feasibility studies: laundry shop
TRANSCRIPT
Group 1FEASIBILITY STUDY
LAUNDRY SHOP
By: Aileen D. Santos
A. Name of the EnterpriseA business name is one of the most essential things
to be prepared in starting a business
La Lovehan Ko originated from the word “ lalabhan ko”
“laba”+“love” = La Lovehan that means we will wash clothes with love and passion
B. Location
The location of the business is at Blk 79 lot 3 Ginseng Road, Robinsons Homes East Bgy. San Jose, Antipolo City. La Lovehan Ko is inside the Robinsons Homes.
This is the map of the whole Robinsons Homes East which has approximately 3, 400-4,000 occupied houses (from wikimapia).
The lot measures 24 sq2 and the laundry shop is expected to occupy 16 sq2.
The rates of renting the place range from 4,000php to 5,000php a month since it is located on the main road.
This is the exact location of the business inside the Robinsons Homes.
C. Description of the Projectis intended for the residents of Robinsons
HomesLa Lovehan Ko significantly acts a helper
for the people who does not have enough time to do the laundry
is basically to help the residents lessen their workload and ensure that their clothes are clean
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 ObjectivesTo 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 La Lovehan Ko 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 Criteriaadheres 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.
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.
F. Highlights of the ProjectI. History
Originating from a water refilling station up to the laundry shop.
A water refilling station may be viable in the location however a lot of competitors are already operating inside the community so the group though of a different business where in the target audience could focus their attention into; and that is a laundry shop.
This kind of business does not require much effort for the customers and the business owners as well.
For the business owners, hiring few employees that would manage the business is just the only task to do.
Thus, the group thought of this kind of business for practicability and demand from the target audience.
II. Project Timetable StatusThe project is expected to be in operation for ten
years and be able to be promoted to a different stage at a later time such as extending a detergent store near the laundry shop.
The business will still be operational after the expected year; however the focus of the business will be more on the expansion of the industry.
A laundry shop is not new in the market though so product innovation and sales management are important in order for the business to grow.
The launching of the business has to be unique and catchy to attract prospects in the future and develop a loyalty for the brand.
III. Nature of the IndustryLaundry industry is a strong and energetic
business. The biggest threat for the business is the
competition. Laundry shops are easily managed through the
use of new technology. 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 costsThe mode of financing will be from the
partnership of college friends. It will come from the savings and this
business will be part of their investment. A laundry shop is a not big business that
needs an extravagant capital so there is no need to borrow from the bank or a lending company.
The partners chose to finance the business because it will lessen the cost of interests.
Market StudyMarket StudyBy: Charisse Tadena
A. Product/Service DescriptionI. NameII. Features/Services
- Wash-Dry-Fold - Wash-Dry-Press - Pressing - Dry Cleaning - Hand WashingIII. Major Users of the Product
B. Demand-Supply Analysis Demand
- the target market mostly composed of the residents of Robinsons Homes East, Barangay San Jose, Antipolo City
Primary Market
Secondary Market
DEMAND PROJECTION FOR THE NEXT 5 YEARS
Projected Years Previous Year’s
Demand (a)
Average Population
Growth
(b) =(a x 1.5%)
Projected Yearly
Demand
(a + b)
2009
2010
2011
2012
2013
12,480,000
12,667,200
12,857,208
13,050,066.12
13,245,817.11
187,200
190,008
192,858.12
195,750.99
198,687.26
12,667,200
12,857,208
13,050,066.12
13,245,817.11
13,444,504.37
NATURE OF COMPETITION
Laundry
Shop
Location Operating
Hours
Estimated
Meters away
Estimated
Daily
Customers
