AMAZA ENTERPRISES

BUSINESS PLAN
Laundromat and dry cleaning services
Table of Contents
1. EXECUTIVE SUMMARY..............................................................................................................................0

1.1 BUSINESS OVERVIEW.........................................................................................................................0

1.2 VISION, MISSION AND OBJECTIVES.................................................................................................0

1.2.1 VISION............................................................................................................................................0

1.2.2 MISSION..........................................................................................................................................0

1.2.3 VALUES..........................................................................................................................................0

1.2.4 OBJECTIVES...................................................................................................................................1

1.3 THE BUSINESS OPPORTUNITY..........................................................................................................1

1.4 THE MANAGEMENT TEAM.................................................................................................................1

1.5 THE FUNDING REQUIREMENTS........................................................................................................2

1.6 RISKS AND ISSUES...............................................................................................................................2

1.7 PURPOSE OF THE BUSINESS PLAN...................................................................................................2

2. EXTERNAL ENVIRONMENT ANALYSIS...................................................................................................3

2.1 POLITICAL CHANGES..........................................................................................................................3

2.2 ECONOMIC CHANGES.........................................................................................................................3

2.3 SOCIAL CHANGES................................................................................................................................4

2.4 TECHNOLOGICAL CHANGES.............................................................................................................4

2.5 INDUSTRY OVERVIEW........................................................................................................................4

3. THE MARKET................................................................................................................................................5

3.1 MARKET ANALYSIS.............................................................................................................................5

3.2 MARKET SEGMENTS...........................................................................................................................6

3.2.1 INDIVIDUALS HOUSEHOLDS.....................................................................................................6

3.2.2 CORPORATE..................................................................................................................................6

3.2.1 HOSPITALS...........................................................................................................................................6

3.2.2 SCHOOLS AND COLLEGES................................................................................................................6

Page | 1
 3.2.3 GOVERNMENT DEPARTMENTS........................................................................................................6

3.2.4 MEDIUM AND HEAVY BUSINESSES/ INDUSTRIES.......................................................................7

3.3 MARKET NEEDS AND PREFERENCES..............................................................................................7

3.3.1 PROFESSIONALISM......................................................................................................................7

3.3.2 CONVENIENCE..............................................................................................................................7

3.3.3 RELIABILITY.................................................................................................................................7

3.3.4 ENVIRONMENT.............................................................................................................................7

3.3.5 PRICE...............................................................................................................................................7

3.3.6 REPUTATION.................................................................................................................................7

3.3.7 DEPENDABILITY...........................................................................................................................7

3.3.8 LOCATION......................................................................................................................................8

3.4 SEGMENT ATTRACTIVENESS............................................................................................................8

3.4.1 SIZE..................................................................................................................................................8

3.4.2 GROWTH RATE.............................................................................................................................8

3.4.3 GROWTH POTENTIAL..................................................................................................................8

3.4.4 PROFIT............................................................................................................................................8

3.4.5 COMPETITION...............................................................................................................................8

3.4.6 RISK.................................................................................................................................................9

4. STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS (SWOT ANALYSIS).............................9

4.1 STRENGTHS...........................................................................................................................................9

4.2 WEAKNESSES........................................................................................................................................9

4.3 OPPORTUNITIES...................................................................................................................................9

4.4 THREATS................................................................................................................................................9

Page | 2
 AMAZA ENTERPRISES BUSINESS PLAN

1. EXECUTIVE SUMMARY

1.1 BUSINESS OVERVIEW

Amaza Enterprises (Pty) Ltd is a startup business venture that was formally registered on the 12th of February
2022. The business was established by a phenomenon and ambitious woman, Mrs Babalwa Masega. The business
intend to specialise in the provision of dry cleaning and laundry services. Their services will encompass all
laundry care and cleaning value based activities, namely; dry cleaning, laundry care, drying, pressing and folding.
This exciting business venture will be based in De Aar, Emthanjeni Local municipality and surrounding areas.

1.2 VISION, MISSION AND OBJECTIVES

1.2.1 VISION

1.2.2 MISSION

1.2.3 VALUES

The business will be guided by the following values and principles

Hygiene
Efficiency
Effectiveness
Timeliness
Integrity
Trustworthiness
Honesty
Teamwork
Professionalism
Delivering value
1.2.4 OBJECTIVES

Short term objectives will encompass the following:

To source finance for the business
Procure capital equipment and finance the working capital requirements of the business
Set up processes, procedures and systems for the business
Set up the team

The medium term objectives of the business will be as follows:

To penetrate the market further and compete more efficiently and effectively
To position the business as a one stop convenient and reliable dry cleaning and laundry services business

The long term objectives of Amaza Enterprises (Pty) Ltd encompass the following:
To grow the business so as to cater for other areas within the De Aar and De Aar
To further diversify the business by offering additional related services

1.3 THE BUSINESS OPPORTUNITY

At present, the town of De Aar based in the Emthanjeni local municipality does not offer professional
laundraumat and dry cleaning services. Amaza Enterprises (Pty) Ltd will be overwhelmed with the number of
clients. This essentially implies that the demand for laundry services is more than the supply.

