FEASIBILITY STUDY ON ESTABLISHING A COIN-OPERATED LAUNDRY

SHOP IN POBLACION KAPATAGAN, LANAO DEL NORTE

Introduction

Doing laundry is a part of every person’s life. Just like food and shelter, clothing is
one of our most basic necessities. To have fresh clothes every day that we can readily
wear, we allot some of our time and energy in washing and drying our clothes. There are
two basic ways in doing this, i.e. hand washing and machine washing. However, some
people either don’t have enough time or energy or both to do their own laundry. Thus,
the birth of laundry shops.
In the essence of modernization, there is a continuous improvement of technologies
through invention and innovation. The diffusion of technological changes helps our
economies evolve and this change affects the lifestyle of every individual. It is clearly
evident in the evolution of laundry machines. In the older times, it usually takes two or
more days before we can take back our clothes from the laundry shops. With the
emergence of coin-operated laundry machines, we can now do a week-load of laundry in
less than hour.
The coin-operated washing and drying machines offer a self-service style of laundry
wherein people may 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. Because
of this, the customers will be able to decide how long they want their clothes tumbling in
the machine, maximize the amount of detergent and fabric conditioner that they want to
put plus the assurance that their clothes will not be lost.
In a laundry market competition, it is advantageous to have a more convenient and
efficient service. Therefore, the idea of transforming a typical laundry business into a
coin-operated or self-service type one emerges as an enticing option. The coin-operated
laundry industry has undergone a revolution. There is a trend toward coin laundries being
more comfortable for the customer. And the fact that old-school laundry owners viewed
this as a passive business has allowed the new era in laundry business to have an
opportunity for this innovation. With this, there will be higher level of probability for the
coin-operated laundry service feasibility.
For the judgment of feasibility of establishing a coin-operated laundry shop, this
study will provide a historical background of the business project, description of the
service, market analysis, details in operation and management, research and policies and
financial data. This study will be most beneficial to those who want to venture into the
laundry industry.

Overview of the Business Concept

The business concept of Summa Cum Laundry is unlike any other existing
traditional laundry shops in the municipality. The main factor that makes it different is
the introduction of the coin-operated laundry machine which makes doing laundry self-
service style. Aside from that, we will also be offering complementary services that will
make laundry day for every Kapataganon more fun and convenient.
Self-Service Coin Laundry – Most people nowadays depend on highly mechanized
machines to simplify household works and save time such as the coin-operated washing
and drying machine which can finish a week-load of laundry in less than an hour. Our
business’ goal is to allow customers to wash, dry and fold their clothes, garments and
bedding's for only a short period of time at our laundry shop. Moreover, all of the
services offered is affordable.
Supplementary Services – The proposed laundry shop is a self-service type wherein
customers can do their laundry themselves but, assistance will be offered to beginners.
Our laundry shop will also have a designated folding area, waiting area, free detergent
and fabric conditioner and free Wi-Fi connection and television.

Business Name

The business name is the first component of communications to the customers as it

will reflect the nature of the business. The proposed name of our business is “Summa
Cum Laundry”. Summa Cum is coming from the term summa cum laude which is the
highest distinction of an honorary title used by educational institution to signify a degree
that was earned, I used it because my proposed business is the first coin-operated laundry
business that will be put up in the municipality. And of course we already know what is
the meaning of laundry. All in all the business name meaning is the fist coin-operated
laundry shop.

Business Structure

The business will be a partnership. A partnership is commonly formed when two or

more people combine money, industry and property to form a business. It is generally
easier to form, manage and run. They are less strictly regulated than companies in terms
of the laws governing the formation and because only the partners have the say in the
way the business is run, they are far more flexible in terms of management. Running a
small business with a reasonably low turnover, a partnership is quite often a good choice
of legal structure for a new business. Partners can share the responsibilities of running
the business. Being a partnership, the business owners necessarily share the profits, the
liabilities and the decision making. This is one of the advantages of partnership,
especially where the partners gave different skills and can work together.

Location

The proposed location is at the 1st Floor, Right Wing of Prince Hyper mart Building,
Kapatagan, Lanao del Norte. This location is the center of poblacion where
establishments, and other buildings are built in.

