Feasibility Study Laundry Services

2014
FSUU-Accontancy Program
Aparece,Marjorielou B.
Cadorna,Vina O.
Casinillo,Kissey Jen T.
Gumban,Christine Grace A.
Lorete,John Paul Niňo
R.Mosende,Nerissa G.
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All right reserved. Merely for reference purposes, no part of this publication may be reproduced or
copied and paste to other document same in nature .Feasibility Study Plagiarism is prohibited.
1 All Rights Reserved.| FSUU-Accontancy Program
Father Saturnino Urios University
Accountancy Program
Feasibility Study
“Lovebada Bango Laundry Shop”
Prepared by:
Nerissa G. Mosende
Kissey Jen T. Casinillo
Christine Grace A. Gumban
John Paul Niňo R. Lorete
Marjorielou B. Aparece
Vina O. Cadorna
Adviser:
Mr. Daniel Nemeses C. Espina, CPA
FSUU-Accontancy Program | All Rights Reserved. 2

TABLE OF CONTENTS
I. Introduction
a) Rationale 1
b) Business Description 1
c) Business Name 2
d) Business Location 2
e) Service Description 2
II. Marketing Aspect
a) Area Covered 4
b) Target Market 5
c) Competitors 7
d) Market Need 8
e) Demand Analysis 9
f) Supply Analysis 9
g) Laundry Services Offered 10
h) Prices 11
i) Income Projection 13
j) Advertising and Promotion 14
k) SWOT Analysis 15
III. Technical Aspect
a) Commercial Space for rent 17
b) Space Layout 18
c) Operating Procedure 20
d) Filtration Process 23
e) Operational Equipments 27
f) Laundry Cleaning Products 32
g) Supplies 35
h) Costing 39
IV. Management Aspect
a) Form of Ownership 40
b) Business Culture 43
c) Manpower Requirements 44
d) Organizational Structure 45
e) Job Description and Duties 45
f) Segregation of Duties 46
g) Management Style 47
h) Motivating & Rewarding Employees 49

V. Financial Aspect
a) Considerations 50
b) Pre-Operating Expenses 51
c) Projected Balance Sheet 52
d) Projected Income Statement 53
e) Projected Statement of Cash Flows 55
f) Statements in Changes in Equity 56
g) Return on Investment 56
h) Payback Period 56
VI. Socio Economic Aspect
a) Contribution to the Economy 57
b) Contribution to the Government 57
c) Contribution to the Society 57
d) Environmental Impact 58
VII. Conclusion and Recommendation 59

CHAPTER 1
INTRODUCTION
Rationale
The fast change of trend from individualized laundry to

commercial laundry services coincides with rapid technological
change as well as the fast, changing and modern lifestyle of
Filipinos.
Laundry business is an easy and convenient business to

start. It is not capital or management intensive. You can start
this business right from home and grow from there. It is a very
lucrative business, as not everyone that puts on clothes has the
time to do the laundry. Based on the survey conducted the reasons
why they go to the laundry shops instead of doing it to their
own are because of tight schedule especially those students who
have a lot of extracurricular activities in school, others says
they don’t like washing their clothes because it is just a waste
of time (laziness), and some boarding houses didn’t allowed
washing clothes in consideration to the consumption of water.
This is the reason why there is chance of making a lot of

money because this people will definitely seek your services.
Business Description
Butuan City as a highly urbanized city in the Philippines

emerged too many businesses nowadays. It can be seen that
numerous schools and establishment are spotted around the area
urging to look for convenience due to their busy time. And this
gives a positive outlook for some businessmen who were just
started in the industry to put their investment in certain
businesses particularly the Laundry business in which the field
is not that much penetrated.

Business Name
The right name can make your company the talk of the town
especially when it is unique and probably would catch their
attention. Therefore, the proposed name of our business is “Love
Vada Bango Laundry Shop” originated from the word “labada bango
with love” that means we will wash clothes with love, passion
and fragrance.
Fig. 1 Business Logo
Business Location
The proposed business location is located at Lopez Jaena

Extension, Barangay Tandang Sora, Butuan City.
This location composes of schools like FSUU, SJIT and BCC;

establishments; apartments and boarding houses.
Service Description
The Business concept of LOVEBADA BANGO is typically

homogeneous to those other existing Laundry shops in the city.
But certain things will make it stand and that includes its
quality services, professionalism of its personnel towards its
customers.

Quality Services - The quality services really matters in
LOVEBADA BANGO Laundry. It is planned to provide services such
as washing, pressing, ironing and folding customer’s clothes and
garments. It will be using quality equipments and machineries
that could greatly help and make the business exist. It shall
offer affordable cleaning too, making sure that the output will
reach its quality standard
Professionalism towards customers - Personnel of the shop will

surely build professional customer relationship. Unlike the
other personnel/workers that may just think business is easy as
doing what is assigned to them and this normally getting
payments from customers after doing/giving what the latter
wants. More than that, it would be better to set your customers
as part of the top priority. In addition, the team will take
care of each customer item with great respect since personal
things are engaged in the business.

Chapter II
MARKETING ASPECT
The marketing aspect will serve as the basis of the

financial section through the projected demand. This includes
the area covered, target market, proposed location, competitors,
the demand and supply, demand and supply gap analysis, marketing
program and SWOT analysis.
Area Covered
This is to identify a point or an area of study. Geographic

target is in Butuan City primarily located at this Barangays
Sikatuna, Humabon and Tandang Sora as a primary market. This is
3.5% of the overall barangays total of 86 that composes the
city. This location composes of schools like FSUU, SJIT and BCC;
establishments; apartments and boarding houses. Out from these
components we will determine the population of those living in
apartments and boarding houses where our target market is
situated.
Fig. 2 Area covered Brgy. Humabon
Fig. 3 Area covered Brgy. Sikatuna

Fig. 4 Area covered Brgy. Tandang Sora
No. Apartments Total

and Boarding Population
Area Covered
houses (actual
data)
Brgy. Humabon 32 523
Brgy.
23
Sikatuna 670
Brgy. Tandang
72
Sora 1,706
Total 127 2,899
Fig. 5 Actual Population
Notes:
1. The number of apartments and boarding houses were gathered

from the list of registered business establishments as of
June 2014 from City Hall Butuan City.
2. The Population is based from actual data which is gathered
by the researchers while doing the survey and interview
with the Caretakers/Owners.
Target Market
Our target market will determine from those living in

apartments and boarding houses within the mentioned Barangays
such as:

1. Young professionals
2. Students
3. Family
This group of market will be described their need according to

their lifestyle considering a number of potential influences on
buying behavior including the attitudes, expectations and
activities of consumers.
In order to know the population demand for the proposed

laundry business for that area in Lopez Jaena Extension, we used
the “slovins” formula in determining the number of respondents
for the survey questionnaires. We use the actual number of
residents in apartments and boarding houses total 2,899(fig.5)
and the margin of error would be 10%. Margin of error denotes
the allowed probability of committing an error in selecting a
small representative of the population.
N = n / (1 + ne^2) Therefore:
N = Number of samples N = 2899

n = Total population (1+2899*.10*.10)
e = Margin of error
N = 96.67 round of to 97
Barangay Number of population Distribution Ratio total Respondents Distribution of respondents
brgy. Humabon 523 18.0% 97 17

Brgy. Sikatuna 670 23.1% 97 22
Brgy. Tandang Sora 1706 58.8% 97 57
2899 100.0% 97
Fig. 6 Questionnaire Distributions
Notes:
1. The number of population is based on Actual.

2. The ratio for distribution of respondents is based on the
Specific population in a barangay over total target
population and is multiplied to number of respondents.

