FEASIBILITY STUDY OF PUTTING UP MASTER TOUCH HOME CLEANING

SERVICES IN KORONADAL CITY, SOUTH COTABATO

A Feasibility Study Research Presented

To the Faculty of Business Administration
Ramon Magsaysay Memorial Colleges – Marbel Inc.
Koronadal City

In Partial Fulfillment of the Requirements for the Degree

Bachelor of Science in Business Administration
Major in Financial Management

ANTON L. SAMBULAWAN

May 2022
 Chapter 1
INTRODUCTION

Background of the Study

The absence of businesses of exactly the same nature Centrala , Surallah south Cotabato is one

of the opportunities Wais Laundry on the Go is expecting to seize. Yes, there are general merchandise

stores existing but none of them offer the products at the form and price this business offers. It must be

emphasized that the products to be sold might be inferior in packaging compared to the one’s 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

Centrala ,surallah south Cotabato 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 business suggests, Wais Laundry on the go

conserve as a wholesaler to those who want to earn 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 Wais Laundry on the Go is projected to be feasible.

Objectives of the Study

This study aimed to determine the viability Wais Laundry on the Go Centrala Surallah ,

South Cotabato.

It specifically aims to:

1. Describe the profile of producing industry in Centrala Surallah South Cotabato

2. Present the major player existing in the market in the following aspects.

a. Organizational

b. Operational /Technical

c. Marketing

d. Financial

3. Discuss the feasibility of the proposed study in the following aspects.

a. Organizational

b. Operational /Technical

c. Financial

4. Present the findings of the study in the following aspects.

a. Organizational

b. Operational /Technical

c. Financial

Scope and Delimitation

This feasibility study is limited for Wais Luandry on the Go Surallah ,

South Cotabato. The study will mainly identify the marketing, management,

operational and financial stability Wais Laundry on the Go.

Locale of the study

The study is plan to be located at barangay Centrala surallah South Cotabato

Cotabato wherein it is populated and it is advantage because there is no business like

this who offer..

Significance of the Study

The result of this study will be beneficial to the following;

To the Local Government of Baranggay Centrala. This study will serve as

basis in the formulation of a certain business operation specifically in the hospitality

industry.

To the Researchers. The researcher can also gain significance in this study.

They could improve their skills, strategy, and knowledge in engaging this study.

To the Future Researchers. This study will serve as a reference material and a

guide for future researchers who wish to conduct the same study or any study related to

resort.

Definition of terms

This section presents the definition of terms wherein the terms related to the

study will be define according to its purpose.

 Mobile Laundry - Mobile Laundry is a laundry shop using a van with built-in

washing machine, laundry dryer and other useful machines or devices for

laundry.

Clothes - Something to wear on, like dress, shirts, pants, underwear’s. It also

includes textiles, like curtains, table cloth, beddings, bed sheets and etc.

Washing Machine - A machine that is use to washed clothes easier than

manual. It has a spinner inside that spins the clothes to remove water.

Laundry Dryer - A machine that exacts or absorbs water of the laundry to dry it.

Van with a built-in Washing Machine - A van that has a total package to wash

laundry. It has washing machine, dryer, iron, and even generator inside.

Flat iron - Used to press clothes to remove creases.

Ironing Board- A small, portable, foldable table with a heat resistant surface,

where ironing is done.

Detergent Soap - Powder soap used in washing that makes clothes cleans.

Fabric Conditioner - Liquid used to soften clothes when it washed, it also give

fragrant to clothes

Chapter 2
INDUSTRY ANALYSIS

In this chapter it includes about the Rivalry Industry, the business strength and

weaknesses, bargaining power and the government policies such as processing of

permits and licenses.

Rivalry Industry

Wais Laundry on the Go has no direct competitor in the area of Barangay

Centrala Surallah, South Cotabato because this is the first business who offer this kind

of services. However, Wais Laundry on the Go has an indirect competitors like

housekeepers or maid.

The table below is the strengths and weaknesses of Master touch home cleaning

services.

Table 1. Strengths and Weaknesses

Strengths Weaknesses

 Simple organizational structure. With the few  Unestablished name and

employees of the business, organizational
problems can be addressed and resolved
immediately.
 Monopolistic character. No existing
establishment of the same industry is
operating within the immediate area of
proposed location.
 Strategic location. The business will be
situated within a commercial area in the
Barangay Centrala thus, creating accessibility
for the target customer
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 a competition
and strive to make the
 products known to the market.
The laundry shop has no
established goodwill since the
business is just to commence.

Bargaining Power of Supplier

The suppliers of Wais Laundry on the Go came from KCC Mall of Marble and

Mall of Ace were the supplies needed of the said business can buy. Therefore, the

business has more options to buy from different suppliers which put the business in a

dominant position. Having more option as a source of cleaning materials has significant
negotiating power over suppliers because it can easily switch to other suppliers this will

have more negotiating room with the suppliers.

Bargaining Power of Customers

Wais Laundry on the Go is unique and can’t be gain easily from other

suppliers since there is no direct competitors in the said area, hence customer has less

bargaining power over the services. The initial customers of this business are those

people who are busy in their work that doesn’t have time to wash their clothes. The

bargaining power is significantly high since Wais Laundry on the Go offers a good

quality of services but in affordable price to the customers.

Government Policies

The following are the basic requirements to start the business in the Philippines:

Permits and Licenses

DTI registration for registering your business trade name (BTR).

Mayor’s business permit for getting the license to operate in the city or municipality

and payment of local business taxes.

