1.1 Executive Summary
Cloth washing was an unavoidable routine among students of higher learning nowadays. Some students will wash their by using hand, but others will prefer wash by washing machine because of time saving especially during exam period. The need for cloth washing has created a market to serves the students of higher learning. Therefore, we decided to enter the cloth washing market by starting a laundry business in UTM Skudai campus called Ken’s Laundry Sdn. Bhd.
Though many might think that now every student hostel has one or two coin operated washing machines in house, laundry business is going downhill and heading to the exit. However, laundry business is greatly overlooked. This business is actually one of the best businesses to start off. A laundry business is stable, reliable and grows steadily with time.
We have decided to start the laundry business in UTM Skudai campus is because of it has more than 22 thousands students and 95% percent of the students were subjected to live in the campus. Also, students are having a busy academic life which makes them has less time to do their laundry work. Additionally, convenience also plays a role. Besides, coin operated machine usually will break down or malfunction and cloth washed will not be clean as laundry services, therefore, some people would rather pay for laundry service than spend their quality time doing it. All of these factors lead to a high demand of laundry service. Laundry service is also a reliable business which grows steadily in time, thanks to people natural to stay loyal to their service providers. If we provide very good service to people, we can expect them to visit us regularly like clockwork. Furthermore, loyal customers will bring in more customers through word of mouth. If we do well in the customer build-up process in the early days of the business, the growth of our business is ensured. Therefore, the business strategy to keep the old customers and attracting new customers at the same time is very important.
Other key ingredients of a success laundry business include good systematic management, professional customer service and good marketing strategy. However, to ensure a good start to the business, a systematic and detail financial plan should be developed. Therefore, this project shows our thorough analysis of all financial aspects involved in the business, including machine selection, economics life, costing of product, financial accounting and ratio analysis.
To start our business, we need to purchase several laundry machines and other assets. After the market research, we have figure out a few suppliers who are prepared to offer us with the packages as shown in the Section 2. We need to found out which of the packages yield the most economical investment. For this, we have implemented the incremental analysis to evaluate and compare each of the packages.
Apart from the main components which are the laundry machines, we need other assets, equipments and material as well to operate. The costs of the business components are all listed in Section 3. Meanwhile, the overhead cost for our service is calculated and displayed too.
1.2 Mission Statement
Ken’s Laundry provides the good quality service in clothes washing by applying the concept of laundry shop with delivery provided. Our laundry service is the best washing solution available in the market judging from the washing quality and prices offered.
1.3 Description of Services
Customer can get our washing service at our laundry shop which provides washing, delivery and ironing services. Our dedicated washing machines are capable of washing all kinds of clothes as well as for the blanket washing. Ironing service will be provided in our laundry shop to satisfy our customers’ needs. 1.4Promotion
The positioning of our shop is we provide quality delivery service, so that we can attract more loyal...