Chapter 1

Executive Summary

A. Name of the firm

The proponents decide to a business name “Lava Dami Laundry Shop” originated from
the tagalog word “labahing madami” that means washing clothes in multiple loads of laundry.
The proponents able to come up this business name since it is easily to recognize and relatable to
the residents in the community. The proponents believes that business name in the society can
have an impact on the way the people in that society perceive and to interact with one another. It
is important to consider the implications of a business name before using it as this can have a
significant impact not just the business but also the people who work there and the community as
a whole.
In making a business name the proponents able to make recognizable sign, phrase, or
symbol that the serves legally differentiate it from all others name which extremely distinctive
that is easy to read and remember it well that alliterates the customers minds as an advantage and
also it serves a variety of purposes from services differentiation to corporate identity and
trademark.
Creating a business name might need a length of time which have to figure out and
checked if the business is already taken or exist by avoiding dispute in other party. The
proponent’s legal process in registering the business name are the following:
1. Preparing the business name. This process is where the preparation of the business name
“Lava Dami” as going to regards in business entity.
2. Confirm the availability of the business name. The proponents search on DTI website if
the business name is available for use.
3. Fill up the online registration form. If the business name is available, the proponents can
proceed and fill up the DTI online registration form through the Business Name
Registration System (BNRS). Then confirming the references code provided to the
proponents as will use it in all transactions with BNRS.
4. ‘Pay the registration fee. This is the final process of registering the business where after
filling the online registration and pay the registration within 7 calendar days.
After paying the registration in three (3) calendar days since a business partnership is a legal
entity from that of the participants in the partnership, there will be more laws regulating for the
benefits of both proponents. The basic requirements are;
 Name Verification Slip
 Articles of Partnership (AP) notarized by the lawyers
 Joints Affidavit of the proponents to change the partnership name
 FIA form

1
Once the proponent’s gather the needed documents, the steps to register the business name at
SEC are as follows;
1. Very or reserve the proposed name
2. Present Article of Incorporation and by-laws at SEC Building Pagadian, Philippines
3. Pay filing at the SEC Building Pagadian, Philippines
4. Present Official Receipt to Releasing Unit, SEC Building Pagadian, Philippines
The proponent’s funds a certain amount of money depending on the business will be required
for the business to be certified by the government. The proponents must secure a Treasurer
affidavit from the bank to authorize the SEC and BSP to examine and verify the capital funds in
the bank. Once the document are accomplished the proponents can go back to final registration
process and the release of the (TIN), documents are the following;
 Approach business name
 Notarized Articles of Partnership
 Submission of SEC form
 Treasurers Affidavit
 Statement of assets and liabilities
 Partnership details

B. Location
The geographic location of the business is at Rizal Avenue Bagong Silang, Balangasan
District, Pagadian City Zamboanga Del Sur. Basically, the business is intended for the resident
of the community for the reason that not all the resident have house helpers to do laundry. Many
residents are working and some are students that is busy to do the laundry, so this kind of
business is good enough for the people who can’t do there laundry. The lot measures area of 10m
❑
x 12m rectangle and 120 sq and the exact hectares is 0.012 with square inches of 108,500. The
rates of renting the place range from 6,000 to 7,500 a month since it’s located on the main road;
hence it projects a higher rate. The cost of renting the places if good enough for the availability
of the business that it easily seen by the target market.
The main location of the business is near in front of Des Strong Motors, Inc. and the edge
of the DPWH and cross over in Balangasan Bridge. An efficient site for “Lava Dami” is seen in
the community where the need for an instant way to clean the resident’s clothes is highly
recommendable. The proponents choose this geographic location in view of the fact that it is one
of largest community in the Pagadian City that composes big building, establishment, apartments
and schools. Furthermore, the advantages of location to the market is that it is the main road or
national highway whereby they can recognize and be easily seen by the residents that has no time
to do laundry and be market easily to more customers.

2
 Upon buying a commercial lot the proponents ready the documents such as Letter of
Intent (LOI). This is a non-binding document that the buyer gives to the seller Reservation
Letter, Contract to Sell, Letter of Guarantee (LOG), Deed of Absolute Sale, Certificate Title, Tax
Declaration, a commercial lot has an advantage since it is capable of bringing in the highest
return on investments that is typically those with the highest number of tenants.

C. Description of the Project

As long as humans have been wearing clothes, they have been washing them as well.
Although our early ancestors lacked the stringent laundry technologies we enjoy today, they
surely appreciated the scent, feel, and look of freshly laundered clothing and linens. Launderers
have been around for centuries, and electric washers were invented in the early 1900s, but the
first modern Laundromats dates back to 1930s. To better understand the role self-service
laundries have played in households over the decades. The cost of wool and clothes made of
wool made washing necessary, so early civilizations washed their clothes in rivers. Before the
invention of detergent, removing dirt and stains from clothing required a lot of muscle power.
Laundry meant hard twisting and slapping the clothing against rocks on the river,
stomping on the clothes, and using paddles and washboards to, quite literally, beat the dirt out of
the fibers. Before the invention of modern detergent, civilizations of the past used animal fat or
lye to wash clothes. Other times, they used chamber lye a conspicuous nickname for urine
(collected from the chamber pots of the citizenry hence, ‘chamber’ lye) for washing clothing.
Other cleaning agents were also used, like natron, which was a favored cleaning agent for both
body and clothing in ancient Egypt. Because of the physical demands of the chore, laundering
clothes was limited to a few times a year and was delegated to men. In fact, in Ancient Rome, the
job of laundering was a duty performed by men called full ones who took care of the used
clothing of practically their whole city. In terms of the history of laundry, this was the beginning
of the communal nature of laundry.
Today Over the past few decades, laundry technology has improved dramatically.
Energy-efficient, low-water washers are gaining in popularity, and dryers are much faster than
they were in decades past. Although many machines still rely on coin-operated mechanisms,
digital card-operated payment systems are also available its laundromats typically operate on a
self-serve, automated system, their owners are able to step back and manage their stores from
afar. Many laundromats include amenities like free Wi-Fi, TVs, vending machines, and
children’s play areas. In addition, it isn’t unusual for laundromats to remain open 24/7, an extra
convenience for customers with busy schedules.

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Business Cycle

SEGREGATION OF WEIGHING AND

GARMENTS PRICING OF
ACCORDING TO ITS CLOTHES
CATEGORY ACCORDING TO ITS
CATEGORY

PACKING AND
PREPARING FOR SORTING/
CLOTHES TO PICK- LAVA DAMI CHECKING FOR THE
UP BUSINESSCYCLE SHARP DEVICES
AND OTHER WASTE
PRODUCTS

PUTTING CLOTHES
DRYING AND INTO THE
IRONING MACHINES AND
INSERT A COIN FOR
WASHING

In doing this research the proponents are aware of some competitors in business entity. So, in
this business a laundry shop upon the observation of the proponents around the community of
Bagong Silang, Barangay Balangasan Pagadian City they are able decide this area it is because
there is no competitors in the market area which advantage to the proponents to make a
profitable business. The proponents able to decide this business industry for the reason that it’s
provides steady income which easy to operate and low labor cost that customers provide much of
the labor themselves in very affordable prices and services to offer. Also, laundromat
businesses offer flexibility and increase profit by extra services where many people are
discovering they don't have time to do laundry in an environment where everyone has a busy
schedule. Owners of laundromats now have the chance to boost income by providing wash &
fold services to these clients.

4
D. Marketing Feasibility Summary
The proponent’s observation around the community set out an idea on what study to
conduct for the people who lives in Bagong Silang, Barangay Balangasan, Pagadian City and to
those students, employees and establishment that will need a service. Based on the observation,
there is no competitor within the area of the community. Furthermore, this business will be the
first laundry shop will establish all over the area and its prices will start on the lower rate
compared to other laundry shop in the city proper.
The following factors which the proponents have identified as influencing in the
target market and thus need to be considered are: first, population growth must be taken into
account as there are more people, there are more opportunities to provide services. Probably, the
demand of services and products increased. Second, the income changes which it determines if
the target market can afford the prices of the services. Preferences is another factor which can
affect the target market is it because is the income changes determines if the target market can
afford the prices of its services. The next factor to consider is prices of substitute products where
it is important factor that must be taken into consideration because we all know that customers
are preferred themselves into what can save more. Lastly, the marketing tools which the
proponents are using advertisement, promotion and flyers to its business that will give a good
impression to the customers which can build to a long-lasting relationship.
Residents of the Bagong Silang, Brgy, Balangasan, employees, students who are renting a
bed spacer and apartments especially those establishment such as hotels, schools, banks and
restaurants are the target market of the proponents. This market study will enable the proponents
to continue with their projects that will soon to be profitable as well as services oriented.
The proponent’s market partial details of this research are around Bagong Silang,
Barangay, Brgy. Balangasan Pagadian City provinces of Zamboanga Del Sur. The target market
study was specified below.

Students Employees
Age (17 – 23 years old) (25 – 59 years old)
Gender (Female / Male) (Female/Male)
Status (Single) (Single/ Married/Widowed)
Work Status (None) (Employed)

The proponent’s partials information of revenues is Php 1,000,000 and the profit of the
business estimated is 700,000 with a cost of 350,000 in utilities, laundry materials, machines,
laundry detergent, lights and CCTV and other expenses.
E. Technical Feasibility Summary

5
 The Lava Dami Laundry Shop has a total area of a 10m x 12m rectangle; 120 square
meters; 1,200,000 square centimeters; 0.012 hectares; 186,000 squares; 1,291.2 square feet. Lava
Dami floor area is 7m x 10m rectangle; 7 square meters; 700,000 square centimeters; 0.007
hectares; 108,500 square inches; 753.47 square feet this intended for the shop to build excluding
the parking space for customers. The laundry shop consists of 1 storey.
Materials used in building the Lava Dami Laundry:
 Cement
 Sand
 Gravel
 Hollow Blocks
 Purlins
 Colored Roof
 Nails
 Angle Bar (defend on the size)
 Deformed Bar
 Tiles
 Nails
 Plywood
 Tire wire
 Glass

The proponents decide to design the shop aesthetically with the color combination of brown and
white that has a painting in every corner of it and a glass fronting the main road when it can be
seen and recognize by the customers. Fire extinguishers, fire exit and PWD lane is check by
Health and Safety Audit which they will issue certificate that has met and passed all the legal
standards for the safety of employees and customers.

6
Table 1. Total cost of material cost

Unit cost Total Cost

Materials used
1. 50 sacks 1. 240 1. 12,000
1. Cement
2. 2 files 2. 700 2. 1400
2. Woods
3. 5 cubic 3. 1000 3. 5000
3. Sand
4. 5 cubic 4. 1300 4. 6500
4. Gravel
5. 200 pcs 5. 14 5. 2800
5. Hollow blocks
6. 10 pcs 6. 500 6. 5000
6. Purlins
7. 8pcsfor 6 meters 7. 300 7. 14,400
7. Colored Roof
8. 8 pcs 8. 300 8. 2400
8. Angle bar
9. 20 pcs for 12 mm 9. 158 9. 3160
9. Deformed Bar
10. 50 pcs 10. 60 10. 3000
10. Tiles
11. 5 kgs 11. 60 11. 300
11. Nails
12. 8 pcs 12. 680 12. 5440
12. Plywood
13. 4 kgs 13. 80 13. 320
13. Tire wire
14. 2 pcs 14. 2100 14. 4200
14. Glass
Total cost: 53920

7
Table 2. Lapsing Schedule / Depreciation Expenses

Materials used   Unit Total cost Purchas Depreciatio

cost e Date n Expense

           
Cement 50 pcs 240 12000 Jan-23 Less 5%
Woods 2 files 700 1400 Jan-23  
Sand 5 cubic 100 5000 Jan-23  
0
Gravel 5 cubic 130 6500 Jan-23  
0
Hollow blocks 200 pcs 14 2800 Jan-23  

Purlins 10 pcs 500 5000 Jan-23  

Colered roof 8 pcs for 6 300 14400 Jan-23  
meters
Angle bar 8 pcs 300 2400 Jan-23  

Deformed bar 20 pcs for 12 158 3160 Jan-23  

mm

8
Materials used Unit cost Total cost

Cement 50 pcs 240 12000

Woods 2 files 700 1400
Sand 5 cubic 1000 5000
Gravel 5 cubic 1300 6500
Hollow blocks 200 pcs 14 2800
Purlins 10 pcs 500 5000
Colered roof 8 pcs for 6 meters 300 14400
Angle bar 8 pcs 300 2400
Deformed bar 20 pcs for 12 mm 158 3160
Tiles 50 pcs 60 3000
Nails 5 kgs 60 300
Plywood 8 pcs 680 5440
Tire wire 4 kgs 80 320
Glass 2pcs 2100 4200
Total cost: 53920

9
F. Managerial Feasibility Summary

The goal of this research is to empower service providers with the knowledge they need
to deliver reliable, consistent services to their clients on time. Additionally, to upholding a high
standard of craftsmanship which results in a quality exceptional and to maintain a safety and
clean business environment that has good quality of services and services - oriented
business. Furthermore, in planning this business the proponents learn about the market
that consider the following;
1. The location of the place
2. Unfavorable weather condition
3. Due to increasing number of people
4. Easily seen by customers
5. High demand of business services
6. No competitor within the area of target market

The proponent's goals in offering laundry cleaning, folding, and ironing services to Lava Dami
Laundry Shop consumers include:

 Generate a profit.

 To develop a solid brand with consumers and foster brand loyalty of business by
dominating a socially responsible firm and;

 Create a profitable company by the end of the first year.

 To control the local market and distinguish Lava Dami Laundry Shop from its rivals in
the area of the city. Also,

 Maintaining a safe and clean environment business

 Lastly, to give confidences to the customers about the quality services provided and let
them feel the worth of the services provided.

10
A business can achieve competitive advantage if it chooses a strategy that sets the business apart
from anyone else. The proponent’s strategy that boosts the business and create specifically to
address unique exposures in business industry by:

 Constrain the audiences. The proponents should locate the people in the community who
don’t have a washer’s dryers of their own.

 Promote services. This strategy an entertainment that is a great way to boost business in
order to maintain the relationship of the customers and owners.

 Tactics. Once a client show interest in cleaning services, the proponents will be
implementing a different tactics to retain the interest of the clients.

 Complimentary Services. A discount which to offer every first customer with a surprise
package.

 Advertisement. Telling the potential and current customers about the services offered
through television and media.

 Flyers. The proponents are making flyers which distributed around the target market
contained the services offered that bring attention to business promotion.

 Business Promotion. The proponents promote their business to influences the customers
to render services.

 Unique Machineries. Means the proponent’s machineries are coin and weight operated
which being different to other laundry shop that is self-service only.

An effective campaign is the key to ensuring success in the future. Lava Dami’s effective
innovative strategies for approaching the clients and growing the business by advertising the
laundry services which advertising gives the proponents more control since it allows to direct the
specific and local audience. This means that the proponents can target the location of business
where the potential customers can be found. Additionally, advertising can help the proponent’s
business to reach the target and specific market.

11
 Every small business needs to let potential customers know about their products and services.
This is most often done through social media platforms, websites and email marketing. But one
of the oldest marketing method the flyer, is just as strong as ever and shouldn’t be dismissed.
Furthermore, in order to really hit the target market of the business by making a flyer which
contained the overall services offered and by effective way to tell people on the street about the
services and products. They may have never seen the website or may not be on social media.
They may have never seen the website or may not be on social media. Even if online, they may
take more notice of a flyer that is handed to them rather than scrolling through their news feed.
The attention spans are sadly getting shorter, so a flyer is a quick way of grabbing that potential
customer’s attention.

In business one if the best strategies that the business do is promotion and discount. Lava
Dami Laundry Shop has more to offer which they promote the business by a big discount with a
30% to the first customer to enter their business. Also, the proponents start with building
awareness and interest, and discounts which can attracts to a new customer. And by discount the
customers will preferred where they can save more.

G. Financial Feasibility Summary

The proponent’s total cost of the project Php 563,800 estimated that is being spend the
whole process of building this project in 3 months of contractual operation.

Key Assumption

 Partnership is the form of business organization with (2) partners

 The group consist of 2 members who contribute Php700,000 to have total of capital of
Php 1,400,000.

12
Table 3

TOTAL COST OF THE PROJECT

COMPONENTS OF PROJECT COST

Amount in Nu.
PARTICULARS Forex Domestic Total Remarks
Component Component Cost

Laundry space (security deposit) 30,000 30,000

Plant & Machinery

Sintex Water Tank (2,500L) 25,000
Heavy Duty Washing Machine 125,000
Dry Cleaning Machine with 132,500
Motor
Sewing machine 25,000
Total 307,500 307,500

Vehicle (Delivery van) 140,000 140,000

Miscellaneous Fixed Assets:
Computer 30,000
Office Furniture 17,250
Stationary 3,500
Workers Uniform 1,350

13
Laundry Utensils 9,700
Electrical Fittings 7,000
Signboard 2,500
Total Cost 71,300 71,300

Preliminary Expenses 15,000 15,000

Total Project Start-up Cost 563,800

Table 4

INCOME STATEMENT PROJECTION FOR 5 YEARS

14
 Lava Dami Laundry Shop

Table 5
Income Statement
For the year ended 2019-2023

Year 1 Year 2 Year 3 Year 4 Year 5

Laundry Income 1,482,190.00 1,662,790.00 1,975,440.00 2,101,390.00 2,429,050.00
Less: Operating Expenses
Rent Expenses 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Repairs and Maintenances 20,000,00 20,000.00 25,000.00 25,000.00
Salaries and Wages 702,000.00 702,000.00 702,000.00 702,000.00 702,000.00

PROJECTED BALANCES SHEET STATEMENT

Utiliites Expenses 264,000.00 225,000.00 225,000.00 225,000.00 225,000.00
Taxes and Licenses 3,010.00 5,901 .71 5,912.89 5,932.23 5,940.02
SSS Contribution Expenses 53,394.00 53,394.00 53,394.00 53,394.00 53,394.00
PHIC Contribution Expenses 7,020.00 7,020.00 7,020.00 7,020.00 7,020.00
HDMF Contribution Expenses 14,040.00 14,040.00 14,040.00 14,020.00 14,040.00
Depreciation Expenses ( Furn and Fix 2,000.00 2,000.00 2,000.00 2,000 2,000.00
Depreciation Expenses ( Equipment) 121,137.00 1,286,601.00 121,137.00 1,270,492.71 121,173.00 1,270,503.00 121,137.00 1,275,523.23 121,137.00 1,275,531.02
Net Income Before Tax 195,589.00 392,297.29 704,936.11 825,866.75 1,153,518.98
Less : Income Tax 58,676.70 117,689.19 211,480.83 247,760.03 346,055.69
Net Income After Tax 136,912.30 274,608.10 493,455.28 578,106.74 807,463.28

15
Projected Balance Sheet
Lava Dami
Balance Sheet
As of December 31, 2019-2023
2019 2020 2021 2022 2023
Asset
Current Asset
Cash 2,348,245.50 3,297,551.09 3,884,797.95 4,519,762.95 5,425,521.92
Non-Current Asset
Equipment (Washing Machine) 302,685.00 102,895.00
Acc. Dep (Washing Machine) 60,537.00 242,148.00 60,537.00 60,537.00 81,116.00 81,116.00
Equipment (Car) 300,000.00
Acc. Dep (Delivery Car) 60,000.00 240,000.00 60,000.00 60,000.00 60,000.00 60,000.00
Equipment (Flat iron) 3,000.00
Acc. Dep (Flat iron) 600.00 2,400.00 600 600 600 600
Furnitures & Fixtures 10,000.00
Acc. Dep (Furnitures & Fixtures) 2,000.00 8,000.00 2,000.00 2,000.00 123,137.00 2,000.00 143,716.00 2,000.00 143,716.00
Supplies 219,500.00 219,500.00 219,500.00 219,500.00 219,500.00
Total Assets 3,060,293.50 3,393.914.09 3,981,160.95 4,595,546.95 5,425,521.92
Projected Balance Sheet
Lava Dami
Balance Sheet
As of December 31, 2019-2024
32402.38389 23122.57075 23122.2783 28400.59099 25548.46226
Asset 23234.63808 22793.46226 22793.08491 26286.28143 24927.88679
Current Asset 14066.89226 22464.35377 22463.89151 24171.97186 24307.31132
Cash 4899.146444 2,348,245.50 -2,858,551.09 -396,279.76 1,373,233.07 1,579,929.42
Non-Current Asset -4268.599372 21806.13679 21805.50472 -783156.4926 19943.35272 1151811.204 23066.16038 1308010.411
Equipment (Washing Machine) -13,436.35 21477.0283 21476.31132 -1170033.224 17,829.04 930389.336 22445.58491 1036091.403
Acc. Dep (Washing Machine) -22,604.09 9,167.75 21,147.92 21,147.12 15,714.73 21,825.01 764172.3938
Equipment (Car) -31,771.84 20818.81132 20817.92453 -1943786.686 13600.42402 487545.601 21204.43396 492253.3849
Acc. Dep (Delivery Car) -40,939.58 9,167.75 20,489.70 20,488.73 -2330663.417 11,486.11 266123.7334 20,583.86 220334.3761
Equipment (Flat iron) -50,107.33 20160.59434 20159.53774 -2717540.148 9371.804878 44701.86591 19963.28302 -51584.63273
Acc. Dep (Flat iron) -59,275.07 9,167.75 19831.48585 19830.34434 -3104416.879 7257.49531 -176720.0016 19342.70755 -323503.6416
Furnitures & Fixtures -68,442.82 19502.37736 19501.15094 -3491293.61 5143.185741 -398141.8692 18722.13208 -595422.6504
Acc. Dep (Furnitures & Fixtures) -77,610.57 9,167.75 19,173.27 19,171.96 -3,878,170.34 3,028.88 -619,563.74 18,101.56 -867,341.66
Supplies 219,500.00 -5,936,602.18 -4,265,047.07 -840,985.60 -1,139,260.67
Total Assets 2,604,416.48 3,393.914.10 -783,156.49 -1,062,407.47 -1,411,179.68

