to what are the products that they use for personal care. Majority of the respondents use toothpaste with 81.07%, lotion with 73.07%, cologne with 68%, and feminine wash with 34.13% among the 375 sample population. This implies that these products are considered basic needs of the respondents for personal hygiene. Therefore, it is favorable to the business.

PART III. LAUNDRY SHOP DIVISION 1. Do you personally ash your laundries?

2.67% 9.33%

88%

This graph shows that 330 (88% of the sample size) of the respondents personally wash their laundries. This means that majority of the population are least likely to avail of the services offered by the laundry shop. Only ten respondents (2.67%) answered sometimes to the question. They represent the portion of the population who are more likely to patronize the services. 35 persons (9.33% of the respondents) are most likely to be the potential customers of the laundry shop.

Yes

No

Sometimes

2. If no/sometimes, do you pay for home service or laundry shop?

The graph shows that out of the 45 respondents who answered either no or sometimes to the preceding question, 33 of them (73.33%) hire another person (labandera) to do their laundries at home. Only 26.67%said that they go to laundry shops. This suggests for an intensive advertisement of the services of the laundry shop to generate more customers other than the 26.67%.

26.67% Home service Laundry shop

73.33%

3. If you go to laundry shops, how frequent?

Frequency of availing laundry shop services

Of the 45 respondents above, 77.78% said they would go to a laundry shop every week to avail its services, only 4.44% of the respondents said monthly, and 17.78% respondents answered every 2 weeks.

17.78% 4.44%

77.78%

4. What is the average weight in kilo of your laundries per person?

8.89% 4.45% 13.33%

11.11% 1 kilo 2 kilos 3 kilos 4 kilos

62.22%

5 kilos

The graph shows that 62.22% of the respondents have an average of 3 kilos of laundries per member of the household, while 13.33% said they have 4 kilos average weight of laundries per household member. This means that if they are going to ask for laundry services, the laundry shop will earn mostly for 3 or 4 kilos per customer.

A. Wash-dry-fold Service 1. Mark the box/es of the type of your laundries.

45 Number of respondents 36 60% 27 18 9 0 Regular Linens/garments Type of laundries 17.78%
The graph shows the percentage of the 45 respondents who are willing to pay the laundry shop for washdry-fold service for each type of laundry.

a. For regular clothes, how much are you willing to pay per kilo of laundry?

Amount potential customers are willing to pay for the service

Number of respondents 27 24 21 18 15 12 9 6 3 0 92.60%

7.40%

0%

0%

The graph shows amount by which the 27 (60% of 45) respondents on the preceding question are willing to pay the laundry shop for washing their regular clothes. 92.60% chose the range of Php36-40.

Ranges of amounts

b. For linens/garments, how much are you willing to pay per kilo of laundry?

Amount potential customers are willing to pay for the service

8 7 6 5 4 3 2 1 0 Number of respondents 75%

12.5%

12.5%

The graph shows amount by which the 8 (17.78% of 45) respondents on the preceding question are willing to pay the laundry shop for washing their linens/garments. 75% chose the range of Php36-45.

Php36-45

Php46-50

Above Php50

Ranges of amounts

B. Wash-dry-press Service 1. For wash-dry-press services, mark the box/es of the type of your clothes or linens.
45 36 27 18 9 0 13.33% 8.84%
The graph shows the percentage of the 45 respondents who are willing to pay the laundry shop for washdry-press service for each type of laundry.

Number of respondents

Types of clothes

a. For regular clothes, how much are you willing to pay per kilo of laundry?

Amount potential customers are willing to pay for the service

Number of respondents 100% 6 4 2 0

0%

0%

The graph shows amount by which the 6 (13.33% of 45) respondents on the preceding question are willing to pay the laundry shop for washing their regular clothes. 100% chose the range of Php100-120.

Ranges of amounts

b. For linens/garments, how much are you willing to pay per kilo of laundry?

Number of respondents

Amount potential customers are willing to pay for the service

75% 25% 0 Php141-160 Php161-180 Above Php180 Ranges of amounts

4 3 2 1 0

The graph shows amount by which the 4 (8.89% of 45) respondents on the preceding question are willing to pay the laundry shop for washing their linens/garments. 75% chose the range of Php141-160.

C. Ironing Services 1. Are you willing to pay additional charge for ironing?
0%

26.67%

Yes No

73.33%

Sometimes

The graph shows that only 26.67% of the respondents are willing to go to laundry shops and pay for ironing services.

2. If yes/sometimes, mark the box/es of the type of clothes you are willing to be ironed.

12 Number of respondents 10 8 6 4 2 0
Office/school uniform T-shirts/blouses Shorts/pants The graph shows the percentage of the 45 respondents who are willing to pay the laundry shop for ironing service for each type of laundry.

