Metro Business College

200 Arnaiz Avenue

Pasay City

A Business Plan

In Partial

Fulfillment of the Requirement for the degree of

Bachelor of Science in Office Administration

On the Subject

Strategic Management

Presented to:

Professor: Rebecca T. Sambu

By:

Liezel B. Besuña

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TABLE OF CONTENTS

Executive summary _________________________________________________ page 3

Introduction/background _______________________________________________ page 3 &

Management aspect _________________________________________________ page 4 &

Goal and purposes _________________________________________________ page 5 & 6

Business organization ________________________________________________ page 6 to 9

Personnel and administration____________________________________________ page 6 to 9

Job description & specification ________________________________________ page 7 to

Management practices ________________________________________________page 9 to

11

Employees benefits and compensation ________________________________ page 11 to 13

Capitalization _________________________________________________ page 14

Organizational structure _______________________________________________ page 14

Technical aspects _______________________________________________ page 14,15 & 16

Marketing aspects _______________________________________________ page 16 , 17 & 18

Financial aspects _________________________________________________ page 19

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Socio economic aspects _________________________________________________ page

20

Conclusion_________________________________________________ page 21

I. Executive Summary

Every person needs clean clothes. Not every family can afford a washer and dryer or laundry
soap.  Liezel’s Sabon Factory Outlet and Laundry Shop will, upon commencement of operations,
supply full washing, drying, and optional folding services. We will also provide quality products
to ensure clean washing of clothes as well as household retail products to meet the demand for
easy access for the neighborhood. What will set Liezel’s Sabon Factory Outlet and Laundry
Shop apart from the competition is our commitment to providing professional, friendly, prompt,
and, most importantly, convenient services. It’s been shown that the best method of advertising
is through word-of-mouth. No major newspaper ad campaign is planned. However, we shall run
weekly specials. In addition, we shall have an incentive program for referrals. Those customers
who refer someone else to the store will be rewarded with two free washes, and the referee will
receive an introductory gift of a free wash. In addition, we will ensure a clean environment,
reliable machines, and friendly, prompt services. Liezel’s Sabon Factory Outlet and Laundry
Shop would like to set itself apart from other laundromats that may offer only one or two
services. Although the focus of Liezel’s Sabon Factory Outlet and Laundry Shop is a washing
and drying service, we do wish to offer our clients the convenience of these other services in one
location. Those services include folding and potentially pick-up/delivery service, as well as
online reservation and membership for pick-up and delivery. Most importantly, it’s our
convenience that sets us apart from the competition. Liezel’s Sabon Factory Outlet and Laundry
Shop is a full-service coin-op laundry (washing, drying, and optional folding) service dedicated
to consistently providing high customer satisfaction by rendering reliable machines and
furnishing a clean, enjoyable atmosphere at a competitive price/value relationship. It is very
important to note that the minimum monthly amount of loan payback should decrease as
principal decreases. Furthermore, the profit projected in the table is after all expenses and

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monthly loan payback have been subtracted. All net profit will then be paid as an additional sum
to greatly shorten the term of the loan.

II. INTRODUCTION/BACKGROUND

Today’s society is giving much of attention on creating things which will bring convenience and
benefits to human being. The modern lifestyle demands for things beyond our basic needs The
use of cleaning agents be it for personal or home use has become a necessity than an
extravagance. This is because of dependence of health on hygienic practices. On the contrary, the
present economic distress leads to a difficulty in meeting these needs for we have to prioritize the
things which we really can’t live without as food, clothing, and shelter. Because of this, the
notion on direct selling and distributing GRIST products was initiated. These are products which
have the same qualities with those well-known and branded in the market. This idea came with
the aim to assist the public in reaching and obtaining some needs which are within the main
priorities yet important and at the same time securing the benefits of good qualities from those
without worrying on the affordability. With the thought of the business as a distributor,
maximization of resources usage through an extended service with laundry acceptance was
decided to be added. Moreover, a new kind of service is to be opened for the availment of the
people of , in Lavezares, N. Samar.

