FEASIBILITY STUDY OF WAIS LAUNDRY ON THE GO IN BARANGAY

CENTRALA SURALLAH,SOUTH COTABATO

A Feasibility Study Research Presented

To the Faculty of Business Administration
Ramon Magsaysay Memorial Colleges – Marbel Inc.
Koronadal City

In Partial Fulfillment of the Requirements for the Degree

Bachelor of Science in Business Administration
Major in Financial Management

CATHERINE G. DILIG

May 2022
 Chapter 1
INTRODUCTION

Background of the Study

The fast change of trend from individualized laundry to commercial laundry services

coincides with rapid technological change as well as the fast, changing and modern lifestyle of

Filipinos consideration to the consumption of water.

Laundry business is an easy and convenient business to start. It is not capital or

management intensive. You can start this business right from home and grow from there. It is a

very lucrative business, as not everyone that puts on clothes has the time to do the laundry. Based

on the survey conducted the reasons why they go to the laundry shops instead of doing it to

their own are because of tight schedule especially those students who have a lot of

extracurricular activities in school, others says they don’t like washing their clothes because it is

just a waste of time (laziness), and some boarding houses didn’t allowed washing clothes in

consideration to the consumption of water. The absence of businesses of exactly the same nature

Centrala , Surallah south Cotabato is one of the opportunities Wais Laundry on the Go is

expecting to seize. The business will be situated in a commercial area of Centrala ,surallah south

Cotabato exposed enough to create a market for its laundry services. Some people may perceive

seeking of a laundry service as an extravagance but it could be a great help to individuals and

businesses that are busy enough to do this with themselves and to those who seek a better

cleaning process for their clothes.

Its presence at the main road of the Barangay is expected to create an extensive demand

for both the products and laundry services. Standing on the main base which is the products and

services’ nature itself being a necessity makes its great opportunity to sell on individual

household, and businesses. You earn from them as they earn with you. This is an encouragement

which will open opportunities for an increasing number of patronizes.

The business proposed desire to make easy living for its customers, through providing

affordable and quality services. The convenience and hassle free activity for the customers is the

major reason why the researcher came to point of proposing the business
Objectives of the Study

This study aimed to determine the viability Wais Laundry on the Go Centrala Surallah ,

South Cotabato.

It specifically aims to:

1. Describe the profile of producing industry in Centrala Surallah South Cotabato

2. Present the major player existing in the market in the following aspects.

a. Organizational

b. Operational /Technical

c. Marketing

d. Financial

3. Discuss the feasibility of the proposed study in the following aspects.

a. Organizational

b. Operational /Technical

c. Financial

4. Present the findings of the study in the following aspects.

a. Organizational

b. Operational /Technical

c. Financial

Scope and Delimitation

This feasibility study is limited for Wais Luandry on the Go Surallah ,

South Cotabato. The study will mainly identify the marketing, management,

operational and financial stability Wais Laundry on the Go.

Locale of the study

The study is plan to be located at barangay Centrala surallah South Cotabato Cotabato

wherein it is populated and it is advantage because there is no business like this who offer..
Significance of the Study

The result of this study will be beneficial to the following;

To the Local Government of Baranggay Centrala. This study will serve as basis in the

formulation of a certain business operation specifically in the hospitality industry.

To the Researchers. The researcher can also gain significance in this study. They could

improve their skills, strategy, and knowledge in engaging this study.

To the Future Researchers. This study will serve as a reference material and a guide for

future researchers who wish to conduct the same study or any study related to resort.

Definition of terms

This section presents the definition of terms wherein the terms related to the study will be

define according to its purpose.

Mobile Laundry - Mobile Laundry is a laundry shop using a van with built-in washing

machine, laundry dryer and other useful machines or devices for laundry.

Clothes - Something to wear on, like dress, shirts, pants, underwear’s. It also includes

textiles, like curtains, table cloth, beddings, bed sheets and etc.

Washing Machine - A machine that is use to washed clothes easier than manual. It has a

spinner inside that spins the clothes to remove water.

Laundry Dryer - A machine that exacts or absorbs water of the laundry to dry it.

Van with a built-in Washing Machine - A van that has a total package to wash laundry.

It has washing machine, dryer, iron, and even generator inside.

Flat iron - Used to press clothes to remove creases.

Ironing Board- A small, portable, foldable table with a heat resistant surface, where

ironing is done.

Detergent Soap - Powder soap used in washing that makes clothes cleans.

Fabric Conditioner - Liquid used to soften clothes when it washed, it also give

fragrant to clothes
 Chapter 2
INDUSTRY ANALYSIS

In this chapter it includes about the Rivalry Industry, the business strength and

weaknesses, bargaining power and the government policies such as processing of permits and

licenses.

Rivalry Industry

Wais Laundry on the Go has no direct competitor in the area of Barangay Centrala

Surallah, South Cotabato because this is the first business who offer this kind of services.

However, Wais Laundry on the Go has an indirect competitors like housekeepers or maid.

The table below is the strengths and weaknesses of Master touch home cleaning services.

Table 1. Strengths and Weaknesses

Strengths Weaknesses

 Simple organizational structure. With the  Unestablished name and goodwill

few employees of the business, of products and services.
organizational problems can be addressed  The entity cannot use the name of
and resolved immediately. the products already
 Monopolistic character. No existing existing in the market though
establishment of the same industry is they have the same quality.
operating within the immediate area of  This will create a competition
proposed location. and strive to make the
 Strategic location. The business will be  products known to the market.
situated within a commercial area in the The laundry shop has no
Barangay Centrala thus, creating established goodwill since the
accessibility for the target customer business is just to commence.

