A Feasibility Study

Presented to the Faculty of

College of Business Administration

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

In Partial Fulfillment of the Requirements

In Marketing Research

In Partial Fulfillment

Of the Requirements for the Degree in

Bachelor of Science in Business Administration

Major in Marketing Management

xxxxxxxxxxxxxxxxxxxxxxxx

December 2020

i
 APPROVAL SHEET

This is to certify that the project feasibility study entitled, Megalite Automatic Carwash
prepared by has been examined and recommended for Oral Defense.

x
Adviser

This is to certify that the project feasibility study entitled Megalite Automatic Carwash
prepared by has passed the Oral Defense with a grade of ___________.

x
Panelist

x
Panelist

x
Panelist

Accepted and approved in partial fulfillment of the requirements for the Degree of
Science in Business Administration Major in Marketing Management.

x
President and College Dean

ii
 ACKNOWLEDGMENT

First and foremost, I would like to thank God for the knowledge for HE has given me the
patience, virtue and wisdom that made me finish this study. Thank you for the
unconditional love especially in times when I almost gave up.

I would like to acknowledge the people behind the success of my feasibility study.

To my parents and siblings who prayed for me and support me all the way, thank you.

To my Feasibility Study Adviser, xxxxxxxxx, thank you for your undying support. Thank
you for your guidance and advices that inspires us to make a job well done.

To Mrxxxxxx, thank you for your patience and willingness that helps me a lot. Thank you
for guiding me in my preparation for my financial statement.

To our program head, xxxxxxxxx, thank you for your helpful suggestions and advices
and to your patience. Thank you for not giving up on us.

To all 4th year BSBA students, thank you for the friendship. Thank you for the
memorable memories we had during the making of our studies.

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 DEDICATION

I dedicate my study to those people who didn’t give up on supporting and providing me
an unconditional love and motivation in doing this Feasibility Study:

To my family who supported me at all time and encouraging me to do my best.

To my professors who instilled in me with knowledge and become my second parents.

To the future generations of students of xxxxxxx who will use this study as a guide and
soon will inspire others.

To my Alma Mater, xxxxxxxxxxxxxxxxx who has been an effective provider of quality

education.

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 EXECUTIVE SUMMARY

The aim of this research is to come-up with a study on how to put up the MEGALITE
AUTOMATIC CARWASH that will be a big help for those have cars. The study
determine the market potential of the proposed business to be located in Rodriguez,
Rizal. A detailed study was conducted for the proposed Megalite Automatic Carwash
that would offer quality car services.

Project Background:

a. Name of the Proposed Business: Megalite Automatic Carwash

b. Type of Business Organization: Sole Proprietorship
c. Target Location of the Project:
d. Service: Automatic Car Wash
e. Proponentxxxxxxxxxxxxxxxx

Market Feasibility Summary:

The market feasibility section of this study will tell about the target market and projected
demand for the services of Megalite Automatic Carwash The proposed business
intends to clean the cars and offers related services. The Municipality of Rodriguez,
Rizal has various establishments such as banks, shops, schools and various
businesses in a growing population and this makes it more feasible for the proposed
business to be built around the locality of Rodriguez. Thus, the Megalite Automatic
Carwash will be able to provide more job opportunities for the residents and taxes for
the local government.

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Technical Feasibility Summary:

The Technical Feasibility shows the different processes and flow of the business and
what machines, equipment, and supplies are needed for the business service process.

Management Feasibility:

The Megalite Automatic Carwash shall be managed by the Owner/ Manager.

Management is transparent with its employees, providing feedback for improvement,
and working in a team where everyone meets a common goal. Management can
provide utmost excellent customer care by extending its suggestions and concerns to
their customers

Financial Feasibility Summary:

Financial Feasibility shows the business income statement, balance sheet and cash
flow.

Based on the financial results of Megalite Automatic Carwash, the business is feasible.
The business has already an income in its first year and earns more in second year up
to fifth year.

Socio-Economic Aspect

The proposed will benefit the government with regards to tax matters. This means that
more funds would be generated by the government. Additional funds may help the
government on assisting its ongoing projects or for creating new ones through which
people’s welfare will be given more emphasis.

The proposed business will be an eco-friendly economic activity to protect our

environment. The business will implement waste segregation at source to facilitate
waste recovery because it will be reuse again through recycling.

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TABLE OF CONTENTS

TITLE PAGE i

APPROVSL SHEET ii

ACKNOWLEDGEMENT iii

DEDICATION iv

EXECUTIVE SUMMARY v

TABLE OF CONTENTS vii

INTRODUCTION x

OBJECTIVES OF THE STUDY xii

MISSION AND VISSION xiii

SITUATIONAL ANALYSIS xiv

1.0 CHAPTER I. MARKET FEASIBILITY

1.1 Project Demand 1
1.2 Location
1.2.1 Project Site 2
1.3 Competition 3
1.4 Pricing 4
1.5 Advertising and Promotion 5
1.5.1 Product Mark
1.5.2 Slogan and Flyers 6
1.5.3 Reward Card
1.6 Service Feature 7
1.7 Service Quality

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2.0 CHAPTER II: TECHNICAL FEASIBILITY
2.1 Services 8
2.2 Business Process
2.3 Business Process Diagram 9
2.4 Supply Assurance Process Diagram 11
2.5 Machineries and Equipment
2.5.1 Furniture and Fixtures 12
2.5.2 Equipment 15
2.5.3 Supplies 17

2.6 Solid Waste Disposal 19

3.0 CHAPTER III: MANAGEMENT FEASIBILITY
3.1 Organizational Structure 20
3.2 Work and Job Description and Qualifications 21
3.3 Compensation and Benefits 22
3.4 Management and Style 23
3.5 Process Flow Chart 24
4.0 CHAPTER IV: FINANCIAL FEASIBILITY
4.1 Income Statement 25
4.2 Schedule of Depreciation 26
4.3 Project Cost 27
4.4 Owner`s Equity 28
4.5 Balance Sheet 29
4.6 Cash Flow 30
4.7 Source of Financing

5.0 CHAPTER V: SOCIO ECONOMIC FEASIBILITY

5.1 Government Contribution 31
5.2 Employee Contribution 35

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References
Appendices
 Curriculum Vitae
INTRODUCTION

At a very young age, the researcher loved to clean the parent and relative’s cars. At
that time, a dream sparked that someday the family will have a car wash so it will be a
lot easier to clean the vehicles.