III. Management aspect

Liezel’s Sabon Factory Outlet and Laundry Shop will be located in one of the available space for
rent beside the M Lluihller Pawn Shop at Barangay Sabang, Poblacion, Lavesarez, Northern
Samar. Considering it is within the commercial center of the municipality and that is close to the
different business establishments such as bakery, department stores, etc. and residential houses,
its target market will be those that live and reside within the area. The proponents of this project
feasibility will make a survey on the target market to establish the market demand and the size of
the different segments of the potential customers through questionnaires as research instrument.
In real sense, Liezel’s Sabon Factory Outlet and Laundry Shop has for its main objective a
necessity of today’s living, the sanitation. Human health is bound on the situation of his

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environment, thus, this business intends to serve this ultimate purpose.The need for cleaning
agents for personal, home/ building and laundry use, as well as perfumes for men and women is
what this business will be trying to meet. These products do have the same, and if not, at least
have almost the same qualities with those currently existing at the market. Only that the
packaging is a bit given up for those are directly taken from the manufacturer. Laundry services
is also expected to be rendered to those who seek quality cleaning process of clothes, be it from
households or business establishments. This business will be distributing its products through
direct selling, thus, a credit system is expected to create a broad and accessible market. Some of
its products will of course be used in its laundry division to likewise promote and attest the
quality of the products. The community in the town proper of in Lavezares, N. Samar is the
initial target market of Liezel’s Sabon Factory Outlet and Laundry Shop. But once the business is
already well-established, it is expected to cater the needs of the neighboring communities. The
absence of businesses of exactly the same nature Albay is one of the opportunities Liezel’s
Sabon Factory Outlet and Laundry Shop is expecting to seize. Yes, there are general
merchandise stores existing but none of them offer the products at the form and price this
business offers. It must be emphasized that the products to be sold might be inferior in packaging
compared to the one’s already existing in the market but the quality is surely not sacrifice. And
the necessities of practical living are expected to lead to a choice of sacrificing packaging for the
same product quality at a lesser price. In addition, the credit system to be established is expected
to be taken advantage by the customers who have the intention of reselling the products. The
business will be situated in a commercial area of in Lavezares, N. Samar, 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 center of the town 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. As the location and size of the business suggests, Liezel’s Sabon Factory Outlet and
Laundry Shop conserve as a wholesaler to those who want to earn through reselling. You earn
from them as they earn with you. This is an encouragement which will open opportunities for an
increasing number of patronizes. Given the loose competition in the market, necessary nature of

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the products and encouraging credit system Liezel’s Sabon Factory Outlet and Laundry Shop is
projected to be feasible.

Goals and purposes

 The location of the project is an important factor to success. It should be situated on area
accessible to the general public, thus, this project will be located on a site within the
commercial area which is on Brgy. Sabang Tabok in the town proper of Lavezares, N.
Samar where it is near to the other businesses and could be easily seen by the people.
 For the products and services to enter the market, promotional activities should be
conducted. Flyers with products and services price list should be distributed within and
outside the town proper.
 Orders received through the dealers and distributors should be filled promptly as well as
the collection of the accounts.

Maintenance of good relationship with customers is important. Their concerns should be

addressed to as soon as possible.

III.4 Business organization

Organization Lay-out

Manager/ Owner

Store Custodian Laundry Shop Operator

Liaison Employee

Line Relationship

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 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.

