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 Lavandera” laundry shop. A. Name of the Enterprise Biba Lavandera Laundry Shop
signifies the sun and active operation
name of the business biba
signifies water and cleanliness
name of the industry Figure I. Biba Lavandera Logo
The business logo shows a bubbly girl to represent Biba, doing the laundry and the sun to denote a bright day 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. 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” or a laundress is a lady who does the cleaning of the clothes through manual washing. It is the traditional term for the lady that a person hires to do the laundries. Thus, that is how Biba Lavendera originated and the thought of the name gives an extraordinary attention for the target audience to build a new image in the market.
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. 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 84 sq2 and the laundry shop is expected to occupy 45 sq2. Originally, the location was occupied by a salon. Since the owner of the business owns the location, there will be no cost for occupying the space. 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. Strengths of the location: The size and layout of the subdivision lends itself to easy manageability of its resources. There is a stable electric power, water supply and telecommunication services. The subdivision is developing more houses and expanding its area. The location is less prone to natural disasters because of its well- developed structures. The people are open to innovation.
Figure 1. 2. Map Location of Robinsons Homes, Antipolo City
Figure 1.3. Robinsons Homes Subdivision Map
Figure1. 4. Closer view of the Project Site
Figure 1.5. Exterior of the Store
Wash Room
Main Door(front view)
Toilet
Fire exit Figure 1.6. Interior of the Store
Main Door (Back view)
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 to 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 as 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 stuff 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 To be able to expand the business in other areas of the community in its three operating years. To gain 50% of loyal customers in a year. 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. To establish a good brand to customers and gain brand loyalty in its first three months of operation by prevailing a socially responsible enterprise. 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. In 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 Laundry is a noun that refers to the act of washing clothing and linens, the place where that washing is done, and/or that which needs to be, is being laundered. Laundry was first done in watercourses, letting the water carry away the materials which could cause stains and smells. Laundry is still done this way in some less industrialized areas and rural regions. Agitation helps remove the dirt, so the laundry is often rubbed, twisted or slapped against flat rocks. Wooden bats or clubs could be used to help with beating the dirt out. These were often called washing beetles or bats and could be used by the waterside on a rock (a beetling-stone), on a block (battling-block), or on a board. Various chemicals may be used to increase the solvent power of water, such as the compounds in soaproot or yuccs-root used by the Native American tribes. Soap, a compound made of lye (from wood-ash) and fat, is an ancient and very common laundry aid. However,modern washing machines typically use powdered or liquid laundry detergent in place of more traditional soap. When no water courses are available, laundry was done in water-tight vessels. Sometimes, large metal cauldrons were filled with fresh water and heated over a fire; boiling
water was even more effective than cold water in removing dirt. The washboarad, a corrugated slab of a hard material such as metal. Replaced cold rocks as a surface for loosening soil. Once clean, the clothes were wrung out – twisted to remove most of the water. Then they were hung up on poles or clothes line to air dry. Or sometimes just spread out on clean grass. The industrial revolution completely transformed the laundry technology. The MANGLE was developed in the 18th century – two long rollers in a frame and a crank to revolve them. A laundry-worker took sopping wet clothing and cranked it through the mangle, compressing the cloth and expelling the excess water. The mangle was much quicker than hand twisting. It was a variation on the box mangle used primarily for pressing and smoothing cloth. Meanwhile, 18th century inventors further mechanized the laundry process with various hand-operated washing machines. Most involved turning a handle to move paddles inside a tub. Then some early 20th century machines used an electrically powered agitator to replace tedious hand rubbing against a washboard. Many of these were simply a tub on legs, with a handoperated mangle on top. Later, the mangle too, was electrically powered, then replaced by a perforated double tub, which spun out the excess water in a spin cycle. In the United States and Canada, in the late 19th and early 20th century, the occupation of laundry worker was heavily identified with Chinese Americans. Discrimination, lack of English language skills, and lack of capital kept Chinese Americans out of most desirable careers. Around 1900, one in four ethnic Chinesemen in the U.S. worked in a laundry shop, typically working 10 to 16 hours a day. Today, innovation has emerged worldwide and the use of technology is applied everywhere, even on household chores. The use of washing machine has been accepted as an important appliance at home for an averaged-income family. It serves as an effective and attractive way of saving time and effort for washing dirty clothes. Before, people hire a person to do the laundries for some reasons. However, people come into realization about the essence of how technology could lessen the workload. Although, some people still hire a person to do their laundries especially for delicate fabrics, washing machines are always adamant as a helpful tool. Choosing the right business to launch does not have to be complicated but there are certain factors that have to be taken account. Also, the group considered the business to have an exceptional growth potential and having a high financial stability. Laundry shops are a multi-
million peso industry that is proven to be recession proof. Clothing is a necessity for people and should be cleaned. Putting up a laundry shop does not have to invest for an extensive inventory. Laundry services may not appear to be extravagant as any other businesses but it (more often than not) makes the owners earn millions. That is because there is an indefinite shortage of dirty clothes. A lot of people take their clothes to a laundry shop and hundred thousands of new kinds of garments have delicate fabrics that need to be dry cleaned only or washed in a careful manner. This kind of business is not seasonal because customers are apt to have their clothes cleaned in a specialized way. Certainly, laundry shop is seen to be a need for the residents of the Robinsons Homes. 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 for having clean clothing that is done professionally.