Bargaining Power of Supplier

The suppliers of Wais Laundry on the Go came from KCC Mall of Marble and Mall

of Ace were the supplies needed of the said business can buy. Therefore, the business has more

options to buy from different suppliers which put the business in a dominant position. Having

more option as a source of cleaning materials has significant negotiating power over suppliers

because it can easily switch to other suppliers this will have more negotiating room with the

suppliers.

Bargaining Power of Customers

 Wais Laundry on the Go is unique and can’t be gain easily from other suppliers since

there is no direct competitors in the said area, hence customer has less bargaining power over the

services. The initial customers of this business are those people who are busy in their work that

doesn’t have time to wash their clothes. The bargaining power is significantly high since Wais

Laundry on the Go offers a good quality of services but in affordable price to the customers.

Government Policies

The following are the basic requirements to start the business in the Philippines:

Permits and Licenses

DTI registration for registering your business trade name (BTR).

Mayor’s business permit for getting the license to operate in the city or municipality and

payment of local business taxes.

BIR registration for getting TIN, official receipts and invoices, registering the books of

accounts, and paying the national internal revenue taxes (Income tax, VAT Percentage Tax,

Withholding Taxes, etc.)

Bureau of Fire and Protection (BFP) is an agency of the Department of the Interior and Local

Government (DILG) responsible for implementing national policies related to firefighting and

fire prevention as well as implementation of the Philippines Fire Code (PD1185).

Aside from the above-mentioned requirements, the business should also obtain Barangay

Clearance where the business is located. Other requirements to obtain are the fire permit and

sanitary permit from CENRO.

Table 2.1: Schedule of Permits and Licenses

Permits and Licenses Amount (₱)

DTI Registration 1,000

BIR Registration 5,000

Mayors Business Permit 500

Barangay Clearance 200

Bureau of Fire Clearance 1,500

Total P8,200
 Chapter 3
MANAGEMENT FEASIBILITY

This chapter consists of the organizational structure of the business.

Form of Business Organization

It is a sole proprietorship form of business. As the definition of sole proprietorship: “it is

an unincorporated business owned and run by one individual with no distinction between the

business and the owner. You are entitled to all profits and are responsible for all your business's

debts, losses and liabilities.”. The owner is planning to manage Wais Laundry on the Go so

that in the long run, they can generate profits out of their investments and at the same time

satisfy the needs of the customers in terms of good service quality.

Organizational Structure

A business organization cannot do its operation if the necessary personnel/employees are

not present. In an organization, the people behind are the key for the improvement of the

business. They are needed to attain the projected goals of the organization and to satisfy the

market’s necessities. The organizational structure is very important because the operation of the

business is in their hand. That is why the firm must choose carefully the most qualified

individual for every position to be able to foresee best results of the organization in the future.

Organizational Chart

The organization chart or structure is based on direct flow of authority from the owner

which is also the manager.

Manager/Owner

Laundry Shop
Store Custodian Liaison Employee
Operator
 Figure 1. Organizational Chart of Wais Laundry on the Go

A line relationship represents the power of authority to command that is exercised by a

person over his direct subordinates. The manager /owner has the power of supervision, direction

and evaluation on the work of his subordinates. The store custodian and laundry shop operator

will share authority over the liaison employee.

Employee’s Profile

The management would hire individuals with near proximity in the Region XII because

the management believes that familiarity of the area is a plus for convenient processing of

company’s transactions and to effectively market the services of the company to the target

market. The management would choose the most qualified employees in the selection process.

Applicants aspiring to become a part of the company would possess the following qualification

in line with their respective job description.

Table 3.1: Job Description, Job Specification

Position Job Description Job Specification
 Responsible for the profitability and  Female
growth of the business  At least 25-30 years
 Establish and maintain an integrated old
plan consistent with both short and  Must have Time
long term goals and objectives management skills.
Manager
 Design, establish and maintain an  Attention to detail.
effective accounting system for  Communication skills.
financial transactions of both division  Interpersonal skills.
 Flexibility.
 Customer service.
.
Store  Entertaining of customers on products  Male/ Female, 20-35
custodian offered. years of age
 Maintaining enough stocks for the  At least high school
store. graduate, preferably
 Setting of reorder point for inventories college level.
 Providing periodic reports on the  Excellent in oral and
financial position and performance of written
the division. communication.
 Taking care of assets within the  Has an excellent
division. interpersonal skill.
Laundry  Handling the actual cleaning of  Male/ Female, 20-35
Shop laundries. years of age
Operator  Scheduling of accepting and returning  At least high school
of laundries to customers. graduate
 Procurement and maintaining of stocks  Knows how to operate
of supplies to be used in service. a washing machine
 Maintaining books in accounting for
financial transactions.
 Providing periodic reports on the
financial position and performance of
the division. 6. Taking care of the
 assets within the division.

Recruitment and Selection Process

The manager shall personally choose and hire the employees for the business. The

specifications required for each job should be met by the chosen applicant. A weight on

trustworthiness should be considered for they will be entrusted with the assets of the business, so

it would be better if the manager personally know them. In addition, the requirements for the oral

and written communication skills and ability to operate a washing machine should be given an

emphasis for these are vital in carrying out their duties and responsibilities.

The figure below will show the process of how applicants will be recruited to be placed

in a relevant vacant position at Wais Laundry on the Go.

JOB POSTING
EVALUATION HIRE
Announcements
Accepted Hired interview
for job opening
candidates will will now
will be posted
be scheduled undergo seven
outside the main
and undergo an (7) days of
office premises
interview with training before
and social media
the Manager. going through
accounts, also in
job-posting the business
websites. operations.
.

Figure 2. Steps in Recruitment Process and Job Hiring Process of Wais Laundry on the Go

Training and Development

Training and development refer to employees’ acquisition of knowledge, development of skills

and proper work attitude. Training of employees is a means Wais Laundry on the Go to ensure

job security which is necessary in giving quality services. The store custodian must be oriented

by the manager/ owner.on his line of duties and responsibilities, particularly on dealing with

sales, credit system and customer relation. A training which will be given by the company from

which the laundry shop equipments will be purchased should be undergone by the laundry shop

operator. The liaison employee should as well be trained and oriented on his role in the business.

Many new employees are very uncomfortable in a new job, and the new orientation program of

Wais Laundry on the Go should serve, among other things, as gradual introduction to the

organization as well as the job. The new staff member will be given the following:
 1. Wais Laundry on the Go history, its policies, programs and procedures, objectives, and

organizational structure.

2. Working hours, salaries and benefits.

3. Brief description of duties and time of breaks.

4. Dress code.

Compensation Package and Benefits

The management of the proposed business shall comply with the Department of Labor

and Employment (DOLE) compensation law for the regular employee. Every employee will

enjoy the basic mandatory benefits of SSS, PHILHEALTH, PAG-IBIG.

Depending on the position, all employees of the company will be paid in accordance to

the mandates of Labor Code of the Philippines for an eight-hour working days for six (6) days a

week. They will also entitle to have a vacation, sick and other mandatory leaves.

Table 3.2 Compensation and Benefits

Compensation and Benefits (Monthly)
13th SSS PAG-
Monthly PHILHEALT
No. of Month Employer IBIG
Position Salary Employer
employee Pay Share (₱) Employer
Rate (₱) Share (₱)
Share (₱)

Manager 1 9,600 9,600 800 150 100

Shop operator 3 8,400 8,400 800 150 100

Store
1 8,100 8,100 800 150 150
custodian
26,100 26,100 2,400 450 450

Business Policies

Attendance and Time-off Policies- Attendance policies define how employees may schedule

time off or notify superiors of an absence or late arrival. This policy also sets forth the

consequences for failing to adhere to a schedule, for example, employers may allow only a

certain number of absences within a specified time frame. The attendance policy discusses the

disciplinary action employees face if they miss more days than the company allows.

Absenteeism
  An employee is absent when he/she is unavailable for work as assigned scheduled and

such time off was not scheduled approved in advance as required by administrative

notification procedure.

Tardiness

An employee is tardy when he/she;

 Fails to report for work at the scheduled work time.

 Takes an extended meal or break period without approval.

Time in and Time out

Employees are required to follow established guidelines for recording their actual hours worked.

A missed clock in/out is a violation of this policy and includes:

 Failure to clock in/out on their designated time clock at the beginning and/or end of their

assigned time schedule.

 Failure to clock in/out on their designated time clock for the meal break

 Failure to accurately and timely report time worked

 Clocking in/out early (or late) of assigned shift without prior approval

Dress Code Policy-Employees of Wais laundry on the Go must always present a clean and

professional appearance to our beloved customers as they also reflect the company’s identity.

Code of Conduct- These are rules, principles, values, and employee expectations, behavior and

relationships that an organization considers significant and believes are fundamental to their

successful operation. Each employee should do their roles with an appropriate attitude and work

ethic.

Performance Appraisal- Harmonious environment within the organization helps workers to

perform efficiently and effectively with every given circumstance they are engaged into,

Compensation packages which include bonus, high salary rates and extra benefits, are

given to employees and pre-requisites are dependent on performance appraisal. Also, employees

are given the chance to be promoted for being efficient at work. In this regards, inefficient

workers can be dismissed or demoted in case.

Every violation committed should be in black and white acknowledged by the employee.

And consequences are established in order not to tolerate those violations and will not go out of

hand to the extent that termination is the only left solution.

 Chapter 4
MARKETING FEASIBILITY

This chapter discusses the services description, company name, company logo,

positioning, target market, projected market share, location, and pricing scheme, marketing

strategy, promotion and advertising and projected sales.

Services Description

Wais laundry on the Go offers a service that involves costumers pay by weight for their laundry,

with the service washing, drying, and folding the laundry. Additional services like stain

treatment, dry cleaning, and ironing are also offer on Wais laundry on the Go services.

Company Name

The name of the business is Wais laundry on the Go because Wais means wisely decision in

having your laundry with no hassle , convenient and time saving. The business wants to make

sure that the services provide and offer is the best. Wais laundry on the Go is providing a proper

acceptable and satisfactory to the needs of the consumer.

Company Logo
 Figure 3. Logo

The business came up with this logo because we believed that it can reflect and represent

the main business essence thoroughly. Owner chose to put an image of washing machine and

hanger which is the primary equipment we use in Wais Laundry on the Go is also put in the logo

to recognize the name of the business.

Positioning

Wais Laundry on the Go will create a legacy as the leading home cleaning services within

Barangay Centrala Surallah South Cotabato in the next 5 years. The business will build loyalty

by always delivering on customers a memorable experience and by engaging service excellence.

The competitive advantage of Wais Laundry on the Go is that the business will offer a good

quality of services. Additionally, the owner wants to ensure that customers will surely enjoy the

services of the said business. The business would carry the company name Wais Laundry on the

Go. Its purpose is to provide a proper acceptable and satisfactory to the needs of the consumer.

Target Market

The target markets of proper acceptable and satisfactory to the needs of the consumer.are

those people who’s busy in working that doesn’t have time to clean and fix things in their

clothes.

