Laundrywashing Machine Service in The Debre Markos Town PDF

FEASIBLITY STUDY OF LAUNDRY SERVICE
DEBRE MARKOS TOWN
FOR
DEBRE MARKOS UNIVERSITY

COLLEGE OF TECHNOLOGY
DEPARTMENT OF ELECTRICAL AND COMPUTER ENGINEERING
(POWER STREAM)
FEASIBILTY STUDY ON LAUNDRY/WASHING MACHINE SERVICE IN

THE DEBRE MARKOS TOWN
By
NO
NAME
ID.NUMBER
1) HAYMANOT TAKELE...TER/1278/03
2) TSIGU BOGALE......TER/1304/03
3) BEKALU TAREKEGN..TER/920/03
4) FASIKAW ABEBE.TER/1375/03
5) AZMERAW ARGAW.TER/1163/03
SUBMITTED TO LECTURE AGEGNEHU S. (MSc)

MAY 2015
DEBRE MARKOS

FOR DEBRE MARKOS TOWN
Table of content
Content
page
LIST OF TABLE ...........................................................................................................................IV

CHAPTER ONE .............................................................................................................................. 1
INTRODUCTION ........................................................................................................................... 1
1.1.
Business Description........................................................................................................ 2
1.2.
Business Name ................................................................................................................. 2
1.3.
General business model ................................................................................................... 2
1.4.
Service Description .......................................................................................................... 2
1.5.
Quality Services ............................................................................................................... 2
1.6.
Company Locations and Facilities ................................................................................... 3
1.7.
Time horizon .................................................................................................................... 3
1.8.
Environmental Impact...................................................................................................... 3
CHAPTER TWO ............................................................................................................................. 4

MARKETING ASPECT.................................................................................................................. 4
2.1. Area Covered ........................................................................................................................ 4
2.2. Market Need ......................................................................................................................... 4
2.2.1. Sample questionnaire for a new laundry service ........................................................... 4
2.3. SWOT ANALYSIS .............................................................................................................. 5
2.5. Marketing potential ............................................................................................................... 8
2.6 Market share and competition.............................................................................................. 18
2.7 Advertising and Promotion .................................................................................................. 19
2.8. Demand Analysis ................................................................................................................ 20
2.9. Supply and Competitor Analysis ........................................................................................ 20
2.10. Sales Projection................................................................................................................. 21
CHAPTER THREE ....................................................................................................................... 22
Technical Feasibility ...................................................................................................................... 22
ELECTRICAL AND COMPUTER ENGINEERING
I
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3.1.
Raw materials ................................................................................................................ 22
c)
Staffing levels ................................................................................................................ 22
3.2.
Suitability of service technology ................................................................................... 24
3.2.1.
Technology Selection............................................................................................. 24
3.2.2.
Descriptions of the Machines................................................................................. 24
3.2.3.
Auxiliary Equipment .............................................................................................. 25
3.2.4.
Office Furniture and Equipment ............................................................................ 25
3.3.
Building and Civil Works .............................................................................................. 26
3.4.
Capacity and Operation Process .................................................................................... 26
3.4.1.
Capacity ................................................................................................................. 26
3.4.2.
Operation/Washing Process ................................................................................... 27
CHAPTER FOUR.......................................................................................................................... 29
Financial feasibility........................................................................................................................ 29
4.1.
Estimate the total capital requirement............................................................................ 29
4.2.
Analysis of Cost Estimates ............................................................................................ 30
4.2.1.
Fixed Investment Cost ........................................................................................... 30
4.2.2.
Pre-Operation Expenditures ................................................................................... 30
4.3.
Fixed Assets ................................................................................................................... 31
4.4.
Accounts Receivable and Accounts Payable ................................................................. 31
4.5.
Net Working Capital ...................................................................................................... 31
4.6.
Total Investment Costs .................................................................................................. 32
4.7.
Production Costs ............................................................................................................ 32
4.8.
Marketing Costs ............................................................................................................. 34
4.9.
Income and profit ........................................................................................................... 35
CHAPTER FIVE ........................................................................................................................... 37

Organizational/Managerial feasibility ........................................................................................... 37
5.1.
5.2.
Business structure .............................................................................................................. 37

Business founder ............................................................................................................ 38

II
GROUP 7

CHAPTER SIX .............................................................................................................................. 39
STUDY CONCLUSION ............................................................................................................... 39
6.1 Conclusion ........................................................................................................................... 39
6.2 Recommendations................................................................................................................ 39
REFERENCES .............................................................................................................................. 40
Appendices .................................................................................................................................... 41

III
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LIST OF TABLE
Table 1.1 starting of our business .................................................................................................... 1
Table.1.2 time horizon ..................................................................................................................... 3
Table 2.1 survey questionnaire on the quality of competitors on laundry service ........................... 4
Table.2.2 SWOT analysis of a new business in relation to competitors .......................................... 5
Table 2.3 Data collected about consumers' opinions of the quality of a laundry service ................ 8
Table 2.4 Data analysis .................................................................................................................... 9
Table 2.5 data analysis about technique of washing ........................................................................ 9
Table 2.6 data analysis about service and method of holding of clients ........................................ 10
Table 2.7 data analysis about keep an appointment of the laundry service shops ......................... 10
Table 2.8 data analysis about like and dislike of the washing laundry machine ........................... 11
Table 2.9 Sample questionnaire about market size and value ....................................................... 11
Table 2.10 Analysis table and respondents answer........................................................................ 14
Table 2.11Potential market for laundry service in Debre Markos town ........................................ 17
Table2.12 (a) Calculation of the size of the market for laundry service ........................................ 17
Table 2.12 (b) Calculation of the value of the laundry service markets ........................................ 18
Table 2.15 Sale projections for first year ....................................................................................... 21
Table 3.1 the machines to be installed are the following: .............................................................. 24
Table 3.2 List of Auxiliary Equipment .......................................................................................... 25
Table 3.3 List of Office Furniture & Equipment ........................................................................... 25
Table 3.4 Project Capacity ............................................................................................................. 26
Table 4.1 startup cost ..................................................................................................................... 29
Table 4.1 Fixed Investment Cost Schedule.................................................................................... 30
Table 4.2 Table Pre-Operation Expenditure Schedule................................................................... 30
Table 4.3 Table Fixed Asset Schedule ........................................................................................... 31
Table 4.4 Accounts Payable Schedule ........................................................................................... 31
Table 4.5 Net Working Capital Schedule ...................................................................................... 31
Table 4.6 Total Investment Schedule............................................................................................. 32
Table 4.7 Direct Operating Cost Schedule .................................................................................... 32
Table 4.8 Administrative Overheads Cost Schedule ..................................................................... 33
Table 4.9 Depreciation Cost Schedule ........................................................................................... 33
Table 5.1 job opportunity............................................................................................................... 38