JM Laundry
Shop
Robinsons
Homes East
Monday to
Sunday 300 500 households
SUPPLY PROJECTION FOR THE NEXT 5 YEARS
YearPrevious Year’s
Supply (a)
Average
Population
Growth
(b) =(a x 1.5%)
Projected Yearly
Supply
(a + b)
2009
2010
2011
2012
2013
9,360,000
9,500,400
9,642,906
9,787,549.59
9,934,362.83
140,400
142,506
144,643.59
146,813.24
149,015.44
9,500,400
9,642,906
9,787,549.59
9,934,362.83
10,083,378.27
DEMAND AND SUPPLY ANALYSISYears Demand
(a)
Supply
(b)
D-S Gap
c = (a-b)
Percent
Unsatisfied
(d)= (c/a)
(100%)
2009
2010
2011
2012
2013
12,480,000
12,667,200
12,857,208
13,050,066.12
13,245,817.11
9,360,000
9,500,400
9,642,906
9,787,549.59
9,934,362.83
3,120,000
3,166,800
3,214,302
3,262,516.53
3,311,454.28
25%
25%
25%
25%
25%
C. 4P’s STUDYPrice
DRY FOLD Price
Comforter 45.00 /kg
Assorted T-shirts, shorts, blouse, socks,
etc
25.00/kg
PRESSING LIST
Assorted T-shirts, shorts, blouse, socks,
etc
30.00DRYING - assorted 20.00/kg
Bed Sheets, Curtains, Towels 30.00/kg
Seat Covers with Foam 45.00/kg
Seat Covers w/o foam 30.00/kgWDP 40.00
HAND WASH 55.00
press 75.00
Barong (short or long sleeved) 40.00
Long sleeve (trouser) 40.00
Coat 40.00
Overall/Coat 55.00
DRY CLEANING Price List
Suit (2pcs. -Coat and pants 220.00
Long Coat 220.00
Coat-Large 140.00
Coat- Medium 120.00
Coat-Small 110.00
Coat-kid 100.00
Barong Pinya 100.00
barong-Ordinary 90.00
Polo Barong 80.00
Wedding Gown 450.00
Pants 75.00
Skirt-Long 75.00
Skirt-small 55.00
Skirt-Pleated 90.00
Lady Coat 110.00
Evening Dress 180.00
Dress Ordinary - Long 120.00
Lady Suit (2pcs) 180.00
Dress Plain 120.00
jacket-Ordinary 100.00
Jacket Large 150.00
Jacket Medium 130.00
Blouse 75.00
Jumpsuit 140.00
Coat w/o lining 120.00
Barong Kid Large 65.00
bkid med 55.00
bkid small 45.00
necktie 30.00
cap 30.00
PLACE
PROMOTIONLeaflets and Flyers
• Services Offered• Price List (back)• Company Address and Contact Number• Business Hours• Business Slogan “Kame ang bahala sa labahan nyo”
Tarpaulin
• Business Name, Address and Contact Number• Business Logo• Business Hours• Business Slogan• Services offered
Website Screenshot
D. Factors Affecting the MarketPopulation Growth Income changesPreferencesPrices of Substitute ProductsMarketing Tool
Factors Affecting Supply
Development of Substitute Products
Entry/Exit of Firm Sources/Causes of Production
Process Improved Technologies
E. Survey Results and Analysis of Data GatheredThe population only covered ages 20-60, which is the
age bracket of our business’ target market. The population size would be: 800 households.
We handed out 267 questionnaires for the respondents using “Sloven’s Formula” with a 5% margin of error.
F. Marketing ProgramSWOT ANALYSIS
Internal analysis and external business analysis of La Lovehan Ko Laundry Shop
Strengths
-La Lovehan Ko Laundry Shop uses an advanced technology for
the services
-High profitability of the business because it is more accessible to
the market.
-Faster and a more quality output is offered by La Lovehan Ko
Laundry Shop
-The location of the place has been a business spot before
-The business is located at the main road
-Prices are relatively competitive and accords to what the residents
want
-Less investment cost. laundry business does not need a large
amount of capital
-Promotion strategies such as leaflets and website is a good one to
attract not only the residents of but also the community outside the
subdivision
Opportunities
-Development of the whole subdivision could give La Lovehan Ko
Laundry Shop more opportunities to get a bigger market demand
-Demand for laundry business. the growth of the market and their
lack of time washing their own clothes creates a high demand for
La Lovehan Ko Laundry Shop and yet competitors do not satisfy a
big portion of this damand growth.
-Accessibility. the location of the business is easy to reach by the
market
-Supplies accessibility. the supplies needed to operate business can
easily get.
Weaknesses
-Lack of experience for the owner to manage a laundry shop
since it is her first time to invest in this kind of industry
-Since La Lovehan Ko Laundry Shop uses advanced
technologies, maintenance for the machines is quite hard to
maintain and expensive
Threats
-New laundry shops or competitors is a big threat to La
Lovehan Ko Laundry Shop
-Price variation.
Competitive ConditionCompetitive ConditionA. Market DescriptionB. Product ReviewC. Competitive Review
Market Research ResultsMarket Research Results
Sales and Distribution PlansSales and Distribution Plans Positioning Product Strategy Pricing Strategy
Advertising and Sales PromotionsAdvertising and Sales Promotions
By: Lalain A. Necessario
Technical and Financial Technical and Financial AspectsAspects
Initial Process in Acquisition of Garments
Manufacturing Process
Wash Dry Fold Service Per 10 Kilo Wash Load Thin Garments including For Thick Garments such asBed Sheets, Curtains, Towels and Blankets and ComfortersSeat Covers with or without Foam.
Pressing Service
Hand Washing Process
Dry Cleaning Process
Machineries and Equipment2 Whirlpool Topload Washers Model : 4PWTW5905
Features: 27”Super Capacity Plus 10.5 Kg. Dry Linen Capacity Fully Automatic Washer with Silver Panel Exta Roll Action Agitator MagiClean Lint Filter Polypropylene Outer Tub Direct Drive System Extra Rinse Option Self Balancing Basket and Tub Rat-Proof Base Tripod Suspension Systemspire an informal style
SPECIFICATIONS:MODEL 4PWTW5905
LOAD CAPACITY 10.5 Kgs.
WASHER TYPE Top Load
SPIN CAPACITY 10.5 Kgs.
SPIN SPEED 650 rpm
NO. OF WASH PROGRAMS 9 cycles
SoakWash FUNCTIONS No
EXTRA RINSE Yes
TURBO PERFORMANCE No
WATER USAGE per WASH 87 Liters
AGITATOR Yes
CONTROL TYPE Push Button / Knob
WASH WATTAGE 880W
COLOR Biscuit/White
NET DIMENSIONS (h:w:d) in inches 42.5 X 27 X 26.5
POWER SOURCE 220V / 60Hz
NET WEIGHT 72 Kgs.
GROSS WEIGHT 78 Kgs.
2 Whirlpool Dryers Model : 4PWED5905Features:
• 10.5 KG. Fully Automatic Electric Dryer with Silver Panel• Automatic Dry• Gentle Heat System• Removable Lint Filter• End-of-Cycle Signal• Wrinkle ShieldTM Option• Quiet Dry Noise Reduction• SpillGuardTM Top
SPECIFICATIONS: MODEL .4PWED5905
LOAD CAPACITY 10.5 Kgs
NO. OF CYCLES AND OPTIONS 8 Cycles
NO.OF TEMPERATURE SETTINGS 4
ACCUDRY SENSOR DRYING Automatic Dry
REMOVABLE LINT FILTER Top Mounted
CONTROL TYPE Push Button and Knob
MATERIAL AND FINISH Enamel, Powder Coated
POWER SOURCE 220V / 60Hz
WATTAGE 5400W
COLOR Biscuit / White
NET DIMENSIONS (h:w:d) in inches 42.5 X 29 X 28
NET WEIGHT 53 Kgs.
GROSS WEIGHT 56 Kgs.
FINANCIAL STUDY (key assumptions)37% of the household demands are not being
supplied by our competitor Sales forecast for the first year will be likely
profitable. La Lovehan Ko is expecting to gain customer loyalty and will get a fair market share because of its fats, accurate and quality service alongside with its friendly staff
Sales will increase by 25%. After 3 years if sales continuously increase
the management will acquire tricycle to offer free pick-up and delivery service for those customers who have not less than five kilos on weekdays..
Key Assumptions• Materials and supplies are expected to increase by inflation rate yearly.• Expense on labor cost remain the same for the first two years then due to increase in sales it is necessary to hire four workers to maintain quality and fast service.• Equipment and Machineries useful life is 5 years with 10% residual value.•Tarpaulin and leafleting for advertising• Electricity and water cost will increase accordingly from increase of wash load per month• Income Tax 30%• Price will remain the same
Total Project CostFixed Assets:
Water Tank P9,999.75
Machineries 66,496.00Furniture and Fixtures 13,000.00
Current Assets:Cash (Net of pre-operating P166,522.25Supplies 26,780.75Other Equipment 10,458.75
Sources of project financingEqual contributions of the four
partners for P100,000.00 each
Aileen Santos – P100, 000.00Charisse Tadena – P100, 000.00Lalain Necessario - P100, 000.00Ramella Caballes - P100, 000.00
TOTAL - P400, 000.00
1. Investment Investment through cash P 400,000.00 Total Investment P 400,000.00
2. Acquisition of Machineries a. 2 Whirlpool Topload Washers Model : 4PWTW5905 P 34,498.00 b. 2 Whirlpool Dryers Model : 4PWED5905 31,998.00 Total: P 66,496.003. Acquisition of Other Equipments a. 1 Philipps Steam Flat Iron Model: GC 4400 Series P 4,600.00 b. Ironing Board 730.00 c. 1 Weighing Scale 2,799.75 d. Water Hose (50 ft) 730.00 e. Calculator 200.00 f. 4 power regulators 1,399.00
Total: P 10,458.75
4. Acquisition of Water TankWater Tank P 9,999.95Free Installation 0.00Total: P 9,999.95
5. Cost of Renovation a. Labor cost for 6 working days P 8,400.00
(P 350 x 4 Workers x 6 Days) b. Total cost of materials 21,600.00
(Wood, Paint, Paintbrush, Nails, Etc.)Total: P 30,000.00
• Installation of Equipments• Installation of Clothes Hanger• Painting• Plumbing and Sink Installation• Comfort Room
6. Acquisition of Fire Extinguishers Good for one yeara. 2 x 10lbs. Fire Extinguishers for P 2,000.00 / each P 4,000.00
7. Acquisition of Furniture and FixturesTable P 900.00Chairs 400.00Sofa 2,500.00Cost of Installation of Counters and Shelves 9,200.00
Total P 13,000.00
8. Promotion and AdvertisementTarpaulin P 1,800.00Leafleting 600.00
Total P 2,400.00
9. Acquisition of Supplies Good for One YearPair of Gloves P 99.50 / 2 pairsHangers (Plastics) P 159.50 /12 pcs.Order Slips P 337.50/ 500 sheetsDelivery Slips P 520.00 / 500 sheetsBall pens P 100.00Mask P 60.00 / 2 pcs1 File Organizer Rack P 400.001 Record Book P 75.50Plastics for Clothes Bagging
24x40 P 2840.00 / 1000 pcs.23x26 P 2560.00 / 1000 pcs24x60 P 4265.00 / 1000 pcs.
TOTAL P 11,417.00
10.Cost of Direct SuppliesCost for Wash Dry Fold per week P 1449.07Cost for Wash Dry Press per week 64.19Cost for Handwashing per week 44.10Cost of Dry Cleaning per week 283.15
1,840.51 total cost per weekDirect Supplies P 1,840.51 per week
X 52 weeks 95,706.52Plus Supplies Cost per year \ 11,417.00
107,123.00
LA LOVEHAN KO Laundry Shop
Income Statement
For the Year Ended December 31,
2011 2012 2013 2014 2015
Service Revenue: 1,003,442.44 1,254,303.05 1,567,878.81 1,959,848.52 2,449,810.64
Less: Operating Expense
Salaries 114,500.40 114,500.40 114,500.40 114,500.40 114,500.4
Wages 252,288.00 252,288.00 252,288.00 252,288.00 400,543.04
Supplies 107,123.00 133,904.38 167,380.47 ,209225.59 261,531.99
Advertising 2,400.00 5,000.00 5,000.00 12,000.00 5,000.00
Taxes Expenses (permits, etc.) 19,000.00 12,500.00 14,000.00 28,000.00 21,000.00
Miscellaneous 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Utilities 80,388.00 87,588.00 96,346.80 105,777.00 118,979.05
Repair and Maintenance 1,833.12 1,833.12 1,833.12 3,163.04 3,163.04
