January 2022
Consultants: M-Commerce Financial Services
Tebalomasisi101@gmail.com
A. EXECUTIVE SUMMARY
Phomolo Laundry Shop (hereafter referred to as “the Company” or “The Laundry
Shop” is a trading business that provides laundry services, washing, and ironing,
and includes all washing services such as carpets and blankets.
i) Mission Statement:
The Laundry Shop aims to use young and vibrant South African youth to deliver
quality laundry services to different families and businesses in QwaQwa. Whilst
each business focus on their main service, washing is our main service. We aim
to become a standard for an ideal laundry services company not only in QwaQwa
but also throughout South Africa.
ii) Company Goals and Objectives:
The Company aims to be one of the top laundry companies providing excellent
cleaning and laundry services to students, families, and different sectors of
business in South Africa and using mostly youth from a previously disadvantaged
background. The company aims to contribute to government policies on
economic participation and also ensure quality services are provided to its clients.
iii) Business Philosophy:
The company aims to provide laundry services to students, families, and
commercial establishments that require efficient yet cost-effective laundry
services. The cleaning industry has always been important in the business space.
Cleanliness is at the core of every family and business practice.
The country is now faced with the pandemic of Covid-19. This has made the
cleaning and laundry service to be more needed by families and across all sectors
of the economy. It is due to health protocol that must be observed to curve the
spread of the virus.
The core strength of Laundry Shop is that it brings into the industry young and
vibrant young people who are still excited to bring quality services to their clients.
The company is always driven by quality services as it is small and developing
within the industry and aims to make a lasting impression on the services they
provide to different clients.
1
The company is established by Mr. Motaung who grew up in QwaQwa. Mr.
Motaung established that most students attending at UFS QwaQwa campus need
assistance with laundry services as most of them are too focused on their studies
and have no time to do laundry. He, therefore, developed an idea to provide ideal
and cost-effective laundry services that will be affordable for students and nearby
households.
The business will employ four (4) people (excluding the directors) to provide
laundry services. The business aims to serve as a solution to address the challenge
of unemployment in QwaQwa and Free State as the province. The targeted labor
pool will be unemployed youth who are unskilled, as the job will not require any
technical competencies. Training and induction will be provided.
>>>>> end of Executive Summery<<<<<<<<
B. PRODUCT AND SERVICES
The company offers a wide range of services that revolves around laundry and
cleaning services. We intend to give our clients every reason to always hire our
services which is why we have customized services according to our clients’
needs. These services include but are not limited to:
Washing
Drying
Ironing
Blankets Washing
Curtains and Blankets Washing
The company will ensure that the prices are affordable for their clients. The prices
will be determined by laundry weight, the normal scale for weighing laundry will
apply and the price per kg will be determined considering the company cost for
material, labor and electricity overheads.
The company aims to benefit more from the contractual relationship with its
clients. The aim is to secure at least 12 months contract with each client. The
company is willing to negotiate the prices with potential contractors based on the
services needed. The discount based on the negotiations will range between 10%
to 15%.
2
Quality services will be at the core of the company. We will make sure that the
best laundry products are used and we will acquire modern cleaning technology
to ensure that we deliver the best services.
Our customers will also benefit from our discount policies and the
complementary services that we are willing to give. The company aims to be
highly profitable in the laundry industry but we, however, pride ourselves in
giving our clients value for their money.
>>>>> end of Products and Services<<<<<<<<
C. MARKETING PLAN
i) Services
We will always ensure that our clients get the best services by using motivated
employees and high-tech equipment. We have researched different cleaning
products and how they help in elements such as dust, creasy spots, and odour.
The aim is to ensure that where our services are used we will leave a lasting
impression so that we are called again. We will also welcome the client’s
feedback in the form of surveys, suggestions, and complaint boxes, this will help
us to identify our weaknesses and areas where we need to improve.
ii) Customers
The users of our services will be households, students, Guests Houses, and
government institutions.
Below is the market segmentation and analysis of the users of our services:
3
iii) Competition
The company is entering the business space that is dominated by companies that
have been existing for a while. Small and emerging companies fight for their
market share in the laundry industry, and only a few can survive tight competition
from big companies that have more resources and have a long working
relationship with their clients.
Our analysis is that the emerging companies do not survive because of a lack of
research and poor planning. Laundry Services has invested much time and
resources in researching the market.
The company will have an advantage over its major competitors because it
specializes only in laundry services. We have chosen to specialize only in laundry
services so that we can perfect the art of doing it and ensure that we provide
quality services consistently.
The indirect competition will be people choosing to do their cleaning in their
homes. However, we believe that we will always ensure that using our services
is a better option as it provides quality cleaning at a lower price and is time-
efficient.
iv) Promotion
An extensive marketing strategy will be deployed to shake an already stable
industry that is dominated by big companies. The marketing focus will be to
attract new customers and also to maintain a well-established customer base. The
following are marketing and promotion channels to be used:
Presentation, Pitches, and Proposals
The employees of the Laundry Services are willing to knock at the homes
and offices of the potential clients to set up an appointment for a pitch of
our business concept. The business proposal will also be written through
email communication.