The dream will come true with Megalite Automatic Car Wash, the researcher’s proposed
business which will clean cars in minutes. Yes you read it right; the high- end carwash
equipment cleans all the dirt in minutes. It washes all four sides of the car at once,
scrub the tires, wash the undercarriage as well and even inside the car as it leaves a
delightful fragrance. There is also an express tunnel that gets the car through quickly.
The machines and equipment are eco-friendly with low water and electric requirements
and uses mild soaps.

People have found ways to wash their cars ever since cars were invented. They either
washed it themselves at home or pay someone to wash it by hand. Then in 1914, two
Detroit men opened the first car wash business, which they called the Automated
Laundry, but it wasn’t really automated. It was basically a pail and sponge type of
operation where the cars were pushed manually through an assembly line like tunnel,
where one attendant would clean the car with soap, another guy will rinse and a third
guy will dry.

The first automatic conveyor car wash was opened in Hollywood, California in 1940.
Instead of manually pushing the cars through, this car wash had a winch system that
was hook to the bumper and pulls the car through as men splash away in the tunnel,
then as the men soap, scrub, wipe and dry the cars. In 1946, Sir Thomas Simpson was
credited for his first semi-automatic car wash system that took most of the manual labor
out. It had a conveyor belt hook to the bumper of automobiles, an overhead water

ix
sprinkler with three sets of manually operated brushes and a 50 HP air blower to dry
the car.

Then in 1951, the three brothers namely Archie, Dean and Eldon Anderson got a great
idea to fully automate their car wash. The Anderson clan invented the completely
hands-free automatic car wash in Seattle. The cars were pulled through the tunnel and
giant blowers dry them. Needless to say, this was a big hit!

In 1960’s, fully mechanized car washing systems were being installed across America.
The conveyor car wash equipment advancing with the recalculating water systems, soft
cloth friction washing, roller on demand conveyor and wrap-around brush.

The success of a car wash is dependent on its location. Launching a car wash business
in a rural area with no traffic probably will not be as lucrative as a car wash on the side
of a major highway. With that premise, the Megalite Automatic Car Wash will be
located along Hi-way fronting in Rodriguez, Rizal.

The researcher coordinated with the Municipal Engineer of the Municipality of

Rodriguez, Rizal to determine the flow of traffic in the proposed location. The peak
hour in the morning is from 5am - 8am, then expect the volume of vehicles from 11am –
1:00pm and the rush hour is from 5pm – 9pm.

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 OBJECTIVES OF THE STUDY

The following are the objectives of Megalite Automatic Car wash

• To provide competitive prices to satisfy the customer’s needs;

• To provide a clean and eco-friendly environment;

• To continue to Innovate for new technological car wash services;

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 VISION STATEMENT

To become the leading automatic carwash business in the Philippines that satisfies and
meets the need of our customers.

MISSION STATEMENT

Provides high quality services delivered with a sense of care and service to our
customers.

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 SWOT ANALYSIS

Strength (Internal) Opportunities (External)

Using an dvance technology to serve The only car wash business that
the clients. offers an automated car wash
Accessible and convenient to car services.
owners.

SWOT
Weakness (Internal) Threats (External)

New and few have known the business. Many businesses are downsizing because
of pandemic.

xiii
xiv
 CHAPTER 1
MARKET FEASIBILITY

The market feasibility section of this study will tell about the target market and projected
demand for the services of Megalite Automatic Carwash The proposed business intends
to clean the cars in Rodriguez, Rizal and nearby town.

1.1 Project Demand

Megalite Automatic Carwash is the proposed business intended to clean vehicles and
offers other car services. Megalite Automatic Carwash will offer body wash, under wash
and engine wash

The town of Rodriguez, Rizal has various establishments such as banks, shops,
schools and various businesses in a growing population; this makes it more feasible for
the proposed business to be built around the locality of Rodriguez. Thus, the Megalite
Automatic Carwash will be able to provide more job opportunities for the residents and
taxes for the local government.

1.2 LOCATION

Megalite Automatic Carwash will be located at 14 J.P. Rizal Street, Brgy. Manggahan
Rodriguez, Rizal. The purpose of choosing the location which is along national road is
to attract more customers.

The location which is along J.P. Rizal Street, Brgy. Manggahan, Rodriguez, Rizal is the
best place for establishing this proposed business. The area is not flood –prone and
there is a heavy flow of traffic from morning till night.

1
1.2.1 PROJECT SITE

2
1.3 COMPETITION

The proponent has known different carwash shops located in the area which serve as
competitors.

ECNB Wax Detailing is a carwash located at Omega St., Brgy. San Jose, Rodriquez,
Rizal. It offers hand carwash and wax detailing.

The Blue Point Car Wash & Auto Detailing is located at J. P. Rizal St, Manggahan,
Rodriguez, Rizal.

3
1.4 PRICING

One of the secrets to business success is pricing the products and services
competitively. But it the pricing strategy is wrong then it may create problems that the
business may never be able to overcome.

Below is the pricing for the services of Megalite Automatic Carwash is competitive-
based pricing. The competition-based pricing is a pricing strategy method that makes
use of competitor’s prices for the same or similar product as basis for setting a price.
This pricing method focuses on information from the market rather than costs (cost-plus
pricing) and product’s perceived value (value-based pricing).