BIR registration for getting TIN, official receipts and invoices, registering the books of

accounts, and paying the national internal revenue taxes (Income tax, VAT Percentage

Tax, Withholding Taxes, etc.)

Bureau of Fire and Protection (BFP) is an agency of the Department of the Interior

and Local Government (DILG) responsible for implementing national policies related to
firefighting and fire prevention as well as implementation of the Philippines Fire Code

(PD1185).

Aside from the above-mentioned requirements, the business should also obtain

Barangay Clearance where the business is located. Other requirements to obtain are

the fire permit and sanitary permit from CENRO.

Table 2.1: Schedule of Permits and Licenses

Permits and Licenses Amount (₱)

DTI Registration 1,000

BIR Registration 5,000

Mayors Business Permit 500

Barangay Clearance 200

Bureau of Fire Clearance 1,500

Total P8,200
 Chapter 3
MANAGEMENT FEASIBILITY

This chapter consists of the organizational structure of the business.

Form of Business Organization

It is a sole proprietorship form of business. As the definition of sole

proprietorship: “it is an unincorporated business owned and run by one individual with

no distinction between the business and the owner. You are entitled to all profits and

are responsible for all your business's debts, losses and liabilities.”. The owner is

planning to manage Wais Laundry on the Go so that in the long run, they can

generate profits out of their investments and at the same time satisfy the needs of the

customers in terms of good service quality.

Organizational Structure

A business organization cannot do its operation if the necessary

personnel/employees are not present. In an organization, the people behind are the key

for the improvement of the business. They are needed to attain the projected goals of

the organization and to satisfy the market’s necessities. The organizational structure is

very important because the operation of the business is in their hand. That is why the

firm must choose carefully the most qualified individual for every position to be able to

foresee best results of the organization in the future.

Organizational Chart

The organization chart or structure is based on direct flow of authority from the

owner which is also the manager.

Manager/Owner

Laundry Shop
Store Custodian Liaison Employee
Operator

Figure 1. Organizational Chart of Wais Laundry on the Go

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.

Employee’s Profile

The management would hire individuals with near proximity in the Region XII

because the management believes that familiarity of the area is a plus for convenient

processing of company’s transactions and to effectively market the services of the

company to the target market. The management would choose the most qualified

employees in the selection process. Applicants aspiring to become a part of the

company would possess the following qualification in line with their respective job

description.
 Table 3.1: Job Description, Job Specification
Position Job Description Job Specification
 Responsible for the profitability and  Female
growth of the business  At least 25-30 years
 Establish and maintain an integrated plan old
consistent with both short and long term  Must have Time
goals and objectives management skills.
Manager
 Design, establish and maintain an  Attention to detail.
effective accounting system for financial  Communication
transactions of both division skills.
 Interpersonal skills.
 Flexibility.
 Customer service.
.
Store  Entertaining of customers on products  Male/ Female, 20-35
custodian offered. years of age
 Maintaining enough stocks for the store.  At least high school
 Setting of reorder point for inventories graduate, preferably
 Providing periodic reports on the college level.
financial position and performance of the  Excellent in oral and
division. written communication.
 Taking care of assets within the division.  Has an excellent
interpersonal skill.
Laundry Shop  Handling the actual cleaning of laundries.  Male/ Female, 20-35
Operator  Scheduling of accepting and returning of years of age
laundries to customers.  At least high school
 Procurement and maintaining of stocks of graduate
supplies to be used in service.  Knows how to operate a
 Maintaining books in accounting for washing machine
financial transactions.
 Providing periodic reports on the financial
position and performance of the division.
6. Taking care of the assets within the
division.

Recruitment and Selection Process

The manager shall personally choose and hire the employees for the business.

The specifications required for each job should be met by 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.

The figure below will show the process of how applicants will be recruited to be

placed in a relevant vacant position at Wais Laundry on the Go .

JOB POSTING
EVALUATION HIRE
Announcements
Accepted Hired interview
for job opening
candidates will will now
will be posted
be scheduled undergo seven
outside the main
and undergo an (7) days of
office premises
interview with training before
and social media
the Manager. going through
accounts, also in
job-posting the business
websites. operations.
.

Figure 2. Steps in Recruitment Process and Job Hiring Process of Wais Laundry
on the Go

Training and Development

Training and development refer to employees’ acquisition of knowledge, development

of skills and proper work attitude. Training of employees is a means Wais Laundry on

the Go to ensure job security which is necessary in giving quality services. The store

custodian must be oriented by the manager/ owner.on his line of duties and

responsibilities, particularly on dealing with sales, credit system and customer relation.

A training which will be given by the company from which 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

Wais Laundry on the Go should serve, among other things, as gradual introduction to

the organization as well as the job. The new staff member will be given the following:

1. Wais Laundry on the Go 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.

Compensation Package and Benefits

The management of the proposed business shall comply with the Department of

Labor and Employment (DOLE) compensation law for the regular employee. Every

employee will enjoy the basic mandatory benefits of SSS, PHILHEALTH, PAG-IBIG.

Depending on the position, all employees of the company will be paid in

accordance to the mandates of Labor Code of the Philippines for an eight-hour working

days for six (6) days a week. They will also entitle to have a vacation, sick and other

mandatory leaves.

Table 3.2 Compensation and Benefits

Compensation and Benefits (Monthly)
Monthl 13th SSS PHILHEALT PAG-IBIG
No. of y Month Employer Employer Employer
Position
employee Salary Pay Share (₱) Share (₱) Share (₱)
Rate (₱)
Manager 1 9,600 9,600 800 150 100
Shop 150 100
3 8,400 8,400 800
operator
Store
custodian
1 8,100 8,100 800 150 150
26,100 26,100 2,400 450 450
Business Policies

Attendance and Time-off Policies- Attendance policies define how employees may

schedule time off or notify superiors of an absence or late arrival. This policy also sets

forth the consequences for failing to adhere to a schedule, for example, employers may

allow only a certain number of absences within a specified time frame. The attendance

policy discusses the disciplinary action employees face if they miss more days than the

company allows.

Absenteeism

 An employee is absent when he/she is unavailable for work as assigned

scheduled and such time off was not scheduled approved in advance as required

by administrative notification procedure.

Tardiness

An employee is tardy when he/she;

 Fails to report for work at the scheduled work time.

 Takes an extended meal or break period without approval.

Time in and Time out

Employees are required to follow established guidelines for recording their actual hours

worked. A missed clock in/out is a violation of this policy and includes:

 Failure to clock in/out on their designated time clock at the beginning and/or end

of their assigned time schedule.

 Failure to clock in/out on their designated time clock for the meal break
  Failure to accurately and timely report time worked

 Clocking in/out early (or late) of assigned shift without prior approval

Dress Code Policy-Employees of Wais laundry on the Go must always present a clean

and professional appearance to our beloved customers as they also reflect the

company’s identity.

Code of Conduct- These are rules, principles, values, and employee expectations,

behavior and relationships that an organization considers significant and believes are

fundamental to their successful operation. Each employee should do their roles with an

appropriate attitude and work ethic.

Performance Appraisal- Harmonious environment within the organization helps

workers to perform efficiently and effectively with every given circumstance they are

engaged into,

Compensation packages which include bonus, high salary rates and extra

benefits, are given to employees and pre-requisites are dependent on performance

appraisal. Also, employees are given the chance to be promoted for being efficient at

work. In this regards, inefficient workers can be dismissed or demoted in case.

Every violation committed should be in black and white acknowledged by the

employee. And consequences are established in order not to tolerate those violations

and will not go out of hand to the extent that termination is the only left solution.
 Chapter 4
MARKETING FEASIBILITY

This chapter discusses the services description, company name, company logo,

positioning, target market, projected market share, location, and pricing scheme,

marketing strategy, promotion and advertising and projected sales.

Services Description

Wais laundry on the Go offers a service that involves costumers pay by weight for their

laundry, with the service washing, drying, and folding the laundry. Additional services

like stain treatment, dry cleaning, and ironing are also offer on Wais laundry on the Go

services.

Company Name

The name of the business is Wais laundry on the Go because Wais means wisely

decision in having your laundry with no hassle , convenient and time saving. The

business wants to make sure that the services provide and offer is the best. Wais

laundry on the Go is providing a proper acceptable and satisfactory to the needs of the

consumer.
Company Logo

Figure 3. Logo

The business came up with this logo because we believed that it can reflect and

represent the main business essence thoroughly. Owner chose to put an image of

washing machine and hanger which is the primary equipment we use in Wais Laundry

on the Go is also put in the logo to recognize the name of the business.

Positioning

Wais Laundry on the Go will create a legacy as the leading home cleaning services

within Barangay Centrala Surallah South Cotabato in the next 5 years. The business will

build loyalty by always delivering on customers a memorable experience and by

engaging service excellence. The competitive advantage of Wais Laundry on the Go is

that the business will offer a good quality of services. Additionally, the owner wants to

ensure that customers will surely enjoy the services of the said business. The business

would carry the company name Wais Laundry on the Go. Its purpose is to provide a

proper acceptable and satisfactory to the needs of the consumer.

Target Market

The target markets of proper acceptable and satisfactory to the needs of the

consumer.are those people who’s busy in working that doesn’t have time to clean and

fix things in their clothes.

Projected Market Share

The figure below is the projected market share of Wais laundry on the Go, based

on the conducted survey by the researcher.

Sales
10% supplies and equipments
25%
20% Laundry Shops

employees

45% others

Figure 4. Projected Market Share

Place Location

Wais laundry on the Go, will be located at Barangay Centrala, South Cotabato.

This proposed location will be a great and advantage because the researcher found

out that no one tries to have a business-like laundry services in the area.
Pricing Scheme

The pricing scheme will be used in the business is value-based pricing because

the business believes that a strategy of setting prices primarily based on a consumer's

perceived value of the product or service in question. Value pricing is customer-focused

pricing, meaning companies base their pricing on how much the customer believes a

product is worth.

Table 4.1 Pricing Scheme

Wash Dry Wash Dry Press Handwashin Special Items

Fold (Per Kilo) g (Per kilo)
(Per Kilo) (Per kilo)
P 23.00 P 65.00 Wash-Dry- Jeans/Maong - P 30
fold P 60.00 Bed Sheet/Towel - P
Minimum of 3 Without hanger P Wash-Dry- 45
kg 65 Press P Comforter - P 65
65.00

Marketing Strategy

Since it is a new business, the owner will utilize way to promote the business,

which include posting tarpaulins on the provincial road

Promotion
 In promoting the sales of the proposed business, strong customer service would

be implemented. The proposed business is also encouraging customers to share a

word about our product by giving them a discount if ever they can bring as a customer

because customers tend to believe their friends recommendations.

Internet Marketing

Today’s marketing is mostly done on the internet because the number of

internet users is rapidly increasing. People visit the internet nowadays to look for

feedback and business information. Compared to traditional forms of advertising,

internet marketing is also cheaper and more effective. It could be implemented quicker

than others, where it would hit a target audience in less than an hour or a couple of

days. Wais laundry on the Go would have a Facebook web page where customers can

see all the shop details such as price, services available and the customer's

comments will also be posted.

Projected Sales

Table 4.2 shows the analysis of sale Wais laundry on the Go for the five years of

its operation and table 4.3 for the projected sales performance of the business. It

indicates that for the first year of operation it notably generates a gross income of

P1,648,920.00. For the secondary year and succeeding years the business assumes a

five percent (5%) in annual gross income.

Table 4.2 Analysis of Sale

Estimated Total No. of Total Sales in
Rate per
Kg. of Sales Weeks Year 1
Kg.
 Laundry per per in a
Week Week Year
Wash-Dry-Fold 300 ₱23.00 6,900.00 52 ₱358,800.00
Wash-Dry-Press (with 72 70 5,040.00 52 262,080.00
hanger)
Wash-Dry-Press (w/o 73 65 4,745.00 52 246,740.00
hanger)
Hand Washing (Wash-Dry- 25 60 1,500.00 52 78,000.00
Fold)
Hand Washing (Wash-Dry- 25 65 1,625.00 52 84,500.00
Press)
Special Items
Jeans/Maong 85 30 2,550.00 52 132,600.00
Bed Sheet/Towel 85 45 3,825.00 52 198,900.00
Comforter 85 65 5,525.00 52 287,300.00
TOTAL REVENUE 750 ₱1,648,920.00

Projected Sales Forecast

Services Year 1 Year 2 Year 3 Year 4 Year 5

Wash-Dry-Fold ₱358,800.00 ₱288,943.2 ₱303,390.36 ₱318,559.878 ₱334,487.88

Wash-Dry-Press ₱262,080.00 ₱318,559.878

(with hanger) ₱275,184.00 ₱288,943.2 ₱303,390.4
Wash-Dry-Press ₱246,740.00 ₱334487.8719
(w/o hanger) ₱288,943.2 ₱3033,90.4 ₱318,559.9
Hand Washing ₱78,000.00 ₱94,809.4875
(Wash-Dry-Fold) ₱81,900.00 ₱85,995.00 ₱90,294.75
Hand Washing ₱84,500.00 ₱102,710.2781
(Wash-Dry-Press) ₱88,725.00 ₱93,161.25 ₱97,819.31
Special Items
Jeans/Maong ₱132,600.00 ₱139,230 ₱146,191.5 ₱153,501.1 ₱161,176.1288
Bed Sheet/Towel ₱198,900.00 ₱208,845 ₱219,287.3 ₱230,251.6 ₱241,764.1931
Comforter ₱287,300.00 ₱301,665 ₱316,748.3 ₱332,585.7 ₱349,214.9456
Grand Total ₱1,648,920.00 ₱1,673,435.40 ₱1,453,716.91 ₱1,844,962.64 ₱1,937,210.66
Table 4.3 Projected Sales Forecast
 Chapter 5
Technical/Operational Feasibility

This chapter discusses and show about the technical viability of proposed

business which comprise the layout of the business, suppliers, raw materials and

procurement schedules of equipment, machineries, furniture and fixture. It also

represents the operational process and waste disposal management.

Commercial Space for Rent

The space will undergo some sort of renovation just to maximize the

space intended for the business since the space is not that large enough to

settle all the equipments or other furniture. The rent will be 2 months

deposit and one month advance total 30,000.00 on first month and cost

10,000.00 pesos on a monthly basis onward provided by a lease

contract for minimum of 1 year and renewable. Below shows the innovation

cost for the space rented.

Estimated
Description of Jobs
Cost
Fabrication and Installation of the
following:
Cabinets 5,500.00
Counter tables 6,100.00
Divisions 5,200.00
Ironing Board 4,000.00
Total Cost for Furniture’s and
20,800.00
Fixtures
Leasehold Improvements
Electrical works for the lights and connections
to the machines including 3,000.00
the materials and labor
Painting including materials and
3,500.00
 labor
Plumbing works for the installation of water
connections to the machines and drainage 12,000.00
system (septic tank)
TOTAL 18,500.00

Space layout

Figure 2. Layout

The floor plan was designed intended to facilitate the

work flow and show how the space looks like.
Procurement Schedules

Table 5.1 Budget Allocation

Table 5.2 Schedule of Equipment and supplies

Particulars Quantity Unit Cost Total Cost
9kg Lg washing Machine 2 64,295
128590
7kg Sensor Dry Dryer with Iron 2 46,295
Aid 92590
Water Tank 1 10,000.00 10,000.00
Exhaust fan 1 6,000.00 6,000.00
Weighing Scale 1 3,500.00 3,500.00
Steam Flat Iron 1 1,095.00 1,095.00
Computer Set 1 12,879.50 12,879.50
Total 144,065 254,654.5

Table 5.3 Schedule of Furniture & Fixture

Table 5.4 List of Utilities

Utilities Expenses Monthly Expenses Annual Expense
Telephone and Internet 2,000 24,000
Electricity 8,000 96,000
Water 10,000 120,000
Total P14,000 P168,000

Table 5.5 List of Supplies

Particulars Quanti Unit Cost Total Cost
ty
Gloves 2 99.50 199
Laundry Basket 10 200 2000
Dipper 3 90 270
Hangers 5 doz 144 720
Face Mask 2 100 200
Tagging paper 50 180 9000
Ballpens 12 5 60
Scotch tape 40 12.50 500
 Record Book 11 100 1100
Calculator 1 200 200
Water Hose 20 150 3,000
Order Slip 10 337.50 33750
Plastic Bag 100 90 9000
Detergents 12 1625 19500
Fabric Softener 40 190 7600
Fabric Freshener 40 250 10000
Liquid Bleach 40 82 3280
total 3,855.50 100,180

Operational Process

Fig 24. Operating Procedure

The above chart shows the laundry process.

process is explained as below:
1. Tagging - the clothes are firstly tagged with a specific number, mentioned

in the invoice given to customers. This procedure is used for identification of

clothes once ready for collection for customers.