IV
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CHAPTER ONE
INTRODUCTION
The fast change of trend from individualized laundry to commercial laundry services
coincides with rapid technological change as well as the fast, changing, and modern
existence of Debre Markos city. We can start this business right from home and grow
from there. It is a very profitable business, as not everyone that puts on clothes has the
time to do the laundry. Based on the survey conducted the reasons why, they go to the
laundry shops and there is chance of making a lot of money because this people will
definitely seek our services.
Table 1.1 starting of our business
Is there a demand for the The current population of Debre Markos town is
produce?
above 104,000 including Debre Markos University

students. It shows that we have enough demand to
make our business effectively in this town/city.
Who is giving similar laundry There are four laundry houses in Debre Markos
service to the community?
town/city those gives laundry service for the

community.
What is the cost of starting to The price of the laundry machine service is starting
the
business
of
automatic cost is 1,253,486.000birr.The detergent cost is, based
washing machine service?
on the cloth clients need and there number of cloth

they bring to our laundry service. Therefore, the
starting
cost
becomes
(1,253,486.00 10%
contegency) birr. The operating costs of the laundry

service is depends up on the number of clients.
What is needed to make the To make our business we need: Lots of water as
laundry
service
community?
to
the input, Detergents, The place we want to build the

business house. In addition, the automatic washing
machine controlled by simple programmed.

1
GROUP 7

1.1.
Business Description
Debre Markos City as a built-up city in Ethiopia emerged too many businesses now a
days. It can be, seen that numerous schools and establishment are spotted around the area
advice to look for convenience due to their busy time. In addition, this gives a positive
outlook for some entrepreneurs who were just started in the industry to put their
investment in certain businesses particularly the Laundry business in which the field is
not that much penetrated.
1.2.
Business Name
The right name can make our company the talk of the town especially, when it is unique
and probably would catch their attention. Therefore, the proposed name of our business is
Libanos Laundry Shop originated from the word the name of the largest Keble in
area in Gozamin wereda that means we will wash clothes as hard workers as that Keble,
desire and believe.
1.3.
General business model
Laundry/washing machine facility is one of the service areas that communities of our city
members would like to get nearby their living area. Laundry/washing machine service is
specially requires by the population of the city, which is currently facing various
problems in link with washing of clothes. The community has to spend considerable time
to wash their clothes; have to wait for some time to get free washing compartments; have
to wash within ragged compartments and dirty surrounding; and finally end up with
unsatisfactory wash quality.
1.4.
Service Description
The Business concept of our laundry is typically homogeneous to those other existing
Laundry shops in the city. However, certain things will make it stand and that includes its
quality services, professionalism of its personnel towards its customers.
1.5.
Quality Services
The quality services really matters in our Laundry. It is, planned to provide services such
as washing, pressing, ironing, and folding customers clothes and garments. It will be
2
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using quality equipments and machineries that could greatly help and make the business
exist. It shall offer affordable cleaning too, making sure that the output will reach its
quality standard.
1.6.
Company Locations and Facilities
The laundry machine will be located in Debre Markos city, around Debre Markos
University. It will utilize 150 square feet (250 square meters).
1.7.
Time horizon
Table.1.2 time horizon

Time
April
May
Data collecting
X X
Selection of the location of the business X X
X X
XX
XX
center
Showing Progress
Data analysis
XX
Feasibility document submission
1.8.
Environmental Impact
a) Water Issues
Washing machines are second only to toilets as the largest water users in the home,
accounting for 14 percent of household water use. In our business, we need lots of water
to success this means that we ask the administration of Debre Markos town to give this
permission.
b) Energy Issues
Supplying the water for washing machines consumes a considerable amount of energy. In
total, water supply and treatment facilities use about 5000 kilowatt-hours per year.

3
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CHAPTER TWO
MARKETING ASPECT
The marketing aspect will serve as the basis of the financial section through the projected
demand. This includes the area covered, target market, proposed location, competitors,
the demand and supply, demand analysis, marketing program and SWOT analysis.
2.1. Area Covered

This is to identify a point or an area of study. Geographic target is in Debre Markos City
located around Debre Markos University as a primary market. This location composes of
schools Endimata primary school, Debre Markos university; establishments; apartments
and boarding houses. From these components, we will determine the population of those
living in apartments and boarding houses where our target market is situated.
2.2. Market Need

The survey says that the needs of the market are of the following factors enumerated
below. Therefore, this would be our basis to achieve customer satisfaction and they will
be able to continue availing the service. These are quality of cleanliness, price,
timeliness, and customer service.
2.2.1. Sample questionnaire for a new laundry service

We prepare 50 numbers of questionnaires and distribute to the nearby peoples to the
laundry service. When we collect the questionnaires from the 50 questionnaires, 44s are
able to return back but the other six are not permits to return the questionnaires.
Table 2.1 survey questionnaire on the quality of competitors on laundry service
Question
Answers
1. Do you use laundry service to wash your cloth?
Yes

4
GROUP 7
No

1.
2.
Which type laundry service is best for you (in terms of the laundry Only water
machine uses the material to wash the cloth)?
Only chemical
Is water or chemical?
Both water and

chemical
answer
3.
Yes
Do you think you want a best laundry service?
No
Not sure
answer
Only 12% are not returns the paper and answer. From the answered questionnaires 80%
are say yes and both water and chemical. In addition, the remaining 8% answer is no.
From these questionnaires, it indicates that when we start our business we have enough
customers, make a very good, and fruit full laundry shop service. In our city Debre
Markos, there is scarcity of laundry service and the community needs best laundry
service with best client holding method, plus to that of day of appointment.
2.3. SWOT ANALYSIS

Table.2.2 SWOT analysis of a new business in relation to competitors
My proposed business
Competitor A
Competitor B
Competitor C Competitor
D

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S Using machines with Good
t
quality and brand
High
brand Good
image
and image
profitability range
of range
brand Laundry
Good
brand
is image
and
of cheaper than range
of
and service
because it is more products.
products.
A and sells products.
accessible to market
Nevertheless,
well
Nevertheless,
g Quality output and there

t
faster service
is
no with
customer
price.
h The location is on satisfaction.

s
the
main
nearest
high offer
good with
margin
retailers.
Accessibi
lity of the
the
location
houses,
apartments
high
to price
city
to
boarding
They Nevertheless,
and
schools
Location is just a
walking distance
Prices are relative,
competitive
and
accords to what the

customers want
Does not need a
large
amount
of
capital
Accessibility of the
location
Lack of experience Service
as this will be the more
first
overcome
market in the said example
location
time
is Service
expensive
to expensive
the than
wash
example
is It is not only As
expensive
one not
to woolen
they quality
one ask