Table 6

PROJECTED STATEMENT OF CASH FLOW

16
Projected Cash Flow
Lava Dami
Cash Flow
For the years ended 2019-2023

2019 2020 2021 2022 2023

Cash Flow from Operating Activities
Cash Received from Customer 1,482,190.00 1,630,409.00 1,793,499.90 1,972,844.89 2,170,129.38
Payment for Rent 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Payment for Repair and Maintenance 20,000.00 20,000.00 25,000.00 25,000.00
Payment for Salaries and Wages 702,000.00 702,000.00 702,000.00 702,000.00 702,000.00
Payment for Supplies 219,500.00 219,500.00 219,500.00 219,500.00 219,500.00
Payment for Taxes and Licenses 3,010.00 5,718.29 5,709.12 5,699.03 5,687.93
Payment for SSS Contribution Expense 48,944.50 48,944.50 48,944.50 48,944.50 48,944.50
Payment for PHIC Contribution Expense 6,435.00 6,435.00 6,435.00 6,435.00 6,435.00
Payment for HDMC Contribution Expense 12,870.00 12,870.00 12,870.00 12,870.00 12,870.00
Payment for SSS Payable 23,380.50 23,380.50 23,380.50 23,380.50 23,380.50
Payment for PHIC Payable 6,435.00 6,435.00 6,435.00 6,435.00 6,435.00
Payment for HDMC Payable 12,870.00 12,870.00 12,870.00 12,870.00 12,870.00
Payment for Utilities 264,000.00 264,000.00 264,000.00 264,000.00 264,000.00
Net Cash from Operating Activities 62,745.00 188,255.71 351,355.78 525,710.86 723,006.45
Cash Flow from Investing Activities
Purchase of Equipment 605,685.00 102,895.00 101,895.00
Purchase of Furnitures & Fixtures 10,000
Net Cash provided from Investing Activities 615,685.00 102,895.00 101,895.00
Cash Flow from Financing Activities
Cash Investments from Partners 2,800,000.00 3,001,213.27 3,202,426.54 3,403,639.81 3,604,853.08
Cash Withdrawal by the Partners
Net Cash from Financing Activities 2,800,000.00 3,001,213.27 3,202,426.54 3,403,639.81 3,604,853.08
Add: Net Income 136,912.30 274,608.10 493,455.28 578,106.74 807,463.28
2,999,657.30 3,464,077.08
Cash Balance 2,383,972.30 3,275,821.37 3,944,342.60 4,507,457.41 5,033,427.81

Table 7

PROJECTED STATEMENT OF CHANGES IN OWNERS EQUITY

17
Projected Statement of Changes in Equity
Lava Dami
Statement of Partner's Equity
For the year ended 2019-2023
2019 2020 2021 2022 2023
Beginning Capital, Jan.
Banaga, A 1,400,000.00 1,468,456.15 1,605,760.17 1,852,487.84 2,141,541.22
Net Income 68,456.15 137,304.05 246,727.64 289,053.37 403,731.65
Withdrawal
Ending Capital, Dec. 1,468,456.15 1,605,760.20 1,852,487.81 2,141,541.22 2,545,272.87

Projected Statement of Changes in Equity

Lava Dami
Statement of Partner's Equity
For the year ended 2019-2023
2019 2020 2021 2022 2023
Beginning Capital, Jan.
Castigador, D 1,400,000.00 1,468,456.15 1,605,760.17 1,852,487.84 2,141,541.22
Net Income 68,456.15 137,304.05 246,727.64 289,053.37 403,731.65
Withdrawal
Ending Capital, Dec. 1,468,456.15 1,605,760.20 1,852,487.81 2,141,541.22 2,545,272.87

H. Socio Economic Feasibility Summary

Employment Possibilities.

18
Definition and Nature of the Work
Laundry workers take part in the washing, drying, and ironing of clothes and other fabric items.
Most laundry workers are employed by commercial laundries, which may be independent plants
or parts of large institutions, such as hospitals or hotels. Some laundry workers are employed by
firms that specialize in renting and cleaning uniforms, diapers, towels, or other linens. A few
laundry workers have their own businesses.

There are several different kinds of jobs in the laundry business. Route workers pick up soiled
clothing and linens at customers' homes. Sometimes they try to solicit new customers along their
routes. They also deliver clean laundry, bill customers, and collect money. Counter clerks
receive soiled linens and clothing from customers, give back clean laundry, and collect payments
from customers. Markers or sorters tag and mark the soiled clothing and linens so that they can
be returned to the appropriate customer. They usually remove loose buttons and mark items that
need to be mended.

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, 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.

Finisher’s fold and press the clean, dry laundry. Some finishers specialize in flat-work, such as
sheets and tablecloths. When requested, they press the flatwork using special ironing machines.
They also may just fold and stack sheets, towels, diapers, or other flatwork. 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.

Education and Training Requirements

In most cases there are no educational requirements for laundry workers though employers may
require a high school diploma. Most workers learn on the job. Some jobs, such as flatwork
folding, take only a few days to learn. It may take several weeks to learn to be a marker,
inspector, or assembler. Some employers prefer high school graduates for jobs as managers and
supervisors.

Getting the Job

Interested candidates can get a job by applying directly to a laundry. They can also check the
classifieds in newspapers and Internet job banks. State and private employment agencies can also
give job information.
19
Working Conditions
Laundry workers generally work forty hours a week. Modern laundries are usually clean and
well lighted, but they are generally noisy, hot, and humid. Laundry jobs tend to be repetitious
and require workers to stand for long periods. There is some danger of injury from hot water,
irons, presses, and from lifting heavy loads of laundry. Some workers belong to unions.

Inspectors check the finished laundry. If it needs rewashing or repressing, they send it back to the
proper department. They send 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. Sometimes one person does more than one of these jobs. Other workers
employed in the laundry industry include office workers, plant managers, mechanics, sales
workers, and maintenance people.

Local Ordinance of Pagadian City for Business Owners

REPUBLIC ACT NO. 5478 - AN ACT CREATING THE CITY OF PAGADIAN

Sec. 28.    Legislative Powers. — Any provision of law and executive order to the contrary
notwithstanding, the City Board shall have the following powers:

To require property owners by ordinances to construct or repair, at their expenses, sidewalks

along the street or streets adjacent to their lots in accordance with the specifications of the city
engineer as to quality, width, and grade, and subject to his supervision and approval, providing
that, in case of failure or inability of the property owners to comply with the requirement within
a specified period of time after demand, the city engineer shall cause the work to be done and the
cost thereof collected as a special assessment from such owners, who may choose to pay the
same in full, or in ten equal yearly installments which shall be due and payable to the City of
Pagadian in the same manner as the annual tax levied on real estate, and shall be made subject to
the same penalties for delinquency, and enforceable by the same remedies, as such annual tax;
and all said sum and amounts, shall, from the day in which they were assessed constitute liens on
the property against which the same were assessed and shall take precedence over any and all
other liens which exist upon such property excepting only such as may have been attached as a
result of the non-payment of said annual tax.

National Laws for Business Owners/Entrepreneurs

REPUBLIC ACT No. 5455

20
An Act to Require that the Making of Investments and the Doing of Business Within the
Philippines by Foreigners or Business Organizations Owned in Whole or in Part by Foreigners
Should Contribute to the Sound and Balanced Development of the National Economy on a Self-
Sustaining Basis, and for Other Purposes.

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Definitions and scope of this Act.— (1) As used in this Act, the term "investment"
shall mean equity participation in any enterprise formed, organized or existing under the laws of
the Philippines; and the phrase "doing business" shall include soliciting orders, purchases,
service contracts, opening offices, whether called "liaison" offices or branches; appointing
representatives or distributors who are domiciled in the Philippines or who in any calendar year
stay in the Philippines for a period or periods totaling one hundred eighty days or more;
participating in the management, supervision or control of any domestic business firm, entity or
corporation in the Philippines; and any other act or acts that imply a continuity of commercial
dealings or arrangements, and contemplate to that extent the performance of acts or works, or the
exercise of some of the functions normally incident to, and in progressive prosecution of,
commercial gain or of the purpose and object of the business organization.

This Act shall not apply to banking institutions which are governed and regulated by the
General Banking Act and other laws.

Section 2. Permitted Investments. — (1) Without need of prior authority anyone not a Philippine
national as that term is defined in Section three of the Investment Incentives Act, and not
otherwise disqualified by law, may invest:

(a) In any enterprise registered under the Investment Incentives Act, to the extent
that the total investment of non-Philippine nationals therein would not affect its
status as a registered enterprise under that law.

(b) In any enterprise not registered under the Investment Incentives Act, to the
extent that the total investment of non-Philippine nationals therein shall not
exceed thirty percent of the outstanding capital of that enterprise, unless existing
law forbids any non-Philippine ownership in the enterprise or limits ownership by
non-Philippine nationals to a percentage smaller than thirty per cent.

(2) Within thirty days after notice of the investment received by it, the enterprise in which
any investment is made by a non-Philippine national shall register the same with the
Board of Investments for purposes of record. Investments made in the form of foreign
exchange or other assets actually transferred to the Philippines shall also be registered
with the Central Bank. The Board shall assess and appraise the value of such assets other
than foreign exchange.

Section 3. Permissible Investments. — If an investment by a non-Philippine national in an

enterprise not registered under the Investment Incentives Act is such that the total participation
by non-Philippine nationals in the outstanding capital thereof shall exceed thirty per cent, the

21
enterprise must obtain prior authority from the Board of Investments, which authority shall be
granted unless the proposed investment

(a) Would conflict with existing constitutional provisions and laws regulating the degree
of required ownership by Philippine nationals in the enterprise; or

(b) Would pose a clear and present danger of promoting monopolies or combinations in
restraint of trade; or

(c) Would be made in an enterprise engaged in an area adequately being exploited by

Philippine nationals; or

(d) Would conflict or be inconsistent with the Investments Priorities Plan in force at the
time the investment is sought to be made; or

(e) Would not contribute to the sound and balanced development of the national economy
on a self-sustaining basis.

Investments made in the form of foreign exchange or other assets actually transferred to the
Philippines shall also be registered with the Central Bank. The Board shall assess and appraise
the value of such assets other than foreign exchange.

Section 4. Licenses to do business.— No alien, and no firm, association, partnership, corporation

or any other form of business organization formed, organized, chartered or existing under any
laws other than those of the Philippines, or which is not a Philippine national, or more than thirty
per cent of the outstanding capital of which is owned or controlled by aliens shall do business or
engage in any economic activity in the Philippines, or be registered, licensed, or permitted by the
Securities and Exchange Commission or by any other bureaus, office, agency, political
subdivision or instrumentality of the government, to do business, or engage in any economic
activity in the Philippines, without first securing a written certificate from the Board of
Investments to the effect;

(1) That the operation or activity of such alien, firm, association, partnership, corporation
or other form of business organization is not inconsistent with the Investments Priorities
Plan;

(2) That such business or economic activity will contribute to the sound and balanced
development of the national economy on a self-sustaining basis;

(3) That such business or economic activity by the applicant would not conflict with the
Constitution or laws of the Philippines;

(4) That the field of business or economic activity is not one that is being adequately
exploited by Philippine nationals; and

22
 (5) That the entry of applicant therein will not pose a clear and present danger of
promoting monopolies or combinations in restraint of trade.

