MPU3233

BASIC ENTREPRENEURSHIP

GROUP ASSIGNMENT

BUSINESS PLAN:MESRA LAUNDRY

PREPARED BY:

1. SHASHIKUMARAN A/L MARIMUTHU (ID: 201501040100)

2. MUHAMAD FIRDAUS BIN MAHAMUD (ID: 201501040083)
3. SITI FAIRUZ BINTI MUSA (ID: 201501040064)

SUBMITTED TO:

MISS SITI NADIA ABDULLAH

SEMESTER JANUARY 2015

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Question

You are required to choose one imaginary product, business and develop a Business Plan
regarding that business:

1. A business needed in your town: MESRA LAUNDRY

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 TABLE OF CONTENT

CHAPTER PAGE NUMBER

Part One: Introduction 5
A: Executive Summary
B. Business Philosophy/Mission Statement
C. Product/Service Description
D. Self-Analysis
Part II. Marketing Research 13
A. Demographic Data
B. Competition
C. Market Segment Analysis
D. Analysis of Potential Location
Part III. Organization and Personnel Plan 15
A. Ownership Choices
B. Personnel Needs
Part IV. Marketing Plan 17
A. Proposed Product or Service Plan
B. Proposed Pricing Policy
C. Proposed Promotional Plan
D. Place (distribution)
Part V. Financial Plan 21
A. Income Statement
Part VI: Conclusion 24
Part VII: Recommendation 25
Appendix 27
References 29

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BUSINESS
PLAN OF
MESRA
LAUNDRY

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Part One: Introduction
A: Executive Summary
MESRA Laundry is a proposed business of laundry and the business will be started in June 2015.
Services that will be provided are normal washing, express dry cleaning, ironing and optional
folding. This business location is situated at No. 15, Lorong Pinang 85, Kompleks Perniagaan
Gelugor, 11700 Pulau Pinang. It is near residential and university areas. Therefore, there will be
a great potential market for this business. Moreover, it has no competitors as compared to other
business and services. This year economic situation is more stable, so what we expect in 2015 is,
Malaysia's economic will continue to grow. As the country prospers, more people are employed,
making standard living of people in Malaysia getting better each year. Furthermore our ways of
thinking has changed people no longer assume that laundry is only necessary for wealthy society.
We believe that our business have potential in this millennium especially in urban area because
people are busy with studies and works. As the consequences they have limited time to do house
chores like washing clothes. Therefore they prefer to send their clothes to the nearest laundry
shop. Related to this situation, our main focus is to students and residents of Gelugor area.
Another factors that influencing us to choose this laundry services is because nocompetitors in
Gelugorarea making it easier for us as a new entrepreneur to engage in the business because this
service do not require large capital and professional workers.MESRA Laundry is a full-service
laundry (washing, drying, ironing and optional folding) services dedicated to consistently
providing high customer satisfaction by rendering reliable machines and furnishing a clean,
enjoyable atmosphere at a competitive price/value relationship.

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B. Business Philosophy/Mission Statement
Our Mission: To provide convenient, clean, and friendly laundry service.
Our Motto: "Professional, convenient, friendly service and competitive pricing"
i) Internal Goals

• Able to train and develop skills of the workers especially their communication skill such as
relation between staffs in a business.

• Maintain good working environment where close interaction flow from top-level management
to the lower level with good communication standard.

ii) External Goals

• To cover all the expenses in two years

• To be an established company by another two years

• To be able to offer varieties of services to all customers relate to their needs and wants.

iii) Business Objectives

Below are some of the objectives of MESRA Laundry services:

• An introduction of services to compete with other operators as well as to establish a strong

foothold in the laundry market services.

• To create a new perception towards services especially about it benefit and the quality

• Provide high quality and well establish services to attract people especially those workaholics.

• Less the community burden and give a little bit welfare contribution.

iv) Goals

Setting a goal can be a crucial decision for company, as the management would have to
determine the direction of the company towards reaching. It should reachable and within the
capacity and reach of the company. We are dividing the goals into 2 areas, namely:

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•Internal goal that could be achieved through the internal planning training and prudent strategy.

