Professional Documents
Culture Documents
FSUU-Accontancy Program
Aparece,Marjorielou B.
Cadorna,Vina O.
Casinillo,Kissey Jen T.
Gumban,Christine Grace A.
Lorete,John Paul Nio
R.Mosende,Nerissa G.
Feasibility Study
Lovebada Bango Laundry Shop
Prepared by:
Nerissa G. Mosende
Kissey Jen T. Casinillo
Christine Grace A. Gumban
John Paul Nio R. Lorete
Marjorielou B. Aparece
Vina O. Cadorna
Adviser:
Mr. Daniel Nemeses C. Espina, CPA
FSUU-Accontancy Program | All Rights Reserved.
TABLE OF CONTENTS
I.
II.
III.
IV.
Introduction
a) Rationale
b) Business Description
c) Business Name
d) Business Location
e) Service Description
Marketing Aspect
a) Area Covered
b) Target Market
c) Competitors
d) Market Need
e) Demand Analysis
f) Supply Analysis
g) Laundry Services Offered
h) Prices
i) Income Projection
j) Advertising and Promotion
k) SWOT Analysis
Technical Aspect
a) Commercial Space for rent
b) Space Layout
c) Operating Procedure
d) Filtration Process
e) Operational Equipments
f) Laundry Cleaning Products
g) Supplies
h) Costing
Management Aspect
a) Form of Ownership
b) Business Culture
c) Manpower Requirements
d) Organizational Structure
e) Job Description and Duties
f) Segregation of Duties
g) Management Style
h) Motivating & Rewarding Employees
1
1
2
2
2
4
5
7
8
9
9
10
11
13
14
15
17
18
20
23
27
32
35
39
40
43
44
45
45
46
47
49
V.
VI.
VII.
Financial Aspect
a) Considerations
b) Pre-Operating Expenses
c) Projected Balance Sheet
d) Projected Income Statement
e) Projected Statement of Cash Flows
f) Statements in Changes in Equity
g) Return on Investment
h) Payback Period
Socio Economic Aspect
a) Contribution to the Economy
b) Contribution to the Government
c) Contribution to the Society
d) Environmental Impact
Conclusion and Recommendation
50
51
52
53
55
56
56
56
57
57
57
58
59
CHAPTER 1
INTRODUCTION
Rationale
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.
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 dont like washing their clothes because it is just a waste
of time (laziness), and some boarding houses didnt allowed
washing clothes in consideration to the consumption of water.
This is the reason why there is chance of making a lot of
money because this people will definitely seek your services.
Business Description
Butuan City as a highly urbanized city in the Philippines
emerged too many businesses nowadays. It can be seen that
numerous schools and establishment are spotted around the area
urging to look for convenience due to their busy time. And this
gives a positive outlook for some businessmen who were just
started in the industry to put their investment in certain
businesses particularly the Laundry business in which the field
is not that much penetrated.
Business Name
The right name can make your company the talk of the town
especially when it is unique and probably would catch their
attention. Therefore, the proposed name of our business is Love
Vada Bango Laundry Shop originated from the word labada bango
with love that means we will wash clothes with love, passion
and fragrance.
Business Location
The proposed business location is located at Lopez Jaena
Extension, Barangay Tandang Sora, Butuan City.
This location composes of schools like FSUU, SJIT and BCC;
establishments; apartments and boarding houses.
Service Description
The Business concept of LOVEBADA BANGO is typically
homogeneous to those other existing Laundry shops in the city.
But certain things will make it stand and that includes its
quality services, professionalism of its personnel towards its
customers.
Chapter II
MARKETING ASPECT
The marketing aspect will serve as the basis of the
financial section through the projected demand. This includes
the area covered, target market, proposed location, competitors,
the demand and supply, demand and supply gap analysis, marketing
program and SWOT analysis.
Area Covered
This is to identify a point or an area of study. Geographic
target is in Butuan City primarily located at this Barangays
Sikatuna, Humabon and Tandang Sora as a primary market. This is
3.5% of the overall barangays total of 86 that composes the
city. This location composes of schools like FSUU, SJIT and BCC;
establishments; apartments and boarding houses. Out from these
components we will determine the population of those living in
apartments and boarding houses where our target market is
situated.
Area Covered
Brgy. Humabon
Brgy.
Sikatuna
Brgy. Tandang
Sora
Total
No. Apartments
and Boarding
houses
32
Total
Population
(actual
data)
523
23
72
127
670
1,706
2,899
1. Young professionals
2. Students
3. Family
This group of market will be described their need according to
their lifestyle considering a number of potential influences on
buying behavior including the attitudes, expectations and
activities of consumers.
In order to know the population demand for the proposed
laundry business for that area in Lopez Jaena Extension, we used
the slovins formula in determining the number of respondents
for the survey questionnaires. We use the actual number of
residents in apartments and boarding houses total 2,899(fig.5)
and the margin of error would be 10%. Margin of error denotes
the allowed probability of committing an error in selecting a
small representative of the population.