Upon granting said certificate, the Board shall impose the following requirements on the alien or
the firm, association, partnership, corporation or other form of business organization that is not
organized or existing under the laws of the Philippines

(1) To appoint a citizen of the Philippines, of legal age, good moral character and
reputation, and sound financial standing, as resident agent, who shall be authorized to
accept summons and other legal process in behalf of the applicant;

(2) To establish an office in the Philippines and to notify the Securities and Exchange
Commission in writing of the applicant’s exact address and of every contemplated
transfer thereof or of the opening of new offices, at least fifteen days before the same are
to be effected; and once effected, not later than ten days afterwards;

(3) To bring assets into the Philippines to constitute the capital of the office or offices, of
such kind and value as the Board may deem necessary to protect those who may deal
with the applicant, and to maintain that capital unimpaired during the period it does
business in the Philippines;

(4) To present prior proof that citizens of the Philippines and corporations or other
business organizations organized or existing under the laws of the Philippines are allowed
to do business in the contrary or individual state within a federal country of which
applicant is a citizen or in which it is domiciled: Provided, However, That if the state or
country of domicile of the applicant imposes on, or requires of, Philippine nationals other
conditions, requirements or restrictions besides those set forth in this Act, the Board of
Investments shall impose the said other conditions, requirements or restrictions on the
applicant if, in its judgment, the imposition thereof shall foster the sound and balanced
development of the national economy on a self-sustaining basis;

(5) To submit to the Securities and Exchange Commission certified copies of applicant’s
charter and by-laws and all amendments thereto, if any, with their translation into an
official language within twenty days after their adoption or after the grant of the
prescribed certificate by the Board of Investments; and annually, of applicant’s financial
statements showing all assets, liabilities, and networth and results of operations, setting
out separately those pertaining to the branch office;

(6) To keep a complete set of accounting records with the resident agent, which shall
fully and faithfully reflect all transactions within the Philippines, and to permit inspection
thereof by the Securities and Exchange Commission, the Bureau of Internal Revenue, the
Board of Investments and, if a corporation, by the officers mentioned in Section fifty-four
of the Corporation Law;

23
 (7) To give priority to resident creditors as against non-resident creditors and owners or
stockholders in the distribution of assets within the Philippines upon insolvency,
dissolution or revocation of the license;

(8) To give the Securities and Exchange Commission at least six months advance notice
in writing of applicants’ intention to stop doing business within the Philippines; and to
give such public notice thereof as the Securities and Exchange Commission may require
for the protection of resident creditors and others dealing with the applicant; and

(9) Not to terminate any franchise, licensing or other agreement that applicant may have
with a resident of the Philippines, authorizing the latter to assemble, manufacture or sell
within the Philippines the products of the applicant, except for violation thereof or other
just cause and upon payment of compensation and reimbursement of investment and
other expenses incurred by the licensee in developing a market for the said
products: Provided, However, That in case of disagreement, the amount of compensation
or reimbursement shall be determined by the court where the licensee is domiciled or has
its principal office who shall require the applicant to file a bond in such amount as, in its
opinion, is sufficient for this purpose.

The above requirement shall be in addition to those set forth in the Corporation Law, as
amended, for licensing foreign corporations and a violation of any of these requirements shall be
sufficient cause to cancel a license or permit issued pursuant to this Act: Provided, However,
That this section shall not apply to aliens or foreign firms, associations partnerships, corporations
or other forms of business organization not organized or existing under the laws of the
Philippines who may lawfully have been licensed to do business in the Philippines prior to the
effectivity of this Act; Provided, further, That where the issuance of said license has been
irregular or contrary to law, any person adversely affected thereby may file an action with the
Court of First Instance where said alien or foreign business organizations resides or has its
principal office to cancel the said license. In such cases, no injunction shall issue without notice
and hearing; and appeals and other proceedings for review shall be filed directly with the
Supreme Court.

Section 5. Mergers and Consolidations. — The provisions of this Act shall apply to any merger,
consolidation, syndicate or any other combination of firms, associations, partnerships or other
forms of business organization that will result in ownership or control by persons or entities that
are not Philippine nationals of more than thirty per cent of the capital of whatever organization
results from the merger, consolidation, syndicate or other combination.

Section 6. Local Government Action. — No agency, instrumentality or political subdivision of

the Government shall take any action in conflict with or which will nullify the provisions of this
Act, or any certificate or authority granted thereunder.

Section 7. Publication and Posting of Notices.— Immediately after the filing of any application
under this Act, the Secretary of the Board of Investments shall publish the same at the expense of
the applicant once a week for three consecutive weeks in the Official Gazette and in one of the
newspapers of general circulation in the province or city where the applicant has its principal

24
office and post copies of said application in conspicuous places, in the office of the Board of
Investments or in the building where said office is located, setting forth in such copies the name
of the applicant, the business in which it is engaged or proposes to engage or invest, and such
other data and information as may be required by the Board of Investments. No approval or
certificate shall be valid without the publication and posting of notices as herein provided.

Section 8. Judicial Relief. — From any decision of the Board of Investments under this Act, or
from the failure of the Board of Investments to act on any application within sixty days from the
date of final publication of the application, the applicant or any person adversely affected thereby
may seek judicial relief in the Court of First Instance of Manila.

Section 9. Rules and Regulations. — The Board of Investments shall promulgate such rules and
regulations as may be necessary to enforce the intent and provisions of this Act. The rules and
regulations shall take effect thirty days after their publication in the Official Gazette and in two
(2) newspapers of general circulation in the Philippines.

Section 10. Penal Clause.— Any violation of this Act or of the requirements for a license to do
business within the Philippines shall be punished with a fine of not less than ten thousand pesos
and not more than twenty-five thousand pesos and imprisonment of not less than five years and
not more than ten years.1avvphi1 If the violation is committed by a corporation or association,
the penalty shall be imposed upon the president, director or directors, manager, managing
partner, or other official thereof responsible for such violation. Any alien violating or responsible
for the violation of this Act shall, upon completion of the service of sentence, be deported
without any further proceedings on the part of the Deportation Board. Any government official
or employee who aids, abets or connives with any person in violating this Act shall, in addition
to the penalty which may be imposed upon him as a principal, be perpetually disqualified from
holding any public office.

Section 11. Separability Clause. — If any part or section of this Act is declared unconstitutional
for any reason, whatsoever, such declaration shall not in any way affect the other parts or
sections of this Act.

Section 12. Repealing Clause. — All laws or parts of laws inconsistent herewith are hereby
repealed or modified accordingly.

Section 13. Appropriation. — The sum of one million pesos or so much thereof as may be
necessary, out of any funds in the National Treasury not otherwise appropriated, is hereby
authorized to be appropriated to carry out the provisions of this Act.

Section 14. Effectivity. — This Act shall take effect upon approval.

25
ENVIRONMENTAL SAFETY MEASURES

STORE LAUNDRY PRODUCTS CAREFULLY FOR SAFETY.

 Keep laundry products out of reach of children and pets, especially liquid laundry
packets.
 Remember to keep products in their original container with the original label intact and
immediately put them away in a secure location after use.

PAY ATTENTION DURING USE.

 Read and follow all recommended instructions on a laundry product prior to use.
 Never combine laundry detergents with ammonia because some chemical mixtures may
release irritating gases.
 Remember to clean up any spills, and immediately wash your hand and any items used to
dispense or measure products.
 Always close the laundry detergent container, box, bottle or pouch immediately after use.

DISPOSE OF PRODUCTS PROPERLY.

 To protect children, pets, and garbage handlers, remember to rinse and re-cap the bottle
before throwing away or recycling.
 Never use empty detergent containers for storage of any other materials, especially
anything intended for human consumption.
KNOW WHAT TO DO.

 Laundry product labels contain first aid information and are a valuable resource for
consumers. 
 Familiarize yourself with product labels and know where the safety information is
located on the label. Know what to do before unintended exposure happens. 
 To ensure the safety of the workers, cleaning product manufacturers work in close
partnership with the Poison Control Centers to share information about products on a
routine basis.

26
 Chapter 2
Introduction to Study

A. Brief Background of the Study

The proponent’s pre-operation plan for this project is providing complete washing,
drying, and optional folding services when business is up and running. In order to address the
demand for convenient access for the community, proponents will also offer high-quality items
to guarantee clean laundry. Dedication to provide expert, amiable, fast, and most importantly
convenient services set Lava Dami Laundry Shop apart from the competitors. The proponent’s
funds are contributed by the business partners in planning this business. Before making this
project the proponents under and make sure to investigate the target market which where to
verify the business is going to build. Furthermore, the proponents are implementing a timetable
since it sets out the milestones of the proponent’s business plan for the whole process and the
number of employees, number of locations, sales targets, net revenue expected and other targets
that indicates what date are expected to be reached.
Setting goals and objectives is the priorities and productivity of this business is being focused
and also, proponent’s pre-operational plan for this project as going face the future problems is
deliberated by the partners owners and employees which being center of attention on the market
strategy and continued to engage in different studies to render ideas and knowledge in business
entity. The proponents are aware of risk that the business may encountered in near future. The
proponents list all the possible risk, problem and study all the aspects and consequences which
the business may face.
In making this project the operational plan before this business decided the following is an
operation plan for Lava Dami Laundry Shop. The business intends to get and gain more
customers. The accompanying operational plan shows all the key details pertaining to the
strategic objective to earn more trust to customers.

 Strategy: Get more customers

 Action: offer more discounts and promotion
 Goal: To earn the trust of the customer and gain profit and stable market
 Resources: flyer, advertising
 Date: First quarter

27
B. Objective of the Study
Financial Goals
Revenue
Maintenance of Equipment 70,000
Insurance 10,000
Tax 20,000
Rent 100,000
Electric & Water Bill 60,000
315,000
Net Income 885,000

Non- financial Goals

The proponents able to make an employment opportunity includes: first, employee
promotion, in this opportunity the worker may able to get a higher rank which it involves an
increase in salary, position, responsibilities, status, and benefits. This job drives employees the
most the ultimate reward for dedication and loyalty towards a business and training the worker
will do a training and webinar session with a mentorship for free, in whole process of
employment. Second, employee benefits which a compensation provided to employees by the
business in addition to their normal salaries or wages. These benefits may include insurance
(health, dental, life). Third, education if the employee is still studying the laundry shop
organization will cater the educational support of the worker until graduated. Lastly, incentives
and salary increase. In this opportunity the business will do employment which they are able to
know and to investigate the loyal and responsible employee with corresponding incentives and
increase in salaries. The employee may get a bonus that is given before Christmas (14month
pay).
In this business the proponents are going make a legal document that will able to help and
create a labor related payments or contributions which any of the business or its subsidiaries is
required to pay, withhold or collect. The workers will have a social contribution like (health, life,
tax and dental insurances). Employers’ actual social contributions are paid by employers to
social security schemes and other employment related social insurance schemes to secure social
benefits for their employees. Employers’ actual social contributions correspond to flow. As
employers’ actual social contributions are made for the benefit of their employees, their value is
recorded as one of the components of compensation of employees together with wages and
salaries in cash and in kind. The social contributions are then recorded as being paid by the
employees as current transfers to the social security schemes, and other employment related
social insurance schemes.

28
C. Scope and Limitation

Laundry businesses are prevalent throughout the nation, and there is a lot of room for
growth and additional services as the industry evolves. While this industry is a lucrative one,
there are some inherent risks that go along with owning and operating a laundry business. The
proponents are aware of the possible risk encountered in the operation of the business including
the most expected high risk which is the high utility bills where the proponent’s business uses a
lot of electric and water. To add on, also the machines and equipment malfunction this happens
significant risk for proprietors of coin-operated laundry businesses is equipment breakdown. The
price of repairing and replacing washing machines and dryers can be prohibitive, especially if it
must be done out of pocket, whether a customer disregarded warning indication, misused the
equipment, or the machines are simply experiencing normal wear and tear. As per coin operated
one of the business risks may encountered is the cash management which business rely on
quarters to start machines. Therefore, these must lug around a lot of cash to the bank each day,
which raises some security concerns. Money handling procedures are a huge priority here,
especially for transportation to and from banks and overnight security.