2. Sorting - After tagging the clothes are arranged in different sets. Some

people will sort by color. Other sort by fabric type.

3. Pre-treatment of clothes – soaking in hot water.

4. Washing - The clothes are washed in washing machine using detergent

washing powder and or bleach on white.

5. Drying - The clothes washed are transferred to dryers.

6.Packing - Once pressed, the clothes are properly hanged and covered in the plastic

wrap and then tagged so that it can be easily identified.

Waste Disposal Management

Our customers are always our priority. We would like to give them a one

hundred percent satisfaction and the maintenance of cleanliness in all areas of our

store is included in the customer requirements. So, Wais laundry on the Go

encourages all the members of the organization especially we are in the cleaning

services industry to strictly comply with the set of standards in cleanliness specifically

with the proper disposal of waste.

 M Wais laundry on the Go will provide two trash bins in the shop with cover and

proper label for segregation will be observed to assure the safety on the preparation of

our products. There will be one small trash bin in the counter area. The accumulated

garbage per day will be collected by the garbage collectors of the city. This kind of

system will be continually observed in our day-to-day operation.

 Chapter 6

FINANCIAL FEASIBILITY

This chapter discussed the sources of funding, financial schedule, financial

assumption, balance sheet, income statement, projected cash flow statement, payback

period, return on investment, debt ration and return on assets.

Source of Funding

Funding is the fuel that powers a business. A business without appropriate

funding source will be drown in a sea of debt. The source of funds of the proposed

business is from the personal savings of the owner amounting two million pesos

(P2,000,000).

Investment Cost

The investment will be used in the payment of building construction acquisition of

machine and equipment, furniture and fixtures and working capital needed for the

establishment of the propose business.

Table 6.1 Investment Cost

Investment Cost
Particulars Amount
rental 30,000
Supplies 100,180
Equipment and Machineries 254,654.5
Furniture’s and Fixtures 20,800
Leasehold Improvements 18,500
Business Permit and Licenses 5,842
Cash on Hand 570,023
Total P1,000,000
Financial Schedule

13th
Monthly
No. of Month Year 1 Year 2 Year 3 Year 4 Year 5
Position Salary
employee Pay
Rate (₱)

Manager 1 9,600 9,600 124,800 124,800 124,800 124,800 124,800

Shop 8,400 327,600 327,600 327,600 327,600 327,600

3 8,400
operator
Store 8,100 105,300 105,300 105,300 105,300 105,300
1 8,100
custodian
Total 4 P26,100 P 26,100 P557,700 P557,700 P557,700 P557,700 P557,700

Table 6.2 Schedule of Salaries and Wages Expenses

Table 6.3 Schedule of Employees Benefits (Employer Share)

Employees benefits Monthly Annual
SSS Employer Share (₱) 4000 48000
PHIC Employer Share (₱) 750 9000
HDMF Employer Share (₱) 500 6000
Total P 5250 P 63000

Table 6.4 Schedule of Utility Expenses

Utilities
Year 1 Year 2 Year 3 Year 4 Year 5
Expenses
Telephone 24,000 25,200 26,460 27,783 29,172.15
and Internet
Electricity 96,000 63,000 66,150 69,457.5 72,930.38
Water 120,000 88,200 92,610 97,240.5 102,102,53
Total of P168,000
P176,400 P185,220 P194,481 P204,205.06
Utilities

Table 6.5 Schedule of Advertising & Promotion

Advertising & Promotions
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Tarpaulin 10,000 10,500 11,025 11,576.25 12,155.06
Total P10,000 P10,500 P11,025 P11,576.25 P12,155.06
Table 6.7 Schedule of Permits and Licenses
Permits and
Year 1 Year 2 Year 3 Year 4 Year 5
Licenses
DTI Registration 1,000 1,050 1,102.5 1,157.63 1,215.51
BIR Registration 5,000 5,250 5,512.5 5,788.13 6,077.54
Business Permit/ 500 525 551.25 578.81 607.75
Mayor’s Permit
Barangay 200 210 220.5 231.53 243.11
Clearance
Bureau of Fire 1,500 1,575 1,653.75 1,736.44 1,823.26
Clearance
Total P8,200 P8,610 P9,040.5 P9,492.54 P9,967.17

Table 6.8 Schedule of Supplies

Particulars Quantity Unit Cost Total Cost
Gloves 2 99.50 199
Laundry Basket 10 200 2000
Dipper 3 90 270
Hangers 5 doz 144 720
Face Mask 2 100 200
Tagging paper 50 180 9000
Ballpens 12 5 60
Scotch tape 40 12.50 500

Record Book 11 100 1100

Calculator 1 200 200
Water Hose 20 150 3,000
Order Slip 10 337.50 33750
Plastic Bag 100 90 9000
Detergents 12 1625 19500
Fabric Softener 40 190 7600
Fabric Freshener 40 250 10000
Liquid Bleach 40 82 3280
total 3,855.50 100,180