6
machines
to but also they with
B wash
the
brand
use and quality is
the detergents.
expensive,
maintenance
GROUP 7

s
As
machines woolen
the
they customer
and ask
40
will be quite
the Ethiopian birr.
expensive as
45 Uses synthetic
well
with
quality is expensive, customer
maintenance will be Ethiopian birr. colors,
brand
and
quite expensive as Uses synthetic preservatives.

colors,
well
and
preservatives.
O Continuous
Students,
Students,
to Continuo
Appears
development of the
working
working
be expanding
us
city
profession
profession
deliveries to
developm
new establishments
als
als
for
other
(apartments
boarding houses)
with
having
residential
n Students,
and
working
and
areas
ent of the
other
according to
city with
communit
communit
newspaper
having
parts
having
and new
parts reports.
new
having
establish
professionals
and
lack
of
lack
of
ments for
other
community
time
in
time
in
residentia
parts having lack of
doing
doing
time in doing their
their own
their own
(apartme
own laundry
laundry
laundry
nts
Only
four
and
boarding
competitors nearest
houses)
which are present in

the town away from
location we want to
start.
T Price variations
Cheaper
May
have May
h Future competition
laundry
over-
over-
service
than expanded

7
have Price
variations
expanded
GROUP 7

e
B.
distribution
distribution
network
and network and
failing
make
make
deliveries.
deliveries.
to failing
to
2.5. Marketing potential

Table 2.3 Data collected about consumers' opinions of the quality of a
laundry service
Question
Summary of 44 replies
Very
Good Averag
good
Bad
1. What do you think about the service 12 or
Very
Total
bad
28 or
3 or
1 or
0 or
44 or
24%
56%
6%
2%
0%
88%
2. What do you think about the 3 or
4 or
16 or
12
or
18%
of the laundry shops?
technique of washing the cloth of the

laundry shops?
6%
8%
32%
or 44 or
88%
24%
3. Do you like the service and method 7 or 14%
20 or 10
or 6 or 1 or 2%
of holding of clients of the laundry
40%
20%
12%
or 4 or
4 or
4 or
8%
8%
8%
44 or
88%
service?
4. What do you think about the keep 32
0 or 0%
an appointment of the laundry service 64%
88%
shops?
5. Do you like the washing laundry 14
machine?
44 or
or 10 or 16
28%
20%
or 0 or
0 or 0%
32%
44 or
88%
0%
6. What do you think about the 6 or 12%
15 or 10
structure of the laundry machine of top
30%
loading?
8
20%
or 13
0 or 0%
or
44 or
88%
26%
GROUP 7

7. What do you think about the 20
or 15 or 9
structure of the laundry machine of 40%
30%
or 0 or 0 or 0%
18%
0%
44 or
88%
front loading?
7. What do you think about the price 5 or 10%
7 or 20
of the laundry per cloth?
14%
or 12
40%
0 or 0%
or
88%
24%
Table 2.4 Data analysis
Question
Very
Good Average Bad Very
good
Total
bad
28 or
3 or
1 or 0 or
44 or
56%
6%
2%
88%
service of the laundry shops?

24%
0%
From the 88% of the customer says that 24% of the service of the laundry shop is very
good, 56% of the service of the laundry shop is good, 6% of the service of the laundry
shop is average, and 2% of the service of the laundry shop is bad. From this, we can
conclude that the service of the laundry shop is mostly good. Therefore, this indicates to
us, we can start a very good laundry service shop.
Table 2.5 data analysis about technique of washing
Question
Very
Good Average Bad
good
16 or
8%
32%
technique of washing the cloth of the

laundry shops?
Total
12 or 9 or 44 or
24%
6%
Very
bad
4 or
18%
88%
From the 88% of the customer say that 6% of the technique of washing cloth of the
laundry shops is very good, and 8% of the technique of washing the cloth of the laundry
shops is good. In addition, 32% of the technique of washing the cloth of the laundry
shops is average, 24% of the technique of washing the cloth of the laundry shops is bad,
and 18% of the technique of washing the cloth of the laundry shops is very bad. From
9
44 or
GROUP 7

this, we can conclude that the technique of washing cloth of the laundry shops is average.
Therefore, this indicates to us, we can start a very good technique of washing cloth of the
laundry shop.
Table 2.6 data analysis about service and method of holding of clients
Question
Very
Good Average Bad
good
Very
Total
bad
3. Do you like the service and 7 or 14%
20 or 10
method of holding of clients of
40%
20%
or 6 or 1or 2%
44 or
12%
88%
the laundry service?

From the 88% of the customer say that 14% of the service and method of holding of
clients of the laundry is very good, and 40% of the service and method of holding of
clients of the laundry is good. In addition, 20% of the service and method of holding of
clients of the laundry is average, 12% of the service and method of holding of clients of
the laundry is bad, and 2% of the service and method of holding of clients of the laundry
is very bad. From this, we can conclude that the service and method of holding of clients
of the laundry is good. Therefore, this indicates to us, we can start a very good service
and method of holding of clients.
Table 2.7 data analysis about keep an appointment of the laundry service shops
Question
Very
Good Average Bad Very
good
4. What do you think about the 32
Total
bad
or 4 or
4 or
4 or 0
8%
8%
8%
keep an appointment of the 64%

laundry service shops?
0%
or 44 or
88%
From the 88% of the customer say that 64% of the keep an appointment of the laundry
service shops is very good, and 8% of the keep an appointment of the laundry service
shops is good. In addition, 8% of the keep an appointment of the laundry service shops is
average, 8% of the keep an appointment of the laundry service shops is bad, and 0% of
the keep an appointment of the laundry service shops is very bad. From this, we can
10
GROUP 7

conclude that keeping an appointment of the laundry service good. Therefore, this
indicates to us, we can start a very good the keep an appointment of the laundry service
the laundry shop.
Table 2.8 data analysis about like and dislike of the washing laundry machine
Question
Very good
Good Average
Bad Very bad
Total
5. Do you like the washing 14 or 28%
10 or 16 or
0 or 0 or
44 or
laundry machine?
20%
88%
32%
0%
0%
From the 88% of the customer say that 28% of the customer likes the washing laundry
machine shops is very good, and 20% of the customer likes the washing laundry machine
shops is good. In addition, 32% of the customer likes the washing laundry machine shops
is average. From this, we can conclude that the customer likes the washing laundry
machine shops is average. Therefore, this indicates to us, we can start a very good
laundry shop. From these data, we can conclude that there are peoples that use frequently
use the laundry service to wash their cloth. Therefore, we can make our own business by
using automatic laundry machine. In addition, the customer likes the front loading
laundry washing machine.
Table 2.9 Sample questionnaire about market size and value
Questions
Answers
About the market size:

1. How often do you use this laundry service?
Daily
Weekly
Monthly
(Circle your answer)

11
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2. When you use laundry service at most?
Weekends
Holidays
Festivals
Appointments
Other days
3. How much number of clothe do you wash at each

time?
4. When are the times you use the service the least?
Write amount in kg or
Number of cloths
Write answer
Weekends
Holidays
Festivals
Appointments
Other days
About the market value:

5. How much do you pay for a single clothe to wash?
Write
the
amount
in
currency
a) Trousers
b) Shirts
c) Sweaters
d) Jackets
e) Womens Dresses
f) Bed Sheets
g) Towels
h) Pajamas
i) Others (average)

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6. What is the price difference for different types of Write differences
clothes?
7. Does the price change at different times of the year?
Yes
No
Some times
11. When is the price highest?
Write answer
Weekends
Holidays
Festivals
Appointments
Other days
12. When is the price lowest?
Write answer
Weekends
Holidays
Festivals
Appointments
Other days
(Circle answer)
About the customer:

13. Would you say that you have a low, medium, or
Low
high performance of cloths in your household?
Medium
high
14. In which age group do you belong and sex?
Tick answer
1-20
21-40

13
GROUP 7

41-60
Male/Female
About sales outlets:

15. Where do you usually get laundry service?
Tick answer
Market stall
Local shop
Kiosk
Supermarket
Street hawker
Directly
from producer
Other
Table 2.10 Analysis table and respondents answer
About the market size

Frequency of usage of
Respondents
Daily
Weekly
40
80
Monthly
of Weekends
13
26
at Holidays
25
50
Festivals
Appointments
Times of you use the Weekends
39
78
service the least
Holidays
Appointments
Festivals
laundry service
Time
laundry
of
use
service
most

14
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About the market
pay for a single clothe Type of clothe
Average
Charge/unit in birr
to wash
weight per
KG
Trousers
0.35
1.75
Shirts
0.18
0.40
Sweaters
0.50
0.75
Jackets
0.75
1.50
Womens Dresses
0.35
1.00
Bed Sheets
0.35
1.00
Towels
1.00
0.50
Pajamas
0.45
0.65
Others (average
0.35
Answer
Frequency
Replies
different times of the Yes
14
year
No
35
70
Some times
Replies
Weekends
Holidays
44
88
Festivals
Appointments
Other days
The price is becoming Weekends
lowest
Holidays
Festivals
Appointments
Other days
44
88
The price change at
Price become highest
About the customer

performance of cloths
Replies

15
GROUP 7

in your household
Low
Medium
36
72
high
In which age group 1-20
do you belong and 21-40
37
74
sex?
41-60
10
Male
15
30
Female
29
58
About sales outlets

15. Where do you
Replies
usually get laundry Market shop
44
88
service?
Local shop
Kiosk
Supermarket
Street hawker
Directly
from producer
Other
The help of the following equation fills the above table. We take the value of N=50
because we have been prepared 50 numbers of copies and distribute it to the nearby
community of Debre Markos city/town peoples and from those questionnaires, only 44
copies are returned back to our hand.
Percentage =
where:
R Replies
N Total numbers of questionnaires or Peoples asked

16
GROUP 7

Table 2.11Potential market for laundry service in Debre Markos town
Type
of Number in each Amount of cloth washed Amount of cloth washed
customer
category*
per month (kg**)
each time (kg**)
Low income
68,430
0.4
0.1
Medium
35,385
1.2
0.15
185
2.25
0.45
income
High income
The cost of laundry service in the market was 2.25birr per kg when washed in 10kg
amounts into customers' own cloth (washed by the majority of those who said they were
in low income families). 3.1birr per kg when washed in 15kg jeans cloths (washed
mostly by medium income families) and 4.8birr per kg when washed in 45kg woolen
cloth (washed mostly by high income families). This data can be analyzed, as shown in
Tables 2.12 (a) and 2.12 (b), to calculate the total size and value of the laundry service in
this town. The size and value of the market, calculated in Table 13, indicate that low
income and medium income families form the largest part of the laundry service in this
town. The demand for woolen cloth of laundry was limited to high-income groups, which
formed only 0.2% of the market size and 3.8% of its value. A new business would
therefore be likely to focus on low and medium income families as its potential
consumers. This has implications for not only the type of packaging laundry service that
is used but also the types of advertising, methods of promotion and agreements with
shops that should be considered.
Table2.12 (a) Calculation of the size of the market for laundry service
Type
of Number in each Amount of cloth washed Total demand (kg per
customer
category
per month (kg)
month)
Low income
68,430
0.4
27,372
Medium
35,385
1.2
42,462
185
2.25
416.25
income
High income
TOTAL
17
70,250.25kg
GROUP 7

Table 2.12 (b) Calculation of the value of the laundry service markets
Type
customer
of Amount
of
cloth Cost per kg of Number
washed each time cloth

(kg)
washed of kg
Value of market
(birr per month)
(birr)
Low income 0.1
2.25
27,372
6,159
Medium
0.15
3.1
42,462
19,745
0.45
4.8
416.25
900
income
High
income
TOTAL
26,804
2.6 Market share and competition

It is important from the outset, to estimate what is the proportion of the total market that
a new business could reasonably expect to have, it is known as the market share. It is
often difficult to estimate a realistic market share and the figure depends on a large
number of variables, but the table below can used as an initial guide. The estimated share
of the market for a new laundry service can be, calculated as follows:

18
GROUP 7

Total size of the market = 70,251 kg per month
Estimated share = 25-30%, with 30% selected.
This represents sales of 21,075.3kg of cloth per month with a potential value of
71,656.02 birr per month. When converted to daily laundry service rate, assuming 26
working days per month, the maximum production is therefore 810.59 kg per day.
The estimated share analysis is as follows
Taking 15% of total size of the market =
To get the potential value take the average of Cost per kg of cloth washed (birr)
Calculate average value =
Potential value =
To get daily laundry service rate ,by assuming there are 26working days/month
Then daily laundry service rate becomes
2.7 Advertising and Promotion

This refers to raising customer awareness of the services and creating services loyalty.
1. Advertising material and promotional material
It will be distributed upon the opening of the shop so that the market will be able to
be informed that it is already available. The advertising material and promotional
material will be personally done by the owner of the shop which has a budgeted
amount of birr 3,000.00. Advertising material will include the following information:

19
GROUP 7

Services offered , Price list, Company address and contact number, Business hours,
and Business slogan.
2. Tarpaulin will be placed in front of the shop. It will include the following
information: Business name, address and contact number, Business logo, Business
hours, and Business slogan.
3. Membership offering that will give customer discounts - to maintain the loyalty of
the customer we will offer membership.
4. Pick Up and drop service to increase more of the willingness of the customer to
avail of the laundry service, we will offer pick up and drop service as it shows in the
survey that 49% would like to have this kind of extra service for the convenience of
the customer.
2.8. Demand Analysis