Projected Market Share

The figure below is the projected market share of Wais laundry on the Go, based on the

conducted survey by the researcher.

Sales
10% supplies and equipments
25%
20% Laundry Shops

employees

45% others

Figure 4. Projected Market Share

Place Location
 Wais laundry on the Go, will be located at Barangay Centrala, South Cotabato. This

proposed location will be a great and advantage because the researcher found out that no one

tries to have a business-like laundry services in the area.

Pricing Scheme

The pricing scheme will be used in the business is value-based pricing because the

business believes that a strategy of setting prices primarily based on a consumer's perceived

value of the product or service in question. Value pricing is customer-focused pricing, meaning

companies base their pricing on how much the customer believes a product is worth.

Table 4.1 Pricing Scheme

Wash Dry Fold Wash Dry Press Special Items

(Per Kilo) (Per Kilo) (Per kilo)
P 23.00 P 65.00 Jeans/Maong - P 30 Bed
Sheet/Towel - P 45
Minimum of 3 Without hanger P 65 Comforter - P 65
kg

Marketing Strategy

Since it is a new business, the owner will utilize way to promote the business, which

include posting tarpaulins on the provincial road

Promotion

In promoting the sales of the proposed business, strong customer service would be

implemented. The proposed business is also encouraging customers to share a word about our

product by giving them a discount if ever they can bring as a customer because customers tend

to believe their friends recommendations.

 Internet Marketing

Today’s marketing is mostly done on the internet because the number of internet users

is rapidly increasing. People visit the internet nowadays to look for feedback and business

information. Compared to traditional forms of advertising, internet marketing is also cheaper

and more effective. It could be implemented quicker than others, where it would hit a target

audience in less than an hour or a couple of days. Wais laundry on the Go would have a

Facebook web page where customers can see all the shop details such as price, services

available and the customer's comments will also be posted.

Projected Sales

Table 4.2 shows the analysis of sale Wais laundry on the Go for the five years of its

operation and table 4.3 for the projected sales performance of the business. It indicates that for

the first year of operation it notably generates a gross income of P1,648,920.00. For the

secondary year and succeeding years the business assumes a five percent (5%) in annual gross

income.

Estimated Total No. of Total Sales in

Rate per
Kg. of Sales Weeks Year 1
Kg.
Laundry per per in a
Week Week Year
Wash-Dry-Fold 300 ₱23.00 6,900.00 52 ₱358,800.00
Wash-Dry-Press (with 72 70 5,040.00 52 262,080.00
hanger)
Wash-Dry-Press (w/o 73 65 4,745.00 52 246,740.00
hanger)
Special Items
Jeans/Maong 85 30 2,550.00 52 132,600.00
Bed Sheet/Towel 85 45 3,825.00 52 198,900.00
Comforter 85 65 5,525.00 52 287,300.00
TOTAL REVENUE 750 ₱1,486,420.00

Table 4.2 Analysis of Sale

Projected Sales Forecast

Services Year 1 Year 2 Year 3 Year 4 Year 5

Wash-Dry- ₱358,800.00 ₱288,943.2 ₱303,390.36 ₱318,559.878 ₱334,487.88
Fold

Wash-Dry- ₱262,080.00 ₱318,559.878

Press (with
hanger) ₱275,184.00 ₱288,943.2 ₱303,390.4
Wash-Dry- ₱246,740.00 ₱288,943.2 ₱3033,90.4 ₱318,559.9 ₱334487.8719
Press (w/o
hanger)
Special Items
Jeans/Maong ₱132,600.00 ₱139,230 ₱146,191.5 ₱153,501.1 ₱161,176.1288
Bed ₱198,900.00 ₱241,764.1931
Sheet/Towel ₱208,845 ₱219,287.3 ₱230,251.6
Comforter ₱287,300.00 ₱301,665 ₱316,748.3 ₱332,585.7 ₱349,214.9456
Grand Total ₱1,486,420.0 ₱1,577,951.06
0 ₱1,502,810.40 ₱1,656,848.58 ₱1,739,690.90
Table 4.3 Projected Sales Forecast
 Chapter 5
Technical/Operational Feasibility

This chapter discusses and show about the technical viability of proposed business

which comprise the layout of the business, suppliers, raw materials and procurement schedules

of equipment, machineries, furniture and fixture. It also represents the operational process and

waste disposal management.

Commercial Space for Rent

The space will undergo some sort of renovation just to maximize the space

intended for the business since the space is not that large enough to settle all the

equipments or other furniture. The rent will be 2 months deposit and one

month advance total 30,000.00 on first month and cost 10,000.00 pesos on a

monthly basis onward provided by a lease contract for minimum of 1 year

and renewable. Below shows the innovation cost for the space rented.

Estimated
Description of Jobs
Cost
Fabrication and Installation of the
following:
Cabinets 5,500.00
Counter tables 6,100.00
Divisions 5,200.00
Ironing Board 4,000.00
Total Cost for Furniture’s and
20,800.00
Fixtures
Leasehold Improvements
Electrical works for the lights and connections to
the machines including 3,000.00
the materials and labor
Painting including materials and
3,500.00
labor
Plumbing works for the installation of water
connections to the machines and drainage system 12,000.00
(septic tank)
TOTAL 18,500.00

Space

layout
 Figure 2. Layout

The floor plan was designed intended to facilitate the work

flow and show how the space looks like.