Automatic wash + wax Price

Sedan 200

AUV 220

SUV 230

Pick up 240

Van 230

Package

Body wash + Engine wash + Under Wash 400

4
1.5 ADVERTISING AND PROMOTION

To capture the interest of our target market, the proponent proposed to have a different
set of advertising strategies that may help the business to reach more people and gain
their loyalty.

The Megalite Automatic Carwash will be using social media platforms such as Face
book, Twitter and Instagram. Aside from social media, the word of mouth which is the
most effective strategy to reach for our target market, there will also posters, and
tarpaulins that will be hang in vacant lots along the national road.

1.5.1 PRODUCT MARK

The logo represents the services of the business, the water, bubbles and the car. My
tagline is inspired to the new technology of cleaning cars. Megalite Automatic Carwash
is for speed, convenience, value and safety for their cars.

5
1.5.2. SLOGAN AND FLYERS

Tagline: “We Wash Car with Speed and Convenience”

1.5.3. REWARD CARD

6
As part of the promotional strategy, there will a reward card. To avail of the promo, the
customers are encouraged to purchase at least 200 pesos of our products and they will
get one stamp on their card. If they are able to complete the 4 stamps, they will be able
to receive and redeem 1 free automatic carwash within three months from the time they
receive it.

1.6 SERVICE FEATURES

Megalite Automatic Carwash offers high quality services to cars. It includes care
routines such as:

 Ask customers for feedback;

 Provide solutions to problems pertaining to caring for cars.

1.7. SERVICE QUALITY

Service quality refers to a customer’s comparison of service as it relates to a company’s

performance. A business with a high degree of service quality is likely capable of
meeting customer needs while also remaining economically competitive in their
respective industry. Successful businesses who remain competitive and relevant in the
industry work proactively to obtain information from their current customer base so they
are sure that they are meeting their customer’s needs.

The proponent believes that having good service includes good relationship with the
customers and providing excellent services.

7
 CHAPTER II

TECHNICAL FEASIBILITY

This chapter discusses the services that the business offers, the machineries and
equipment and other aspect that contributes to the overall operation of the business.

2.1 SERVICES
NAME DESCRIPTION IMAGE

Automatic Carwash Facility used to clean the

exterior and, in some
cases, the interior of motor
vehicles. Car washes can
be self-serve, fully
automated, or full-service
with attendants who wash
the vehicle.
Vacuum Keeping the inside of your
car clean is important even
if you're the only person
who sees it. Not only can
dirt, dander, dust and
crumbs make your car feel
less cozy, the buildup of
debris can irritate allergies
and other conditions.

2.2 BUSINESS PROCESS

The illustrations shows the service process of Megalite Automatic Carwash from
accepting the car then cleaning process up to vacuum interior and leave the car

8
2.3 BUSINESS PROCESS DIAGRAM

Megalite Automatic Carwash offers quality care and friendly environment for cars.
Below are the processes of the Megalite Automatic Carwash.

1. Proceed to the cashier for payment.

2. The 1st wash cycle is the pre-soak. The car travel through a metal arch fitted
with several small nozzles that sprays a cleaning solution on the car to pre-
wet the surface and begin loosening up the dirt.

3. The tire solution and wheel cleaner such as Armor All Wheel Cleaner ® will
be applied in order to clean the tires and remove the black soot-like brake
dust.

4. The car then travels through a series of long strips of soft cloth hanging from
a metal frame moving back and forth. This is the miter curtain and it is
designed to gently wipe away contaminants from the horizontal surfaces of
the car, the hood, roof and deck lid.

5. The car pass through the foam applicator. This is where a chemical cleaner is
sprayed on your car through a series of nozzles. The aerated cleaner is often
colored to make it more visually appealing and apparent.
6. The scrubbers. These large, vertical cylinders covered with hundreds of small
cloth strips rotate rapidly at ninety revolutions per minute or more. Two to four
scrubbers are used to clean the sides of your car once the pre-soak has
loosened up the dirt. Additional wrap-around models might also be present to
clean the front and rear vertical surfaces.

7. Once the mitter curtain and scrubbers have wiped away the loose dirt, then
the high-pressure nozzles and rotating water jets will rinse the car off with as
much as 1000 pounds per square inch of pressure. In order to accommodate

9
 the hundreds of gallons necessary for this process, a high-pressure tank
stores water. The water is usually recaptured and recycled back to the tank
after use.

8. While the outside of the car is being washed, the underside will also be
treated. Another service in car washes is the undercarriage wash applicator.
These jets are positioned on the ground and blast water upward to wash mud
and salt from the bottom of the car.

9. With the car washed and scrubbed, the next step is the rinse arch. Nozzles in
this metal frame spray clean water to remove any residue that remains after
the high-pressure stage. Actually, there are up to three rinse arches, one after
the pre-soak and miter curtain, one after the high-pressure washer and
undercarriage wash applicator, and one (the final rinse) just before the dryer.

10. Somewhere between the first set of miter curtains and scrubbers, there is
another set of each. These work in tandem with specialty products delivered
by a wax arch that delivers either liquid wax through a set of nozzles, or triple
foam wax through a foam applicator. The wax bonds with the outside of the
car and helps to provide a waterproof barrier for several days.

11. Finally, once the car has been pre-soaked, scrubbed, washed, waxed, and
scrubbed some more and final rinsed, it travels through the dryer. The giant
nozzles of the dryer force warm air across the surface of the vehicle to
remove most of the water. Attendants with hand towels might also finish the
job.

12. Last is the vacuum interior.

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2.4 SUPPLY ASSURANCE PROCESS DIAGRAM

11
2.5 MACHINERIES AND EQUIPMENT

2.5.1 Furniture and Fixture

FURNITURES DEFINITION PRICE QUANTITY AMOUNT

AND FIXTURES NEEDED
Tables and Chair A chair is a piece of 2,859 3 8,577
Set furniture with raised
surface commonly
used to seat a single
person chairs are
supported most often
by four legs and have
a back however a
chair can have three
legs or can have a
different shape.
Exhaust fan A fan that moves air 899.75 4 3,599
out of an enclosure
attic fan a fan that
blows heated air out
of the attic of a
building fan device for
creating a current of
air by movement of a
surface or surfaces
Fire Extinguisher The substances in dry 1,150 1 1,150
chemical
extinguishers can

12
 stop this process
sodium bicarbonate
regular or ordinary
used on class B and
C fires was the first of
the dry chemical
agents developed
Transparent A piece of material 2,300 2 4,600
Curtains suspended at the top
to form a covering or
screen, typically one
of a pair at a window.
Drum Water ( 55 Reduce Runoff 1,200 2 2,400
Gallon ) Pollution & Erosion.
Runoff from rains pick
up soil, oil, pesticides,
fertilizers and other
contaminates and
push them to other
areas
Plastic Pail Plastic Pails Will Not 160 4 640
Rust or Dent help
make your product
look better longer
Seamless molded in
one piece with no
seams that can leak
in transportation or
storage Light Weight
significantly lighter in
weight than steel

13
 pails, resulting in
reduced shipping
costs.

2.5.2 Equipment

EQUIPMENT DEFINITION PRICE QUANTITY AMOUNT

Automatic Automatic/drive-thru car 950,400 1 950,400

Carwash (Sino washes save time and
Star) hassle. But are
automatic car washes
safe for your car? In
fact, in many instances,
they are the safest
course of action for
many car owners who
want to keep their car
clean.
Vacuum Cleaner An electrical apparatus 6,000 2 12,000
that by means of suction
collects dust and small
particles from floors and
other surfaces.
(CCTV) We should have 800 2 1,600
CAMERAS surveillance cameras in
public places because
they ensure public
safety. ... Through
surveillance cameras,
the police can both

14
 prevent crimes from
happening and can
quickly solve criminal
cases with material
evidence. In addition,
surveillance cameras
protect against property
theft, and vandalism
Speakers They receive audio input 12,000 1 12,000
from the computers
sound card and produce
audio output in the form
of sound waves most
computer speakers
meaning they have an
internal amplifier which
allows you to increase
the volume or amplitude
of the sound
Water tank Water is a precious 10,000 2 30,000
commodity and it is in scarce
1000 supply. Steel Water storage
tanks will enable you to
collect r water and even
surface run off for use in the
garden or to clean with.
There are many water
treatment options these
days which will enable you to
purify the water that you
have collected and use to for
washing dishes and clothing.
water can be used to water
the garden when the need
arises, and it can also be
used to wash the car

15
POS POS, is the place where 20,000 20,000 20,000
your customer makes a
payment for products or
services at your store.
Simply put, every time a
customer makes a
purchase at your store,
they’re completing a
point of sale transaction.

Pressure Pressure washing has 5,300 2 11,000

quickly become one of
Washer
the preferred methods of
cleaning a variety of
surfaces in both
residential, commercial,
and business locations
pressure washing is a
quick, easy, and efficient
way of removing all
manner of dirt or salt
deposits that contribute
to surface weathering. If
you are worried about
having to invest time
and energy replacing
another stained deck,
then pressure washing
may be your answer, as
it is one of the best ways
to boost their longevity.
Sliding Window Sliding windows are 1,560 5 7,800
more efficient than some
other types of windows
for multiple reasons. For
starters, lack of
complicated moving
parts allows the window
to close tightly and
firmly, effectively
blocking air infiltration
from outside

16
2.5.3 SUPPLIES

Supplies Definition Price Quantity AMOUNT

Pre-soak The great at removing 200 20 2,000
shampoo granular and inorganic 3.7L
road film. When the soil
is of high mineral
composition, your best
bet is to apply a low pH
presoak because of its
acidic properties, which
are effective at getting
rid of these tiny clay
particles
Polish 160 20 3,200
The Perfect way to bring
Shampoo 1L
the shinning of your car
back to its original gloss
without any bad impact
on the vehicle
Crystal wax Make Your Car Shine. 1,000 18 18,000
Without a doubt, a 1L
quality Carnauba wax
will make your car shine
Degreaser This versatile degreaser 247 5 1,235
is an all-around good (1000)ml
heavy-duty engine
degreaser.
Very versatile, efficient,
and effective.
Must be diluted, and the
container is not very
strong. The solution is

17
 also quite watery.
Alcohol A clear, colorless, 95.50 10 955
flammable, mobile liquid 500ML
used in antifreeze
compounds, in lotions
and cosmetics, and as a
solvent for gums,
shellac, and essential
oils.
Hand also called hand 95 10 950
Sanitizers antiseptic, hand rub, or
hand rub, agent applied
to the hands for the
purpose of removing
common pathogens
Dis-Infecting an agent that frees 260 5 1,300
spray from infection especially
: a chemical that
destroys vegetative
forms of harmful
microorganism
Garbage Bag A plastic bag produced 48 2 96
for the disposal of
household waste.
TOTAL 1,093,502

2.6 Solid Waste Disposal

18
Solid waste disposal management is usually referred to the process of collecting and
treating solid wastes. It provides solutions for recycling items that do not belong to
garbage or trash. Solid waste management can be described as how solid waste can be
changed and used as a valuable resource.

To make sure that the cleanliness will be maintained, the Megalite Automatic Carwash
will provide proper trash bins with designated disposal. Garbage bags will be disposed
every day. Megalite Automatic Carwash assures the cleanliness of all the facilities. We
hire maintenance to make sure that every single part of the business establishment will
be checked and cleaned.

By maintaining a good environment, it will be more comfortable for employees to work,

this gives a positive feedback to the business and satisfaction to the clients.

CHAPTER III

MANAGEMENT FEASIBILITY

3.1 ORGANIZATIONAL STRUCTURE

19
 Manager

Cashier

Car Wash Attendant

.2 WORK AND JOB DESCRIPTION & QUALIFICATION

Position: Manager

20
 Work  Manage and direct overall operations
Description:  Supervise and communicate with all the staffs
 Set goals for each employees
 Clearly communicate goals to the staffs
 Delegate responsibility
 Measure the success of each personnel
 Hire, train and terminate workers as needed
 Handle employee relations
 Maintain employee records
 Motivate and encourage employees
 Ensure high customer and client satisfaction
 Promote company's mission and values.
Position: Carwash attendants
Job  Must be able to read and write; he must know something
Qualification: about the vehicle
Job Description:  Car wash attendants are responsible for washing cars and carrying
out all other daily duties that ensure effective operation of a car
wash facility.
Position: Cashier
Job  Must be at least finished 2nd year College
Qualification:  Must be a multi-tasker
 With good mathematical abilities

Job Description:  Will take care of the daily inventory. Responsible for daily
financial transactions of the store

3.3 COMPENSATION AND BENEFITS

21
 Year 1-3
Rate per Working Days Monthly Withholding EE - SSS EE- Pag-Ibig EE- Monthly ER-SSS ER-Pag- ibig ER- Annual SSS ER- Annual Pag-Ibig ER- Annual Philhealth ER-
Name Annual Salary
day per month Salary Tax Contribution Contribution Philhealth Net Pay Contribution Contribution Philhealth Contributions Contributions Contributions
Employee 1 350.00 26.00 9,100.00 400.00 100.00 125.13 7,674.88 800.00 100.00 125.13 109,200.00 9,600.00 1,200.00 1,501.50
Employee 2 350.00 26.00 9,100.00 400.00 100.00 125.13 7,674.88 800.00 100.00 125.13 109,200.00 9,600.00 1,200.00 1,501.50
Employee 3 350.00 26.00 9,100.00 400.00 100.00 125.13 7,674.88 800.00 100.00 125.13 109,200.00 9,600.00 1,200.00 1,501.50
Employee 4 350.00 26.00 9,100.00 400.00 100.00 125.13 7,674.88 800.00 100.00 125.13 109,200.00 9,600.00 1,200.00 1,501.50
Totals 36,400.00 - 1,600.00 400.00 500.50 30,699.50 3,200.00 400.00 500.50 436,800.00 38,400.00 4,800.00 6,006.00

Year 4-5
Rate per Working Days Monthly Withholding EE - SSS EE- Pag-Ibig EE- Monthly ER-SSS ER-Pag- ibig ER- Annual SSS ER- Annual Pag-Ibig ER- Annual Philhealth ER-
Name Annual Salary
day per month Salary Tax Contribution Contribution Philhealth Net Pay Contribution Contribution Philhealth Contributions Contributions Contributions
Employee 1 400.00 26.00 10,400.00 420.00 100.00 143.00 8,897.00 840.00 100.00 143.00 124,800.00 10,080.00 1,200.00 1,716.00
Employee 2 400.00 26.00 10,400.00 420.00 100.00 143.00 8,897.00 840.00 100.00 143.00 124,800.00 10,080.00 1,200.00 1,716.00
Employee 3 400.00 26.00 10,400.00 420.00 100.00 143.00 8,897.00 840.00 100.00 143.00 124,800.00 10,080.00 1,200.00 1,716.00
Employee 4 400.00 26.00 10,400.00 420.00 100.00 143.00 8,897.00 840.00 100.00 143.00 124,800.00 10,080.00 1,200.00 1,716.00
Totals 41,600.00 - 1,680.00 400.00 572.00 35,588.00 3,360.00 400.00 572.00 499,200.00 40,320.00 4,800.00 6,864.00

22
3.4 MANAGEMENT STYLE

To start a business, you need to be motivated, patient, hardworking, and

knowledgeable. But it takes more than that to succeed as an entrepreneur. There’s no
definite formula for success. However, there are many ways that beginning
entrepreneurs live by. Every business uses different management style as a strategy in
order to succeed to achieve their main objectives. Management plays an important role
in strengthening the bond among the employees and making them work together as a
single unit. It is the management’s responsibility to ensure that employees are satisfied
with their jobs and eventually deliver their best. The management must understand its
employees well and strive hard to fulfill their expectations for a stress free ambience at
the workplace.

Megalite Automatic Carwash will use Management by Walking Around style where the
manager treat them as an essential part of the team and are efficient listeners. The
superiors interact with the employees more often to find out their concerns and
suggestions. In such a style of working, the manager is more of a mentor to its
employees and guides them whenever needed.

23
3.5 PROCESS FLOW CHART

Preparation
for business
operation Manager
will give
The clients
guidelines
leave the
and
establishment
direction to
the staffs.

Manager or
the car
wash
attendant Opening of the
will ask business
clients for
feedbacks

The car wash Clients

attendant will entering the
perfom cleaning office for
maintenance of inquiry and
the vehicle payment

Manager will Manager will

check what organize
is being and monitor
needed by the
clients. workflow

This Diagram shows the service process cycle. The manager gives direction to the staff
and at 8am the business is open and the clients can enter carwash. The manager will
check the activities of their employees. The carwash attendants will perform the
cleaning and maintenance. The manager and the carwash attendant will welcome the
clients and ask feedback from clients. The carwash attendant will prepare for pre-
closing at 8:30. The business will close exactly 9pm.

24
 CHAPTER IV

FINANCIAL FEASIBILITY

This chapter shows the financial projection of the business, which will help the
proponent determine whether he must pursue the business or not. In making this study,
the researcher must know the necessary resources needed and also should have the
knowledge of monitoring the business finances. This can also help the proponent focus
on the project and narrow down the responsibilities.