N = n / (1 + ne^2)
Therefore:
N = Number of samples
n = Total population
e = Margin of error
N =
N =
Barangay
brgy. Humabon
Brgy. Sikatuna
Brgy. Tandang Sora
2899
(1+2899*.10*.10)
96.67 round of to 97
18.0%
23.1%
58.8%
100.0%
97
97
97
17
22
57
97
10
Respondents Classifications
1%
21%
students
78%
working
other
11
Market Need
The survey says that the needs of the market are of the
following factors enumerated below. Therefore this would be our
basis to better achieve customer satisfaction and they will be
able to continue availing the service.
Quality of cleanliness
Price
Timeliness and customer service
12
MARKET NEED
12%
Quality of cleanliness
29%
59%
Price
Timeliness
Area covered
Brgy. Humabon
Brgy. Sikatuna
Brgy. Tandang Sora
Total
523
670
1706
2899
429
549
1399
2377
3
3
3
projected
demand
(in kilo)
1287
1648
4197
7132
Services
Working
Hours per
day
Estimated
Cycle Time
per load
(hour)
2 hours
3 hours
Estimated
No. of loads
Capacity Per
allowed per
Load
day
(b)X 4
(a)
machines
4
1
30 kg
5 kg
Load
Capacity
per day
(axb=c)
Working
days
(d)
Loading
Capacity Per
week
(cxd=e)Kilo
120 kg
5 kg
6 days
6 days
720
30
750
Supply
7132
750
6382
13
Note:
1. Demand Analysis (Fig.10), projected demand is the estimated
kilo of clothes per week that needs to be catered by our
services.
2. Supply analysis (Fig.11), Loading Capacity per week is the
normal operating capacity that the Laundry shop can cater.
3. As seen in Fig.12, there will be a gap of 6382 (7132-750)
kilos that will never be catered. Hence which is a good
thing, since the demand for our services is higher than
what we can give. Therefore the threats of competitors to
rise up in the same area (sharing of market) wont
materially affect our sales projection.
Laundry Services Offered
The following are the list of the services to be offered based
on the needs of the market:
1. Wash-Dry-Press
2. Wash-Dry-Fold
3. Hand washing
Services to Avail
7%
19%
Wash-dry-press
wash-dry-fold
Handwashing
74%
14
Twice a week
19%
Once a week
78%
Fig. 14
Prices
Wash Dry Fold
(Per Kilo)
Handwashing
(Per kilo)
Special Items
(Per kilo)
P 23.00
P 65.00
Wash-Dry-fold P 60.00
Minimum of 3 kg
Without hanger P 65
Wash-Dry-Press P 65.00
Jeans/Maong - P 30
Bed Sheet/Towel - P 45
Comforter - P 65
Fig. 15 Prices
How much the market is willing to spend for laundry service?
Wash-Dry-Fold
17%
P23/kg
83%
P25/kg
Fig. 16 Wash-Dry-Fold
FSUU-Accontancy Program | All Rights Reserved.
15
Notes:
Fig. 17 Wash-Dry-Press
Note
On the survey provided, 72% will go for cost of
65.00/min.3kls and only 28% for the 70.00/min.3kls.
This is in consideration as a student price.
16
Fig. 18
Fig. 19
Based on this survey 38% of the market says yes that they
bring their clothes to the laundry shop, while the
remaining 62% says no. Therefore, out of the 38% that says
yes, 8% of them only bring 2 kilos and below, 21% brings 3
kilos, 34% brings 4 kilos and the remaining 37% brings 5
kilos and above.
Income Projection
SERVICE REVENUE PROJECTION
Wash-Dry-Fold
Wash-Dry-Press (with hanger)
Wash-Dry-Press (w/o hanger)
Hand Washing (Wash-Dry-Fold)
Hand Washing (Wash-Dry-Press)
Special Items
Jeans/Maong
Bed Sheet/Towel
Comforter
TOTAL REVENUE
Estimated Kg. of
Laundry per Week
300
72
73
25
25
85
85
85
750
52
52
52
Total Sales in
Year 1
358,800.00
262,080.00
246,740.00
78,000.00
84,500.00
132,600.00
198,900.00
287,300.00
1,648,920.00
17
Points
30 kls/mo. 40 kls/mo. 50kls/mo
3%
4%
5%
18
Fig. 20
SWOT ANALYSIS
I.
Strengths
II.
Weaknesses
19
III.
Opportunities
IV.
Threats
Price variations
Future competition
20
Chapter III
TECHNICAL ASPECT
This chapter provides information
that
includes
the
structures and the floor plan, operating procedures/processes
that are essential to the overall operation of the business,
proposed equipment, machineries and supplies together with their
descriptions and specifications.
Description of Jobs
Fabrication and Installation of the
following:
Cabinets
Counter tables
Divisions
Ironing Board
Total Cost for Furnitures and
Fixtures
Leasehold Improvements
Electrical works for the lights and
connections to the machines including
the materials and labor
Painting including materials and
labor
Plumbing works for the installation
of water connections to the machines
and drainage system (septic tank)
TOTAL
5,500.00
6,100.00
5,200.00
4,000.00
20,800.00
3,000.00
3,500.00
12,000.00
18,500.00
Fig. 21
21
Fig. 22
The floor plan was designed intended to facilitate the work
flow and show how the space looks like.
