University of San Carlos

Senior High School Department

Accountancy, Business and Management (ABM) Strand

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E-LABA

LAUNDRY BUSINESS AND SERVICES

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In Partial Fulfillment of the Requirements for the Course

ORGANIZATION AND MANAGEMENT (MGT 01)

_______________________________

Submitted by

Saldon, Mark Ivan Christopher C.

Agad, Joanne Kathleen P.
Araña, Jan Kathrine M.
Basubas, Alyana Lois Kristel C.
Permale, Gylliane Rae S.
Reyes, Maryah Koreen B.
Sayson, Hannah Faye M.

Submitted to

MS. JOEANAH FAITH L. BRANZUELA

Teacher
 Date Submitted: November 10, 2018

E-LABA

“Freshness at your doorstep.”

Business Address:
R.C.A.C. Bldg., Legaspi St., Brgy. Sto. Niño, Cebu City
Rosmel Bldg., A.C. Cortes Avenue, Mandaue City, Cebu
Hi-Way, M.L. Quezon National Highway, Lapu-Lapu City, Cebu

Email Address: elabalaundryservices@gmail.com

Contact Numbers: 09123456789/09224358104/09176358421

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 EXECUTIVE SUMMARY

E- laba is a service business that will personally pick up and deliver your laundry

at your doorstep. Serving you anywhere in the city with our different branches located at

Cebu city, Lapu-lapu city and Mandaue city, contact us at

09123456789/09224358104/09176358421. And with the mass advancement of

technology the company has set up different social media accounts for better customer

access. Download thee-laba app so that with a click of a button will be there in a flash

ready to serve you.

E-laba offers a wide range of service that will surely satisfy every customers need,

whatever they want will follow. From dry cleaning to ironing all the services you’ll ever

need is only at the click of a button, that is why e-laba only uses the best of the best

products and state of the art technology for the best possible outcome. But at the same

time e-laba makes sure that the products being used are eco-friendly and does not emit

harmful bacteria or chemicals that might affect the environment.

The company was founded by college friends who experienced the challenges of

laundry first hand and was able to implement their knowledge and experince in creating

this business today. They thought that starting this company would finally help those

single moms, over worked students, and busy businessmen/woman make their lives

easier and stress free. E-laba’s vision is to be the best laundry business there is to offer

while still being a helpful hand to the community and the environment.

Having the opportunity to be able to say that the company has helped different

people who are going through so much by giving them an easy convienient way of doing

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laundry is the mission to be accomplished. The company logo reprents the business and

its capabilities, that the services our company offers are clean, fresh and all the more

done quick and easy. Employees are trained to handle different situations and are to

address complaints in professional manner. The continuing growth and expansion of the

business shows how e-laba is what the people need, so choose e-laba bringing freshness

at your doorstep.

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 TABLE OF CONTENTS

Title Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3

Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

A. General Business Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-12

Business Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-9

Company Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-11

Business History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-12

Mission Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Vision Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

B. Services Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-14

C. Marketing Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15-19

D. Management Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-22

E. Operating Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23-31

F. Financial Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32-34

G. Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35-61

H. References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62-63

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A. GENERAL BUSINESS PLAN

Business Review

Having a clean surrounding is one of the key to a healthier life. It may not sound

something prominent, but with the busy modern world we have today, the laundry

business is an ever promising and growing industry (Orosa, 2014).

The laundry business is very thriving especially in urban places. With their ever-

so-busy routines, Filipinos nowadays opt to get their clothes done by laundry shops

instead of buying washing machines or hiring labanderas regularly. Doing so saves them

extra time, energy, and hassle (Golden Fiber Chem Solutions Co., 2011).

Currently, the owners can see laundry shops almost everywhere in the city. They

can really see the changes time and technology in the field of cleaning brought to them

when they remembered how hand-washing was the only option everyone had back in the

day for centuries. However hand-washing isn’t suitable for the lifestyle of most Filipinos

in these days, now that heavy traffic takes up a lot of time alongside work. While people

engage more on their career obligations, they go home with a mountain of dirty laundry

which adds to their long list of to-do activities list. They are often left with some

dilemmas:

“To buy another set of clothes or wear them again and just use strong perfumes to take

off the odor?” (Ideris, 2015)

Signing up for a full service laundry shop could lead to experiencing personal

benefits such as added convenience, energy-conservation, stress-alleviation, attending

more on their personal lives without worrying about your clothes quality being

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maintained along with being hygienic. It may aid in boosting busy people’s confidence.

