The Laundry People

Course Name: Principles of Finance

Course Code: ALD- 2105

Submitted By
Group 3
Batch: Management-2017
Section: B
Semester: 3rd

Supervisor

M Shahin Sarwar
Associate Professor
Bangladesh University of Professionals

Department Of Business Administration in Management Studies

Faculty of Business Studies
Bangladesh University of Professionals
Mirpur Cantonment, Dhaka-1216

Date of Submission: 03.05.2018

 Letter of Transmittal

Date: April 25, 2018

M Shahin Sarwar
Associate Professor
Bangladesh University of Professionals
Dear Sir,
Sub: Submission of business plan.
As per your instructions of preparing a business plan as a requirement for our undergraduate course
Principles of Finance (MGT-), we would like to present this business plan for The Laundry People.
The Laundry People is a full-service coin-op laundry service dedicated to consistently providing
high customer satisfaction by rendering reliable machines and furnishing a clean, enjoyable
atmosphere at a competitive price/value relationship. Our business is service based and we are
providing laundry services to our customers but in a different way. The business plan in the
following pages provides complete details on the different aspects like marketing, finance,
operations, etc.
Thank you for giving us the opportunity to learn and explore the entrepreneurial journey and
understand the complexities of starting up a business of my own. This experience will help us
understand the underlying factors that make an entrepreneur and his enterprise successful.

Sincerely,
SK Anik Hassan Rabby (17241040)
K S Taiseer Chowdhury (17241046)
Israt Iftesam Shakil (17241048)
Fariha Basher (17241064)
Mysha Fahmida Khan (17241068)
Group 3
Department of Management,
Bangladesh University of Professionals
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Executive Summary
The Laundry People is a full-service coin-op laundry (washing, drying, and optional folding)
service dedicated to consistently providing high customer satisfaction by rendering reliable
machines and furnishing a clean, enjoyable atmosphere at a competitive price/value relationship.
Our business is service based and we are providing laundry services to our customers but in a
different way. Other than gathering customer’s dirty cloth and wash them we are providing
washing machine and dryer services. We are trying to implement something new in the service
industry of our country. The process of our service is pretty simple which people is will bring their
dirty cloth and use our washing machine and dryer and for using our services they have to pay.
The process of payment is, they have to exchange money with coin, and because the machines can
be operated by using coin otherwise those machine wouldn’t operate.
Our Mission: To provide convenient, clean, and friendly laundry service.
Our Motto: "Professional, convenient, friendly service and competitive pricing"
We 5 partners have joined together to open up this business and as none of us have that much of
experience in this type of business, we decided to share the same amount of investment and same
amount of share in this business.
Initially we will open up one branch for our which will be located in Mirpur DOHS area. The
reason is, it is one of the biggest residential area in Dhaka city and reaching out on target customers
can be easy.
By analyzing customers’ preferences, income rates and nature of lifestyle we forecasted 2 years of
sales which shows us that we can reach Break-Even point within a year. In this plan we will also
show our fixed assets, current assets, sources of funds, initial investment, income statement and
balance sheet.
To start our business we need initial investment of 172,000 taka and as it is a service based
company we need huge amount of fixed investment which is 1,275,000 taka. And the current
investment needed for the first year is 1,604,750 taka. In total to successfully start our business
and run it we need 3,051,750 taka.
For the source of fund we will need loan of 12, 00,000 taka and the rest of capital would be invested
equally by the partners.
The business will be inaugurated at the end of 2020. If the planning is properly implemented, then
about 3-4 months will be required to launch the business. This time will be taken to prepare for
the launch of the business including fixing and gathering all the necessary legal documents, find
out expected location, decoration of store, water and current connection, pre-launch marketing
campaigns, etc.