41.67% 33.33% 25%

Types of clothes

a. How much are you willing to pay for the ironing per pair of office/school uniform?

Number of respondents

Amount potential customers are willing to pay for the service

5 4 3 2 1 0 80%

20%

Php41-50

Php51-60

Ranges of amounts

The graph shows amount by which the 5 (41.67% of 12) respondents on the preceding question are willing to pay the laundry shop for ironing their school/office uniforms. 80% chose the range of Php4150.

b. How much are you willing to pay for the ironing per piece of t-shirt/blouse?

Amount potential customers are willing to pay for the service

Number of Respondents 100% 4 3 2 1 0 Php10-15 Ranges of amounts

0% Php16-20

The graph shows amount by which the 4 (33.33%% of 12) respondents on the preceding question are willing to pay the laundry shop for ironing each piece of t-shirt or blouse. 100% chose the range of Php10-15.

c. How much are you willing to pay for the ironing per piece pants?

Amount potential customers are willing to pay for the service

Number of respondents 100% 3 2 1 0 Php10-20 Above Php21 Ranges ofAmounts 0%

The graph shows amount by which the 3 (25% of 12) respondents on the preceding question are willing to pay the laundry shop for ironing each pants. 100% chose the range of Php1020.

Savings
Selling price vs. Market price 160 140 120 100 80 60 40 20 0

Selling price Market Price

Laundry Care Products

700 Selling Price vs. Market Price 600 500 400 300 200 100 0 Air freshener Tile cleanser Glass cleanser Dishwashing Dishwashing liquid paste Home/Building Care Products Selling price Market price

250

Selling Price vs. Market Price

200

150 Selling Price 100 Market Price

50

0 Car Shampoo Armor Shine Car Care Products Tire Black

140 Selling Price vs. Market Price 120 100 80 60 40 20 0 Shower Gel Organic Soap Herbal Soap Whitening Fragrant Soap Soap (glutathione) Selling Price Market Price

Bathing Soap Products

200 180 Selling Price vs. Market Price 160 140 120 100 80 60 40 20 0 Feminine Hand soap Wash Hand Sanitizer Massage Oil Cologne Toothpaste Selling Price Market Price

Other Personal Care Products

Selling Products Price

Market Price Savings

All Purpose powder Laundry Bar Fabric Softener Liquid Bleach Stain Remover (oxalic) Detergent Powder SP100 Detergent Powder QA4

Php55.00 18.50 31.50 42.00

Php60.70 24.00 43.75 56.25

Php5.70 5.50 12.25 14.25 0.00

55.00 55.00

57.14 57.14

2.14 2.14

Detergent Powder Ariel Scent Detergent Powder RG3.2 Liquid Detergent Powder Bleach Air Freshener Tile Cleanser Glass Cleanser Dishwashing Liquid Dishwashing Paste Car Shampoo Armor Shine Tire Black Shower Gel Organic Soap Herbal Soap Whitening Soap (glutathione) 82.00 116.67 34.67 52.00 42.00 47.00 58.50 100.00 91.00 32.50 51.00 39.00 38.00 55.00 90.00 101.50 49.50 42.00 57.14 57.14 150.00 37.50 600.00 63.00 32.00 30.00 45.00 200.00 60.00 100.00 109.00 41.00 58.89 5.14 15.14 103.00 -21.00 500.00 -28.00 -0.50 -21.00 6.00 162.00 5.00 10.00 7.50 -8.50 16.89

Fragrant Soap Feminine Wash Hand Soap Hand Sanitizer Massage Oil Cologne Toothpaste

45.00 87.50 29.00 42.00 100.00 182.00 25.00

31.35 165.00 52.08 34.58 40.00 41.00 29.86

-13.65 77.50 23.08 -7.42 -60.00 -141.00 4.86

NET SAVINGS

Php711.69

SWOT Analysis The SWOT Analysis sets out the characteristics of the

entity which makes up its internal and external strengths and weaknesses, as well as the probable opportunities and potential threats to the organization. Taking these into consideration may help the business know the way to survival and progress from its present standpoint. This is through making use of the strengths, giving direct attention to weaknesses, taking advantage of the opportunities and minimizing the existing threats.

Strengths Simple organizational structure. With the few employees of the business, organizational problems can be addressed and resolved immediately. Incorporated promotion of products on laundry services. The laundry division attests the quality and promotes some of the products through its services. Market-known product qualities. The fact that products to be sold have the same quality with those existing in the market will create a continuing patronage of those who know this. Accessibility of supplier. Supplies of product will be

taken from a distributor in UEP Catarman, near enough to cover immediate orders and avoiding transportation expenses if the products will be taken directly from the supplier. Strategic location. The business will be situated within a commercial area in the town proper of Lavezares, N. Samar, thus, creating accessibility for the target customers. Monopolistic character. No existing establishment of the same industry is operating within the immediate area of proposed location.

Weaknesses Unestablished name and goodwill of products and services. The entity cannot use the name of the products already existing in the market though they have the same quality. This will create known to a competition the market. since and The strive laundry to make has just the no to

products

shop is

established commence.

goodwill

the

business

Inability to accommodate large number of customers. Since the laundry shop will just be starting, the business will initially operate with a single operating machine which may not be enough to accommodate too much customers. Opportunities

The business will just be the second factory outlet in Northern situated Samar in of the Grist Company. is The other one is

UEP

Catarman

which

relatively

far

from

Lavezares and which may give broader market coverage for the products and services. The absence of same factory outlets in the second district of the province will create an opportunity for the business to earn through recruitment.

Spreading

public

knowledge

about

the

good

qualities

of

products at lower cost as well as on its laundry services may lead to business monopolizing the market. Threats The continuing entries of imitated products in the market may lead to the misconception of the public that the

products offered are mere imitations and ineffective. Increasing cost of living and business costs may trigger the laundry shop customers to resort to cheaper

alternatives as household labanderas. Strategies Advertisements. list will be Flyers with products and services price

distributed

throughout

Lavezares,

Northern

Samar and the neighboring communities for the awareness of the public on authenticity of products and its less cost. Credit system. Establishing a good credit system will

create extensive patronage by those who want to avail of the products but dont have the immediate means. Direct selling. Employing the service of dealers who will undergo direct selling of the products at an extension of credit line as an incentive will enhance sales.

Recruitments. district of

Recruiting Northern

distributors who will

from

the

second buy the

Samar

directly

products from the business will yield an additional profit and broaden the market. Discounts. Offering discounts for large number of purchases and availments of services. Keys to Success The location of the project is an important factor to

success. It should be situated on area accessible to the general public, thus, this project will be located on a site within the commercial area which is on Brgy. Sabang Tabok in the town proper of Lavezares, N. Samar where it is near to the other businesses and could be easily seen by the people. For the products and services should price be list to enter the market, with

promotional products

activities services

conducted. should be

Flyers

and

distributed

within and outside the town proper. Orders received through the dealers and distributors should be filled promptly as well as the collection of the

accounts.

Maintenance

of

good

relationship

with

customers

is

important. Their concerns should be addressed to as soon as possible.

CHAPTER IV TECHNICAL ASPECTS

Proposed Legal Business Status It is advisable for this kind of business operation to be organized as either sole proprietorship or a partnership for it is less complicated to manage than a corporation. Thus, the Liezyls Sabon Factory Outlet and Laundry Shop will be a sole proprietorship. This will be owned by Ms. Liezyl and will invest the needed initial capital and will solely benefit from the profits of the business.

Market Entry Timing The Liezels Sabon Factory Outlet and Laundry Shop should commence its operation at the start of the summer season expectedly this coming third week of March. In this way, the people in the community will become aware even before the peak demand for these type of products in the later month of the year. Proposed Costing and Accounting System The Liezyls Sabon Factory Outlet and Laundry Shop shall account the following 1. A separate checking account Liezyls Sabon Factory Outlet and Laundry Shop shall establish a separate checking account for its business operation. All collections and disbursements made by distributing and/or

selling

products

and

rendering

laundry

services

shall

be

deposited and paid through this account. The purpose of creating such account is to avoid misallocation of resources and funds between personal interest and

development of the entity as a whole.

2. Establishment of petty cash fund Liezyls Sabon Factory Outlet and Laundry Shop shall

establish a Php 6,000.00 petty cash fund under the imprest system. The main objective of integrating imprest fund system is to eliminate the impracticality of issuing checks for immaterial amount of ordinary and necessary expenditures and to make sure that all collections are deposited to the checking account in a consistent manner. 3. Adoption of a double entry system The Liezyls Sabon Factory Outlet and Laundry Shop shall adopt the double entry bookkeeping system. Tacit to the

integration of this system are the following: Chart of accounts

Liezyls Sabon Factory Outlet and Laundry Shop shall use the following accounts:

 Liezyls Sabon Factory Outlet Division

110 Cash 120 Accounts receivable 130 Inventories 140 Prepaid Expenses 150 Other Assets (160 190) Fixed Assets Expenses

210 Accounts Payable 220 Other Payables 310 Liezyl, Capital 320 Liezyl, Withdrawal 410 Sales 510 Cost of Sales

520 Freight-in 530 Utilities Expenses 540 Rent Expenses 550 Supplies Expenses 560 Depreciation Expenses 570 Doubtful Accounts

580 Other Expenses

Laundry Shop Division

110 Cash 120 Accounts receivable 130 Inventories 140 Prepaid Expenses Expenses 150 Other Assets (160 190) Fixed Assets

210 Accounts Payable 220 Other Payables 310 Liezyl, Capital 320 Liezyl, Withdrawal

520 Utilities Expenses 530 Rent Expenses 540 Depreciation Expenses 550 Doubtful Accounts

410 Laundry Services Revenue 560 Other Expenses 510 Supplies Expenses

A General Journal and Ledger Book

Liezyls Sabon Factory Outlet and Laundry Shop shall open a general journal and a general ledger for each revenue unit. The former is for chronological and systematic record keeping. For the latter, its for classifying accounts for its easy reference and accumulating information. Liezyls Sabon Factory Outlet and Laundry Shop shall follow the common format of journal and ledger. Journal

Date

Account Title & Explanations

P.R.