Most of the laundry businesses ‘mass market’ their services and do not actively cater for a specific market. Some
have found themselves suffering losses owing to the fact that they do not have sufficient capacity and other
necessary facilities. There are some instances where clients are turned away or simply told to collect their laundry
after a number of days. This is as a result of existing businesses being under capacity.

The shortfalls in terms of laundry services in in De Aar and surrounding areas opens great opportunities for
ventures such as Amaza Enterprises (Pty) Ltd to canvass.

1.4 THE MANAGEMENT TEAM 

The business will be owned and managed by committed, motivated and hard working woman. The primary owner
of the business is Mrs Babalwa Masega. She will manage the dry cleaning faction of the business and support
staff will manage and supervise the laundry, drying, folding and pressing faction of the business. The managing
members will employ Finance and Administration Assistant as well as two general assistants so as to better
manage the anticipated workload.

1.5 THE FUNDING REQUIREMENTS

Amaza Enterprises (Pty) Ltd requires funding of R 60 000.00 and owner’s contribution of R 10 000.00 The
business will approach various funding institutions that supports youth econoci development opportunities such as
commercial banks (ABSA, First National Bank, Standard Bank South Africa, Nedbank and so forth).

Page | 1
Other sources of funding assistance such as The National Youth Development Agency(NYDA), and National
Empowerment Fund (NEF) will also be approached for financial and non-financial support.

The owners of the business will make a contribution in kind (washing equipment) so as to minimize the financial
risk associated with the business proposal. The finance required will be used to purchase capital equipment
(which includes dry-cleaning and laundry equipment) as well as finance the working capital requirements of the
business.

1.6 RISKS AND ISSUES

The risks and issues identified centre around finance and market risks. The business is new and has not
accumulated any goodwill or earned a reputation. Penetrating and acquiring a desirable market share might prove
to be a cumbersome and costly exercise for the business. The market has well established competitors.
Nevertheless, this will be mitigated by focusing on understanding the needs of the customers better than the
competitors and ensuring that internal operating systems are efficient and effective. The business will also seek
help from the SEDA for assistance with the development of a comprehensive Marketing Strategy and Plan.

A financial risk was identified and this pertained to the fact the owners’ contribution in comparison to the
required outside borrowings is less. This will be mitigated by retaining a majority of the profits in the business as
opposed to sharing the profits or distributing large salaries until such a time that the outside borrowings are
minimised. The business may also consider equity finance as opposed debt finance.

1.7 PURPOSE OF THE BUSINESS PLAN

The purpose of this business plan is to provide a road map for the exploration of the business opportunity
identified by the owner of Amaza Enterprises (Pty) Ltd and assist them to obtain the funds required to finance the
capital equipment and working capital requirements of the business. It provides a detailed insight of the industry,
market, management plan, marketing plan, production/ technical aspects and financial needs of the business

2. EXTERNAL ENVIRONMENT ANALYSIS 

The external environment analysis is done with a view of highlighting some of the opportunities and threats which
may influence the performance of the business. These are as discussed hereunder:

2.1 POLITICAL CHANGES

Government policies include the integration of government schools and the development of additional hostels.
This will be an opportunity for Amaza Enterprises (Pty) Ltd as it will increase the demand for linen cleaning.

Other government policies and movements such as Broad Based Black Economic Empowerment, Affirmative
Procurement, Industry Charters and many more will be an opportunity for the business. The possibilities of large
well established firms making procurements from youth owned small businesses will be an opportunity for the
business.

Page | 2
The expansion of medical services, for example, more clinics, emergency services will expand the linen cleaning
market

2.2 ECONOMIC CHANGES

Interest rates were recently reduced by _____ basis points. The current interest rate stands at ______% whilst the
inflation rate is around _____%. This will be an opportunity for the business as the cost of borrowing money will
be slightly less and annual nominal increments in prices are not as high

The current economic crisis has had an adverse effect on consumers as they are now focusing on tightening their
budgets. Laundry is considered to a luxury service for most individual consumers.