•External goals that could be attained through smart partnership, strategic marketing and
promotion.

v)Keys to success in our business are:

i) Location: the potential business is to be located near university campus and housing
area where it's the closest and most convenient place to get services. In addition, there
are many apartment complexes located nearby.
ii) Convenience: offering clients services ranging from full-service washing and dry
cleaning to optional folding, and during extended business hours to serve all
categories of customers.
iii) Environment: providing an environment conducive to giving clean, friendly, and
professional service.
iv) Reputation: long-term reputation resulting from friendly, professional service will
encourage customers to return.

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C. Product/Service Description
MESRA Laundry upon commencement of full operations, will supply full washing, dry cleaning,
ironing and optional folding services. We will also provide quality products to ensure clean
washing of clothes as well as household retail products to meet the demand for easy access for
the neighborhood. MESRA Laundry will be committed in providing professional, friendly,
prompt, and, most importantly, convenient services.
D. Self-Analysis
Through self-analyzing of the business plan, the outlines of our business are as below:
• This business plan is prepared by MESRA Laundry to obtain a loan for the amount of
RM100, 000.00 from Bank Rakyat.
• Profit selling forecast have to be expected objectively and critically so that the plan can be
practical.
• Besides, the project have to evaluate project viability and growth potential that can be solve any
problems later in business and decrease the business's risk.
• It also will be a guideline for workers in order to know their jobs, functions and their
responsibilities thus a good relationship between workers can be created.
• This business plan also will enable other external investors like shareholders, banks and
supplier to invest in our business.
• It also enables us to carry out a survey to indicate whether the plan can achieve success or not.

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E. Company Background
 Business Name: MESRA Laundry
 Business Address: No. 15, Lorong Pinang 85, Kompleks Perniagaan Gelugor, 11700
Pulau Pinang
 Correspondence Address: No. 15, Lorong Pinang 85, Kompleks Perniagaan Gelugor,
11700 Pulau Pinang
 Phone number: 04-2273456
 Form of the business: Partnership
 Email Main activities: mesra@laundry.com
 No.of registration: In progress
 Date of commencement: June 2015
 Initial own capital: Partners Contribution :- RM 90,000
1. M. Shashikumaran - RM 30,000
2. Muhamad Firdaus Bin Mahamud - RM 30,000
3. Siti Fairuz Binti Musa - RM 30,000
 Services: Normal washing, dry cleaning, ironing & folding
 Bank: Bank Rakyat

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F. Partnership Agreement

1) Parties to the agreement:

1. M. Shashikumaran

2. Muhamad Firdaus Bin Mahamud

3. Siti Fairuz Binti Musa

2) Nature and place of business:

• Partners had agreed to carry on the business of laundry services activities.

• The business will be operating at No. 15, Lorong Pinang 85, Kompleks Perniagaan Gelugor,
11700 Pulau Pinang 3) Firm Name

• The firm name that has been agreed between partners and registered under the

Registration of Business is MESRA Laundry.

3) Duration of Partnership:

• The partnership business will be commencing on 1 June 2015

4) Provision of Capital:

• All partners agreed to contribute the capital to the partnership business as follows:

1. M. Shashikumaran - RM 30,000

2. Muhamad Firdaus Bin Mahamud - RM 30,000

3. Siti Fairuz Binti Musa - RM 30,000

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5) Division of Company and Profits:

• It is being agreed between partners to the division of capital, profits and losses in the proportion
as follows:-

1. M. Shashikumaran –1/3

2. Muhamad Firdaus Bin Mahamud –1/3

3. Siti Fairuz Binti Musa –1/3

6) Partnership Property

• All property and rights and interest in property originally brought into the partnership stock or
acquired whether by purchase / otherwise on accounts of the firm or for the purposes and in the
course of the partnership business are called partnership property and must be held and applied
by the partners exclusively for the purposes of the partnership and in accordance with the
partnership agreement. Property bought with money belonging to the firm is deemed to have
been bought on account of the firm.