FSUU-Accontancy Program | All Rights Reserved.
22
Fig. 23
23
Operating Procedure
the
laundry
process.
Each
process
is
24
25
Pressing Service
1. Inspection of clothes for pressing if the fabric
allows pressing and specific temperature requirements
2. Segregation
of
clothes
according
to
size
and
temperature requirement for pressing.
3. Pressing of clothes requiring high temperature and
folding.
4. Pressing of clothes requiring medium to low heat
temperature and folding.
5. Segregation
of
clothes
according
to
tag,
identifications and tagging for pick up
Removing Stain
1. Prepare the necessary materials.
(gloves,cotton cloth, stain remover, laundry basket)
2. Lay the cotton cloth on your work area - cotton cloth
absorbs the stain while it is being removed.
3. Turn the garments to its wrong side.
4. Lay the stained part of the garment on the cotton cloth.
FSUU-Accontancy Program | All Rights Reserved.
26
Step 1:
The higher hole was inserted on
the side of the washing waste
pipe, and the lower hole is for
the pipe to the canal.
27
Step 2:
Vermin proof lid on the grey
water filter box. It comes with
a secure lid, so that will also
deter vermin.
Step 3:
Larger filter stones layer the
base of the black box.
28
Step 4:
Smaller filter stones were laid
on top of the larger stone.
Step 5:
29
Step 6:
A layer of clean sand.
Step 7:
Test run
30
Operational Equipments
Electrolux EWT904 - 9kg Top
Load Washing Machine with
T-Drive Washing Technology
Price: 22,395.00
Quantity: 2
Life Expectancy: 5 years
Body Type: Top-load washer
Total Capacity Washing
Capacity: 9kg
Number of Wash Cycles: 11
Spin Speed: 850 rpm
Dimensions: 67 x 107 x 68
cm
Drum and Interior Finish:
Stainless steel
Eco-friendly
Certification(s)
3
ticks(WELS)
Eco-friendly Feature(s):
Load Selector - Low Middle - High, Deep / Eco
Rinse
Material(s):
Zinc-coated
Body
Screen Technology
LED
light Indicator and time
display, Electronic Control
Wash Cycle Modes:
Regular
Wash, Fast Wash, Colour,
Delicates, Heavy Soil,
Woollens
Control Panel Programmes
in single knob control
Timers: Soak and delay end
function
Dispensers: Detergent,
Bleach dispenser drawer
Center Fabric Softener
Holder
Supplier:
Electrolux
located
at
the
Robinsons
Appliances
31
Health Features:
T-DRIVE
washing technology: 35%
cleaner washing
performance: Anti-residue
system
Water Efficiency: 3
ticks(WELS) Water
consumption: 8.80 L /kg
Regular wash
Noise Reduction: Stabilised
Belt-driven System
Indicators: LED Remaining
Time Display
Languages Supported
(OSD/Menu)
English
Quick Menu Options Soaking
Function- 45,30,15 min
Rinse Function - Extra,
Deep,Eco,Fast
Power Supply: 220-240 V/50
Hz
Warranty: 2 years warranty
WM-2011/007953
7kg Sensor Dry Dryer with
Iron Aid - EDS7051
Price:
18,995.00
Quantity: 2
Life Expectancy: 5 years
Body Type: Front-load Dryer
Total Capacity Drying
Capacity: 7kg
Number of Wash Cycles: 6
Spin Speed: No
Stackable: Yes
Dimensions: 600 x 845 x 620
Drum and Interior Finish:
Stainless Steel
Energy Consumption: Drying
Per Cycle: 4.46 kWh
Eco-friendly
FSUU-Accontancy Program | All Rights Reserved.
32
Certification(s):ENERGY
EFFICIENCY (MELS) - 1 ticks
Eco-friendly Feature(s):
Auto Sensing, Iron-aid
function, Reverse Tumbling
Technology
Material(s): Galvanised
Zinc-coated Body
Screen Technology: LCD
light Indicator and
Electronic Control
Wash Cycle Modes:
Normal/Delicate/Airing/90mi
n/60min/30min
Height with Lid
Open:Electronic Control
Panel
Timers:
3/6/9 hours
Safety Features
:
Safety Cut-off, Door lock
Indicators:
Drying /
Airing / End
Languages Supported
(OSD/Menu):
English
Power Supply: 220-240 V/50
Hz
Packaging Weight:
32kg
Included Accessories:
Venting kit
Warranty: 2 years warranty
33
Php 95,000.00
Life Expectancy: 5 years
Water Tank
Storage in case there will be
water disruption.
Php 10,000.00
Php 3,500.00
34
1 pc. Of Calculator
Php 200.00
Php 1,500.00
1
set
of
Dataworx
Computer Package (Black)
Budget
Php 11,879.50
35
Php 739.75
PowerClean Chemicals
KM 5 Buhangin Highway Corner
Pag-asa St. Davao City
Order Online
http://www.powerclean.com.ph/
Villa Fidelina
Ochoa Ave.cor.Lauraville
Subd.,Brgy.Limaha, Butuan City
Direct Buying
36
Liquid Bleach
Description:
Mild, safe chlorine bleach for
all purpose cleaning and
disinfection. Contains sodium
hypochlorite and releases 5-7 %
available chlorine that will
react with your fabric stain.
Effective at low temperature,
fast action and removes
FSUU-Accontancy Program | All Rights Reserved.
37
stubborn stain.
40 Gallons
Life Expectancy : 1 year
Price : P 3,280.00 @ 82 per
gallon
Paint, Oil and Grease Remover
Description:
Is a fast acting liquid spot
cleaner especially formulated
to remove paint, oil and grease
on fabric and other surfaces
without affecting color and
quality. This can also remove
unwanted bubble gum on hard
surfaces.
10 gallons
Life Expectancy : 1 year
Price : P 5,000.00 @ 500 per
gallon
Fabric Freshener
Description:
Is a water based scent
especially formulated to
eliminate undesirable odors and
enhance the freshness of newly
washed clothes. It comes in
pleasant smelling dawny,
comfort fashion and lavender
scent
40 Gallons
Life Expectancy : 1 year
Price : P 10,000.00 @ 250 per
gallon
38
Liquid Detergent
Description:
A concentrated liquid solution
which has mild surfactant
system effective for color fast
Supplies
3 pcs. Of Dipper
Life Expectancy:1 year
Php 90.00 @ 30.00 each
39
50 rolls
Roll
of
Tagging
Paper
40
Ball Pens
Life Expectancy:1 year
Php 60.00 @ 5.00 each
@12.50each
10 pcs. For
Order Slip
500
sheets
41
of
10 pcs. For
Delivery Slip
500
sheets
of
Plastics
Units
16x24
20x30
200 pcs.
100 pcs.
20x40
24x36
24x60
1 year
100 pcs.
100 pcs.
100 pcs.
1,770*2
Sando
Bags
310.00 Large
165.00 Extra
Large
285.00 Jumbo
390.00
620.00
3,540.00
Units
100 pcs.
100 pcs.
140.00
185.00
100 pcs.
330.00
655*2
1,310.00
42
Cost of Services
COSTING PER 10 kg Process
FOR WASHING MACHINE PROCESS
( WDF 8kg,WDP 2kg)*a
Direct Material
Detergent (250grams)*b
Fabric Softener (1 cup)*c
Fabric Freshener (1 cup)*d
Liquid Bleach( 1 cup)*e
Water (522L)*g
Total Direct Material Cost
DM Cost per Unit*f
Direct Labor
Wash-dry-fold DL allocation *h
Wash-dry-press DL allocation*h
Total Direct Labor Cost
DL Cost per Unit*i
Overhead-Electricity Consumption
Machine Washing(30min)
Machine 1 (.600kwh)*j
Machine 2 (.600kwh)*j
Tumble Dryer(30 min)
Dryer1 (4.46kwh)*k
Dryer2 (4.46kwh)*k
Pressing (15 min)
Flat Iron (1.258kwh)*l
Total Overhead Cost
Overhead Cost per unit
TOTAL COST
Php
Php
Php
Php
Php
4.86 Php
Php
16.25
11.88
15.63
5.13
2.54
48.88
Wash-dry-fold
8kg
Php
13.00
Php
9.50
Php
12.50
Php
4.10
Php
2.03
Php
39.10
Php
4.89
Php
Php
Php
76.57 Php
89.33
165.90 Php
Php
Wash-dry-press
2kg
Php
3.25
Php
2.38
Php
3.13
Php
1.03
Php
0.51
Php
9.78
Php
4.89
76.57
Php
76.57 Php
9.57 Php
89.33
89.33
11.17
2.39 Php
2.39 Php
1.91 Php
1.91 Php
0.48
0.48
17.78 Php
17.78 Php
14.22 Php
14.22 Php
3.56
3.56
2.51
40.35 Php
Php
Php
32.28 Php
4.03 Php
2.51
10.58
1.32
Php
255.12 Php
Php
147.95 Php
18.49 Php
109.68
54.84
Rate
Total Cost
Direct Material
Detergent (125grams)*m
Fabric Softener (1/2cup)*n
Fabric Freshener (1/2 cup)*o
Liquid Bleach( 1/2cup)*p
Water (391.5L)*q
Total Direct Material
DM Cost per Unit*r
4.86
Direct Labor
Handwash-dry-fold *s
total Direct Labor
Direct Labor unit cost
Overhead
Tumble Dryer(15 min)
Dryer1 (4.46kwh)*t
Total Overhead
Cost per unit
8.13
5.94
7.81
2.56
1.90
26.34
5.27
252.24
252.24
50.45
7.9734
8.89
8.89
1.78
287.47
57.49
43
CHAPTER IV
MANAGEMENT ASPECT
This chapter provides information about the management aspect
of the business. Basically, it shows the form of ownership which
the business have. This includes how business will be managed,
the control and supervision matters and even the start-up cost
of the business.
It will also provide you with information
about the basic requirements and procedures in registering the
business and the government agencies that the business is
related to.
The
management
aspect
will
determine
the
successful
realization of the business. Thats why the study of the
officers, key personnel and manpower requirements will be very
important matter in this chapter. Business culture which
includes the operating schedule and the day to day monitoring
will also be part of this chapter.
Form of Ownership
I.
44
II.
Registration
Essentially, a sole proprietor business legally
comes into existence when the business owner
registers the business name and obtains any relevant
business licenses.
Government agencies for registration
Department of Trade and Industry
Local Government Units where your business is
located:
a. Barangay
b. Mayors Office
Bureau of Internal Revenue
Legally Required Registration of Employee Benefits
Employers are legally required to provide certain
benefits for employees. Employee benefits play an
important role in the lives of employees as well
as their families. For that reason, the benefits
you offer can be a deciding factor for a
potential employees decision to work at your
business.
Employees registration to the following:
a. SSS
b. PhilHealth
c. Pag-ibig HDMF
Basic requirements and procedure in registering a Sole
Proprietor Business
1. Register a business name at DTI
1) Come up with three business names
2) Search in the DTIs website if there is an
existing name similar to yours
3) If your business name is available, fill up
business name (BN) Application Form
4) Submit your completed BN application form to
DTIs offices/branch
45
46
Valid ID
4) Pay the registration form (BIR form 0605)
5) Register your book of accounts and
receipts/invoices
6) Claim your Certificate of Registration (BIR
Form 2303)
Business Permit and Licenses
Registration with DTI
Registration with Barangay
Business Permit in Mayor's Office
Registration in BIR
Total
Amount of
Registration
215.00
100.00
5,027.00
500.00
5,842.00
Business Culture
I.
II.
Monitoring of sales
Inventory
Delivery and Pick-up
47
Physical Requirements:
-
II.
-
48
Organizational Structure
Route worker
pick up,deliver,collect
Machine
washers (2)
Inspector/Supervisor
Counter Clerk
Extractor
Operator(2)
Manager
Owner and Bookkeeper
Machine washers
Weigh laundry and place it in huge washing machines.
Machine washers control the machine settings for each kind
of material. This includes setting the proper temperature,
washing speed and water and suds level and adding the right
amount of bleaches and rinses. After the laundry is washed
and rinsed,
II.
Counter clerk
Received laundries from customers, give back clean laundry,
scheduling the date of pick-up and delivery with the
customers, and billing.
III. Bookkeeper
Analyzing and recording the transaction and presenting the
reports on time.
III. Markers or sorters tag
Mark the laundries so that they can be returned to the
appropriate customer. They usually remove loose buttons and
mark items that need to be mended.
FSUU-Accontancy Program | All Rights Reserved.
49
IV.
Extractor operators
Place it in extractors, which spin most of the water out of
it. The laundry then goes to tumbler operators who put it
in drying machines that tumble it dry. Some items, such as
blankets and rugs, may be hung in heated rooms to dry.
V.
Inspector
Check the finished laundry. If it needs rewashing or
repressing, he sends it back to the proper department. He
sends some pieces to menders, who do repairs by hand or
machine. Assemblers collect all the items belonging to each
customer. Finally, baggers or bundle wrappers place the
laundry in bags or bundles and attach invoices, which
indicate how much money the customer owes.
VI.
Finishers
Fold and press the clean, dry laundry. When requested, they
press. They also may just fold and stack. Other finishers
work on shirts, ruffled curtains, blankets, or other items
that require special pressing and finishing. To get
professional results, they use forms designed for certain
parts of clothing, such as shirt sleeves, shirt collars, or
the bodies of skirts. They also use hand irons to finish
certain items that cannot be done on the forms. The
finished items are then folded or placed on hangers.
Segregation of Duties
I.
II.
Single Duty
Route Worker
Bookkeeper-Owner
50
Extractor
person)
operator
and
the
Finisher(could
be
same
Management Style
I.
Hiring Process
51
52
No.
Min.Wage/
Working
Monthly
Day
Days
Gross Pay
DEDUCTIONS
SSS Premium
ER
Total
PhilHealth Premium
EE
PAG-IBIG Premium
ER
EE
ER
Deductions
EE
Inspector/Supervisor
268.00
26
6,968.00
525.70
254.30
100.00
100.00
139.36
139.36
493.66
6,474.34
Route Worker
268.00
26
6,968.00
525.70
254.30
100.00
100.00
139.36
139.36
493.66
6,474.34
Exctractor Operator
268.00
26
6,968.00
525.70
254.30
100.00
100.00
139.36
139.36
493.66
12,948.68
Machine Washers
268.00
26
6,968.00
525.70
254.30
100.00
100.00
139.36
139.36
493.66
12,948.68
TOTAL
TOTAL PER ANNUM
27,872.00
2,102.80
1,017.20
400.00
400.00
557.44
557.44
1,974.64
38,846.04
334,464.00
25,233.60
12,206.40
4,800.00
4,800.00
6,689.28
6,689.28
23,695.68
466,152.48
Employer's Contribution
36,722.88
Employee's
Contribution
Annual
Withholding
tax
23,695.68
-
53
CHAPTER V
FINANCIAL ASPECT
The purpose of this chapter is to project how much startup
capital is needed, sources of capital, return on investments and
other financial considerations.
Considerations
1. The owner shall invest P 500,000.00 in the business as
shown in the next page, which approximates the total preoperating expenses.
2. A service rendered is on cash basis.
3. The equipment and leasehold improvements are to be
depreciated on a straight-line basis.
4. For simplicity, all employees are presumed to be single
and that they have no dependents for purposes of
computing the withholding tax.
5. Income tax is computed using the tabular tax rate for
individuals provided by the National Internal Revenue
Code.
6. There are no other current liabilities aside from the
employee benefits and income tax since the entity pays
its obligations before the end of the year.
7. Owner/Manager will withdraw instead of salary.
54
89,580.00
75,980.00
165,560.00
Equipments
Water Tank
Exhaust fan
Weighing Scale
Steam Flat Iron
Computer Set
10,000.00
6,000.00
3,500.00
1,095.00
11,879.50
32,474.50
Vehicle
Multicab
150,000.00
11,500.00
18,500.00
Leasehold Improvements
Furnitures and Fixtures
Advertising Expenses
Leaflets and flyers
Tarpaulin
3,000.00
2,500.00
5,500.00
Gloves
Laundry Basket
Dipper
Hangers
Face Mask
Plastic Basin
Tagging paper
Ballpens
Scotch tape
Record Book
Calculator
Water Hose
Fire Extinguisher
Order Slip
Delivery Slip
Plastic Bag
1 sq.meter of Black Shade Cloth
Plastic Container (for filtration process)
Sando Bags
199.00
2,000.00
90.00
4,000.00
100.00
2,250.00
9,000.00
60.00
500.00
150.00
200.00
1,500.00
1,600.00
1,687.50
2,600.00
3,540.00
100.00
739.75
1,310.00
31,626.25
Supplies, etc.
Cleaning Products
Detergents
Fabric Softener
Fabric Freshener
Liquid Bleach
Paint Oil and Grease Remover
Duties and Licenses
Rent
TOTAL
19,500.00
7,600.00
10,000.00
3,280.00
5,000.00
45,380.00
5,842.00
30,000.00
496,382.75
55
Lovebada Bango
PROJECTED FIVE YEAR COMPARATIVE BALANCE SHEET
Year 1
Year 2
Year 3
Year 4
Year 5
ASSETS
Current Assets
Cash
Supplies Inventories
Total Current Assets
660,841.65
2,269.00
884,816.46
2,495.90
982,166.09
2,745.49
970,134.35
3,020.04
623,783.09
3,322.04
663,110.65
887,312.36
984,911.58
973,154.39
627,105.13
348,034.50
348,034.50
348,034.50
348,034.50
348,034.50
50,606.46
101,212.92
151,819.38
202,425.84
253,032.30
11,500.00
11,500.00
11,500.00
11,500.00
11,500.00
2,300.00
4,600.00
6,900.00
9,200.00
11,500.00
18,500.00
3,700.00
18,500.00
7,400.00
18,500.00
11,100.00
18,500.00
14,800.00
18,500.00
18,500.00
PHP 321,428.04
PHP 264,821.58
PHP 208,215.12
PHP 151,608.66
PHP 95,002.20
PHP 984,538.69
PHP 1,152,133.94
PHP 1,193,126.70
PHP 1,124,763.05
PHP 722,107.33
4,680.00
4,680.00
4,680.00
4,680.00
4,680.00
Due to Philhealth
1,200.00
1,200.00
1,200.00
1,200.00
1,200.00
Due to PAG-IBIG
Income Tax Payable
1,672.32
178,435.64
1,672.32
232,529.88
1,672.32
286,127.25
1,672.32
345,084.35
1,672.32
410,577.16
PHP 185,987.96
PHP 240,082.20
PHP 293,679.57
PHP 352,636.67
PHP 418,129.48
0.00
0.00
0.00
0.00
0.00
PHP 185,987.96
PHP 240,082.20
PHP 293,679.57
PHP 352,636.67
PHP 418,129.48
798,550.73
912,051.73
899,447.14
772,126.38
303,977.85
PHP 984,538.69
PHP 1,152,133.94
PHP 1,193,126.70
PHP 1,124,763.05
PHP 722,107.33
56
Lovebada Bango
PROJECTED FIVE YEAR COMPARATIVE INCOME STATEMENT
Year 1
Year 2
Year 3
Year 4
Year 5
Service Revenues
PHP 1,648,920.00
PHP 1,813,812.00
PHP 1,995,193.20
PHP 2,194,712.52
PHP 2,414,183.77
Less: Discounts
49,467.60
54,414.36
59,855.80
65,841.38
72,425.51
PHP 1,599,452.40
PHP 1,759,397.64
PHP 1,935,337.40
PHP 2,128,871.14
PHP 2,341,758.26
392,968.15
399,548.25
404,517.36
409,983.38
415,996.00
PHP 1,206,484.25
PHP 1,359,849.39
PHP 1,530,820.04
PHP 1,718,887.76
PHP 1,925,762.25
167,232.00
167,232.00
167,232.00
167,232.00
167,232.00
35,213.31
35,213.31
35,213.31
35,213.31
35,213.31
2,300.00
2,300.00
2,300.00
2,300.00
2,300.00
3,700.00
3,700.00
3,700.00
3,700.00
3,700.00
140,000.00
120,000.00
120,000.00
120,000.00
120,000.00
31,626.25
34,788.88
38,267.76
42,094.54
46,303.99
5,500.00
3,000.00
3,000.00
3,000.00
1,000.00
37,850.40
37,850.40
37,850.40
37,850.40
37,850.40
PhilHealth Contribution
7,200.00
7,200.00
7,200.00
7,200.00
7,200.00
PAG-IBIG Contribution
10,033.92
10,033.92
10,033.92
10,033.92