The demand for the services of the project comes from the population of the city. The
population residing in the town including the town is above 104,000 in number. The
survey result obtained from a random sample of 50 persons indicates that about 80% are
willing to be users of the service. Out of the total number who sampled to be users, about
44 persons i.e. 88% of the total population are ready to expend some money for the
service. The total demand can, therefore be expressed as by the total weight of the clothes
in kilograms that these populations will deliver to the laundry/washing service facility for
washing during any given time such as day, month, or year. A number of factors
including the following affect this total demand of the laundry/washing service facility.
The number of times that the community washes his/her clothes, the weight of the
clothes that the population washes at a time, the quality of the service and the efficiency
of the service, and the price charged.
2.9. Supply and Competitor Analysis

Currently, no enough service provider, which is going to compete with the proposed
business. However, there is still the option of using the current manual facility. There are
various reasons for this: Price may be unaffordable and Machinery Breakdowns. In
addition, other business people may start the same kind of business in the surrounding of
the town and direct competition may come. The business has therefore to be efficient and
20
GROUP 7

attractive in all dimensions i.e. time, cost, quality, and price to win the competition that
may come later.
2.10. Sales Projection

The total expected sales of the project is determined by considering the current expected
demand, a reasonable growth of demand every year and the capacity of the machines to
be installed and the price per kilogram for the service. Considering the increase in the
city population every year, which is about 23%, and the additional customers that will be
attracted to the service form existing non-users, a reasonable sales growth of 18% is
assumed.
Table 2.15 Sale projections for first year
A
Expected demand in a year
Kg
294,179.00
Projected capacity of 9 washers
Kg
432,000.00
Price per kilogram
Birr
2.00
Total sales for first year (A * C)
Birr
588,358.68

21
GROUP 7

CHAPTER THREE
Technical Feasibility
The project needs some supplies in order to deliver its much-needed services to the
community. The supply items that the project requires include detergents, electricity,
water, and telephone.
3.1.
Raw materials
a) Equipment required
We need different equipments that are used for our starting of new business venture.
This is used to decide the service of laundry machine required and the size (or 'scale' or
'throughput') that is needed. In doing this, decisions need to be taken on the relative
benefits of employing a larger number of workers or buying machinery to do a particular
job. The decisions on equipment requirements are influenced by the cost and availability
of machinery, the availability of people who are skilled in maintenance and repair of the
laundry machine. The availability and cost of spare parts and the possibilities of local
equipment fabrication
b) Packaging
These include the technical requirements of the service for protection against light,
crushing, air, moisture etc., the promotional and marketing requirements and the relative
cost and availability of different types of packaging. Selection of packaging materials
frequently causes the largest problems for small laundry services and is often the main
cause of delay in getting a business established.
c) Staffing levels
In laundry service processing, each day's work will initially involve preparation of the
raw materials and then move through processing to packaging. It is possible to have all

22
GROUP 7

workers doing the same type of activity throughout the day, but it is often more efficient
to allocate different jobs to each worker as the day progresses.
The materials are:
i. Detergents
In the case of our city laundry/washing machine service project, detergents of different
size shall be held in stock for sale to the community as per their requirements. The
detergents must however be sold to the community at cost. Industry reports show that on
average one wash cycle for 20 kilograms of clothes consumes five medium size
(200grams) powder soaps, which costs around Ethiopian Birr 2.50.
The total powder soap requirement given the current capacity will therefore be:
Current capacity = Number of packets * Number of day/month *cost of single packet *
Number of machines in the service shop
C = NP * ND * CSP * NM
C=40 packets x 30 days x 7.5 per packet x 9 machines
= 81,000.00 worth of detergents for nine (9) washing machines
ii. Electricity Supply

The machines, which are supplied, which are selected as the only heavy-duty commercial
or industrial coin machines in the country have a consumption rate of 12.5 KWH. The
machines require a electrical system which is available and supplied by the Ethiopian
Electric Power Corporation. The corporation charges Birr 9,000.00 for installing
kilowatt-hour meters. The total energy consumed by the washing and dryer machines will
be 12.5 times the total number of hours of operation.
iii. Water Supply

The washing machines have to be connected to a continuous pipe water system. The
machines will automatically regulate the flow and disposal of the water. The water
23
GROUP 7

consumption rate of the selected machines is 200 liters at rated capacity for one standard
load of 20 kilograms of clothes.
iv. Telephone Facility

The telephone lines are to be obtained from the Ethiopian Telecommunication
Corporation. The Corporation charges a one-time subscription fee of Birr 300.00 per line.
The total one time subscription fee for two lines will therefore be Birr 600.00. The
monthly expense for telephone is estimated to be 150 per month, which makes the annual
expense as Birr 1,800.00.
3.2.
Suitability of service technology
3.2.1. Technology Selection

The project requires a line of washing machines and dryers and other auxiliary
equipment. We have conducted a field survey of available washing and drier machines
and have found those imported by OMEDAD PIC appropriate for the project. The
justifications for the selection of these machines are:
1. The machines to be installed must operate for long hours without breakdown &
failure. Coin operated machines manufactured for commercial/industrial use are
suitable for this purpose than machines manufactured for home use. The following
companies were contacted to provide their offers for heavy-duty washing machines.
The manufacturers are Addis Fana Sc, BT Red PLC, Glorious PLC, Ethiopian
Electronics Plc, and OMEDAD PLC.
3.2.2. Descriptions of the Machines

Table 3.1 the machines to be installed are the following:
Supplier
OMEDAD PIC
Brand
Grandimpianti (Italy)
Nature
Heavy duty coin operated machines
Capacity
Washers

24
20 Kilograms
GROUP 7

Dryers
15 Kilograms
Electricity Consumption
12.5 KWH
Water Consumption
200 Liters per load (cycle)
Water Inlet
Pressure
Warranty
1 Year
Coins Supplied
15 per machine
Installation
Free of charge
Price
for
one Washers
machine
Birr 94,000.00
Dryers
Birr 46,000.00
3.2.3. Auxiliary Equipment

The project also requires auxiliary tools and equipment. The following is the list of
auxiliary equipment required in the project.
Table 3.2 List of Auxiliary Equipment
Description
Number
Cost/unit
Total
Fire extinguishers
650.00
1,300.00
Scale
35.00
35.00
Fan
250.00
750.00
Trolley
100.00
300.00
3.2.4. Office Furniture and Equipment

Furniture and equipment are also required in the laundry/washing service room for
proper delivery of the service. The following items are initially required.
Table 3.3 List of Office Furniture & Equipment
Description
Number
Cost/unit
Total
Table (office)
500.00
1500.00
Chair (office)
300.00
1200.00
Folding table
700.00
1400.00

25
GROUP 7

Guest chairs
10
100.00
1000.00
Computer with printer
5,000.00
5000.00
600.00
600.00
Miscellaneous
3.3.
Building and Civil Works
The laundry/washing machines must be permanently installed in a flat-cemented area.

The building must be ventilated & room temperature must be kept between 100c and
400c. Building constructed with hollow cement block (HCB) is ideal for the project. The
electric power & water supply system shall also be performed simultaneously as per
standards. The machinery will be arranged in such a way that there is enough space for
equipment, for working, for passage & equipment servicing, and for adequate ventilation.
The average space requirement of the building used for such service is about 250square
2
meters (M ). The total amount required for building & other civil works of the project
will be about Birr 140,521.00.
3.4.
Capacity and Operation Process
3.4.1. Capacity
The project aims at giving efficient laundry/washing machine service to the community
of Debre Markos city. It must therefore have the required capacity to satisfy the huge
potential demand. The proposed capacity of the project is as shown below
Table 3.4 Project Capacity
Working hours per shift
8 hours
Number of shifts in a day
1 shift
Working day per annum
290days
Weight of clothed and dried per load
20 Kg
Hours record per load
45 minutes
Cleaning time between process
15 minutes
Total hour used per load
1 hours
Number of loads per shift in one machine
8 loads
Maximum weight of cloths washed and dried/ day
160Kg

26
GROUP 7

Total demand expected/day in Kgs
1400
Number of washing machines required to meet demand
9 units
Total weight of cloths washed and dried in a year on 9 160*9*290 = 417,600Kgs.

machines
3.4.2. Operation/Washing Process

The washing service involves a sequence of flow of separate activities. The following
chart shows the whole processes involved in laundry/washing machine service.
Receiving
Payment
Tagging and
separation
Weighting
Sorting and
delivery
Washing
Drying
Figure 3.1 Process laundry service layouts

a) Receive- The laundry shop receives the clothes of the community
b) Weighing- The weights of the clothes of the customers are measured to
determine what the customer should pay.
c) Payment- The customer pays the amount determined and presents the receipt to
the attendants.
d) Tagging- the clothes of each customer are tagged with a specific number to
facilitate identification & delivery after washed and dried. The clothes will also
be separated as per color & fabric texture to avoid damages.
27
GROUP 7

e) Washing- The clothes will then be washed using powder soap
f) Drying- The washed clothes will be manually transferred to a dryer machine.
g) Sorting & Delivery- The clothes are sorted as per the tag number previously
assigned and then delivered to the customer.

28
GROUP 7

CHAPTER FOUR
Financial feasibility
4.1.
Estimate the total capital requirement
A) Start-up costs
The start-up capital is the amount of money that is needed to buy the facilities and
equipment, to register and license the business and get the necessary cleanliness
certificates. Working Capital includes the costs of raw materials, packaging, staff
training, service promotion etc. that have to be made before the business begins to
generate income from sales of the laundry service processing.
Table 4.1 startup cost
Description
Amount in birr
Building and civil works
140,521
Machinery equipment
998,000
Auxiliary equipment
2385.00
Office furniture
10,700
Computer and accessories
5000.00
Feasibility study cost
11,000.00
Architects & survey fee
5,000.00
Other project planning costs
1,500.00
Salaries
1,850.00
Water charges
1,260.00
Electricity
20,700.00
Telephone expense
150.00
Detergents cost
27,000.00
Office supplies
1,000.00
Prepaid insurance
2,260.00

29
GROUP 7

Marketing cost
1,200.00
Payment for salaries
1,850.00
Payment for utilities
22,110.00
Total
1,253,486.000
4.2.
Analysis of Cost Estimates
4.2.1. Fixed Investment Cost

The fixed investment of the project includes the following items
Table 4.1 Fixed Investment Cost Schedule
Description
Amount in birr
Building and civil works
140,521
Machinery equipment
998,000
Auxiliary equipment
2385.00
Office furniture
10,700
Computer and accessories
5000.00
Total
1,154,456.00
4.2.2. Pre-Operation Expenditures

This group includes all items that are incurred prior to commercial operation of the
project. The items included in this cost category are the following
Table 4.2 Table Pre-Operation Expenditure Schedule
Description
Amount in birr
Feasibility study cost
11,000.00
Architects & survey fee
5,000.00
Other project planning costs
1,500.00
Total
17,500.00

30
GROUP 7

4.3.
Fixed Assets
The fixed assets of the project will be the sum of fixed investment costs and preoperation expenditures described above.
Table 4.3 Table Fixed Asset Schedule
Description
Amount in birr
Fixed investment cost
1,154,456.00
Pre operation expenditures
17,500.00
Total
1,171,956.00
4.4.
Accounts Receivable and Accounts Payable
The account payable amount when the project operates at full capacity will therefore be
as follows
Table 4.4 Accounts Payable Schedule
Description
Amount in birr
Salaries
1,850.00
Water charges
1,260.00
Electricity
20,700.00
Telephone expense
150.00
Total
23,960.00
4.5.
Net Working Capital
The working capital requirement of the project is therefore for those items which must be
paid during/or at the end of the first month of operation.
Table 4.5 Net Working Capital Schedule
Description
Amount in birr
Detergents cost
27,000.00
Office supplies
1,000.00
Prepaid insurance
2,260.00
Marketing cost
1,200.00

31
GROUP 7

Cash in hand (5% of total of other working capital)
2,896.00
Payment for salaries
1,850.00
Payment for utilities
22,110.00
Net working capital required
57,920.00
4.6.
Total Investment Costs
The total investment cost of this project will be the sum of fixed assets and net working
capital of the project.
Table 4.6 Total Investment Schedule
Description
Amount in birr
Fixed investment cost
1,154,456.00
Pre-operation expenditure
17,500.00
Fixed assets
1,171,956.00
Net working capital
57,920.00
Total project cost
2,401,832.00
4.7.
Production Costs
The production costs of the current project are as follows

1) Direct Operating Costs
Direct operating costs include material (utilities) and labor costs required for the
operation process of the business.
Table 4.7 Direct Operating Cost Schedule
Description
Amount in birr
Electricity costs
248,400.00
water costs
15,120.00
Telephone costs
1,800.00
Labor cost
22,200.00
Total operating cost
287,520.00
2) Administrative Overheads
32
GROUP 7