Business Feasibility Study Objectives

The primary objective of this study is to provide conclusive information and

important insights for the feasibility of establishing Coin-operated Laundry Service in
terms of the following information: 
 Nature and concept of the coin operated laundry service 
 Access of coin-operated laundry service in the market 
 Potential credibility of coin-operated laundry Service 
 Provide financial projection for potential funding, marketing and business
development Management Aspects of Coin Operated Laundry Service 
 Develop operational impacts and recommendations for facilities 
 Additional relevant information to support the formation of a feasibility study 
 Other Consideration for the business establishment 
 Inferences and findings of the study

Target Market

The target market is within the scope of the business which are the residing residents in
Poblacion Kapatagan.

SWOT Analysis

Strengths 
 Highly-efficient machines 
 First coin-operated laundry shop in town 
 Faster laundry service: within 1 hour 
 Affordability: as low as P15 per kilos, for 10 kilos 
 Convenience: free Wi-Fi connection and television 
 Assurance: customers can supervise their own laundry 
 Assistance: Staff are readily available to assist customers 
 Low operating costs
 Partners are knowledgeable in the financial aspect of the business 

Weaknesses 
 New in the market 
 Self-service 
 Highly-depreciable machines. 
 Lack of separation between ownership and management 

Opportunities 
 The continuous promotion of the tourism industry of Kapataganon is perceived to
induce the growth of the hospitality industry.
 There is a possibility of hotels, bed and breakfasts, lodges, and so forth of
outsourcing laundry services. 
 There is a constant, consistent market demand because doing laundry is part of every
person’s life. 
 There is demand in the area covered. 
 No competitors for coin-operated laundry service. 
 New in the market and a unique kind of service. 
 Advanced technology needed for coin-operated washing machines are readily
available from our supplier. 
 Unpredictability of the weather that can directly affect the households. 

Threats 
 Volatility in prices of liquefied petroleum gas (LPG). 
 Well-established traditional laundry shops. New entrants as there are relatively low
barriers of entry. 
 Customers because majority still prefer to do their own laundry. 
 Customers who prefer full-service laundry rather than self-service. 
 Growing sentiment about environmental protection. 
 Power interruption and source of water.

Business Viability

The marketing aspect will determine the extent to which services generated by the
business are needed or demanded by the target market and to design the appropriate
marketing strategies and plans that will help ensure that the business outputs will be
reach and be accepted by the customers.

Advertising and Promotion

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
shouldered by the partners from their personal funds.

2. Light Signage
This is a 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 Php1350.00 including the electrical works and light
bulb.

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 Php2650.00 will be allotted for
the printing and distribution of the leaflets and flyers.

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 service for the first time or for
customers to come back and try our service again. The coupons that will be offered are
mostly “Free Dry” Coupons. A total amount of Php4,500.00 coupons will be given to
deserving customers and accounted for as promotional expenses.
Management and Personal Aspect

Value Proposition
“Panglaba ug imoha, Pungkol ka?”

Mission Statement
Establish a prestigious Laundromat in Poblacion Kapatagan, LDN to dominate the
market in the field of our industry by providing our customers an ambient, comfortable,
and quality service and expand our business within the area of the community. Remain
trusted for our integrity, admired for our innovations, respected for our business
practices, and recognized for our success.

Vision Statement
Summa Cum Laundry, as a leading provider of Laundromat services in Poblacion
Kapatagan, LDN in terms of excellence, client satisfaction, professionalism, and quality
superiority.

Core Values

CLIENT VALUE CREATION
Be understanding, and friendly to develop a long term relationship to the customers.

INTEGRITY
Be transparent in communication and honest as integrity is the foundation of our
guiding principles.

SOCIAL RESPONSIBILITY
To treat our employees with respect and dignity they deserve and take preservation
to our environment. 
ACCESSIBILITY
Be considerate for our customers in terms of a fair price value of a satisfactory kind
of service and timeliness of availability of the service for our customers.