Allowing them to focus on being outstanding in their different careers.

Political:

Political instability does not hinder but rather prosper any progress of economic

growth in the Philippines as a result of the government’s economic program. Although

political stability is important for business environments for it affects investor and

consumer confidence which leads to a wider impact on the economy, Philippines under

the leadership of President Rodrigo Duterte, addressed the problems adversely by having

economic programs that leads to strong growth of the Philippines’ economy which results

to moderate likelihood of political instability. Political instability problems may include

the government’s tax reform plan which has a wide impact to business.

Laundry businesses are not widely affected of the political stability or instability

of the nation for Philippines has strong economic growth that leads to progress in

businesses (Gordon, L., & Euromonitor Research, 2018).

Economic:

As the recent economic growth downturn has affected the country, businesses had

to restructure their pricing system and sales greatly. This is due to the decrement in the

country’s economic growth and the recent implementation of the increase in inflation

rate. The country’s inflation rate has essentially accelerated to 6.4% in August 2018 as

announced by the Philippine Statistics Authority, leaving a great impact to the country’s

economic standing, including retail prices of goods, services and important necessities

such as electricity, gasoline, fuel, food and transport (De Vera, 2018). Hence, this made a

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huge impact in the pricing system of businesses, directly affecting the expenses of

consumers.

This results to an indirect impact on businesses like that of laundry services. The

adverse effect of this inflation does not only influence the rate of sales but also the cost of

the company’s sales, increasing the tax rate on electricity and oil, which are essential

elements in the household and business operations (Household Energy Consumption

Survey, 2011).

Social:

In the environment today people tend to have little to no time when it comes to

doing laundry. Hand washing takes up time and energy and people nowadays don’t have

that, with work and school it’s just not that applicable anymore. Students to workers buy

washing machines for a quick and easy clean. Imagine from having to take hours

scrubbing trying to take the stain of the shirt to waiting just for a few minutes for the

laundry to be clean and be able to do other important activities or just relax. Quick and

easy but something better than that, is not having to do that at all. Laundry services that

can easily pick and deliver laundry are the trend right now. Not having to leave the

comfort of home but still be able to get that clean set of clothes. Some on the other hand

tend to avoid laundry services because of the negative possibilities that might occur, like

damages and loss of items. Social classes or economic status of the consumers may affect

the business because people with no or little money tend to do their laundry at home

rather than choosing a laundry shop’s services. Lifestyle may also affect the business

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because if a family member is just at home and is used to doing laundry, they will just do

the laundry by themselves.

Technology:

With the development of technology, more services can be offered to laundry

businesses. A good example for this is dry-cleaning services where it is a process for

cleaning clothing and textiles using chemical solvents other than water. Another effect of

technology are innovated washing equipment that functions with speed and efficiency.

The use of washing machines allowed laundry to be done more efficiently. Hence,

investment to the development of technology does not only promote time management

and convenience but also the advancement and improvement of our everyday lives.

Legal:

The government’s tax reform program has positive and negative effects on

business. The Tax Reform for Acceleration and Inclusion (TRAIN) is the first package of

the comprehensive tax reform program (CTRP) envisioned by President Duterte’s

administration, which seeks to correct a number of deficiencies in the tax system to make

it simpler, fairer, and more efficient. It also has a vision of reducing poverty rates in the

Philippines by the year 2022. Train law will affect the business because small venturing

business like this can benefit from Train Law because there is a VAT (value added tax)

exemption from small businesses. In our laundry business, lowered tax can benefit our

small venturing business. But, taxes on LPG, diesel, gasoline, cars and automobiles have

great effect on our business for our services offers free delivery and thus affects our

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business when prices of these things increase leading to increase value of services and

some complications in customer satisfactory (DOF, n.d.).

Environmental:

Traditional industrial laundry operations are incredibly water-intensive. There is

also a significant environmental cost attached to use of chemical in the laundry process.

Certain chemicals that get used in the washing process are added to the water waste of the

laundry creating potentially toxic effluent that can harm soil and pollute the water table.

