SPIN CITY

Entrepreneurship Business Plan

AMINATH AZMA (S20011893)

ZIKURA INTERNATIONAL COLLEGE
15.07.2021
 CONTENT

INTRODUCTION TO SPIN CITY..........................................................................................................2

MARKET ANALYSIS OF SPIN CITY...................................................................................................3
OVERALL MARKET..........................................................................................................................3
MICRO AND MACRO ENVIRONMENT ANALYSIS.....................................................................3
MARKET SEGMENTATION AND TARGET MARKET OF SPIN CITY....................................5
THE COMPETITOR ANALYSIS OF SPIN CITY................................................................................6
KEY COMPETITORS OF SPIN CITY..............................................................................................6
BARRIERS TO ENTRY TO MARKET..............................................................................................6
COMPETITIVE ADVANTAGE OF SPIN CITY...............................................................................6
DEVELOPMENT AND PRODUCTION PROCES...............................................................................7
PRODUCTION PROCESS OF SPIN CITY.......................................................................................7
RESOURCE REQUIREMENTS FOR THE COMPANY.................................................................7
QUALITY ASSURANCE OF SERVICES..........................................................................................8
MARKETING PLAN OF SPIN CITY.....................................................................................................8
OVERALL CONCEPT AND ORIENTATION OF THE COMPANY.............................................8
MARKETING STRATEGY AND RESOURCES OF THE COMPANY.........................................8
SALES FORECASTS FOR SPIN CITY..............................................................................................9
FINANCIAL PLANS OF SPIN CITY...................................................................................................10
FINANCIAL STATEMENTS............................................................................................................10
FINANCIAL RESOURCES...............................................................................................................12
FINANCIAL STRATEGY..................................................................................................................12
ORGANIZATION AND MANAGEMENT / HR STRATEGY OF SPIN CITY................................13
KEY PERSONNEL RESOURCES....................................................................................................13
HUMAN RESOURCES MANAGEMENT STRATEGY.................................................................13
OWNERSHIP..........................................................................................................................................14
FORM OF BUSINESS........................................................................................................................14
EQUITY POSITIONS OF THE COMPANY...................................................................................14
CRITICAL RISKS AND CONTINGENCIES OF THE COMPANY.................................................14
REFERENCES........................................................................................................................................15

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 INTRODUCTION TO SPIN CITY
Spin City provides on demand premium dry clean, laundry and steam ironing services at
affordable prices. The company will provide free pickup and drop facility across all the major
locations in Addu City. Since, Addu city is growing with new restaurants, guest houses, hotels,
Schools and government offices, laundry service will be helpful to them. Also Spin City will
offer the services to households at the same time. There is currently no laundry service business
operating, which makes it an advantage for to start this company.
Spin City is a new business that will be registered as a limited liability company in Addu City. The firm
will offer dry cleaning and laundry services, as well as frequent pick-up and delivery services to
customers' homes. Spin City will have a production facility, but due to our pick-up and delivery service,
we will not require a retail storefront. The company will need delivery vans and customer service trained
drivers. Spin City will not need to pay any rent since the building where the service center is located
belongs to the owners. Cleaning equipment will be rented together with service agreements. Owner
investment and bank loans will be used to finance the startup.

Vision

Competitive priced convenient user friendly professional services.

Mission
Spin City's mission is to deliver all laundry services to customers in an ecofriendly, totally trustworthy,
and professional way. We exist to bring in and keep clients.

Objectives

Spin City's goal in offering laundry and garment alteration services to consumers in Addu City is
to:

 Create viable business by the end of the first year.

 Have first year revenue in excess of Mrf.1000000
 Producing net profits and expanding the business.

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Location

The Spin City is located in S.Hithadhoo, Addu City. It will utilize 2000 square feet. The location
is strategically situated on Elhedidi Maugu which is the most busy street. More specifically, it's
located near the hospital side of Hithadhoo. In addition, there are two apartment complexes
located nearby where doctors and other visitors stay.

