LAUNDRY BUSINESS PLAN

Why laundry business?

 Laundry service is a basic need – there will always be a demand for it.
 Laundry business is a cash business – No receivables or collections problems.
 More and more people will be forced to have their laundry serviced – condominiums and
town houses have limited spaces for laundry in residences.
 Filipino lifestyle is changing – consumers are starting to prefer doing their own laundry with
machines that finish the job quickly.

Why self – service laundry?

1. More and more customers are having frustrations or complaining about traditional
laundry services such as:

 Too expensive – P25 to P45 per kilo with a minimum of 3 to 5 kilos

 Takes too long to get clothes – Usually it takes 3 to 5 days turnaround time
 Clothes get lost, damaged.
 Clothes get washed with other people’s clothes.

2. Self – service laundry solves the usual complaints about traditional laundry services:

 Less expensive – for as low as P8 per kilo with no minimum.

 Laundry is done in less than 1 ½ hour
 Customers wash and watch their own clothes
 No worries of mixing clothes with other people

3. Self – service laundry provides additional advantages to customers and shop owners:

 Flexibility – Shop owners can provide full – service laundry if customers want it.
 Customers wash on their preferred time and day.
 Customers bring their own supplies (optional) – No inventories
 Requires minimal manpower – 1 to 2 attendants only . Ideal 3 attendants.
 Shop owners have limited liability from loss or damage of customer clothes because
customers do their own laundry
The Potential of Self – Service Laundry
Estimated full service shop operating nationwide:

 More than 10,000 shops

Potential Market size for Self – Service Shops nationwide:

 2,500 – 3,000 shops (assuming 1 Self – Service is to 3 or 4 Full – Service Shops)

Estimated number of existing Self – Service Shops nationwide:

 Less than 200 shops (8% only of potential market size) – Based on actual market survey and
distributors business volume on self – service laundry machines.

Potential for Multiple Revenue Opportunities:

 Additional income sources from sale of laundry supplies and other related laundry services
such as dry cleaning and pressing / ironing services.
 Partnership with hotels, restaurants, spas, and others for commercial laundry operations.
 Walk – in / Dropoff
 Walk – in / Self – Service
 Delivery Pick – up

Target Market: Young Professionals and trendsetters, Working Moms & Housewives,
Institutional businesses and more!

**Service Based Business, Low cost laundry business and a combination of self – service and full
service business.

Staffing:

 Minimum of 2 -3 Staffs to run the business smoothly (if New and tight on budget - start with
1 staff)
 Qualify according to Personal Character, Background, Preferably Highschool or College
Level, Skills and Experience, Pleasing Personality, Customer Service, and References.

Staff Scheduling:

Time 8am – 10pm (14 hrs.) Time 7am – 11pm

Schedul Sched. (16 hrs.)
e Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Opening 1 1 1 Openin
8am – g
5pm 7am –
4pm
Mid Mid
10am – 10am –
7pm 7pm
Closing Closing
 1pm – 2pm –
10pm 11pm

 Staffs have 1 Day off each and they can choose whether it is Tuesday, Wednesday or
Thursday.
 Scheduling to be discussed weekly if they want to change the day of their day off or their
shifts.

Guidelines / Factors to consider in setting up my own self – service laundry shop:

 Location
 Shop Design
 Construction
 Equipment
 Manpower
 Operational Procedures
 Sales and Marketing Procedures
 Management Systems

Location:
 Sufficient space of at least 25 sqm. For machines, waiting and working area for staffs and
customers inside the shop.
 Frontage space of at least 5 meters or 5,000mm
 Ideally with parking space
 Ground level for convenience of customers
 Near residential areas such as:
o Condominiums
o Town Houses
o Boarding Houses
o Subdivisions
o Apartments
o Supermarket

 Accessible by Public Transportation.