The most important cost items included in administrative overheads are insurance
charges, repair and maintenance costs, and office supplies
Table 4.8 Administrative Overheads Cost Schedule
Description
Amount in birr
Insurance charge
2,260.00
Repair and maintenance
11,284.00
Office supplies
1,000.00
Total
14,544.00
3) Financial Costs
The project is assumed to be financed with 100% equity contribution. There are many
reasons for this assumption.
a) The project aims at giving a basic service, which most cities must avail to their
population. The administration of Debre Markos city have a positive attitude to the
availability of this service and are willing to see the possibilities of financing the
project
b) The Credit Union, Amara regional state that provides many services to the
community at discounted prices may be interested to venture from its own funds.
c) Private business organizations or individuals may be interested in the business and
may require some amount of loan from banks. However, since the site is being
selected to be within the places of the Debre Markos town/city, it will be difficult for
entities far from the city to operate a business within the city.
4) Depreciation Costs
The total project cost has to be depreciated or pay back as per applicable laws.
Table 4.9 Depreciation Cost Schedule
Description
Total
Annual depreciation
Building & civil works
140,521.00
5,806.25
Machinery and accessories
998,000.00
99,800.00
Auxiliary equipment
2,385.00
567.00

33
GROUP 7

Office furniture
10,700.00
1,280.00
Computers
5,000.00
1,250.00
Pre-operation expenditure
17,500.00
3,500.00
4.8.
Marketing Costs
Income statement
For one month

Sales
588,358.68
Operating expenses:
Total operating expense
57,920.00
Net income
530,438.68
Statement of owners equity

For one month
Investment during the month
71,656.00
Net income for the month
530,438.68
Less withdrawals
3000
Increase in owner equity
527,438.68
Our Capital for one month
599,094.68
Balance sheet
For one month
Assets
Cash
2896.00
Supplies
220,000.34

34
GROUP 7

Land
400,158.34
Total asset
623,054.68
Liabilities
Accounts payable
23,960
Owners equity
Our capital
Total liabilities and capital
4.9.
599,094.68
623,054.68
Income and profit
From the market survey, the estimated market size and share enables the expected sales
to be calculated. The gross profit (or gross loss) is the difference between the expected
income and the total operating costs over the first year, including any loan repayments.
Income is therefore calculated as follows:
Income = Selling price per unit x number of units sold
The income clearly depends on both the price of the laundry service and the amount of
cloth that is washed. When selecting a price for the laundry service, two approaches can
be taken: First, the price can be based on laundry service costs and it is set to ensure that
income exceeds the total costs. This however, does not take account of competitors'
prices and to be successful, the new laundry service should be priced at or below the
price of other similar services.
The second approach is therefore to set the price to compare favorably with existing
laundry services and calculate the likely profit at the planned scale of wash service. In
many countries, this profit is normally 10-30% of the value of each pack. In addition,
there are distribution costs and perhaps special promotion costs that should be included.
The price that is charged for the laundry service should therefore allow the service maker
to make an adequate profit. In the laundry service, the income to the service maker i.e.
our group is the sale price less 10% for retailer's profits is
35
GROUP 7

= (3.4 - 10% 0f 3.4 = 3.06birr/kg).
When the service costs and income are compared using the second approach, the
operation of the business should be above the breakeven Point. Above this point is the
minimum level of service that can enable the enterprise to make a profit (Figure below).
Breakeven point can be calculated as follows:

calculate the contribution for variable costs per pack
subtract the value obtained from the sale price to obtain the 'unit contribution'
calculate the total fixed costs per year
divide the fixed costs by the unit contribution to obtain the annual production rate
that will allow the business to break even
In the laundry service, the contribution for variable or depreciation costs/kg
=112,203.25Birr/126,444kgs per year = 0.887birr.
The sale price per kg = 3.06/kg/3.4/kg = 0.9birr/cloth
Unit contribution = sale price - (variable + labor contributions) = 0.9-0.887 = 0.013
Total fixed costs per year = 1,171,956.00birr
Breakeven = fixed costs/unit contribution =1,171,956.00birr/0.013 = 90,150,462kgs/year

36
GROUP 7

DEBRE MARKOS TOWN
FOR
CHAPTER FIVE
Organizational/Managerial feasibility
5.1.
Business structure
The final organizational structure of the proposed project depends on the management style and
control techniques of the investor in the business. Assuming that the Debre Markos town
administration is interested to run the project incorporating it under its organizational setup, a
structure for this particular division is recommended as follows.
Laundry service
head
Secretary/
Supervisor
Casher
Cleaner/att
endant
machine
1_3
Cleaner/att
endant
machine
3_6
Cleaner/att
endant
machine
6_9
Figure 5.1 Proposed Organizational
37

Table 5.1 job opportunity

Position
Sex
Nu
Qualification
Age
Experience
mb
Monthly Annual
salary
salary
er
Laundry
Male
service
Advanced
college 25 up 2 year and 850.00
diploma
to 35
head
above
10,200
in
washing
machine
servicing
Shift
Male
supervis
Advanced
diploma
management
in Above 1 year in 750.00

25
9000
supervising
or
Secretar
Female
y/casher
Advanced
diploma
information
in Above 2 and above 750.00
9000
technology 23
or accounting
Cleaner/
Female
attendant
Who take ECLC and Above If they are 400.00

have 1.5and above
20
4,800
experienced
they
become
preferable
Total
5.2.
2,750.00 33,000
Business founder
The Coin- operated laundry business is usually run, as a self-service business in most countries
abroad and no work force might be required. However, in our case, the project is planned to be
staffed with key essential personnel to ensure proper handling of the machines, protect theft of
clothes and misuse of facility, and to provide efficient continued service.

38
GROUP 7

CHAPTER SIX
STUDY CONCLUSION
6.1 Conclusion
Debre Markos city has not enough laundry service for the community. The scarcity of such
facility has affected the community in particular since they have to allocate part of their active
time to wash their clothes in the current manual facility which is time taking, tiresome, and
inefficient. The majority of the communities of the town/city have asserted the importance of the
service of laundry/washing machine facility by stating that the issue is now becoming a health
concern in addition to the usual problems outlined previously.
This feasibility study report has investigated the possibilities of service of a laundry/washing
machine service facility in the city. The study has assessed the marketing aspects, the
technological aspects, the resource requirements, the organization and management aspects of
the project, and the financial commitments of the project. The project has been evaluated in
terms of the return that it generates to the investor, the present value of the future cash flows of
the project expected throughout the project life and the number of years that the project takes to
pay back all the initial investment made on the project. The project is found acceptable by all of
the above evaluation criteria. The impact of changes on the project has also been assessed and
the project is still feasible using the above appraisal methods.
6.2 Recommendations
We recommended to the town management in connection with this project is:
1) The city management should consider the service as basic and must concentrate all the
required assistance for the implementation of the project
2) The city is specifically recommended to invest in the project since the revenue generated
from the business helps the city to cover part of its expenses from its own sources.
3) After implementation of the project, proper care and maintenance shall be given to the
machines to ensure the continued availability of the service.
39
GROUP 7

