CHAPTER 1

BACKGROUND AND INTRODUCTION

A. Introduction

A car wash center is a car service center that is specialized in providing

interior and exterior car cleaning. The car wash started from a humble beginning and

grew into a large industry, it’s been almost 102 years since the first car wash was

opened. The first car wash center was operated in Detroit, USA at year 1994. Car

washes keep your car healthy, it makes your car good looking in regular washes and

waxes are important to keep your vehicles shine and healthy.

At present, the Philippines has a growing business of car wash service center,

the Department of Trade and Industry stated that there are 62% increase in car wash

business here in the Philippines. In the local 42% increase in car wash business, so,

the proponents believed that establishing car wash business in Tanauan will be

marketed.

The proponents proposed an on call car wash. An on call car wash is a car

wash where the customers do not need to go to the service center instead the car

wash center is the one to go to the customer. The target market of the proposed

business is every car owners especially the private car owners. The car wash is a

need in the local since there are a lot of car owner. Most of the car owners are

employee; therefore they don’t have time to go to a car wash center at all times.

Therefore, the researchers focused on a feasibility study of launching car wash on

call business which the researchers believed that it will be useful for every car owner

who don’t have time to go to car wash service center.

B.Statement of the Problem

The problem which the study intends to investigate to whether the proposed

business is feasible or not to establish a car wash on call in Tanauan City Batangas.

The proponents seek to establish on answer to the following questions.

Marketing aspects

1. Who are the target markets of the proposed business?

2. What is the projected demand of the proposed service?

3. What competition exists in the market?

Technical Aspects

1. Does the chosen location possess of the accessibility for the clients?

2. How will the services be rendered?

3. What development or uniqueness is proposed by the ?

Management Aspects

1. What form of business organization suits the proposed business?

2. How many employees will be needed?

3. What are the duties and responsibilities of the employees?

4. What would be the organizational structure?

Financial Aspects

1. How much money is needed to operate the business?

2. What are the sources of funds?

3. Where will the proponents get their capital?

4. How much is the projected sales of the proposed business?

 5. How much is the project income statement and balance sheet of the

business for the next five years?

Socio-economic Aspects

1. What are the benefits of the service in society?

2. How can the service contribute in the economy?

3. How can the service affect the environment?

Objectives of the Study

To determine if there is a market to support the potential business and how

feasible it can be in the market. The projected feasibility study aim to achieved the

following objectives.

Marketing Aspects

1. To determine who are the target market of the proposed business.

2. To determine the projected demand of the proposed service.

3. To know the competitors strengths and weakness by knowing the existing

competition market

Technical Aspects

1. To determine the choice location possess the accessibility.

2. To determine the services will be rendered.

3. To determine the development or uniqueness is proposed for the project.

Management Aspects

1. To determine the form of business business organization suits in the

proposed business.

2. To determine how many employees are needed.

 3. To determine what are the duties and responsibilities of the employees.

4. To know what would be the organizational structure.

Financial Aspects

1. To determine how much money is needed to operate the business.

2. To determine what are the sources of funds.

3. To determine where will the proponents get their capital.

4. To figure out the projected sales of the proposed business.

5. To know the projected income statement and balance sheet of the business

for the next five years.

Socio-economic Aspects

1. To know what are the benefits of the service in society.

2. To determine how can the service contribute in the economy.

3. To determine how can the service affect the environment.

Scope and Limitation

The researcher comprehensively studied the specifics of the proposed

business. The scope of the study was to build new innovative car wash in Tanauan,

City, Batangas. The study included the target markets, competitors, location, profits

earned, capital raised, how they manipulate their business, how they solve the risk

that they can encounter and how they work. The proponents administered the study

to various level brackets of respondents resulting to have 300 respondents.

This study focused on the five aspects. First, is the marketing aspect that

focuses on the market demand and competition exist in the market. It also focuses on

the strategy of organization. Meanwhile, the technical aspects focused on the

development and services of the proposed business. The management aspects

identified the duties and responsibilities of the employees flow of authority and

organizational structure of the business. While the financial aspects focused on the

corporate social responsibility that are business entails.

C. Significance of the Study

The proponents believe that the study will benefit the following sectors:

Libraries. This study can be a reference material for both graduate and

undergraduate students who intend to pursue further studies.

Future Entrepreneur. This study will benefit the future entrepreneur by adding this

study to their references.

Other Researchers. This study can give them insights and information about

establishing a car wash business.

Definition of terms

The following words are defined conceptually and operationally to attain an

understanding feasibility study.

Car exterior. The basic parts of the car located outside, such as headlights, bumper,

windshield, roof, wheels, engine, hood, door, window and wiper.

Car Interior. The basic parts of the car located inside, such as carpet, seats,

dashboard, air vent, sound system and transmission.

Car wash. The act of cleaning the exterior and interior part of the car.

Detailing. The process of thoroughly cleaning a car in an attempt to make it look

new.
Disinfectant. A chemical substance is used to kill harmful germs and bacteria.

Hydrofluoric acid. An aqueous solution that attacks silica, it is used in finishing and

detailing glass.

D. Research Methodologies

The research methodology discussed the sources of data and how the

information related in the study.

The proponents gathered information through the use of primary and

secondary data. The primary data were gathered through survey wherein the

researchers determined the behavior of the target market in relation to their lifestyle

in terms of availing car wash services. The survey was conducted to compute the

demand and supply analysis.

The secondary data were used to identify the benefits of the service in the

community and in every car owner. The information was gathered from the books,

magazines and other articles from internet.