Table 6.9 Schedule of Depreciation Expense

Depreciation
Yearly
Particulars Acquisition Cost Estimated life
]
Equipment and Machineries 254,654.5 5 years 50,930
Furniture & Fixtures 38,500 5 years 7,700
Total P75,956 P15,191.2
Table 6.11 Schedule of Equipment & Machineries
Particulars Quantity Unit Cost Total Cost Est.
Depreciation
per
Life
Year (₱)
9kg Lg 2 64,295 5 128,359
washing
Machine
128590
7kg Sensor 2 46,295 5 9259
Dry Dryer
with Iron Aid 92590
Water Tank 1 10,000.00 10,000.00 5 2000
Exhaust fan 1 6,000.00 6,000.00 5 1200
Weighing 1 3,500.00 3,500.00 5 700
Scale
Steam Flat 1 1,095.00 1,095.00 5 219
Iron
Computer 1 12,879.50 12,879.50 5 2575.9
Set
TOTAL 144,065 254,654.5 144,313

Table 6.12 Schedule of Furniture & Fixture

Description of Jobs Estimated

Cost
Fabrication and Installation of the
following:
Cabinets 5,500.00
Counter tables 6,100.00
Divisions 5,200.00
Ironing Board 4,000.00
Total Cost for Furniture’s and 20,800.00
Fixtures
Leasehold Improvements
 Electrical works for the lights and
connections to the machines including 3,000.00
the materials and labor
Painting including materials and 3,500.00
labor
Plumbing works for the installation of water
connections to the machines and drainage 12,000.00
system (septic tank)
TOTAL 18,500.00

Table 6.15 Schedule of Projected Sales Forecast

Projected Sales Forecast

Services Year 1 Year 2 Year 3 Year 4 Year 5

Wash-Dry-Fold ₱358,800.00 ₱288,943.2 ₱303,390.36 ₱318,559.878 ₱334,487.88

Wash-Dry-Press ₱262,080.00 ₱318,559.878

(with hanger) ₱275,184.00 ₱288,943.2 ₱303,390.4
Wash-Dry-Press ₱246,740.00 ₱334487.8719
(w/o hanger) ₱288,943.2 ₱3033,90.4 ₱318,559.9
Hand Washing ₱78,000.00 ₱94,809.4875
(Wash-Dry-Fold) ₱81,900.00 ₱85,995.00 ₱90,294.75
Hand Washing ₱84,500.00 ₱102,710.2781
(Wash-Dry-Press) ₱88,725.00 ₱93,161.25 ₱97,819.31
Special Items
Jeans/Maong ₱132,600.00 ₱139,230 ₱146,191.5 ₱153,501.1 ₱161,176.1288
Bed Sheet/Towel ₱198,900.00 ₱208,845 ₱219,287.3 ₱230,251.6 ₱241,764.1931
Comforter ₱287,300.00 ₱301,665 ₱316,748.3 ₱332,585.7 ₱349,214.9456
Grand Total ₱1,648,920.00 ₱1,673,435.40 ₱1,453,716.91 ₱1,844,962.64 ₱1,937,210.66
5

Financial Assumption

1. The proposed business will be in form of sole proprietorship.

2. The sales will increase 5% annually.

 3. The operating expense will increase 5% annually except for salaries and

wages, employees benefits and depreciation expense.

4. The straight-line method will be used in the computation of depreciation.

Table 6.16 Projected Income Statement

  Year 1 Year 2 Year 3 Year 4 Year 5

₱1,648,920.00 P1,539,720 P1,616,706 P1,697,541.3 P1,782,418.4

Service Revenue

Less: Operating Expenses

Utilities Expense 168,000 176,400 185,220 194,481 204,205.06

Salaries and wages 832,000 832,000 832,000 832,000

P557,700

Permit and Licenses 8,200 8,610 9,040.5 9,492.54 9,967.17

SSS/PHIC/HDMF P 63000 95,040 95,040 95,040 95,040

Advertising and

Promotion 10,000 10,500 11,025 11,576.25 12,155.06

Furniture & P38,500

Fixture

Supplies Expense 100,180 17,813.25 18,703.91 19,639.11 20,621.07

Depreciation 144,313 15,191.2 15,191.2 15,191.2 15,191.2

Expense

Total Operating
1,051,393
Expenses 1,176,554.45 1,188,270.61 1,200,572.6 1,213,489.69

Net Income P P363,165.55 P428,435.39 P496,968.7 P568,928.71

Table 6.17 Projected Cash Flow

  Year 1 Year 2 Year 3 Year 4 Year 5
Operating
Activities:          
 Net Income P301,003.8 P363,165.55 P428,435.39 P496,968.7 P568,928.71
Add:
Depreciation 15,191.2 15,191.2 15,191.2 15,191.2 15,191.2
SSS/PHIC/HDMF
Payable 95,040
Cash Flow from
operating
activities P411,235 P378,356.75 P443,626.59 P512,159.9 P584,119.91

           

INVESTING:          
Building
Construction (402,350)
Equipment & (37,456)
Machineries        
Furniture & (38,500)
Fixtures        

Land Acquisition (1,000,000)

Cash Flow from
Investing (1,478,306
Activities ) - - - -

           
Financing
Activities:          
Initial Capital of
Owner 2,000,000        
Cash from
financing
activities 2,000,000 - - - -
Net Change in
Cash Flow 932,929 378,356.75 443,626.59 512,159.9 584,119.91
Add: Beginning
cash balance - 932,929 1,311,285.75 1,754,912.34 2,267,072.24
Ending Cash
Balance P932,929 P1,311,285.75 P1,754,912.34 P2,267,072.24 P2,851,192.15