D. Definition of Terms
Asset - is a resource with economic value that an individual, corporation, or country owns or
controls with the expectation that it will provide a future benefit .
Accounts Payable - is the money a company owes its vendors, while accounts receivable is the
money that is owed to the company, typically by customers. When one company transacts with
another on credit, one will record an entry to accounts payable on their books while the other
records an entry to accounts receivable.
Balance sheet - A snapshot of your business’s financial condition at a single point in time, it
shows what you own (your assets) vs. what you owe (your liabilities). The difference between
the two is often used as a starting point for valuing a business.
Cash flow statement: Also called a statement of cash flows, this report shows changes to the cash
coming in and out of your business over a period of time. It only records cash (which may not be
all of your income), and includes amounts received from lenders and investors. A cash flow
statement shows whether you can cover short term expenses like bills and payroll.
Credit -is the trust which allows one party to provide money or resources to another party
wherein the second party does not reimburse the first party immediately but promises either to
repay or return those resources at a later date. 
Debit - means an entry recorded for a payment made or owed.

29
Depression Expenses - is the amount deducted from gross profit to allow for a reduction in the
value of something because of its age or how much it has been used When you buy and own
equipment, your business may be entitled to deduct a depreciation expense.
Financial statement - is a report that shows the financial activities and performance of a business.
It is used by lenders and investors to check a business’s financial health and earnings potential.
Rent Expenses - is the cost a business pays to occupy a property for an office, retail space,
storage space, or factory. For a retail business, rent expense can be one of its biggest operating
expenses along with employee wages and marketing costs.
Partnership - is an arrangement where parties, known as business partners, agree to cooperate to
advance their mutual interests.
Profit and loss statement: Also called an income statement, this report shows your business’s
revenues and expenses. Expenses are subtracted from revenues to show your business’s profit or
loss figure, also known as net income.
Statement of changes in equity: Also called a statement of owner's (or shareholder’s) equity, or
statement of retained earnings, this report shows how much money your business keeps (rather
than pays out to shareholders or owners). Often, these retained earnings are used to make debt
payments or are reinvested in the business.
Utilities Expenses- is the cost incurred by using utilities such as electricity, water, waste
disposal, heating, and sewage. The expenses are incurred over the course of the reporting period,
calculated, and accrued for, or payment is rendered.

30
 Chapter 3
Marketing Study

A. Demand Analysis
Demand
Over the 5 the years, the population is going higher and higher and the percentage of
those who are willing to laundry their clothes is 65%. The Lava Dami Laundry Shop projected
demand in kilo is the target market basis where the estimated minimum no. of kgs is calculated.
Table 8.

Percentage Target
Estimated Projected
of those who
Year Population Market
are minimum demand in
are willing no. of kgs. kilo

2019 14,780 65% 9,607 200 1,921,400

2020 15,006 65% 9,753.90 200 1,950,780
2021 20,981 65% 13,637.65 200 2,727,530
2022 21,200 65% 13,780 200 2,756,000
2023 23,519 65% 15,287.35 200 3,057,470

Major Consumers of the Project

The major consumers of the project are the students, government & private employees
and residence of the area that has not enough time to wash their own and family clothes
especially when they have hectic schedule.
The table below shows the breakdown of a total demand over the past 5 years 
Total Amount of Service Item per Category in the Past 5 years
Consumers Category 2018 2019 2020 2021 2022
Employed 300,000 320,000 394,000 395,000 395,000
Unemployed 421,000 400,000 593,000 595,000 595,000
Household 600,000 600,780 790,530 795,000 795,000
Student 600,400 630,000 950,000 971,000 971,000
Total: 1,921,400 1,950,780 2,727,530 2,756,000 2,756,000

31
Projected Demand
The proponent creates a survey questionnaire contains of 4 questions which will be given
to the sampling size of 50 respondents to get the viability of putting up the Lava Dami Laundry
Shop in Pagadian City area.
a. What laundry services would you avail?
Self-Services Drop-off services
According to the findings of the proponent as shown in the graph below, out of 50 respondents
80% prefer to do drop-off services, 20% chooses self-service.

20%

80%

Drop-Off Service Self Service

b. Do you do your own laundry?

Market research findings of the proponents is shown in the graph below, 90% out of 50 is do
their own laundry which in category of students and household and 10% are those employees
who don’t have time for their laundry.
Yes No

10%

90%
32

Yes No
c. Where do you do your laundry?

At home
At apartment
I
Laundry Shop

30%

50%

20%

At Home At Apartment Building

At Laundry Shop
The proponent’s findings in response to the question 50% doing their laundry at home in category of
students and unemployed, 30% is at apartment buildings which students who are away from their home
and the 20% remaining is in laundry shop.

d. How often do you use laundry services?

3 times a week or less
4-6 times a week
Everyday
After the results of the survey, the total amount of demand calculated by the proponent
clearly increased from the previous 5 years. The proponent forecasts that, over the next 5 years,
the company's operations will increase by 77% total amount of demand as shown in the table
below.

Projected Total Demand in the Next 5 year

Consumer's Category 2018 2019 2020 2021 2022
Household 250,000 450,000 500,000 595,000 600,000
Unemployed 350,000 650,000 670,000 683,000 694,089
Student 450,000 750,000 780,000 935,125 991,110
Employed 550,000 850,000 950,000 1,280,105 2,256,000
Total: 1,600,000 2,700,000 2,900,000 3, 493,230 4,541,199

33
B. Supply Analysis
Supply for the Past 5 years
Table 9 shows the supply of Laundry Shops in Barangay Balangasan, Pagadian City
for the past five (5) years. The data have been derived from the sum of supplies from
existing indirect competitors.
Table 9
Year No. of service rendered in kilo
2019 3,552,588
2020 3,614,208
2021 3,678,636
2022 3,746,028
2023 3,814,980

Table 10 shows the projected supply of a Laundry Service for the next five years. The
data was derived with the use of Statistical Straight-Line Method to project future values.
Table 10. Supply of Laundry Service in Barangay Balangasan, Pagadian City for the next 5 years
Year No. of Service Rendered
2019 3,878,316
2020 3,993,992
2021 4,009,668
2022 4,075,188
2023 4,140,864

Table 11 shows the projected gap of a Self-Service Laundry Shop in the next five (5)
years. The gap was formulated by subtracting the projected demand in Table 5 and projected
supply in Table 10.
Table 11. Projected Gap of Laundry Shop
Year Demand Supply Gap
2019 1,921,400 3,552,588 1,631,188
2020 1,950,780 3,614,208 1,663,428
2021 2,727,530 3,678,636 951,106
2022 2,756,000 3,746,028 990,028
2023 3,057,470 3,814,980 757,510

34
 Table 12 shows the projected market share of the business. The data was derived from
attaining the maximum capacity of the business which is 10,950 kilograms annually and
divided it to the projected gap.
Table 12. Market Share of the Laundry Shop

Year Gap (kgs.) Market Share (kgs.) % Of Market Share

2019 1,631,188 10,950 0.67
2020 1,663,428 10,950 0.65
2021 951,106 10,950 1.15
2022 990,028 10,950 1.1
2023 757,510 10,950 1.44

Table 13 shows the projected Sales Volume and Pes o Sales of the
proposed business. The price per kilogram which is 95 Php was multiplied to the market share
of the business which is 10,950 kilograms annually. The price will have an annual increase
of 5%.
Table 13. Projected Sales Volume and Peso Sales

Year Price (Php) Market Shares (kgs) Annual Total Income (Php)
2019 95 14,600 1387000
2020 99.75 14,600 1456350
2021 104.74 14,600 1529204
2022 112.98 14,600 1649508
2023 118.63 14,600 1731998

Marketing Strategies and Programs

1. Laundry Service Offered:
1. Insert coin - Wash- Dry
2. Insert coin - Wash- Dry- Pick-up
3. Insert coin -Wash – Dry - Fold
4. Insert coin – Wash - Dry – Deliver
5. Insert coin – Wash - Dry – Fold -Deliver
The coin-operated washing and drying machines offer a self-service style of laundry
wherein people may be walk-in to the laundry shop, weigh their clothes, load it in the machine,
add some detergent and fabric softener, insert the coin and press start and offer special wherein
you can drop by your clothes and let the staff operate and clean it for you in which this is the
goal of the Laundry Service.
35
2. Price

Wash- Dry Wash- Dry- Pick-up Wash – Dry - Fold

(Per Kilo) (Per Kilo) (Per Kilo)

White Clothes P22.00 White Clothes P23.00 White Clothes P25.00

Colored Clothes P20.00 Colored Clothes P20.00 Colored Clothes P22.00
Jeans P25.00 Jeans P25.00 Jeans P28.00
Bedsheets P30.00 Bedsheets P30.00 Bedsheets P32.00

Wash - Dry – Deliver Wash - Dry – Fold -Deliver 5 Peso Coin

(Per Kilo) (Per Kilo) (Per min)

White Clothes P25.00 White Clothes P28.00 15 mins. P 10.00

Colored Clothes P22.00 Colored Clothes P25.00 30 mins. P 15.00
Jeans P28.00 Jeans P30.00 45 mins. P 20.00
Bedsheets P40.00 Bedsheets P40.00 60 mins. P 25.00

3. Promotion and Advertising

1. Grand Opening or Ribbon Cutting
The partners will coordinate with a local event coordinator to organize the
launching of the business. This is one of the most effective ways in attracting customers and
making them aware that we’re “Open”. The expenses for the grand opening will be shoulders by
the partners from their personal funds.
2. Light Signage
This is s common way to direct customers to your shop. It must be clearly
readable and recognizable from the street so that customers will easily identify and find your
business place. The lighting is important during night hours. According to business ph., a
common sized signage costs around Php 1,350.00 including the electrical works and light.
3. Leaflets and Flyers
This will include the information such as the services offered, price list, company
address and contact number, business hours and business slogan. The design will be personally
done by the partners and the total amount of Php 2, 650.00 will be allotted for the printing and
distribution of the leaflets and flyers.

36
4. Coupons
To help drive business during its slowest periods of the year, free wash or dry
coupons can be offered to entice customers to try our services for the first time or for customers
to come back and try our services again, the coupons that will be offered are mostly “Free Dry”
coupons. A total amount of Php 4,500.00 coupons will be given to deserving customers and
accounted for as promotional expenses.
4. Place and Distribution
 Location with lots of Traffic
 Street with a Low-Speed Limit
 Visible to passing drivers
 Store with glass frontage
 Plenty of available parking
5. Marketing Activities and Budgets
 Open Lava Dami Laundromat with an open house party.
 Advertise Lava Dami Laundromat on community newspapers, local TV stations and local
radio stations.
 Promote Lava Dami Laundromat online via our official website and all available social
media platforms.
 Position signage/flexi banners at strategic places.
 Create a loyalty plan that will enable to reward regular customers.

37
 Chapter 4

Technical Study

After having determined the market size and areas, product demand and growth, the
potential and technical feasibility of the project may be analysed. Technical aspect deals with the
allocation of resources that will be needed in order to satisfy the market. The technical soundness
analysis will be considered complete if all pertinent technical aspect of the project has been taken
into account in the analysis and if the planned construction or procurement conforms to accepted
standards and practices. The estimated cost of the project should be as low as any other
reasonably available alternate which would produce the intended results. The objective of this
aspect of the feasibility study is to determine to what extent the project meets the technical
soundness criteria. Prior to projecting technical feasibility, the technical requirements of the
project must be analysed.
A. Services Process
In this process of services of the proponents laundry shop is that The laundry process
typically consists of five stages: sorting, pre-treatment, washing, drying, and folding/ironing.

Soil Sorting
 Linen contained in soiled carts is sorted by classifications.
 Proper sorting and classification allows the soiled linen to be matched to best formula for
soil removal.
 Proper sorting reduces textile damage and extends the life cycle for soiled linens.
 All soiled carts are individually washed and sanitized using an EPA-registered sanitizer.
 All trucks containing soiled carts are individually washed using an EPA-certified
sanitizer.

38
Fig. 1: Basic process diagram of professional laundry service process.
Typical workflow of a laundry facility that consists of sub-operations of professional laundry
case process is as follows:
 Transport of dirty linen from a customer to the laundry -Laundry receipts, linen sorting
according to fibre and soil type.
 Washing (flushing, pre-washing, main washing, rinsing, finalizing) and water extracting
-Drying, sorting of flat linen and garments
 Finishing (ironing, pressing), folding -Linen repairing (needling) -Quality control,
packing, temporal storing
 Expedition, transport of clean linen back to customer

Washing
Washing in the bath is a core operation in laundry service process. Temperature of the
bath, mechanical work, and time and detergents effect are key factors to successful laundry
process. The so-called Sinner's diagram (see Fig. 3a) shows how these factors are all intertwined.
Considered decrease of temperature (see Fig. 3b) motivated by decrease of heat
consumption of bath has to be accompanied by increase of other factors (longer time of washing,
higher amount of detergents), should the process have similar washing effect. However, this may
result in decrease of productivity and/or increase of costs of detergents, and vice versa (see Fig.
3c).

39
Fig. 2: Sinner's diagram and example of interaction between the four main factors.

Drying

Water left in the linen after the washing process ended has to be eliminated. Residual
moisture evaporates during the process of drying and/or ironing. Steam, natural gas and electrical
energy are used as a source of heat in common operations. However. selection of heat source is
not simple. (Has-neated machines are more economical compared to steam-heated machines
thanks to reduction of operational costs related to steam system operations. On the other hand,
the gas- heated machine requires purchase and instalment of flue gas duct and subsequent
operation. This is more expensive compared to operation of common air duct of steam-heated or
electric-heated machine due to high standards for design quality (material, zero leakage) in das-
heated masons.
In addition, higher standards are also required by heat exchangers for heat recovery in
flue gas duct. Yet, heat recovery is one of the core measures of energy efficiency in drying
equipment. Opting for the best ratio among temperature - detergents - mechanical work time in
the washing process and opting for the best heat source for drying and ironing must always be
evaluated from the point of view of economical operation and environmental protection.

Finishing

 Clean, dried linen is placed in staging area depending on the classification of linen.
 Items that have been pre-conditioned by the dryer will proceed to flat work ironers
for a wrinkle free finish.
 Full dry items will be folded and stacked by small piece folders, blanket folders or fitted
sheet folders.
 As the linen is finished and stacked in bundles it is placed on a conveyor that delivers the
linen to be assembled in carts.
 Delivery carts are sanitized and lined with a new plastic cart liner before each job. The
cart liner is folded over to prevent contamination while being transported

40
B. Operational Area Concept and Layout

Fig. 3

C. Inventory Procurement Process

Fig. 4

41
Step 0: Needs Recognition

The needs recognition stage of a procurement process enables businesses to sketch out an accurate

plan for procuring goods and services in a timely manner and at a reasonable cost.

Step 1: Purchase Requisition

Purchase requisitions are written or electronic documents raised by internal users/customers seeking

the procurement team’s help to fulfill an existing need. It comprises key information that is required

to procure the right goods, services, or works.

Step 2: Requisition review

The procurement process will officially commence only after the purchase requisition is approved

and cross-checked for budget availability. In the review stage, functional managers or department

heads review the requisition package and double-check if there is a genuine need for the requested

goods or services and also verify whether necessary funding is available.

Approved purchase requests become POs, while rejected requests are sent back to the requisitioned

with the reason for rejection. All these can be handled with a simple purchase order software.

Step 3: Solicitation process

Once a requisition is approved and PO is generated, the procurement team will develop an

individual procurement plan and sketch out a corresponding solicitation process. The scope of this

individual solicitation plan depends ultimately on the complexity of the requirement.

42
Once the budget is approved, the procurement team forwards several requests for quotation (RFQ)

to vendors with the intention to receive and compare bids to shortlist the perfect vendor.

Step 4: Evaluation and contract

Once the solicitation process is officially closed, the procurement team in conjunction with the

evaluation committee will review and evaluate supplier quotations to determine which supplier will

be the best fit to fulfill the existing need.

Step 5: Order management

The vendor delivers the promised goods/services within the stipulated timeline. After receiving

them, the purchaser examines the order and notifies the vendor of any issues with the received

items.

Step 6: Invoice approvals and disputes

This is a crucial step in the procurement process and having procurement software

like Kissflow gives you a competitive edge over others. With Kissflow, you can perform three-way

matching between GRN, Supplier Invoice, and PO to check if you have received the order correctly

and if there aren’t any discrepancies. Once three-way matching is complete, the invoice is approved

and forwarded to payment processing.

Step 7: Record Keeping

After the payment process, buyers make a record of it for bookkeeping and auditing. All appropriate

documents right from purchase requests to approved invoices are stored in a centralized location.

43
D. Purchasing Schedule

Department: Time of Purchase: Company

Purchasing Projects Purchase Quantity Price General Buget Finish Time Supplier
Oikaiha Washing Machine 3 pcs 130,000.00 132,000.00 10/1/2022 Des Appliances located Alano branch, located at Alano St., Santiago Dist. Pagadian City
Honda Wave 110 1 pcs 56,990.00 60,000.00 10/1/2022 Honda Des – Pagadian City at Datoc Street
Exhaust Fan 2 pcs 5,500 5,000.00 10/1/2022 Citi Hardware at Balangasan , Rizal Avenue Pagadian City
Water Tank 1 pcs 10,000.00 10,000.00 10/1/2022 Des Appliances located Alano branch, located at Alano St., Santiago Dist. Pagadian City
Weighing Scale 1pcs 1,500.00 1,600.00 10/1/2022 BE ( Best Emporuim ) at Benigno Aquino Street, Pagadian City
Calculator 2pcs 150.00 150.00 10/1/2022 BE ( Best Emporuim ) at Benigno Aquino Street, Pagadian City
Water Hose 50ft. 1,500.00 1,500.00 10/1/2022 Citi Hardware at Balangasan , Rizal Avenue Pagadian City
Steamed Flat Iron 2pcs 750.00 750.00 10/1/2022 BE ( Best Emporuim ) at Benigno Aquino Street, Pagadian City
Dataworx Computer Set 1 set 11,879.00 12,000.00 10/1/2022 EMCOR at Rizal Avenue ,Pagadian City
Plastic Container 1pcs 500.00 500.00 10/1/2022 Cariaga at Jamisola Street , Pagadian City
Plain Black Cloth 1 sq. meter 100.00 100.00 10/1/2022 Cariaga at Jamisola Street , Pagadian City

44
E. Plants and Machineries Requirements
This section covers the different aspects of machineries and maintaining plant and
equipment in the workplace. Employers should consider how their workers use machinery and
have adequate maintenance arrangements in place to ensure it remains safe to use.
Description Supplier
Price: 130,000
Quantity
Des Appliances located
&
Model NO. HWMS08, Alano branch, located
Lifespan
at Alano St., Santiago
Power: 220-240 V/ 50/ Dist. Pagadian City
60Hz
5 pcs
Capacity: 8 Kg
10-14
Rated Current: 10 a
years
Spin Speed: 1000 Rpm
Heating Power: 1650 W
Cabinet Material: PCM
Inner Drum: Stainless
Steel
Spin Noisy: 71 dB(a)
Installation Size mm:
600*545*850
Package Size mm:
660*575*890
Net Weight: 62 Kg
Gross Weight: 67 Kg
Loading Capacity: "70
Units/
20′ FT 200 Units/ 40′
Hc"
Trademark: HITO
Transport Package
Carton: Specification
220-240 V/ 50 Hz
HS Code: 8450

45
Honda Wave 110
Price: 56,990 Honda Des – 1 pc
Pagadian City
Engine Type: 4-Stroke, 10 – 15 years
at Datoc Street
OHC, Air-cooled
Displacement; 109.16 cc
Bore & Stroke: 50.0 x
55.6 (mm)
Starting System: Electric
and Kick Starter
Ignition System: DC-CDI
Transmission Type:
Constant Mesh, 4-speed
Suspension (front)
Telescopic Fork
Suspension (rear): Twin
Brake Type (Front):
Mechanical Leading
Trailing
Brake Type (Rear):
Mechanical Leading
Trailing
Tire Size (Front) : 70/90
- 17 M/C 38P
Tire Size (Rear) : 80/90 -
17 M/C 50P
Wheel Type: Spoke
Wheelbase: 1,227 mm
Overall Dimensions: L x
WxH
1,897 x 706 x 1,092
(mm)
Dry Weight: 95 Kg

46
Seat Height: 765 mm
Ground Clearance: 135
mm
Fuel Tank Capacity: 3.7
L
Fuel System: Carburetor
(Euro 3)
Engine Oil Capacity:
Maximum Power
6.09 kW (8.28) @ 7,500
Maximum Torque: 8.46
N.m @ 6,000 rpm
Gear Shift Pattern:
Rotary Type / N-1-2-3-4

Water Tank Citi Hardware

at Balangasan
In case there will be Rizal Avenue
water disruption Pagadian City 1 pc
Price: 10,000.00 20 years

47
 Des
Appliances at
2 in 1 blower and suction 2 pcs
Rizal Street,
– 1/2hp, 200 watts, 20” x
Pagadian City 10 – 15 years
20”
Exhaust Fan
Php 5,500.00

BE (Best
Weighing Scale
Emporium) at
Benigno 1 pc
120 kilos
Aquino Street , 10 years
Php 1.500.00 Pagadian City

BE (Best
Emporium) at 2 pcs
Calculator
Benigno 3- 5 years
Php 150.00 Aquino
Street ,
Pagadian City

48
Water Hose Citi Hardware 50 ft.
at Balangasan
Php 1,500.00 3 – 5 years
Rizal Avenue
Pagadian City

Steamed Flat Iron BE (Best 2 pcs

Emporium) at
Php 750.00 Benigno 5 years
Aquino
Street ,
Pagadian City

Dataworx Budget EMCOR at 1 pc

Computer Set Rizal Avenue, 5 – 8 years
Php 11,879.00 Pagadian City

Plastic Container (For

1pcs
Filtration Process)
5 years
Php 100.00

49
 Black Cloth Cariaga Traders 1 sq. meter
Araullo Street,
Php 100.00 3 – 5 months
Pagadian City

F. Location of the Target Market and Competing Establish

In this figure, the geographic location of the market is seen were starting a laundry shop
is sure way to gain a profitable venture, especially in Balangasan District, Pagadian City, which
the population is booming and jobs are on the fly with no time for handling small weekly chores
such as cleaning clothes. People live in small spaces in which they cannot fit a washing machine
and the same can be said true as well as for apartment dwellers cramped up in a single bedroom.
Furthermore, the competing establish is figure out below. It is only one competitors with in the
area of the target market located at Tugas, Balangasan Pagadian City.

