Feasibility study en

Project Summary

In this chapter, the group presents the highlights, descriptive definition, long- range objectives, feasibility criteria, history and basic conclusions of studying the business viability of “Biba Lavendera” laundry shop.

A. Name of the Enterprise Biba Lavandera Laundry Shop A business name is one of the most essential things to be prepared in starting a business.

Biba Lavandera as the primary name of the business, originated from the noun word “bibo” that means smart or bubbly. It is used to refer a person that is active and has energy. “lavandera” came upon the suggestion of Professor Patriarca as it appeals more to the target audience. Biba Lavendera somehow gives an extraordinary attention The name “Biba Lavandera” is unique, simple and easy to remember. People will easily visualize what the business is about and it will aid to their memory. It includes the information that the business does and can easily be understood by various target market.

The business logo shows a bubbly girl to represent Biba, a sun to denote a bright day for doing laundry with the name of the enterprise. The colors used are on the light shades to be more attractive and leave a clean and fresh image.

B. Location The location of the business is at Blk 79 lot 3 Ginseng Road, Robinsons Homes East Bgy. San Jose, Antipolo City. Biba Lavandera is inside the Robinsons Homes. Basically, the business is intended for the residents of the community because not all the residents have house helpers to do the laundry. Many residents are working and they are too busy to do the laundry so this kind of business is good enough for the people inside the community. The lot measures 24 sq2 and the laundry shop is expected to occupy 16 sq2. Originally, the location was occupied by a salon. The rates of renting the place range from 3,000php to 4,500php a month since it is located on the main road; hence it projects a higher rate. The cost of renting the place is good enough for the productivity of the business because it is easily seen by the target audience.

The main location is near the Robinsons clubhouse, the chapel and the main gate so it is accessible for all the residents of the subdivision. An efficient site for “Biba Lavandera� is seen in the community because the need for an instant way to clean the resident’s clothes is high. The village is in the city so raw materials and other utilities will be available for the business owners.

This is the map of the whole Robinsons Homes East which has approximately 3, 400-4,000 occupied houses (from wikimapia).

This is the exact location of the business inside the Robinsons Homes.

C. Description of the Project Primarily, the project is intended for the residents of Robinsons Homes and not in line with any other government advocacies. However, this may support a clean living which is aimed by the Department of Health but this project is basically to help the residents lessen their workload and ensure that their clothes are clean. It does not support any political aspects of the government or other organizations in the community.

Biba Lavandera significantly acts a helper for the people who does not have enough time to do the laundry. It will be managed by a partnership who is a resident of the community.

Through that, the target market is rest assured that the owners of the business adhere to what they need to get full satisfaction. It is a very good idea to put up a laundry shop in the subdivision because it also gives the mothers or the ones responsible for doing the laundry, an extra time to bond with other family members or do other productive things. Instead of doing the laundry that is tiring, people could just deposit their clothes in the shop and wait for it to get done. More time and effort will be saved by the residents and perhaps, it could be spent on other household chores, doing paper works and other.

This project will be managed by the people who know the feeling of being unsatisfied with what results they get from doing the laundry at home. The owners thought of more advantages and benefits that their co- residents will get from having their dirty clothes and stuffs done in an easy manner. The use of technology today should be able to respond to the needs and wants of the customers. In that case, a laundry shop is the answer to the need for clean clothes in less time, less cost and less effort.

D. Long- range Objectives ¾ To be able to expand the business in other areas of the community in its three operating years. ¾ To gain 50% of loyal customers in a year. ¾ To dominate the market in the community and define the edge of Biba Lavandera laundry shop from its competitor inside the subdivision in six months time. ¾ To establish a good brand to customers and gain brand loyalty in its first three months of operation by prevailing a socially responsible enterprise. ¾ To increase profits in half a year’s time.

E. Feasibility Criteria As a socially responsible business, it adheres to the responsibility of having a good impact on the environment. Profitability is not just the major aim of the project but also to be a socially responsible business by promoting a healthy environment in a simple way of wearing clean clothes. According to Renteria (2007), a laundry industry is a recession- proof industry because everyone has dirty clothes. A laundry business has been a sleeper and has also stayed well below the radar, but profitability is very visible in this kind of business.

Judging the viability of the project, it is important to consider aspects like how it is able to operate in the market, how it differs from other laundry shops inside the subdivision and how long it stays in spite of the competition. Its profitability can not be judged on the first months of its operation though, because this kind of industry gives higher cash returns if it attracts customers in a long- run basis.

F. Highlights of the Project i. History The project came about the thought of a business partnership between the group members originating from a water refilling station up to the laundry shop. Thinking of what business to put up that suit inside the Robinsons Homes is really the main thing. A water refilling station may be viable in the location however a lot of competitors are already operating inside the community so the group though of a different business where in the target audience could focus their attention into; and that is a laundry shop.

Laundry shops are seen to be a need for the residents of the community. This kind of business does not require much effort for the customers and the business owners as well. For the customers, it is as easy as leaving their dirty clothes in the shop and return after it is done. For the business owners, hiring few employees that would manage the business is just the only task to do. Employees will be needed for operating the laundry machines. Thus, the group thought of this kind of business for practicability and demand from the target audience. It will be a good help for meeting the customer’s expectations through satisfying their needs and wants.

ii. Project Timetable Status The project is expected to be in operation for ten years and be able to be promoted to a different stage at a later time such as extending a detergent store near the laundry shop. The business will still be operational after the expected year; however the focus of the business will be more on the expansion of the industry.

Presently, the business is in the stage of introducing a new brand in the market. A laundry shop is not new in the market though so product innovation and sales management are important in order for the business to grow. The launching of the business has to be unique and catchy to attract prospects in the future and develop a loyalty for the brand.

iii. Nature of the Industry Laundry industry is a strong and energetic business. Also, what makes it more appealing to the market is the fact that this steadfast service industry continues to grow and succeed. The demographic trends toward an even greater dwelling segment of the population forecast continued success.

The biggest threat for the business is the competition. Considering that the business site is inside a subdivision, it is possible that other businessmen would think of putting up the same business and hence, the market will be more segmented and it yields a smaller target market for the laundry shop. However in the long- run, the business will not just dominate the whole subdivision but will also extend to other places like the nearby subdivisions near the Antipolo church and probably other areas like Taytay, Cainta or Pasig.

Laundry shops are easily managed through the use of new technology. It lessens the time and effort that are spent in getting the clothes cleaned. The normal time spent in getting dirty clothes cleaned is like two hours depending on the number of clothes to be washed and its sizes.

However, the laundry industry belongs to the service industry where the product is primarily the service given to the customers. Take note of the service, it comprises of the use of detergent soaps to be used for the clothes, the water consumption, space to be saved by the customers in hanging their clothes to dry and the electricity that can be saved for ironing them. Generally, this kind of industry is really seen on the go for the target audience because of convenience and practicability.

iv. Mode of Financing and Investment costs The mode of financing will be from the partnership of Alburo sisters. It will come from the savings of both and this business will be their primary investment. A laundry shop is a not big business that needs an extravagant capital so there is no need to borrow from the bank or a lending company. The partners chose to finance the business because it will lessen the cost of interests.

The estimated cost of the total business is ????????????. Funds will be allocated as follows (php): Store rental Total price of the equipments (approx) Maintenance Store renovation Manpower

Total

(a detailed analysis of costs will be further discussed on the following chapters)

v. Investment costs G. Major Assumptions and Summary of Findings i. Market Feasibility ii. Technical Feasibility iii. Financial Feasibility iv. Socio- economic Feasibility v. Management Feasibility H. Conclusion of the Study

Market Study This chapter covers the most important part of the project that intends to define the size, nature and growth of the demand for the product, description and price of the product, supply situation, nature of competition, different marketing factors affecting the market of the product and the marketing program needed.

A. Product Description B. Demand- Supply Analysis C. 4 P’s Study D. Factors Affecting the Market E. Survey Results F. Analysis of Data Gathered G. Conclusions and Recommendations Technical Study In this chapter, the group presents the products, manufacturing process, plant size and production schedule, machinery and equipment, plant location and layout, building facilities and the raw material and supplies for the operation of “Biba Lavandera” laundry shop.

A.

Services Biba Lavandera will be providing customers with the following laundry services: Wash,

Dry, Fold (WDF), Pressing, Hand Wash, and Dry Cleaning services.

Wash, Dry,Fold or WDF is the most common sought service from a laundry shop. This service provides basic machine washing and drying; and folding for customers’ clothes, comforters, towels, curtains and seat covers with or without foam. This process is done with the aid of washing machines and dryers. Washing machines perform several rinses after the main wash to remove most of the detergent. Then, the clothing would be placed on a clothes dryer or tumble dryer that is used to remove moisture from a load of clothing and other textiles. Then, the clothes or garments would be manually folded and bagged for pick up for the customers.

Pressing or Ironing or smoothing is the work of using a heated tool, or tools, such as an iron to remove wrinkles from fabric. Ironing works by loosening the bonds between the longchain polymer molecules in the fibers of the material. While the molecules are hot, the fibers are straightened by the weight of the iron, and they hold their new shape as they cool. Some fabrics,

such as cotton, require the addition of water to loosen the intermolecular bonds. Aside from this, ironing may also be used as a germ/parasite killing hygienic operation. Most ironing is done on an ironing board, a small, portable, foldable table with a heat resistant top. Some commercialgrade ironing boards incorporate a heating element and a pedal-operated vacuum to pull air through the board and dry the garment. But technology has paved its way in improving the traditional iron to steam irons which allow pressing without an ironing board.

Hand Washing is the traditional manual cleaning of clothes. Some delicate clothing pieces require gentle cleansing, thus the need for hand washing service. The laundry worker would wash the specified clothing one by one by hand and bar soap and the clothing would also be airdryed before it could be folded.

Dry Cleaning is a cleaning process for clothing and textiles using an organic solvent rather than water. The solvent used is typically tetrachloroethylene (perchloroethylene), abbreviated "perc" in the industry and "dry-cleaning fluid" by the public. Dry cleaning is necessary for cleaning items which would otherwise be damaged by water and soap or detergent.

The cleaning process of dry cleaning is more time consuming compared to the usual wash, dry, fold process, but there are clothing that requires such service like gowns and barongs, coats, suits, dresses, jackets, caps and neckties. The international GINETEX laundry symbol for dry cleaning is a circle. It may have a letter P inside to indicate perchloroethylene solvent, or a letter F inside to indicate a hydrocarbon solvent. A bar underneath the circle indicates that only mild cleaning processes should be used. A crossed out empty circle indicates that no dry cleaning is permitted.

B. Manufacturing Process There are different processes involved in a laundry business depending on the specified service ordered by the customer and the service required with the type of garment or fabric. We also have the International Washing Symbols to refer to in washing the clothes to assure the customers that their clothing is handled in the best way by a customer-satisfaction oriented business.

INITIAL PROCESS IN ACQUISITION OF GARMENTS

Wash Dry Fold Service Per 10 Kilo Wash Load

For Thin Garments including

For Thick Garments such as

Bed Sheets, Curtains, Towels and

Blankets and Comforters.

Seat Covers with or without Foam.

Pressing Service

Hand Washing Process

DRY CLEANING PROCESS

C. Plant Size and Production Schedule D. Machinery and Equipment

Machineries

2 Whilpool Topload Washers Model : 4PWTW5905

Features: • 27”Super Capacity Plus • 10.5 Kg. Dry Linen Capacity • Fully Automatic Washer with Silver Panel • Exta Roll Action Agitator • MagiClean Lint Filter

• Polypropylene Outer Tub • Direct Drive System • Extra Rinse Option • Self Balancing Basket and Tub • Rat-Proof Base • Tripod Suspension System

Specicifations: MODEL

4PWTW5905

LOAD CAPACITY

10.5 Kgs.

WASHER TYPE

Top Load

SPIN CAPACITY

10.5 Kgs.

SPIN SPEED

650 rpm

NO. OF WASH PROGRAMS

9 cycles

SoakWash FUNCTIONS

No

EXTRA RINSE

Yes

TURBO PERFORMANCE

No

WATER USAGE per WASH

87 Liters

AGITATOR

Yes

CONTROL TYPE

Push Button / Knob

WASH WATTAGE

880W

COLOR

Biscuit/White

NET DIMENSIONS (h:w:d) in inches

42.5 X 27 X 26.5

POWER SOURCE

220V / 60Hz

NET WEIGHT

72 Kgs.

GROSS WEIGHT

78 Kgs.

2 Whirlpool Dryers Model : 4PWED5905

Features: •

10.5 KG. Fully Automatic Electric Dryer with Silver Panel

•

Automatic Dry

•

Gentle Heat System

•

Removable Lint Filter

•

End-of-Cycle Signal

•

Wrinkle ShieldTM Option

•

Quiet Dry Noise Reduction

•

SpillGuardTM Top

Specifications: MODEL

.4PWED5905

LOAD CAPACITY

10.5 Kgs

NO. OF CYCLES AND OPTIONS

8 Cycles

NO.OF TEMPERATURE SETTINGS 4

1 Dry Cleaner

ACCUDRY SENSOR DRYING

Automatic Dry

REMOVABLE LINT FILTER

Top Mounted

CONTROL TYPE

Push Button and Knob

MATERIAL AND FINISH

Enamel, Powder Coated

POWER SOURCE

220V / 60Hz

WATTAGE

5400W

COLOR

Biscuit / White

NET DIMENSIONS (h:w:d) in inches

42.5 X 29 X 28

NET WEIGHT

53 Kgs.

GROSS WEIGHT

56 Kgs.

E. Plant Location F. Plant Layout G. Building Facilities H. Raw Materials and Supplies I. Utilities J. Waste Disposal K. Production Cost i. Direct Materials ii. Direct Labor iii. Manufacturing Overhead L. Plant Organization M. Appendices i. Plant Layout/ Equipment ii. Equipment flow sheet iii. Equipment listing and cost iv. Utilities calculation v. Plant facilities breakdown of cost vi. Projected cost of production Socio- Economic Study A. Socio- Economic Benefits i. Employment and Income ii. Taxes iii. Supply of commodities iv. Demand for materials Organization and Management Study A. Formulation of Goals and Objectives B. Basic Considerations C. Forms of Ownership D. Organizational Chart E. Officers and Key Personnel F. Project Schedule

Environmental Impact Analysis Recommendation