The feasibility study took place in Barangay Sambat of Tanauan City,

Batangas and other barangays near the vicinity of the business including Barangay

Natatas, Barangay Santor and Barangay Talaga and Sto. Tomas

Batangas and Malvar, Batangas.

E. Review of Related Literature

Local Literature

Seeing a huge market potential in the midst of the booming automobile

industry the researchers decided to venture into a car wash business.

 CHAPTER 2

Market Feasibility

General Description of the Market

The car wash on call will be based in Sambat, Tanauan City. This area has a

number of benefits in terms of the market that will provide for the business. Over

50% of the household’s immediate neighborhood earn more than 6,000 monthly.

Many people in the neighborhood own a car and each car owners falls within the

target market.

The target market of the proposed business are the following :

1. Private car owners- the car owners used any kind of automobile

privately or for own used.

2. Public car owners – the owners of the cars who pick up passengers.

Survey Results of the Target Market

Table 2.1. Age of the Respondents

Age Frequency Percentage

18-25 50 20%

26-35 72 28.8%

36-45 79 31.6%

46-55 39 6.33%

56-65 10 4%

Total 250 100%

Table 2.1 The table shows that 20% of the respondents fall under the age of 18-25,

28.8% is at the ages of 26-35, 31.6% falls under the age of 36-45, 6.33% is in
between ages of 46-55, and the 4% falls under 56-65 ages. Table 2.2 Frequency of

the Gender of the respondents

Gender Frequency Percentage

Male 168 67.2%
Female 82 32.8%
Total 250 100%

Table 2.2 The table shows the percentage of the gender of the respondents, wherein

67.2% of the respondents are male and 32.8% are female.

Table 2.3 Frequency of time

Frequency of carwash Frequency Percentage

Twice a week 73 29.2%
Once a month 76 30.4%
If they like to do so. 71 28.4%
Others (e.g needed) 30 12%
Total 250 100%
Figure 2.3 The table above tells how often do the respondents clean their car.

The respondents wash their car if they want to (28.4%), other reason(if needed),

(12%), twice a week (29.2%), once a month (30.4%).

Table 2.4 Frequency of the go to a carwash

Did the respondents go to respondents Percentage

car wash
Yes 153 61.2%
No 97 38.8%
Total 300 100%
Figure 2.4. The presented data above shown how many of the respondents go

to a car wash center, wherein 61.2% of the respondents go to a car wash, 38.8% is

not willing to go to a car wash.

Table 2.5 Frequency of how often the respondent go to a carwash

How often the Respondents Percentage

respondents go to
 carwash
1-3 times/week 79 31.6%
4-6 times/week 80 32%
Others(monthly) 91 36.4%
Total 250 100%

Figure 2.5 The presented data shows how often does the respondents go to a car

wash center. 31.6% of the respondents go to a car wash center one-three times, 32%

go to a car wash at least four-six times, and 36.4% avail the carwash service

monthly.

Figure 2.6 Frequency of reason

Reason why the respondents percentage

respondents go to
carwash
No time 93 37.2%
They don’t want to clean 78 31.2%
Other reasons 79 31.6%
Total 250 100%
Figure 2.6 The data shown above representing the reasons why some of the

car owners go to a car wash center. It is mainly because they don’t have time

(37.2%), they don’t want to clean their car (31.2%), they have other reason ( e.g

laziness) (31.6%).

Table 2.7 Frequency of the prefer services

Prefer services Respondents Percentage

Wash only 82 32.8%
Wash and wax 78 31.2%
Wax and interior detailing 44 17.6%
Wash wax and interior detailing 46 18.4%

Total 250 100%

Figure 2.7 The interpreted data shows the common services avail by the

customer is wash only (32.8%), followed by wax and interior detailing services
(17.6%), next is wash and interior detailing (18.4%) and lastly the wax and wash

services (31.2%).

Table 2.8 Percentage of the respondents patronize the car wash

Percentage of people Frequency Percentage

who will patronize car
wash on call
Yes 137 54.8%
No 113 45.2%
Total 250 100%

Figure 2.8 The interpreted data determined if how many among the

respondents are willing to patronize the car wash service.54.8% of the respondents

are willing to patronize the new car wash service and 45.2% of the respondents are

not willing to patronize the new car wash center.

Supply Analysis

The following are the well-established car wash business in the locality that

supply car wash services to the project client.

Table 2.9 Number of Car wash in Local

Area Car wash

Tanauan 15
Malvar 6
Sto.Tomas 5
Total 26

Considering the data presented, congruent to the number of population of the car

wash services, the availability of car wash industries is insufficient to supply the

needs of the community. The table presents that in area of Tanauan there are 15 car
wash services, in Malvar there are 6 car wash center and in Sto. Tomas there are 5

car wash services with the total of 26 car wash center in the local.

Demand Analysis 40

Table 2.10: Projected Demand for the Next Five Years

Nature of Competitors

The propose business has direct competitors These are Petronas lubricants

auto care, JIPN audio and car spa, Auto avenue and Clean City. Our business is

similar to the other services of the businesses stated above but our business is

different in terms of services, our proposed business is name as Carwash on Call.

Direct Competitors

Table 2.11Competitors of the Business:

Competitors Description Services

Petronas auto care Located at Brgy. Santor,  Car wash
Tanauan City. They had  trading services
enough parking space for
the customers who are
waiting.
JIPN audio and car Located at Sambat,  Under wash
spa Tanauan City. They had  Engine wash
good choice of location.  Body wash
Customers can easily  Under coat
notice that there is a car  wax
wash and they had mini
restaurant upstair.
Auto avenue Located at Brgy. 2,  Engine wash
Tanauan City. They had a  Hand wax
cool place where  Glass detail
customers get  Engine detail
comfortable while  Paint protection
waiting. The location is  Degriming
nearby other
 Interior/exterior detail
establishment.
Clean city Located at Mabini  Body Wash
avenue, Tanauan City.  Car Detailing
The location is not easy
to recognize.
 Competitive Position

Table 2.12 Shows the information of each competitors

Competitors
Services Location Facilities
Petronas  Car wash  Barangay, Santor,  Parking area
auto care  trading Tanauan City  Cleaning are
services

JIPN audio  Under wash  Barangay,Sambat,  Mini

and care spa  Engine wash Tanauan City restaurant
 Body wash area
 Under coat  Cleaning
 Wax area

Auto avenue  Engine wash  Barangay 2 Tanauan  Cleaning

 Hand wax City area
 Paint  Waxing area
protection
 Degriming
 Detailing

Clean City  Body Wash  Mabini Avenue,  Cleaning

 Car Detailing Tanauan City Area

Car wash on  Body wash  Barangay, Sambat,  Service

Call  Engine wash Tanauan City Area
 Interior and  Workers
Exterior Area
Detailing  Office
 Paint  Comfort
Protection room
 Waxing
 On call
carwash
Comparative Pricing

Table 2.13The pricing of each car wash business is depending on the size of

the vehicles.

Body wash Engine Interior/exterior Waxing Paint

wash detailing protection

Petronas 70-130 - - - -

auto care pesos

JIPN audio 60-140 - - - -

and care pesos

spa

Auto 80-140 200-300 150-250 pesos 100-300 -

avenue pesos pesos pesos

Clean City 60-130 150-300 150-220 pesos 100-290 150-300

pesos pesos pesos pesos

Car wash 70-120 180-300 160-250 pesos 100-300 180-300

on Call pesos pesos pesos pesos

Marketing Strategies

Competitive Edge of Car wash on call

 Only a car wash in Tanauan who will be launching new style of service using

technology by means of cellphone.

 Focusing on the needs of car wash target market by getting feedback to drive

the business more competitive.

  Converging to car wash strength by innovating the market strategy of the

business.

Advertising

Gaining the interest of the customers is the main target to grow the business.

The most useful that could be apply in outdoor advertising are flyers and tarpaulins.

This will help the researchers recognize the car wash.

Tarpaulin

On call car wash ???

Creating tarpaulins and posting it along the highway

near the location and exit points will give as additional

Located at sambat Tanauan.

Please contact :0948-345-6789 chances to get the attention of the motorist. Where the

customers can find a new carwash business in Tanauan

Services:
area which is different from any type of carwawsh.
Detailing

Body wash
The informationabout carwash on call and the services
Waxing. Etc…

can be seen in the tarpaulin.

Fifteen tarpaulins are provided. Each tarpaulin cost ninety pesos based in Atisor.

The tarpaulins are good for 1 year.

Brochures

Creating a brochures and giving it to every car owners along the

highway near the location will give as additional chances to get

customers. The brochures contains the different services of the car

wash, the working hours and the contact numbers of the business.

Quantity : 250 pieces, good for 1 year

Price: 2 pesos each, based in atisor

Area of Dispersion

-Barangay Sambat

Public cars -Barangay Natatas

Carwash -Barangay Santor
on Call Private cars -Barangay Talaga

-Other places (e.g.

Tanauan, Malvar
and Sto.tomas)

The target market comprise of private car owners and public car owners. Its

major customers are all the owners of the cars willing to patronize the car wash on

call business. This has the capacity to avail the new services of a car wash service. In

addition is a continuous expanding of customers since the car industry is growing.

Channel of Distribution

Car wash on Call

Private car owners Public car owners

Based on the surveys that the proponents conducted, every car owners . The private

and public car owners are the one who are willing to avail the services.

Mode of Transportation

ON CALL The car wash on call is located at Barangay Sambat,

Tanauan City. The proponents target market are car

owners. Since we’re the one who pick up the car, it

will be easy to car owners but then our business will be

find nearby the new municipal hall of Tanauan.

Pricing

Table 2.14 Pricing is depending on the size and services that the car owners wants to

avail.

Services Pricing Kilometers

 Body wash Small- 70 pesos 1km-5km is the starting
Medium- 100 pesos amount given at the
Large- 120 pesos pricing row.
There is an additional of
10.00 peso for every 1
kilometer.

 Engine wash Small- 180 pesos 1km-5km is the starting

 Interior and Exterior
Detailing
 Paint Protection
 Waxing
Medium- 250 pesos amount given at the
Large-300 pesos pricing row.
There is an additional of
50.00 peso for every 1
kilometer
Small- 1000 pesos 1km-5km is the starting
Medium- 1200pesos amount given at the
Large- 1500 pesos pricing row.
There is an additional of
150.00 peso for every 1
kilometer.
Small- 150 pesos 1km-5km is the starting
Medium- 250 pesos amount given at the
Large- 350 pesos pricing row.
There is an additional of
100.00 peso for every 1
kilometer.
Small- 180 pesos 1km-5km is the starting
Medium- 249pesos amount given at the
Large- 300 pesos pricing row.
There is an additional of
60.00 peso for every 1
kilometer.

