Assignment 2: Feasibility Analysis
BUS 402: Small Business Management
The fast change of leaning from individualized laundry to commercial laundry services corresponds with effective technological change as well as the fast, changing, and modern lifestyle of consumers. Laundry business is an accessible and beneficial business to start. It is not capital or management intensive. You can start this business right from home and grow from there. It is a very lucrative business, not everyone that puts on clothes has the time to do the laundry. That’s why I would offer laundry services and dry-cleaning services. Once I grow and open at least two more stores, I would offer pickup and drop off services for a service fee.
Survey’s conducted the reasons why students and young adults go to the laundry shops, instead of doing it to their own. It’s because of set schedules, especially those students who have a lot of extracurricular activities in school, others say, they don’t like washing their clothes because it is just a waste of time (laziness). Some boarding houses didn’t allow washing clothes in consideration of the consumption of water.
In the financial sector, investing in a coin-operated laundromat is capital-intensive. This can be related to the purchase of the equipment to be used in operation, especially the laundry machines. However, despite being capital-intensive, the payback period in this business can be expected in an acceptable period. Also, due to its nature as a cash business, there will be no possible long-term receivables and liabilities. Also, based on this study, profitability in this business can be foreseen in an endless and satisfying result. (A. Santos, 2017)
In the laundromat- dry cleaner business has promise when it comes to turning a profit. I’m expecting revenue of 30% profit in my first year, especially in the winter months. More people tend to dry their clothes in the winter. In the winter, due to more machine-drying and less hang-drying. Now, on the other hand, it’s also expected that revenue will be 10-20% less in the summer due to hang-drying in the sunlight that people use more .
Furthermore, with this beautiful potential area, the laundromat and dry cleaners should do well. I know there are houses in the area, and they have washers and dryers in their homes. But, I will also accommodate their needs as well with a dry-cleaning business for the businessmen and women. I’m expecting the growth should be at least 15% annually just from the dry cleaning alone. I know that the monthly profit that I have researched has already considered the minimum monthly loan payback. I have in my business plant that all outstanding interest I will pay it back towards my loan as additional payback.
I will keep this business and move it to another area, that has more traffic, apartments, and just a busier area altogether. So, it’s been a year since my business plan, before my start date I have had plenty of time to research everything for my business. Also, during this time, I uncover what it will take to turn all my ideas into an operational business. I’ve scheduled meetings with my business investors and my attorney, accountant, and my banker.
I also got my licensing and permit requirements for my laundromat. I know what I will have to pay for tax implications and start-up costs. My plan will allow me to streamline my business ideas and organize a budget. My creditors and investors have taken a look at my business plan, and they liked it.
Now that my business is ready to go in three months, and before my anticipated start date. I will have most of the legal necessities taken care of before I open. Now is the time for me to make equipment and inventory purchases and arrange for delivery. I ordered office products and supplies and established a merchant account to accept credit card payments. I wrote out job descriptions and place job postings to attract qualified employees.
When I get down to a week or two before I open my doors, I will start setting up my office and I an open house planned. I will hang my grand opening signs. I also will place advertisements in local business newspapers and publications. I’ve contacted all of my friends, family members, and business colleagues. I’ve let them know when my business will open.
Now that I am ready for business I will make sure I am a well-rounded entrepreneur and help others to open their own businesses. And my goal is to keep my business a float , and multiple my business in years to come.
Association for Accountancy & Business Affairs
1977-09-061980-08-05Brehm Timothy LCode controlled microcontroller readout from coin operated machine
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