The demand for dry cleaning and laundry services may be low as a result of the economic crisis. However, in
terms of corporate customers like hospitals hotels and other accommodation providers, dry cleaning and laundry
services is a necessity and hence may not be negatively influenced by the economic crisis

Page | 3
2.3 SOCIAL CHANGES

The increase in double income families will be an opportunity for the business
Social changes such as the high unemployment rate, crime rates will pose threats to the business
The increase in population will be an opportunity for the business

2.4 TECHNOLOGICAL CHANGES

In terms of technological changes, fast changing technologies and operational processes are evident. Taking into
consideration the demand and competition in the industry, dry cleaning and laundry entities seem to be well
equipped making it possible to deliver acceptable high standard services to clients. This will be an opportunity for
the business as it will be able to use washing machines and tumble dryers to render its services to clients.

Technology is also playing a role in improving the garments used in the fashion industry. Currently, the fashion
industry displays high quality sophisticated clothing and garments.
Technology has also played a major role in the development of advanced detergents and cleaning chemicals.  
Detergents and other chemicals are a key components of the dry cleaning and laundry process

2.5 INDUSTRY OVERVIEW

The total size of the laundry industry is estimated at ___________ million tons a year and the growth rate is at
______%. The industry has a considerable growth potential since the external environment demonstrates more
opportunities than threats.

Growth is dependent on critical success factors of individual laundry entities; these include amongst others:
Capacity
Affordable pricing to ensure financial sustainability
Market access: penetration and acquisition of market share
Focusing on specific niche markets 
Efficiency and effectiveness
There is currently a movement for eco-friendly technology/ processes

The industry features a number of established laundry businesses and these are growing at a fast pace. The
laundry industry also has numerous self-service Laundromats which are mostly found in shopping districts. They
feature machines that are coin – operated and require the client to supply their own washing powder and fabric
softener. Players in the industry consist of large, medium and small dry cleaning and laundry service businesses. 
Large corporate laundry businesses serve large institutions that require a constant flow of clean linen, uniforms
and other garments. They serve entities such as hospitals, hotels, and other government departments. Medium
players mostly include the dry cleaning and laundry service built within major shopping malls. Lastly, small
players include neighborhood dry cleaning and laundry service businesses.

The current barriers/ challenges facing the industry include:

The lack of competent and skilled employees
The availability of qualified and experienced laundry manager
Page | 4
 Capital availability
Equipment and capacity (maintenance/ technical issues)

3. THE MARKET

3.1 MARKET ANALYSIS

The laundry market has evolved over time as competition has intensified among laundry service providers and
producers of washing machines, dryers and other machinery. More laundry outlets have been opened as a result of
increased demand for the services.

The economic slowdown has had an adverse impact on the market as some consumers consider laundry services
to be a luxury. The economic slowdown has affected the pricing of laundry services as in most instances, the
prices have escalated.

The customers that make up the market include the following:

Hospitals
Schools
Institutions of Higher Learning ( College’s ect.)
Government Departments  - Municipalities and local government
Hospitality oriented entities such as resorts, lodges, guest houses and bed & breakfast entities
Medium and heavy industries

Amaza Enterprises (Pty) Ltd will target the corporate market segment. The business will offer its services to
hospitality based entities, government facilities and individual households. These will encompass lodges, guest
houses, military, hospitals and individual housholds. These entities were deemed to be lucrative targets for
Amaza Enterprises (Pty) Ltd. Key factors such as the size, profitability, growth potential, and risks associated
with the market segments were taken into consideration prior to targeting a lucrative market.

3.2 MARKET SEGMENTS

The market for dry cleaning and laundry services is made up of both individual and corporate market segments.

3.2.1 INDIVIDUALS HOUSEHOLDS

Individuals make up a considerable proportion of the market in De Aar and surroundings. Their needs and
preferences tend to be unique and private oriented. They are considered to be difficult to target as in most
instances, they prefer to do the laundry themselves. They usually only take special garments and articles such as
suits, curtains, linen for laundry care and cleaning.  Moreover, they typically have small budgets and bring items
for laundry in small quantities. In addition their spending preferences change as they age.

3.2.2 CORPORATE

Page | 5
3.2.1 HOSPITALS

Hospitals comprise of private and public institutions. Most hospitals have a dedicated laundry department but (in
some instances) outsource laundry management services. This happens when the patient base is at maximum and
in other instances where they do not have electricity. They usually require bulk laundry management services and
outsource bulk workloads on a contract basis.

3.2.2 SCHOOLS AND COLLEGES

There are number of private and public learning institutions in De Aar and surroundings. They range from
primary to tertiary institutions. A number of schools have hostels and as such require laundry management
services. They occasionally require laundry management services from laundry businesses.

3.2.3 GOVERNMENT DEPARTMENTS

These include municipalities and local departments within De Aar and surrounding. The South African Police
Services and The South Africa National Defense Force are also potential segments that require laundry services.
There is potential for bulk workloads that require laundry management services

Page | 6
3.2.4 MEDIUM AND HEAVY BUSINESSES/ INDUSTRIES

These include entities part of the De Aar Industrial area as well as Shopping Malls and Centres. A number of
leading shopping outlets usually outsource laundry management services so as to care for the uniforms of their
employee’s and other articles deemed appropriate.

3.3 MARKET NEEDS AND PREFERENCES

3.3.1 PROFESSIONALISM

Customers value professional services. They seek businesses that can provide them with advice on the best way to
care for their garments.

3.3.2 CONVENIENCE

Convenience in terms of having a one stop dry cleaning and laundry services business that offers same day
service.

3.3.3 RELIABILITY

Reliability is important to the customers. This entails the laundry business being open at convenient hours and
offering great service

3.3.4 ENVIRONMENT

Customers have a preference for clean and environmentally conscious laundry businesses.

3.3.5 PRICE

Price is another key factor when it comes to needs and preference. Consumers seek value for money and have a
preference for affordable prices where quality is not compromised.

3.3.6 REPUTATION

Most consumers value the opinion of others. Therefore it is important for a dry cleaning and laundry services
business to build a strong reputation.

3.3.7 DEPENDABILITY

Consumers seek dry cleaning and laundry services businesses that are consistent with delivery and have a sound
level of trust, reliability and integrity.

Page | 7
3.3.8 LOCATION

Location is an important factor to consider. Most customers prefer Laundromats that are in close proximity to
their residential areas. They need a Laundromat that they can easily drop off and pick their laundry without the
hassle of spending too much money on transport. 

The location of the players in the market is another key factor to consider. The business will face both direct and
indirect competition. Existing well established businesses within De Aar will pose competition to Amaza
Enterprises (Pty) Ltd. These include

3.4 SEGMENT ATTRACTIVENESS 

3.4.1 SIZE

In terms of size, the corporate segment is bigger as compared to the individual segment. Corporate clients bring in
a bigger laundry load as compared to individuals.

3.4.2 GROWTH RATE

The corporate segment is growing at a greater rate than the individual market segment.

3.4.3 GROWTH POTENTIAL

The growth potential of the corporate segment is higher than the individual segment. The hospitality industry is
growing and having an impact on the growth of the laundry industry.

3.4.4 PROFIT

The corporate segment is more profitable than the individual segment. Moreover corporate client have a bigger
budget as compared to individual clients.

3.4.5 COMPETITION

Competition for the corporate segment is higher than the individual market segment and the laundry industry
centers around the price charged for the type of dry cleaning and laundry services offered.

Indirect competition will emanate from businesses that have their own dry cleaning and laundry facilities such as
hospitals, shopping malls, hotels and industrial oriented entities.

To combat competition, Amaza Enterprises (Pty) Ltd will endeavor to have a better understanding of the market –
this will essentially supersede the competitors understanding of the market. Amaza Enterprises (Pty) Ltd will
strive to deliver its services as per the needs and preferences of the target market.
Page | 8
3.4.6 RISK

In terms of risk, this is higher for the individual segment than the corporate market segment.

4. STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS (SWOT ANALYSIS)

4.1 STRENGTHS

The owner is committed and dedicated

Applicant have good communication skills
The applicants have a good understanding of the market and the processes involved in dry cleaning and
laundry services 

4.2 WEAKNESSES
The applicant lack financial management skills
Currently the organisational structure is informal; it is however likely to improve once more employees or
members are added on to the team
The contribution made by the owner in terms of owners’ contribution is less as compared to the required
outside borrowings – this is likely to outlook a gearing problem

4.3 OPPORTUNITIES
There is a possibility of hotels, bed and breakfasts, lodges and so forth of outsourcing dry cleaning and
laundry services
The availability of advanced technology in the form of industrial washing machines and dryers will be an
opportunity for the business

4.4 THREATS
The threat from well established competitors
There is a threat from new entrants as there are relatively low barriers of entry
There is a threat from customers as a majority prefer to do their own laundry
There is a threat from suppliers as they may not always have the necessary consumables required to render
laundry services

Page | 9