INSTAWASH

LAUNDRY
BUSINESS PLAN

SUBMITTED BY:

SUBMITTED TO:
DESCRIPTION OF BUSINESS

Instawash Laundry is a full-service laundry (washing, drying and folding) service dedicated to
consistently providing high customer satisfaction by rendering reliable machines and furnishing
a clean, enjoyable atmosphere at a competitive price/value relationship.

Our mission is to provide convenient, clean, and friendly laundry service while our motto is
"Professional, convenient, friendly service and competitive pricing".

Instawash Laundry is located at 18, Fendler Street, East Tapinac, Olongapo City, 2200 where it's
the closest and most convenient place to get services. Being the sole Laundromat in this
neighborhood and surrounded by residences, there is no potential for a competitor.

(047) 222 8596

ALLOCATION

CAPITAL: ₱ 1,500,000

Washing Machine ₱ 70, 0000

Electricity ₱ 20,000

Water Bills ₱ 25,000

Rent Expense ₱ 20,000

Salaries ₱ 40,000

Permits ₱ 10,000

Maintenance/Emergency Budget ₱ 100,000

Bleach ₱ 30,000

Detergent ₱ 15,000

Flat Iron 500 each x 10 = ₱ 5,000

Iron Stand 500 each x 10 = ₱ 5,000

Hanger 1,000 pieces = ₱ 5,000

Clothes Line ₱ 500

Digital Scale ₱ 2,000

TOTAL ₱ 977,500

SAVINGS ₱ 522,500

PROCUREMENT
 Big Wash Machine Distributor
 Puregold

EFFIECIENT MANAGEMENT FOR CAPITAL

MAXIMIZATION

1. Dry cleaning: You needn't own a dry cleaning facility in order to offer dry cleaning. Instead,
get in contact with a dry cleaning business and work together to find a mutually beneficial
 arrangement in which you bring your dry cleaning business to them. They will likely jump at
the chance to do more business, and you can take a cut of the profits.

2. Detergent and fabric softener: It is likely that customers want good products for their fabric.
Sell good quality fabric softener for a modest markup.

3. Keep your Machines maintained: An early inspection that catches a small tear in a piece of
tubing will likely cost significantly less to fix than a leak that flooded your shop and rendered
one or more of your machines out of service until they could be fully repaired, which is why it
pays to keep your machines in tip-top condition.

FINANCIAL CAPITAL
SOURCE OF CAPITAL (EXTERNAL)
 Bank Overdraft – 25% of the capital from a short-term loan

SOURCE OF CAPITAL (INTERNAL)

 Owner’s Investment – 75% of the capital from the savings

HOW WILL YOU MANAGE WORKING CAPITAL?

MANAGING RECEIVABLES

1. Create a tracking system. Develop a payment-tracking system that alerts us of overdue

payments. The sooner were aware of late payments, the sooner we can take action.

2. Follow strict protocol for missed payments. Create a contract delineating clear payment
guidelines so there is no room for client misinterpretations. Ask our clients to sign the
agreement before providing our services. Have a letter outlining the consequences of a missed
payment ready to mail, and follow up with a phone call to the client in case a payment becomes
late. A phone call reinforces the importance of prompt payment and may provide additional
insight about why the payment is late.

3. Conduct credit checks. When working with a new client, it may be wise to conduct a
thorough credit and background check.

4. Avoid extended payment terms. Try not to extend payment terms beyond 30 days when
the economy is tight. If you have an existing contract that extends beyond 30 days, consider
offering a discount for faster payment. Don't extend credit or terms unless you've verified that
a customer is in a position to repay.
MANAGING INVENTORY

R = ₱ 540,000
Order Cost = ₱ 45,000
Carrier Cost = ₱ 100

A. √𝟐𝒙𝟓𝟒𝟎, 𝟎𝟎𝟎𝒙𝟒𝟓, 𝟎𝟎𝟎 = 22, 045/order

100

B. How many times to order?

540,000/22,045 = 24 – 25 days

C. Working Days 360 Days

360/24 = 15 – 16 days
HOW WILL YOU DETECT AND PREVENT FRAUD?

 Screen applicants thoroughly before hiring them. Hiring the right employees is the best way
to stop fraud before it happens. We need to screen the applicant’s criminal history, civil history
and past employment and references.

 Review accounts payable, invoices, and purchase orders periodically to make sure they are
from real vendors and that we are getting the items you order.

 Consider setting up a surveillance system to keep an eye on customers and employees.

 Set up inventory control policies to keep track of supplies and inventory so it doesn't walk out
the door. We may not be able to count every pencil, but we should know what's in the supply
cabinet or in inventory at all times.

 Prevent identity theft by monitoring our business accounts.

 An effective way to prevent fraud in our business is to create a positive work culture. It is
important that the business owner and senior management serve as role models of honesty
and integrity. If the individuals at the top take a careless approach toward company policies
and procedures, they are inviting their employees to do the same — or worse.

 Set clear standards from the beginning by implementing a company-wide written code of
conduct, and make it clear to employees that the company has a zero tolerance policy for
employee theft. To maintain credibility, we sure to conduct a prompt and thorough
investigation of every incident.