Respondents Classifications
1%
21%
students
78% working
other
Fig. 7 Respondents Classification
Based on the survey, the graph shows that 78% are students,
21 % from working and others 1% coming from family section.
Competitors
We have gathered data of the list of the Laundry Shops

registered as of June 2014 in Butuan City. Below are the lists:
1. ALL SEASON STEAM LAUNDRY – R. CALO ST. 5, Diego Silang

2. LIM’S HOUSE OF LINEN – 12, Bancasi
3. WASH ‘N DRI LAUNDRY SHOP – Dagohoy
4. KITZ N’ CHARLS LAUNDRY – MONTILLA BLVD. DOOR 1-CINDERELLA
ARCADE, Ong Yiu
5. VIA’S LAUNDRY SHOP – 084 MONTILLA BLVD., New Society
Village
6. LAUNDRY KO - #162 J.C. AQUINO AVE., Bayanihan
7. ECS LAUNDRY SHOPPE – 2, Libertad
8. KRISSIE’S SO CLEAN, SO BRIGHT CLOTH CARE – J.C. AQUINO
AVE., Lapu Lapu
9. R & D BUBBLE WASH AND LAUNDRY – PRINCESS HOME ARCADE,
Villa Kananga
10. NRL LAUNDRY TIM – 327 CAPITOL DRIVE, Dagohoy
11. KWIK KLEEN LAUNDRY SHOP – ZONE – 5 R CALO ST, Diego Silang

Fig. 8 Competitors location
Notes:
 Among those shops listed above, highlighted is the nearest

competitor which is 500 meters and 568.48 meters away from
the area where the target market resides.
 The following competitors are not within our covered area
from the mentioned barangays.
Market Need
The survey says that the needs of the market are of the
following factors enumerated below. Therefore this would be our
basis to better achieve customer satisfaction and they will be
able to continue availing the service.
 Quality of cleanliness
 Price
 Timeliness and customer service

MARKET NEED
12%
Quality of cleanliness
29%
59% Price
Timeliness
Fig. 9. Market Need
Percentage of those Total Population who Estimated # of kls projected

Total Actual Population
Area covered who are willing are willing to avail minimum per week demand
(a)
(b) (axb) (d) (in kilo)
Brgy. Humabon 523 82% 429 3 1287

Brgy. Sikatuna 670 82% 549 3 1648
Brgy. Tandang Sora 1706 82% 1399 3 4197
Total 2899 2377 7132
Fig. 10. Demand Analysis
Estimated
Estimated No. of loads Load Loading
Working Capacity Per Working
Cycle Time allowed per Capacity Capacity Per
Services Hours per Load days
per load day per day week
day (b)X 4 (d)
(hour) (a) (axb=c) (cxd=e)Kilo
machines
Machine Wash 8 hours 2 hours 4 30 kg 120 kg 6 days 720
Hand Wash 3 hours 1 5 kg 5 kg 6 days 30
Total No. of
750
Loads
Fig. 11. Supply Analysis
Demand Supply Demand and Supply Gap
7132 750 6382
Fig.12. Demand and Supply Gap Analysis

Note:
1. Demand Analysis (Fig.10), projected demand is the estimated

kilo of clothes per week that needs to be catered by our
services.
2. Supply analysis (Fig.11), Loading Capacity per week is the
normal operating capacity that the Laundry shop can cater.
3. As seen in Fig.12, there will be a gap of 6382 (7132-750)
kilos that will never be catered. Hence which is a good
thing, since the demand for our services is higher than
what we can give. Therefore the threats of competitors to
rise up in the same area (sharing of market) won’t
materially affect our sales projection.
Laundry Services Offered
The following are the list of the services to be offered based

on the needs of the market:
1. Wash-Dry-Press
2. Wash-Dry-Fold
3. Hand washing
Services to Avail
7%
19%
Wash-dry-press
wash-dry-fold
74% Handwashing
Fig. 13 Services to avail

How often do you do laundry?
Thrice a week
Twice a week 3%
19%
Once a week
78%
Fig. 14
Prices
Wash Dry Fold Wash Dry Press Handwashing Special Items

(Per Kilo) (Per Kilo) (Per kilo) (Per kilo)
P 23.00 P 65.00 Wash-Dry-fold P 60.00 Jeans/Maong - P 30
Bed Sheet/Towel - P 45
Minimum of 3 kg Without hanger P 65 Wash-Dry-Press P 65.00 Comforter - P 65
Fig. 15 Prices
How much the market is willing to spend for laundry service?
Wash-Dry-Fold
17%
P23/kg
P25/kg
83%
Fig. 16 Wash-Dry-Fold

Notes:
 On the survey provided, 83% will go for cost of

23.00/min.3kls and only 17% will go for cost of
25.00/min.3kls.
Fig. 17 Wash-Dry-Press
Note
 On the survey provided, 72% will go for cost of
65.00/min.3kls and only 28% for the 70.00/min.3kls.
This is in consideration as a student price.
Bring to Laundry Shop
Yes
38%
No
62%

Fig. 18
Fig. 19
Based on this survey 38% of the market says yes that they
bring their clothes to the laundry shop, while the
remaining 62% says no. Therefore, out of the 38% that says
yes, 8% of them only bring 2 kilos and below, 21% brings 3
kilos, 34% brings 4 kilos and the remaining 37% brings 5
kilos and above.
Income Projection
SERVICE REVENUE PROJECTION
Estimated Kg. of Total Sales No. of Weeks in Total Sales in

Rate per Kg.
Laundry per Week per Week a Year Year 1
Wash-Dry-Fold 300 ₱ .00 6,900.00 52 ₱ 58,800.00
Wash-Dry-Press (with hanger) 72 70 5,040.00 52 262,080.00
Wash-Dry-Press (w/o hanger) 73 65 4,745.00 52 246,740.00
Hand Washing (Wash-Dry-Fold) 25 60 1,500.00 52 78,000.00
Hand Washing (Wash-Dry-Press) 25 65 1,625.00 52 84,500.00
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 ₱ ,64 , .

Advertising and Promotion
This refers to raising customer awareness of the services and

creating services loyalty.
1. Leaflets and flyers – will be distributed upon the opening

of the shop so that the market will be able to be informed
that it is already available.
The leaflets and flyers will be personally done by the

owner of the shop which has a budgeted amount of P 3,000.00
Leaflets will include the following information:

- Services offered
- Price list
- Company address and contact number
- Business hours
- Business slogan
2. Tarpaulin – to be placed in front of the shop. The cost
would be P 2,500.00. It will include the following
information:
- Business name, address and contact number
- Business logo
- Business hours
- Business slogan
3. Membership offering that will give customer discounts - to
maintain the loyalty of the customer we will offer
membership and there will be corresponding points to reach
so they can avail the discount.
To avail the discount Points
Laundry Requirement 30 kls/mo. 40 kls/mo. 50kls/mo
Discount 3% 4% 5%
4. Bring a friend - a gift item will be given.

5. Pick Up and drop service – to increase more of the
willingness of the customer to avail of the laundry
service, we will offer pick up and drop service as it shows
also in the survey that 45% would like to have this kind of
extra service for the convenience of the customer.

Fig. 20
SWOT ANALYSIS
I. Strengths
 Using machines with quality and brand

 High profitability because it is more accessible to
market
 Quality output and faster service
 The location is on the main city nearest to the
boarding houses, apartments and schools
 Location is just a walking distance
 Prices are relative, competitive and accords to what
the customers want
 Does not need a large amount of capital
 Promotion strategies – social networking sites is very
accessible as well
 Accessibility of the location
II. Weaknesses
 Lack of experience as this will be the first time to

conquer the market in the said location

 As the machines with brand and quality is expensive,
maintenance will be quite expensive as well
III. Opportunities
 Continuous development of the city with having new

establishments for residential (apartments and
boarding houses)
 Students, working professionals having lack of time in
doing their own laundry
 Only two competitors nearest which is 500 meters and
568.48 meters away from location
IV. Threats
 Price variations
 Future competition

Chapter III
TECHNICAL ASPECT
This chapter provides information that includes the

structures and the floor plan, operating procedures/processes
that are essential to the overall operation of the business,
proposed equipment, machineries and supplies together with their
descriptions and specifications.
Commercial Space for Rent

The space will undergo some sort of renovation just to
maximize the space intended for the business since the space is
not that large enough to settle all the equipments or other
furniture. The rent will be 2 months deposit and one month
advance total 30,000.00 on first month and cost 10,000.00 pesos
on a monthly basis onward provided by a lease contract for
minimum of 1 year and renewable. Below shows the innovation cost
for the space rented.
Estimated
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 Furnitures 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 12,000.00
and drainage system (septic tank)
TOTAL 18,500.00
Fig. 21

Space Lay out
Fig. 22
The floor plan was designed intended to facilitate the work

flow and show how the space looks like.

Image of the Actual Space
Fig. 23

Operating Procedure
Fig 24. Operating Procedure
The above chart shows the laundry process. Each 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.
(Note: one of the machine are automatic dry)
6. Packing - Once pressed, the clothes are properly hanged and
covered in the plastic wrap and then tagged so that it can
be easily identified.
Receiving and Tagging
1. Note the time that the items received.

2. Check the item against the laundry list.
- Make sure the item received matched the item listed on
the laundry list.
3. Tag each laundry items.
4. Check for damage and lost and found items.
5. Fill out in the separate logbook for lost and found items.
- Record the time, date, name, description of the item
6. Place the item in a plastic bag and surrender it to the
supervisor.
7. Record the laundry items according to company procedures.
- Record the date, name of customer, time received, name of
the attendant, signature and remarks.
8. Sort each item according to weight and color (heavy, white,
colored and damaged)
- Put damaged item to separate basket
9. Prioritize express items.
Wash Dry Fold per 10 kilo wash load
 Thin Garments including clothing, bed sheets, curtains, and

towels
1. 30 minutes washing time

2. 4 scoops of detergent soap and 1 cup of fabric
softener
3. 25 to 30 minutes drying time
4. Quality checking of clothes
5. Approximately 30 mins for folding
 Thick Garments such as blankets and comforters
1. 30 minutes washing time

2. 4 scoops of detergent soap and 1 cup of fabric
softener
3. 30 minutes drying time
4. Quality checking of clothes
5. Approximately 1 hour for folding

 Pressing Service
1. Inspection of clothes for pressing if the fabric

allows pressing and specific temperature requirements
2. Segregation of clothes according to size and
temperature requirement for pressing.
3. Pressing of clothes requiring high temperature and
folding.
4. Pressing of clothes requiring medium to low heat
temperature and folding.
5. Segregation of clothes according to tag,
identifications and tagging for pick up
 Hand Washing Process
1. Clothes are inspected for washing requirement symbol.

2. Clothes are initially soaked and rinse in lukewarm
water to loosen up the fabric for easy cleaning.
3. Clothes are soaked in lukewarm water with detergent
for about 8 minutes
4. Clothes are hand washed with bar soap and bleach (if
needed)
5. Clothes are soaked and rinse in cold water for rinsing
twice
6. On the third rinsing procedure, rinsing procedure,
clothes would be soaked and rinse in cold water with
fabric conditioner
7. Clothes are to be tumble dried in minimum time
according to fabric requirement
8. Clothes are segregated and folded according to tag
identification
9. Clothes are bagged for pick up
Removing Stain
1. Prepare the necessary materials.

(gloves,cotton cloth, stain remover, laundry basket)
2. Lay the cotton cloth on your work area - cotton cloth
absorbs the stain while it is being removed.
3. Turn the garments to its wrong side.
4. Lay the stained part of the garment on the cotton cloth.

5. Wear protective equipment - Gloves protect your hands from
harsh effect of chemicals.
6. Apply stain remover and gently scrub the area. Apply more
stain remover as necessary for stubborn stains; soak the
garments for 5-15 mins.
7. Check if the stain has been removed.
8. Place the garment in a basket for laundry.
Notes:
1. First come first serve basis for laundry service.
2. If in case customer will request for quick delivery
additional charge of P 5.00.
Filtration Process – Environmental Impact
Step 1:
The higher hole was inserted on

the side of the washing waste
pipe, and the lower hole is for
the pipe to the canal.

Step 2:
Vermin proof lid on the grey

water filter box. It comes with
a secure lid, so that will also
deter vermin.
Step 3:
Larger filter stones layer the

base of the black box.

Step 4:
Smaller filter stones were laid

on top of the larger stone.
Step 5:
A couple of layers of shade

cloth to hold the sand.

Step 6:
A layer of clean sand.
Step 7:
Test run

Operational Equipments
Electrolux EWT904 - 9kg Top Supplier:

Load Washing Machine with
T-Drive Washing Technology Electrolux
Price: 22,395.00 located at
the
Quantity: 2 Robinsons
Life Expectancy: 5 years Appliances
Body Type: Top-load washer
Total Capacity Washing
Capacity: 9kg
Number of Wash Cycles: 11
Spin Speed: 850 rpm
Dimensions: 67 x 107 x 68
cm
Drum and Interior Finish:
Stainless steel
Eco-friendly
Certification(s) 3
ticks(WELS)
Eco-friendly Feature(s):
Load Selector - Low -
Middle - High, Deep / Eco
Rinse
Material(s): Zinc-coated
Body
Screen Technology LED
light Indicator and time
display, Electronic Control
Wash Cycle Modes: Regular
Wash, Fast Wash, Colour,
Delicates, Heavy Soil,
Woollens
Control Panel Programmes
in single knob control
Timers: Soak and delay end
function
Dispensers: Detergent,
Bleach dispenser drawer
Center Fabric Softener
Holder

Health Features: T-DRIVE
washing technology: 35%
cleaner washing
performance: Anti-residue
system
Water Efficiency: 3
ticks(WELS) Water
consumption: 8.80 L /kg
Regular wash
Noise Reduction: Stabilised
Belt-driven System
Indicators: LED Remaining
Time Display
Languages Supported
(OSD/Menu) English
Quick Menu Options Soaking
Function- 45,30,15 min
Rinse Function - Extra,
Deep,Eco,Fast
Power Supply: 220-240 V/50
Hz
Warranty: 2 years warranty
WM-2011/007953
7kg Sensor Dry Dryer with

Iron Aid - EDS7051
Price: 18,995.00
Quantity: 2
Life Expectancy: 5 years
Body Type: Front-load Dryer
Total Capacity Drying
Capacity: 7kg
Number of Wash Cycles: 6
Spin Speed: No
Stackable: Yes
Dimensions: 600 x 845 x 620
Drum and Interior Finish:
Stainless Steel
Energy Consumption: Drying
Per Cycle: 4.46 kWh
Eco-friendly

Certification(s):ENERGY
EFFICIENCY (MELS) - 1 ticks
Eco-friendly Feature(s):
Auto Sensing, Iron-aid
function, Reverse Tumbling
Technology
Material(s): Galvanised
Zinc-coated Body
Screen Technology: LCD
light Indicator and
Electronic Control
Wash Cycle Modes:
Normal/Delicate/Airing/90mi
n/60min/30min
Height with Lid
Open:Electronic Control
Panel
Timers: 3/6/9 hours
Safety Features :
Safety Cut-off, Door lock
Indicators: Drying /
Airing / End
Languages Supported
(OSD/Menu): English
Power Supply: 220-240 V/50
Hz
Packaging Weight: 32kg
Included Accessories:
Venting kit
Warranty: 2 years warranty

4 CYLINDER 5 SPEED SUZUKI VAN TYPE WITH
AIRCON - Used
Php 95,000.00
Life Expectancy: 5 years
Water Tank
Storage in case there will be
water disruption.
Php 10,000.00
2in1,blower and suction- 1/2hp,

200watts,20" x 20"
Exhaust Fan
Php 6,000.00
1 pc. Of 120kls. Weighing Scale
Php 3,500.00

1 pc. Of Calculator
Php 200.00
Water Hose 50ft
Php 1,500.00
2 pcs. Of Steam Flat Iron
Php 1,095.00 each
1 set of Dataworx Budget

Computer Package (Black)
Php 11,879.50

1 pc. of Plastic Container (for
filtration process)
Php 739.75
1 sq.meter of Black Shade Cloth
Php 100.00
Laundry Cleaning Products
We choose to have a one supplier for our supplies to be use

for the laundry process.
Name of the Supplier PowerClean Chemicals

Branch KM 5 Buhangin Highway Corner
Pag-asa St. Davao City
Access Order Online
Website http://www.powerclean.com.ph/
Alternative Supplier Villa Fidelina
Address Ochoa Ave.cor.Lauraville
Subd.,Brgy.Limaha, Butuan City
Access Direct Buying

Supreme Power Detergent
Description:
High Density Power Detergent
with supreme performance, 100%
biodegradable active, anti-
bacterial and optical
brightener, no odor soaking,
and no chalk. Ideal for
Handwash and machine wash.
12 Sacks – 25 kg each
Life Expectancy : 1 year
Price: P 19,500.00 @ 1,625 per
sack
Fabric Softener
Description:
A concentrated liquid fabric
softener that soften and leaves
a fresh scent on fabrics,
soluble in cold and hot water.
With various scents suited to
different personalities.
40 Gallons
Price : P 7,600.00 @ 190 per
gallon
Liquid Bleach
Description:
Mild, safe chlorine bleach for
all purpose cleaning and
disinfection. Contains sodium
hypochlorite and releases 5-7 %
available chlorine that will
react with your fabric stain.
Effective at low temperature,
fast action and removes

stubborn stain.
40 Gallons
Price : P 3,280.00 @ 82 per
gallon
Paint, Oil and Grease Remover
Description:
Is a fast acting liquid spot
cleaner especially formulated
to remove paint, oil and grease
on fabric and other surfaces
without affecting color and
quality. This can also remove
unwanted bubble gum on hard
surfaces.
10 gallons
Price : P 5,000.00 @ 500 per
gallon
Fabric Freshener
Description:
Is a water based scent
especially formulated to
eliminate undesirable odors and
enhance the freshness of newly
washed clothes. It comes in
pleasant smelling dawny,
comfort fashion and lavender
scent
40 Gallons
Price : P 10,000.00 @ 250 per
gallon

Liquid Detergent
Description:
A concentrated liquid solution
which has mild surfactant
system effective for color fast
Supplies
2 pairs of Rubber Gloves
Php 199.00 @ 99.50 each
10 pcs. Of Laundry Basket
Life Expectancy:1 year
Php 2,000.00 @ 200 each
3 pcs. Of Dipper
Php 90.00 @ 30.00 each

144 pcs x 10. Plastic Hangers
Life Expectancy: 1 yr
Php 4,000.00 @ 400.00 for 144
Face Mask Ear Loop

(50 pcs/box)
Disposable item
Php 100.00
Big Plastic Basin - 5
Life Expectancy: 1 yr
Php 2,250.00 @ 450.00 each
50 rolls of Tagging Paper

Roll
Life Expectancy: 1 year
Php 9,000.00 @ 180.00 each

Ball Pens
Php 60.00 @ 5.00 each
40 pcs. Of Scotch Tape
Php 500.00 @12.50each
Record Book- 300 Pages
Php 100.00
10 pcs. For 500 sheets of

Order Slip
Php 1,687.50 @337.50 each

10 pcs. For 500 sheets of
Delivery Slip
Php 2,600.00
Plastics Units Sando Units

Bags
16x24 200 pcs. 310.00 Large 100 pcs. 140.00
20x30 100 pcs. 165.00 Extra 100 pcs. 185.00
Large
20x40 100 pcs. 285.00 Jumbo 100 pcs. 330.00
24x36 100 pcs. 390.00
24x60 100 pcs. 620.00
1 year 1,770*2 3,540.00 655*2 1,310.00

Cost of Services
COSTING PER 10 kg Process
FOR WASHING MACHINE PROCESS ( WDF 8kg,WDP 2kg)*a TOTAL COST Wash-dry-fold Wash-dry-press
Direct Material 8kg 2kg
Detergent (250grams)*b Php 16.25 Php 13.00 Php 3.25
Fabric Softener (1 cup)*c Php 11.88 Php 9.50 Php 2.38
Fabric Freshener (1 cup)*d Php 15.63 Php 12.50 Php 3.13
Liquid Bleach( 1 cup)*e Php 5.13 Php 4.10 Php 1.03
Water (522L)*g Php 4.86 Php 2.54 Php 2.03 Php 0.51
Total Direct Material Cost Php 48.88 Php 39.10 Php 9.78
DM Cost per Unit*f Php 4.89 Php 4.89
Direct Labor
Wash-dry-fold DL allocation *h Php 76.57 Php 76.57
Wash-dry-press DL allocation*h Php 89.33 Php 89.33
Total Direct Labor Cost Php 165.90 Php 76.57 Php 89.33
DL Cost per Unit*i Php 9.57 Php 11.17
Overhead-Electricity Consumption Rate

Machine Washing(30min)
Machine 1 (.600kwh)*j Php 7.9734 Php 2.39 Php 1.91 Php 0.48
Machine 2 (.600kwh)*j Php 7.9734 Php 2.39 Php 1.91 Php 0.48
Tumble Dryer(30 min)
Dryer1 (4.46kwh)*k Php 7.9734 Php 17.78 Php 14.22 Php 3.56
Dryer2 (4.46kwh)*k Php 7.9734 Php 17.78 Php 14.22 Php 3.56
Pressing (15 min)
Flat Iron (1.258kwh)*l Php 7.9734 Php 2.51 Php 2.51
Total Overhead Cost Php 40.35 Php 32.28 Php 10.58
Overhead Cost per unit Php 4.03 Php 1.32
Total Cost of Process Php 255.12 Php 147.95 Php 109.68

Total Cost per Unit Php 18.49 Php 54.84
COSTING
HANDWASHING Total Cost
Direct Material
Detergent (125grams)*m 8.13
Fabric Softener (1/2cup)*n 5.94
Fabric Freshener (1/2 cup)*o 7.81
Liquid Bleach( 1/2cup)*p 2.56
Water (391.5L)*q 4.86 1.90
Total Direct Material 26.34
DM Cost per Unit*r 5.27
Direct Labor
Handwash-dry-fold *s 252.24
total Direct Labor 252.24
Direct Labor unit cost 50.45
Overhead
Tumble Dryer(15 min)
Dryer1 (4.46kwh)*t 7.9734 8.89
Total Overhead 8.89
Cost per unit 1.78
Total Handwashing Cost 287.47

Total Cost per unit 57.49

CHAPTER IV
MANAGEMENT ASPECT
This chapter provides information about the management aspect

of the business. Basically, it shows the form of ownership which
the business have. This includes how business will be managed,
the control and supervision matters and even the start-up cost
of the business. It will also provide you with information
about the basic requirements and procedures in registering the
business and the government agencies that the business is
related to.
The management aspect will determine the successful
realization of the business. That’s why the study of the
officers, key personnel and manpower requirements will be very
important matter in this chapter. Business culture which
includes the operating schedule and the day to day monitoring
will also be part of this chapter.
Form of Ownership
I. The business will be sole proprietorship.

- Manage
- Control
- Supervise
- Start Up cost
A sole proprietorship is chosen since it is one of

the least expensive business structures to begin.
Only one person owns a sole proprietorship business,
the legal requirements involve simply registering a
business name and obtaining any relevant licenses or
permits that relate to the specific type of
business.
Many sole proprietorship businesses have very low

start-up costs as compared with other types of
business structures. The start-up investment
typically includes the basic costs for equipment,
marketing and office utilities. However, the amount
of the start-up costs may vary, depending on the
specific type of business.