JOB DESCRIPTION

Position Title: Manager

Job Summary: Responsible for the profitability and growth of the business

Duties and Responsibilities:

1. Planning – Establish and maintain an integrated plan consistent with both short and long
term goals and objectives.
2. Organizing – Develop and maintain an effective organization which will ensure that work
is done effectively and economically.
3. Control- Develop and maintain control system to ensure conformance of operations and
results to what was planned.
4. Design, establish and maintain an effective accounting system for financial transactions
of both divisions.
5. Verify and check all accounting reports and documents that are submitted by the store
custodian and laundry shop operator.
6. Check and verify all collections and disbursements made with their supporting
documents.
7. Signs check for any payment made by the business.
8. Responsible for implementation and monitoring of organization rules and regulations.
9. Responsible for fixing salaries and benefits.
10. Assumes other duties analogous to the above mentioned.

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JOB DESCRIPTION

Position Title: Store Custodian

Job Summary: Responsible for the selling operations of the products
Duties and Responsibilities:
1. Entertaining of customers on products offered.
2. Maintaining enough stocks for the store.
3. Setting of reorder point for inventories.
4. Collection of customer due accounts.
5. Assessing credit lines of customers, dealers and distributors.
6. Maintaining books in accounting for financial transactions.
7. Providing periodic reports on the financial position and performance of the division.
8. Taking care of assets within the division.

Job Specification:

1. Male/ Female, 20-35 years of age

2. At least high school graduate, preferably college level.
3. Excellent in oral and written communication.
4. Has an excellent interpersonal skill.

JOB DESCRIPTION

Position Title: Laundry Shop Operator

Job Summary: Responsible for the operation on laundry services

Duties and Responsibilities:

1. Handling the actual cleaning of laundries.

2. Scheduling of accepting and returning of laundries to customers.
3. Procurement and maintaining of stocks of supplies to be used in service.

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 4. Maintaining books in accounting for financial transactions.
5. Providing periodic reports on the financial position and performance of the division.
6. Taking care of the assets within the division.

Job Specification:

1. Male/ Female, 20-35 years of age

2. At least high school graduate
3. Knows how to operate a washing machine

JOB DESCRIPTION

Position Title: Liaison Employee

Job Summary: Responsible for the assistance on laundry shop and store division

Duties and Responsibilities:

1. Assisting the operator of laundry shop on entertaining of customers and cleaning of

laundries.
2. Taking care of the deliveries from the supplier to the store.
3. Assistance on whatever situation which requires such.

Job Specification:

1. Male, 20-35 years of age

2. At least high school graduate
3. Have excellent interpersonal skills

Management and Supervision

The proprietor will be the one to manage and supervise the business operation. As the
manager, she will direct and control the operations in both divisions with the objective of
bringing out quality service to customers. To accomplish these requirements, a manager needs to
meet and practice ethical standards and apply strategies on dealing with its employees.

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The Recruitment 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.

Training and Development

Training and development refers to employees’ acquisition of knowledge, development of

skills and proper work attitude. Training of employees is a means for Liezel’s Sabon Factory
Outlet and Laundry Shop 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 Liezel’s Sabon Factory Outlet
and Laundry Shop 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. Liezyl’s Sabon Factory Outlet and Laundry Shop 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.

Human Resource Management

Human Resource Management is the main function and responsibility of management which
includes planning, organizing, directing, controlling and coordinating of employees.

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 Liezel’s Sabon Factory Outlet and Laundry Shop has a small organizational structure that
is in a sole proprietorship form of business. This establishment cannot provide separate human
resource management department to handle its employees but instead, dealing and handling of
personnel lies on the manager/owner.

The manager and the line staff are carried on in a constant coordination to exchange their
ideas and synchronize their duties about the matters concerned under a particular supervision.

Importance of Human Resource Management:

1. Keeps track on employee’s performance

2. Provides proper training and orientation to an employees’ designated job
3. Maintains good relationship with co-employees
4. Gives rules and policies to be followed

Time of Business Operation

9:00 a.m. – 12:00 p.m., 1:00 p.m. – 6:00 p.m.

(8 hours of operation from Mondays thru Saturdays)

Time of Employees Operation

Eight (8) of operation from Mondays thru Saturdays for the store custodian, laundry shop
operator, and liaison employee who are allowed a one hour lunch break from 12:00 p.m. to 1:00
p.m. wherein they may close the store as they wish.

Salaries and Wages

The following are the rate of salaries for each employee:

Laundry shop operator - Php 150.00 per day/ Php 3,600.00 per month

Store custodian - Php 120.00 per day/ Php 2,880.00 per month

Liaison employee - Php 100.00 per day/ Php 2,400.00 per month

Employee Benefits

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 Sick leave – sick leave eligibility starts after six months of continuous service. Liezel’s
Sabon Factory Outlet and Laundry Shop considers sick leave as any temporary absence to illness
or non-occupational injury that prevents the worker from coming to work. A medical certificate
must be presented.

Policies and Disciplinary Actions

Liezel’s Sabon Factory Outlet and Laundry Shop

Title: POLICY CODE OF DISCIPLINE

In any organization, a code of discipline is vital. As such Liezyl’s Sabon Factory Outlet and
Laundry Shop must maintain House Code of Discipline for every employee to abide by abide
conduct himself accordingly. The purpose of a House Code of Discipline is meant to correct an
erring employee rather than to inflict punishment. It also helps us maintain a standard quality of
employee.

ACTS OR OMISSIONS CONCERNING COMPANY PENALTY PENALTY

FUNDS OR PROPERTY

a. Stealing, misappropriating or embezzling company’s funds or Dismissal

property

b. Fraudulent or illegitimate withdrawal or acquisition or release to Dismissal

other person of company’s funds and property

c. Deliberately causing loss or damage to company’s property Suspension

without pay

d. Committing other acts of dishonest, deceit or anomaly Suspension

without pay

e. Unauthorized painting, marking, carving or removal of things Oral/written

reprimand

f. Indiscriminate use or allowing unauthorized persons to use Oral/written

materials and facilities in loss or damage reprimand

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 g. Negligence or carelessness resulting in loss or damage of property Oral/written
reprimand

ACTS OR OMISSIONS AFFECTING COMPANY’S INTEREST

a. Forging or falsifying or altering record, or other records in such a Dismissal

way as to mislead the user/s thereof

b. Making false or malicious statements about the business Dismissal

c. Disclosing, giving way, or using restricted information without Dismissal

proper authorization

d. Making use of record/s or document/s known (by user) to be false Dismissal

e. Unauthorized use of the business’ name to obtain benefits Dismissal

ACTS OR OMMISSION CONCERNING HARMONY AND PENALTY

GOOD, ORDERLY, SAFETY, SECURITY AND DECENCY

a. Bringing in, or unauthorized possession of firearms, explosives, Oral/written

other deadly weapons within the store/shop premise or jobsite reprimand

b. Immoral conduct or conduct grossly indecent nature within the Oral/written

business reprimand

c. Stealing, concealing, or deliberately misplacing without justifiable Dismissal

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 purpose

d. Absence without proper notice to notify superior of the cause Oral/written

thereof reprimand

e. Abandonment of job Dismissal

f. Habitual tardiness Oral/written

reprimand

3.5.4 Capitalization

Liezyl’s Sabon Factory Outlet started with a capital of 300,000 and they have only 2 washing
machine. They have only 2 staff when they started.

3.5.5 Organizational Structure

The organizational structure describes the official relationships of persons in an organization.

It has to do with the chains of command and the division of duties, with the emphasis on the
former. It forms part of the over-all organization plan. The organization chart should be set in a
clear picture with the job descriptions and operating procedures to give emphasis and
particularity on the delegation of authority and responsibility.

Liezel’s Sabon Factory Outlet and Laundry Shop organization will be on a line type of
structure. Centralization of operation and decision making will be observed though the business
has two divisions considering the size of business itself and the simplicity of the organizational
structure. The owner, as also the manager, will be seeing through the management and over-all
operation of the business. The store custodian will handle the selling operations of the products
as the laundry shop operator will take care of the laundry services. Their responsibilities extend
to the custody of the assets within their division. A liaison employee will be hired for the entire
business. His responsibility is on assisting the laundry shop operator in its daily operation. He
will also be taking care of the deliveries of products from the supplier to the store. A single
liaison employee will be hired with the thought that some store deliveries will not be often done

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as the assisting in the laundry shop. And so it is reasonably expected that he will be able to meet
his responsibilities in both divisions. Good relationships of the divisions as well as their
respective personnel should be developed. This is to initiate congruencies so as to signify the
duties and responsibilities of each person making up the whole organization.

IV. TECHNICAL ASPECTS

It is advisable for this kind of business operation to be organized as either sole

proprietorship or a partnership for it is less complicated to manage than a corporation. Thus, the
Liezyl’s Sabon Factory Outlet and Laundry Shop will be a sole proprietorship. This will be
owned by Ms. Liezyl and will invest the needed initial capital and will solely benefit from the
profits of the business.

Proposed Liezyl’s Sabon Factory Outlet Division

Liezel’s Sabon Factory Outlet and Laundry Shop shall operate a direct selling business of
laundry, car, home/building and personal care products. Aside from selling to its final customer
it opts to extend credit to those who are willing to serve as sub-dealers for the product listed
below provided they are to fill-out registration form. This will serve as a document binding
him/her as an official dealer of Liezyl Sabon factory outlet.

For the list of products, see Appendix.

Every dealer of the Liezel’s Soap Factory Outlet Division shall have a registration form
free of charge that will be used to keep tract of his/her credit purchases, payment, etc. after
issuing him/her unique ID number/Dealer code.

The following must be observed upon signing in as a dealer.

1. Completely filled-out original Liezel’s Sabon factory outlet registration form in

two copies.
2. Photocopy of both front and back sides of any one valid ID number, ID type,
signature and unique cell phone number.
3. The ID type details have to match the valid ID’s photocopy. Also the member’s
signature at the bottom has to be identical with the signature on the valid ID.

Terms and Conditions

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1. Upon sign in of the new Dealer, he/she shall have an automatic Php 1,000.00 available credit
line at an outright 10% discount payable immediately after seven days upon purchase order of
product from Liezly’s Sabon Factory Outlet Division.

2. In every purchase of dealers, he/she is entitled to an outright 10% discount.

- An outright dealer’s discount of 10% on catalog price is granted immediately to all

Liezly’s Sabon Factory Outlet Division dealers on product purchase in catalog.

- When purchasing products at the 10% discounted price, Leizel Sabon Factory Outlet
can re-sell the products to non-dealers or final costumers at catalog price and earn the
difference.

3. Upon every purchase, the dealers must pay at least Php 50.00 to serve as down payment. This
amount shall be deducted from his/her total personal sales to arrive at final amount due. When
personal sales exceed the available credit line, the difference must be paid upon purchase.

4. He/she shall pay the amount due to him/her immediately after seven days, counting from the
day of purchase order. Failure to pay on time shall mean a penalty on delinquent account. An
additional charge of 1.5 % on the amount payable to Liezel’s Sabon Factory Outlet Division
shall be paid by the dealers.

V. MANAGEMENT ASPECTS

Target market

Customers for the Sabon Factory Outlet

 Household – the main target for the Sabon Factory Outlet especially those with
extended families that have great demand for laundry and home care product and
personal care product for each member of the family. The Liezel’s Sabon Factory
Outlet and Laundry Shop aims to exploit this market opportunity by selling the above
mentioned care products.
 Students – Students have a constant need for bath soap, lotion and cologne and other
personal care products for their personal hygiene, thus they are potential market of the
Sabon Factory Outlet.