10,033.92
SSS contribution
5,842.00
2,500.00
2,500.00
2,500.00
2,500.00
38,000.00
38,000.00
38,000.00
38,000.00
38,000.00
5,000.00
12,000.00
12,000.00
12,000.00
12,000.00
489,497.88
473,818.51
477,297.39
481,124.17
483,333.62
PHP 716,986.37
PHP 886,030.89
PHP 1,053,522.65
PHP 1,237,763.59
PHP 1,442,428.63
PHP 178,435.64
232,529.88
286,127.25
345,084.35
410,577.16
PHP 538,550.73
PHP 653,501.00
PHP 767,395.40
PHP 892,679.24
PHP 1,031,851.47
Utilities
Repairs and Maintenance
Total General and Administrative Exp
Year 2
2,269.00
Year 3
2,495.90
Year 4
2,745.49
Year 5
3,020.04
Purchases
Freight-in
45,380.00
2,269.00
49,918.00
2,495.90
54,909.80
2,745.49
60,400.78
3,020.04
66,440.86
3,322.04
Total Purchases
Purchase Discounts
Net Purchases
47,649.00
2,269.00
45,380.00
52,413.90
2,495.90
49,918.00
57,655.29
2,745.49
54,909.80
63,420.82
3,020.04
60,400.78
69,762.90
3,322.04
66,440.86
45,380.00
2,269.00
52,187.00
2,495.90
57,405.70
2,745.49
63,146.27
3,020.04
69,460.90
3,322.04
43,111.00
49,691.10
54,660.21
60,126.23
66,138.85
334,464.00
15,393.15
334,464.00
15,393.15
334,464.00
15,393.15
334,464.00
15,393.15
334,464.00
15,393.15
392,968.15
399,548.25
404,517.36
409,983.38
415,996.00
Inventory, Jan
57
Description
1. Gasoline
2. Telephone
3. Electricity
4. Water
5. Computer
100
0.191362
3.18936
0.486
10.04648
In One Year
Total
312 31,200.00
312
59.70
312
995.08
312
151.63
312
3,134.50
35,540.92
Lovebada Bango
Depreciation Table
Equipments
Cost/Equipment/F
urniture
Quantity
Total Acquisition Cost
9kg Top Load Washing Machine with TDrive Washing Technology
7kg Sensor Dry Dryer with Iron Aid
Steam Flat Iron
Direct Equipment - Overhead
Multicab
Water Tank
Computer Package
Weighing Scale
Exhaust Fan
Total Depreciation Equipments
Furnitures and Fixtures
Leasehold Improvements
TOTAL
Scrap Value
4
4
1
22,395.00
18,995.00
1,095.00
89,580.00
75,980.00
1,095.00
8,958.00
7,598.00
109.50
10
10
2
1
1
1
1
1
150,000.00
10,000.00
11,879.50
3,500.00
6,000.00
150,000.00
10,000.00
11,879.50
3,500.00
6,000.00
348,034.50
15,000.00
1,000.00
1,187.95
350.00
600.00
5
5
5
2
2
18,500.00
11,500.00
18,500.00
11,500.00
378,034.50
8,062.20
6,838.20
492.75
15,393.15
27,000.00
1,800.00
2,138.31
1,575.00
2,700.00
35,213.31
5
5
3,700.00
2,300.00
56,606.46
58
Year 2
Year 3
Year 4
Year 5
PHP 1,599,452.40
PHP 1,759,397.64
PHP 1,935,337.40
PHP 2,128,871.14
PHP 2,341,758.26
45,380.00
49,918.00
54,909.80
60,400.78
66,440.86
5,500.00
3,000.00
3,000.00
3,000.00
1,000.00
38,000.00
38,000.00
38,000.00
38,000.00
38,000.00
Payment of supplies
31,626.25
34,788.88
38,267.76
42,094.54
46,303.99
140,000.00
120,000.00
120,000.00
120,000.00
120,000.00
5,000.00
12,000.00
12,000.00
12,000.00
12,000.00
466,152.48
466,152.48
466,152.48
466,152.48
466,152.48
83,075.52
90,627.84
90,627.84
90,627.84
90,627.84
5,842.00
2,500.00
2,500.00
2,500.00
2,500.00
Purchase of Inventory
Payment of Rent
Payment of Repairs and Maintenance
Payment of Employee Salaries / Wages
0.00
178,435.64
232,529.88
286,127.25
345,084.35
778,876.15
763,974.81
877,349.64
1,007,968.26
1,153,648.74
366,534.50
0.00
0.00
0.00
0.00
11,500.00
0.00
0.00
0.00
0.00
378,034.50
0.00
0.00
0.00
0.00
500,000.00
0.00
0.00
0.00
0.00
240,000.00
540,000.00
780,000.00
1,020,000.00
1,500,000.00
260,000.00
-540,000.00
-780,000.00
-1,020,000.00
-1,500,000.00
660,841.65
223,974.81
97,349.64
-12,031.74
-346,351.26
PHP 660,841.65
884,816.46
982,166.09
970,134.35
PHP 884,816.46
PHP 982,166.09
PHP 970,134.35
PHP 623,783.09
PHP 660,841.65
59
Lovebada Bango
PROJECTED STATEMENT OF CHANGES in OWNER'S EQUITY
YEAR
Beginning Balance
A, Capital
A, Capital
A, Capital
A, Capital
A, Capital
PHP 798,550.73
PHP 912,051.73
PHP 899,447.14
PHP 772,126.38
PHP 0.00
Add: Investment
500,000.00
Net Income
538,550.73
653,501.00
767,395.40
892,679.24
1,031,851.47
PHP 1,038,550.73
PHP 1,452,051.73
PHP 1,679,447.14
PHP 1,792,126.38
PHP 1,803,977.85
240,000.00
540,000.00
780,000.00
1,020,000.00
1,500,000.00
PHP 798,550.73
PHP 912,051.73
PHP 899,447.14
PHP 772,126.38
PHP 303,977.85
Total
Less: Withdrawals
Ending Capital Balance
0.00
0.00
0.00
0.00
Net Income
Divided by: Average Investment