Procurement Schedules

Table 5.1 Budget Allocation

Table 5.2 Schedule of Equipment and supplies

Particulars Quantity Unit Cost Total Cost
9kg Lg washing Machine 2 64,295
128590
7kg Sensor Dry Dryer with Iron 2 46,295
Aid 92590
Water Tank 1 10,000.00 10,000.00
Exhaust fan 1 6,000.00 6,000.00
Weighing Scale 1 3,500.00 3,500.00
Steam Flat Iron 1 1,095.00 1,095.00
Computer Set 1 12,879.50 12,879.50
Total 144,065 254,654.5

Table 5.3 Schedule of Furniture & Fixture

Table 5.4 List of Utilities

Utilities Expenses Monthly Expenses Annual Expense
Telephone and Internet 2,000 24,000
Electricity 8,000 96,000
Water 10,000 120,000
Total P14,000 P168,000
 Table 5.5 List of Supplies
Particulars Quantit Unit Cost Total Cost
y
Gloves 2 99.50 199
Laundry Basket 10 200 2000
Dipper 3 90 270
Hangers 5 doz 144 720
Face Mask 2 100 200
Tagging paper 50 180 9000
Ballpens 12 5 60
Scotch tape 40 12.50 500

Record Book 11 100 1100

Calculator 1 200 200
Water Hose 20 150 3,000
Order Slip 10 337.50 33750
Plastic Bag 100 90 9000
Detergents 12 1625 19500
Fabric Softener 40 190 7600
Fabric Freshener 40 250 10000
Liquid Bleach 40 82 3280
total 3,855.50 100,180

Operational Process

Fig 24. Operating Procedure

The above chart shows the laundry process.

process is explained as below:
1. Tagging - the clothes are firstly tagged with a specific number, mentioned in the

invoice given to customers. This procedure is used for identification of clothes once

ready for collection for customers.

2. Sorting - After tagging the clothes are arranged in different sets. Some people will

sort by color. Other sort by fabric type.

3. Pre-treatment of clothes – soaking in hot water.

4. Washing - The clothes are washed in washing machine using detergent washing

powder and or bleach on white.

5. Drying - The clothes washed are transferred to dryers.

6.Packing - Once pressed, the clothes are properly hanged and covered in the plastic wrap and

then tagged so that it can be easily identified.

Waste Disposal Management

Our customers are always our priority. We would like to give them a one hundred

percent satisfaction and the maintenance of cleanliness in all areas of our store is included in

the customer requirements. So, Wais laundry on the Go encourages all the members of the

organization especially we are in the cleaning services industry to strictly comply with the set

of standards in cleanliness specifically with the proper disposal of waste.

M Wais laundry on the Go will provide two trash bins in the shop with cover and proper

label for segregation will be observed to assure the safety on the preparation of our products.

There will be one small trash bin in the counter area. The accumulated garbage per day will be

collected by the garbage collectors of the city. This kind of system will be continually observed

in our day-to-day operation.

Chapter 6
FINANCIAL FEASIBILITY

This chapter discussed the sources of funding, financial schedule, financial assumption,

balance sheet, income statement, projected cash flow statement, payback period, return on

investment, debt ration and return on assets.

 Source of Funding

Funding is the fuel that powers a business. A business without appropriate funding source

will be drown in a sea of debt. The source of funds of the proposed business is from the personal

savings of the owner amounting two million pesos (P1,000,000).

Investment Cost

The investment will be used in the payment of building construction acquisition of

machine and equipment, furniture and fixtures and working capital needed for the establishment

of the propose business.

Table 6.1 Investment Cost

Investment Cost
Particulars Amount
rental 30,000
Supplies 100,180
Equipment and Machineries 254,654.5
Furniture’s and Fixtures 20,800
Leasehold Improvements 18,500
Business Permit and Licenses 5,842
Cash on Hand 1,570,023
Total P2,000,000

Financial Schedule

Monthly 13th
No. of Month Year 1 Year 2 Year 3 Year 4 Year 5
Position Salary
employee Pay
Rate (₱)
Manager 1 9,600 9,600 124,800 124,800 124,800 124,800 124,800
Shop 8,400 327,600 327,600 327,600 327,600 327,600
3 8,400
operator
Store 8,100 105,300 105,300 105,300 105,300 105,300
1 8,100
custodian
P P557,700 P557,700 P557,700 P557,700 P557,700
Total 4 P26,100
26,100
Table 6.2 Schedule of Salaries and Wages Expenses

Table 6.3 Schedule of Employees Benefits (Employer Share)

Employees benefits Monthly Annual
SSS Employer Share (₱) 4000 48000
PHIC Employer Share (₱) 750 9000
HDMF Employer Share (₱) 500 6000
Total P 5250 P 63000

Table 6.4 Schedule of Utility Expenses

Utilities
Year 1 Year 2 Year 3 Year 4 Year 5
Expenses
Telephone 24,000 25,200 26,460 27,783 29,172.15
and
 Internet
Electricity 96,000 63,000 66,150 69,457.5 72,930.38
Water 120,000 88,200 92,610 97,240.5 102,102,53
Total of P168,000
P176,400 P185,220 P194,481 P204,205.06
Utilities

Table 6.5 Schedule of Advertising & Promotion

Advertising & Promotions
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Tarpaulin 10,000 10,500 11,025 11,576.25 12,155.06
Total P10,000 P10,500 P11,02 P11,576.25 P12,155.06
5

Table 6.7 Schedule of Permits and Licenses

Permits and
Year 1 Year 2 Year 3 Year 4 Year 5
Licenses
DTI Registration 1,000 1,050 1,102.5 1,157.63 1,215.51
BIR Registration 5,000 5,250 5,512.5 5,788.13 6,077.54
Business Permit/ 500
525 551.25 578.81 607.75
Mayor’s Permit
Barangay 200
210 220.5 231.53 243.11
Clearance
Bureau of Fire 1,500
1,575 1,653.75 1,736.44 1,823.26
Clearance
Total P8,200 P8,610 P9,040.5 P9,492.54 P9,967.17

