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Business Feasibility Study (Example of Project Business Feasibility Study)

Laundry Project “Biba Lavandera”

A. Name of the Enterprise

Biba Lavandera Laundry Shop

A business name is one of the most essential things to be prepared in starting a business.

Biba Lavandera as the primary name of the business, originated from the noun word “bibo” that

means smart or bubbly. It is used to refer a person that is active and has energy. “lavandera”

The name “Biba Lavandera” is unique, simple and easy to remember. People will easily

visualize what the business is about and it will aid to their memory. It includes the information

that the business does and can easily be understood by various target market.

The business logo shows a bubbly girl to represent Biba, a sun to denote a bright day for

doing laundry with the name of the enterprise. The colors used are on the light shades to be more

attractive and leave a clean and fresh image.

B. Location

The location of the business is at Blk 79 lot 3 Ginseng Road, Robinsons Homes East Bgy.

San Jose, Antipolo City. Biba Lavandera is inside the Robinsons Homes. Basically, the business

is intended for the residents of the community because not all the residents have house helpers to

do the laundry. Many residents are working and they are too busy to do the laundry so this kind

of business is good enough for the people inside the community. The main location is near the

Robinsons clubhouse

This is the map of the whole Robinsons Homes East which has approximately 3, 400-4,000

occupied houses (from wikimapia).

C. Description of the Project

Primarily, the project is intended for the residents of Robinsons Homes and not in line

with any other government advocacies. However, this may support a clean living which is aimed

by the Department of Health but this project is basically to help the residents lessen their

workload and ensure that their clothes are clean. It does not support any political aspects of the

government or other organizations in the community.

Biba Lavandera significantly acts a helper for the people who does not have enough time

to do the laundry. It will be managed by a partnership who is a resident of the community.

Through that, the target market is rest assured that the owners of the business adhere to what they

need to get full satisfaction. This project will be managed by the people who know the feeling of

being unsatisfied with what results they get from doing the laundry at home. The owners use of

technology today should be able to respond to the needs and wants of the customers. In that case,

a laundry shop is the answer to the need for clean clothes in less time, less cost and less effort.

D. Long- range Objectives

To be able to expand the business in other areas of the community in its three operating

years.

To gain 50% of loyal customers in a year.

To dominate the market in the community and define the edge of Biba Lavandera laundry

shop from its competitor inside the subdivision in six months time.

To establish a good brand to customers and gain brand loyalty in its first three months of

operation by prevailing a socially responsible enterprise.

To increase profits in half a year’s time.

E. Feasibility Criteria

As a socially responsible business, it adheres to the responsibility of having a good

impact on the environment. Profitability is not just the major aim of the project but also to be a

socially responsible business by promoting a healthy environment in a simple way of wearing

clean clothes. 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

i. History

The project came about the thought of a business partnership between the group members

originating from a water refilling station up to the laundry shop. Thinking of what business to put

up that suit inside the Robinsons Homes is really the main thing. 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.

ii. Project Timetable Status

The 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.

Presently, the business is in the stage of introducing a new brand in the market. A

laundry shop is not new in the market though so product innovation and sales management are

important in order for the business to grow.

iii. Nature of the Industry

Laundry industry is a strong and energetic business. Also, what makes it more appealing

to the market is the fact that this steadfast service industry continues to grow and succeed. The

demographic trends toward an even greater dwelling segment of the population forecast

continued success.

The biggest threat for the business is the competition. Considering that the business site is

inside a subdivision, it is possible that other businessmen would think of putting up the same

business and hence, the market will be more segmented and it yields a smaller target market for

the laundry shop. However in the long- run, the business will not just dominate the whole

subdivision but will also extend to other places like the nearby subdivisions near the Antipolo

church and probably other areas like Taytay, Cainta or Pasig.

Laundry shops are easily managed through the use of new technology. It lessens the time

and effort that are spent in getting the clothes cleaned. The normal time spent in getting dirty

clothes cleaned is like two hours depending on the number of clothes to be washed and its sizes.

However, the laundry industry belongs to the service industry where the product is primarily the

service given to the customers. Take note of the service, it comprises of the use of detergent

soaps to be used for the clothes, the water consumption, space to be saved by the customers in

hanging their clothes to dry and the electricity that can be saved for ironing them. Generally, this

kind of industry is really seen on the go for the target audience because of convenience and

practicability.

iv. Mode of Financing and Investment costs

The mode of financing will be from the partnership of Alburo sisters. It will come from

the savings of both and this business will be their primary 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.

The estimated cost of the total business is ????????????. Funds will be allocated as

follows (php):Store rental ; Total price of the equipments (approx) ;Maintenance ; Store

renovation; Manpower.

v. Investment costs

G. Major Assumptions and Summary of Findings

i. Market Feasibility

ii. Technical Feasibility

iii. Financial Feasibility

iv. Socio- economic Feasibility

v. Management Feasibility

H. Conclusion of the Study

Market Study

This chapter covers the most important part of the project that intends to define the size,

nature and growth of the demand for the product, description and price of the product, supply

situation, nature of competition, different marketing factors affecting the market of the product

and the marketing program needed.

A. Product Description

B. Demand- Supply Analysis

C. 4 P’s Study

D. Factors Affecting the Market

E. Survey Results

F. Analysis of Data Gathered

G. Conclusions and Recommendations

Technical Study

Presents the products, manufacturing process, plant size and production schedule,

machinery and equipment, plant location and layout, building facilities and the raw material and

supplies for the operation of “Biba Lavandera” laundry

Services

Biba Lavandera will be providing customers with the following laundry services: Wash,

Dry, Fold (WDF), Pressing, Hand Wash, and Dry Cleaning services.

Wash, Dry,Fold or WDF is the most common sought service from a laundry shop. This

service provides basic machine washing and drying; and folding for customers’ clothes,

comforters, towels, curtains and seat covers with or without foam. .

Pressing or Ironing or smoothing is the work of using a heated tool, or tools, such as an

iron to remove wrinkles from fabric. Ironing works by loosening the bonds between the long-

chain polymer molecules in the fibers of the material.

Dry Cleaning is a cleaning process for clothing and textiles using an organic solvent

rather than water. Dry cleaning is necessary for cleaning items which would otherwise be

damaged by water and soap or detergent. The cleaning process of dry cleaning is more time

consuming compared to the usual wash, dry, fold process,