Business Plan

LAVADA ME!
we Pick-up, we Deliver

Leah dela Cruz Nielbert de Leon Jedrek Estanislao Ariel Gumabon Erle Lope Rachelle Ronquillo Rod Rojas

Need and Business Potential

 

 

there is money in dirty laundry growing demand over the past few years  Increasing # of private businesses do not have their own facility  Growth of urban dwellers who no longer acquire maid services Company has a captured market


a chain of spas in the QC area owned by a good friend

Major target market are establishments that have heavy laundry volumes


Motels, Health Spas, Massage parlors, Catering services

Home Furnitures

Business Name


LAVADA ME!

Suggests:


Customer Service

I will do your laundry for you Madaming Labada, kayang-kaya! Mr Clean Commercial of the 90s (Labadami! Labango!)

Volume Laundry Capability

Catchy

LAVADA ME! MISSION - VISION

Our Mission Our company is dedicated to free our clients from the hassle of dealing with dirty laundry. We are committed to the utmost care and cleanliness of their fabrics and upholsteries. We do our best to pick-up and deliver our clients laundry orders on-schedule, all the time. And we do this for them in the most efficient and affordable way that we can. Our Vision Realizing the need of various institutions for fast, clean and economical laundry services, we see ourselves as one of the largest laundry services in Metro Manila catering to majority of the restaurants, hotels, motels, hospitals and other establishments. By giving quality service, we would also be the trusted team for homeservice cleaning and pick-up-deliver laundry service for most city dwellers.

Management and Ownership Structure



This project will be owned and managed by the partnership of Mr. Ariel V. Gumabon and Dr. Nielbert John P. de Leon and will be listed as a partnership

Location


The initial establishment will be located at the the owners residence in Anonas, Cubao, Quezon City. There is an idle facility in the owners backyard which LAVADA ME! will use as both the production area and start-up office. The space is approximately 50 sqm with a 20 sqm covered area. The location would enable us to be in close proximity to the initial target client who has 3 of his 4 spa branches in the Quezon City area. LAVADA ME! likewise considers acquiring a warehouse in Rizal or other neighboring towns

lower rental cost and at the same time expand market share to commercial customers within the factory San Mateo, Rizal was considered because it is an emerging commercial and industrial hub and is expected to experience an increased migration of city dwellers. The same is likely to happen to Taytay, Rizal which has open access to both North Manila via Marcos hi-way and Southern Manila via the c6 road, Taguig allowing for greater market access.

Products and Services



LAVADA ME! is a total fabric service center which specializes in washing, drying, pressing, ironing, stain removal and linen recovery. Its Institutional Services includes all fabric related cleaning. Other services include home-service upholstery, furniture and carpet cleaning.

Products and Services

DETAILED PRICING:
BASIC WASH- DRY-FOLD Comforter Assorted T-shirts, shorts, blouse, socks, etc BASIC WASH-DRY-PRESS Assorted T-shirts, shorts, blouse, socks, etc HAND WASH Barong (short or long sleeved) Long sleeve (trouser) Coat Overall/Coat DRYING Assorted Bed Sheets, Curtains, Towels Seat Covers with Foam Seat Covers w/o foam 25.00/kg 30.00/kg 45.00/kg 30.00/kg 40.00 40.00 40.00 55.00 35.00/kg 45.00 /kg 25.00/kg

Products and Services

DETAILED PRICING:
DRY CLEANING Evening Dress Dress Ordinary - Long Lady Suit (2pcs) Dress Plain Jacket-Ordinary Jacket Large Jacket Medium Blouse Jumpsuit Coat w/o lining Barong Kid Large Bkid med Bkid small Necktie Cap 180.00 120.00 180.00 120.00 100.00 150.00 130.00 75.00 140.00 120.00 65.00 55.00 45.00 30.00 30.00

Products and Services

DETAILED PRICING:
DRY CLEANING Suit (2pcs. -Coat and pants) Long Coat Coat-Large Coat- Medium Coat-Small Coat-kid Barong Pinya Barong-Ordinary Polo Barong Wedding Gown Pants Skirt-Long Skirt-small Skirt-Pleated Lady Coat Suit (2pcs. -Coat and pants 220.00 220.00 140.00 120.00 110.00 100.00 100.00 90.00 80.00 450.00 75.00 75.00 55.00 90.00 110.00 220.00

Business Model


The business model is basically

subcontracting.


We will entice potential clients to save space and effort that may steer them away from their core competence and in the process our company benefits from a degree of economies of scale to make for a win-win partnership.

Target Market


The primary service that will be offered is the machinewashed laundry with ironing. This is for a specific customer initially but will later be extended to other institutions.

primary target markets are the commercial users with high volume of laundry requirements such as hotels, restaurants, gyms and spas.

Secondary market will include urban dwellers in dormitories and condominiums. The secondary market will also be catered for special home-service cleaning such as upholstery and furniture cleaning, carpet stain removal and other similar offerings.

Keys to Success


Market Capture To fuel the operations, we must first secure our first client which also happens to be the reason that we are starting up. Right tools for the Job We must purchase the right equipment and materials ensuring that we have enough capacity to serve other would-be clients. Eventually, the search for more durable, more efficient and more energy-saving equipments will be done to gain more long-term profitability. Broader horizons To be able to expand, efficiency is the key. We must be able to produce clean and freshly-smelling laundry at the lowest possible price to be competitive enough to offer our services to other similar institutions.

Product and Marketing Plan

Unique Selling Proposition: Total Fabric Service


For industrial laundry service: We want our partner companies to focus on their core competencies and not throw away their limited skilled manpower, budget and commercial space just for laundry. We believe that they can benefit from better quality laundry while spending less if not the same as when they would handle these activities themselves. For our commercial laundry service: We want our clients who are mostly the working class city dwellers to be free from laundry work which we think they can afford to pay for. Keeping in mind their busy schedules, they dont even have to send us their laundry; well pick it up ourselves. Aside from that, we also offer to clean their dirty carpets, mats, sofas and mattresses while picking-up their laundry. A complete fabric cleaning service.

Product and Marketing Plan

Marketing Plan and Promotions


Print advertisements specifically flyers will be use to promote the business. These will be given out doorway to doorway to target market specifically local resorts, motels and other private businesses. On the first few months of operation, the COMPANY also intends to have promotional discounts to encourage trial of the service. The COMPANY likewise plans to set-up a website and also promote on online free advertising sites such as epalengke.com to expand market reach.

Business and Management Team



LAVADA ME!was born out of the opportunity offered to Mr. Gumabon to give a service that was initially given by somebody else. A great deal of networking has helped him attain this captured market. The group thought that since the opportunity to start is already there, we might as well maximize the opportunity.

The Key People for this Business will the:

Chief client Aside from being the primary and exclusive client at startup, he may be influential in getting more clients for the company. Operations manager Since the costs need to be minimized the managers keen attention to detail will help optimize efficiency. Also, quality of output will be greatly scrutinized during the first few runs, especially in newer clients. The manager must be able to achieve these requirements. Marketing personnel He must be able to cluster clients in such a way that expansion of client base is systematic. If geographical distance between clients, especially for commercial laundry, is too far, this may actually lead to losses. The laundry volume may be too small to cover all logistics expenses.

Financial Strategy
INITIAL INVESTMENT DETAILS: FOR 5 TONS OF LAUNDRY 1. Investment Investment through cash Total Investment P 400,000.00 P 400,000.00

2. Acquisition of Machineries a. 2 Whirlpool Topload Washers Model : 4PWTW5905 P b. 2 Whirlpool Dryers Model : 4PWED5905 Total: P 3. Acquisition of Other Equipment a. 1 Phillips Steam Flat Iron Model: GC 4400 Series P b. Ironing Board c. 1 Weighing Scale d. Water Hose (50 ft) e. Calculator f. 4 power regulators Total: P 4. Acquisition of Water Tank Water Tank Free Installation Total:

34,498.00 31,998.00 66,496.00 4,600.00 730.00 2,799.75 730.00 200.00 1,399.00 10,458.75

P P

9,999.95 0.00 9,999.95

Financial Strategy
INITIAL INVESTMENT DETAILS: (continued) 5. Cost of Renovation a. Labor cost for 6 working days (P 350 x 4 Workers x 6 Days) b. Total cost of materials (Wood, Paint, Paintbrush, Nails, Etc.) Total:
Installation of Equipments Installation of Clothes Hanger Painting Plumbing and Sink Installation Comfort Room

8,400.00 21,600.00

30,000.00

6. Acquisition of Fire Extinguishers Good for one year a. 2 x 10lbs. Fire Extinguishers for P 2,000.00 / each P 7. Acquisition of Furniture and Fixtures Table Chairs Sofa Cost of Installation of Counters and Shelves Total

4,000.00

900.00 400.00 2,500.00 9,200.00 13,000.00

Financial Strategy
INITIAL INVESTMENT DETAILS: (continued)
8. Acquisition of Supplies Good for One Year Pair of Gloves P 99.50 / 2 pairs Hangers (Plastics) P 159.50 /12 pcs. Order Slips P 337.50/ 500 sheets Delivery Slips P 520.00 / 500 sheets Ball pens P 100.00 Mask P 60.00 / 2 pcs 1 File Organizer Rack P 400.00 1 Record Book P 75.50 Plastics for Clothes Bagging 24x40 P 2840.00 / 1000 pcs. 23x26 P 2560.00 / 1000 pcs 24x60 P 4265.00 / 1000 pcs. TOTAL P 11,417.00

Financial Strategy
INITIAL INVESTMENT DETAILS: (continued)
9.Cost of Direct Supplies Cost for Wash Dry Fold per week Cost for Wash Dry Press per week Cost for Handwashing per week Cost of Dry Cleaning per week P 1449.07 64.19 44.10 283.15 1,840.51 total cost per week 1,840.51 per week X 52 weeks

Direct Supplies Plus Supplies Cost per year \

95,706.52 11,417.00 107,123.00

PROFITABILITY


The initial service capacity will be 5 tons of laundry with initial capitalization of 400,000Php. Gross sales will be 120,000Php for 4 tons on laundry at 30Php per kilo
(based on clients actual laundry expense per branch per month)

Target profitability will be around 7 to 8Php per kilo or 28,000-32,000Php (23-27%)

(based on some interviews with laundromat operators)

The target is to sub-contract 3 of their 4 branches within the first year of operations.

END OF PRESENTATION