II. Registration
Essentially, a sole proprietor business legally

comes into existence when the business owner
registers the business name and obtains any relevant
business licenses.
Government agencies for registration
 Department of Trade and Industry

 Local Government Units where your business is
located:
a. Barangay
b. Mayor’s Office
 Bureau of Internal Revenue
 Legally Required Registration of Employee Benefits
Employers are legally required to provide certain
benefits for employees. Employee benefits play an
important role in the lives of employees as well
as their families. For that reason, the benefits
you offer can be a deciding factor for a
potential employee’s decision to work at your
business.
Employee’s registration to the following:
a. SSS
b. PhilHealth
c. Pag-ibig – HDMF
Basic requirements and procedure in registering a Sole

Proprietor Business
1. Register a business name at DTI

1) Come up with three business names
2) Search in the DTI’s website if there is an
existing name similar to yours
3) If your business name is available, fill up
business name (BN) Application Form
4) Submit your completed BN application form to
DTI’s offices/branch

5) Wait for your DTI Certificate of
Registration
2. Registration with Barangay
1) Go to the barangay where your business is
located to secure and fill-up application
form
2) Submit your completed application form
together with the following:
 Certificate of Business Registration
from DTI
 Two valid IDs
 Proof of Address such as Contract of
Lease
3) Claim Barangay Certificate of Business
Registration
3. Register your business in the Mayor’s Office
1) Go to the municipal office where your
business is located to secure and fill-up
application form
2) Submit your completed application form
together with the following
from DTI
 Barangay Clearance Certificate
 Two valid ID
Lease
4. Register in the Bureau of Internal Revenue (BIR)
1) Go to Regional District Office where your
business is located
2) Fill-up the BIR Form 1901- Application for
Registration (for Sole Proprietor)
3) Submit completed registration form together
with the following
from DTI
 Barangay Clearance Certificate
 Mayor’s Business Permit
Lease

 Valid ID
4) Pay the registration form (BIR form 0605)
5) Register your book of accounts and
receipts/invoices
6) Claim your Certificate of Registration (BIR
Form 2303)
Amount of
Business Permit and Licenses
Registration
Registration with DTI 215.00
Registration with Barangay 100.00
Business Permit in Mayor's Office 5,027.00
Registration in BIR 500.00
Total 5,842.00
Business Culture
I. Operating hours from 9:00 am to 6:00 pm – Mondays to

Saturdays
Break time: 12:00 to 1:00 PM
II. Day to day monitoring
The Inspector will monitor the employees’ attitude and

performances, the laundry process, the consistency and on-
going coaching and giving instructions to them.
- Monitoring of sales
- Inventory
- Delivery and Pick-up
The pick-up and delivery will start at 9:00 am from

Monday to Saturday. Our customers will contact us, since we
are giving leaflets to them and posting tarpaulins in the
area. The customer and the counter clerk will set-up the
date of pick-up of laundry through telephone or cellphone,
prior to the date of pick-up in order to manage the route
in one way we can reduce the cost of gasoline. However, we
will charge ₱5.00 for every pick-up and delivery.
III. Customer’s Account using Microsoft Excel

The customer’s account will be the basis to track
their location during the pick-up and delivery service. It
contains the customer’s name, address, contact number,
number of returned garments with the payments and other
information using the Microsoft Excel as our system. It is
necessary to have a better customer communication such as,
scheduling or canceling of bookings, automatic SMS,
information about their account balances without invoice
tickets during delivery and optimized customer search.
Manpower requirements
I. Physical Requirements:
- Age must be 18-40 years old

- Workers without bending, crouching or walking restrictions.
- no skin allergies
II. Skills, Interests and Qualities
- Must be graduate of Housekeeping NC II

- practical skills to operate and adjust machinery
- good attention to detail
- willingness to do repetitive work
- the ability to work methodically and follow instructions
- willingness to work flexibly
- good timekeeping skills
- Has the ability to count and measure accurately.

Organizational Structure
Route worker
pick up,deliver,collect
Machine
Manager washers (2)
Owner and Bookkeeper Sorter tags and washer
Inspector/Supervisor
Counter Clerk Extractor
Operator(2)
extractor operator, Finishes
clothes (fold and press ,iron)
Job Description & Duties
I. Machine washers
Weigh laundry and place it in huge washing machines.

Machine washers control the machine settings for each kind
of material. This includes setting the proper temperature,
washing speed and water and suds level and adding the right
amount of bleaches and rinses. After the laundry is washed
and rinsed,
II. Counter clerk
Received laundries from customers, give back clean laundry,

scheduling the date of pick-up and delivery with the
customers, and billing.
III. Bookkeeper
Analyzing and recording the transaction and presenting the

reports on time.
III. Markers or sorters tag
Mark the laundries so that they can be returned to the

appropriate customer. They usually remove loose buttons and
mark items that need to be mended.

IV. Extractor operators
Place it in extractors, which spin most of the water out of

it. The laundry then goes to tumbler operators who put it
in drying machines that tumble it dry. Some items, such as
blankets and rugs, may be hung in heated rooms to dry.
V. Inspector
Check the finished laundry. If it needs rewashing or

repressing, he sends it back to the proper department. He
sends some pieces to menders, who do repairs by hand or
machine. Assemblers collect all the items belonging to each
customer. Finally, baggers or bundle wrappers place the
laundry in bags or bundles and attach invoices, which
indicate how much money the customer owes.
VI. Finishers
Fold and press the clean, dry laundry. When requested, they
press. They also may just fold and stack. Other finishers
work on shirts, ruffled curtains, blankets, or other items
that require special pressing and finishing. To get
professional results, they use forms designed for certain
parts of clothing, such as shirt sleeves, shirt collars, or
the bodies of skirts. They also use hand irons to finish
certain items that cannot be done on the forms. The
finished items are then folded or placed on hangers.
VII. Route workers
Pick up laundries at customers' homes. Market new customers

along their routes. They also deliver clean laundry, giving
invoices and collect payments.
Segregation of Duties
I. Single Duty
• Route Worker
• Bookkeeper-Owner
II. Duties may be desegregated

• Counter Clerk and the Inspector
• Markers or sorters tag and Machine washers (could be

same person)
• Extractor operator and the Finisher(could be same

person)
Management Style
I. Hiring Process
The applicants are required to submit their resume on the

position that they are interested to apply for. The management
will immediately evaluate and sort those applicants. And whoever
passed in the next stage will be informed by means of a message
on mobile phones. Each of them will undergo a brief interview to
personally determine if they are fit physically and mentally to
the position they were applying for and not only that but also
to evaluate if they really have the skill and ability to stay at
the business. And those who successfully overcome the process
shall submit their requirements for legal purpose employment.
II. Safe Working Environment
Safe working environment keeps the employees free from any

hazards and it complies with the law providing safeties
especially to the business operated. There are safety
precautions that should be apply, employees are segregated based
on their assigned jobs. They are required to wear gloves and
mask during the laundry process to avoid from skin irritations.
They are allowed to wear comfortable dress attire so that it
would not be hard for them to move freely. Personal hygiene is
appropriate to avoid disease or any illness, especially for
chemicals that contains strong solution.
There is specific baggage area for the employees where they can
place their bags or things to it. Their things will be check by
the assigned personnel or the owner before and after working
hours to avoid thief or any misappropriation of assets.
III. Training
Training is essential for the success of a business. Laundry

business requires training for its employees, especially it is
in need of due care, as clothes one the basic needs of every
individual. Before being hired, employees will undergo some sort
of trainings for laundry process to evaluate if they have the
capabilities required for the position, and to ensure that they
will know how to properly do their jobs to give the customer the
satisfactions they are looking for. They will be evaluated as
necessary to test their working knowledge and improvements.
The PowerClean Chemicals Institute (PCLi) is our choice to be