MARKET ANALYSIS OF SPIN CITY

OVERALL MARKET

In the present scheme there is no mechanical laundry wash and dry cleaning service present in
Addu City. Demand of mechanical laundry and dry cleaning is increasing day by day in tune
with population growth in Addu City. As more and more women are nowadays getting engaged
in different jobs and time is not available to do household activities like washing. Such service
units are mushrooming in the market of small towns and cities. Spin City did some market
research to gain insight of public for our laundry service. The first type of research was a survey
done through social media. The aim of the survey was to determine the demand we have for the
service and what are the main elements the public needs to include in our service. The results of
the survey were quite illuminating.

MICRO AND MACRO ENVIRONMENT ANALYSIS

MICRO ENVIRONMENT (SWOT)

Strengths

 Customers will have another option with Spin City's new door-to-door dry cleaning and
laundry service.
 No Competition in Addu City.

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Weaknesses

 Opening with no market share at all.

 Less experienced as it is new start-up in a whole new environment for such service.

Opportunities

 Apparel expenditures, especially high-end clothing, are rising, resulting in a rise in the
need for clothing maintenance.
 Average income of citizens of Addu City is improving.
 People prefer to spend their time performing leisure activities rather than household
chores.
 There is a high likelihood of repeat business.
 New guest houses are being built which will need our services.

Threats

 If the company succeeds, it will attract additional rivals that offer similar services.
 New technological advancements may result in the release of new dry-cleaning family
washing machines.

MACRO ENVIRONMENT (PESTLE ANALYSIS)

Political factor
Political environment of Maldives is playing the major role where it influences all procedures in
trade. The existing government is initiating development of small businesses in different
locations of the country. This creates perfect environment for businesses like Spin City to start
and build the business.

Economic factor

The Maldives is a tax-free country, with just a few import products subject to taxes. Profit
margins for all types of businesses range from 40% to 65 percent of landing expenses. The

Aminath AZma (s20011893)

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exchange rate of the local currency has been stable for the previous three to four years, allowing
the economy to readily absorb new trends and products.
Social factor

A civilized, outgoing culture in which living outside of the home is a significant identifier of a
local individual. There are serious worries about personal health, food, clothes, and other
necessities. Services from Spin City is going to provide more time for people in such a society to
get involved in leisure activities with the family after the busy work schedules.

Technological & environment factor

In the country, advanced technology is available, although at a hefty cost when compared to
current rates. So people are not able to directly afford them. So the services provided by Spin
City is going to help them to make the lives easy for an affordable price. Also the company will
be using environmental friendly detergents for the laundry services.

Legal factor

Maldives is not a very strict country compared to other nations. The company has to go through
registration and paying taxes on time is going to make the business sun smoothly without any
legal complications to continue with the business.

MARKET SEGMENTATION AND TARGET MARKET OF SPIN CITY

MARKET SEGMENTATION

The working class does not have enough time to do their own laundry due to their hectic
lifestyles. Alternatively, they will need to do their clothes at a well-equipped and contemporary
laundry facility. They are a lucrative customer group for Spin City since they make money. They
are anticipated to boost the most earning revenue for the company.

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TARGET MARKET

The youthful population of Addu city is growing, and the bulk of them are engrossed in a hectic
job schedule, leaving little time for home chores. Spin City will mainly target the growing young
working population of the city. The airport in Addu is going to be international soon and the
tourism industry is slowly booming in the city. As a result, it opens opportunities for the Guest
House business in Addu, which is a good target in the market for expansion plan of the business.

THE COMPETITOR ANALYSIS OF SPIN CITY

KEY COMPETITORS OF SPIN CITY

In the present scheme there is no Laundry services available in Addu City. Spin City will be the
first of its kind to step in the market to cover this area of the market. So there is a good
opportunity for the company to dominate the market before any other business enters the market.
By covering good market share Spin City can make it difficult for any other competitors to enter
the market in the future.

BARRIERS TO ENTRY TO MARKET

There are no barriers for Spin City to enter the market. The government is helping to start-up
new businesses and there is no competition is the market. Except for the risk of low demand, the
company might receive there are no other barriers to enter the market. With good advertising
strategies Spin City can become a successful business.

COMPETITIVE ADVANTAGE OF SPIN CITY

Spin City laundry service would like to set itself as the standard bar for any competitors to come
to market in the future. Despite the fact that Spin City's primary focus is on laundry and drying,
the firm will provide consumers with the convenience of having all of these services in one

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place. Folding and perhaps pick-up/delivery services, as well as online reservation and
membership for pick-up and delivery, are among the options available.