Since there is a possibility that we can encounter a customer where his/her

place is too far from the location, we provide flags in such barangay’s, the flags will
be the basis of how much cost will be added to the regular cost of the service. The

following are the color of flags provided for the barangay’s:

SWOT Analysis

Strengths Weaknesses

No extensive training required No established client based

Flexible working hours People can do it by themselves

Flexible business structure, no physical

based point

Opportunities Threats

Large target market Other mobile businesses

Flexible working hours Perception of water wastage

Flexible business models for expansion Established automatic car washes

Potential to expand to wash more than Business model can be easily replicated

just a cars by competitors

 CHAPTER 3

TECHNICAL FEASIBILITY

Service Description

For the easiest and convenient way for the customer we proposed an On Call

Car Wash. Car wash on call is a different kind of car wash because the customers

do not need to go in a car wash center instead the car wash center is the one to go

to his/her location. The customers must need to call to the service center, say

what service they want to avail and is his/her location. Then afterwards the

attendants rather the driver will go through his/her location to pick the car or

wash the car into the customers place depending on the demand of the customers.

Car wash on call offers affordable prices but gives high quality of service. The

price of different services is depends how far the customer is.

The proposed business offered different services, each services are as follows:

Waxing and vacuuming

-Most car wash solutions claim to have wax in them, however the amount

they contain is usually not enough to offer significant protection to your vehicle. It is

therefore recommended that a "hard" wax be used. These can come in a variety of

forms, including pastes, liquids, and sprays. If water applied to your paint forms very

large droplets or does not bead at all, it should be waxed. A general rule of thumb is

to apply wax when the beads become larger than 2.5 centimeters (1 in).

- the vacuuming process includes vacuuming all mats, foot wells, seats and boot

of the vehicle. We also offer a steam cleaning service for the removal of stains and in

ground dirt and sand.

  Body wash with vacuuming

- Body wash is a process where the external part of the car is about to

clean, then after washing the external part of the car vacuuming of the

internal is to be followed.

 Engine wash

–remove any debris trapped in your grill, hood, or vent openings.

 Interior and Exterior Detailing

-a deep cleaning of the whole interior cabin.

- cleaning and restoring or exceeding the original condition of the surface of

the car's finish (usually a paint with a glossy finish), chrome trim, windows,
wheels, and tires, as well as other visible components on the exterior of a
vehicle.

Service Process

After the driver pick up the car of the customer the service process will be

followed for cleaning the car.

Vacuum
Preparation Pre-wash Rinse
Process

Clean Windows Wash Service Wheel wash

Detailing Drying Process

Tire shine

Inspection
 Once the customer was called in the car wash on
call, he/she will assist by the operation manager.
The operation manager will ask if what service will
the customerwants to avail.

Then, afterwards the driver will pick up the car,

if where the customer is.

Next, when the driver already bring the car to

the service center rhe washer will start cleaning
the car depending on the services that the
customer avail.

Lastly, once the washer is finished in cleaning the

car, the driver will bring back the car to the owner,
Then the owner will pay the service fee after he/she
received his/her car.

Figure3: The figure shows the process to be followed to provide high quality

service.

Each service process has the different functions to give the high quality of the

service to meet the customer’s expectations. Each functions are as follows:

Preparation- The most important part is preparing the vehicle for washing. At this

process the driver rather the washer will ready the vehicle for cleaning.
Vacuum process- the vacuum process includes vacuuming all mats, foot wells, seats

and boot of the vehicle. We also offer a steam cleaning service for the removal of

stains and in ground dirt and sand.

Pre-wash Rinse- A high pressure rinse effectively removes all harmful surface dirt

prior to the wash process. This important step eliminates harmful contaminants from

your vehicle.

Wheel Wash- Our wheel wash process effectively cleans grime and brake dust from

your wheels. This leaves your vehicle with sparkling clean rims.

Wash Service- All vehicles washed by Soap are done so by HAND only using clean

quality Mitts and Shampoos. We spend the time to ensure a complete and thorough

wash paying close attention to the hard-to-reach areas. You can also rest assured we

always exercise the greatest care of your vehicle.

Detailing- is generally broken down into two categories: exterior and interior, or

cabin. There are products and services that focus on these two areas specifically:

Exterior detailing involves cleaning and restoring or exceeding the original

condition of the surface of the car's finish (usually a paint with a glossy

finish), chrome trim, windows, wheels, and tires, as well as other visible components

on the exterior of a vehicle.

Interior detailing involves a deep cleaning of the whole interior cabin.

Drying Process- Our drying process involves the use of quality chamois and

microfiber cloths to provide a dry shining vehicle.

 Clean Windows- We use this process to effectively clean your windows. Not only

does this provide a sparkling finish but it also enhances your safety by allowing you

to see more clearly.

Tire Shine- We uses a long lasting protective shine for your tires to match your

vehicle. It gives your tires that “new” look.

Inspection and Departure- After shining the tire of the vehicle, the washer will

inspect the car to make sure it is 100% clean and dry. After the inspection the driver

will turn back the vehicles to the owner’s area.

Labour Requirements

Position Quantity Salaries

Operation Manager 1 P5,600 monthly

Attendant/ Drivers 3 P5,040 each monthly

Service Schedule

Daily Duties

7:00-7:30 a.m. Employee’s call time and attendance

7:30-8:30 a.m. Morning preparation and cleaning

8:30 a.m. -12:00 noon Working hours

12:00 nn-12:30 p.m Lunch break

12:30p.m -5:30 p.m. Working hours

5:30-6:30 p.m. Cleaning hours

6:30-7:00 p.m. Closing hours

Table 2: Service Schedule

Location Map

Car wash on call

Call
Car wash on call is located at Brgy. Sambat, Tanauan City, the location is easily

accessible via South Luzon Expressway (SLEX).

Size and Type of Building

Most important part in the proposed business is to locate a space that can fit

at least 3-5 cars. So, the proponents decided to buy a 300 square meter lot, to build a

one-story building that serves as an office and service area.

 2.5.x 2m

12.5m x 20m

5.15m x 4m

5.15m x 3.5m

Plant Layout

Building and Facilities

The proponents of the proposed service business decided to buy a 300 sq. m.

lot inclusive of a small room to be build that will serve as an office of the service

business. The area will be developed by constructing one office, comfort room for

male and female, working area and service area.

Amenities and Facilities Purpose
Office Office area is provided for the managing
partner. The office will also be a place
where the meeting will be held and a place
where all the files are stored.
Workers area It is provided for the workers. It is where
the workers can take a rest during break
time.

Service area An area where the services will be done.

Comfort room Provided for the workers.

Furniture’s and Fixtures

Description Quantity Supplier Purpose Unit Cost Total Cost

(Php) (Php)

Office table 2 Lazada It is needed to 1, 750.00 3,500.00

conduct office
work
efficiently and
comfortably.
Office chair 6 Lazada The 3 chairs 870.00 5,220.00
will be inside
the office and
the other is for
the workers
area.
File cabinet 1 Lazada It is where the 2,290.00 2,290.00
documents will
stored.
Air conditioner 1 Lazada For the 15, 600.00 15,600.00
convenience of
managers
office
Television 1 Lazada For the 5,000.00 5,000.00
entertainment
of the worker
if ever there no
customer yet.
Light 10 Lazada Used to easily 1,200.00 12,000.00
see things.
Ceiling fan 1 Lazada For the 1,025.00 1,025.00
working area
Waiting chair 1 Lazada For the 1,100.00 1,100.00
working area
for the
workers.
Total 28,835.00 45,735.00
 Equipment’s

Equipment’s Quantity Supplier Purpose Unit cost Total cost

Pressurized Lazada used to remove
electric washer 1 loose paint, mold, 5945.96 5945.96
grime, dust, mud,
and dirt from
surfaces and
objects such as
buildings, vehicles
and concrete
surfaces.
Vacuum with 1 Lazada preserve the 7000.00 7000.00
blower pristine condition
of your vehicle by
using the Mon love
Wet and Dry
Portable Car
Vacuum Cleaner.
Able to de-clutter
your rider, this
portable device
will surely help in
maintaining the
prime condition of
your car for a good
number of years.
Air compressor 1 Lazada It keeps a mini air 8000.00 8000.00
compressor in the
trunk of a car or a
camper.
converts power
(using an electric
motor, diesel or
gasoline engine,
etc.) into potential
energy stored in
pressurized air
Pressure hose 1 Lazada carry fluids from 3800.00 3800.00
one location to
another.
Water Drums 5 Lazada Used in storing a 850.00 4250.00
 water.
Pails/buckets 3 Lazada used for a variety 20.00 60.00
of fluids and
flowable materials.
Chamois towel 3pcs. Lazada used for drying and 50.00 150.00
buffing vehicles,
such as cars and
vans, after
washing.
Car sponge 10 pcs. Lazada Used for cleaning 20.00 200.00
the surfaces of the
car.
Car shampoo 4 liters Lazada Use in cleaning a 315.00 1260.00
car, instead of
soap.
Car wax liquid 3 liters Lazada Used to primarily 669.75 2009.25
protect your finish
and secondarily to
enhance
your car's shine
Tire black 3 liters Lazada Used to remove 350.00 1050.00
break dust and
brighten the black
rubber of the tire.
Car polisher/shine 1 Lazada Used to brighten 2480.00 2480.00
the color of the car.
Total: 29,500.71 36,205.21
Office Supplies

Description Quantity Supplier Purpose Unit cost Total

(Php) cost
(Php)
Official receipt 10 bundles The 10.00 100.00
customers
received a
receipt after
payment.
Ball pen 1 box Waltermart It will be used 60.00 200.00
in listing and
writing an
important
documents
about the
business.
Record book 2 pcs. Waltermart A book where 100.00 200.00
the number of
customer
avail services
each day and
the availed
services by
the customer
Total 500.00

Utilities

Utilities Source Uses Cost

Electricity We use it for Electricity cost is

lighting, running 7.64/kw if the business
the appliances and consumed 14kwper day
other machineries. the business will
2,994.88/month

Water It is use to wash and Water cost is 22.30/

 clean the vehicle. cubic meter if we the
business consumed 5
cubic meter per day the
business will pay
3,122.00/month

PLDT Telephone can 2999/month is a fixed

serve a business by amount of payment.
making
communication
quick and
convenient.
Total Utilities-
7665.88/month

The computation of above cubic meter and kilowatts are based from the interview
to the competitors.

Waste Disposal

Since the proposed business is car wash it will be having a waste. The

business will provide a proper disposal waste.

For the bottles :

 We will provide drums for the used bottles.

 Sell the used bottles in the junkshops.

For the water waste :

 We will provide drainage to the service area.

 For every location of the car there is a provided drainage then the water will

go to the pit we provided.

For garbage waste:

 We will provide trash can.

 Each trash will be segregate

CHAPTER 4

MANAGEMENT FEASIBILITY

Nature and Name of the Business

Car wash on call is a car wash service where the clients will be offered

different kinds of services for beautifying or cleaning their car. The proposed

business will be called car wash on call. The name came from the proponent’s

objective which is to be unique.

Types of Organizations
 Car wash on call service center would be legally recognized organizational

entity existing within the country. It would be a general partnership type of business

entity in which partners shares the profits or losses of the business.

Types of Business Organization

Techno Restaurant is a partnership type of business organization.

Articles of Partnership

1. Name of the partnership.

2. Location of the partnership.

3. Names, citizenship, and residences of the partners.

4. Term of years of operating.

5. Purpose of creating the partnership.

6. Capital contribution of the partners.

7. Division of profits and losses among partners.

8. Assigning General Manager who will take in charge of the management of

the affairs of the partnership.

Requirements for Registration

The partner must comply the different requirements so that the business will

become registered and secured.

a. Secure a Certificate of registration of the partnership from the

Securities and Exchange Commission (SEC). Registration fee is

P500.

b. Register with the Bureau of Internal Revenue (BIR) before the

commencement of the business operation. There will be an annual

 registration fee (PHP 500.00), Certification fee (PHP 15.00) and

Documentary Stamp Tax (PHP 15.00)

c. Register the employees with the following agencies:

Department of Labor and Employment (DOLE) – register the business in

observance with the provision of the labor code.

Requirements:

1. Registration form DOLE-BWC-IP-3 in three copies to the Regional

Labor Office or authorized representatives

2. Attach layout plan of the place of work floor by floor, in scale of

1:100 meters white or blue print showing all the physical features of

the workplace including storage, exits, aisles, machinery, clinic,

emergency devices and location.

Social Security System (SSS) - a government agency that provides

retirement and health benefits to all employers and employees. To enroll for

membership with the SSS the documentary requirements are the following:

1. List of Employees, specifying their birth dates, positions, monthly

salary and date of employment; and

2. Articles of Incorporation, By-Laws and Certificate of Registration

with the Securities & Exchange Commission (SEC) or the Certificate

of Registration with the Department of Trade and Industry (DTI).

Upon submission of the requisite documents, the employees shall undergo a

seminar, which shall be scheduled within one (1) week. At the end of the
 seminar, the Certificate of Membership shall then be released. The minimum

SSS monthly contribution is PHP 104.00

Philippine Health Insurance Corporation (Philhealth) – the employers are

required to register their employees with Philhealth to enable them to provide

social health insurance coverage to their employees. Submit the following at

any Philhealth Office:

• Employer Data Record or ER1 Form (in duplicate)

• Business permit/license to operate and/or SEC registration.

After processing, the employer will be issued the following:

• Philhealth Employer Number (PEN) and the Certificate of

Registration

• Philhealth Identification Number (PIN) and Member Data Record

(MDR) of registered employees membership and payment of PHP

360.00 inclusive of one quarter premium, registration fee and card.

d. Registration of the business in Tanauan City Mayor’s Office:

 Obtain a barangay permit/clearance

 Obtain a Mayor’s permit to operate at the Licensing Section of the

City or Municipality

 Obtain Community Tax Certificate (CTC) from the City Treasurer's

Office (CTO) with a payment of PHP 500.00 for CTC and another

PHP 500.00 for building permit.

Capitalization
 The total capital investment for the business would be 1,000,000.00 pesos.

This investment as shown below would be shared equally among the two partners.

The share of each partner comes from their personal money, from their family and

relatives.

Name Citizenship Types of Partner Contribution

Bantatua, Voltaire Filipino General Partner 500,000.00

Migo Roselle Filipino General Partner 500,000.00

TOTAL 1,000,000.00

Table 5: Amount of Shares

Percentage of shares
Migo Bantatua

50% 50%

Figure 4: Percentage of Shares

The graph shows the percentage on how the partners contributed to established the

proposed business. The graph represents that the business partners contribute fairly.
General Goals and Objectives of the Business

I. Vision

Car wash on call commits to serve its valued customers the good

quality of services to ensure that they would be satisfied to the services.

II. Mission

Car wash on call’s mission is to make the business known in the

community and in the country. And to become highly competitive with other

car wash business.

Organizational Structure

This organization structure shows a diagram presentation of task allocation,

coordination and supervision, which are directed towards to the achievement of the

business.

Managing
Partner

Operation
Manager

Attendants/
Drivers
Duties and Responsibilities of the Employees

The employees of the business was assigned with different duties and

responsibilities.

Managing Partners. The partners who own the business. The one who are

responsible to all the problems of the business.

Operation Manager. A manager who has the responsibility for business and for

organization. The one who are responsible in operation of the business and

monitoring the washers.

Attendants. The one who are responsible in attending the customers need. The one

who are responsible for taking care of the vehicles.

Drivers. The one who are responsible in picking up the customers car and the one

who are also subjected to take good care of the vehicle.

Requirements and Qualification of the Employee

Each employee need different requirements and qualification to comply to be

qualified in the position they are applying. The requirements and qualifications need

to comply are as follow:

Position Requirements Qualification

  Resume  Must be a graduate

 Application letter of any business

 Diploma course

 Transcript of record  Male or female (20

 Police and NBI years old above)

clearance  Have an excellent in

Managing Partner  Medical certificate oral and verbal

 SSS, Pag-ibig, communication

Philhealth  Must have a

leadership skills

 Must be a computer

literate
Operation Manager  Resume  Must be a graduate

 Application letter of any business

 Diploma course

 Transcript of record  Male or female (20

 Police and NBI years old and

clearance above)

 Medical certificate  Have an excellent in

 SSS, Pag-ibig, oral and verbal

Philhealth communication

 Must have a

leadership skills

 Must be a computer

literate

 Resume  Male, must know

 Application letter how to drive

 Police and NBI  Must be 20years old

clearance and above

 Medical certificate  Must have a

Attendants and Drivers  Driver’s license driver’s license

 SSS, Pag-ibig,  Physically fit, must

Philhealth have a sense of

 urgency

Recruitment and Hiring Policy

Recruitments is just the first step before hiring an employee. But once the right

person is in the right place, the proponents will conduct interviews, screening and

selecting an employee that will become a part of the business.

