Republic of the Philippines University of Eastern Philippines University Town, Northern Samar College of Business Administration Accountancy Department
PROJECT FEASIBILTY STUDY FOR LIEZYL’S SABON FACTORY OUTLET AND LAUNDRY SHOP (Laundry, Home/ Building, Car, and Personal Care Product Direct Selling and Laundry Services)
Prepared by: AGELINE L. PADILLA ARNEL P. ADORA GENEVIEVE B. SINGZON MARK ANTHONY B. DESQUITADO CLONA JANE C. BRUZA BS Accountancy 5
CHAPTER II PROJECT BACKGROUND and HISTORY
Today’s
society
is
giving
much
of
attention
on
creating things which will bring convenience and benefits to human being. The modern lifestyle demands for things beyond our basic needs. The use of cleaning agents be it for personal or home use has become a necessity than an extravagance. This is because of dependence
of
health
on
hygienic
practices.
On
the
contrary,
the
present economic distress leads to a difficulty in meeting these needs for
we
have
to
prioritize
the
things
which
we
really
can’t
live
selling
and
without as food, clothing, and shelter. Because
of
this,
the
notion
on
direct
distributing GRIST products was initiated. These are products which have
the
same
qualities
with
those
well-known
and
branded
in
the
market. This idea came with the aim to assist the public in reaching and obtaining some needs which are within the main priorities yet important and at the same time securing the benefits of good qualities from those without worrying on the affordability. With maximization
of
the
thought
resources
of
usage
the
business
through
an
as
a
extended
distributor, service
with
laundry acceptance was decided to be added. Moreover, a new kind of service is to be opened for the availment of the people of Lavesarez, Northern Samar.
Nature of the Business In real sense, Liezel’s Sabon Factory Outlet and Laundry Shop has for its main objective a necessity of today’s living, the sanitation. Human health is bound on the situation of his environment, thus, this business intends to serve this ultimate purpose. The need for cleaning agents for personal, home/ building and laundry use, as well as perfumes for men and women is what this business will be trying to meet. These products do have the same, and if not, at least have almost the same qualities with those currently existing at the market. Only that the packaging is a bit given up for those are directly taken from the manufacturer. Laundry services is also
expected
to
be
rendered
to
those
who
seek
quality
cleaning
process of clothes, be it from households or business establishments. This business will be distributing its products through direct selling, thus, a credit system is expected to create a broad and accessible market. Some of its products will of course be used in its laundry division to likewise promote and attest the quality of the products. The community in the town proper of Lavesarez, Northern Samar is the initial target market of Liezel’s Sabon Factory Outlet and Laundry Shop. But once the business is already well-established, it is expected to cater the needs of the neighboring communities.
Rationale The
absence
of
businesses
of
exactly
the
same
nature
Lavesarez, Northern Samar is one of the opportunities Liezel’s Sabon Factory Outlet and Laundry Shop is expecting to seize. Yes, there are general products
merchandise at
the
stores
form
and
existing price
but
this
none
of
business
them
offers.
offer It
must
the be
emphasized that the products to be sold might be inferior in packaging compared to the one’s already existing in the market but the quality is surely not sacrifice. And the necessities of practical living are expected to lead to a choice of sacrificing packaging for the same product quality at a lesser price. In addition, the credit system to be established is expected to be taken advantage by the customers who have the intention of reselling the products. The business will be situated in a commercial area of Lavesarez, Northern Samar, exposed enough to create a market for its laundry
services.
Some
people
may
perceive
seeking
of
a
laundry
service as an extravagance but it could be a great help to individuals and businesses that are busy enough to do this with themselves and to those
who
seek
a
better
cleaning
process
for
their
clothes.
Its
presence at the center of the town is expected to create an extensive demand for both the products and laundry services. Standing
on
the
main
base
which
is
the
products
and
services’ nature itself being a necessity makes its great opportunity to sell on individual household, and businesses. As the location and
size
of
Laundry
the
business
suggests,
Shop
conserve
as
a
Liezel’s
wholesaler
to
Sabon
Factory
those
who
Outlet
want
to
and earn
through reselling. You earn from them as they earn with you. This is an
encouragement
which
will
open
opportunities
for
an
increasing
number of patronizes. Given the loose competition in the market, necessary nature of the products and encouraging credit system Liezel’s Sabon Factory Outlet and Laundry Shop is projected to be feasible.
Statement of the Problem This feasibility study aspires to evaluate the feasibility of hygienic products distribution and laundry services that will cater the residents of Lavezares, N. Samar, specifically it aims to answer the following questions: Economic Aspect: 1. What is the level of demand for the hygienic products of the laundry services to be offered by Liezyl’s Soap Factory Outlet and Laundry Shop? Technical Aspect: 1. What are the promotional activities that the business will use to create demand? 2. Is there a stability of supply from the main source? 3. What are the means of transporting the products from main source to the business location?
4. Will the business site and building be rented or is it an owned property? 5.
What
are
the
necessary
machineries
and
equipment
to
be
acquired? 6. How much cost will be incurred in acquiring machineries and equipment? 7. How many personnel will the business operation require? What are the qualifications that they should set for hiring purposes? 8. What business operation flow should be established in selling hygienic products and laundry services? 9. What are the specific products that the store division will sell and what are the specific services that the laundry shop will offer? 10.
What
will
be
the
costing
and
accounting
system
of
the
business operation? 11. In what type of business will Liezyl’s Soap Factory Outlet and Laundry Shop be classified? Financial Aspect: 1. How much will be the capital investment and how will these be financed? 2. business?
What
will
be
the
projected
financial
statements
of
the
3. What are the projected daily operating expenses that will be incurred aside from cost of sales and services? Social Aspect: 1. What benefits will the community obtain from the business? 2. What are the possible environmental impacts to be considered? 3. What are the existing government regulations that could affect the business operation?
Significance of the Study 1. Data
will
be
used
by
the
client,
Ms.
Liezyl
Bulosan,
in
establishing this kind of business in their municipality. 2. Interested business dealers, to earn extra income in sub-dealing laundry, home/building, and car care products. 3. The community to avail quality branded products at an affordable price. 4. Convenience for those who live and reside within the locale of the study as to the quality cleaning of clothes. 5. Aside from services rendered of the laundry shop, this shall also serve as a promotional campaign for the laundry care products to attest its quality. 6. This study can be used as a preference for future studies of the same kind of business venture.
7. This study shall serve as partial fulfillment of the researchers’ requirements
for
the
Degree
of
Bachelor
of
Science
in
Accountancy. 8. This shall also serve as a training ground of the researchers in preparation for the real corporate world.