the supplier of our laundry chemicals and they also offer
laundry seminar not only in Luzon but also to other regions in
the Philippines. We chose them because the lectures are based
from actual experience of running a laundry shop. They have wide
coverage of topics which covers the Business Management such as
Financial Aspect, Taxation, Marketing, Manpower, Machine and the
like. They provide continuous assistance, demo of laundry
chemicals and advice of laundry operations and management even
after the seminar. The speakers are experts in Laundry Business
in which they already trained more than 1,300 Laundry owners.
Affordable price of ₱1,500 each person for early registrants of
laundry shop session. They also continuously improve their
training facility with free wifi access.
The owner should understand his choice of employees and time

invested to train them results in a direct reflection in his
marketing efforts and money spent on those efforts. All of the
owner’s best intentions to provide a clean, well equipped,
multi-service, and attractive store to his customers will be
wasted if there are any employees who do not provide to his
customers the level of service, clean appearance, and customer
friendly attitude they expect and his deserve for his
investment.
At all times, the owner should remind his employees that their
top priority is their customer’s interests. From welcoming the
customers to the shop, to keeping the machines, and floors
clean, keeping bathrooms clean, and properly supplied, taking in
Wash-Dry-and Fold and Pressing, peacefully resolving customer
issues and complaints, and having that all important good
attitude. Monitor also the employees closely and fix any
employee problems immediately.

Motivating & Rewarding Employees
1. Recognize and appreciate about the good things employees

do. They will do less negative and will strive to do more
of the positive things the owner is recognizing. It is far
easier to lead people to improved performances by thanking
them when they do it right than giving them grief when they
do it wrong.
2. Take a moment to celebrate like having a party. . It is too
easy to get so caught up in the daily struggle that you
never stop to recognize the good work you and your
attendants do.
3. Praise and recognize the star performers. Some of your
recognition budget should certainly go toward spotlighting
role model performances and role model employees. This
makes them feel good, encouraging them to stay on board and
keep trying hard. And it gives everyone a bit of
inspiration and a clearer idea of what you want employees
to shoot for.
4. Recognize good effort, not just results. When employees
have had a tough week, throw a mini-party for them. Bring
in some pizza, a cheesecake or whatever inspires the owner
and share it with the team. Or try writing a personal
thank-you card for each attendant – perhaps picking out a
different design for each and having some fun recognizing
individuals in your selection.
PAYROLL SCHEDULE (FIXED RATE)

Personnel No. Min.Wage/ Working Monthly DEDUCTIONS Total
Day Days Gross Pay SSS Premium PhilHealth Premium PAG-IBIG Premium Deductions Net Monthly Pay
ER EE ER EE ER EE
Inspector/Supervisor 1 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 6,474.34
Route Worker 1 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 6,474.34
Exctractor Operator 2 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 12,948.68
Machine Washers 2 268.00 26 6,968.00 525.70 254.30 100.00 100.00 139.36 139.36 493.66 12,948.68
TOTAL 27,872.00 2,102.80 1,017.20 400.00 400.00 557.44 557.44 1,974.64 38,846.04
TOTAL PER ANNUM 334,464.00 25,233.60 12,206.40 4,800.00 4,800.00 6,689.28 6,689.28 23,695.68 466,152.48
Employer's Contribution 36,722.88
Employee's Contribution
Annual Withholding tax 23,695.68
-

CHAPTER V
FINANCIAL ASPECT
The purpose of this chapter is to project how much startup

capital is needed, sources of capital, return on investments and
other financial considerations.
Considerations
1. The owner shall invest P 500,000.00 in the business as

shown in the next page, which approximates the total pre-
operating expenses.
2. A service rendered is on cash basis.
3. The equipment and leasehold improvements are to be
depreciated on a straight-line basis.
4. For simplicity, all employees are presumed to be single
and that they have no dependents for purposes of
computing the withholding tax.
5. Income tax is computed using the tabular tax rate for
individuals provided by the National Internal Revenue
Code.
6. There are no other current liabilities aside from the
employee benefits and income tax since the entity pays
its obligations before the end of the year.
7. Owner/Manager will withdraw instead of salary.

Pre - Operating Expenses
Machines
9kg Top Load Washing Machine with T-Drive
89,580.00
Washing Technology
7kg Sensor Dry Dryer with Iron Aid 75,980.00
165,560.00
Equipments
Water Tank 10,000.00
Exhaust fan 6,000.00
Weighing Scale 3,500.00
Steam Flat Iron 1,095.00
Computer Set 11,879.50 32,474.50
Vehicle
Multicab 150,000.00
Leasehold Improvements 11,500.00
Furnitures and Fixtures 18,500.00
Advertising Expenses
Leaflets and flyers 3,000.00
Tarpaulin 2,500.00 5,500.00
Supplies, etc.
Gloves 199.00
Laundry Basket 2,000.00
Dipper 90.00
Hangers 4,000.00
Face Mask 100.00
Plastic Basin 2,250.00
Tagging paper 9,000.00
Ballpens 60.00
Scotch tape 500.00
Record Book 150.00
Calculator 200.00
Water Hose 1,500.00
Fire Extinguisher 1,600.00
Order Slip 1,687.50
Delivery Slip 2,600.00
Plastic Bag 3,540.00
1 sq.meter of Black Shade Cloth 100.00
Plastic Container (for filtration process) 739.75
Sando Bags 1,310.00 31,626.25
Cleaning Products
Detergents 19,500.00
Fabric Softener 7,600.00
Fabric Freshener 10,000.00
Liquid Bleach 3,280.00
Paint Oil and Grease Remover 5,000.00 45,380.00
Duties and Licenses 5,842.00
Rent 2 months advance 1 month deposit 30,000.00
TOTAL 496,382.75

Lovebada Bango
PROJECTED FIVE YEAR COMPARATIVE BALANCE SHEET
Year 1 Year 2 Year 3 Year 4 Year 5

ASSETS
Current Assets
Cash 660,841.65 884,816.46 982,166.09 970,134.35 623,783.09
Supplies Inventories 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04
Total Current Assets 663,110.65 887,312.36 984,911.58 973,154.39 627,105.13
Non Current Assets

Equipments 348,034.50 348,034.50 348,034.50 348,034.50 348,034.50
Less: Accumulated Depreciation 50,606.46 101,212.92 151,819.38 202,425.84 253,032.30
Leasehold Improvements 11,500.00 11,500.00 11,500.00 11,500.00 11,500.00
Furnitures and Fixtures 18,500.00 18,500.00 18,500.00 18,500.00 18,500.00
Total Non Current Assets PHP 321,428.04 PHP 264,821.58 PHP 208,215.12 PHP 151,608.66 PHP 95,002.20
Total assets PHP 984,538.69 PHP 1,152,133.94 PHP 1,193,126.70 PHP 1,124,763.05 PHP 722,107.33
LIABILITIES & OWNER'S EQUITY

Current Liabilities
Due to SSS 4,680.00 4,680.00 4,680.00 4,680.00 4,680.00
Due to Philhealth 1,200.00 1,200.00 1,200.00 1,200.00 1,200.00
Due to PAG-IBIG 1,672.32 1,672.32 1,672.32 1,672.32 1,672.32
Income Tax Payable 178,435.64 232,529.88 286,127.25 345,084.35 410,577.16
Total Current Liabilities PHP 185,987.96 PHP 240,082.20 PHP 293,679.57 PHP 352,636.67 PHP 418,129.48
Non Current Liabilities
Loan Payable 0.00 0.00 0.00 0.00 0.00
Total Liabilities PHP 185,987.96 PHP 240,082.20 PHP 293,679.57 PHP 352,636.67 PHP 418,129.48
Owner's Equity
Capital 798,550.73 912,051.73 899,447.14 772,126.38 303,977.85
Total Liabilities and Owner's Equity PHP 984,538.69 PHP 1,152,133.94 PHP 1,193,126.70 PHP 1,124,763.05 PHP 722,107.33