REFERENCES
[1] F. Hillier & G. Lieberman, Introduction to Operations Research, McGraw Hill Co., 7th
ed., New York, 2001, Project Management With PERT/CPM, PP 469-485
[2] P. Chandra, Projects: Planning, Analysis, Selection, Financing, Implementation, &
Review, Tata McGraw-Hill Publishing, 6th ed., New Delhi, 2006
[3] P. Kotler & G. Armstrong, Principles of Marketing, Prentice Hall of India, 11thed., New
Delhi, 2006
[4] R. Meigs, J. Williams, S. Haka, & M. Bettner, Financial Accounting, Irwin McGraw
Hill, 10th ed., New York, 2001
[5] W. Behrens & P. M. Hawranek, Manual for the Preparation of Industrial Feasibility
Studies, United Nations Industrial Development Organization, Vienna 1991
[6] Coin Laundry Association of America, Coin Operated Laundry Industry Overview,
www.claa.org
[7] Iowa Small Business development Center,
Operating a Coin Laundry, USA,
www.iabusnet.org
[8] Small Business Development Resource, Opportunity Study for Laundries, Pakistan,
www.smeda.org

40
GROUP 7

Appendices
You do not need to write your name.
Thank you,
1) Personal Information
Gender
Male
Female
Age
if you are student Class Year
2) Are you an on campus student?

a) Yes
b) No
3) How do you get your clothes washed?
a) I manually wash in campus facility
b) I take home for washing
c) I Hire janitors to wash my clothes
d) I use other means (Please Specify)
4) How often do you think students wash their clothes?
a) Every week
b) Every 2 weeks
c) Every 3 weeks
d) Every month
e) Other (Specify)
41
GROUP 7

5) How do you evaluate the current facility for washing clothes?
a) Very Poor
b) Poor
c) Fair
d) Good
e) Very Good
6) Do you think washing of your clothes takes some time?
a) Yes
b) No
7) How much of you total time do you allocate for the following activities (in %)
a) Studying
b) Leisure
c) Sleep
d) Washing of clothes
e) Others
8) How much is your total expenditure for detergents/soaps every time you wash
Clothes? _______________________________________________________________
9) Do you hire the janitors in your residence blocks to wash your clothes?
a) Yes
b) No
42
GROUP 7

10) If the answer to the above question is yes, how much do you pay for the
service? _________________________________________________________
11) Do you wash your clothes in campus?
a) Yes
b) No
12) If your answer to question 11 is no, where do you wash your clothes?
a) At home
b) Laundry
c) Other (please specify)
13) How many units of the following clothes do you wash every time you wash clothes? Please
write the quantity of each item in the third column of the following table
Description
Average
Weight
per
unit Number of units
(KG)
Trousers
0.35
Shirts
0.35
Jackets/sweater
0.18
Womens
2.25
Dresses
0.35
Bed Sheets
0.35

43
You wash at a
time
GROUP 7

Towels
1.00
Pajamas
0.45
Others (average)
0.35
14) Will you be a user, if a laundry machine (an automatic washer and drier) is installed in your
campus?
________________________________________________________
15) How much can you afford to pay at a time for the service?
________________________________________________________
16) What benefits do you see with the introduction of an automatic laundry system in your
campus?
_______________________________________________________________
17) What problems do you see with this system?
_______________________________________________________________
18) If you have any other comment, please indicate below
______________________________________________________

44
GROUP 7

Laundrywashing Machine Service in The Debre Markos Town PDF

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Laundrywashing Machine Service in The Debre Markos Town PDF

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FEASIBLITY STUDY OF LAUNDRY SERVICE

DEBRE MARKOS TOWN

DEBRE MARKOS UNIVERSITY

FEASIBILTY STUDY ON LAUNDRY/WASHING MACHINE SERVICE IN

SUBMITTED TO LECTURE AGEGNEHU S. (MSc)

FEASIBLITY STUDY OF LAUNDRY SERVICE

LIST OF TABLE ...........................................................................................................................IV

Business Name ................................................................................................................. 2

General business model ................................................................................................... 2

Service Description .......................................................................................................... 2

Quality Services ............................................................................................................... 2

Company Locations and Facilities ................................................................................... 3

Time horizon .................................................................................................................... 3

CHAPTER TWO ............................................................................................................................. 4

FEASIBLITY STUDY OF LAUNDRY SERVICE

Raw materials ................................................................................................................ 22

Staffing levels ................................................................................................................ 22

Suitability of service technology ................................................................................... 24

Descriptions of the Machines................................................................................. 24

Auxiliary Equipment .............................................................................................. 25

Office Furniture and Equipment ............................................................................ 25

Building and Civil Works .............................................................................................. 26

Capacity and Operation Process .................................................................................... 26

Operation/Washing Process ................................................................................... 27

Estimate the total capital requirement............................................................................ 29

Analysis of Cost Estimates ............................................................................................ 30

Fixed Investment Cost ........................................................................................... 30

Pre-Operation Expenditures ................................................................................... 30

Fixed Assets ................................................................................................................... 31

Accounts Receivable and Accounts Payable ................................................................. 31

Net Working Capital ...................................................................................................... 31

Total Investment Costs .................................................................................................. 32

Production Costs ............................................................................................................ 32

Marketing Costs ............................................................................................................. 34

Income and profit ........................................................................................................... 35

CHAPTER FIVE ........................................................................................................................... 37

Business structure .............................................................................................................. 37

ELECTRICAL AND COMPUTER ENGINEERING

FEASIBLITY STUDY OF LAUNDRY SERVICE

ELECTRICAL AND COMPUTER ENGINEERING

FEASIBLITY STUDY OF LAUNDRY SERVICE

ELECTRICAL AND COMPUTER ENGINEERING

FEASIBLITY STUDY OF LAUNDRY SERVICE

above 104,000 including Debre Markos University

town/city those gives laundry service for the

automatic cost is 1,253,486.000birr.The detergent cost is, based

washing machine service?

on the cloth clients need and there number of cloth

contegency) birr. The operating costs of the laundry

the input, Detergents, The place we want to build the

ELECTRICAL AND COMPUTER ENGINEERING

FEASIBLITY STUDY OF LAUNDRY SERVICE

General business model

FEASIBLITY STUDY OF LAUNDRY SERVICE

Company Locations and Facilities

Table.1.2 time horizon

Selection of the location of the business X X

Feasibility document submission

ELECTRICAL AND COMPUTER ENGINEERING

FEASIBLITY STUDY OF LAUNDRY SERVICE

2.1. Area Covered

2.2. Market Need