Shop Design:
1. Electrical Line
 Single Phased (5 amperes/unit) (ask Supplier)
 Check Power Box - Ex. 110 amperes = 15 washers and 15 dryers (ask supplier)

2. Water Line
 Type: Soft Water
 If the water is hard in the area, use filter and softener
 Pressure: 40 – 50 psi
 Availability: Consistent (Recommendation: Have water tank)

3. Drainage
 45 liters / cycle

4. Gas Line
 Install safety leak detector
 LPG Gauge Meter

5. Exhaust (If Electric fan) / Ventilator (If air-conditioned)

6. Internet and Telephone Line

 Delivery
 Pick – up
 Advertisement
 Promotions
7. Parts of the shop
 Weighing Station
 Counter
 Washing and Drying Area
 Folding Area
 Waiting Area
 Hand washing Area (Pre – wash area)
 Clothes Line (Sampayan) - Optional
 Comfort Room

Construction:

 Look for contractors with:

o Experience / proven track record ( At least restaurant)
o Look for their reference side (client). Check their work
o Quality of work
 o Complete professional Services (Architectural Plan, Fire safety plan, Electrical plan,
mechanical Plan, etc.) – Blueprint
o Easy to deal with & Reasonably Priced

Equipment / Machines:

 LG (Ease of maintenance, durability, efficiency and effectiveness, design, ease of use, utilities
cost savings, and availability of parts).

Operational Procedures:
 Customer service procedures
o Greetings
o Handling of Questions and requests
o Configuring Laundry requirements
o Professional Assistance
o Processing of Laundry (Loading, Washing , Drying , Folding and Packaging)
o Checking for customer satisfaction

 Cashiering and counter procedures

o Encoding
o Handling Change

 Sales procedures
o Flyers
o Ask to refer to friends, family, etc.

Sales and Marketing Programs

Online and offline strategies

 Brand Awareness activities

o Flyering
o Coupons
o Free detergent , softener, etc
o Free Laundry Bag
o Opening Discounts

 Customer Loyalty Programs

o Membership Cards with perks
o Raffles

 Promotions
o Valentines
 o Birthday
o Christmas
o Summer
o Rainy
o Halloween
o Labor day

 Community Partnerships / sponsorship

o Fiesta
o Liga
o Pageants

 Online marketing and social media

o Facebook
o Instagram
o Twitter

Management Systems:

 P.O.S
 Shop monitoring (CCTV)
 Auditing Procedures
 Supervision Standards (Standardized packaging, etc.)
 Standard policies and procedures monitoring (Opening, Cleaning, Closing)
 Machine maintenance procedures

TOWS ANALYSIS

THREATS

 Laundry businesses that has more sets of washer and dryer.

 Laundry business offering the same services at a lower cost.

 High cost of modern equipment.

 Due to trend, many laundry businesses came out.

OPPORTUNITIES

 Technological advancement in the laundry industry.

 Laundry business is now a basic need or necessity. It will always be in demand.

  Increasing population.

 Consistent market demand due to the reoccurring need to wash and dry clothes.

 Modern and fast paced lifestyle of the Filipino market especially in the way they do

their laundry.

 It is a cash basis business.

WEAKNESS

 Inexperienced as compared to other competitors.

STRENGTHS

 Simple to follow operational procedures, flowcharts, and organizational structure.

 Unique laundry shop concept in the area.

 Fast and affordable laundry services.

 Excellent customer service.

MICHAEL PORTER’S FIVE FORCES

Intensity of the Rivalry among Competitors

 High. There are a lot of players in the traditional laundry industry here in the
Philippines with each one trying to outdo the others. In regards to the Self – Service
laundry business that offers an innovative way to do the laundry quickly at an
affordable price there are numerous players competing but not so many as compared
to traditional laundry.

Threat of New Entrants

Low. With this kind of laundry concept, new players will have difficulty entering the
market due to high capital or investment cost of modern machines. But, if new players
will establish traditional laundry, the start –up costs is not that high.
Bargaining Power of Buyers
 Low. By putting a system in place through the use of card system, customers do not
have the power to dictate or haggle the price of the services.

Bargaining Power of Suppliers

 Low. Since there are lot of laundry business sprouting in the Philippines offering the
same machines and supplies, the laundry shop owner can look for other suppliers
offering the same at an affordable or cheaper price.

Threat of Product Substitutes

 High. There are lot of laundry businesses that offers the same services and sometimes
at a cheaper price here in the Philippines.

CHAPTER 4: DESCRIPTION OF THE VENTURE

PRODUCTS

Merchandise is sold under the “LAUNDRY NAME” brand such as: Personalized
Laundry Bag, Mugs, Mesh Bag, Laundry Supplies, and Tumbler. LAUNDRY NAME
Services also sell food snacks and drinks such as: hot coffee & chocolate, water, biscuits,
potato chips and more!