7) Movement of Business

1. M. Shashikumaran – General Manager

2. Muhamad Firdaus Bin Mahamud – Administration Manager &Operational Manager

3. Siti Fairuz Binti Musa – Marketing Manager &Financing Manager

8) Methods of Dissolving a Partnership

• Due to the death or bankruptcy of any partners will cause a partnership to be dissolved.

• However the partners are advised to continue the firm activities in the event of death or
bankruptcy

9) Change in the Firm

• All partnership is able to introduce a new member and it is necessary to make provisions for a
retiring partner or agent of deceased partners to appoint another as a new partner.

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G. Company's Logo

The logo will illustrate the activities done in our laundry. Bright colours are chosen to represent
our hope for bright future. Reasons why those color are chosen are explain below:

RED - Represent our willingness to bear the risk by involving in this type of business

YELLOW - This royal color shows that we offer first class services to the customer

BLUE - Represent inter-group unity that exist between us

GREEN- It is our priority to maintain the cleanliness of our customer's garment

MESRA LAUNDRY

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Part II. Marketing Research
A. Demographic Data
MESRA Laundry will start operating this June 2015. This business will be operated in Gelugor,
Penang since all the business partners settles down here and it has been finalized that Penang is
the most strategic place to start with this business. Penang is the second smallest state in
Malaysia after Perlis but in terms of population Penang has the ninth largest population in
Malaysia. Penang geographically divided into two parts, namely mainland and island. MESRA
Laundry is located in Gelugor, Georgetown which is strategically near to Universiti Sains
Malaysia (USM). The business location also is in close proximity to residential areas such as Sri
Saujana Apartment, Taman Desa Airmas and many more. Before planning for this business, we
have been designing and managing a proactive approach by providing cash budget for
investment control regularly if there is a surplus of cash. Through cash budget, the business can
represent the net profit, loss and balance end and beginning of each month in the specified time
period.

B. Competition
Even though we don’t have any competitors, but we have few strategies to overcome competitors
in the future. Those are the strategies:
 Establishing dominance in the business.
 Establishing a reasonable price.
 Diversity in services.
 Best services to customers.

C. Market Segment Analysis

The main target of our customers are the students of Universiti Sains Malaysia (USM). USM has
a student population of around 40000 people in 2015. This makes it one of the largest
universities in Malaysia in terms of number of students. In 2006, USM has about 30,000
students, including 7,000 graduate class. Number of lecturers 1,600 people. With the number of
students, we believe that business will be carried out successfully. There are also many
residential area near to this proposed laundry, where most of the residents are working adults. So,
this can be a good chance for MESRA Laundry to spread its wings. MESRA Laundry also
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focuses on the customers from nearby hotels. From the study we have conducted, we found that
there are four hotels that could potentially be a major customer, namely:
1) A Hotel-only 1.1 km from MESRA Laundry and has 21 rooms.
2) Vistana Hotel- only 2.2 km from MESRA Laundry and has 419 rooms.
3) Hotel Equatorial Penang- only 3.3 km from Mesra Laundry and has 662
rooms.
4) The Krystal Suite Penang- only 4 km from Mesra Laundry and has 86 rooms.

D. Analysis of Potential Location

As we all know, Penang has a high population density with 1.56 million of population. MESRA
Laundry is located near Universiti Sains Malaysia (USM) and residential areas such as Desa Sri
Saujana Apartment, Taman Desa Airmas and Pekaka make the selected location is correct. The
location situated at the edge of the road is a strategic area and give an advantage to the premise
because customers can visit the laundry easily. Parking is also available for customer of MESRA
Laundry.

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Part III.Organization and Personnel Plan
A. Ownership Choices
The proposed business falls into partnership type of ownership. There are 3 partners
involved in this business. This partnership entitles all partners to the ownership and
liabilities where every loss will be shared among partners. Meanwhile, all profits will be
divided equally to all partners. Through this type of ownership, any business-related
decisions must be agreed upon by all the partners.
B. Personnel Needs
i) Organization Structure of Business:
The organizational structure is formed by covering all aspects of business
management as a business entity and it includes some functions. Overall, the
organizational structure for this business are as follows:

GENERAL MANAGER

ADMINISTRATION
& OPERATIONAL MARKETING &
MANAGER FINANCING
MANAGER

STAFFS

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ii) Functions & Roles of Managers:
1) General Manager:
- Has responsibility in all aspects of the business administration
-Coordinates the management and business operations
-Ensures all staffs are working base on their work specifications.
2) Marketing& Financing Manager:
-Preparing budget and seeking for financial sources
-Controlling the financial progress in terms of expenditure, income and
anything related
- Has responsibility in expanding the market and also in finding new
opportunities to increase company’s profit
-Responsible in ensuring the company’s income is consistent.
3) Administration & Operational Manager:
-Ensuring the services given to the customers are guaranteed and satisfying
-Ensuring the technical systems are in good condition and functioning
- Checking the staffs attendance& overall performance

iii) Salary

Total Salary
Total Salary Per
Num. Designation per Month
Year (RM)
(RM)

(1000x3)
1 Managers (3 people) 36,000.00
3000.00

(800x5)
2 48,000.00
Staffs (5 people) 4000.00

TOTAL 7,000.00 84,000.00

Table 1: Table shows salaries of managers and staffs in laundry

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 iv) Management Strategies
Business operations and staffs are very important in the effort to develop this
business. Here it emphasize the philosophy of "Clean & Fast" service dedicated
to customers consistently providing high customer satisfaction by rendering
reliable machines and furnishing a clean, enjoyable atmosphere at a competitive
price. To achieve all these, there are few management strategies to follow:
- Cultivate team work policy among the partners and staffs
- Welcoming ideas and suggestions from everyone for the betterment of the
business
- To upgrade their knowledge and skills by attending courses and workshops.

Part IV. Marketing Plan

a) Proposed Service Plan
MESRA Laundry will, upon commencement of operations, supply full washing, drying,
and optional folding services. We will also provide quality products to ensure clean
washing of clothes as well as household retail products to meet the demand for easy
access for the neighborhood. MESRA Laundry will be committed in providing
professional, friendly, prompt, and, most importantly, convenient services.The keys to
success in Mesra Laundry are:
-Location: the potential business is to be located in residential area and University Sains
Malaysia (USM) campus, where it's the closest and most convenient place to get services.
In addition, there are many apartment complexes located nearby.
-Convenience: offering client services ranging from full-service washing and drying to
optional folding, and extended business hours.
-Environment: providing an environment conducive to giving clean, friendly, and
professional service.
-Reputation: long-term reputation resulting from friendly, professional service will
encourage customers to return.

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b) Proposed Pricing Policy
Below are the proposed prices for the services offered at MESRA Laundry:
i) Normal Wash:
Type Kg/set Price (RM)
Clothes 1 2.50
Comforter 1 10.00
‘Toto’ 1 15.00

ii) Iron:
Type Set/Pieces Price (RM)
Shirt 1 1.20
Pant 1 1.20
‘Baju Kurung’ / 1 pair 2.00
‘Baju Melayu’
T-shirt 1 1.00
Blouse 1 1.00

iii) Dry Clean:

Type Set/Piece Price (RM)
Shirt 1 5.00
Pant 1 5.00
‘Baju Kurung’ / 1 pair 12.00
‘Baju Melayu’

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c) Proposed Promotional Plan
Marketing ideas for MESRA Laundry Service business are:
 Doing a house-to-house sales call and letting know the people in the neighborhood about
the business and also the kind of services the laundry offers
 Print fliers or brochures and have them distributed within the locality.
 Visit offices, workplaces and corporate organizations and let them know the type of
services the laundry offers
 Place of directional sign post at strategic locations within the neighborhood.
 Advertise the business on print and electronic media
 Putting the business on the web and get on social platforms like Facebook, Twitter and
others
d) Place (distribution)
Location of the potential business is to be located in residential area and University Sains
Malaysia (USM) campus, where it's the closest and most convenient place to get services.
In addition, there are many residential apartments and houses located nearby. The
targeted places are:
 Students (USM)
 Residents from Gelugor, Penang
 Factories workers in the surrounding area;
 Walk-in customers.
e) Operation Process
In general, MESRA Laundry services provides four types of services which are normal wash,
iron, dry cleaning, curtain/comforter wash and optional folding. All this services will be
operate under the same roof with administration, marketing and financial department.
Normal working hour of operation department is six and half hour. Since this department is
the most important department in our company, we have maximum working hour. The first
services that is provided in our company and most favorable among the customer is normal
wash. Once order is received from customer, the clothes will be separated according to the
owner of the clothes and then put into a washer. A washer can operate with the capacity of 1
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to 3 kg with 20 minutes operation hour. Since our company does not operate as traditional
laundry service, then the clothes which already wash and spin will put into the dryer for 20
minutes. After that the clothes will go into 2 stages, according to the needs of customer
whether the clothes will be iron or just delivered to them in bulk. A second service provided
in our laundry company is ironing. The reason why we are providing this type of service is
based on our survey that we did. The survey gives us result that people nowadays busy
routine life make them does not have enough time to manage their own attire. The best
solution to get out from their problem is just give their clothes to the person who can do the
job and pay them at reasonable price. When order is received the clothes will put at the
ironing section. The job will be done by our worker, then hang and ready to deliver. A third
service which is available at our laundry company is dry cleaning. This services will treat
certain type of cloths that need special treatment and maintenance such as Korean Silk,
velvet and blazer. As usual, when order is received, cloths will separate and put together will
other dry cleaning cloth. Then, the cloths are put into special machine for dry cleaning. This
does not use normal powder to wash but use chemical substances. The cleaning will take
about half an hour. Dislike normal wash, dry cleaning cloth will not put into dryer machine
since the clothes are totally finished. After that the cloths will be bought to the iron section
and finally delivered. Last services provided in our company is curtain, comforter, blanket
and bed sheet cleaning. This service becomes popular among customer because they does not
have proper machine in their house to wash these cloths. The operation flow for this type of
service basically is same as normal wash. After all the stage of cleaning is completed, then it
is delivered to customer. As the beginning, all the services mentioned above will be
provided. In future we are planning to provide many more services in order to meet market
demand such as door to door service and office services. Since that services need a large
amount of capital, we need to focus on business growth first before planning to expand the
business. We also offer optional folding service for customer who requested it.

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Part V. Financial Plan

The financial plan depends on important assumptions, most of which are shown in the following
table. The key underlying assumptions are:

 We assume a slow-growth economy, without major recession.

 We assume of course that there are no unforeseen changes in technology to make
products immediately obsolete.

 We assume access to equity capital and financing sufficient to maintain our financial plan
as shown in the tables.

A.Income Statement

MESRA Laundry Expected Income Statement 2015

NO. MATTER TOTAL (RM)
01. Expected income of the year 175,000.00
2015
02. Operational 10,000.00
Marketing 2,000.00
Administration 84,000.00
Others 1000.00
Bank Loan 5000.00
Depriciation Costs 10,000.00
Deficit: RM175,500.00 – RM112,000.00 RM63,500.00

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B.Capital Source:

Num. Source Amount(RM)

1 M.Shashikumaran 30, 000.00
2 Mohd. Firdaus 30, 000.00
3 Siti Fairus 30, 000.00
4 Bank Loan 100, 000.00
TOTAL 190, 000.00

C.Laundry Startup Cost

Num. Expenditure Amount (RM)

1. Machineries 100,000.00
2. Detergents 20,000.00
3. Electrical Appliances 10,000.00
4. Stationeries 2000.00
5. Marketing & Promotion 10,000.00
6. Rentals 10,000.00
7. Others 10,000.00
TOTAL 162,000.00

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D.List of Suppliers:
Num. Name & Address of Suppliers Supplies
TAN ELECTRICAL SERVIC NO.30Jalan Perwira 1
1. Taman Tun Aminah Machineries
11200 Gelugor, Pulau Pinang
WELLMAC MACHINERY SDN.BHD.
2. 50 Jalan Sutra 3, Tmn. Sentosa Machineries & Equipments
14000 Bukit Mertajam, Pulau Pinang.
SYARIKAT CHENG SOON NO.77,Jalan Sri Teberau
3. Baskets, hangers and clips
14300 NibongTebal, Pulau Pinang.
RANK CHEMICAL SDN. BHD
Soaps, Detergents and other
4. NO.18, Jalan Molek 2/5 Taman Molek
softeners
13700 Butterworth, Pulau Pinang.

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Part VI: Conclusion

Based on the design and revenue projections that were presented, we are very confident that this
will be the underlying business which can give profitable returns. Projections are made for the
first year of operation after getting funding and it is very conservative as to take into account the
factor of business is still in its early age.We have made studies and systematic plan to enable
MESRA Laundry run smoothly. Consequently, this laundry is very optimistic that it is very
competitive and able to grow in the future. Hopefully bank loan application are highly
considered from the financial institutions because financial aid is really expected for the business
to develop.

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Part VII: Recommendation
There are entrepreneurs who are extremely successful, and everything they touch seems to turn
to gold, and there are some that do not see as much success. While the majority of entrepreneurs
have no problem working hard, not all work smart and possess the following entrepreneurial
qualities responsible for driving success. There are few tips to operate a laundry business
successfully. Nobody said being an entrepreneur is an easy thing to do, and while these qualities
will not translate into automatic success but they can surely help:

a) Location
Location is the most important thing to consider when opening a laundromat. You want to
open your store in an area populated by your target demographic. Whether you’re opening
shop in a college town or a large city, finding a space near apartment buildings is a good
idea. It’s also important not to open a store in a location where there are nearby competitors.
Make sure the building has sufficient parking so customers don’t have to worry about hauling
heavy laundry from the street.

b) Services
Differentiate your laundry business from your competitors’ by offering a wider selection of
services. Wash-and-fold services, where you do laundry for customers, are a popular way to
bring in extra money. Pickup and delivery services, online reservations for machines or a
comfortable location with couches, televisions or free wireless Internet are all offerings that
can attract customers.

c) Customer Service
Although it may seem like a simple business to open, the laundry business requires people
skills. If you want your customers to return, you need to be friendly and courteous. If you
plan to hire employees to staff the location, hire those with good customer service skills. If
you’re the main person on staff during open hours, take the time to greet and talk to your
customers, and ask them about services that they’d like to see in the future.
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d) Consider Hours
Most laundry businesses are open from early in the morning until around 10 p.m. every day.
Weekends are usually busiest, so make sure you’re in business on these days. "Entrepreneur"
magazine recommends keeping alternate hours depending on your customer base. If there are
lots of third-shift workers or college students in your area, staying open 24 hours could help
differentiate your business from competitors.

e) Uphold Reputation
Customers respond to a clean environment and professional staff. Laundromats get lots of
advertising through simple word of mouth. Power Home Biz websites recommends offering
an incentive program where new customers and customers who recruit referrals receive free
washes or other services.

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Appendices

Appendix 1: The flow chart of the processes in MESRA Laundry

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 Appendix 2: Location of MESRA Laundry

MESRA Laundry

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Kadir, A. I. (2012). sulia-butterfly.blogspot.com. Retrieved October Ahad, 2014, from
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Yung, Judy; Chang, Gordon H.; Lai, Him Mark, eds. (2006), "Declaration of the Chinese Hand
Laundry Alliance.", Chinese American Voices, University of California Press, pp. 183–
185 (including notes), ISBN 0-520-24310-2

http://www.weingarten.com/shopcentric-documents/sample-documents/samplebusplan
drycleaner.pdf

http://squareapps.blogspot.com/2013/12/tugasan-individu-business-plan-dobi.html

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