50
Figure 5: Target Market

Figure 6: Competitors Location

G. Utilities
This telephone utilities are used to contact
customers and services that will acquire and
inquire the proponent’s laundry shop.

51
 This garbage bin is used to throw up the waste
from the used detergents, fabric conditioner,
powder and to keep the area clean.

This utilities is used to filled up the laundry

machine, use to wash clothes and use to clean
up the equipments after use.

This is used to connect the desktop to check

the emails and inquires from the customers.

H. Waste Disposal

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.

52
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 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.

53
Step 6:
A layer of clean sand.

Step 7:
Test run.

54
I. Labor Requirement
The Lava Dami Laundry Shop daily labor requirements on different days of the week. The daily
labor requirement on each day is given in the following table.

The proponent’s laundry shop may meet the daily labor requirements by using both full-time
and part-time employees. During each week, a full-time employee works 8 hours a day for five
consecutive days, and a part-time employee works 4 hours a day for five consecutive days. A full-
time employee costs the laundry 40 per hour, whereas a part-time employee cost only 35 per hour.
Union requirements limit part-time labor to not more than 25% of weekly labor requirements.
Formulate an LP to determine a weekly schedule of its full-time and part-time employees that
minimizes the post office's weekly labor cost. Using What’s Best to solve the LP, we know that in
order to minimize weekly labor cost, the post office should hire ~ full- time employees and part-time
employees. Correspondingly, the minimal weekly.

55
J. Pre-operating schedule

Pre-
Operating
September October November December January
Activities

Conduct
business plan

Conducted
Feasibility
Study

Investment
of the
proponents

Search for
the Supplier

Contact the
Supplier

Business
Start Up

Table 14. Shows the list of pre-operating activities in and its corresponding months starting on
November 2022 up to January 2023. The proponents decided this schedule together.

56
Conducted Business Plan
The proponents will use its business plan conducted in the first month of the pre-
operating activities to be able to assess all the possible business opportunity and if the company
is ready to start a business.
Conducted Feasibility Study
On the same month of the company pre-operating activities is the conducted of feasibility
study. It is to ensure that the business venture is viable and to identify those opportunity that can
lead to its success.
Investment of the Proponents
After determining that there is possibility for the business to start in the first month of the
pre-operating activities. The proponents will invest on the month of November.
Search for the Supplier
In month of December the proponents well look for better supplier for the materials,
equipment machineries to use for building the business.
Contact Supplier
On the same when the proponents able to search a supplier and next is that would be
necessary to contact them, make a phone call and simply tell you want to partner with them.
Business Start
In this schedule, the proponents is starting the business where there is a blessing and
cutting of ribbons.

57
 Chapter 5
Management Study

This chapter provides information about the management aspect of the business. In
essence, it demonstrates the type of ownership that the company has. This covers the
management style for the company, issues relating to control and supervision, and even
the startup costs. Additionally, it will inform you of the fundamental needs and steps
involved in setting up a business, as well as information pertaining to the government
organizations that will be involved in the business's management and success. Therefore,
a crucial topic in this chapter will be the analysis of the proponents, key players, and
manpower requirements. This chapter will also cover business culture, which involves
the daily monitoring routine.
A. Form of Business Organization
The business will be partnership:
 Manage
 Control
 Supervise
 Start Up cost
A partnership can be advantageous for both business partners involved but it is least
expensive than other business one of the advantage of partnership includes : Bridging
the Gap in Expertise and Knowledge. Partnering with someone can give you access to a
wider range of expertise for different parts of your business. A good partner may also
bring knowledge and experience you may be lacking, or complementary skills to help
you grow the business. More Cash. A prospective partner can bring an infusion of cash
into the business. The person may also have more strategic connections than you do.
This may help your company attract potential investors and raise more capital to grow
your business. The right business partner may also enhance your ability to borrow
money to finance the growth of the business. It helps to keep these money issues in
mind as part of the criteria in evaluating a potential partner. Cost Savings. Having a
business partner can allow you to share the financial burden for expenses and capital
expenditures needed to run the business. This could result in more substantial savings
than by going it alone.

58
More Business Opportunities .One of the advantages of having a business partner
is sharing the labor. Having a partner may not only make you more productive, but it may
afford you the ease and flexibility to pursue more business opportunities. It might even
eliminate the downside of opportunity costs. Opportunity costs are potential advantages
or business opportunities that you may be forced to let go while you pursue other
avenues. After all, as a one-person band, you have to decide where you choose to focus
your time and talents. A partner who shares in the labor may free up time to explore more
opportunities. Better Work/Life Balance. By sharing the labor, a partner may also lighten
the load. It may allow you to take time off when needed, knowing that there's a trusted
person to hold down the fort. This can have a positive impact on your personal life.

Moral Support. Everyone needs to be able to bounce off ideas or debrief on important
issues. And we may need moral support when we encounter setbacks or have to cope
with work and everyday frustrations. At other times, it's simply the need to celebrate after
having achieved a goal, or even the need to vent from time to time. Avenues for doing
this may not be so readily available to a solo preneur or a small-business owner. Running
a business on your own can be lonely. A trusted partner can be a valued business
companion. New Perspective. It's easy to have blind spots about the way we conduct our
business. A partnership can bring in a set of new eyes that can help us spot what we may
have missed. It may help us adopt a new perspective or gain a different outlook about
what we do, who we deal with, what markets we pursue and even how we price our
products and services. A partner can inspire and even move from apathy, or the status
quo, to the exhilaration of exploring new possibilities. We cannot attach a price on
everything and inspiration is one of these intangibles that may be priceless.

B. Organizational Chart

Route Worker
Pick up, delivery, collect

Manager Machine
Owner and
Washer
Bookkeeper Sorter tags and washer

Inspector/
Supervisor
Counter Clerk
Extractor
Operator
Finish clothes (fold,
plat and iron

59
Job Description & Duties
I. Machine washers Weigh laundry and place it in huge washing machines. Each type of
material's machine parameters are controlled by machine washers. Setting the optimum
temperature, washing speed, water pressure, suds level, and quantity of bleaches and
rinses are all part of this. After washing and rinsing the laundry,
11. Counter clerk Received laundries from customers, give back clean laundry,
scheduling the date of pick-up and delivery with the customers, and billing.
111. 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
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. it needs rewashing If 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. Finishers
VI. 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, as shirt sleeves, shirt collars, or the bodies of skirts.
They also use hand irons to 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.

60
C. Manpower Requirement

Job Responsibilities

 Load articles into dry-cleaning machines or washers at regular intervals to ensure

steady availability of towels and linens
 Regulate machine processes when starting washers, driers and dry cleaners; turn
levels and valves to control volume of additives, specific cycles and temperature
 Lubricate equipment to provide light service to machines, and clean or change
machine filters when needed; alert manager when machines are in need of
professional repair
 Sort articles before cleaning, separating them by fabric, color, cleaning technique or
dirt content for best results
 Sort and count articles as they are removed from dryers; hang, fold or wrap the
articles according to requirements or personal attention to detail
 Remove stains on fabrics though application of bleaching powders and steam
sprays
 Use a hand or machine marker to place identifying names or code numbers on dry
cleaning or laundry
 Utilize portable machines or neutralizer solutions to tend to stained articles, through
pre-soaking, spot-cleaning, sterilizing, scrubbing and drying articles as needed

Job Skills & Qualifications

Required:

 Must be able to lift up to 50 pounds

 Must be able to stand, walk and stretch for long periods
 Excellent organizational skills

Preferred:

 High school diploma or equivalent

 Previous experience as a laundry worker
 Night and weekend availability

61
D. Competitors

Fig. 7

As this figure shows there is only one competitor in the specific area which the
Rvt Laundry Shop near at Balangasan Brgy Hall. The proponents choose this business
area able to provide the needs and interest of the market area which is a laundry business.
Proponents decided this area considering the population which the bigger barangay
around the Pagadian City. Also, the business area is prone to the employees and student
who can’t do their laundry itself. Knowing the competitors are, and what they are
offering, can help to make products, services and marketing stand out. It will enable to set
the prices competitively and help to respond to rival marketing campaigns with own
initiatives.

Can use this knowledge to create marketing strategies that take advantage of the
competitors' weaknesses and improve the business performance that can assess any
threats posed by both new entrants to your market and current competitors.

62
 Chapter 6
Financial Study

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 1.4 million both partners with a total of 2.8 million 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 pay sits obligations before the end of the year.
7. Owner/Manager will withdraw instead of salary.

A. Projected Cost
1. The table shows the projected cost to startup of the Lava Dami Laundry Shop.
Assets: Projected Total
Cost
Building 700,000 Table 14. Business Projected Cost

Land 1,500,000
Furniture and 100,990
Fixture
B. Financial Assumptions
Business 758,469
1. Income Statement
Equipment
Business 11, 650
Supplies Lava Dami Laundry Shop

Total Capital 3,059,459 Statement of Comprehensive Income

For the year ended December 31, 2027

63
 Years 2023 2024 2025 2026 2027
Net Revenue 1,450,000. 2,040,000. 2,565,100. 3,500,030. 4,661,000.
00 00 00 00 00

Cost of Goods Sold 1,230,000. 1,535,000. 1,700,345. 2,300,000. 2,678,000.

00 00 55 00 75
Gross Profit 220,000.00 505,000.00 864,754.45 1,200,030 1,982,999.
25
Less : Operating Expenses
Benefit Of Employee 10,000.00 11,034.20 12,150.50 13,200.00 14,650.00
Utilities Expenses 9,300.00 10,021.00 12,600.00 13,100.00 15,00.00
Advertising Expenses 9,000.00 9,000.00 9,000.00 9,000.00 9,000.00
License and Permits Fee 15,000 700 700 700 700
Education and Training 10,500 10,500 10,500 10,500 10,500
Expense
Maintenances and Repair 10,000.00 10,500.00 11,000.00 11,200.00 11,900.00
Total : Operating Expense 63,800.00 51,755.20 55,950.50 57,700.00 46,750.00
Total 156,200.00 453,244.80 808,803.95 1,142,330. 1,936,249.
00 25
Income before tax 156,200.00 453,244.80 808,803.95 1,142,330. 1,936,249.
00 25
Less: Income Tax Due 0 42,050.19 105,050.50 169,500.00 200,000.00
Net Income 156,200.00 411,194.61 703,753.45 972, 1,736,249.
830.00 25

Table 15: Statement of Comprehensive Income

2. Statement of Financial Position

Lava Dami Laundry Shop

Comparative Balances Sheet
For the year ended December 31, 2027
Years 2023 2024 2025 2026 2027
Assets