SERVICES

SELF – SERVICE (DO – IT – YOURSELF)

 The customers will be experiencing first-hand the washing, drying, and folding of
their own laundry items.

DROP – OFF (FULL – SERVICE)

  This means that the “LAUNDRY NAME” attendants will WASH, DRY, and FOLD
your laundry For YOU but with an additional P30 service charge.

*”Laundry Name” guarantees that there will be no mixing of clothes with other
customers.

OPERATION QUALITY ASSURANCE / CONTROL

Managing a laundry shop business requires being keen and observant to many aspects
of the business such as human resource, operations, finances, and facilities. Creating a quality
control initiative will help us avoid problems, run the business smoothly, provide excellent
customer services and enjoy more profits from reducing unnecessary costs.

Our Operation Flow Quality Policy

The following are our Quality Control Measures:

1.) Before opening the shop, the staff will clean / mop the floor, check and inspect the
machines before using by our customers and ensure that the machines are in good
working conditions to have quality wash and dry.
2.) We’ll create a list or service calendar to serve as notification and inform us to the
dates on which machines (alternate) to conduct preventive maintenance so that the
business will still run smoothly.
3.) We value quality services and customer satisfaction. To achieve this, “Laundry
Name” staffs will undergo training to equip them with knowledge, skills and
excellent customer service.
4.) Operational Guidelines, Safety Tips and Policies are readily available to be followed
by the customers.
TECHNOLOGY UTILIZATION

Our Self – Service Laundry business provides customers with the following technology:

 State of the art machine / equipment – Customers can enjoy new machine and
equipment which can make washing and drying clothes easier, faster and more
enjoyable.

 Wi-Fi – Fast access to the internet so that customer can have some time to relax,
browse, or watch their favourite YouTube video. They can update their status about
this awesome laundry experience which can be an added publicity to the business. In
addition, when the shop is overcrowded, the customers can use the Wi-Fi while
waiting.

 POS / Card System – Our laundry business is equipped with a system in which
customers can avail loadable membership cards used to pay for the services and enjoy
perks, freebies and many more!

 Website – Potential customers and current members can see the updates about the our
laundry shop offers. They can also pay online via debit card, credit card, and Master’s
card.

Process Flow

1. Weighing, checking of pockets, and segregation of clothes.

2. Payment of services (Either Self – Service or Drop – Off) and detergents &

fabcon.

3. Washing, Drying and Folding of clothes ( Maximum of 8 Kilos / load)

 4. For Drop - Off, Customers can pick – up their laundry items at the stated time /

day. First – come, first – served basis.

MARKETING MIX STRATEGIES AND PROGRAMS (4P’s into 4C’s)

PRODUCT -> Consumer Needs and Wants

“Laundry Name” offers affordable laundry supplies and quality laundry services that
are based on customer needs and wants. Washing, Drying, Folding are separate or can be
offered as bundle etc.

PRICING -> Cost to buy

The pricing structure will be one that is extremely competitive with other self –
service and traditional laundry businesses but at a much affordable cost and value for money.
Our wash or dry is only P65 per load (maximum of 8 kilos). Customers can also enjoy
freebies and discounts every time they refer someone or gain signature in the loyalty card.

PLACE -> Convenience to buy

“Laundry Name” is located beside a Meat shop business as well as boutique. In

addition, the location has nearby residential and commercial areas and both accessible by
public and private transportation. It is a common knowledge that the first thing whether a
potential customer will visit a business is the location. Our location will certainly influence
some customers but I believe that it is the affordability, quick and quality laundry services
that will be the biggest contributing factor.

Regarding to the delivery of , these will be distributed at our shop. We will be

developing a website in which customers can purchase products, gift certificates online, and
avail membership for faster and hassle free transaction.

PROMOTION -> Integrated Marketing Communication

 For the promotion of “Laundry Name”, I’ll apply two marketing strategies both
offline and online. For offline marketing, I’ll be placing fliers / brochures at businesses, local
universities and residential units in the area. The ads will include discounted coupons in an
effort to build an initial client base. In addition, I will also establish partnerships with
labandera’s, sponsorships and seasonal promotions. For online marketing, I’ll create various
social media accounts / pages and post ads to reach a wider market. Making a website will
also be taken into consideration to take advantage of the internet era. These methods will help
“Laundry Name” build a reputation and strong presence both offline and online.