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Contents
Brief Description of the Business ................................................................................................................. 1
Brief Introduction of the Entrepreneurs .................................................................................................... 1
Total Investment ....................................................................................................................................... 1
Loan & Equity........................................................................................................................................... 1
Potential Market ........................................................................................................................................ 2
Description of Service............................................................................................................................... 2
Marketing Plan .......................................................................................................................................... 2
Major Competitors and Their Positions in Market ................................................................................... 2
SWORT Analysis...................................................................................................................................... 3
Marketing Area ......................................................................................................................................... 3
Target Customers ...................................................................................................................................... 4
Price .......................................................................................................................................................... 4
Sales Forecast............................................................................................................................................ 4
Marketing Strategy.................................................................................................................................... 4
Promotional Strategy ............................................................................................................................ 4
Price Strategy ........................................................................................................................................ 4
Market Expansion Strategy ................................................................................................................... 4
Distribution Strategy ............................................................................................................................. 4
Marketing Budget (Yearly) ....................................................................................................................... 5
Risk of the Business .................................................................................................................................. 5
Seasonal Trends ........................................................................................................................................ 5
Operations Plan ............................................................................................................................................. 5
Stages in service process ........................................................................................................................... 5
Operational Flowchart .............................................................................................................................. 6
Service Capacity ....................................................................................................................................... 6
List of Fixed Assets and Their Depreciation (Yearly) .............................................................................. 6
Repair and Maintenance Cost of Fixed Assets (Yearly) ........................................................................... 7
Cost of Raw Materials (Yearly) ................................................................................................................ 7
Workforce Engaged (Yearly) .................................................................................................................... 7
Factory Overhead Cost (Yearly) ............................................................................................................... 7
Service Cost (Yearly) ................................................................................................................................ 8
Inventory Management ............................................................................................................................. 8
Organization and Management Plan ............................................................................................................. 8
Organizational Structure ........................................................................................................................... 8
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 Succession plan ......................................................................................................................................... 9
Business start-up Activities and cost ........................................................................................................ 9
Wages of Employees................................................................................................................................. 9
Administrative Expense ............................................................................................................................ 9
Monitoring & Evaluation .......................................................................................................................... 9
Research and Development..................................................................................................................... 10
Financial Plan.............................................................................................................................................. 10
Fixed Assets ............................................................................................................................................ 10
Current Assets ......................................................................................................................................... 10
Start-Up Cost .......................................................................................................................................... 10
Total Investment ..................................................................................................................................... 10
Schedule of loan payment ....................................................................................................................... 11
Income Statement.................................................................................................................................... 11
Break-Even Pont ..................................................................................................................................... 11
Cash Flow Statement .............................................................................................................................. 12
Valuation ................................................................................................................................................ 14
Environment Issue .................................................................................................................................. 14
Ethical Issues .......................................................................................................................................... 14
Legal Issues............................................................................................................................................. 14
Intellectual Property Issues ..................................................................................................................... 14
Working Environment ............................................................................................................................ 14
Partnership .............................................................................................................................................. 14
Safety and Security Issues ...................................................................................................................... 14
Conclusion .............................................................................................................................................. 15

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Brief Description of the Business

The name of our business is Bright n clean Laundry. It is a self-service laundry, coin laundry, or
coin wash is a facility where clothes are washed and dried without much personalized professional
help. The nature of the business is service based. Our business belongs to the service industry of
our country. There are several types of services but laundry service is one of the top service in our
country on which our laundry service is unique and the attributes of our business is totally new for
our country. Our plan is to open up Laundromat business where we will provide washing machine
and dryer services. The main objective of our business is to provide convenient, clean, and friendly
laundry service. Our main target customers are the students and service holders who live outside
their family. Because most of them don’t like to wash their cloth in traditional ways and don’t
want to spent much of their time washing cloth. For operating the business, we will hire some
employees. They will work on the operational processes of this business. But we the 5 partners
will directly keep eyes on our business.

Brief Introduction of the Entrepreneurs

Our business is basically a joint venture Entrepreneurship of 5 partners. They are-

• SK Anik Hassan Rabby - BUP

• K S Taiseer Chowdhury - BUP

• Israt Iftesam Shakil - BUP

• Fariha Basher - BUP

• Mysha Fahmida Khan - BUP

Each will be having the equal percentage (20%) of share in this business since business experience
is alike. So, the ownership type is partnership.

Total Investment
Initial Investment Fixed Asset Current Asset Total
172,000 1,275,000 1,604,750 3,051,750

Loan & Equity

Loan Equity Total
12,00,000 2,751,750 3,951,750

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Potential Market
The expansion of the business will try to penetrate this brand to the students and service holders
of Mirpur DOHS area.
Demographic: Students and Service holders who are live outside family.
Geographic: Mirpur DOHS, Dhaka
Potential market is hence, students & service holders of Mirpur DOHS, Dhaka.
Description of Service
Our business is service based and we are providing laundry services to our customers but in a
different way. Other than gathering customer’s dirty cloth and washing them, we will be providing
washing machine and dryer services. We are trying to implement something new in the service
industry of our country.
The process of our service is pretty simple- people will bring their dirty clothes and use our
washing machines and dryers and will be charged for it. The process of payment is, exchanging
money with coins, which only can be used to operate the machine.
Marketing Plan
Firstly we have to let people know about our services, as this type of service is new in our country.
We will try to let people know the merits of our services: time convenient and less expensive than
other laundry services.
For advertising, we will use billboard, poster, social media and face to face advertising strategy.
And then after inaugurating our business we will provide 25% off for any services for the first
week of our business and we will continue to provide several types of offer occasionally to grab
hold of the consumer base.