Debit

Credit

Ledger Date Particulars P.R. Debit Credit

Financial Statement Preparations

Liezyls Sabon Factory Outlet and Laundry Shop shall make used of the following format in the preparation of its financial statement;

Statement of Comprehensive Income Liezyls Sabon Factory Outlet Division Sales Cost of Sales Inventory, Beg. Php xxxx Add: Purchases xxxx Freight in xxxx Goods Available for sale xxxx Less: Inventory, end xxxx Gross Profit Less: Operating Expenses Operating Income Less: Tax (Operating Income* Tax Rate) Net Income Php xxxx

(xxxx) Php xxxx xxxx xxxx xxxx xxxx

Liezyls Sabon Laundry Division Laundry Services Revenue Less: Operating Expenses Supplies Expenses Php xxxx Utilities Expenses xxxx Rent Expenses xxxx Depreciation Expenses xxxx Doubtful Accounts Expenses xxxx Other Expenses xxxx Operating Income xxxx Operating Income Tax (Operating Income* Tax Rate) Net Income Php xxxx

xxxx xxxx xxxx

Changes in Equity

Liezyl, Capital Beginning Add: Net Income in Factory Outlet Division and Laundry Division Additional Investment Laundry Division and Laundry Division

Php xxxx xxxx xxxx

Total Capital available Less: Liezyl, Withdrawal Liezyl, Capital End Statement of Financial Position 4. Methods of Asset Accountability

Php xxxx xxxx xxxx

Cash - Liezyls Sabon Factory Outlet and Laundry Shop shall measure cash on its face value. Cash on hand and at the end of the operating period. Any shortage or overage should be charged according to the

identifiable reason of such cash shortage/overage. Inventory - Liezyls Sabon Factory Outlet and Laundry Shop shall measure base on the physical count. Any discrepancy shall be changed appropriately. Prepaid rent Liezyls Sabon Factory Outlet and

Laundry Shop shall be recorded as an asset instead of expenses. Cash Control A cash control system must be developed and maintained to ensure no irregularities in handling cash. This is also designed to avoid or lessen frauds, errors, and misstatements during the accounting period. The division of duties and responsibilities of every personal is welldefined to prevent conflict of interest: 1. The manager (also acts as cash custodian) will be responsible for receipt of cash sales, laundry fees, and collection of sales on account. He will verify and check all accounting records and

documents that are submitted by store custodian and laundry shop operator. He will check and verify all collections and

disbursements made with supporting evidences or documents. He is the one who will issue checks for any payment made by the

business. 2. A petty cash of Php 1000.00 will be maintained and shall be in the custody of the manager as a change fund and small amount transactions. 3. Accounting books for financial transactions must be maintained by store custodian for store operations and by the laundry shop operator for the laundry shop operations. 4. Excess cash of the business shall be deposited to a checking account in the name of the business with the managing partner as the signatory. 5. All payments to be made by the business shall be made by drawing an account from the above mentioned checking account. 6. The managing partner will approve the purchase order made by the store custodian. At the same time, the purchases are made by the latter.

Proposed Liezyls Sabon Factory Outlet Division

Liezyls Sabon Factory Outlet and Laundry Shop shall operate a direct selling business of laundry, car, home/building and personal care products. Aside from selling to its final customer it opts to extend credit to those who are willing to

serve as sub-dealers for the product listed below provided they are to fill-out registration form. This will serve as a document binding him/her as an official dealer of Liezyl Sabon factory outlet. For the list of products, see Appendix. Every dealer of the Liezyls Soap Factory Outlet Division shall have a registration form free of charge that will be used to keep tract of his/her credit purchases, payment, etc. after issuing him/her unique ID number/Dealer code. The following must be observed upon signing in as a dealer. 1. Completely filled-out original Liezels Sabon factory outlet registration form in two copies. 2. Photocopy of both front and back sides of any one valid ID number, ID type, signature and unique cell phone number. 3. The ID type details have to match the valid IDs photocopy. Also the members signature at the bottom has to be identical with the signature on the valid ID.