CHAPTER III ECONOMIC ASPECTS
Market Analysis Liezel’s Sabon Factory Outlet and Laundry Shop will be located in one of the available space for rent beside the M Lluihller Pawn Shop at Barangay Sabang, Poblacion, Lavesarez, Northern Samar. Considering it is within the commercial center of the municipality and that is close
to
the
different
business
establishments
such
as
bakery,
department stores, etc. and residential houses, its target market will be those that live and reside within the area. The proponents of this project feasibility will make a survey on the target market to establish the market demand and the size of the different segments of the potential customers through questionnaires as research instrument. To compute the number of respondents or the sample population, the following formula will be used and a margin of error of 5%:
n=
N
Where: n = sample population
1+Ne2
N = the population size e
= the margin of error
Lavezares, N. Samar Caburihan (Poblacion) Caragas Cataogan
1539 1172 596
Ocad Sabang Tabok Total
n=
866 1853 6026
6026
= 375
1+[6026 x 0.052]
It will be assumed that the decisions and answers of these respondents whole
to
target
the
survey
market,
questionnaires
which
is
the
is
representative
population
of
the
of
the
poblacion
district, Lavezares, N. Samar, with only a 5% margin of error. The
said
survey
showed
that
the
prospective
customers
of
Liezyl’s Sabon Factory Outlet and Laundry Shop are composed of the following:
39.20% white-collar job
7.20% blue-collar job
10.67% housewives
32.53% students
10.40% do not fit into the first four categories and hereto referred to as the general public.
The survey just proved that the biggest part of the target market
are
otherwise
those
known
employed as
in
individuals
private with
and
white
governmental
agencies,
collar
They
job.
are
followed by students. So, the marketing plans and strategies should focus mainly on these individuals who form part of the target market.
The segment,
general
then
public
housewives,
follows and
in
the
lastly,
said
those
ranking
with
of
market
blue-collar
job.
Although the other three segments of the market are relatively small as to the total prospective market, still, it must be considered in the market plan and strategy to be created for the promotion of the business. With the two different operations of Liezel’s Sabon Factory Outlet and Laundry Shop, the target will then be divided into two, these are: 1. Customers for the Sabon Factory Outlet
Household
–
the
main
target
for
the
Sabon
Factory
Outlet
especially those with extended families that have great demand for laundry and home care product and personal care product for each member of the family. The Liezel’s Sabon Factory Outlet
and
Laundry
Shop
aims
to
exploit
this
market
opportunity by selling the above mentioned care products.
Students – Students have a constant need for bath soap, lotion and
cologne
and
other
personal
care
products
for
their
personal hygiene, thus they are potential market of the Sabon Factory Outlet.
Business Owners – Owners of the business establishments nearby also need janitorial care products for their building/ office to
maintain
the
health
and
sanitation
in
their
respective
areas. Thus they are potential market of the Sabon Factory Outlet.
Business Dealers – Business-oriented people that would like to earn extra income sub-dealing the laundry care, home/building care, and personal care products to ultimate consumer. Thus they are potential market of the Sabon Factory Outlet.
General Public – This refers to the rest of the population that does not fit into other four types of target market above that Liezel’s Sabon Factory Outlet and Laundry Shop aims to serve
by
selling
laundry
care,
home/building
care,
and
personal care products. 2. Customers for the Laundry Shop
Household – Most of the household composed of many members that have no time washing their clothes would resort to the service of a laundry shop especially if it is a well-off family. Thus they are potential market of the Laundry Shop.
Employees
– Employees in different government agencies and
business
establishments
that
are
busy
with
their
work
sometimes need a service from a laundry shop, thus they are potential market of it.
Business Owners – Owners of the business establishments could be potential market of the laundry shop in that there is need for them to wash their linens.
General Public – This refers to the rest of the population that does not fit into other three types of target market above that Liezel’s Sabon Factory Outlet and Laundry Shop aims to serve by washing clothes.
The Laundry
commencement
Shop
potential
of
promotional
customers
be
the
Liezel’s
campaigns
aware
of
will
the
Sabon be
Factory
launched
existence
of
Outlet to
let
laundry
and the
care,
home/building care, and personal care products and laundry services. During these preliminary promotional campaigns, all segments of the prospective market must be reached by the information drive. Posters, flyers and leaflets will be distributed in the locality.
Results of the Survey PART II.SURVEY QUESTIONS FOR SABON FACTORY OUTLET DIVISION A. LAUNDRY CARE PRODUCTS 1. For those who personally wash their laundries, mark the box/es and indicate the prices that correspond to the item/s that you and your family use.
Number of users
375
Demand Level for Laundry Products 72.53%
300 225
54.4% 34.40% 30.13% 18.67% 12.27%
150 75
4.27%
11.20%
0
The bar graph indicates that there is a high demand for laundry products like laundry bar, all-purpose powder, detergent powder, and fabric softener. The respondents we have surveyed have the tendency to buy these products because these are the common products that are usually used in washing laundries than that of liquid detergent.
Products
B. HOME/BUILDING CARE PRODUCTS 1. Do you use these products?
Number of users
375
Demand Level for Home/Building Care Products 85.06%
300
67.73%
225 150
26.4%
22.93%
75
4.53%
0 Air Freshener
Toilet Bowl and Tile Cleanser
Glass Cleanser
Products
Dishwashing Dishwashing Liquid Paste
The graph shows that 85.06% of respondents use toilet bowl and tile cleanser. 67.73% of respondents use dishwashing liquid. This is favorable to the business for this shows that more than 50% of the population are potential customers of the business.
C. CAR CARE PRODUCTS 1. Do you own a car or any vehicle?
51.92 %
48.08 %
Yes No
This pie graph shows that almost 50% of the respondents own a car or any vehicle. This means that respondents may become potential customers if they wash their vehicles on their own.
2. If yes, do you wash it personally or go to car wash?
0%
This is a follow-up question to No. 1. Since all the respondents wash their vehicles personally, they will tend to buy cleaning products or agents for their vehicles.
Wash personally Go to car wash 100%
3. If you wash it personally, how frequent? 9.40%
2.90%
5.80%
Daily Weekly Monthly 81.88%
Others
The graph shows that 81.88% of the respondents wash their vehicles weekly. This explains that any day of a week, a potential customer may buy cleaning agents. This is favorable to the business.
Demand from vehicle owners
4. Mark the item/s that you use for car care and indicate its price on the corresponding line.
180
Demand Level of Vehicle Owners for Car Care Products
The graph indicates that 43.33% will buy car shampoo, 17.22% of tire black, and 4.44% of armor shine. This implies that these products are still wanted by respondents who own vehicles and wash it personally.
150 120 90
43.33%
60
17.22%
30
4.44%
0 Car Shampoo Armor Shine
Tire Black
Products
D. PERSONAL CARE PRODUCTS 1. Mark the box/es that correspond to the kind of bathing soap/s that you and your family use.
Number of users
375
Demand Level for Each Kind of Bathing Soap
300
60.27% 225
45.33%
150 75
7.47%
4.53%
1.07%
Shower Gel Organic Soap
Herbal Soap
0
Products
Whitening Soap
Fragrant Soap
The graph shows that majority of the respondents use whitening soap and fragrant soap. This implies that most of the respondents are potential customers of these kinds of bathing soap that Liezyl’s store offers at a low price.