Lovebada Bango
PROJECTED FIVE YEAR COMPARATIVE INCOME STATEMENT

Service Revenues PHP 1,648,920.00 PHP 1,813,812.00 PHP 1,995,193.20 PHP 2,194,712.52 PHP 2,414,183.77
Less: Discounts 49,467.60 54,414.36 59,855.80 65,841.38 72,425.51
Net Service Revenue PHP 1,599,452.40 PHP 1,759,397.64 PHP 1,935,337.40 PHP 2,128,871.14 PHP 2,341,758.26
Less: Cost of Services 392,968.15 399,548.25 404,517.36 409,983.38 415,996.00
Gross Profit PHP 1,206,484.25 PHP 1,359,849.39 PHP 1,530,820.04 PHP 1,718,887.76 PHP 1,925,762.25
Less: Expenses
Salaries & Wages 167,232.00 167,232.00 167,232.00 167,232.00 167,232.00
Depreciation - Equipment 35,213.31 35,213.31 35,213.31 35,213.31 35,213.31
Depreciation - Leasehold improvements 2,300.00 2,300.00 2,300.00 2,300.00 2,300.00
Depreciation - Furnitures and Fixtures 3,700.00 3,700.00 3,700.00 3,700.00 3,700.00
Rent 140,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Supplies 31,626.25 34,788.88 38,267.76 42,094.54 46,303.99
Advertising 5,500.00 3,000.00 3,000.00 3,000.00 1,000.00
SSS contribution 37,850.40 37,850.40 37,850.40 37,850.40 37,850.40
PhilHealth Contribution 7,200.00 7,200.00 7,200.00 7,200.00 7,200.00
PAG-IBIG Contribution 10,033.92 10,033.92 10,033.92 10,033.92 10,033.92
Duties and Licenses 5,842.00 2,500.00 2,500.00 2,500.00 2,500.00
Utilities 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00
Repairs and Maintenance 5,000.00 12,000.00 12,000.00 12,000.00 12,000.00
Total General and Administrative Exp 489,497.88 473,818.51 477,297.39 481,124.17 483,333.62
Income Before Tax PHP 716,986.37 PHP 886,030.89 PHP 1,053,522.65 PHP 1,237,763.59 PHP 1,442,428.63
Income Tax (Tabular) PHP 178,435.64 232,529.88 286,127.25 345,084.35 410,577.16
Income After Tax PHP 538,550.73 PHP 653,501.00 PHP 767,395.40 PHP 892,679.24 PHP 1,031,851.47
Cost of Services Provided

Inventory, Jan 0 2,269.00 2,495.90 2,745.49 3,020.04
Purchases 45,380.00 49,918.00 54,909.80 60,400.78 66,440.86
Freight-in 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04
Total Purchases 47,649.00 52,413.90 57,655.29 63,420.82 69,762.90
Purchase Discounts 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04
Net Purchases 45,380.00 49,918.00 54,909.80 60,400.78 66,440.86
Cost of Inventoy Available for Use 45,380.00 52,187.00 57,405.70 63,146.27 69,460.90
Less: Inventory, Dec 2,269.00 2,495.90 2,745.49 3,020.04 3,322.04
Cost of Inventoy Used 43,111.00 49,691.10 54,660.21 60,126.23 66,138.85
Salaries of Direct Workers 334,464.00 334,464.00 334,464.00 334,464.00 334,464.00
Total Depreciation of Direct Equipment 15,393.15 15,393.15 15,393.15 15,393.15 15,393.15
TOTAL COST OF SERVICES 392,968.15 399,548.25 404,517.36 409,983.38 415,996.00

Breakdown of Utilities (Indirect)
Description Consumption per day (Php) In One Year Total
1. Gasoline 100 312 31,200.00
2. Telephone 0.191362 312 59.70
3. Electricity 3.18936 312 995.08
4. Water 0.486 312 151.63
5. Computer 10.04648 312 3,134.50
35,540.92
Lovebada Bango
Depreciation Table
Equipments
Cost/Equipment/F
Quantity urniture Total Acquisition Cost Scrap Value Est. Useful Life Annual Dep'n
9kg Top Load Washing Machine with T-
Drive Washing Technology 4 22,395.00 89,580.00 8,958.00 10 8,062.20
7kg Sensor Dry Dryer with Iron Aid 4 18,995.00 75,980.00 7,598.00 10 6,838.20
Steam Flat Iron 1 1,095.00 1,095.00 109.50 2 492.75
Direct Equipment - Overhead 15,393.15
Multicab 1 150,000.00 150,000.00 15,000.00 5 27,000.00
Water Tank 1 10,000.00 10,000.00 1,000.00 5 1,800.00
Computer Package 1 11,879.50 11,879.50 1,187.95 5 2,138.31
Weighing Scale 1 3,500.00 3,500.00 350.00 2 1,575.00
Exhaust Fan 1 6,000.00 6,000.00 600.00 2 2,700.00
Total Depreciation Equipments 348,034.50 35,213.31
Furnitures and Fixtures 18,500.00 18,500.00 5 3,700.00

Leasehold Improvements 11,500.00 11,500.00 5 2,300.00
TOTAL 378,034.50 56,606.46

PROJECTED STATEMENT OF CASH FLOWS

Cash Provided/Used by Operating Activities
Cash Receipts from Sales & Services PHP 1,599,452.40 PHP 1,759,397.64 PHP 1,935,337.40 PHP 2,128,871.14 PHP 2,341,758.26
Purchase of Inventory 45,380.00 49,918.00 54,909.80 60,400.78 66,440.86
Payment of Advertising Fee 5,500.00 3,000.00 3,000.00 3,000.00 1,000.00
Payment of Utilities Expense 38,000.00 38,000.00 38,000.00 38,000.00 38,000.00
Payment of supplies 31,626.25 34,788.88 38,267.76 42,094.54 46,303.99
Payment of Rent 140,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Payment of Repairs and Maintenance 5,000.00 12,000.00 12,000.00 12,000.00 12,000.00
Payment of Employee Salaries / Wages 466,152.48 466,152.48 466,152.48 466,152.48 466,152.48
SSS, Philhealth & PAG-IBIG Premium (ER&EE share) 83,075.52 90,627.84 90,627.84 90,627.84 90,627.84
Payment of Duties and Licences 5,842.00 2,500.00 2,500.00 2,500.00 2,500.00
Remittance of Withholding Tax - - - - -
Payment of Income Tax 0.00 178,435.64 232,529.88 286,127.25 345,084.35
Net Cash Provided by Operating Activities 778,876.15 763,974.81 877,349.64 1,007,968.26 1,153,648.74
Cash Provided/Used from Investing Activities

Payment to acquire equipment 366,534.50 0.00 0.00 0.00 0.00
Payment for leasehold improvements 11,500.00 0.00 0.00 0.00 0.00
Net Cash Used in Investing Activities 378,034.50 0.00 0.00 0.00 0.00
Cash Provided from Financing Activities

Cash received as investment by owner 500,000.00 0.00 0.00 0.00 0.00
Payment for withdrawals by owner 240,000.00 540,000.00 780,000.00 1,020,000.00 1,500,000.00
Net Cash Provided by Financing Activities 260,000.00 -540,000.00 -780,000.00 -1,020,000.00 -1,500,000.00
Net Cash Inflow (Outflow) 660,841.65 223,974.81 97,349.64 -12,031.74 -346,351.26

Add: Beginning Cash Balance - PHP 660,841.65 884,816.46 982,166.09 970,134.35
Ending Cash Balance PHP 660,841.65 PHP 884,816.46 PHP 982,166.09 PHP 970,134.35 PHP 623,783.09