Major Competitors and Their Positions in Market

There are no similar type of service provider in our country so there are no direct competitors of
our business but providing laundry service indirectly leads to competitions like the laundry service
providers.
There are lots of laundry service provider in our country and none of them are self-service.
Bandbox is the market leader of laundry service providers holding approx. 60% of the total market
share. They have 47 outlets throughout Dhaka city.

Competitors Market Share

Bandbox 60%
Others( Top Clean, Best Clean etc) 40%

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SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the company,
and describes the opportunities and threats facing our Laundromat business.

Strength Weakness Opportunities Threats

Our Business 1. Well thought 1. Competition, 1. Large target 1. Future/
out business although there market. potential
model is a significant 2. A constant, competition
addressing differentiation consistent from a large
market between the market demand franchised
demand. competitors because business.
2. Differentiated 2. A limited everyone has 2. A large
facilities. marketing dirty clothes. increase in
budget needed homes builds
to create brand and sales that
awareness. will decrease
the reliance on
Laundromats.
Other Laundry 1. They do the 1. Charge high 1. Expenditure 1. Our business
Services whole work price per cloth on clothing is is one of the
for the which divert increasing, biggest threat
customers middle class, including for their
lower class and expensive business
students to avail clothes; because we are
their services. therefore the providing best
demand for alternative of
taking care of their services.
clothes also
increases.

Marketing Area
Initially we will open one branch of our business. Gradually we will try to open up new branches
in different area of Dhaka city as per market demand. And for our first branch we choose Mirpur
DOHS area.

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Target Customers
Our target market is every household that needs Laundromat services within the immediate area
of Mirpur DOHS. There is no market segmentation strategy associated with this potential market.

Price
Services Per Load Price
Washing 120tk
Drying 80tk
Folding 150tk
Laundry Supplies 30tk

Sales Forecast
The sales forecast indicates that growth should be fairly steady as more and more people become
aware of our business and the services that offer.

Year Total services Offer Revenue

1st 21000*150 3,150,000
2nd 23000*150 3,450,000

Marketing Strategy
Promotional Strategy: It’s been shown that the best method of advertising is through word-of-
mouth. No major newspaper and campaign is planned. However, we shall run weekly specials. In
addition, we shall have an incentive program for referrals. Those customers who refer someone
else to the store will be rewarded with two free washes, and the referee will receive an introductory
gift of a free wash. In addition, we will ensure a clean environment, reliable machine, and friendly,
prompt services.
Price Strategy: We will set price based on per load of cloth. As we will provide 7kg capacity
washing machines so the amount of cloth customers can wash per load is:
General guide for capacity: 35 t-shirts
As normally used: (clothes) 2 pairs of adult jeans; 1 pair of children’s jeans; 3shirts and
(household items)2 bed sheets; 2 pillowcases; 3 dish towels; and 3small towels.
Market Expansion Strategy: Initially we will open up only branch. When our business will reach
to the breakeven point, after that we will think about the market expansion of the business. We
have plan to open up several braches in Dhaka city as per market demand.
Distribution Strategy: Customers will bring their cloth to my store and collect coin in exchange
of money. They have to collect different coin for different services. If they face any kind of

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difficulties regarding use of machine they can get help from the instruction notice board or the
employees from the store.

Marketing Budget (Yearly)

Items Budget
Promotion 460,000
Distribution of Services 120,000
Service Commission 110,000 (10% after reaching the target )
Total 580,000

Risk of the Business

The main risk of the business is the political environment of our country. We have to pay some
illegal fees to operate our business in some places. If we don’t pay or delay to pay, we may face
some problems to start and continue our business. Another risk would be if I cannot reach enough
people to give my services.
Seasonal Trends
Cloth will get dirty and people have wash their cloth when it’s get dirty so there is no peak season
or off season in this type of business. But in festival time we are expecting more customers than
other time of the year.