Table 6.18 Projected Balance Sheet

    Year 1 Year 2 Year 3 Year 4 Year 5

             
 ASSETS            

  Cash 932,929 1,311,285.75 1,754,912.34 2,267,072.24 2,851,192.15

Building 402,350 402,350 402,350 402,350 402,350

Furniture and
  Fixtures 38,500 38,500 38,500 38,500 38,500

  Land 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000

Equipment &
  Machineries 37,456 37,456 37,456 37,456 37,456
Less:
Accumulated
  Depreciation (15,191.2) (30,382.4) (45,573.6) (60,764.8) (75.956)
TOTAL
ASSETS   P2,396,043.8 P2,759,209.35 P3,187,644.74 P3,684,613.44 P4,253,542.15

             

LIABILITIES            
SSS/PHIC/HDMF P95,040 P95,040 P95,040 P95,040 P95,040
  Payable
 Total
Liabilities   P95,040 P95,040 P95,040 P95,040 P95,040
OWNER’S
EQUITY            
P2,301,003.8 P2,664,169.35 P3,092,604.74 P3,589,573.44 P4,158.502.15
  Owner’s Equity
Total P2,301,003.8 P2,664,169.35 P3,092,604.74 P3,589,573.44 P4,158.502.15
Owner’s
Equity

             
TOTAL
LIABILITIES
AND
EQUITY   P2,396,043.8 P2,759,209.35 P3,187,644.74 P3,684,613.44 P4,253,542.15

Table 6.19 Changes in Owner’s Equity (5 years)

Year 1 Year 2 Year 3 Year 4 Year 5

Beginning 2,000,000 2,301,003.8 2,664,169.35 3,092,604.74 3,589,573.44

 Capital

Add: Net
Income P301,003.8 P363,165.55 P428,435.39 P496,968.7 P568,928.71

Total P2,301,003.8 P2,664,169.35 P3,092,604.74 P3,589,573.44 P4,158.502.15

Ending
Capital

Return on Investment

Probability is arguably one of the principal financial objectives of the project the

rate of return on (ROI) is a measure of the management efficiency in using available

source. Capital is a scares resource and must be used efficiently. ROI will be

determined by using the formula given on the page the higher the rate of return the

more profitable is the project. The following shows the ROI schedule of Veggie Ice

Cream Parlor.

ROI= Net Income

Total Investment

Table 6.20 Projected Return on Investment

Year Net Income Investment ROI
Year 1 P301,003.8 2,000,000.00 0.15%
Year 2 P363,165.55 2,000,000.00 0.18%
Year 3 P428,435.39 2,000,000.00 0.21%
Year 4 P496,968.7 2,000,000.00 0.25%
Year 5 P568,928.71 2,000,000.00 0.28%
Payback Period

The payback period is the length of time necessary to recover the entire cost of

an investment from the resulting annual cash flow. The program shall take 0.35 years to

fully recoup its initial investment in the form of investment net cash inflow. The payback

period for the program is computed as follows.

Table 6.21 Projected Payback Period

Year Annual Cash Flow Cumulative Total
(2,000,000)
Year 1 411,235 (1,588,765)
Year 2 378,356.75 1,210,408.25
Year 3
Year 4
Year 5
Payback
Period 1.65 years

Financial Ratio

A financial ratio can be well defined as a comparative magnitude of two selected

statistical values taken from the financial statements of a business enterprise. These

financial ratios can be expressed in decimal as well as percentage values. The main

sources used to calculate financial ratio include balance sheet, cash flow statement and

income statement.

Debt Ratio

The debt ratio is the ratio between the liabilities and assets of the company. A low

debt ratio implies a conservative company. The table below shows the debt ratio of the

company in its first five years of operations.

 Table 6.22 Debt Ratio
Year Total Liability Total Assets Ratio

1 95,040 7,926,093 0.00

2 95,040 13,016,110.43 0.00
18,460,885.64
3 95,040 0.00
4 95,040 24,278,156.49 0.00

5 95,040 30,486,547.79 0.00

Return on Asset

Return on asset measures the ability of the company to generate income by

utilizing its assets. It can be viewed as the centavo amount of net income generated per

peso value of the total assets of the company. The table below shows the return on

assets of the company.

ROA= NET INCOME

Average total asset

Table 6.23 Return on Asset

Year Net Income Average Total Asset Ratio
20A P301,003.8 7,926,093 0.04
20B P363,165.55 13,016,110.43 0.03
20C P428,435.39 18,460,885.64 0.02
20D P496,968.7 24,278,156.49 0.02
20E P568,928.71 30,486,547.79 0.02
 Chapter 7
Corporate Social Responsibilty

Internal CSR

 Training

The Master Touch Home Cleaning Services would choose to have training for

the employee for them to learn about their skills that are needed for their job and

profession. The knowledge, teaching, and experiences that they learn from the training

may apply t in their self and to the company.

 Discipline and handling Work Performance Problems

 Making Performance appraisals Effective

 Practical Strategies for Motivating Employees

 Seminar

Having seminar in an is a great help for the employee. Master Touch Home

Cleaning Services would intend to have a seminar so that employees can learn more

and can receive information on training in a particular organization profession.

Seminar is a good idea for the employees to exchange information and holding

discussion.

 Organizational Citizenship Behavior Seminar

 Managing a Diverse Workforce – Impacts and Rewards

 Rethinking work Life Balance: What we can learn from Millennial

Seminar

 Sustaining high-performing Employees Seminar

 The Master Touch Home Cleaning Services would give a workshop to the

employees in order for them to learn the methods and skills to be used in the business.

Employees learn to focus especially by techniques and skills in their particular field.

 Effective Collaboration Skills

 Improving Team performance

 Managing Conflict for Success

External CSR

 Feeding Program

 Master Touch Home Cleaning Services would do a feeding program to

children and families in the community to give them the nourishment they

need to make it through another day. The company targets social safety

needs that provide both educational and health benefits to the most

vulnerable children, thereby increasing enrolment rates, reducing

absenteeism, and improving food security at the household.

 Gift giving

 Every December of each year Master Touch Home Cleaning Services

would celebrate Christmas season by giving to the adopted school or

community. The chosen beneficiaries would be the least fortunate family,

children or individual. The company would coordinate with the barangay

where the community or school is located to make this program possible&

to verify the recipients.

 Something that is bestowed voluntarily without compensation.

 Community Service
  Master Touch Home Cleaning Services would actively participate the

government programs such as clean-up drive, Tree Growing Festival every

29th June yearly and other programs that could contribute to the

empowerment of the community.

CHAPTER 8

Findings, Conclusion & Recommendation

This chapter in general provides information about the socio-economic study of

the business. This will tackle the benefits that can be rendered to the customers, the

owners and staff and how to evaluate the safety of environment from the chemicals

used in chicken poultry.

Findings

This chapter presents the summary of the findings of the feasibility study, the

conclusions and the suggestions recommended by the researchers.

Chapter I, it shows the background of the study, objectives, scope and

delimitations, significance, definition of terms. The scope of the study was only limited to

Koronadal City, South Cotabato. The location of the business is accessible enough to

meet a wider range of possible customers. The business will have competitive

advantage in terms of the prices because Master Touch Home Cleaning Services offer

its services in an affordable way to meet customer’s purchasing power at the same time

can cover up proponent’s expenses that will result to net profit.

Chapter II, it shows the review of the industry was discussed. The major

competitors in this industry are the in the said city.

 Chapter III, it discussed legal forms of the business, organizational structure,

manpower requirements, duties and responsibilities. The business will be a sole

proprietorship. Manage by the owner who will supervise the employees within their

authority. The business will be manned by the total of 4 people holding the position of

executive housekeeper and assistant housekeeper. The employees are expected to

perform their assigned task.

Chapter IV, it discussed about the service description, target market, current

market trend and opportunities, price and pricing strategy, promotional strategy, and

projected sales. As a promotional activity, the business advertises its product through

posting tarpaulins in the major streets in the City of Koronadal. The target markets of

this business are those people who have no time in cleaning their house.

Chapter V, it shows the service and technical description, operation process

service schedule supplies, furniture and fixture, equipment, location, building, utilities,

environmental safeguard/waste disposal and production cost needed by the business.

The name of the business is Master Touch Home Cleaning Services, it will operate nine

o’clock in the morning (8am) to four o’clock in the evening (4pm) Daily.

Chapter VI, showed the Income Statement, Statement of Cash Flow, Balance

Sheet, Financial Analysis, Balance Sheet ratio in five years prospective. It will also show

different schedules such as, Projected Annual Operating Expense, Projected Furniture

and Fixture, Cash Outflow, and Depreciation Expense. The initial capital requirement is

Php 2,000,000.00. The majority initial capital is used for the purchase of supplies,

furniture and fixture, equipment, building construction, land and for operational

expenses.
The projected income for the first-year operation is Php 301,003.8, for the second year,

Php 363,165.55, Php 428,435.39, for the third year, Php 428,435.39 for the fourth year

and Php 428,435.39for the fifth year with a payback period of 0.61 years.

Conclusion

1. The proposed project is feasible because the results of the study are in

conformity with the specific objectives of the project which is to provide the best

services in the market while providing a good place to work for its employees and

reasonable return for the investment by its owners and undertake a detailed

investigation of the market bearing in mind the size of the target market (potential

customer) the existing competition, project location and also the need of

consumers and to earn profit out of this kind of business.

2. In relation to industry analysis aspect, it shows that it has a good potential in

doing the business. The business was able to identify its competitors, the

strength and its weaknesses. It has also a strong bargaining power both in

suppliers and consumers.

3. In respect to its organization and management aspect it shows a sign of

positivity. The business will be easily managed and supervised since there are

only few workers to be hired to help the daily operation of the business.

4. In marketing aspect, the business located in a proper place and it was able to

identify the target market and was able to determine its market share. Also, the

business was able to project its sales within 5 years of operation.

 5. In relation to its technical and operational aspect, an encouraging result is

obtained. The business will used modernized machineries and equipment. The

lay out, services process, procurement schedule was also presented.

6. The financial aspect also shows positive result, the second year of operation is

expected to generate enough revenue to cover all the expenses incurred and at

the same time generates profit. The proposed business will be able to fully return

the initial investment within 1.65 years.

7. In the corporate social responsibility, the hired workers of the business will

beneficial because the business will help improve their standard of living through

salaries and wages.

Recommendation

According on the forgoing findings and conclusion they recommend that;

1. The staff should maintain of being respectful and joyful in order to be gain the

loyalty of their customers.

2. This feasibility study serves as the new statement of gathering information

coming from different person in order to have a solution about customer service,

standardize work, and continuous improvement and innovation.

3. To the future researcher, we are hoping that this will help you to conduct related

research, and it is useful as your basis, guide and format.

4. To the customers, who are the mouth of business, this study will help the

customers by giving standardize services, and maintaining a good price. This

study will also comply the fulfillment of customers.