64
Current Assets :
Cash 2, 850,075.25 3, 5,440,300.75 7,500,330.50 9,806,520.30
970,200.50
Account 240,432.00 253,499 260,000.25 278,330.20 280,230.00
Receivable
Inventory 1,351,000.00 1,337,800.0 1, 335,230.00 1,329,000.00 1,300,220.50
0
Supplies 11,650.00 11,650.00 11,650.00 11,650.00 11,650.00
Less : 1,000.00 2,000.00 4,000.00 5,000.00 7,000.00
Accumulated
Depreciation
Total Current 4,452,157.25 5,571,149.5 5,707,951.00 9,114,310.70 11,391,620.80
Assets : 0
Non- Current
Assets
Land 1,500,000.00 1,500,000.0 1,500,000.00 1,500,000.00 1,500,000.00
0
Building 700,000.00 700,000.00 700,000.00 700,000.00 700,000.00
Furniture And 100,990.00 100,990.00 100,990.00 100,990.00 100,990.00
Fixture
Equipment 758,469.00 758,469.00 758,469.00 758,469.00 758,469.00
Less : 20,000 40,000 60,000 80,000 100,00
Accumulated
Depreciation
Total Non- 3,039,459.00 3,019,459.0 2,999,459.00 2,979,459.00 2,959,459.00
Current Assets 0
Total Assets 7,491,616.25 8,590,608.5 8,707,410.00 12,093,769.7 12,093,769.70
0 0
Liabilities
Current
Liabilities :
Accounts Payable 10,000.00 9,800.50 9,788.00 9,755.00 9,673.00
Salaries Payable 100,500.00 115,247.00 128,772.70 139,448.00 140,100.50
Insurances 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Payable
Total Current 115,500.00 130,047.50 143,560.70 154,203.00 154,773.50
Liabilities
Total Liabilities 115,500.00 130,047.50 143,560.70 154,203.00 154,773.50
Owners’ Equity
Owners Capital 2,956,200.00 3,211,194.6 3,503,753.45 3,461,380.00 4,536,249.25
1
Total Liabilities 3,071,700.00 3,341,242.1 3,647,314.15 3,615,583.00 4,691,022.75
and Owners 1
Equity

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Table 16: Statement of Comparative Balances Sheet

3. Statement of Changes in Owners’ Equity

Lava Dami Laundry Shop

Comprehensive Statement of Changes in Owners’ Equity
For the Year ended December 31, 2027
Beginning Capital Jan. 2023 2024 2025 2026 2027
1
Partners’ Capital 3,059,459. 3,212,630.00 3,588,636. 4,219,595. 5,192,811.
00 57 48 50
Add : Net Income 156,200.00 411,194.61 703,753.4 972,830.0 1,736,249.
5 0 25
Total 3,215,659. 3,623,824.61 4,292,390. 5,192,425. 6,929,060.
00 02 48 75
Less : Partners 10,000 30,000 60,000 90,000 110,000
Withdrawal
Net Increase in Owners’ 3,205,659. 3,593,824.61 4,232,390. 5,102,425. 6,819,060.
Equity 00 02 48 75
Partners’ Capital, Dec 3,205,659. 3,593,824.61 4,232,390. 5,102,425. 6,819,060.
31 00 02 48 75

Table 17: Statement of Changes in Owners’ Equity

4. Statement of Cash Flow

Lava Dami Laundry Shop

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 Comprehensive Statement of Cash Flow
For the Year ended December 31, 2027
2023 2024 2025 2026 2027
Cash Flow From Operating Activities
Net Income 156,200.0 411,194.6 703,753.45 972,830.0 1,736,249
0 1 0 .25
Addition to cash
Depreciation 6,083.09 12,166.18 24,332.36 48,664.72 97,329.44
Decrease In Inventory 1,351,000 1,337,800. 1,335,230. 1,329,000 1,300,220
.00 00 00 .00 .50
Subtraction from Cash
Increase in Account 240,432.0 253,299.0 260,000.25 278,330.2 280,230.0
Receivable 0 0 0 0
Decrease in Account Payable 10,000.00 9,800.50 9,788.00 9,755.00 9,673.00
Net Cash Flow from 1,262,851 1,498,061. 1,793,527. 2,062,409 2,243,896
Operating Activities .09 29 56 .52 .19
Cash Flow From Investing Activities
Purchase Equipment 758,469 758,469 758,469 758,469 758,469
Purchase Supplies 11, 11, 650.00 11, 650.00 11, 11,
650.00 650.00 650.00
Net Cash Flow from Investing 770,119 770,119 770,119 770,119 770,119
Activities
Cash Flow From Financing Activities

Net Cash Flow 492,732.0 727,942.2 1,023,408. 1,292,290 1,473,777

9 9 56 .52 .19
Add : Cash Beginning - 492,732.0 1,220,674. 2,244,082 3,536,372
9 30 .52
Cash Ending 492,732.0 1,220,674. 2,244,082. 3,536,372 5,010,149
9 38 86 .52 .71

Table 18: Statement of Cash Flow

C. Financial Schedule
A. Depreciation Schedule
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 DEPRECIATION SCHEDULE
Assets Price Purchase Life Salvage Method Depreciatio Depreciatio
Year Span Value n Cost n on
Expenses
Per year
Building 700,000.0 2022 50 70,000 Straight 630,000 12,600
0 years Line
Chair 2,000 2022 12 200 Straight 800 150
year Line
Desk 3,600 2022 15 360 Straight 3,240 24
years Line
Table 2,600 2022 10 260 Straight 2,340 26
years Line
Waiting 4,130 2022 16 413 Straight 3,717 25.81
Chair years Line
Telephone 3,358 2022 7 335.8 Straight 3,022 431.74
years Line
Exhaust 5,500 2022 10 550 Straight 4,950 495
Fan years Line
Computer 11,879 2022 8 1,187.9 Straight 10,691.1 1,336.39
Set years 0 Line
Washing 130,000 2022 14 13,000 Straight 117,000 8,357.14
Machine years Line
Motorcycl 56,990 2022 15 5,699 Straight 51,291 3,426.07
e years Line
Water 10,000 2022 20 1000 Straight 9,000 450
Tank years Line
Weighing 1,500 2022 20 150 Straight 1,350 67.5
Scale years Line

Table 19: Depreciation Table

D. Financial Ratio Analysis

1. Liquidity Ratio

68
A. Current Ratio
Current Ratio = Current Assets/Current Liabilities
2023 2024 2025 2026 2027
Total Current 4,452,127.2 5,571,149.5 5,707,951.0 9,114,310.7 11,391,620.8
Assets : 5 0 0 0 0
Total Current 115,500.00 130,047.50 143,560.70 154,203.00 154,773.50
Liabilities
Current Ratio 38.55 42.82 39.76 59.11 73.6
Table 20: Current Ratio

B. Working Capital
Working Capital = Current Assets / Current Liabilities
2023 2024 2025 2026 2027
Total Current 4,452,127.2 5,571,149.5 5,707,951.0 9,114,310.7 11,391,620.8
Assets : 5 0 0 0 0
Total Current 115,500.00 130,047.50 143,560.70 154,203.00 154,773.50
Liabilities
Working Capital 4,336,627.2 5,441,102.0 5,564,390.3 8,960,107.7 11,236,847.3
5 0 0 0 0
Table 21: Working Capital

C. Quick Ratio
Current Assets−Inventory
Quick Ratio =
Current Liabilities
2023 2024 2025 2026 2027
Total Current 4,452,127.2 5,571,149.5 5,707,951.00 9,114,310. 11,391,620.
Assets : 5 0 70 80
Inventory 1,351,000.0 1,337,800.0 1,335,230.00 1,329,000. 1,300,220.5
0 0 00 0
Total Current 115,500.00 130,047.50 143,560.70 154,203.00 154,773.50
Liabilities

Quick Ratio 26.85 32.55 30.46 50.49 65.20

Table 22: Quick Ratio

II. Solvency Ratio

69
 Net Income After Tax + Depreciation
Solvency Ratio =
Total Liabilities
2023 2024 2025 2026 2027
Net Income 156,200.00 411,194.61 703,753.45 972,830.00 1,736,249.2
5
Depreciation 6,083.09 12,166.18 24,332.36 48,664.72 97,329.44
Total Liabilities 115,500.00 130,047.50 143,560.70 154,203.00 154,773.00
Solvency Ratio 1.41 3.26 5.07 6.62 11.85
Table 23: Solvency Ratio

III. Asset Turnover

Net Sales
Assets Turnover =
Average Total Assets
Where, Average Total Assets = (total assets for current year) + (total assets for previous year)
2023 2024 2025 2026 2027
Net Revenue 1,450,000.0 2,040,000.0 2,565,100.00 3,500.030.0 4,661,000.0
0 0 0 0
Total Assets 5, 5,574,302.3 6,059,243.41 6,585,892.6 7,280,933.5
218,500.00 1 8
Asset Turnover 0.28 0.36 0.42 0.53 0.64
Table 24: Asset Turnover

IV. Debt to Equity Ratio

Total Liabilities
Debt to Equity Ratio =
Owners Equity
2023 2024 2025 2026 2027
Total Liabilities 115,500.00 130,047.00 143,560.70 154,203.00 154,773.00
Owners’ Equity 3, 3,405,894 3,878,419.5 4,393.499.0 5,074,701.4
059,459.00 9 3
Debt to Equity 0.04 0.04 0.04 0.04 0.04
Ratio
Table 25: Debt to Equity Ratio

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V. Payback Period
Payback Period = Initial Investment/ Cash Flow Per year
2023 2024 2025 2026 2027
Initial Investment 6,000,000 6,500,000 7,000,000 7,500,000 8,000,000
Net Cash Flow 492,732.09 727,942.29 1,023,408.56 1,292,290.5 1,473,777.1
2 9
Payback Period 12.18 8.93 6.84 5.80 5.42
Table 26: Payback Period

VI. Return on Investment

Net Income
ROI =
Total Investment
2023 2024 2025 2026 2027
Net Income 156,200.00 411,194.61 703,753.45 972,830.00 1,736,249.2
5
Owners Investment 3,059,459.0 3,405,894 3,878,419.5 4,393.499.0 5,074,701.4
0 9 3
Return on 5.10% 12.07% 18.14% 22.14% 32.21%
Investment
Table 27: Return on Investment

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 Chapter 7

Socio Economic Study

A. Contribution to the Philippine Economy

Lava Dami Laundry Shop contributes significantly to the growth of the Philippine
economy by generating jobs and boosting the prosperity of each town. By giving the nation’s
expanding labor force jobs, it will also help to lower poverty by raising the country’s
employment rate and generating revenue for the entire population. Taxes help the government
run efficiently and provide maintenance and enhancements to the nation’s infrastructure, among
other benefits for its people, such as job development that generates income for the society. Lava
Dami Laundry Shop, the proposed business, also generates taxes that aid government spending
and may be used, among other things, to maintain a city’s infrastructure.

B. Employment Generation

Lava Dami Laundry Shop generates employment by utilizing current technology and
considering the government's employment goals and objectives. Therefore, the creation of
productive employment opportunities is essential for achieving poverty reduction and sustainable
economic and social development. Lava Dami Laundry Shop also develops a platform that offer
workers long-term employment. The creation of employment opportunities that enhance real
wages as well as the growth of the economy is one of Lava Dami Laundry Shop's contributions.

C. Social Desirability

Lava Dami Laundry Shop sought to be in society to promote economic development and
employment, which, in turn, considerably enhances people's, to produce and distribute goods and
services to meet a public need or demand and develop new approaches to addressing basic
human needs and aspirations. The major objective of the planned firm is to provide new and
cutting-edge services that stimulate economic growth while providing significant social benefits.
Lava Dami guarantees to provide all the services that customers require or needs, as well as to
give an instant response to their requests and thoughts.

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