Mary Florence Andales OA 34 - A

Chabelita Popanes February 23, 2022

PRIM: How a Lack of Passion and Resolve Can Kill a Business

1. Passion for the business is the most common trait among successful entrepreneurs.
The entrepreneur's passion usually arises from his/her belief that the business will have
a good impact on people's lives. This is what drives the entrepreneur’s ability to learn
and iterate, to overcome setbacks and “no’s”, and to listen to feedback on the limitations
of his/her organization and oneself. Furthermore, with passion, there is willingness to
work hard for an extended period of time along with perseverance and persistence when
the going gets tough. These are some of the main reasons that make passion such a
critical part of entrepreneurial success.

In the case of PRIM’s co-founders, they were passionate about building a company but
not passionate about the laundry business specifically. This combination makes it more
difficult for a business to grow and last long. The management, decision making and
strategic planning of the co-founders would not be focused on their customers and
services offered. Also, they would not be that determined and motivated to achieve or
even set long-term goals for the company. So when the going gets tough, they would tend
to focus on building another company they think could be more successful. Thus, it
would be best for Wu and Cao and for every entrepreneur, to build a company that is in
line with their interest, skills and/or industry they are passionate about. Through this,
they can exert their efforts, creativity, and perseverance in ensuring that the business
succeeds even during difficult times.

2. Wu and Cao could have better anticipated that laundry services would eventually see
Prim as siphoning off their own business and be reluctant to work with them through
conducting a detailed feasibility analysis before launching the company. Through
speaking with laundry services ahead of time, the founders may have realized that their
business model was problematic. Furthermore, scenario planning could have helped
them identify the company’s driving forces, weaknesses and some critical uncertainties.
From there, they could have developed plausible scenarios and discussed implications
and paths to create the best and most effective solution. It would have also helped if they
maintained open communication and good relationships with the laundry services they
tapped. Through this, they would have been able to make a written deal or contract with
the laundry service which includes a set delivery service schedule that does not coincide
with that of the laundry service’s to ensure what they have is partnership and not
competition.
3. PRIM provided pick-up and delivery laundry services to its clients. Basically, it acted as
an Uber for people with dirty clothes. With this type of business, it would have been
more beneficial and ideal for the company to employ its own delivery drivers rather than
outsourcing. However, PRIM relied on the use of third-party delivery services rather
than employing its own drivers to pick up and deliver laundry for its customers. This
precluded PRIM from having full control and management of the said drivers, as well as
the quality, efficiency and reliability of delivery service and the feedback of its customers.
All in all, these factors could have limited PRIM’s growth in other markets.

4. Sfwash has the most potential among the three innovative laundry services in San
Francisco. It is a delivery service where clients pay by the pound. This is a more
cost-effective type of service as compared to that of PRIM’s wherein all clients paid $25
for the first bag and $15 for each additional, regardless of the laundry’s weight. Another
difference Sfwash has with PRIM is that it offers different prices for specific laundry
services, ensuring the best value for it’s clients’ money. The most appealing feature of
Sfwash is that it operates its own wash-and-fold laundry facility and provides the highest
level of service. Furthermore, it partners with a local dry cleaner, who has been in
business for over 25 years for all of its dry cleaning services. These give clients assurance
that their clothes are cleaned with utmost care since the company can closely manage
and focus on the quality of its services. On the other hand, PRIM’s approach was sending
its clients’ bundle to a laundromat in San Francisco whom it made a “verbal agreement
with,” and utilize their wash-and-fold services at a “negotiated discounted rate.” This
kind of setup made it more difficult for PRIM to gain customer loyalty since the quality
of the wash-and-fold service is not assured to meet the client’s expectations. Also, since
PRIM churned through at least three laundromats, the quality of service also went
through changes that may have been disappointing or unsatisfying for the clients. The
other services and features available in Sfwash that were lacking in PRIM are the
following: residential and commercial services, drop-off services, discounted service for
disabled customers, and special offers such as Customer Referral, Bernal Heights
Wednesday Special and Free Same-Day Service on Thursdays. Overall, the services being
offered in Sfwash are great factors to attract more potential clients and gain customer
loyalty in San Francisco which can help in their business growth and success.