Terms and Conditions 1. Upon sign in of the new Dealer, he/she shall have an

automatic Php 1,000.00 available credit line at an outright 10% discount payable immediately after seven days upon purchase

order of product from Liezlys Sabon Factory Outlet Division. 2. In every purchase of dealers, he/she is entitled to an

outright 10% discount. An outright dealers discount of 10% on catalog price is granted immediately to all Liezlys Sabon Factory Outlet Division dealers on product purchase in catalog. When purchasing products at the 10% discounted price, Leizel Sabon Factory Outlet can re-sell the products to non-dealers or final costumers at catalog price and earn the difference. 3. Upon every purchase, the dealers must pay at least Php 50.00 to serve as down payment. This amount shall be deducted from his/her total personal sales to arrive at final amount due. When personal sales exceed the available credit line, the difference must be paid upon purchase. 4. He/she shall pay the amount due to him/her immediately after seven days, counting from the day of purchase order. Failure to pay on time shall mean a penalty on delinquent account. An

additional charge of 1.5 % on the amount payable to Liezlys Sabon Factory Outlet Division shall be paid by the dealers. Computations: Amount payable Add: Delinquency interest (Amount payable x 1.5% x number of days delayed for payment) xxx xxxx xxxx

Tota lamount payable

For

dealers

who

want

to

earn

more

from

Liezyls

Sabon

Factory Outlet Division, they can expand their credit line for an opportunity to increase their personal sales with a very low cost of capital.

a) First, always pay on time and top-up

Proposed Operation for Liezyls Laundry Shop Liezyls Laundry Shop will offer laundry services that are

generally related to the cleaning of various types of fabric. It can be a range of activities such as washing and drying of clothes and linens. In addition to this, Liezels Laundry Shop will also offer ironing and packaging garments for ready use. And if it will include pick-up and delivery of clothes and linens to a particular location. A different charge is also expected for different types of

laundries. For regular clothes (composed of t-shirts, blouses, shorts, pants, jackets, office and school uniforms) will be charged Php 38.00 per kilo for wash-dry-fold services and Php 100.00 per kilo for washdry-press services. For linens/garments (composed of comforters,

curtains, pillow cases, bed sheets, towels, and car covers) will be charged Php 45.00 per kilo for wash-dry-fold services and Php 150.00 per kilo for wash-dry-press services. For ironing services of regular clothes cleaned clothes already, will be charged Php 50.00 per pair of office and school uniform, Php 8.00 per piece of t-shirt and

blouse, and Php 10.00 per piece of shorts and pants. In operation, the first thing that should be done is to tag and inspect the laundry that is brought by the customer. Paper tags or labels are placed on the clothes to identify them with a particular owner and prevent the clothes from being mixed up. The garments are also inspected for damages such as tears or missing buttons to take note of their condition before they are brought in.

The customer will be given a job order sheet (refer to Appendix C) to make them aware of the terms and conditions of the services. This will be presented upon pick-up of laundries by customers or upon delivery. Before wash proper is started, the supplies and equipments are inspected if they are available and/or ready for use. Supplies are soap, laundry detergents, and fabric softener that will be purchased from Liezyls Sabon factory Outlet at full cost. While equipments are washing machine, electric fan, and electric iron. Finally, the

laundries are being washed, dried, folded, and pressed, depending on the customer specification, and packed to make it ready for pick up or delivery. The capacity of washing machine is estimated at eight kilos of laundry, six times per day. The policy on claiming cleaned laundries is first come, first serve basis. If the number of kilos received on that day is less than fifty kilograms, the customer can claim their clothes the next day. If more than fifty kilograms of laundry is received on that day, the excess of fifty kilos will be claimed two days after. Completion of service and delivery depends upon the

receipt of laundries in kilo per day. Once delivered or picked-up, collection of laundry fee is done but advance payment is always

accepted. No down payment is necessary. Free delivery will be granted to loyal customers and/or ten kilos above of laundries.

Procurement Process For practicality purpose, the owner/proprietor of Liezyls Sabon Factory Outlet and Laundry Shop shall serve as liaison between the business and the supplier and at the same time as procurement officer. She shall also be responsible for the ordering of stocks from the supplier of personal care, home/building care, and car care products. She is also in charge of transporting the goods from the supplier to the store. The necessary procurement expenses officer that shall be be given an for allowance the for the

will

incurred

procurement

transactions.

Methods of Purchasing Liezyls Sabon Factory Outlet and laundry Shop has a fixed

supplier of the products that it is going to sell. Inventory shall be replenished monthly or when needed and all purchases shall be listed in the purchasing record book.

Steps in Purchasing

A particular step for purchasing is required to avoid infusion. The purchasing flows are the following: 1. to know and be aware of the needs, 2. specification of the items needed, 3. listing of items to be authorized for purchase requisition, 4. contract with the supplier for orders, 5. follow-up orders, and 6. closure of deal at a mutually agreed price.