Table 6.8 Schedule of Supplies

Particulars Quantity Unit Cost Total Cost
Gloves 2 99.50 199
Laundry Basket 10 200 2000
Dipper 3 90 270
Hangers 5 doz 144 720
Face Mask 2 100 200
Tagging paper 50 180 9000
Ballpens 12 5 60
Scotch tape 40 12.50 500

Record Book 11 100 1100

Calculator 1 200 200
Water Hose 20 150 3,000
Order Slip 10 337.50 33750
Plastic Bag 100 90 9000
Detergents 12 1625 19500
Fabric Softener 40 190 7600
Fabric Freshener 40 250 10000
Liquid Bleach 40 82 3280
total 3,855.50 100,180

Table 6.9 Schedule of Depreciation Expense

Depreciation
Yearly
Particulars Acquisition Cost Estimated life
]
Equipment and Machineries 254,654.5 5 years 50,930
Furniture & Fixtures 38,500 5 years 7,700
Total P75,956 P15,191.2
 Table 6.11 Schedule of Equipment & Machineries
Particulars Quantity Unit Cost Total Cost Depreciation
Est.
per
Life
Year (₱)
9kg Lg 2 64,295 5 128,359
washing
Machine
128590
7kg Sensor 2 46,295 5 9259
Dry Dryer
with Iron Aid 92590
Water Tank 1 10,000.00 10,000.00 5 2000
Exhaust fan 1 6,000.00 6,000.00 5 1200
Weighing 1 3,500.00 3,500.00 5 700
Scale
Steam Flat 1 1,095.00 1,095.00 5 219
Iron
Computer Set 1 12,879.50 12,879.50 5 2575.9
TOTAL 144,065 254,654.5 144,313

Table 6.12 Schedule of Furniture & Fixture

Depreciation
Yearly
Particulars Acquisition Cost Estimated life
Depreciation
Cabinets 6,500.00 5 years 1,100
Counter tables 6,100.00 5 years 1,220
Divisions 5,200.00 5 years 1040
Ironing Board 4,000.00 5 years 800
Total P20,800.00 P4,160

Table 6.15 Schedule of Projected Sales Forecast

Projected Sales Forecast

Services Year 1 Year 2 Year 3 Year 4 Year 5

Wash-Dry- ₱358,800.00 ₱376,740 ₱395,577 ₱415,355.85 ₱436,123.6425
Fold
Wash-Dry- ₱262,080.00 ₱318,559.878
Press (with
hanger) ₱275,184.00 ₱288,943.2 ₱303,390.4
Wash-Dry- ₱246,740.00 ₱334487.8719
Press (w/o
hanger) ₱288,943.2 ₱3033,90.4 ₱318,559.9
Hand Washing ₱78,000.00 ₱94,809.4875
(Wash-Dry-
Fold) ₱81,900.00 ₱85,995.00 ₱90,294.75
Hand Washing ₱84,500.00 ₱102,710.2781
(Wash-Dry-
Press) ₱88,725.00 ₱93,161.25 ₱97,819.31
Special Items
Jeans/Maong ₱132,600.00 ₱139,230 ₱146,191.5 ₱153,501.1 ₱161,176.1288
Bed ₱198,900.00 ₱241,764.1931
Sheet/Towel ₱208,845 ₱219,287.3 ₱230,251.6
Comforter ₱287,300.00 ₱301,665 ₱316,748.3 ₱332,585.7 ₱349,214.9456
Grand Total ₱1,648,920.0
₱1,761,232 ₱1,849,294 ₱1,941,758.61 ₱2,038,846.43
0

Financial Assumption

Financial Assumption

1. The proposed business will be in form of sole proprietorship.

2. The sales will increase 5% annually.

3. The operating expense will increase 5% annually except for salaries and wages,

employees benefits and depreciation expense.

4. The straight-line method will be used in the computation of depreciation.

Table 6.16 Projected Income Statement

  Year 1 Year 2 Year 3 Year 4 Year 5

Service Revenue ₱1,648,920.00 ₱1,761,232 ₱1,849,294 ₱1,941,758.61 ₱2,038,846.43

Less: Operating Expenses

Utilities Expense 168,000 176,400 185,220 194,481 204,205.06

P557,700 P557,700 P557,700 P557,700

Salaries and wages 557,700

8,200 8,610 9,040.5 9,492.54 9,967.17

Permit and Licenses

SSS/PHIC/HDMF 63000 66,150 69,457.5 72930.375 76576.89

Advertising and

Promotion
 10,000 10,500 11,025 11,576.25 12,155.06

Furniture & Fixture P20,800 P21,840 P22,932 P24,078.6 P25,282.53

Supplies Expense 100,180 105189 110448 115970.42 121768.94

RENTALS P100,000 P105,000 P110,250 P115,762.5 P121,550.625

Depreciation Expense 15,191.2 15,191.2 15,191.2 15,191.2 15,191.2

Total Operating

Expenses 1,043,071 1,066,580 1,091,264 1,117,183 1,144,397.48

Net Income ₱605,849.00 ₱694,652 ₱758,030 ₱824,575.61 ₱894,448.95

Table 6.17 Projected Cash Flow

  Year 1 Year 2 Year 3 Year 4 Year 5

Operating
Activities:          