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  Business Owners – Owners of the business establishments nearby also need
janitorial care products for their building/ office to maintain the health and sanitation
in their respective areas. Thus they are potential market of the Sabon Factory Outlet.
 Business Dealers – Business-oriented people that would like to earn extra income
sub-dealing the laundry care, home/building care, and personal care products to
ultimate consumer. Thus they are potential market of the Sabon Factory Outlet.
 General Public – This refers to the rest of the population that does not fit into other
four types of target market above that Liezel’s Sabon Factory Outlet and Laundry
Shop aims to serve by selling laundry care, home/building care, and personal care
products. Incorporated promotion of products on laundry services. The laundry
division attests the quality and promotes some of the products through its services.
 Market-known product qualities. The fact that products to be sold have the same quality
with those existing in the market will create a continuing patronage of those who know
this.
 Accessibility of supplier. Supplies of product will be taken from a distributor in UEP
Catarman, near enough to cover immediate orders and avoiding transportation expenses if
the products will be taken directly from the supplier.
 Strategic location. The business will be situated within a commercial area in the town
proper of Lavezares, N. Samar, thus, creating accessibility for the target customers.
 Monopolistic character. No existing establishment of the same industry is operating
within the immediate area of proposed location.
 operating machine which may not be enough to accommodate too much customers.

5.3 MARKETING STRATEGY

1. Engage On Social Media. Facebook, Twitter, and Instagram are all great platforms on
which to build an audience and inform customers of upcoming promotions and events. ...
2. Paid Advertising on Social Media. ...
3. Get Your Business on Online Maps. ...
4. Own A Website.

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PRICING STRATEGY

Conduct a market analysis to find out what other laundry shop in your area are charging for
laundry services. Your business doesn’t exist in a vacuum, after all. Then, look at how the
market is responding to their prices. Although you don’t have to charge the same prices as your
competitors, you do need to establish competitive and realistic prices. Although pricing is
important and great deals can draw in new customers, remember that pricing is only a piece of
the equation. You also need to keep your store clean, maintain and repair your machines, and
promptly address customer complaints. Instead of getting into a price war with your competitors,
focus on the quality of your laundry shop. Consider discounts and sales. If you want to excite
your customers and boost your revenue, try implementing discounts and sales. Although this
won’t work in every market and prices should be kept consistent overall, well-formulated sales
can be very effective. You could lower your prices on times/days that have low activity, offer
free drying services, or implement a customer loyalty card.

Opportunities

 The business will just be the second factory outlet in Northern Samar of the Grist
Company. The other one is situated in UEP Catarman which is relatively far from
Lavezares and which may give broader market coverage for the products and services.
 The absence of same factory outlets in the second district of the province will create an
opportunity for the business to earn through recruitment.
 Spreading public knowledge about the good qualities of products at lower cost as well as
on its laundry services may lead to business monopolizing the market.

Threats

 The continuing entries of imitated products in the market may lead to the misconception
of the public that the products offered are mere imitations and ineffective.
 Increasing cost of living and business costs may trigger the laundry shop customers to
resort to cheaper alternatives as household “labanderas.”

5.8 Strategic alliances

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  Advertisements. Flyers with products and services price list will be distributed
throughout Lavezares, Northern Samar and the neighboring communities for the
awareness of the public on authenticity of products and its less cost.
 Credit system. Establishing a good credit system will create extensive patronage by those
who want to avail of the products but don’t have the immediate means.
 Direct selling. Employing the service of dealers who will undergo direct selling of the
products at an extension of credit line as an incentive will enhance sales.
 Recruitments. Recruiting distributors from the second district of Northern Samar who
will directly buy the products from the business will yield an additional profit and
broaden the market.
 Discounts. Offering discounts for large number of purchases and availments of services.

V. FINANCIAL ASPECT

6.1 FINACIAL ASSUMPTIONS

The establishment of Liezel’s Sabon Factory Outlet will need a total initial investment of
Php 405,456.46. This will be fully financed by Ms. Liezel Beuna, the proprietor. She will be
entitled to all the profits and losses of the business.