Purchase Requisition Form The purchase requisition form is a printed paper that bears the original and official logo of Liezyls Sabon Factory Outlet and

Laundry Shop. It is a standard operating procedure. Purchase requisition forms are strictly signed by the

owner/proprietor. If any form is unsigned, it is considered void. The form contains the following:

A. Requisition number This is to identify and control purchases for the week or month. B. Quantity and cost per unit Quantities are important because it is the basis for the needs. Costs against quantities are also expressed to

control the total cost every week or day.

C. Specification of item D. Supplier It is necessary for comments or problems with the deliveries. E. Signature of owner/proprietor for approval.

Purchase Order Terms and Conditions Quality inspection will be initiated by the liaison prior to the delivery. All deliveries will be subject to inspection. All specification and quality should be met by the supplier. Any alteration or deviation will be ground for rejection of delivery without any obligation on the business part. Manner of payment will be based on the agreed terms and condition set in the purchase order. Original delivery receipt and invoice must be included in the delivered products and to be submitted to the owner/proprietor.

Receiving The receiving process shall be vested to the procurement officer who shall also be capable of handling problems that may occur in transporting the purchases from the supplier to the store. She shall also examine the quantity, quality, and size of the items if it

conforms

to

the

specification

prior

to

transporting.

For

control

purposes, all items received shall be entered in the receiving record.

Location and Site Liezyls Sabon Factory Outlet and Laundry Shop will rent a 24 square meter space located at Brgy. Sabang Tabok, Lavezares, Northern Samar. The location is very viable to conduct business because it is near the residential area, school, church, and public market. The location and site can introduce the business itself and the product and services it renders.

CHAPTER V MANPOWER AND MANAGEMENT

Organizational Structure

The organizational structure describes the official relationships of persons in an organization. It has to do with the chains of

command and the division of duties, with the emphasis on the former. It forms part of the over-all organization plan. The organization

chart should be set in a clear picture with the job descriptions and operating procedures to give emphasis and particularity on the

delegation of authority and responsibility. Liezyls Sabon Factory Outlet and Laundry Shop organization will be on a line type of structure. Centralization of operation and

decision making will be observed though the business has two divisions considering the size of business itself and the simplicity of the organizational structure. The owner, as also the manager, will be

seeing through the management and over-all operation of the business. The store custodian will handle the selling operations of the products as the laundry shop operator will take care of the laundry services. Their responsibilities extend to the custody of the assets within their division. A liaison employee will be hired for the entire business. His

responsibility is on assisting the laundry shop operator in its daily operation. He will also be taking care of the deliveries of products A single liaison employee will be

from the supplier to the store.

hired with the thought that some store deliveries will not be often done as the assisting in the laundry shop. And so it is reasonably

expected that he will be able to meet his responsibilities in both divisions.

Good relationships of the divisions as well as their respective personnel should be developed. This is to initiate congruencies so as

to signify the duties and responsibilities of each person making up the whole organization.

Organization Lay-out

Manager/ Owner

Store Custodian

Laundry Shop Operator

Liaison Employee

Line Relationship A line relationship represents the power of authority to command that is exercised by a person over his direct subordinates. The

manager /owner has the power of supervision, direction and evaluation on the work of his subordinates. The store custodian and laundry shop

operator will share authority over the liaison employee.

JOB DESCRIPTION

Position Title: Manager Job Summary: Responsible for the profitability and growth of the business Duties and Responsibilities: 1. Planning Establish and maintain an integrated plan consistent with both short and long term goals and objectives. 2. Organizing Develop and maintain an effective organization which will ensure that work is done effectively and economically. 3. Control- Develop and maintain control system to ensure conformance of operations and results to what was planned. 4. Design, establish and maintain an effective accounting system for financial transactions of both divisions. 5. Verify and check all accounting reports and documents that are submitted by the store custodian and laundry shop operator. 6. Check and verify all collections and disbursements made with their supporting documents. 7. Signs check for any payment made by the business. 8. Responsible for implementation and monitoring of organization rules and regulations. 9. Responsible for fixing salaries and benefits. 10. Assumes other duties analogous to the above mentioned.

JOB DESCRIPTION

Position Title: Store Custodian Job Summary: Responsible for the selling operations of the products Duties and Responsibilities: 1. Entertaining of customers on products offered. 2. Maintaining enough stocks for the store. 3. Setting of reorder point for inventories. 4. Collection of customer due accounts. 5. Assessing credit lines of customers, dealers and distributors. 6. Maintaining books in accounting for financial transactions. 7. Providing periodic reports on the financial position and performance of the division. 8. Taking care of assets within the division. Job Specification: 1. Male/ Female, 20-35 years of age

2. At least high school graduate, preferably college level. 3. Excellent in oral and written communication. 4. Has an excellent interpersonal skill.

JOB DESCRIPTION Position Title: Laundry Shop Operator Job Summary: Responsible for the operation on laundry services Duties and Responsibilities: 1. Handling the actual cleaning of laundries.

2. Scheduling customers.

of

accepting

and

returning

of

laundries

to

3. Procurement and maintaining of stocks of supplies to be used in service. 4. Maintaining books in accounting for financial transactions. 5. Providing periodic reports on the financial position and performance of the division. 6. Taking care of the assets within the division. Job Specification: 1. Male/ Female, 20-35 years of age 2. At least high school graduate 3. Knows how to operate a washing machine

JOB DESCRIPTION Position Title: Liaison Employee Job Summary: Responsible for the assistance on laundry shop and store division Duties and Responsibilities: 1. Assisting the operator of laundry shop on entertaining of customers and cleaning of laundries. 2. Taking care of the deliveries from the supplier to the store.

3. Assistance on whatever situation which requires such. Job Specification: 1. Male, 20-35 years of age 2. At least high school graduate 3. Have excellent interpersonal skills

Management and Supervision The proprietor will be the one to manage and supervise the business operation. As the manager, she will direct and control the operations in both divisions with the objective of bringing out quality service a to customers. needs to meet To and accomplish practice these ethical

requirements,

manager

standards and apply strategies on dealing with its employees.

The Recruitment Process The manager shall personally choose and hire the employees for the business. should be met by The specifications required for each job the chosen applicant. A weight on

trustworthiness should be considered for they will be entrusted with the assets of the business, so it would be better if the manager personally know them. In addition, the requirements for

the oral and written communication skills and ability to operate

a washing machine should be given an emphasis for these are vital in carrying out their duties and responsibilities.

Training and Development Training and development refers to employees acquisition of knowledge, development of skills and proper work attitude. Training of employees is a means for Liezyls Sabon Factory Outlet and Laundry Shop to ensure job security which is necessary in giving quality services. The store custodian must be oriented by the manager/ owner on his line with which of duties and responsibilities, system by and particularly relation. which on A

dealing training

sales, will

credit be

customer

given

the

company

from

the

laundry shop equipments will be purchased should be undergone by the laundry shop operator. The liaison employee should as well

be trained and oriented on his role in the business. Many new employees are very uncomfortable in a new job, and the new orientation program of Liezyls Sabon Factory Outlet and Laundry Shop should serve, among other things, as gradual The new

introduction to the organization as well as the job. staff member will be given the following:

1. Liezyls Sabon Factory Outlet and Laundry Shop history, its policies, programs and procedures, objectives, and

organizational structure. 2. Working hours, salaries and benefits. 3. Brief description of duties and time of breaks. 4. Dress code.

Human Resource Management Human Resource of Management management is the main function and

responsibility organizing, employees.

which

includes and

planning, of

directing,

controlling

coordinating

Liezyls Sabon Factory Outlet and Laundry Shop has a small organizational structure that is in a sole proprietorship form of business. This establishment cannot provide separate human resource instead, management dealing department handling to of handle its employees lies on but the

and

personnel

manager/owner. The manager and the line staff are carried on in a constant coordination duties about to exchange the their ideas and synchronize a their

matters

concerned

under

particular

supervision.

Importance of Human Resource Management: 1. Keeps track on employees performance 2. Provides proper training and orientation to an employees designated job 3. Maintains good relationship with co-employees 4. Gives rules and policies to be followed

Time of Business Operation 9:00 a.m. 12:00 p.m., 1:00 p.m. 6:00 p.m. (8 hours of operation from Mondays thru Saturdays)

Time of Employees Operation Eight (8) of operation from Mondays thru Saturdays for the store custodian, laundry shop operator, and liaison employee who are allowed a one hour lunch break from 12:00 p.m. to 1:00 p.m. wherein they may close the store as they wish.

Salaries and Wages The following are the rate of salaries for each employee:

Laundry shop operator month Store custodian month Liaison employee month

Php 150.00 per day/ Php 3,600.00 per

Php 120.00 per day/ Php 2,880.00 per

Php 100.00 per day/ Php 2,400.00 per

Employee Benefits Sick leave sick leave eligibility starts after six months of continuous service. Liezyls Sabon Factory Outlet and

Laundry Shop considers sick leave as any temporary absence to illness or non-occupational injury that prevents the worker from coming to work. A medical certificate must be presented.

Policies and Disciplinary Actions

Liezyls Sabon Factory Outlet and Laundry Shop Title: POLICY CODE OF DISCIPLINE As must

In any organization, a code of discipline is vital. such Liezyls Sabon Factory Outlet and Laundry Shop

maintain House Code of Discipline for every employee to abide by

abide conduct himself accordingly. The purpose of a House Code of Discipline is meant to correct an erring employee rather than to inflict punishment. quality of employee. It also helps us maintain a standard

ACTS OR OMISSIONS CONCERNING COMPANY PENALTY FUNDS OR PROPERTY a. Stealing, misappropriating or

PENALTY

embezzling Dismissal

companys funds or property b. Fraudulent acquisition or or illegitimate release to withdrawal other person or Dismissal of

companys funds and property c. Deliberately causing loss or damage to Suspension without pay

companys property

d. Committing other acts of dishonest, deceit or Suspension anomaly e. Unauthorized painting, marking, carving without pay or Oral/written reprimand or allowing and unauthorized Oral/written facilities in reprimand

removal of things f. Indiscriminate persons to use use

materials

loss or damage g. Negligence or carelessness resulting in loss Oral/written or damage of property reprimand

ACTS OR OMISSIONS AFFECTING COMPANYS INTEREST a. Forging or falsifying or altering record, or Dismissal other records in such a way as to mislead the user/s thereof

b. Making false or malicious statements about the Dismissal business

c. Disclosing,

giving

way,

or

using

restricted Dismissal

information without proper authorization

d. Making use of record/s or document/s known (by Dismissal user) to be false

e. Unauthorized

use

of

the

business

name

to Dismissal

obtain benefits

ACTS OR OMMISSION CONCERNING HARMONY AND PENALTY GOOD, ORDERLY, SAFETY, SECURITY AND DECENCY

a. Bringing firearms,

in,

or

unauthorized other

possession deadly

of Oral/written

explosives,

weapons reprimand

within the store/shop premise or jobsite b. Immoral conduct or conduct grossly indecent Oral/written reprimand or deliberately Dismissal

nature within the business c. Stealing, concealing,

misplacing without justifiable purpose d. Absence without proper notice to notify Oral/written reprimand Dismissal Oral/written reprimand

superior of the cause thereof e. Abandonment of job f. Habitual tardiness

CHAPTER VI FINANCIAL ASPECT

Project Investment The establishment of Liezyls Sabon Factory Outlet will need a total initial investment of Php 405,456.46. This will be fully

financed by Ms. Liezyl Bulusan, the proprietor. She will be entitled to all the profits and losses of the business.

List of Expenses The following are the expenses involved in the business operation aside from the cost of sales and cost of services: o Taxes and licenses. The business will pay for the legal expenses to the Department of Trade and Industry, Bureau of Internal Revenue, and the Local Government before the

formal operation. o Consultants fee. This will be paid for seeking the service of consultants in ascertaining the viability of this

undertaking. o Marketing expense. Promotion through radio and flyers

distribution will be made. This expense is presumed to be higher on the first quarter for an intensive advertisement and will be less and same amount on the following quarters. o Rent expense. A monthly rent expense of Php 3,000.00 will be paid for the space occupied by the business. o Salaries expense. Salaries will be paid for the laundry shop operator, store custodian and liaison employee.

Utilities

expense.

This

will

include

the

payment

for

electricity and water. o Depreciation expense. Depreciation of fixed assets shall be provided. o Supplies expense. Supplies expense shall be recognized for the supplies used. o Miscellaneous expense. This will include transportation and other expenses.

CHAPTER VII Social Desirability Aspect

The establishment of Liezyls Sabon Factory Outlet and Laundry Shop in Lavezares, N. Samar will be beneficial not only to the

proprietor, but also to the community. The gains that each sector of the society can obtain from the business operation are stated as

follows:

To the Client: The primary objective of this undertaking is the profit that the owner will derive from its operations. Offering quality personal care, home/building care, and car care products at a low price can induce more customers to buy these products; thus, generating more income. On the other side, the proposed laundry shop will also contribute to the overall profit of the business. Plus, the fact that there is still no existing business in town that provides the same services that it offers such as washing, drying, and ironing clothes will make customers who seek these kinds of services go directly to Liezyls Laundry Shop. To the Household and Environment: The low price of the products that the business will offer will generate more savings to its customers than if they choose to

patronize other brands with equal quality but of a higher cost. These are designed to maintain good personal hygiene and cleanliness of the surroundings and personal belongings; thus, providing a more healthy environment.

The laundry shop will ease the lifestyle of the members of this sector as it will lessen the burden of doing the laundries every now and then.

To the Unemployed Individuals: Liezyls Sabon Factory Outlet and Laundry Shop at its inception will need experts and laborers for the design and construction of the building which serve as the venue of its operations. Subsequently, it will also hire some personnel who will operate the business. On the whole, the establishment of this business will create employment

opportunities for this sector.

To the Supplier: Since Liezyls Sabon Factory Outlet and Laundry shop has a fixed supplier of the goods that it will sell, all the inventory demands of the business will go to it. Thus, creating additional sales on the part of the supplier.

To the Government and the Public The right of the business to earn income from its operations has its corresponding duty and responsibility of paying its taxes and licenses which will provide the government additional fund for the provision of services to the public.