4.1 Income Statement

Megalite Automatic Carwash

Projected Income Statement
For the Years-ended Year 1 to 5
Schedules Year 1 Year 2 Year 3 Year 4 Year 5
Service Revenue 1 2,011,240.00 2,325,066.00 2,690,862.00 2,961,480.00 3,427,974.00
Less: Cost of Services 2 417,059.01 485,706.00 565,998.00 622,920.00 725,406.00
Gross Profit 1,594,180.99 1,839,360.00 2,124,864.00 2,338,560.00 2,702,568.00

Less: Operating Expenses

Depreciation Expense 154,505.61 154,505.61 154,505.61 154,505.61 154,505.61
Utitlities Expense 46,560.00 48,888.00 51,332.40 53,899.02 56,593.97
Rent Expense 180,000.00 192,000.00 204,000.00 216,000.00 228,000.00
Maintenance Expense 144,000.00 144,000.00 144,000.00 174,000.00 174,000.00
Advertising Expense 5,000.00 5,000.00 5,000.00 5,500.00 5,500.00
Permits and Licenses 7,750.00 7,750.00 7,750.00 8,137.50 8,137.50
Supplies Expense 2,001.00 2,101.05 2,206.10 2,316.41 2,432.23
Wages Expense (See Payroll Schedule) 436,800.00 436,800.00 436,800.00 499,200.00 499,200.00
13th Month Pay 36,400.00 36,400.00 36,400.00 41,600.00 41,600.00
SSS Contribution (See Payroll Schedule) 38,400.00 38,400.00 38,400.00 40,320.00 40,320.00
Pag-Ibig Contribution (See Payroll Schedule) 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00
Philhealth Contribution (See Payroll Schedule) 6,006.00 6,006.00 6,006.00 6,864.00 6,864.00
Total Operating Expense 1,062,222.61 1,076,650.66 1,091,200.11 1,207,142.54 1,221,953.31

Earnings Before Income Tax 531,958.38 762,709.34 1,033,663.89 1,131,417.46 1,480,614.69

Income Tax 30% 159,587.52 228,812.80 310,099.17 339,425.24 444,184.41
Earnings After Income Tax 372,370.87 533,896.54 723,564.72 791,992.22 1,036,430.28

25
4.2 Schedule of Depreciation

Furniture’s and fixtures

Item Price Qty Total Cost Useful Life Depreciation
Tables and Chair 2,859.00 3 8,577.00 10 857.70
Exhaust fan 899.75 4 3,599.00 8 449.88
Fire Extinguisher 1,150.00 1 1,150.00 8 143.75
Transparent Curtains 2,300.00 2 4,600.00 10 460.00
Drum Water 1,200.00 2 2,400.00 15 160.00
Plastic Pail 160.00 4 640.00 6 106.67
Renovation Costs 300,000.00 15 20,000.00
Total 320,966.00 22,177.99

Machineries and Equipment

Item Price Qty Total Cost Useful Life Depreciation
Automatic carwash 950,400.00 1 950,400.00 8 118,800.00
Vacuum Cleaner 6,000.00 2 12,000.00 6 2,000.00
Water Tank 1L 10,000.00 3 30,000.00 10 3,000.00
Pressure Washer 5,500.00 2 11,000.00 6 1,833.33
CCTV 800.00 2 1,600.00 8 200.00
Speaker 12,000.00 1 12,000.00 7 1,714.29
POS 20,000.00 1 20,000.00 5 4,000.00
Sliding Window 1,560.00 5 7,800.00 10 780.00
Total 1,044,800.00 132,327.62

Total 1,365,766.00 154,505.61

Year Accumulated Net Value

Depreciation
1 154,505.61 1,211,260.39
2 309,011.22 1,056,754.78
3 463,516.83 902,249.17
4 618,022.44 747,743.56
5 772,528.05 593,237.95

26
4.3 PROJECT COST

FIXED ASSET

Furniture’s & Fixtures, 1,365,766.00

Machineries and Equipments

Cleaning Supplies 33,948.00

Total Asset 1,399,714

Operating Capital
Salary for 3 months 109,200.00

Rent 45,000.00

Utilities Expense 11,640.00

Permits and Licenses 6,850.00

Total Operating Capital 172,690

4.4 OWNER`S EQUITY

27
 Megalite Automatic Carwash
Statement of Changes in Partner's Equity
For the Years ended 2020-2022
Year 1 Year 2 Year 3 Year 4 Year 5
xxxxxx, Capital

Capital balances, Beginning 2,000,000.00 2,372,146.41 2,905,776.94 3,629,030.87 4,419,802.99

Additional Capital
Investments

Net Income (Loss) 372,146.41 533,630.54 723,253.92 790,772.12 1,035,114.98

Less: Drawings

Capital Balances, Ending 2,372,146.41 2,905,776.94 3,629,030.87 4,419,802.99 5,454,917.97

4.5 Balance Sheet

28
 Megalite Automatic Carwash
Projected Balance Sheet
For the years ended Year 1 to Year 5
Schedules Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current asset
Cash 1,005,612.13 1,762,935.76 2,721,941.44 3,696,516.49 4,990,832.29
Supplies 400.20 420.21 441.22 463.28 486.45
Total Current Assets 1,006,012.33 1,763,355.97 2,722,382.66 3,696,979.77 4,991,318.73

Non-current asset 2
Furnitures and Fixtures 298,788.01 276,610.02 254,432.03 232,254.03 210,076.04
Machineries Equipment 1,233,438.38 1,101,110.76 968,783.14 836,455.52 704,127.90
Total Non Current Assets 1,532,226.39 1,377,720.78 1,223,215.17 1,068,709.56 914,203.95

Total Assets 2,538,238.72 3,141,076.75 3,945,597.83 4,765,689.33 5,905,522.68

Liabilities
Current Liabilities
Tax payable 159,491.32 228,698.80 309,965.97 338,902.34 443,620.71
SSS Contributions Payable 4,800.00 4,800.00 4,800.00 5,040.00 5,040.00
Pag-ibig Contributions Payable 800.00 800.00 800.00 800.00 800.00
PhilHealth Contributions Payable 1,001.00 1,001.00 1,001.00 1,144.00 1,144.00
Total Current Liabilities 166,092.32 235,299.80 316,566.97 345,886.34 450,604.71

Owners's Equity
James Asher, Capital 2,372,146.41 2,905,776.94 3,629,030.87 4,419,802.99 5,454,917.97

Total Liabilities and Owner's equity 2,538,238.72 3,141,076.75 3,945,597.83 4,765,689.33 5,905,522.68

Schedule 2: Non-Current Assets

Furniture’s and
Fixtures Year 1 Year 2 Year 3 Year 4 Year 5

Original Cost 320,966.00 320,966.00 320,966.00 320,966.00 320,966.00

Accumulated
Depreciation 22,177.99 44,355.98 66,533.98 88,711.97 110,889.96

Carrying Value 298,788.01 276,610.02 254,432.03 232,254.03 210,076.04

Machineries
Equipment Year 1 Year 2 Year 3 Year 4 Year 5

1,365,766.0 1,365,766.0 1,365,766.0 1,365,766.0 1,365,766.0

Original Cost 0 0 0 0 0
Accumulated
Depreciation 132,327.62 264,655.24 396,982.86 529,310.48 661,638.10

1,233,438.3 1,101,110.7
Carrying Value 8 6 968,783.14 836,455.52 704,127.90

29
 1,532,226.3 1,377,720.7 1,223,215.1 1,068,709.5
Total Carrying Value 9 8 7 6 914,203.95

4.6 Cash Flow

Megalite Automatic Carwash

Statement of Cash Flows
For the Years ended 2020-2022
Year 1 Year 2 Year 3 Year 4 Year 5
Cash flow from Operating Activies
Net income 372,146.41 533,630.54 723,253.92 790,772.12 1,035,114.98
Add non-cash expense
Depreciation expense 154,505.61 154,505.61 154,505.61 154,505.61 154,505.61
Subtract increase in current asset
Increase in Supplies (400.20) (20.01) (21.01) (22.06) (23.16)
Add increase in current liability
Increase in Incometax Payable 159,491.32 69,207.48 81,267.16 28,936.37 104,718.37
Increase in SSS - Contribution Payable 4,800.00 - - 240.00 -
Increase in Pag-Ibig Contribution Payable 800.00 - - - -
Increase in Phil Health Contribution Payable 1,001.00 - - 143.00 -
Cash Generated from operations 692,344.13 757,323.62 959,005.69 974,575.05 1,294,315.80

Cash flow from Investing Activities

Furnitures and Fixtures 320,966.00
Machineries Equipment 1,365,766.00
Net Cash used in investing Activities 1,686,732.00 - - - -

Cash flow from Financing Activities

Capital Investment Asher Acosta 2,000,000.00
Net Cash used in Financing Activities 2,000,000.00 - - - -

Net Increase in Cash and Cash Equivalents 1,005,612.13 757,323.62 959,005.69 974,575.05 1,294,315.80
Cash and Cash Equivalents in the Beginning of Period - 1,005,612.13 1,762,935.76 2,721,941.44 3,696,516.49
Cash and Cash Equivalents at the end of the period 1,005,612.13 1,762,935.76 2,721,941.44 3,696,516.49 4,990,832.29

4.7Source of Financing

SHAREHOULDER SHARES SOURCE

xxxxxxxxxx 100% Personal Saving

xxxxxxxxxxxxxxxxx 100% Personal Saving

30
 CHAPTER V

SOCIO ECONOMIC ASPECT

This chapter shows how economic activities affect the performance of the proposed
business. It is concerned with the benefit that the business will give to the society as a
whole. It is a must that the company should perform its responsibility in the society to be
able to help the entire nation in terms of economic growth.

5.1 GOVERNMENT CONTRIBUTION

The business has the responsibility to pay taxes. This will benefit the government with
regards to tax matters. This means that more funds would be generated by the
government. Additional funds may help the government on assisting its ongoing projects
or for creating new ones through which the people's welfare will be given more
emphasis.

1 BASIC PERMITS NEEDED BY THE BUSINES

One of the major requirements of the Philippine government to fully register a company
is to secure the business permits. The local government unit (LGU) having jurisdiction
on a company or individual’s place of business issues the permit/license in order to
complete the registration process and enable the company or individual to start it’s
business in the locality.

The following are the business permits/licenses that are generally required to all
business industries.

31
 DTI BUSINESS NAME (BN) REGISTRATION CERTIFICATE
The Department of Trade and Industry (DTI) is responsible for realizing the
country's goal of globally competitive and innovative industry and services sector
that contribute to growth and employment generation. Registering a business
name with DTI is the first step to becoming a sole proprietor as it gives the sole
right to use the business name

 BARANGAY CLEARANCE

The Barangay Clearance is one of the Philippine government issued

identification documents needed for many important business or financial
transactions , job and personal requirements. In getting a barangay clearance,
just visit the barangay office where the business is located.

 SEC CERTIFICATE OF REGISTRATION

The Security and Exchange Commission’s (SEC) Company Registration System

(CRS) is the full automation and online pre-processing of corporations and
partnerships, licensing of foreign corporations, amendments of the articles of
incorporation and other corporate applications requiring SECs approval. The
SEC is mandated to register the domestic and foreign corporations doing
business in the Philippines. SEC takes pride to be in the forefront of introducing
and implementing reforms by making business registration process simple,
faster, efficient and transparent.

 MAYOR’S BUSINESS PERMIT

The Mayor’s Permit (or Business Permit) is a document issued to a person or

entity who shall establish, operate or conduct any business, trade or activity
within the locality. Such document will be approved only after submission of
requirements, payment of necessary taxes and fees imposed thereon.