Lovebada Bango
PROJECTED STATEMENT OF CHANGES in OWNER'S EQUITY
YEAR
1 2 3 4 5
A, Capital A, Capital A, Capital A, Capital A, Capital
Beginning Balance PHP 0.00 PHP 798,550.73 PHP 912,051.73 PHP 899,447.14 PHP 772,126.38
Add: Investment 500,000.00 0.00 0.00 0.00 0.00
Net Income 538,550.73 653,501.00 767,395.40 892,679.24 1,031,851.47
Total PHP 1,038,550.73 PHP 1,452,051.73 PHP 1,679,447.14 PHP 1,792,126.38 PHP 1,803,977.85
Less: Withdrawals 240,000.00 540,000.00 780,000.00 1,020,000.00 1,500,000.00
Ending Capital Balance PHP 798,550.73 PHP 912,051.73 PHP 899,447.14 PHP 772,126.38 PHP 303,977.85
FINANCIAL STATEMENT ANALYSIS
Return On Investment
Year 1 Year 2 Year 3 Year4 Year 5
Net Income 538,550.73 653,501.00 767,395.40 892,679.24 1,031,851.47
Divided by: Average Investment 984,538.69 1,068,336.31 1,172,630.32 1,158,944.88 923,435.19
ROI Percentage 0.547 0.612 0.654 0.770 1.117
Payback Period (Uneven Cash Flows)

Net Operating Cash Cummulative Cash
Year Flows Flows
1 778,876.15 778,876.15
2 763,974.81 1,542,850.96
3 877,349.64 2,420,200.59
4 1,007,968.26 3,428,168.85
5 1,153,648.74 4,581,817.59
500,000.00
Computation: 0.67
In 8 months

Chapter VI
SOCIO ECONOMIC-STUDY AND ENVIRONMENTAL IMPACT
This chapter in general provides information about the

socio economic study of the business as well as its
environmental impact. This will tackle the benefits that can be
rendered to the customers, the owners and the staff and how to
keep the environment safe from the chemicals that are main
components of the laundry business.
Socio-Economic
The proposed laundry business, “Lovebada Bango” will bring

satisfaction to customers, who are looking for a laundry shop
that will cater good services of cleaning their clothes at a
reasonable price. The business will help the customers or
individuals to maximize their time for other work and serve
comfort to the customers.
Contribution to the Economy
The proposed business will benefit the economy through

providing employment to every individual especially within the
resident covered by the study. This will give the hired
employees and their families their source of income for their
living needs. This business will support local workers. It will
also promote the business and also contribute to the competition
which will lower the price of the product but will maintain the
quality of the products.
Contribution to the Government
As Filipino citizens, the business owners will pay their

tax liabilities mandated by the law. Tax will help the
government generate funds for the improvement of public service
and government projects.
Contribution to the Society
Lovebada Bango business will keep this town marketable to

attract more investors that will help the community for its
improvements and modernization, which, in turn leads to money
placed directly into the community.

Environmental Impact
Environmental impact of cleaning agents is the consequences

of chemicals contained in the products. We can't deny the fact
that our environment is the first affected by what we are doing
especially when it involves upgrading our works through the help
of technology. Simple things like using a car as a means of
transportation can contribute or rather give impact to our
environment.
Laundry business like Love Vada Bango, perhaps gives an

impact to our environment. The machines that we used emit
greenhouse gasses (CO2) that add effect to what we are
experiencing nowadays, the "global warming".
Another thing is the used of detergents and bleaches in

washing garments. Although the place is not near the river in
which fishes could die, detergents may still affect our
environment. Like lots of fillers used in powder detergents are
poured in drains causing wastage of useful products like common
salt / washing soda and choking of drain / sewerage system.
Components of detergents like sodium sulphate can wreak havoc on
septic system. Synthetic detergents and our laundry practices
are contributing to our ground level water pollution.
The laundry business is aware of its harm to the

environment from the chemical substance that will be used as
stated above. Since the proposed business have to make sure that
it will not cause any harm to the people and environment as
well, it has to make sure to treat every water it throws.
The water treatment will use filtration system for removal

of contaminants by chemical and physical bonding. The proposed
business will make this process cost friendly and more
effective.

Chapter VII
CONCLUSION AND RECOMMENDATION
The market study determined the demand for service through

research on the residents on the particular area from Brgy.
Sikatuna, Tandang Sora and Humabon. The study conducted revealed
the demand for the service and enabled to come up with an
efficient marketing program that will support the viability of
the business in its first stages of operation and expected to
last in the long run.
Generally, Lovebada Bango Laundry Shop is seen to be

feasible upon studying its location, market demand and the
factors affecting the market. It is recommended that an
extensive study for other aspects of the business feasibility is
conducted and the execution of the marketing program developed
accords to what really satisfies the market.

Feasibility Study Laundry Services

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2014

[COPYRIGHT PROTECTED DOCUMENT]

Mr. Daniel Nemeses C. Espina, CPA

FSUU-Accontancy Program | All Rights Reserved. 2

FSUU-Accontancy Program | All Rights Reserved. 3

FSUU-Accontancy Program | All Rights Reserved. 4

The fast change of trend from individualized laundry to

Laundry business is an easy and convenient business to

This is the reason why there is chance of making a lot of

Butuan City as a highly urbanized city in the Philippines

FSUU-Accontancy Program | All Rights Reserved. 5

Fig. 1 Business Logo

The proposed business location is located at Lopez Jaena

This location composes of schools like FSUU, SJIT and BCC;

The Business concept of LOVEBADA BANGO is typically

FSUU-Accontancy Program | All Rights Reserved. 6

Professionalism towards customers - Personnel of the shop will

FSUU-Accontancy Program | All Rights Reserved. 7

The marketing aspect will serve as the basis of the

This is to identify a point or an area of study. Geographic

Fig. 2 Area covered Brgy. Humabon

Fig. 3 Area covered Brgy. Sikatuna

No. Apartments Total

Fig. 5 Actual Population

1. The number of apartments and boarding houses were gathered

Our target market will determine from those living in

FSUU-Accontancy Program | All Rights Reserved. 9

This group of market will be described their need according to

In order to know the population demand for the proposed

N = Number of samples N = 2899

Barangay Number of population Distribution Ratio total Respondents Distribution of respondents

brgy. Humabon 523 18.0% 97 17

Fig. 6 Questionnaire Distributions

1. The number of population is based on Actual.

FSUU-Accontancy Program | All Rights Reserved. 10

Fig. 7 Respondents Classification

We have gathered data of the list of the Laundry Shops

1. ALL SEASON STEAM LAUNDRY – R. CALO ST. 5, Diego Silang

FSUU-Accontancy Program | All Rights Reserved. 11

 Among those shops listed above, highlighted is the nearest

FSUU-Accontancy Program | All Rights Reserved. 12

Fig. 9. Market Need

Percentage of those Total Population who Estimated # of kls projected

Brgy. Humabon 523 82% 429 3 1287

Fig. 10. Demand Analysis

Fig. 11. Supply Analysis

Demand Supply Demand and Supply Gap

7132 750 6382

Fig.12. Demand and Supply Gap Analysis

FSUU-Accontancy Program | All Rights Reserved. 13

1. Demand Analysis (Fig.10), projected demand is the estimated

Laundry Services Offered

The following are the list of the services to be offered based

Fig. 13 Services to avail

FSUU-Accontancy Program | All Rights Reserved. 14

Wash Dry Fold Wash Dry Press Handwashing Special Items

How much the market is willing to spend for laundry service?

FSUU-Accontancy Program | All Rights Reserved. 15

 On the survey provided, 83% will go for cost of

Bring to Laundry Shop

FSUU-Accontancy Program | All Rights Reserved. 16

SERVICE REVENUE PROJECTION

Estimated Kg. of Total Sales No. of Weeks in Total Sales in