Month (Duration)
Peak Season 12 months
Off season 0 month

Operations Plan
Stages in service process: As our business is service based so most of the budget is fixed cost. To
start my business, first of a room (of around 1000 square feet)is to be rented and to decorate it,
additional 10 to 15 lakh taka is to be spent. After that laundry machinery equipment is to be bought.
We have planned to buy 15 high loaded washing machine and 15 dryer machine. Per laundry
machine will cost 45 to 56 thousands taka and per dryer machine will cost approximately 10-15
thousands tk.
To operate the business we have to recruit at least 4 employees. The service process of the business
would be:
Customers will bring their dirty cloth and for each cloth they have to collect coin. And they have
to exchange money to collect coin from the employees. In exchange of money coin and sufficient
detergent will be provided. By using those coins, customers can use the washing machines and
dryers. Here basically we’re providing washing machine service to customers.

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Operational Flowchart

Gathering Dividing Start

Gathering
legal Rent a room Decoration necessary
responsibilitti providing
doccuments es ammong services to
machines
employees customers

Project Implementation Schedule

Sl. Activity Duration

1 Gathering Legal Documents 30 days
2 Rent a room and decoration 10 days
3 Gathering necessary 10 days
machines
4 Worker recruitment 20 days

Service Capacity
Service Units Time Unit Price Taka
Washing 366*12 1 year 120 527,040

Drying 200*12 1 year 80 192,000

Folding 166*12 1 year 150 298,800

Total 1,017,840

List of Fixed Assets and Their Depreciation (Yearly)

Fixed Assets Quantity Price Durability Depreciation
(In Taka) (In Taka)
Washing 15 750,000 5 years 150,000
Machine
Dryer 15 300,000 5 years 60,000
TV 1 50,000 5 years 10,000
Fridge 1 32,000 5 years 6,400
Fan 4 8,000 5 years 1,600
Coffee Vending 35,000 4 years 8,750
Machine 1

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 Total 1,175,000 236,750

Repair and Maintenance Cost of Fixed Assets (Yearly)

Fixed Assets Repair and maintenance Cost (In Taka)
Washing Machine 40,000
Dryer 30,000
TV 5000
Fridge 5000
Coffee Vending Machine 8000
Total 88,000

Cost of Raw Materials (Yearly)

Description Cost
Liquid Detergent 65,000
Coffee Ingredients 15,000
Total 80,000

Workforce Engaged (Yearly)

Designation (numbers) Wages
Manager 240,000
Cashier 180,000
Supervisors (2) 180,000
Cleaner 48,000
Guard 72,000
Total 720,000

Factory Overhead Cost (Yearly)

Sl. Description Cost
1 Utilities 240,000
2 Depreciation of Fixed assets 236,750
3 Repair & Maintenance Cost 88,000
4 Rent 30,000
Total 594,750

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Service Cost (Yearly)
Sl. Description Cost (In taka)
1 Raw materials 80,000
2 Wages 720,000
3 Factory overhead costs 594,750
Total 1,454,750

Inventory Management
The types of inventory I have to manage are liquid detergents and ingredients of coffee. To manage
those inventory I have to build a store room inside my store. And for security I will setup 2 CCTV
camera inside and outside of the store room.

Organization and Management Plan

Organizational Structure

Owners/Directors

Manager & Cashier

Supervisors

This will be the structure of my organizational hierarchy. Directors are the top level workforce,
manager & cashier are the middle level employees and lastly supervisors are the lower/operational
level manager.

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Succession plan
In absence of any partner, other remaining partners will take the control of the business.

Business start-up Activities and cost

Business start-up activities Time Cost

Business plan preparation 3 months 40,000

Registration & license 1 month 32,000

Application for loan --- ---

Contract / Agreement 1 month 20,000

Recruitment 1 month 20,000

Total 1,12,000

Wages of Employees
Designation (numbers) Wages
Manager 240,000
Cashier 180,000
Supervisors (2) 180,000
Cleaner 78,000
Guard 92,000
Total 920,000

Administrative Expense
Description Cost (yearly)
Wages of Employees 720,000
Stationary 30,000
Entertainment 50,000
Total 830,000

Monitoring & Evaluation

We will always try to monitor our business at all times, and try to make our services better day by
day. At the end of the financial year, we will evaluate our services and will try to find out our fault
and take steps for not to do those faults again. Appraisals may be conducted if required.

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Research and Development
We will look into the customer’s preferences with full attention. We also keep eye on our
competitors and modern environment. We will always make sure we are going with the modern
business flow. And based on those we will always keep developing our business.