ii. Project Timetable Status PROJECT TIME TABLE
DURATION ACTIVITY Project Creation Feasibility Study Preparation Legalizing the Registration Building and Facility Renovation Dry Run Operation Start of the Operation July 2009- January 2010 July August- September October October- November December January
The project is expected to be in operation for ten years and be able to promote 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 project is expected to be operational next year by the start of the year.
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 is through the saving of the owner, Jenibe A. Bernil (sister of one of the group members). 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 owner chose to finance the business because it will lessen the cost of interests and putting up a laundry is a good investment.
v. Investment costs The estimated cost of cash investment is P150, 000 excluding land and other assets. Funds will be allocated as follows (php): Machineries and Equipments Cost of Renovation Furniture and Fixtures Promotion and Advertisement Supplies (good for the first operating year) Total P 72, 000 9, 200 3, 800 2, 400 61, 332 P 148, 758
(a detailed analysis of costs will be further discussed on the following chapters)
G. Major Assumptions and Summary of Findings and Conclusion
i. Market Feasibility Biba Lavandera is seen to be feasible upon studying its location, market demand and the factors affecting the market. Accordingly, 25% of the market demand is not able to satisfy by the competitor. The total market size yields a larger market for the competitor and thus, it needs more supply to meet the increasing demand of the residents of Robinsons Homes. Also, the ongoing expansion and development of the subdivision depicts the increase on the demand that has to be met by the supply. Factors such as the preferences, income, population growth and prices favor for opening up a new business and opportunity for the residents to have an alternative. An efficient marketing program is then created to satisfy the demand of the market and attain profitability for the company.
ii. Technical Feasibility The service quality of Biba Lavandera is ensured through the selection of the best equipments available near the location. The accessibility and advantageous use of the resources
in order to produce the highest possible quality of the service is measured with the consideration of low cost. The quality of the service allows the business to compete with J & M laundry shop. Biba Lavandera is suitable for the residents of Robinsons Homes because of their tastes and preferences. The services available are much better than its competitor because of it being new to the market and addressing the unsatisfied demand of the market in terms of store location, layout, new machines and equipments and a good ambience. Also, employees are required to give a hundred percent of customer service that will help retain customers and develop brand loyalty.
iii. Financial Feasibility Testing the liquidity of the company gives the idea whether the obligations are met. The financial study shows the performance of the Biba Lavandera with regard to its profitability and capability to operate in the coming years.
iv. Socio- economic Feasibility Biba Lavandera prevails to be beneficial to the community and also the whole country. Its compliance to the policies and responsibility for taking its part as a legal entity is done by securing permits and paying taxes. Socio-economic desirability is attained while maintaining profits. v. Management Feasibility Biba Lavandera’s organizational structure is composed of the owner and three employees (washer- receptionist-washer). Basically, the three employees are compensated according to the minimum wage which is Php47.75 per hourly rate plus the SSS and Philhealth benefits. Shifting schedules are made in order for them to work 8 hours daily with one rest day per week. Selection of the employees are based according to their skills and fully guided on how operations are held. Establishing a good rapport and employee- employer relationship is a must for an efficient work to be able to attain the goals and objectives.