2. Mark the item/s that you use for personal care and indicate its price on the corresponding line.
Demand Level for Other Personal Care Products Number of users
375
81.07%
73.07%
300
68%
225 34.13%
150
24.80%
21.87%
13.07%
75 0
Products The graph shows that the sample population responded as to what are the products that they use for personal care. Majority of the respondents use toothpaste with 81.07%, lotion with 73.07%, cologne with 68%, and feminine wash with 34.13% among the 375 sample population. This implies that these products are considered basic needs of the respondents for personal hygiene. Therefore, it is favorable to the business.
PART III. LAUNDRY SHOP DIVISION 1. Do you personally ash your laundries?
2.67% 9.33%
88%
Yes
No
Sometimes
This graph shows that 330 (88% of the sample size) of the respondents personally wash their laundries. This means that majority of the population are least likely to avail of the services offered by the laundry shop. Only ten respondents (2.67%) answered “sometimes” to the question. They represent the portion of the population who are more likely to patronize the services. 35 persons (9.33% of the respondents) are most likely to be the potential customers of the laundry shop.
2. If no/sometimes, do you pay for home service or laundry shop?
26.67% Home service
73.33%
Laundry shop
The graph shows that out of the 45 respondents who answered either “no” or “sometimes” to the preceding question, 33 of them (73.33%) hire another person (labandera) to do their laundries at home. Only 26.67%said that they go to laundry shops. This suggests for an intensive advertisement of the services of the laundry shop to generate more customers other than the 26.67%.
3. If you go to laundry shops, how frequent?
Frequency of availing laundry shop services
17.78% 4.44%
77.78%
Of the 45 respondents above, 77.78% said they would go to a laundry shop every week to avail its services, only 4.44% of the respondents said monthly, and 17.78% respondents answered every 2 weeks.
4. What is the average weight in kilo of your laundries per person?
8.89% 4.45%
11.11% 1 kilo
13.33%
2 kilos 3 kilos 4 kilos 5 kilos
62.22%
The graph shows that 62.22% of the respondents have an average of 3 kilos of laundries per member of the household, while 13.33% said they have 4 kilos average weight of laundries per household member. This means that if they are going to ask for laundry services, the laundry shop will earn mostly for 3 or 4 kilos per customer.
A. Wash-dry-fold Service 1. Mark the box/es of the type of your laundries.
Number of respondents
45 36 60% 27 18 17.78%
9 0 Regular
Linens/garments
Type of laundries
The graph shows the percentage of the 45 respondents who are willing to pay the laundry shop for washdry-fold service for each type of laundry.
a. For regular clothes, how much are you willing to pay per kilo of laundry?
Number of respondents
Amount potential customers are willing to pay for the service 27 24 21 18 15 12 9 6 3 0
92.60%
7.40%
0%
0%
The graph shows amount by which the 27 (60% of 45) respondents on the preceding question are willing to pay the laundry shop for washing their regular clothes. 92.60% chose the range of Php36-40.
Ranges of amounts
b. For linens/garments, how much are you willing to pay per kilo of laundry?
Number of respondents
Amount potential customers are willing to pay for the service 8 7 6 5 4 3 2 1 0
75%
Php36-45
12.5%
12.5%
Php46-50
Above Php50
Ranges of amounts
The graph shows amount by which the 8 (17.78% of 45) respondents on the preceding question are willing to pay the laundry shop for washing their linens/garments. 75% chose the range of Php36-45.
B. Wash-dry-press Service 1. For wash-dry-press services, mark the box/es of the type of
Number of respondents
your clothes or linens. 45
The graph shows the percentage of the 45 respondents who are willing to pay the laundry shop for washdry-press service for each type of laundry.
36 27 18 13.33%
9
8.84%
0
Types of clothes
a. For regular clothes, how much are you willing to pay per kilo of laundry?
Number of respondents
Amount potential customers are willing to pay for the service 100% 6 4 2 0
0%
Ranges of amounts
0%
The graph shows amount by which the 6 (13.33% of 45) respondents on the preceding question are willing to pay the laundry shop for washing their regular clothes. 100% chose the range of Php100-120.
b. For linens/garments, how much are you willing to pay per
Number of respondents
kilo of laundry?
4 3 2 1 0
Amount potential customers are willing to pay for the service 75% 25% 0
The graph shows amount by which the 4 (8.89% of 45) respondents on the preceding question are willing to pay the laundry shop for washing their linens/garments. 75% chose the range of Php141-160.
Php141-160 Php161-180
Above Php180 Ranges of amounts
C. Ironing Services 1. Are you willing to pay additional charge for ironing? 0%
26.67%
Yes No
73.33%
Sometimes
The graph shows that only 26.67% of the respondents are willing to go to laundry shops and pay for ironing services.
2. If yes/sometimes, mark the box/es of the type of clothes you are willing to be ironed.
Number of respondents
12 10 8 6
41.67% 33.33%
4
25%
2
The graph shows the percentage of the 45 respondents who are willing to pay the laundry shop for ironing service for each type of laundry.
0 Office/school uniform
T-shirts/blouses
Shorts/pants
Types of clothes
a. How much are you willing to pay for the ironing per pair of
Number of respondents
office/school uniform?
Amount potential customers are willing to pay for the service 5 4 3 2 1 0
80%
20%
Php41-50
Php51-60
Ranges of amounts
The graph shows amount by which the 5 (41.67% of 12) respondents on the preceding question are willing to pay the laundry shop for ironing their school/office uniforms. 80% chose the range of Php4150.
b. How much are you willing to pay for the ironing per piece of t-shirt/blouse?
Number of Respondents
Amount potential customers are willing to pay for the service 100% 4 3 2 1 0
0% Php10-15
The graph shows amount by which the 4 (33.33%% of 12) respondents on the preceding question are willing to pay the laundry shop for ironing each piece of t-shirt or blouse. 100% chose the range of Php10-15.
Php16-20
Ranges of amounts
c. How much are you willing to pay for the ironing per piece pants?
Number of respondents
Amount potential customers are willing to pay for the service 100% 3 2 1
0%
0 Php10-20
Above Php21
Ranges ofAmounts
The graph shows amount by which the 3 (25% of 12) respondents on the preceding question are willing to pay the laundry shop for ironing each pants. 100% chose the range of Php1020.