Financial Plan
Fixed Assets
Fixed Assets Present Taka Proposed Taka
Washing Machine 950,000 550,000
Dryer 500,000 250,000
TV 50,000 40,000
Fridge 52,000 25,000
Fan 8,000 7,500
Coffee Vending 35,000 30,000
Machine

Total 1,675,000 102,500

Current Assets
Items Present TK Proposed TK
Raw material Expenditure 80,000 60,000
Wages 720,000 600,000
Factory overhead Cost 594,750 450,000
Marketing Expenditure 450,000 300,000
Administrative Expenses 760,000 650,000
Total 2,604,750 2,060,000

Start-Up Cost
The Start-up cost will be 172,000 taka.
Total Investment
The total amount of investment will be 3,051,750 taka.

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Schedule of loan payment
The amounts of loan is 12 lakh taka

Year Installment Interest Total paid Balance

4 year 27,500*48 10% 1,320,000 ---
months

Income Statement
Self-Explanatory Laundry
Income Statement (5 years)

Break-Even Pont
Fixed Costs = 1675000
B.E.P = Fixed Cost X 100/ (Fixed Cost + Net Profit)/ Total Sales
Contribution Margin is 31.50%
Break- Even point in Taka 5,305,491

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Cash Flow Statement

Valuation

Projected Balance Sheet

Self-Explanatory Laundry
Balance Sheet

Items Year 1
Assets And Properties
Current Assets
Cash And Bank Balance 758,372

Inventory ----------
Other Current Assets 2,604,750
Total Current Assets 3,363,122
Fixed Assets
Preliminary expense 172,000
Machinery and equipment 1,085,000

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 Furniture & Fixture 20,000
Rental advance 30,000
Other fixed assets 90,000
Less accumulated depreciation on all fixed 236,750
assets

Total Fixed assets 1160,250

Total Fixed & Current Asset 4,523,372
Liabilities and owners’ Equity

Liabilities
(a) Sort term liabilities

Cash credit 100,000

Accounts payable ----------
Interest Payable 120,000
Taxes Payable ----------
Outstanding expenses 40,000
Total Short term liabilities 260,000

(b) Long term liabilities

Bank loan payable 12,00,000

Mortgage payable ------------
(-) Current portion of long term liabilities ------------

Total Long term liabilities 12,00,000

Total Liabilities 1,460,000

Owners’ Equity 2,319,750
Initial Capital 172,000
Profit for the year 573,622
Total Owners Equity 3,065,372
Total Liabilities &Equity 4,523,372

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Other Courses of Action
Environment Issue
We will ensure that no environmental pollution will be made by our business. We will ensure
proper waste disposal facilities for our business. We will store our wastages in a specific place and
will deposit them to the city corporation’s cleaning team timely.
Ethical Issues
Our business doesn’t have any direct competitors and as a result, might be the sole player in the
market. However, if new direct competition arises, then we will not adopt any unfair means to
harm the competitors. It will depend on first mover advantages and its strong functionalities to win
the customers. It will follow all the required laws in recording and realizing profit and loss.
Legal Issues
In Bangladesh, the legal issues of setting up a business is not much. The company needs to get
registered under the existing business laws of Bangladesh. We will ensure that all the legal
documents are present before start our business.
Intellectual Property Issues
In order to protect the name and services of The Laundry People, the company will license the
company with all legal frameworks. It will be protected by copyright so that no one else can copy
these intellectual properties. Due to the existing loopholes in the legal infrastructure of our country,
it is important to get these works done beforehand so that any kind of unavoidable circumstances
can be dealt with fairly.
Working Environment
The values of our business are such that it aims to promote total harmony among its employees.
The employees will be allowed to share their ideas, grievances, suggestions to the senior
management. A successful company is one with satisfied employees who feel that the company
values their contribution to the business and our business will try to follow that.
Partnership
All the partners will hold the equal percentages of share of the business (20%). They will invest in
equal numbers as well. They will share equal amount of profit and bear equal amount of debt.
Safety and Security Issues
Our business is not only about its customers. The employees are also equally important. As a result,
employees will be provided with all kinds of safety measures, starting from safety at work place
to safe-keeping personal information. Our business will be protected using all the legal
infrastructures and sufficient on-spot security patrolling.

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Conclusion
The idea of The Laundry People is unique and quite different to any other laundry business in
Bangladesh. This idea is completely new in Bangladesh and as of now, there are no other startups
who are providing such a service. The specialty of this idea lies in its novelty and convenience that
it will be providing to its customers. Because at the end of the day, customers are the backbone of
any business and their satisfaction and convenience will drive the future sales. The ultimate goal
of The Laundry People is to become the no.1 laundry service provider in Bangladesh. In addition,
it plans to scale its operations and expand it across Dhaka City and ultimately provide the service
nationwide. There are certain challenges and risks along the way but, they will be dealt with
appropriate course of action.

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