SSS Premium 29,130.00 29,130.00 29,130.00 29,130.00 68,640.00
Phil. Health Premium 6,550.00 6,550.00 6,550.00 6,550.00 17,400.00
Fire Extinguishers 4,000.00 4,000.00 4,000.00 4,000.00 4,000.00
Rent Expense 72,000.00 72,000.00 72,000.00 72,000.00 72,000.00
Depreciation - Machineries 11,969.28 11,969.28 11,969.28 17,953.92 17,953.92
Depreciation - Equipment 1,882.58 1,882.58 1,882.58 1,882.58 1,882.58
Depreciation - Furniture and Fixture 2,080.00 2,080.00 2,080.00 2,080.00 2,080.00
Depreciation - Water Tank 1,799.95 1,799.95 1,799.95 1,799.95 1,799.95
Depreciation - Tricycle 34,200.00 34,200.00
Fuel and Tricycle Maintenance Expense 80,080.00 90,180.00
Total Operating Expense: 738,944.33 739,025.71 782,760.60 976,630.48 1,236,853.97
Income before tax 264,498.11 515,277.34 785,118.21 983,218.04 1,212,956.68
Provision Income Tax 79,349.43 154,583.2 235,535.46 294,965.41 363,887.00
Net Income: 185,148.68 360,694.14 549,582.75 688,252.63 849,069.68
Income StatementFINANCIAL STATEMENTS
STATEMENT OF CHANGES IN PARTNERS’ CAPITALLA LOVEHAN KO Laundry Shop
Statement of Changes in Partners’ Capital
For the Year Ended in December 31,
Santos Caballes Tadena Necesario Total
Capital, Jan. 1, 2011 100,000.00 100,000.00 100,000.00 100,000.00 400,000.00
Net income for the year 46,287.17 46,287.17 46,287.17 46,287.17 185,148.68
Less Withdrawal 25,000.00 25,000.00 25,000.00 25,000.00 100,000.00
Capital, Dec. 31, 2011 121,287.17 121,287.17 121,287.17 121,287.17 485,148.68
Capital, Jan 1, 2012 121,287,.17 121,287,.17 121,287,.17 121,287,.17 485,148.68
Net income for the year 90,173.54 90,173.54 90,173.54 90,173.54 360,694.14
Less Withdrawal 30,000.00 30,000.00 30,000.00 30,000.00 120,000.00
Capital, Dec. 31, 2012 181,460.70 181,460.70 181,460.70 181,460.70 725,842.82
Capital, Jan. 1, 2013 181,460.70 181,460.70 181,460.70 181,460.70 725,842.82
Net income for the year 137,395.69 137,395.69 137,395.69 137,395.69 549,582.75
Less Withdrawal 60,000.00 60,000.00 60,000.00 60,000.00 240,000.00
Capital, Dec. 31, 2013 258,856.39 258,856.39 258,856.39 258,856.39 1,035,425.57
Capital, Jan. 1, 2014 258,856.39 258,856.39 258,856.39 258,856.39 1,035,425.57
Net income for the year 172,063.16 172,063.16 172,063.16 172,063.16 688,252.63
Less Withdrawal 100,000.00 100,000.00 100,000.00 100,000.00 400,000.00
Capital, Dec. 31, 2014 330,919.55 330,919.55 330,919.55 330,919.55 1,323,678.19
Capital, Jan. 1, 2015 330,919.55 330,919.55 330,919.55 330,919.55 1,323,678.19
Net income for the year 212,267.42 212,267.42 212,267.42 212,267.42 849,069.68
Less Withdrawal 30,000.00 30,000.00 30,000.00 30,000.00 120,000.00
Capital, Dec. 31, 2015 513,186.97 513,186.97 513,186.97 513,186.97 2,052747.87
STATEMENT OF CASH FLOWSLA LOVEHAN KO Laundry Shop
Statement of Cash Flows
For the Year Ended December, 31
2011 2012 2013 2014 2015
Cash flows from operating activities:
Cash received from customers 1,003,442.44 1,254,303.05 1,567,878.81 1,959,848.52 2,449,810.64
Payment for wages and other operating expense
Salaries (114,500.40) (114,500.40) (114,500.40) (114,500.40) (114,500.40)
Wages (252,288.00) (252,288.00) (252,288.00) (252,288.00) (400,543.04)
Supplies (118,276.70) (136,694.05) (170,867.56) (213,584.45) (266,980.57)
Advertising (2,400.00) (5,000.00) (5,000.00) (12,000.00) (5,000.00)
Tax (permits, etc.) (25,000.00) (15,000.00) (20,000.00) (20,000.00) (20,000.00)
Utilities (73,698.00) (80,289.00) (88,317.90) (96,962.25) (109,064.13)
Repair and Maintenance (1,833.12) (1,833.12) (1,833.12) (3,163.04) (3,163.04)
SSS Premuim (19,796.70) (19,796.70) (19,796.70) (19,796.70) (46,641.60)