Selling price vs. Market price
Savings 160 140 120 100 80 60 40 20 0
Selling price Market Price
Laundry Care Products
Selling Price vs. Market Price
700 600 500 400 300
Selling price Market price
200 100 0 Air freshener Tile cleanser Glass cleanser Dishwashing Dishwashing liquid paste Home/Building Care Products
Selling Price vs. Market Price
250
200
150 Selling Price 100
Market Price
50
0 Car Shampoo
Armor Shine
Tire Black
Car Care Products
Selling Price vs. Market Price
140 120 100 80 60
Selling Price
40
Market Price
20 0 Shower Gel Organic Soap Herbal Soap
Whitening Fragrant Soap Soap (glutathione)
Bathing Soap Products
200
Selling Price vs. Market Price
180 160 140 120 100 80
Selling Price
60
Market Price
40 20 0 Feminine Hand soap Wash
Hand Sanitizer
Massage Oil
Cologne Toothpaste
Other Personal Care Products
Selling
Market
Price
Price
Php55.00
Php60.70
Php5.70
Laundry Bar
18.50
24.00
5.50
Fabric Softener
31.50
43.75
12.25
Liquid Bleach
42.00
56.25
14.25
Products
All Purpose powder
Stain Remover (oxalic)
Savings
0.00
Detergent Powder SP100
55.00
57.14
2.14
Detergent Powder QA4
55.00
57.14
2.14
Detergent Powder Ariel Scent
52.00
57.14
5.14
Detergent Powder RG3.2
42.00
57.14
15.14
Liquid Detergent
47.00
150.00
103.00
Powder Bleach
58.50
37.50
-21.00
Air Freshener
100.00
600.00
500.00
Tile Cleanser
91.00
63.00
-28.00
Glass Cleanser
32.50
32.00
-0.50
Dishwashing Liquid
51.00
30.00
-21.00
Dishwashing Paste
39.00
45.00
6.00
Car Shampoo
38.00
200.00
162.00
Armor Shine
55.00
60.00
5.00
Tire Black
90.00
100.00
10.00
Shower Gel
101.50
109.00
7.50
Organic Soap
49.50
41.00
-8.50
Herbal Soap
42.00
58.89
16.89
82.00
116.67
34.67
Whitening Soap (glutathione)
Fragrant Soap
45.00
31.35
-13.65
Feminine Wash
87.50
165.00
77.50
Hand Soap
29.00
52.08
23.08
Hand Sanitizer
42.00
34.58
-7.42
Massage Oil
100.00
40.00
-60.00
Cologne
182.00
41.00
-141.00
25.00
29.86
4.86
Toothpaste
NET SAVINGS
Php711.69
SWOT Analysis The
SWOT
Analysis
sets
out
the
characteristics
of
the
entity which makes up its internal and external strengths and weaknesses, as well as the probable opportunities and potential threats to the organization. Taking these into consideration may help the business know the way to survival and progress from its present standpoint. This is through making use of the strengths, giving direct attention to weaknesses, taking advantage of the opportunities and minimizing the existing threats.
Strengths
Simple organizational structure. With the few employees of the business, organizational problems can be addressed and resolved immediately.
Incorporated promotion of products on laundry services. The laundry division attests the quality and promotes some of the products through its services.
Market-known product qualities. The fact that products to be sold have the same quality with those existing in the market will create a continuing patronage of those who know this.
Accessibility
of
supplier.
Supplies
of
product
will
be
taken from a distributor in UEP Catarman, near enough to cover immediate orders and avoiding transportation expenses if the products will be taken directly from the supplier.
Strategic location. The business will be situated within a commercial area in the town proper of Lavezares, N. Samar, thus, creating accessibility for the target customers.
Monopolistic character. No existing establishment of the same industry is operating within the immediate area of proposed location.
Weaknesses
Unestablished name and goodwill of products and services. The entity cannot use the name of the products already existing in the market though they have the same quality. This
will
products
create known
established
to
a
competition the
goodwill
market. since
and The
the
strive laundry
business
to
make
shop is
the
has just
no to
commence.
Inability to accommodate large number of customers. Since the laundry shop will just be starting, the business will initially operate with a single operating machine which may not be enough to accommodate too much customers. Opportunities
The business will just be the second factory outlet in Northern
Samar
situated
in
of
UEP
the
Grist
Catarman
Company.
which
is
The
other
relatively
one
far
is
from
Lavezares and which may give broader market coverage for the products and services.
The absence of same factory outlets in the second district of the province will create an opportunity for the business to earn through recruitment.
Spreading
public
knowledge
about
the
good
qualities
of
products at lower cost as well as on its laundry services may lead to business monopolizing the market. Threats
The continuing entries of imitated products in the market may
lead
to
the
misconception
of
the
public
that
the
products offered are mere imitations and ineffective.
Increasing cost of living and business costs may trigger the
laundry
shop
customers
to
resort
to
cheaper
alternatives as household “labanderas.” Strategies
Advertisements. list
will
be
Flyers
with
distributed
products
throughout
and
services
Lavezares,
price
Northern
Samar and the neighboring communities for the awareness of the public on authenticity of products and its less cost.
Credit
system.
Establishing
a
good
credit
system
will
create extensive patronage by those who want to avail of the products but don’t have the immediate means.
Direct selling. Employing the service of dealers who will undergo direct selling of the products at an extension of credit line as an incentive will enhance sales.
Recruitments. district
of
Recruiting Northern
distributors
Samar
who
will
from
the
directly
second buy
the
products from the business will yield an additional profit and broaden the market.
Discounts. Offering discounts for large number of purchases and availments of services. Keys to Success
The
location
of
the
project
is
an
important
factor
to
success. It should be situated on area accessible to the general public, thus, this project will be located on a site within the commercial area which is on Brgy. Sabang Tabok in the town proper of Lavezares, N. Samar where it is near to the other businesses and could be easily seen by the people.
For
the
products
promotional products
and
activities
and
services
services should price
be list
to
enter
conducted. should
be
the
market,
Flyers
with
distributed
within and outside the town proper.
Orders received through the dealers and distributors should be
filled
accounts.
promptly
as
well
as
the
collection
of
the
Maintenance
of
good
relationship
with
customers
is
important. Their concerns should be addressed to as soon as possible.
CHAPTER IV TECHNICAL ASPECTS
Proposed Legal Business Status It is advisable for this kind of business operation to be organized as either sole proprietorship or a partnership for it is less complicated to manage than a corporation. Thus, the Liezyl’s Sabon Factory Outlet and Laundry Shop will be a sole proprietorship. This will be owned by Ms. Liezyl and will invest the needed initial capital and will solely benefit from the profits of the business.
Market Entry Timing The Liezel’s Sabon Factory Outlet and Laundry Shop should commence its operation at the start of the summer season expectedly this coming third week of March. In this way, the people in the community will become aware even before the peak demand for these type of products in the later month of the year. Proposed Costing and Accounting System The Liezyl’s Sabon Factory Outlet and Laundry Shop shall account the following 1. A separate checking account -
Liezyl’s Sabon Factory Outlet and Laundry Shop shall establish a separate checking account for its business operation. All collections
and
disbursements
made
by
distributing
and/or
selling
products
and
rendering
laundry
services
shall
be
deposited and paid through this account. The purpose of creating such account is to avoid misallocation of
resources
and
funds
between
personal
interest
and
development of the entity as a whole.
2. Establishment of petty cash fund Liezyl’s
-
Sabon
Factory
Outlet
and
Laundry
Shop
shall
establish a Php 6,000.00 petty cash fund under the imprest system. The main objective of integrating imprest fund system is to eliminate the impracticality of issuing checks for immaterial amount of ordinary and necessary expenditures and to make sure that all collections are deposited to the checking account in a consistent manner. 3. Adoption of a double entry system -
The Liezyl’s Sabon Factory Outlet and Laundry Shop shall adopt the
“double
entry
bookkeeping
system.”
Tacit
to
the
integration of this system are the following:
Chart of accounts
Liezyl’s Sabon Factory Outlet and Laundry Shop shall use the following accounts:
Liezyl’s Sabon Factory Outlet Division
110 – Cash
210 – Accounts Payable
520 – Freight-in
120 – Accounts receivable
220 – Other Payables
530 – Utilities Expenses
130 – Inventories
310 – Liezyl, Capital
540 – Rent Expenses
140 – Prepaid Expenses
320 – Liezyl, Withdrawal
550 – Supplies Expenses
150 – Other Assets
410 – Sales
560 – Depreciation Expenses
(160 – 190) Fixed Assets
510 – Cost of Sales
570–
Doubtful
Accounts
Expenses 580 – Other Expenses
Laundry Shop Division
110 – Cash
210 – Accounts Payable
520 – Utilities Expenses
120 – Accounts receivable
220 – Other Payables
530 – Rent Expenses
130 – Inventories
310 – Liezyl, Capital
540 – Depreciation Expenses
140 – Prepaid Expenses
320 – Liezyl, Withdrawal
550
–
Doubtful
Expenses 150 – Other Assets
410 – Laundry Services Revenue 560 – Other Expenses
(160 – 190) Fixed Assets
510 – Supplies Expenses
Accounts
A General Journal and Ledger Book
Liezyl’s Sabon Factory Outlet and Laundry Shop shall open a general journal and a general ledger for each revenue unit. The former is for chronological and systematic record keeping. For the latter, it’s for classifying accounts for its easy reference and accumulating information. Liezyl’s Sabon Factory Outlet and Laundry Shop shall follow the common format of journal and ledger. Journal
Date
Account Title & Explanations
P.R.
Debit
Credit
P.R.
Debit
Credit
Ledger Date
Particulars
Financial Statement Preparations
Liezyl’s Sabon Factory Outlet and Laundry Shop shall make used of the following format in the preparation of its financial statement;
Statement of Comprehensive Income Liezyl’s Sabon Factory Outlet Division Sales
Php xxxx
Cost of Sales Inventory, Beg. Php xxxx Add: Purchases xxxx Freight in xxxx Goods Available for sale xxxx Less: Inventory, end xxxx Gross Profit Less: Operating Expenses Operating Income Less: Tax (Operating Income* Tax Rate) Net Income
(xxxx) Php xxxx xxxx xxxx xxxx xxxx
Liezyl’s Sabon Laundry Division Laundry Services Revenue Less: Operating Expenses Supplies Expenses Php xxxx Utilities Expenses xxxx Rent Expenses xxxx Depreciation Expenses xxxx Doubtful Accounts Expenses xxxx Other Expenses xxxx Operating Income xxxx Operating Income Tax (Operating Income* Tax Rate) Net Income
Php xxxx
xxxx xxxx xxxx
Changes in Equity
Liezyl, Capital – Beginning Add: Net Income in Factory Outlet Division and Laundry Division Additional Investment Laundry Division and Laundry Division
Php xxxx xxxx xxxx
Total Capital available Less: Liezyl, Withdrawal Liezyl, Capital – End
Php xxxx xxxx xxxx
Statement of Financial Position 4. Methods of Asset Accountability Cash - Liezyl’s Sabon Factory Outlet and Laundry Shop shall measure cash on its face value. Cash on hand and at the end of the operating period. Any shortage or overage
should
be
charged
according
to
the
identifiable reason of such cash shortage/overage. Inventory - Liezyl’s Sabon Factory Outlet and Laundry Shop shall measure base on the physical count. Any discrepancy shall be changed appropriately. Prepaid
rent
-
Liezyl’s
Sabon
Factory
Outlet
and
Laundry Shop shall be recorded as an asset instead of expenses. Cash Control A cash control system must be developed and maintained to ensure no irregularities in handling cash. This is also designed to avoid or lessen frauds, errors, and misstatements during the accounting period. The division of duties and responsibilities of every personal is welldefined to prevent conflict of interest: 1. The manager (also acts as cash custodian) will be responsible for receipt of cash sales, laundry fees, and collection of sales on account. He will verify and check all accounting records and
documents that are submitted by store custodian and laundry shop operator.
He
will
check
and
verify
all
collections
and
disbursements made with supporting evidences or documents. He is the
one
who
will
issue
checks
for
any
payment
made
by
the
business. 2. A petty cash of Php 1000.00 will be maintained and shall be in the custody of the manager as a change fund and small amount transactions. 3. Accounting books for financial transactions must be maintained by store custodian for store operations and by the laundry shop operator for the laundry shop operations. 4. Excess cash of the business shall be deposited to a checking account in the name of the business with the managing partner as the signatory. 5. All payments to be made by the business shall be made by drawing an account from the above mentioned checking account. 6. The managing partner will approve the purchase order made by the store custodian. At the same time, the purchases are made by the latter.
Proposed Liezyl’s Sabon Factory Outlet Division
Liezyl’s Sabon Factory Outlet and Laundry Shop shall operate a direct selling business of laundry, car, home/building and personal care products. Aside from selling to its final customer it opts to extend credit to those who are willing to
serve as sub-dealers for the product listed below provided they are to fill-out registration form. This will serve as a document binding him/her as an official dealer of Liezyl Sabon factory outlet. For the list of products, see Appendix. Every dealer of the Liezyl’s Soap Factory Outlet Division shall have a registration form free of charge that will be used to keep tract of his/her credit purchases, payment, etc. after issuing him/her unique ID number/Dealer code. The following must be observed upon signing in as a dealer. 1.
Completely filled-out original Liezel’s Sabon factory outlet registration form in two copies.
2.
Photocopy of both front and back sides of any one valid ID number, ID type, signature and unique cell phone number.
3.
The ID type details have to match the valid ID’s photocopy. Also the member’s signature at the bottom has to be identical with the signature on the valid ID.
Terms and Conditions 1.
Upon
sign
in
of
the
new
Dealer,
he/she
shall
have
an
automatic Php 1,000.00 available credit line at an outright 10% discount
payable
immediately
after
seven
days
upon
purchase
order of product from Liezly’s Sabon Factory Outlet Division. 2.
In
every
purchase
of
dealers,
he/she
is
entitled
to
an
outright 10% discount. -
An outright dealer’s discount of 10% on catalog price is granted immediately to all Liezly’s Sabon Factory Outlet Division dealers on product purchase in catalog.
-
When purchasing products at the 10% discounted price, Leizel Sabon Factory Outlet can re-sell the products to non-dealers or final costumers at catalog price and earn the difference.
3. Upon every purchase, the dealers must pay at least Php 50.00 to serve as down payment. This amount shall be deducted from his/her total personal sales to arrive at final amount due. When personal sales exceed the available credit line, the difference must be paid upon purchase. 4. He/she shall pay the amount due to him/her immediately after seven days, counting from the day of purchase order. Failure to pay
on
time
shall
mean
a
penalty
on
delinquent
account.
An
additional charge of 1.5 % on the amount payable to Liezly’s Sabon Factory Outlet Division shall be paid by the dealers. Computations: Amount payable
xxxx
Add: Delinquency interest (Amount payable x 1.5% x number of days delayed for payment)
xxx
Tota lamount payable
xxxx
For
dealers
who
want
to
earn
more
from
Liezyl’s
Sabon
Factory Outlet Division, they can expand their credit line for an opportunity to increase their personal sales with a very low cost of capital.
a) First, always pay on time and top-up
Proposed Operation for Liezyl’s Laundry Shop Liezyl’s
Laundry
Shop
will
offer
laundry
services
that
are
generally related to the cleaning of various types of fabric. It can be a range of activities such as washing and drying of clothes and linens. In addition to this, Liezel’s Laundry Shop will also offer ironing and packaging garments for ready use. And if it will include pick-up and delivery of clothes and linens to a particular location. A
different
charge
is
also
expected
for
different
types
of
laundries. For regular clothes (composed of t-shirts, blouses, shorts, pants, jackets, office and school uniforms) will be charged Php 38.00 per kilo for wash-dry-fold services and Php 100.00 per kilo for washdry-press
services.
For
linens/garments
(composed
of
comforters,
curtains, pillow cases, bed sheets, towels, and car covers) will be charged Php 45.00 per kilo for wash-dry-fold services and Php 150.00 per kilo for wash-dry-press services. For ironing services of regular clothes – cleaned clothes already, will be charged Php 50.00 per pair of
office
and
school
uniform,
Php
8.00
per
piece
of
t-shirt
and
blouse, and Php 10.00 per piece of shorts and pants. In operation, the first thing that should be done is to tag and inspect the laundry that is brought by the customer. Paper tags or labels are placed on the clothes to identify them with a particular owner and prevent the clothes from being mixed up. The garments are also inspected for damages such as tears or missing buttons to take note of their condition before they are brought in.
The customer will be given a job order sheet (refer to Appendix C) to make them aware of the terms and conditions of the services. This will be presented upon pick-up of laundries by customers or upon delivery. Before wash proper is started, the supplies and equipments are inspected if they are available and/or ready for use. Supplies are soap, laundry detergents, and fabric softener that will be purchased from Liezyl’s Sabon factory Outlet at full cost. While equipments are washing
machine,
electric
fan,
and
electric
iron.
Finally,
the
laundries are being washed, dried, folded, and pressed, depending on the customer specification, and packed to make it ready for pick up or delivery. The capacity of washing machine is estimated at eight kilos of laundry, six times per day. The policy on claiming cleaned laundries is “first come, first serve” basis. If the number of kilos received on that day is less than fifty kilograms, the customer can claim their clothes the next day. If more than fifty kilograms of laundry is received on that day, the excess of fifty kilos will be claimed two days
after.
Completion
of
service
and
delivery
depends
upon
the
receipt of laundries in kilo per day. Once delivered or picked-up, collection
of
laundry
fee
is
done
but
advance
payment
is
always
accepted. No down payment is necessary. Free delivery will be granted to loyal customers and/or ten kilos above of laundries.
Procurement Process For practicality purpose, the owner/proprietor of Liezyl’s Sabon Factory Outlet and Laundry Shop shall serve as liaison between the business and the supplier and at the same time as procurement officer. She shall also be responsible for the ordering of stocks from the supplier of personal care, home/building care, and car care products. She is also in charge of transporting the goods from the supplier to the store. The necessary
procurement expenses
officer that
shall
will
be
be
given
incurred
an for
allowance the
for
the
procurement
transactions.
Methods of Purchasing Liezyl’s
Sabon
Factory
Outlet
and
laundry
Shop
has
a
fixed
supplier of the products that it is going to sell. Inventory shall be replenished monthly or when needed and all purchases shall be listed in the purchasing record book.
Steps in Purchasing
A particular step for purchasing is required to avoid infusion. The purchasing flows are the following: 1. to know and be aware of the needs, 2. specification of the items needed, 3. listing of items to be authorized for purchase requisition, 4. contract with the supplier for orders, 5. follow-up orders, and 6. closure of deal at a mutually agreed price.
Purchase Requisition Form The purchase requisition form is a printed paper that bears the original
and
official
logo
of
Liezyl’s
Sabon
Factory
Outlet
and
Laundry Shop. It is a standard operating procedure. Purchase
requisition
forms
are
strictly
signed
by
the
owner/proprietor. If any form is unsigned, it is considered void. The form contains the following:
A. Requisition number This is to identify and control purchases for the week or month. B. Quantity and cost per unit Quantities are important because it is the basis for the needs.
Costs
against
quantities
are
also
control the total cost every week or day.
expressed
to
C. Specification of item D. Supplier It is necessary for comments or problems with the deliveries. E. Signature of owner/proprietor for approval.
Purchase Order Terms and Conditions
Quality inspection will be initiated by the liaison prior to the delivery.
All deliveries will be subject to inspection.
All specification and quality should be met by the supplier. Any alteration or deviation will be ground for rejection of delivery without any obligation on the business’ part.
Manner of payment will be based on the agreed terms and condition set in the purchase order.
Original delivery receipt and invoice must be included in the delivered products and to be submitted to the owner/proprietor.
Receiving The receiving process shall be vested to the procurement officer who shall also be capable of handling problems that may occur in transporting the purchases from the supplier to the store. She shall also
examine
the
quantity,
quality,
and
size
of
the
items
if
it
conforms
to
the
specification
prior
to
transporting.
For
control
purposes, all items received shall be entered in the receiving record.
Location and Site Liezyl’s Sabon Factory Outlet and Laundry Shop will rent a 24 square meter space located at Brgy. Sabang Tabok, Lavezares, Northern Samar. The location is very viable to conduct business because it is near the residential area, school, church, and public market. The location and site can introduce the business itself and the product and services it renders.
CHAPTER V MANPOWER AND MANAGEMENT
Organizational Structure
The organizational structure describes the official relationships of persons in an organization.
It has to do with the chains of
command and the division of duties, with the emphasis on the former. It forms part of the over-all organization plan.
The organization
chart should be set in a clear picture with the job descriptions and operating
procedures
to
give
emphasis
and
particularity
on
the
delegation of authority and responsibility. Liezyl’s Sabon Factory Outlet and Laundry Shop organization will be on a line type of structure.
Centralization of operation and
decision making will be observed though the business has two divisions considering the size of business itself and the simplicity of the organizational structure.
The owner, as also the manager, will be
seeing through the management and over-all operation of the business. The store custodian will handle the selling operations of the products as the laundry shop operator will take care of the laundry services. Their responsibilities extend to the custody of the assets within their division. A liaison employee will be hired for the entire business.
His
responsibility is on assisting the laundry shop operator in its daily operation.
He will also be taking care of the deliveries of products
from the supplier to the store.
A single liaison employee will be
hired with the thought that some store deliveries will not be often done as the assisting in the laundry shop.
And so it is reasonably
expected that he will be able to meet his responsibilities in both divisions.
Good relationships of the divisions as well as their respective personnel should be developed.
This is to initiate congruencies so as
to signify the duties and responsibilities of each person making up the whole organization.
Organization Lay-out
Manager/ Owner
Store Custodian
Laundry Shop Operator
Liaison Employee
Line Relationship A line relationship represents the power of authority to command that is exercised by a person over his direct subordinates.
The
manager /owner has the power of supervision, direction and evaluation on the work of his subordinates.
The store custodian and laundry shop
operator will share authority over the liaison employee.
JOB DESCRIPTION
Position Title: Manager Job Summary: Responsible for the profitability and growth of the business Duties and Responsibilities: 1. Planning – Establish and maintain an integrated plan consistent with both short and long term goals and objectives. 2. Organizing – Develop and maintain an effective organization which will ensure that work is done effectively and economically. 3. Control- Develop and maintain control system to ensure conformance of operations and results to what was planned. 4. Design, establish and maintain an effective accounting system for financial transactions of both divisions. 5. Verify and check all accounting reports and documents that are submitted by the store custodian and laundry shop operator. 6. Check and verify all collections and disbursements made with their supporting documents. 7. Signs check for any payment made by the business. 8. Responsible for implementation and monitoring of organization rules and regulations. 9. Responsible for fixing salaries and benefits. 10.
Assumes other duties analogous to the above mentioned.
JOB DESCRIPTION
Position Title: Store Custodian Job Summary: Responsible for the selling operations of the products Duties and Responsibilities: 1. Entertaining of customers on products offered. 2. Maintaining enough stocks for the store. 3. Setting of reorder point for inventories. 4. Collection of customer due accounts. 5. Assessing credit lines of customers, dealers and distributors. 6. Maintaining books in accounting for financial transactions. 7. Providing periodic reports on the financial position and performance of the division. 8. Taking care of assets within the division. Job Specification: 1.
Male/ Female, 20-35 years of age
2. At least high school graduate, preferably college level. 3. Excellent in oral and written communication. 4. Has an excellent interpersonal skill.
JOB DESCRIPTION Position Title: Laundry Shop Operator Job Summary: Responsible for the operation on laundry services Duties and Responsibilities: 1. Handling the actual cleaning of laundries.
2. Scheduling
of
accepting
and
returning
of
laundries
to
customers. 3. Procurement and maintaining of stocks of supplies to be used in service. 4. Maintaining books in accounting for financial transactions. 5. Providing periodic reports on the financial position and performance of the division. 6. Taking care of the assets within the division. Job Specification: 1. Male/ Female, 20-35 years of age 2. At least high school graduate 3. Knows how to operate a washing machine
JOB DESCRIPTION Position Title: Liaison Employee Job Summary: Responsible for the assistance on laundry shop and store division Duties and Responsibilities: 1. Assisting the operator of laundry shop on entertaining of customers and cleaning of laundries. 2. Taking care of the deliveries from the supplier to the store.
3. Assistance on whatever situation which requires such. Job Specification: 1. Male, 20-35 years of age 2. At least high school graduate 3. Have excellent interpersonal skills
Management and Supervision The proprietor will be the one to manage and supervise the business operation. As the manager, she will direct and control the operations in both divisions with the objective of bringing out
quality
service
requirements,
a
to
manager
customers. needs
to
meet
To and
accomplish practice
these ethical
standards and apply strategies on dealing with its employees.
The Recruitment Process The manager shall personally choose and hire the employees for the business. should
be
met
by
The specifications required for each job the
chosen
applicant.
A
weight
on
trustworthiness should be considered for they will be entrusted with the assets of the business, so it would be better if the manager personally know them.
In addition, the requirements for
the oral and written communication skills and ability to operate
a washing machine should be given an emphasis for these are vital in carrying out their duties and responsibilities.
Training and Development Training and development refers to employees’ acquisition of knowledge, development of skills and proper work attitude. Training of employees is a means for Liezyl’s Sabon Factory Outlet and Laundry Shop to ensure job security which is necessary in giving quality services. The store custodian must be oriented by the manager/ owner on
his
line
of
dealing
with
sales,
training
which
duties
will
and
responsibilities,
credit be
system
given
by
and
the
particularly
customer
company
on
relation.
from
which
A
the
laundry shop equipments will be purchased should be undergone by the laundry shop operator.
The liaison employee should as well
be trained and oriented on his role in the business. Many new employees are very uncomfortable in a new job, and the new orientation program of Liezyl’s Sabon Factory Outlet and Laundry
Shop
should
serve,
among
other
things,
as
introduction to the organization as well as the job. staff member will be given the following:
gradual The new
1. Liezyl’s Sabon Factory Outlet and Laundry Shop history, its policies,
programs
and
procedures,
objectives,
and
organizational structure. 2. Working hours, salaries and benefits. 3. Brief description of duties and time of breaks. 4. Dress code.
Human Resource Management Human
Resource
responsibility organizing,
Management
of
is
management
directing,
the
main
which
controlling
function
includes and
and
planning,
coordinating
of
employees. Liezyl’s Sabon Factory Outlet and Laundry Shop has a small organizational structure that is in a sole proprietorship form of business. This establishment cannot provide separate human resource
management
instead,
dealing
department
and
handling
to of
handle
its
personnel
employees
but
lies
the
on
manager/owner. The manager and the line staff are carried on in a constant coordination duties
about
supervision.
to
exchange the
their
matters
ideas
concerned
and
synchronize
under
a
their
particular
Importance of Human Resource Management: 1. Keeps track on employee’s performance 2. Provides proper training and orientation to an employees’ designated job 3. Maintains good relationship with co-employees 4. Gives rules and policies to be followed
Time of Business Operation 9:00 a.m. – 12:00 p.m., 1:00 p.m. – 6:00 p.m. (8 hours of operation from Mondays thru Saturdays)
Time of Employees Operation Eight (8) of operation from Mondays thru Saturdays for the store custodian, laundry shop operator, and liaison employee who are allowed a one hour lunch break from 12:00 p.m. to 1:00 p.m. wherein they may close the store as they wish.