Flyers and business cards
Flyers advertising the services, as well as specials, will be distributed along
with business cards to clients. Flyers will be placed in mailboxes as well
as in parked vehicles’ windshield wipers.
Social media advertisements
The owner intends to place advertisements in various local newspapers,
also place the business on platforms such as Facebook, Twitter, and
WhatsApp.
4
The company has also established a relationship with professional
designers to work on logo design, cards and letterhead, brochures, signage,
and interior design. We are planning to ensure that our marketing strategies
are as cost-effective as possible.
v) Proposed Location
The business will be located at Small Shopping Centre. The place is easily
accessible to the majority of our target market. Our physical needs for location
are very basic. The company needs a location that is big enough and safe to store
its machinery and inventory. The place must have a basic security camera system.
The location must also have an office area which will include the reception area
designed to be consistent with our image and one office for administrative work.
The location with a parking area for the convenience of our clients will be an
added advantage.
>>>>> end of Marketing Plan <<<<<<<<
D. OPERATIONAL PLAN
i) Process Flow
The main focus of the business will be laundry services. The cleaning staff will
deliver the service as per their job description and inconsistent with the client’s
5
needs. We will make sure that our equipment is well services to carry out the job.
We will also provide training for our staff to properly utilize the machines.
ii) Quality control
The Laundry Shop pride itself on providing quality services to its clients.
Feedback mechanisms will be put in place for clients to rate our services and
comment on where we need to improve. The director will also perform spot
checks to ensure that our staff is still delivering quality services.
iii) Personnel
The Laundry Shop's full capacity
will operate with five (5) personnel.
One (1) managing director will be
performing administrative duties
and (4) cleaning staff will be
performing the groundwork.
The company will target youth from
a previously disadvantaged
background that is enthusiastic to
work. The laundry job will require unskilled labor, however, we will invest more
in training and developing our personnel for the best utilization of our machines.
The administrative staff will be the director. He will bring his experience to
ensure that the company is heading in the right direction.
All employees will be paid fairly according to the Department of Labour
minimum wage bill.
iv) Duties and responsibilities
Position Duties
Managing Responsible for providing direction for the business
Directors Creates, communicates, and implements the organization’s vision,
mission, and overall direction – i.e. leading the development and
implementation of the overall organization’s strategy.
Responsible for fixing prices and signing business deals and payment
of salaries
Responsible for signing checks and documents on behalf of the
company
Evaluate the success of the organization
Responsible for managing the daily activities in the organization
6
Defines job positions for recruitment and managing interviewing
process
Carries out induction for new team members
Regularly hold meetings with key stakeholders to review the
effectiveness of the business Policies, Procedures, and Processes
Cleaners Ensures operation of equipment by completing preventive maintenance
Supervisor requirements; calling for repairs.
Responsible for training, evaluation, and assessment of employees
Oversees the smooth running of the daily activities of the organization.
Responsible for handling core services that revolve around washing,
drying, and ironing services as requested by clients
Responsible for transporting equipment, supplies, and workers to
project site
Runs errand for the organization
Handles any other duty as assigned by the manager
Cleaners Responsible for handling core services that revolve around washing,
drying, and ironing services as requested by clients
Handles any other duty as assigned by the Supervisor
>>>>> End of Operational Plan <<<<<<<<
E. FINANCIAL PLAN
i) Start-up costs
Below are the costs that the company is anticipating to incur as the start-up costs
of the company:
PHOMOLO LAUNDRY SHOP START UP COSTS
R
1 Front Loader Washing Machine 8KG R 8,899.99
2 Industrial Tumble Dryer 8kg R 10,999.99
3 Steam Iron X 2 R 5,998.00
4 Ironing Board R 799.00
5 Material Estimate R 4,000.00
R30,696.98
The company is projecting costs up to the value of R30,696.98 as a start-up. The
costs will be funded by the director from his savings. The company has no
7
intention of selling shares to raise capital as yet. The owner is willing to contribute
to the equity of the company to raise capital.
>>>>> end of Financial Plan <<<<<<<
F. PROFESSIONAL AND ADVISORY SUPPORT
• Board of directors
The existing directors serve as the board of directors
• Attorney
The company will in the future identify affordable attorneys that are
reliable
• Accountant
The company will appoint an Accounting Firm to provide professional
Accounting services.
• Banker
The Business bank account will be open in the name of the business with
a trusted institution that supports small businesses.
G. CONCLUSION
Phomolo Laundry Shop is an emerging company with a vision-driven director,
who is hardworking and goal orientated. Our aim with this business plan is to
convince potential clients that our business is well thought of and is bound for
success. We look forward to discussing further the details of the plan with any
stakeholder who would love to do business with us. As our motto says, we will
always make sure you smile, your business place sparkle and you keep shining
above your competitors.
Yours Sincerely,
Mr. M. Motaung
Managing Director
Phomolo Laundry Shop
Cell: 078 1745973
Email: mojalefa4christ@gmail.com
Signature : Date:
