Stinky Laundry Business Analysis

Topics: Laundry, Economics, Washing machine Pages: 11 (3630 words) Published: October 12, 2012
Table of Contents
Table of Contents2
The general nature of this business activity4
Benefits to society in terms of need satisfaction4
Why we chose this business venture5
2.Idea description6
The nature of our products and services6
Reasons why consumers will buy our products/services7
Our special services7
3.Idea feasibility8
7 important site selection factors11
Location of business12
How location factors apply to our business12
5.Enterprise Forms13
Type of enterprise13
Factors of selection of enterprise13
Legal name of business13
6.The Environment14
Internal environment14
Market Environment15
Macro environment of South Africa17

The general nature of this business activity
The cleaning of garments and other fabrics, that get dirty from everyday use, has always been a difficult task. Machines have reduced the labour but not much has changed in the three basic functions of laundering: cleaning, drying and finishing. The commercial laundry business offers laundry services to customers and is a very reliable and profitable investment. It requires minimum supervision and low operating costs. It has a typical return on investment of about 20-30% and classified as one of the safest investments with numerous benefits. It is a great part-time venture that requires a small amount of or no prior experience and can be located almost anywhere. It is highly profitable especially when located in minority communities and low-income neighbourhoods. It is also one of the most recession-proof investments. Many households use Laundromats on a daily basis with the key customer representing the fastest growing segment in the nation. Benefits to society in terms of need satisfaction

The predominant benefit of the services offered by a Laundromat is convenience. People make use of this service because getting their clothes and other garments cleaned is a basic need satisfied by services on offer by Laundromats. People whom lack the time or money to do the washing at home prefer a quicker and easier way to getting it done. Students and other individuals staying in non-permanent residences like hostels or apartments mostly make use of this service. Other examples include organisations that make use of uniforms that is dirtied on a daily basis e.g. Mechanics and butchers. Another benefit is people who struggle to get their garments dry due to bad weather conditions (in winter) can dry-clean it at Laundromats. Lastly, it saves money that would otherwise have been spent on detergents and appliances.  

Why we chose this business venture
We chose this business because there is always a need for Laundromats. It is cheap and easy to start and it is very sustainable because people need to use this service throughout the year regardless of the change of season. Innovative ideas can easily keep you ahead of your competitors like having specials. It is a very profitable venture and is very stable. Students would always want to make use of this service because it is quick and easy and removes the hassle of having to deal with your laundry. The laundry business is very stable, and unfailingly profitable. Families need clean towels and sheets regardless of other economic factors. People need clean clothing in summer and winter, on vacation or working, whether they are newborns, teenagers or retired

2.Idea description
The nature of our products and services
Our coin operated, self-service, washing and drying machines will serve as the base of services. Each load off washing ash will cost our clients R8 and for every load dried, we will charge R9.50. Customers have the convenience of coming into our shops doing their laundry, enjoying the benefits of our other services. Our other services include: •Ironing or pressing of clothes. On request, our customers can get their clothes ironed or pressed by our attending staff at a fee of R10/kg. •Selling...
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