Salaries and Wages The following are the rate of salaries for each employee:
Laundry shop operator -
Php 150.00 per day/ Php 3,600.00 per
month Store custodian -
Php 120.00 per day/ Php 2,880.00 per
month Liaison employee -
Php 100.00 per day/ Php 2,400.00 per
month
Employee Benefits Sick leave – sick leave eligibility starts after six months of
continuous
service.
Liezyl’s
Sabon
Factory
Outlet
and
Laundry Shop considers sick leave as any temporary absence to illness or non-occupational injury that prevents the worker from coming to work.
A medical certificate must be presented.
Policies and Disciplinary Actions
Liezyl’s Sabon Factory Outlet and Laundry Shop Title:
POLICY CODE OF DISCIPLINE
In any organization, a code of discipline is vital. such
Liezyl’s
Sabon
Factory
Outlet
and
Laundry
Shop
As must
maintain House Code of Discipline for every employee to abide by
abide conduct himself accordingly. The purpose of a House Code of Discipline is meant to correct an erring employee rather than to inflict punishment.
It also helps us maintain a standard
quality of employee.
ACTS OR OMISSIONS CONCERNING COMPANY PENALTY
PENALTY
FUNDS OR PROPERTY a. Stealing,
misappropriating
or
embezzling Dismissal
company’s funds or property b. Fraudulent acquisition
or
illegitimate
or
release
to
withdrawal other
person
or Dismissal of
company’s funds and property c. Deliberately
causing
loss
or
damage
company’s property
to Suspension without pay
d. Committing other acts of dishonest, deceit or Suspension anomaly
without pay
e. Unauthorized
painting,
marking,
carving
removal of things f. Indiscriminate persons
to
use
or Oral/written reprimand
use
or
allowing
materials
and
unauthorized Oral/written facilities
in reprimand
loss or damage g. Negligence or carelessness resulting in loss Oral/written or damage of property
reprimand
ACTS OR OMISSIONS AFFECTING COMPANY’S INTEREST a. Forging or falsifying or altering record, or Dismissal other records in such a way as to mislead the user/s thereof
b. Making false or malicious statements about the Dismissal business
c. Disclosing,
giving
way,
or
using
restricted Dismissal
information without proper authorization
d. Making use of record/s or document/s known (by Dismissal user) to be false
e. Unauthorized
use
obtain benefits
of
the
business’
name
to Dismissal
ACTS OR OMMISSION CONCERNING HARMONY AND PENALTY GOOD, ORDERLY, SAFETY, SECURITY AND DECENCY
a. Bringing
in,
firearms,
or
unauthorized
explosives,
other
possession deadly
of Oral/written
weapons reprimand
within the store/shop premise or jobsite b. Immoral
conduct
or
conduct
grossly
nature within the business c. Stealing,
concealing,
indecent Oral/written reprimand
or
deliberately Dismissal
misplacing without justifiable purpose d. Absence
without
proper
notice
superior of the cause thereof
to
notify Oral/written reprimand
e. Abandonment of job
Dismissal
f. Habitual tardiness
Oral/written reprimand
CHAPTER VI FINANCIAL ASPECT
Project Investment The establishment of Liezyl’s Sabon Factory Outlet will need a total
initial
investment
of
Php
405,456.46.
This
will
be
fully
financed by Ms. Liezyl Bulusan, the proprietor. She will be entitled to all the profits and losses of the business.
List of Expenses The following are the expenses involved in the business operation aside from the cost of sales and cost of services: o
Taxes and licenses. The business will pay for the legal expenses to the Department of Trade and Industry, Bureau of Internal
Revenue,
and
the
Local
Government
before
the
formal operation. o
Consultant’s fee. This will be paid for seeking the service of
consultants
in
ascertaining
the
viability
of
this
undertaking. o
Marketing
expense.
Promotion
through
radio
and
flyers
distribution will be made. This expense is presumed to be higher on the first quarter for an intensive advertisement and will be less and same amount on the following quarters. o
Rent expense. A monthly rent expense of Php 3,000.00 will be paid for the space occupied by the business.
o
Salaries expense. Salaries will be paid for the laundry shop operator, store custodian and liaison employee.
o
Utilities
expense.
This
will
include
the
payment
for
electricity and water. o
Depreciation expense. Depreciation of fixed assets shall be provided.
o
Supplies expense. Supplies expense shall be recognized for the supplies used.
o
Miscellaneous expense. This will include transportation and other expenses.
CHAPTER VII Social Desirability Aspect
The establishment of Liezyl’s Sabon Factory Outlet and Laundry Shop
in
Lavezares,
N.
Samar
will
be
beneficial
not
only
to
the
proprietor, but also to the community. The gains that each sector of the
society
can
obtain
from
the
business
operation
are
stated
as
follows:
To the Client: The primary objective of this undertaking is the profit that the owner will derive from its operations. Offering quality personal care, home/building care, and car care products at a low price can induce more customers to buy these products; thus, generating more income. On the other side, the proposed laundry shop will also contribute to the overall profit of the business. Plus, the fact that there is still no existing business in town that provides the same services that it offers such as washing, drying, and ironing clothes will make customers who seek these kinds of services go directly to Liezyl’s Laundry Shop. To the Household and Environment: The low price of the products that the business will offer will generate
more
savings
to
its
customers
than
if
they
choose
to
patronize other brands with equal quality but of a higher cost. These are designed to maintain good personal hygiene and cleanliness of the surroundings and personal belongings; thus, providing a more healthy environment.
The laundry shop will ease the lifestyle of the members of this sector as it will lessen the burden of doing the laundries every now and then.
To the Unemployed Individuals: Liezyl’s Sabon Factory Outlet and Laundry Shop at its inception will need experts and laborers for the design and construction of the building which serve as the venue of its operations. Subsequently, it will also hire some personnel who will operate the business. On the whole,
the
establishment
of
this
business
will
create
employment
opportunities for this sector.
To the Supplier: Since Liezyl’s Sabon Factory Outlet and Laundry shop has a fixed supplier of the goods that it will sell, all the inventory demands of the business will go to it. Thus, creating additional sales on the part of the supplier.
To the Government and the Public The right of the business to earn income from its operations has its corresponding duty and responsibility of paying its taxes and licenses which will provide the government additional fund for the provision of services to the public.