32
 The processing of Mayor’s or Business Permit should be undertaken by the
business owner himself/herself or by his/her duly authorized representative.

 BIR CERTIFICATE OF REGISTRATION

The Bureau of Internal Revenue (BIR) is the national government regulatory

agency that regulates finance, taxation and monetary policy in the Philippines. It
collects internal revenue taxes, fees and charges and enforces all forfeitures,
penalties and fines connected with tax matters for the Philippine government.

 SSS EMPLOYER’S REGISTRATION

The Republic Act (R.A.) No. 1161, as amended by R.A. No. 8282 or the Social
Security Act of 1997 provides that, "It is the policy of the state to establish,
develop, promote and perfect a sound and viable tax-exempt social security
system suitable to the needs of the people throughout the Philippines, which
shall promote social justice and provide meaningful protection to members and
beneficiaries against the hazards of disability, sickness, maternity, old age, death
and other contingencies resulting in loss of income or financial burden ".

 PHILHEALTH EMPLOYER’S REGISTRATION

All government and private sector employers are required to register with Phil
Health to enable them to provide social health insurance coverage to their
employees.

 PAG IBIG EMPLOYER’S REGISTRATION

The Republic Act 7835 mandates employers to contribute to the Home

Development Mutual Fund (HDMF), otherwise known as the Pag-IBIG Fund. It is
a provident savings system that supplies housing loans to public and private

33
 employees, as well as to self-employed persons who apply for membership. It
provides housing and land acquisition loans to its members with the lowest
interest rate and are payable for up to thirty (30) years.

 DOLE REGISTRATION

All businesses registered in the Philippines and has 5 or more employees must
register with the Department of Labor and Employment (DOLE). The DOLE
protects the rights and welfare of workers in the Philippines. It is of importance to
register with DOLE to avoid labor cases filed against the company.

5.2 EMPLOYEE’S CONTRIBUTION

Business owners need employees that are able to get the job done, because employee
performance is critical to the overall success of the company. Business leaders need to
understand the key benefits of employee performance so that they can develop
consistent and objective methods for evaluating employees. In doing so it helps
determine the strengths, weaknesses and potential managerial gaps in the business
organization.

1. MINIMUM WAGE

R.A. 6727, otherwise known as the "Wage Rationalization Act", was enacted
into law in 1989 in order to address such a situation at the timeas well as
similar situations that may arise since then. It was intended to rationalize the
fixing of wages and the improvement of productivity throughout the country.
2. HOLIDAY PAY

The President is tasked by law under the provisions of Republic Act 9492 to
issue a Proclamation prior to their occurrence to finalize the specific date of
their observance. There are 9 regular holidays in the Philippines, namely:

34
  New Year’s Day – January 1, 2021 (Thursday)
 Araw ng Kagitingan – April 9, 2021 (Friday)
 Maundy Thursday – April 9, 2021 (Friday)
 Good Friday – April 10, 2021 (Saturday)
 Labor Day – May 1, 2021 (Saturday)
 Independence Day – June 12, 2021 (Saturday)
 National Heroes’ Day – August 31, 2021 (Tuesday)
 Bonifacio Day – November 30, 2021 (Tuesday)
 Christmas Day – December 25, 2021 (Saturday)
 Rizal Day – December 30, 2021 (Thursday)

Note: Official announcement from the Office of the President for the
specific dates for Eid’lFitr and Eid’lAdha will be issued after approximate
dates of these Islamic holidays have been determined (in accordance with
the Islamic calendar Hjira, the lunar calendar or upon Islamic astronomical
calculations, whichever is possible or convenient).

 13TH MONTH PAY

Under Presidential Decree No. 851, employers from the private sector in the
Philippines are required to pay their rank-and-file employees a 13th Month Pay
not later than December 24 every year. The 13th month pay is equivalent to
one twelfth (1/12) of an employee’s basic annual salary.

It is prescribed by Philippine labor laws as a mandatory benefit and should not

be confused with the “Christmas bonus” commonly practiced in the local
business setting. The Christmas bonus is not a demandable and enforceable
obligation and can only be released upon an employer’s voluntary discretion. .

35
REFERENCE

36
https://www.davison.com/blog/history-tuesday-the-car-wash/#:~:text=The%20first
%20%E2%80%9Cautomatic%E2%80%9D%20conveyor%20car,%2C%20where
%20else%E2%80%94in%201940.&text=Then%2C%20in%201951%2C%20Archie
%2C,automatic%20car%20wash%20in%20Seattle.

https://bnrs.dti.gov.ph/search?
keyword=MEgalite+AUToMATIC+CAR+WASH&criteria=exact&sort_by=business_name
&sort_order=asc

37
APPENDICES

38
Objective:
An opportunity to my knowledge for my pursuance to develop and applies my skill and
education.

Qualifications:
● Can work effectively with diverse group of people.
● Highly trainable, fast learner. Adapt well to changes and pressures in
workplace.
● Ambitious and hardworking, committed to excellence.

Job Experience:

McDonald`s Marcos Highway

San Roque Marikina
(Sept 16 2014 – Feb 01 2018)

Education Background:
Elementary:
Jesus Christ Saves Global Outreach Christian Academy 2000 - 2005

High School:
Roosevelt College Rodriguez 2005 - 2009

College:
Saint Joseph College of Rodriguez 2017 – up to Present

Character Reference:
Shiniko Burac

39
Manager
Marikina City
09129464740

Personal Data:
Age : 28
Date of Birth : 10 – 24 - 91
Place of Birth : Marikina City
Height : 5`4
Weight : 175 lbs
Civil Status : Single
Religious : Born Again
Mother Name : xxxxxxxxxxx
Occupation : House Wife
Father Name : xxxxxxxxxxxxxxxxx
Occupation : Business Man

I hereby certify that the above information are true and correct to the best of my
knowledge and belief.

40