However, the development of bio-degradable products and natural detergents aids greatly

in diminishing pollution in water bodies (Clean Cult, 2017). Moreover, businesses that

have direct ecological impact like laundry services undergo through scanning and

inspection by the Environmental Protection Agency (EPA, 2010). This agency helps

reduce risks factors, particularly chemicals that contribute to the decimation of the

environment (CQ Researchers, 2010).

Company Profile

E-Laba is a service business that offers the pick-up, washing, drying, ironing,

folding and then the delivery of your soiled and dirty laundry – from clothes, to beddings,

even bags, shoes and stuffed animals. This business can also be reached through social

media since it wants to expand its target market to internet-savvy customers. To give

more convenience to the clients, just a click on the application of E-Laba and a few taps

will lead you to a user friendly system where you are free to choose your desired service,

indicating the special care you may want, from where they will be picked up and

delivered including the time you prefer.

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This organization is owned by a corporation of business individuals who have a

background on business studies and possessing various kills and necessary experiences.

They have seen the difficulty people face with regards to cleaning/maintaining their own

clothings, apparels, linens, duvets and more.

The logo represents the key features of the business wherein a delivery truck has

an image of a laundry machine with the first letter of our company name with speed boots

on its rear wheels. This symbolizes how E-Laba will bring quick and quality of laundry

service to the clients.

Strengths

• A wide array of services.

• Quick and convenient

• Offers Pick-up and Delivery service

• Strong internet presence through social media and availability of our app on

App store and Google play for android and apple users.

• Well-trained and ethical workers

Weaknesses

• Pick-up and delivery is available only at nearby cities / towns

• Higher laundry rate compared to other companies

• Possibility of damaging customer’s clothes

Opportunities

• People getting busier and busier which makes them opt for laundry services

• Increasing number of hotel and dorm tenants

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 • The use of technology makes the business operation more efficient and at the

same time exceeds customers’ satisfaction

• Constant and consistent market demands that will make the business steady or

even grow.

Threats

• There are many well established competitors in this field

• Most customers prefer self-service laundry shops

• Implementation of tax reform policies

• Oil price hike / High transportation costs

Business History

It all started with a struggle that we endure in our daily lives. E Laba was an idea

that first came into mind when company owners saw the need to step in and give a break

to people when it comes to basic household chores. These people which market includes

are single mothers that are full time working, students living in dorms being bombarded

with school work, and businessmen or young professionals who spend days traveling

back and forth, from one location to another while still trying to stay fresh and clean.

These struggles not only diminish our time but also our strength leading us to neglect

simple duties and end up with hampers full of unwashed clothes.

We started E Laba with not much of a profitable ambition or dream but rather

hope that it could lessen the burden of these people and be a hero in a small but practical

way even in terms of clothes, bringing them brightness and freshness to be ready for

tomorrow. With the increasing interest in such a business model, we only wish to aid the

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poor wrinkly hands of our dear helpers and mothers and having them soft and smooth

once more. We emission that people will come to us not out of want, but of need., with

all that’s happening in people’s busy lives, time being a luxury, something people don’t

have much of these days and that’s why we, E Laba, will make time for you and bring

freshness to your doorstep

Mission Statement

E-Laba’s mission is to give people an easy convenient way of doing laundry

through offering a full-service laundry by pick-up and through house to house deliveries

and with the latest technologies in cleaning at an affordable rate, coupled with a strong

online presence through social media and our e-Laba, mobile application.

Vision statement

E-Laba’s vision is to be the fastest local full-service laundry business that will

satisfy the customer’s needs, easing the schedules of busy individuals excellent quality,

good services, freshness, and value contributing to the betterment of our environment but

in our little but significant way.

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B. SERVICES PLAN

With the flourishing needs of people to do laundry because of their busy

schedules and stuff, E-Laba Laundry and Services is ready to help you and ensures you

that your clothes are in reliable hands. Although there are many successful laundry shops

all over the world, e-Laba is exceptional for its products and services are quite different

and thus offer more. E- Laba offers a wide array of services:

Services: Price:

1) Laundry Washing & Drying 30 pesos/kilo

2) Dry Cleaning 30 pesos/kilo

3) Hand pressed 30 pesos/kilo

Additional Services:

Services: Price:

1) Pick-up 10 pesos

2) Delivery 10 pesos

3) Iron 15 pesos/kilo

4) Steam 25 pesos/kilo

Bulk Packages (Small Hotels&Hostels)

Services Prices

1) Package 1: 15kg-20kg 550 pesos

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 2) Package 2: 20kg-30kg 750 pesos

3) Package 3: 30kg-40kg 1,100 pesos

(Sample Service)

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C. MARKETING PLAN

Target Market

E-Laba’s laundry and services aims to extend their service offerings to:

Families

Household moms, especially single moms, who have enough money to avail

laundry services are one of our primary target market. They have lesser time for rest and

leisure. Thus, they would tend to seek more convenient ways in performing household

chores, especially laundry.