ROI Percentage
Year 1
538,550.73
984,538.69
0.547
Return On Investment
Year 2
653,501.00
1,068,336.31
0.612
Year 3
767,395.40
1,172,630.32
0.654
Year4
892,679.24
1,158,944.88
0.770
Year 5
1,031,851.47
923,435.19
1.117
Computation:
500,000.00
0.67
In 8 months
60
Chapter VI
SOCIO ECONOMIC-STUDY AND ENVIRONMENTAL IMPACT
This chapter in general provides information about the
socio
economic
study
of
the
business
as
well
as
its
environmental impact. This will tackle the benefits that can be
rendered to the customers, the owners and the staff and how to
keep the environment safe from the chemicals that are main
components of the laundry business.
Socio-Economic
The proposed laundry business, Lovebada Bango will bring
satisfaction to customers, who are looking for a laundry shop
that will cater good services of cleaning their clothes at a
reasonable price. The business will help the customers or
individuals to maximize their time for other work and serve
comfort to the customers.
Contribution to the Economy
The proposed business will benefit the economy through
providing employment to every individual especially within the
resident covered by the study. This will give the hired
employees and their families their source of income for their
living needs. This business will support local workers. It will
also promote the business and also contribute to the competition
which will lower the price of the product but will maintain the
quality of the products.
Contribution to the Government
As Filipino citizens, the business owners will pay their
tax liabilities mandated by the law. Tax will help the
government generate funds for the improvement of public service
and government projects.
Contribution to the Society
Lovebada Bango business will keep this town marketable to
attract more investors that will help the community for its
improvements and modernization, which, in turn leads to money
placed directly into the community.
FSUU-Accontancy Program | All Rights Reserved.
61
Environmental Impact
Environmental impact of cleaning agents is the consequences
of chemicals contained in the products. We can't deny the fact
that our environment is the first affected by what we are doing
especially when it involves upgrading our works through the help
of technology. Simple things like using a car as a means of
transportation can contribute or rather give impact to our
environment.
Laundry business like Love Vada Bango, perhaps gives an
impact to our environment. The machines that we used emit
greenhouse gasses (CO2) that add effect to what we are
experiencing nowadays, the "global warming".
Another thing is the used of detergents and bleaches in
washing garments. Although the place is not near the river in
which fishes could die, detergents may still affect our
environment. Like lots of fillers used in powder detergents are
poured in drains causing wastage of useful products like common
salt / washing soda and choking of drain / sewerage system.
Components of detergents like sodium sulphate can wreak havoc on
septic system. Synthetic detergents and our laundry practices
are contributing to our ground level water pollution.
The laundry business is aware of its harm to the
environment from the chemical substance that will be used as
stated above. Since the proposed business have to make sure that
it will not cause any harm to the people and environment as
well, it has to make sure to treat every water it throws.
The water treatment will use filtration system for removal
of contaminants by chemical and physical bonding. The proposed
business will make this process cost friendly and more
effective.
62
Chapter VII
CONCLUSION AND RECOMMENDATION
The market study determined the demand for service through
research on the residents on the particular area from Brgy.
Sikatuna, Tandang Sora and Humabon. 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.
Generally, Lovebada Bango Laundry Shop is seen to be
feasible upon studying its location, market demand and the
factors affecting the market. It is recommended that an
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.
63