DEVELOPMENT AND PRODUCTION PROCES

PRODUCTION PROCESS OF SPIN CITY

The store will be open from 7:00 a.m. on Sunday through Thursday. from 7:00 a.m. to 7:00 p.m.,
and from 7:00 a.m. to 7:00 p.m. from 6:00 p.m. to 6:00 p.m. Saturday On Friday business will be
closed. Express service will be available Saturday through Thursday from 7:00 a.m. to 11:00
a.m. The route service will have a driver with a van to deliver and pick up services to homes and
business on Monday, Wednesday and Saturday during regular business hours. All the services
will be done onsite. Firstly, customers drop of their orders. The orders will then be entered into
the computer system and described. Finally, orders will be divided into two categories: dry
cleaning and laundry. The procedure begins with light colors and concludes with dark ones once
they have been sorted. Orders will be available for pressing at the end of the process. Depending
on the type of spot, the spot removal method will be performed before or after cleaning. After
then, orders will be available for assembly on the internet. They'll be stacked and ready to be
picked up and paid for on the conveyor. Customers' residences and businesses will get route
orders.

RESOURCE REQUIREMENTS FOR THE COMPANY

The following machines will be leased by making contracts with the supplier as leasing is
cheaper method than buys brand new machineries. And if any repair is needed the supplier will
be able to provide the repair services or replacement without causing problems to daily
operations of the company.

2 Washer – 18kg capacity, high spin, microprocessor control, electric heat

1 Tumble dryer – 20Kg capacity, stainless steel drum and gas heated

1 Dry cleaning machine – 12Kg

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1 Roller Iron 40 x 12 inch, variable speed and vacuum exhauster

1 Ironing table with steaming vacuum board, integral 8litre boiler, iron, water pump and light

QUALITY ASSURANCE OF SERVICES

For the quality of the services of Spin City, the company will be hiring the Laundry Expert who
will train the employees and act as on side supervisor to check if the daily operations are carried
out to the standard set by the company. This will help to uphold the quality of the services and
build up a loyal customer base for the company.

MARKETING PLAN OF SPIN CITY

OVERALL CONCEPT AND ORIENTATION OF THE COMPANY

Spin City will employ efficient methods for capturing the attention and response of customers.
Flyers will be disseminated, and flyers will be placed on cars via internet networking.
Promotions will back up all of these communications. The best referral will be via word of
mouth. The firm allocates a significant amount of money to successful advertising. The software
the firm intends to deploy includes an internet connection, allowing it to send email advertising
and sales to clients. This is seen to be great communication between the firm and its clients. We
will also use social media to promote ourselves.

MARKETING STRATEGY AND RESOURCES OF THE COMPANY

Spin City will market the company through a three-pronged approach. This will help the
company to get new customers and build a loyal customer base.

The first approach is to distribute a color brochure outlining our services. This will be
accomplished with the assistance of the city's taxi centers.

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The second strategy will rely on word-of-mouth recommendations. If our customers bring in new
business, Spin City will reward them with a financial incentive (such as a free visit).

The company's third strategy will be to use social media and its website. Because we live in the
Information Age, we will build a Facebook profile and a company website to promote our
services.

SALES FORECASTS FOR SPIN CITY

Below are the sales forecast for Spin City Laundromat for the first three years of startup. It will
provide the company with necessary guidance to help us achieve our financial goal. The sales
projection is based on the premise that demand would continue to rise at a constant rate. This is
predicated on the premise that after month two, word of mouth recommendations will account
for a substantial portion of our new clients. The reasoning is that as we continue to satisfy current
consumers, we will attract progressively more clients.

Revenue (Sales)
2500000

2000000

1500000

1000000

500000

0
2021 2022 2023

Revenue (Sales)

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FINANCIAL PLANS OF SPIN CITY

FINANCIAL STATEMENTS

Buying new machines costs approximately MRF. 100,000 as opposed to leasing which costs
MRF.60,000 per year including maintenance. Evaluating the leasing solution shows NPV higher
than that of buying machines. Furthermore, because the company is new and has little experience
with equipment maintenance and repair, leasing machinery is the best option.