Students

Senior high school students and college students staying in dormitories and living

far away from home are also our primary target market. Aside from all the school works

and personal schedules, they also have to face some laundry problems. However, some

dormitories lack in laundry abilities or do not have enough laundry facilities. This would

lead them to opt for laundry services.

Professionals and Working Individuals

Professionals or working individuals from ages 21 and above with the capability

to avail laundry services are also one of the target markets. With their work load, they do

not have enough time to wash their laundry because of limited time due to work.

Small Hotels, Hostels and Guesthouses

Some small hotels, hostels and guesthouses who do not have their own laundry

department are one of the target market. They used a lot of linen in their business

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operations and having no laundry department puts them at a disadvantage. This would

lead them to avail laundry services. They would also be the laundry business' bulk

accounts.

Product Strategies

E-Laba uses eco-friendly chemicals in cleaning the laundry that aren’t harmful to

the customers and the employees. This would result in to a higher quality laundry. E-

Laba also uses energy-efficient machines to minimize the electricity consumption during

business operations.

Moreover, E-Laba has an application where one can avail services for laundry and

lets one choose their desired mode of laundry. One can also choose what type of service

is available for the type linen he has. The company also offers pick-up and delivery.

Similar to that of Grab’s feature, it tracks the customer’s location, picks up and delivers

back your laundry. It offers both quality service and convenience to all customers.

E-Laba’s intangible attributes are its ability to meet or even exceed customer

expectations consistently, its speed in responding to customers’ demands, and its

anticipation of new customer needs. Intangible attributes are difficult for competitors to

copy, thereby giving E-laba’s competitive advantage.

Pricing Strategies

E-Laba considers the target market’s financial status and at the same time, provides a

good quality service to its customers. The following pricing strategies used are the

following:

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 1. Premium Pricing

The value of this service is reflected in its premium price. The service pricing is

based on the “peso per kilogram” system in laundry businesses. During pick-up, the

customer’s laundry is weighed. Each kilogram corresponds to an amount of 30 pesos and

is added to the pick-up and delivery fee for only 10 pesos. Other laundry services cost for

25-29 pesos, however due to its technological advances, quality appliances and eco-

friendly ingredients used not only to provide quality services but the concern to

contribute in reducing the risks in the environment, the company should be flexible to the

pricing elasticity and overall customer demand.

2. Bundle Pricing

E-Laba does not only cater walk-in customers. Bulk accounts are also catered and

there are certain prices and considerations set for them. They may avail different

packages with certain weight ranges and prices for the packages are fixed.

Place / Distribution Strategies

With the use of the company’s application, one can avail their desired laundry service.

The app is available on Google Play store for android and App store for iPhone. Through

this app, they can choose the services they want to avail. The company also has 3 main

branches in Cebu for those that do not wish to avail pick-up or delivery. The branches are

situated within the cities of Cebu, Mandaue and Lapu-lapu where the entirety of Cebu is

within the scope of the company’s service. The company chooses these cities because

they are the biggest and busiest cities in the whole Cebu. With a high number of

population in these cities, this results to more possible customers coming to the shop.

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With years of experience in this field of business, the owners thought of expanding to

other places. The places will be evaluated and the owners will choose the place with a

high demand of the company’s services.

Promotional Strategies

The company’s prominence in the laundry industry has reached several regions

with the use of internet. This is made possible by the development of technology where

the company can shoulder customers through social media sites like Facebook, Twitter

and Instagram. Through internet ads, social media pages, newspaper and magazine

promotions, commercial billboards and flyers put up by the management, E-laba has

drawn the attention of several individuals and families that seek quality services and

convenience.

(Brochure)

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D. MANAGEMENT PLAN

E-laba laundry and services has a partnership ownership structure in where each

member have equal percentage of ownership in the company. The company has a team-

based organizational structure which consist of full-time employees that are organized

into teams whose members perform varied functions.