Recruitment Screening Hiring

 In case of any  Review and  Upon passing the

vacancies or Screening interview with the

position need to  Requirements on the manager, training will

be filled any position submitted by the follow:

employee can applicant must be complete

recommend for further information and a. Experienced hands

someone he/she verification. on job

knows. But  Check the applicants form if b. Test his/her

before he/she is qualified. interpersonal skills

recommending  Call the reference persons

they need to identified.

consider first the  Selection and

qualification. Interview
  After filing an  Call the applicant who will

application form be set for interview.

the employers  Make an interview

must review the regarding

form as well as a. Regarding the content of

the resume and other work

recommendation related

letter. b. Check his/her level of

confidence towards work.

Promotion Policies

Before promoting an employee, the manager must consider the employees good

record in dealing with his/her customers, co-workers and in his works. The following

are the requirements for promoting an employee.

 He/she has been receiving good feedback from the customers

 He/she performs well

 He/she really devoting him/herself in work

 He/she have been recommended by the manager

 He/she has no record of absenteeism

Termination of the Employee

The proponents provides six potentially fair reason for terminating the

employee. The possible reasons for termination are as follows

 An intentional act of fraud or theft in any material own by the

business

 International disclosure of company’s confidential information

contrary to company policies

 Intentional engagement in ant competitive activity which would

constitute a breach of your duty of loyalty and obligation under

agreement

 In human and vulnerable treatment to his/her co-workers even with

the customers

 Use or possession of alcohol or drugs during working hours

 Tardiness/ high absenteeism

Compensation Scheme

Employee Quantity Monthly Yearly Salary 13th month

Salary pay

(60%)

Operation
Manager 1 5,600 67,200 3,360

Attendants/

Drivers 4 5,040*3= 15,120*3= 3,024*3=

15,120 45,360 9,072

TOTAL 7 20,720 112,560 12,432

Benefits and Privileges of the Employee

In order to be the best, we, the proponents will take care of our team not only

providing their monthly salary but instead our labor will be given benefits and

discounts. Those benefits and discounts are as follows:

1. Health and Wellness

 Philippine Health Insurance

 Social Security System (SSS)

-Short term disability

-other reason that can be resulted in a financial burden

2. 13th month pay

3. Discounts

 Free car wash

 10% discount on car detailing

Personnel Profiles

1. Operation Manager

 Responsible for operational efficiency of the business and

monitoring the services

  Supervise the correct procedure of cleaning and the usage of

the material and equipment

 In charge of maintaining high level of services

 Responsible for accepting the payments through cash or card

provided by the business

 Responsible to report to the managing partner all about the

business and the workers

 Paid in a hourly wage.

2. Attendants

 Responsible in cleaning the car based on the services rendered

by the customers

 Flexible in taking care of the car

 Provide excellent customer services

3. Drivers

 Responsible in picking up the car of the customers

 Ensure the safety of the cars

 Responsible for checking the vehicle for pre-existing damage

and notify the owner.

Health and Safety of the Employee

All the workers have the right to be at home each day safe with their

family. With that preventing work-related illness and injury is the most important job
at any workplace in our own establishment we also implement health and safety

measures. And this includes the following:

 Provide each personnel a safety uniform

 Allow employees to have break time and rest

 The employees are provided hand sanitizers and other anti-bacterial

for hygiene purposes

 Make the workplace safe

 Make sure that all the materials are handled, stored and used safely

 Provide adequate first aid facilities

 Set up emergency plans

 Take precautions against the risks caused by flammable or explosive

hazards electric equipment

 Provide health supervision as needed

 Ensure that right warning signs are provided and look after.

Personnel Uniform

Every personnel are obliged to wear their uniform during working hours, so, the

partner provides a uniform for the workers.

Employee’s Uniform Description

 The uniform of

the managing

partner is

Managing Partner provided. This

composed of

polo shirt that

must be wear

during duties and

working hour.

The uniform of

the operation

manager is also

Operation provided. This

Manager composed of

polo shirt that

must be wear

during duties and

working hour.

The uniform of

the drivers and

 attendants are

also provided.

This composed

Drivers and of

Attendants t-shirt that must

be wear during

duties and

working hour.

The employees

should also wear

gloves during

duties.

Chapter 5

Financial Feasibility

Initial Capital Requirements

The capital of the proposed business Car wash on Call is divided with the (2)

partners. The illustration below will show the contribution of each partner and also

the loss and profit percentage of each.