Net Income ₱605,849.00 ₱694,652 ₱758,030 ₱824,575.61 ₱894,448.95

Add: Depreciation 15,191.2 15,191.2 15,191.2 15,191.2 15,191.2

SSS/PHIC/HDMF
Payable 63000
Cash Flow from
operating activities ₱684,040.20 ₱709,843 ₱773,221 ₱839,766.81 ₱909,640.15
           

INVESTING:          
Equipment & 254,654.5
Machineries      
P20,800
Furniture & Fixtures        
Cash Flow from 254,654.50
Investing Activities - - - -

           
Financing
Activities:          
Initial Capital of
Owner P2,000,000        
Cash from
financing activities P2,000,000 - - - -
Net Change in
Cash Flow 2,429,385.5 1,429,385.8 ₱2,139,228.50 ₱2,912,449.50 ₱3,752,216.31
Add: Beginning
cash balance -
₱709,843 ₱773,221 ₱839,766.81 ₱909,640.15
Ending Cash
Balance 1,429,385.8 ₱2,139,228.50 ₱2,912,449.50 ₱3,752,216.31 ₱4,661,856.46

Table 6.18 Projected Balance Sheet

    Year 1 Year 2 Year 3 Year 4 Year 5

             

ASSETS            
₱2,139,228 ₱2,912,449 ₱3,752,216
  Cash 1,429,385.8 ₱4,661,856
Furniture and P20,800 P20,800 P20,800 P20,800 P20,800
  Fixtures
Equipment & 254,654.5 254,654.5 254,654.5 254,654.5 254,654.5
  Machineries
Less:
Accumulated
  Depreciation (15,191.2) (30,382.4) (45,573.6) (60,764.8) (75.956)
TOTAL
ASSETS   1,668,849.10 ₱2,363,500 ₱3,121,530 ₱3,946,106 ₱4,916,435

             

LIABILITIES            
SSS/PHIC/HDMF 63000 63000 63000 63000 63000
  Payable
 Total 63000 63000 63000 63000 63000
Liabilities  
OWNER’S
EQUITY            

  Owner’s Equity P752,181 P1,231,019 P1,780,910 P2,405,407.50 P3,184,121.24

Total
Owner’s
Equity P752,181 P1,231,019 P1,780,910 P2,405,407.50 P3,184,121.24

             
TOTAL
LIABILITIE
S AND
EQUITY   ₱1,668,849.10 ₱2,363,500 ₱3,121,530 ₱3,946,106 ₱4,916,435

Table 6.19 Changes in Owner’s Equity (5 years)

Year 1 Year 2 Year 3 Year 4 Year 5

Beginning 2,000,000 ₱1,605,849.00 2,300,501.00 3,058,531.00 3,883,106.61

Capital

Add: Net
Income ₱605,849.00 ₱694,652 ₱758,030 ₱824,575.61 ₱894,448.95

Total ₱2,605,849.00 ₱2,300,501.00 3,058,531.00 3,883,106.61 4,777,555.56

Ending
Capital

Return on Investment

Probability is arguably one of the principal financial objectives of the project the rate of

return on (ROI) is a measure of the management efficiency in using available source. Capital is a

scares resource and must be used efficiently. ROI will be determined by using the formula given

on the page the higher the rate of return the more profitable is the project. The following shows

the ROI schedule of Wais Laundry On the Go.

ROI= Net Income

 Total Investment

Table 6.20 Projected Return on Investment

Year Net Income Investment ROI
Year 1 ₱605,849.00 2,000,000.00 0.30%
Year 2 ₱694,652 2,000,000.00 0.34%
Year 3 ₱758,030 2,000,000.00 0.38%
Year 4 ₱824,575.61 2,000,000.00 0.41%
Year 5 ₱894,448.95 2,000,000.00 0.45%

Payback Period

The payback period is the length of time necessary to recover the entire cost of an

investment from the resulting annual cash flow. The program shall take 0.35 years to fully

recoup its initial investment in the form of investment net cash inflow. The payback period for

the program is computed as follows.

Table 6.21 Projected Payback Period

Year Annual Cash Flow Cumulative Total
(2,000,000)
Year 1 684,040.20 (1,315,959.8)
Year 2 709,843 606,116.8
Year 3
Year 4
Year 5
Payback
Period 1.51years

Financial Ratio

A financial ratio can be well defined as a comparative magnitude of two selected

statistical values taken from the financial statements of a business enterprise. These financial

ratios can be expressed in decimal as well as percentage values. The main sources used to

calculate financial ratio include balance sheet, cash flow statement and income statement.

Debt Ratio

The debt ratio is the ratio between the liabilities and assets of the company. A low debt ratio

implies a conservative company. The table below shows the debt ratio of the company in its first

five years of operations.

Table 6.22 Debt Ratio

 Year Total Liability Total Assets Ratio
1 63000 1,668,849.10 0.00
2 63000 ₱2,363,500 0.00
63000 ₱3,121,530
3 0.00
4 63000 ₱3,946,106 0.00
5 63000 ₱4,916,435 0.00

Return on Asset

Return on asset measures the ability of the company to generate income by utilizing its

assets. It can be viewed as the centavo amount of net income generated per peso value of the

total assets of the company. The table below shows the return on assets of the company.