Our management team is comprised of people with many years of experience in

managing a laundry business. The company values team performance rather than

individual contributions. E-laba laundry and services is organized into seven functional

management teams: Human Resource Management, Marketing Management, Operations

Management, Material and Procurement Management, Office Management, and

Information and Communications Technology Management.

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• Chief Executive Officer (CEO)

- Formulates comprehensive and detail plan

- Maintains company sales at balanced rate

• Human Resource Manager

- Recruit, conduct interviews and tests, background checks employees and

formulates policies.

- Enhances and improve the skills of employees.

• Marketing Manager

- Develops strategies based on demand of services.

- Ensures selling on target market.

- In-charge of advertising and promotional activities.

• Operations Manager

- Designing and controlling production.

• Financial Manager

- In-charge of fiscal management

• Materials and Procurement Manager

- Manages in purchasing goods and services for the company.

• Office Manager

- Assigned in proper handling and maintenance for the clerical aspects of all the

functional departments.

• Information and Communications Technology Manager

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 - In-charge in all the application of the computer and telecommunications

technology of the business especially in handling our social media

applications.

• Team Leader

- Manages the branch and supervises employees.

- Reports to vice presidents regarding the performance of the branch.

• Laundry Attendant

- Assigned in laundry services.

• Frontline

- Accepts orders from clients and monitors it.

• Cashier

- Assigned in processing orders and fiscal management of the branch.

• Delivery Man

- Delivers laundry services to client’s vicinity.

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E. OPERATING PLAN

Services Offered

E-Laba provides special services you can choose from. This is to ensure that the

company provides a variety of services customers can avail for. E-Laba offers:

1) Laundry and Press Services:

> This service allows the company to professionally handle items and fabrics that

needs special care to be cleaned and pressed properly.

2) Dry-Cleaning Services:

> This allows laundering the customers’ item without the use of water. With the

use of laundry solvents, this service prevents damages from wet cleaning features

especially to special types of sensitive fabrics.

3) Delivery Services:

> This offer is one of the main service the company can provide. With this,

customers won’t have to spend time picking up their laundry and stepping outside their

busy homes. With this, customers can save their precious time conveniently.

4) Pick-up Services:

> This feature enables the company to pick-up laundry from customers, without

them having to step inside the local branch establishment. Through this service,

customers will be able to save time in dropping by their laundry to local branch.

Raw Material Sources and Purchasing Procedures

1) Washing Machine

Brand: LG WM3770HWA

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 An effective and efficient washing machine with some of the quickest and most

versatile cycles, from a brand with a great track record for reliability.

Place of Purchase: SM Appliances

SM Appliance is known to have complete and varied selections of different kinds

of appliances. Quality of appliances is also assured in this store.

Way of Purchase: Delivery

SM Appliance offers delivery services to its consumers for ease and convenience.

2) Dryer

Brand: LG DLEX357OW

LG’s appliances strike a great balance between quality and affordability. This

particular dryer’s wrinkle-removing truesteam function is great for knocking the creases

out of your favorite clothing, but it also has 11 other cycles for deep or gently drying

power.

Place of Purchase: SM Appliances

SM Appliance is known to have complete and varied selections of different kinds

of appliances. Quality of appliances is also assured in this store.

Way of Purchase: Delivery

SM Appliance offers delivery services to its customers for ease and convenience.

3) Dry-Cleaning Machines

Brand: Technolux Eco Green Dry Cleaning Machine (Firbimatic)

It is an environmental-friendly dry cleaning machine that has various functions

that help preserve the clothes’ quality of material.

Place of Purchase: SM Appliances

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 SM Appliance is known to have complete and varied selections of different kinds

of appliances. Quality of appliances is also assured in this store.

Way of Purchase: Delivery

SM Appliance offers delivery services to its customers for ease and convenience.

4) Steamer

Brand: Markes 10 Power Program Garment Steamer

Efficient garment steamer which has overheat protection, aluminum alloy boiler,

etc.

Place of Purchase: SM Appliance

SM Appliance is known to have complete and varied selections of different kind

of appliances. Quality of appliances is also assured in this store.

Way of Purchase: Delivery

SM Appliance offers delivery services to its customers for ease and convenience.