Manpower Requirements

Attendant
Physical: 
 Male or Female 
 Age must be 18-25 years old

Qualities, Skills, and Interest: 

 At least high school graduate 
 With pleasing personality 
 Ability to measure and count accurately 
 Good communication skills 
 Enthusiastic 
 Has the ability to operate machinery

All-Around Worker
Physical: 
 Male 
 Age must be 20-30 years old 
 Without any movement restriction

Qualities, Skills, and Interest: 

 At least high school graduate 
 Practical skills to operate the machine 
 Work willingness 
 Multitasking ability 
 Considerate
Job Description and Duties
A. Partner 1
 Accounting and record keeping. 
 Preparing tax and other legal and regulatory requirements.
B. Partner 2 
 Auditor and assets custodian. 
 Inspection of the operational and technical processes of the business.
C. Attendant 
 Greeting the customers and entertaining them. 
 Counter clerk and cashier. 
 Exchanging coins for the customers. 
 Providing assistance on whatever situation which requires such. 
 Also responsible to maintain the stocks of supplies which is used in the service..
D. Laundry Worker 
 Helping the customer to weigh their laundry. 
 Tagging the machine with customer receipt. 
 Responsible for store keeping chores. 
 Assist and monitor the customers availing the service. 
 Taking care and handling the cleaning supplies. 
 Familiar and able to do all other work except for those assigned to the partners.

Motivating and Rewarding Employees

Aside from the basic salary and necessary benefits given to the employees, 13th
Month Pay must be given as stated in the 13th Month Pay Law, Memorandum Order,
P.D. No. 851 and also, De Minimis Benefits such as Uniform Allowance and Laundry
Allowance. Furthermore, it is important for the partners to have a tight bond with their
employees to avoid hostility and to promote trust and loyalty. There will also be
celebrations during special occasions such as Birthdays, Christmas and New Year to be
organized by the partners.
Operational Procedure

Business Culture
I. Operating hours from 9:00 am to 6:00 pm – no day off
Break time: 12:00 to 1:00 pm.
II. Day to Day Monitoring
The owners will monitor the employees’ attitude and performances, the consistency
and ongoing coaching and giving instructions to them. For monitoring the daily time
record of the employee, upon their arrival, they should log in to the record book which
will include their time in and out, and their signature. The customers upon entering the
laundry shop will be greeted by the attendant and assist them in weighing their laundry.
The attendant was also responsible for exchanging coins for the customers. The
coins being handed down to the attendant will be from the owner who will also be the
cash custodian. After the operation of the day, the total cash being exchanged from the
customers, which will be handed back to the cash custodian, should also be equal to the
coins handed down to the attendant before the start of the operation.
 As a self-service laundry service, customer should be the one operating the
machines and putting their desired amount of the detergent, bleach and fabric conditioner
to be used in their laundry. The all-around worker will assist them in operating the
machine and make sure that there will be no leaks and over loading. Aside from that,
there will be an instructions posted in the wall to guide the customers.

Financial Aspect
The purpose of financial aspect is to provide proof on the financial feasibility of the
Summa Cum Laundry. This will focus on the assessment of the projected starting capital
investments, expenses, revenues, disbursements and returns. The results in this aspect
will be most relevant to investors who are planning to venture into the laundry industry.

Business Schedule
GANTT Chart of Business Activities

Conclusion
Based on the study the market feasibility concluded that there is a current gap in the
demand and supply analysis. The target market are the households residing near the
scope of the business in Poblacion Kapatagan, Lanao del Norte. There is no current
competitor in the area since there is no laundry shop located at the scope of the business.
Thus, this can be an assurance and an opportunity for an entrant of a new innovation in
the laundry industry. And also this can be an advantage of the shop since this is new to
the market and especially no competitors yet. In the financial aspect of the study,
establishing a laundry mat will might require an intensive capitalization since the start up
and acquisition of equipment will be costly. The selling price should be reasonable since
this business is new to the market.

Recommendations
In the study, proceeding with the market plan is highly recommended. Advertising
and promoting to introduce the business culture of a laundry self-service are advisable
since it is new to the market. Complementary services such as internet access and
magazines are highly recommended. Acquiring generators are highly recommended.
High quality for detergents, bleach, and fabric conditioner are advisable to emphasize
uniqueness from other laundry services. Since self-service laundry doesn’t require any
direct workers, and there is no deliveries since customers are walking in, it is highly
advisable in pricing decision to be in a lower rate than a usual rate of a traditional
laundry services. Convenience and affordability shall be emphasized.
Organizational Chart

PARTNER 1 PARTNER 2

ATTENDANT

LAUNDRY WORKERS