ROA= NET INCOME

Average total asset

Table 6.23 Return on Asset

Year Net Income Average Total Asset Ratio
20A ₱605,849.00 1,668,849.10 0.36
20B ₱694,652 ₱2,363,500 0.29
20C ₱758,030 ₱3,121,530 0.24
20D ₱824,575.61 ₱3,946,106 0.20
20E ₱894,448.95 ₱4,916,435 0.18
 Chapter 7
Corporate Social Responsibilty

Training

Training is essential for the success of a business. Laundry business requires

training for its employees, especially it in need of due care, as clothes one the basic

needs of every individual. Before being hired, employees will undergo some sort of

trainings for laundry process to evaluate if they have the capabilities required for the

position, and to ensure that they will know how to properly do their jobs to give the

customer the satisfactions they are looking for. They will be evaluated as necessary to

test their working knowledge and improvements

Motivation and Rewarding Employess

1. Recognize and appreciate about the good things employees do. They

will do less negative and will strive to do more of the positive things the

owner is recognizing. It is far easier to lead people to improved performances

by thanking them when they do it right than giving them grief when they do it

wrong.

2. Take a moment to celebrate like having a party. . It is too easy to get so caught

up in the daily struggle that you never stop to recognize the good work you

and your attendants do.

3. Praise and recognize the star performers. Some of your recognition budget

should certainly go toward spotlighting role model performances and role

model employees. This makes them feel good, encouraging them to stay on

board and keep trying hard. And it gives everyone a bit of inspiration and a

clearer idea of what you want employees to shoot for.

4. Recognize good effort, not just results. When employees have had a

tough week, throw a mini-party for them. Bring in some pizza, a

cheesecake or whatever inspires the owner and share it with the team. Or try

writing a personal thank-you card for each attendant – perhaps picking out a

different design for each and having some fun recognizing individuals in your
selection.
 CHAPTER 8

Findings, Conclusion & Recommendation

This chapter in general provides information about the socio-economic study of the

business. This will tackle the benefits that can be rendered to the customers, the owners and staff

and how to evaluate the safety of environment from the chemicals used in chicken poultry.

Findings

This chapter presents the summary of the findings of the feasibility study, the conclusions

and the suggestions recommended by the researchers.

Chapter I, it shows the background of the study, objectives, scope and delimitations,

significance, definition of terms. The scope of the study was only limited to Barangay Centrala

Surallah South Cotabato. The location of the business is accessible enough to meet a wider

range of possible customers. The business has no competitive advantage in terms of the prices

because it has no available laundry shop in the said area.

Chapter II, it shows the review of the industry was discussed. The business has no

competitive advantage in terms of the prices because it has no available laundry shop in the said

area.

Chapter III, it discussed legal forms of the business, organizational structure, manpower

requirements, duties and responsibilities. The business will be a sole proprietorship. Manage by

the owner who will supervise the employees within their authority. The business will be manned

by the total of 3 people holding the position of shope operator and store custodian. The

employees are expected to perform their assigned task.

 Chapter IV, it discussed about the service description, target market, current market trend

and opportunities, price and pricing strategy, promotional strategy, and projected sales. As a

promotional activity, the business advertises its product through posting tarpaulins in the major

streets in the Surallah south Cotabato especially in Barangay Centrala . The target markets of this

business are those people who have no time in wash their clothes.

Chapter V, it shows the service and technical description, operation process service

schedule supplies, furniture and fixture, equipment, location, building, utilities, environmental

safeguard/waste disposal and production cost needed by the business. The name of the business

is Wais :Laundry on the Go, it will operate eight o’clock in the morning (8am) to four o’clock in

the afternoon (4pm) Daily.

Chapter VI, showed the Income Statement, Statement of Cash Flow, Balance Sheet,

Financial Analysis, Balance Sheet ratio in five years prospective. It will also show different

schedules such as, Projected Annual Operating Expense, Projected Furniture and Fixture, Cash

Outflow, and Depreciation Expense. The initial capital requirement is Php 2,000,000.00. The

majority initial capital is used for the purchase of supplies, furniture and fixture, equipment, and

for operational expenses.

The projected income for the first-year operation is Php ₱605,849.00, for the second year, Php

₱694,652, Php ₱758,030, for the third year, Php ₱824,575.61for the fourth year and Php

₱894,448.95the fifth year with a payback period of 1.51 years.

Conclusion

1. The study conducted revealed the demand for the service and enabled to

come up with an efficient marketing program that will support the viability of

the business in its first stages of operation and expected to last in the long run.

2. In relation to industry analysis aspect, it shows that it has a good potential in doing the

business. The business was able to identify its competitors, the strength and its

weaknesses. It has also a strong bargaining power both in suppliers and consumers.

3. In respect to its organization and management aspect it shows a sign of positivity. The

business will be easily managed and supervised since there are only few workers to be

hired to help the daily operation of the business.

4. In marketing aspect, the business located in a proper place and it was able to identify the

target market and was able to determine its market share. Also, the business was able to

project its sales within 5 years of operation.

5. In relation to its technical and operational aspect, an encouraging result is obtained. The

business will used modernized machineries and equipment. The lay out, services process,

procurement schedule was also presented.

6. The financial aspect also shows positive result, the second year of operation is expected

to generate enough revenue to cover all the expenses incurred and at the same time

generates profit. The proposed business will be able to fully return the initial investment

within 1.51years.

7. In the corporate social responsibility, the hired workers of the business will beneficial

because the business will help improve their standard of living through salaries and

wages.
Recommendation

According on the forgoing findings and conclusion they recommend that;

1. Extensive study for other aspects of the business feasibility is conducted and the execution of the

marketing program developed accords to what really satisfies the market.

2. To the future researcher, we are hoping that this will help you to conduct related

research, and it is useful as your basis, guide and format.

3. To the customers, who are the mouth of business, this study will help the customers by

giving standardize services, and maintaining a good price. This study will also comply

the fulfillment of customers.