5) Delivery Cars

Brand: Isuzu Elf Closed Van

Diesel-powered van which helps reduce fuel costs. Its big storage is also an

advantage for deliveries and picking up items.

Place of Purchase: Isuzu Motors

Isuzu Motors is a known an top Japanese commercial vehicle and diesel engine

manufacturing company in the country.

Way of Purchase: Pick-Up

The vehicle could be driven immediately after picking up at the company branch

you issued your purchase.

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6) Electronic Devices

6.1 Telephone

Brand: Panasonic KS-TS500MX

A corded landline phone that is wall mountable, has volume control and has basic

ITS.

Place of Purchase: Panasonic Appliance

Panasonic Appliance offers a wide range of electronic devices. Through the

years, their products are marked with good quality.

Way of Purchase: Pick-up

The telephone could be brought easily after purchase since the product is light in

weight.

6.2 Computer

Brand: ASUS Eee Box PC B202

Affordable computer that is a compact-type with Atom N270 as its processer

model.

Place of Purchase: Asianic

Asianic is a known information technology dealer that offers variety of

technology products from cellphones to laptops and computers.

Way of Purchase: Delivery

Delivery would be more convenient since there are various parts of a computer.

6.3 Receipt Machines

Brand: Cordya POS-589OY Portable Thermal Printer

Suitable for all types of commercial retails POS systems and is light in weight. It

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also comes with low power consumption and low operating costs.

Place of Purchase: SM Appliance

SM Appliance is known to have complete and varied selections of different kinds

of appliances. Quality of appliance is also assured in this store.

Way of Purchase: Pick-up

The receipt printers could be brought easily after purchase since the product is

light in weight.

7) Packaging Resources

7.1 Parchment Paper

Brand: Glad

Glad is a known brand for packaging products.

Place of Purchase: SM Grocery

SM Grocery has a wide selection of items.

Way of Purchase: Pick-up

Parchment paper is convenient to bring after purchase since it is light in weight.

Quality Control

Customer Quality Policy, Nondiscrimination Policies, and Misconduct Policy are

ust some of the policies that e-Laba follows and abides. The customers are the single

most important component of the business, so handling customer complaints and

unsatisfied works are properly dealt with for the vital future of the company.

In the work environment, both employees and customers will be treated with

equal rights and no one will be considered above or below the law. Anyone is allowed to

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work for the company no matter who they are. They have the equal opportunity to get the

chance to work for e-Laba. E-Laba abide the nondiscrimination policy.

It’s not all the time that employees follow the rules and regulations that is why

there are certain punishments and ways to handle misconduct. There will be a process if

ever theft, poor performance, or a substance abuse problem will occur, the misconduct

policy will step in.

E-Laba values customer service and quality of work so employees put the best of

their abilities to do their job. The company hires careful and observant employees so that

they can handle their responsibility in the correct way. The company makes sure that the

items of different customers will not be mixed with each other. Follow strict rules in

color coding and the kind of detergent to be used in every item. How the customer wants

it the employees follow. And for the safety of the employees, if any unlikely event to

happen we have first aid kits, fire extinguisher, CCTV cameras and back door emergency

exit in every branch.

Operating Facilities and Equipment Used

1) Washing Machine

This is the main equipment used in the business for washing the laundry.

2) Dryer

This is used to remove the moisture from the laundry after being washed. This

quickens doing the laundry.

3) Pressing Machines

This is an equipment that applies pressure to the clothing to help keep it shape and

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neat.

4) Dry-Cleaning Machines

A machine using chemical solvents other than water in cleaning delicate fabrics that

degrade in water.

5) Steamers

An equipment used for removing wrinkles quickl with the use of high temperature

steam.

6) Delivery Car

This will be used for transportation in picking up and delivering the laundry to

customers.

7) Electronic Devices

Telephone: It’s used in communicating with customers, may it be in inquiries/bookings.

Computer: It’s used in monitoring the app/website, receiving orders online and checking

reviews. It also store files about the company and its business operations.

Receipt Machines: It produces printed receipts for the computers’ laundry.

8) Packaging Resources

Parchment Paper: This is used in wrapping the finished laundry of the customers.

Location of Facilites and Store Branches

The owners want to open their branches in some cities of Cebu namely, Cebu City,

Mandaue City, and Lapu-Lapu City. The owners want to open their branches here for

these cities to have the most population in Cebu having – 870,000 in Cebu City; 330,000

in Mandaue City and; 350,000 in Lapu-Lapu City. With this, they can have more

customers coming in the shop and avail their promos.

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Business Hours and Days of Operations

The owners decided to open their shop at 10:00 AM and close at 8:00 PM, 7 days a

week. Nowadays, laundry businesses are in demand because some people do not have

enough time to do so. In this way, we can cater more customers for students and workers

usuall go out at 5pm so they have time to drop-off their laundry or call us to pick up their

laundry. While the online application of e-Laba will be 24-hours active but employees

can only entertain them when the store opens.

Application Sample

The owners developed an app and the customer can download it from google play

store or app store. The app is only applicable to people who wants the pick-up and

delivery services within the vicinity. When you open the app, you will be greeted with

the company’s logo and the company’s tagline. After, you will be assigned to fill up your

personal information and agree to the terms and condition made by the company. The

company also ensures you that your information will remain confidential. Subsequently,

you will check all the services you want to do with your dirty clothes and press the

submit button after. Next, you will finalize all the information you have given and see if

all information is correct. And lastly, you’re laundry is ready for pick-up. “Thank you for

trusting E-Laba Laundry and Services”

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(Sample)

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F. FINANCIAL PLAN

Based on our estimates, E-Laba Laundry & Services is expected to be in a decent

financial state in its starting years. The business’ start-up capital will be initially financed

by a P1,500,000.00 five-year term loan from a bank and with a P2,000,000 total capital

investment from all of its investors.

The bank loan made is expected to be paid through the business’ cash flow from

all of its operations. Improvements to be made in the company’s operations and

productions will also be financed by its cash flow. After an estimate of about 6 years, the

business will be able to make further expansions as well as additional branches.

The projected financial figures presented are in accord with reasonable estimates

and notions.

12-month Projected Profit and Loss Statement

E-Laba Laundry and Services

Profit and Loss Statement for the first 12 months
Income
Sales P455,000
Total Sales P455,000
Costs of Revenues
Equipments P200,000
Direct Labor P15,000
Shipping Costs P5,000
Total Costs of Revenues P220,000
Gross Profit P235,000
Expenses
Rent expenses P40,000
Salaries P10,000
Utilities P5,000
Marketing Expenses P3,000
Supplies P2,000
Tax Expenses P10,000
Miscellaneous P1,500

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 Total Expenses P71,500
Net Profit P163,500

The table above shows the projected profit and loss statement of the company for its first
12 months.

Break-even Analysis

We are to assume that the business’ balance sheet payment is P1,500,000 and its

overhead costs is P71,500. If total sales of P455,000 less total costs of revenues of

P220,000, gross profit is P235,000. Gross margin, calculated by gross profit over total

sales, would be 51.65%. With the breakeven point formula for service business of

overhead costs plus balance sheet payment over gross margin, we need to make total

sales of about 3,050,000 or P253,550 monthly for us to reach the breakeven point.

Projected Cash Flow

A common reason businesses go bankrupt is because of cash flow deficiencies. This is

why monitoring the business’ cash flow is very crucial so that we are sure that we have

sufficient cash on hand to meet our payment obligations and for unexpected

circumstances that we may need cash. This projection implies that our business has a

positive cash flow and sufficient cash reserves.

The focus is to make sure that the company has enough cash on reserve for

contingencies. An additional credit line in a bank is also included for the company’s use

during slow sales periods. This is a good way to control the cash flow risk.

Excess cash that the company acquires should not also remain dormant, especially

during high interest rates periods. The company management will consider investing

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excess funds in bank time deposits, government securities or other secured trading

securities.

The table below shows the cash flow of the company for the first year

First year
Cash from operations
Cash sales P400,000
Cash receivables P40,000
Total cash from operations P440,000

Additional Cash Received P5,000

Subtotal Cash received P445,000

Expenditure from
operations
Cash Spending P210,000
Bill payments P71,500
Subtotal spent on P281,500
operations

Additional cash spent P10,000

Subtotal cash spent P291,500

Net cash flow P163,500

Cash Balance P153,500

The chart below shows the projected cash flow of the company for the first year:

Cash Flow
200000
100000
0 Cash
1st 2nd 3rd 4th
quarter quarter quarter quarter

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G. APPENDICES

I. Hiring Poster/Advertisements

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