CAPITALIZATION
PARTNERS AMOUNT OF PERCENTAGE

CONTRIBUTION

BANTATUA, VOLTAIRE 500,000 50%

MIGO,ROSELLE 500,000 50%

TOTAL 1,000,000 100%

Amount of Contribution

Bantatua
Migo

PROJECTED COST

Property, Plant and Equipment

Land 450,000

Building 254,350

Furniture & Fixtures,

Equipment 85,075 789,425

Working Capital (Current Asset)

Supplies 6,000 6,000

Expenses

Salaries & Wages 112,560

Permits & Licenses 13,455

Pre-Operating Expense 5,800 131,815

TOTAL PROJECTED

COST 927,240
FINANCIAL ASSUMPTION

F.A. Fig. 4a Average Income per day / per week / per month / per year

According to the survey conducted by the proponents’ 65% of the 300

respondents are willing to avail the new car wash service. With these results the

proponents come up with the following projected data:

195 x 70 (Average Income) x 15% (Market Share) x 8hours = ₱ 5,460

DAILY 5,460 65*70*15%*8

WEEKLY 38,220 65*70*15%*8*7

MONTHLY 152,880 65*70*15%*8*7*4

YEARLY 1,834,560 65*70*15%*8*7*4*12

To get the weekly income, the daily income is multiplied to 7 days. Then the weekly

income is multiplied to 4 to get the monthly income of the business. Then the

monthly income is multiplied to 12 to get the yearly income.

There is a projected increase of 20% in the yearly income of the business.

This will be based either on the increasing number of customers. The projected

percentage increase of the yearly income will be added to the total income to get the

income for the next year. As the population increases yearly, the demand also

increases.
F.A Fig.4b COMPUTATION FOR SALARIES AND WAGES

For the annual SSS and Phil health, the proponents based their contributions

on the salaries and wages they pay to the employees and have a percentage. 3% of

their salaries and wages would be on their SSS and Phil Health. There is no increase

in the salaries and wages of the employees since the business just got started.

POSITION No. of Daily Monthly Yearly Yearly Yearly

Employee employee SSS &

bonus Philhealth

OPERATION 1 200 5600 67200 2486.4 621.6

MANAGER

ATTENDANTS 3 540 15120 181440 7459.2 1864.8

TOTAL 740 20720 248640 9945.6 2486.4

F.A Fig. 4c COMPUTATION FOR UTILITIES EXPENSE

Utilities Expense Monthly Yearly

Electricity 2 994.88 35 938.56

Water 7042 84504

Communication 1549 18588

F.A Fig. 4d COMPUTATION FOR ADVERTISING EXPENSE

 Advertising Expense Quantity Price Total

Tarpaulin 10 180 1800

Flyers 200 5 1000

Total 2800

For the year 2 to 5, the proponents an increase of 3%. It increases yearly since the

business just started and are still promoting the business to their target market

F.A Fig.4e COMPUTATION OF SUPPLIES EXPENSE

The proponents assumed that 75% of the supplies were used and 25% were

not used.

75% - 4,500 used supplies

25% - 1,500 unused supplies

For the year 2 to 5, the business’ supplies expense will increase 3%.

YEAR 1 6000

YEAR 2 6,180

YEAR 3 6,365.41

YEAR 4 6,556.36

YEAR 5 6,753.05

F.A Fig.4f COMPUTATION FOR REPAIR AND MAINTENANCE EXPENSE

 For the year one, the proponents assumed that there’ll be no expense for the

repair and maintenance since the building installations and repair were new.

For the year 2, the table below show the expense for the repair and

maintenance. For the year 3 to 5 there’ll be an increase of 2% since there may be

some repairing to do.

Carpenter/Repair 5 000

Technicians/Electricians 3 000

Installation 3 000

TOTAL 11 000

F.A Fig.4g COMPUTATION FOR PERMIT AND LICENSES

These are the necessary permits & licenses before the business can fully

operate.

Mayor's Permit 500

Business Permit 500

SEC 540

BIR 4 515

DTI 500

Building Permit 400

Certificate of Tax Registration 1 100

Registration Fee 500

Special Books of Account 400

 Community Tax Certificate 500

Printed Receipts & Invoices 3 500

Zoning Clearance 250

TOTAL 13 205

F.A Fig.4h PRE-OPERATING EXPENSE

Pre-operating Expense is only on the beginning of the operation of the business.

Pre-Operating Expense

Feasibility Making 5 800

TOTAL 5 800

F.A Fig. 4i COMPUTATION FOR DEPRECIATION EXPENSE

ASSETS COST LIMITED DEPRECIATION

USEFUL LIFE

Carwash machineries and 36,205.22 5 7,241

equipment

Television 5,000 5 1,000

Air conditioner 15,600 5 3,120

Ceiling fan 1,025 5 205

Office table 3,500 5 700

Office chair 3,480 5 696

File cabinet 2,290 5 458

waiting chair 1,100 5 220

Building 254,350 20 50,870

TOTAL 322,550.22 64,510

Chapter 6

Socio-Economic Feasibility

This chapter enables the proposed business to give contribution to the

economy for establishing and operating this new business.

Government.The proposed business will always pay the taxes subjected to it

that will be collected by bureau of internal revenue for giving contribution to

increase the revenue of the government to used it in building roads and public

schools, paying the debt of our country, and etc.

Community.Establishing this new business will give the community the

opportunity having a stable job in supporting their financial needs and

presenting new taste of business to satisfy the need of people.

Environment. The proposed business helps our environment maintain its

beauty by practicing and doing the steps on how to dispose the waste used by

the business like segregating biodegradable to non – biodegradable for

joining the campaign of the department of environment and natural resources

on protecting the environment.

Economy. It will lessen the rate of unemployment within the area of the

proposed business since they will hire people to work with them. The

proposed business can also help the economy by paying taxes to pay the debt

of our country to other international country with that it will lessen the debt

of our country and the economy will tend to be in good condition.