6.2 Budget Assumptions

The following are the expenses involved in the business operation aside from the cost of sales
and cost of services:

o Taxes and licenses. The business will pay for the legal expenses to the
Department of Trade and Industry, Bureau of Internal Revenue, and the Local
Government before the formal operation.
o Consultant’s fee. This will be paid for seeking the service of consultants in
ascertaining the viability of this undertaking.
o Marketing expense. Promotion through radio and flyers distribution will be made.
This expense is presumed to be higher on the first quarter for an intensive
advertisement and will be less and same amount on the following quarters.

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 o Rent expense. A monthly rent expense of Php 3,000.00 will be paid for the space
occupied by the business.
o Salaries expense. Salaries will be paid for the laundry shop operator, store
custodian and liaison employee.
o Utilities expense. This will include the payment for electricity and water.
o Depreciation expense. Depreciation of fixed assets shall be provided.
o Supplies expense. Supplies expense shall be recognized for the supplies used.
o Miscellaneous expense. This will include transportation and other expenses.

VI. Socio economic Aspect

The establishment of Liezel’s Sabon Factory Outlet and Laundry Shop in Lavezares, N. Samar
will be beneficial not only to the proprietor, but also to the community. The gains that each
sector of the society can obtain from the business operation are stated as follows: The primary
objective of this undertaking is the profit that the owner will derive from its operations. Offering
quality personal care, home/building care, and car care products at a low price can induce more
customers to buy these products; thus, generating more income. On the other side, the proposed
laundry shop will also contribute to the overall profit of the business. Plus, the fact that there is
still no existing business in town that provides the same services that it offers such as washing,
drying, and ironing clothes will make customers who seek these kinds of services go directly to
Liezel’s Laundry Shop.

The low price of the products that the business will offer will generate more savings to its
customers than if they choose to patronize other brands with equal quality but of a higher cost.
These are designed to maintain good personal hygiene and cleanliness of the surroundings and
personal belongings; thus, providing a more healthy environment. The laundry shop will ease the
lifestyle of the members of this sector as it will lessen the burden of doing the laundries every
now and then. Liezel’s Sabon Factory Outlet and Laundry Shop at its inception will need experts
and laborers for the design and construction of the building which serve as the venue of its
operations. Subsequently, it will also hire some personnel who will operate the business. On the

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whole, the establishment of this business will create employment opportunities for this sector.
Since Liezel’s Sabon Factory Outlet and Laundry shop has a fixed supplier of the goods that it
will sell, all the inventory demands of the business will go to it. Thus, creating additional sales
on the part of the supplier.The right of the business to earn income from its operations has its
corresponding duty and responsibility of paying its taxes and licenses which will provide the
government additional fund for the provision of services to the public.

VII. CONCLUSION

We choose Self Service Laundry Business because it is more favourable by clothing and hotel
company for cleaning purpose. Other than that, every level of society can use it and have higher
rate of demand from students and workers. Demand for self-service laundries is growing, not just
in Philippines but also around the world. Now adays, Asean countries are likely to
expanding Laundry industries market. That’s signal Self Service Laundry Business can easily to
be expanding their business to neighbouring countries. As the laundry services market
continues to grow and expanding rapidly. There is theory said that high population density, there
are more opportunities to be had. For your information, there are several outlets that
used American-grade washing machine. In the Klang Valley alone, there are said to be more
than 1000 laundry outlets offerings a variety of service. Now country side should be focused
on expanding this business because it have high potential too. As we know, this business takes
several years to break even operationally and see return on investment kick in with margins of
about 60%. After that you will gain increasing profit monthly and after that, annually. This
business is fully automated and no need for labour in a self-service business. The only job is
the maintenance of the washer and dryer and collect money from the machines.
The maintenance is usually weekly and monthly. If there are emergency or broken machine, then
the maintenance of the machine will be often.

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