Machinery and Specification Qty./rate Total Value (MRf.)

Equipments No.

1. Industrial Washers 2 30,000

18Kg

2. Tumble Drier cap. 1 20,000

20 kg.

3. Roller Iron 1 15,000

40 x 12 inch
4. 1 Ironing table with 2 15,000
Steaming vacuum
board

5. Dry Cleaning 1 20000

Machine

Total: 1,00,000

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Working Capital (per month)

Personnel Designation No Rate Total (MRf.)

No.
1 Manager 1 15,000 15,000

2 Skilled Labor 3 8,000 8,000

(Driver &
Laundry)

3 Semi-Skilled 2 5,000 5,000

Labor

Total : 28,000

Raw Materials including Packaging Materials

Liquid detergent 50 litres @ Rf.10/lit. Rf. 5,00

Solvent 50 ltr. @ Rf.20/lit. Rf. 1000
Perfume/deodorant 1 lit. @ Rf.40/litre Rf. 40
Packing material LS Rf. 1,60

Total: 1700

Utilities
1. Electricity Rf. 5,000
2.Water Rf. 500

Total Rf. 5,500

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Other Contingent Expenses

S. No. Description Value (Rf.)

1 Advertisement 500
2 Transportation 1,500
3 Telephone 500
4 Stationery/Packaging 1,000
Material/Consumable
5 Maintenance 500

Total 4,000

FINANCIAL RESOURCES
The owner will invest MRF200,000 in the business. Additional capital for the business in the
amount of MRF.400,000 will be borrowed from a bank.

FINANCIAL STRATEGY

The financial strategy for Spin City will be cash flow planning. To create a cash flow plan, Spin
City will assess the assets, income and expenditure of the company monthly. This will help the
company to analyze if the current expenditure fits projected cash flow as without cash flow
planning, businesses cannot make informed decisions about expenditure, investment or future
growth.

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ORGANIZATION AND MANAGEMENT / HR STRATEGY OF
SPIN CITY
KEY PERSONNEL RESOURCES

Since the company is investing on leasing machineries needed for the laundry service, the main
key personal resources will be the machineries and the labor for the company. As it is a service
based company the employees of the company need to be taken care of to reduce the turn over
and reduce the loss to the business.

HUMAN RESOURCES MANAGEMENT STRATEGY

A laundry expert's term of reference and employees are trained through discussions with a dry
cleaning consultant. . Employment information will be advertised in local newspapers and
Gazette. The laundry expert and two part-time workers who have experience in laundry work
will be employed. The operation and quality of clothing washing will be overseen by the laundry
specialist. Workers will be in responsible of cleaning and categorizing their job, as well as
reporting their daily work to the laundry expert. The expert must inform the director of their
employee performance and issues.

Three times a week, two part-time drivers pick up and deliver garments from 5:30 p.m. to 9:30
p.m.

 Employees must be able to meet working circumstances and standards.

 Understand and apply dry cleaning and washing procedures.

 Meet criteria set by following instructions.

 Should be able to work in hot, humid surroundings.

 Should be able to do overtime during peak seasons.

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OWNERSHIP
FORM OF BUSINESS

The proposed legal form of business is a limited liability company, owned by its founder
Aminath Azma. The registration processes are straightforward, and the company may begin
operations right away. The owner will be the director and will initially handle the book keeping
responsibilities. The company will have a very flat organizational structure.

EQUITY POSITIONS OF THE COMPANY

Spin City currently will not have any equity positions as it is a sole proprietorship business. But
in the future based on the growth of the company Spin City can go public adding equity positions
to the business.

CRITICAL RISKS AND CONTINGENCIES OF THE COMPANY

Spin City is a new company with limited expertise and no market share to begin with. To build a
consumer base, you'll need to be bold and successful in your first marketing efforts. Competitor
risks are conceivable, therefore the company must constantly monitor and analyze its
performance, as well as gather consumer feedback and ideas, in order to improve.

The worst-case scenario is that the company is unable to sustain itself on a long-term basis. It's
possible that the expenses of running company are underestimated, or that sales and profits are
lower than projected, making the firm harder to finance. Furthermore, in the event of a societal
economic downturn, political shifts, or inflation, the firm may perform much worse than
expected.

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