CHAPTER 7: ORGANIZATIONAL PLAN

ORGANIZATIONAL STRUCTURE

Duties and Responsibilities

Position Title: Manager

Job Summary: Responsible for the profitability and growth of the business

Duties and Responsibilities:

1. Planning – Establish and maintain an integrated plan consistent with both short and

long term goals and objectives.

2. Organizing – Develop and maintain an effective organization which will ensure that

work is done effectively and economically.

3. Control- Develop and maintain control system to ensure conformance of operations

and results to what was planned.

4. Design, establish and maintain an effective accounting system for financial

transactions of both divisions.

5. Verify and check all accounting reports and documents that are submitted by the store

custodian and laundry shop operator.

 6. Check and verify all collections and disbursements made with their supporting

documents.

7. Signs check for any payment made by the business.

8. Responsible for implementation and monitoring of organization rules and regulations.

9. Responsible for fixing salaries and benefits.

10. Assumes other duties analogous to the above mentioned.

Position Title: Store Custodian/Cashier

Job Summary: Responsible for the selling operations of the products

Duties and Responsibilities:

1. Entertaining of customers on products offered.

2. Maintaining enough stocks for the store.

3. Setting of reorder point for inventories.

4. Collection of customer due accounts.

5. Assessing credit lines of customers, dealers and distributors.

6. Maintaining books in accounting for financial transactions.

7. Providing periodic reports on the financial position and performance of the division.

8. Taking care of assets within the division.

Job Specification:

1. Male/ Female, No age limit under Rep. Act. 10911 (Philippine Law)

2. At least high school graduate, preferably college level.

3. Excellent in oral and written communication.

4. Has an excellent interpersonal skill.

Position Title: Laundry Shop Operator

Job Summary: Responsible for the long term grown of the business

Duties and Responsibilities:

1.

Position Title: Ironer and Folder of garments

Job Summary: Responsible for the assistance on laundry shop and store division

Duties and Responsibilities:

1. Assisting the operator of laundry shop on entertaining of customers and cleaning of

laundries.

2. Tends machine, consisting of pressing roll and ironing shoe, that shapes smooths

knitted garments

3. Presses control lever to revolve roll to engage ironing shoe with revolving roll while

machine is heating

4. Adjusts rheostat to heat ironing shoe to maintain specified temperature

5. Disengages heating ironing shoe from roll, stops roll, and spreads garment on roll

6. Starts roll reengages ironing shoe to press garment

7. Removes pressed garment from machine

8. Taking care of the deliveries from the supplier to the store.

9. Fold all the garments

10. Assistance on whatever situation which requires such.

11. Folds garments for bagging or boxing, following guide marks on table or using

folding board.

12. Secures folds with metal clips.

 13. May insert tissue paper between folds.

14. May make final inspection of garment.

15. May pack garments in bags and boxes.

16. May be designated according to garment folded as Shirt Folder.

Job Specification:

1. Male,Female, No age limit under Rep. Act. 10911 (Philippine Law)

2. At least high school graduate

3. Have excellent interpersonal skills

Employee Compensation and Benefits

They have equal and fixed salaries, for Laundry Operator / Washer,Ironer and Garment
Folder, Store Cusodian/Fronliner/Cashier.

Monthly SSS PHILHEALTH PAGIBIG WITHHOLDIN Total

Salary CONTRIBUTION CONTRIBUTIO CONTRIBUTION G TAX Income
N
9,000.00 327.00 225.00 100.00 450.00 7,898.00

CHAPTER 9: FINANCIAL PLAN

SAMPLE CAPITALIZATION COSTS

QTY. ITEM PRICE

3 sets LG Washer and Dryer (P186,000) outside Metro P549,000
Manila
1 pc Pay Buddy 20,000
10 pcs. Customer User Cards (P110) 1,100
1 pc Card System Software Free
1 pc USB Dongle (5 months) free
2 pcs. Download Card (Download Data) P500 1,000
2 pcs. Parameter Card (Change Price) P500 1,000
TOTAL P572,100
 RENT ( Current month + 2 months security Deposit) P15,000 P45,000
 Working Capital ( 2 months) 150,000
 Construction / Contractor Cost
 Laundry Supplies