Phil Health Premium (3,275.00) (3,275.00) (3,275.00) (3,275.00) (8,700.00)
Miscellaneous (2,000.00) (2,000.00) (2,000.00) (2,000.00) (2,000.00)
Fire Extinguishers (4,000.00) (4,000.00) (4,000.00) (4,000.00) (4,000.00)
Renovation (30,000.00)
Utilities Payable (6,695.00) (7,299.00) (8,028.90) (8,814.75)
SSS payable (3,275.00) (3,275.00) (3,275.00) (3,275.00)
Phil Health payable (9,333.30) (9,333.30) (9,333.30) (9,333.30)
Rent (72,000.00) (72,000.00) (72,000.00) (72,000.00) (72,000.00)
Payment of fuel and maintenance (80,080.00) (90,180.00)
Cash payment for income tax (79,349.43) (154,583.20) (235,535.46) (294,965.41) (363,887.00)
Net cash from operating activities 205,025.09 373,740.28 558,557.37 750,596.06 921,727.81
Cash Flow from Investing Activities
Purchase of Machineries (66,496.00) (33,248.00)
Purchase of Equipment (10,458.75)
Purchase of Water Tank (9,999.75)
Purchase of furniture and fixture (13,000.00)
Purchase of Tricycle (190,000.00)
Cash provided for investing activities (99,954.50) - - (223,248.00) -
Cash flows from financing activities:
Cash investments by the owner 400,000.00
Cash withdrawal by the owner (100,000.00) (120,000.00) (240,000.00) (400,000.00) (120,000.00)
Net cash from financing activities 300,000.00 (120,000.00) (240,000.000 (400,000.00) (120,000.00)
Cash Beginning Balance 405,070.59 658,810.86 977,368.23 1,104,716.29
Cash Balance: 405,070.59 658,810.86 977,368.23 1,104,716.29 1,906,444.10
BALANCE SHEET
LA LOVEHAN KO LAUNDRY SHOP
Balance Sheet
December 31,
2011 2012 2013 2014 2015
Assets:
Cash 405,070.59 658,810.86 977,368.23 1,104,716.29 1,906,444.10
Prepaid Taxes 6,000.00 8,500.00 14,500.00 6,500.00 5,500.00
Supplies 22.317.40 27.896.75 34.870.93 43.588.66 54.485.83
Machineries 66,496.00 66,496.00 66,496.00 99,744.00 99,744.00
Accumulated Depreciation – Machineries (11,969.28) (23,938.56) (35,907.84) (53,861.76) (71,815.68)
Water Tank 9,999.75 9,999.75 9,999.75 9,999.75 9,999.75
Accumulated Depreciation -Water Tank (1,799.96) (3,599.91) (5,399.87) (7,199.82) (8,999.78)
Equipment 10,458.75 10,458.75 10,458.75 10,458.75 10,458.75
Accumulated Depreciation – Equipment (1,882.58) (3,765.15) (5,647.73) (7,530.30) (9,412.88)
Furniture and Fixtures 13,000.00 13,000.00 13,000.00 13,000.00 13,000.00
Accumulated Depreciation - Furniture and Fixtures (2,080.00) (4,160.00) (6,240.00) (8,320.00) (10,400.00)
Tricycle 190,000.00 190,000.00
Accumulated Depreciation – Tricycle (34,200.00) (68,400.00)
Total Asset: 515,610.68 759,698.49 1,073,498.23 1,366,895.57 2,120,604.10
Liabilities:
Accounts Payable 11,158.70 13,948.37 17,435.47 21,794.33 27,242.92
Phil Health Payable 3,275.00 3,275.00 3,275.00 3,275.00 8,700.00
SSS Payable 9,333.30 9,333.30 9,333.30 9,333.30 21,998.40
Utilities Payable 6,695.00 7,299.00 8,028.90 8,814.75 9,914.92
Total Liabilities 30,462.00 33,855.67 38,072.67 43,217.38 67,856.24
Partner’s Equity:
A. Santos, Capital 121,287.17 181,460.70 258,853.39 330,919.55 513,186.97
L. Ramirez, Capital 121,287.17 181,460.70 258,853.39 330,919.55 513,186.97
L. Necesario, Capital 121,287.17 181,460.70 258,853.39 330,919.55 513,186.97
C. TAdena, Capital 121,287.17 181,460.70 258,853.39 330,919.55 513,186.97
Total Partner’s Equity 485,148.68 725,842.82 1,035,425.57 1,323,678.19 2,052,747.87
Total Liabilities and Capital: 515,610.68 759,698.49 1,073498.23 1,366,895.57 2,120,604.10
FINANCIAL ANALYSIS (Test of Liquidity)
Current Ratio
Year
Current Assets
Current Liabilities Current Ratio
2011 433,387.99 30,462.00 14.22 2012 695,207.61 33,855.67 20.53 2013 1,026,739.16 38,072.67 26.96 2014 1,154,804.95 43,217.38 26.72 2015 1,966,429.93 67,856.24 28.99
FINANCIAL ANALYSIS (Test of Profitability)
Return on Sales
Year Net Income Total Sales Return on Sales 2011 185,148.68 1,003,442.44 18.45% 2012 360,694.14 1,254,303.05 28.76% 2013 549,582.75 1,567,878.81 35.05% 2014 688,252.63 1,959,848.52 35.12% 2015 849,069.68 2,449,810.64 34.66%
FINANCIAL ANALYSIS (Test of Profitability)
Return on investments
Year Net Income Investment Return on investment
2011 185,148.68 515,610.68 36%
2012 360,694.14 759,698.49 47%
2013 549,582.75 1,073,498.23 51%
2014 688,252.63 1,366,895.57 50%
2015 849,069.68 2,120,604.10 40%
FINANCIAL ANALYSIS (Test of Profitability)
Return on equity
Year Net Income Total Partner's
equity Return on equity
2011 185,148.68 485,148.68 38%
2012 360,694.14 725,842.82 50%
2013 549,582.75 1,035,425.57 53%
2014 688,252.63 1,323,678.19 52%
2015 849,069.68 2,052,747.87 41%
FINANCIAL ANALYSIS (Test of Solvency)
Debt to Equity Ratio
Year Total
liabilities Total partner's
equity Debt to equity
ratio 2011 30,462.00 485,148.68 6.28%
2012 33,855.67 725,842.82 4.66%
2013 38,072.67 1,035,425.57 3.68%
2014 43,217.38 1,323,678.19 3.26%
2015 67,856.24 2,052,747.87 3.31%
FINANCIAL ANALYSIS (Test of Solvency)
Debt to Assets Ratio
Year Liabilities Assets Debt to asset ratio
2011 30,462.00 515,610.68 5.91%
2012 33,855.67 759,698.49 4.46%
2013 38,072.67 1,073,498.23 3.55%
2014 43,217.38 1,366,895.57 3.16%
2015 67,856.24 2,120,604.10 3.20%
Socio Economic, Management Socio Economic, Management and Environmental Studyand Environmental Study
By: Ramella Caballes
The laundry shop, La Lovehan Laundry Shop, will definitely have good role in the community.
This will create employment and income especially to those residents of the village.
The laundry shop will provide steady source of income that eventually improve the standards of living of the employees that will affect the growth of the economy.
Socio Economic Study
Organization and Management StudyOrganization and Management StudyThe business La Lovehan Laundry Shop has established goals or objectives that are expected to be attained within affirmed future dates.
The Laundry shop is likely to expand the business in other areas of the community to be able to reach those areas which are somewhat far from the La Lovehan Laundry Shop, likewise spread-out its efficient and quality service for other target market.
Forms of Ownership
The La Lovehan Laundry Shop is a partnership between the college friends Aileen Santos, Charisse Tadena, Lalain Necessario and Ramella Caballes
Contributed money and effort to finance the shop whereas the assets of the business are owned on behalf of the other partners, and they are each personally liable, jointly, for business debts, taxes and liability.
Organizational Chart
Project Schedule
Environmental impactEnvironmental impact We have to make that the operation of our
business does not give harm to environment. Since our business use chemical substance like soap, which mixed to the water we used.
We have to treat every liter of water we throw out.”Water TreatmentWater Treatment
1. Removal of contaminants by chemical or physical bonding
2. Use of sub-micron filter elements
3. Use of double stages for filtration
Conclusions and RecommendationThe market study determined the demand for the
service through the thorough research on the residents of Robinsons Homes. The study conducted revealed the demand for the product and enabled the group 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, La Lovehan Ko 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.
THANK YOU!!!!!