Amaza Enterprises Laundary Business Plan - 084408
Amaza Enterprises Laundary Business Plan - 084408
Amaza Enterprises Laundary Business Plan - 084408
BUSINESS PLAN
Laundromat and dry cleaning services
Table of Contents
1. EXECUTIVE SUMMARY..............................................................................................................................0
1.2.1 VISION............................................................................................................................................0
1.2.2 MISSION..........................................................................................................................................0
1.2.3 VALUES..........................................................................................................................................0
1.2.4 OBJECTIVES...................................................................................................................................1
3. THE MARKET................................................................................................................................................5
3.2.2 CORPORATE..................................................................................................................................6
3.2.1 HOSPITALS...........................................................................................................................................6
3.3.1 PROFESSIONALISM......................................................................................................................7
3.3.2 CONVENIENCE..............................................................................................................................7
3.3.3 RELIABILITY.................................................................................................................................7
3.3.4 ENVIRONMENT.............................................................................................................................7
3.3.5 PRICE...............................................................................................................................................7
3.3.6 REPUTATION.................................................................................................................................7
3.3.7 DEPENDABILITY...........................................................................................................................7
3.3.8 LOCATION......................................................................................................................................8
3.4.1 SIZE..................................................................................................................................................8
3.4.4 PROFIT............................................................................................................................................8
3.4.5 COMPETITION...............................................................................................................................8
3.4.6 RISK.................................................................................................................................................9
4.1 STRENGTHS...........................................................................................................................................9
4.2 WEAKNESSES........................................................................................................................................9
4.3 OPPORTUNITIES...................................................................................................................................9
4.4 THREATS................................................................................................................................................9
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AMAZA ENTERPRISES BUSINESS PLAN
1. EXECUTIVE SUMMARY
1.2.2 MISSION
1.2.3 VALUES
The long term objectives of Amaza Enterprises (Pty) Ltd encompass the following:
To grow the business so as to cater for other areas within the De Aar and De Aar
To further diversify the business by offering additional related services
Most of the laundry businesses ‘mass market’ their services and do not actively cater for a specific market. Some
have found themselves suffering losses owing to the fact that they do not have sufficient capacity and other
necessary facilities. There are some instances where clients are turned away or simply told to collect their laundry
after a number of days. This is as a result of existing businesses being under capacity.
The shortfalls in terms of laundry services in in De Aar and surrounding areas opens great opportunities for
ventures such as Amaza Enterprises (Pty) Ltd to canvass.
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Other sources of funding assistance such as The National Youth Development Agency(NYDA), and National
Empowerment Fund (NEF) will also be approached for financial and non-financial support.
The owners of the business will make a contribution in kind (washing equipment) so as to minimize the financial
risk associated with the business proposal. The finance required will be used to purchase capital equipment
(which includes dry-cleaning and laundry equipment) as well as finance the working capital requirements of the
business.
A financial risk was identified and this pertained to the fact the owners’ contribution in comparison to the
required outside borrowings is less. This will be mitigated by retaining a majority of the profits in the business as
opposed to sharing the profits or distributing large salaries until such a time that the outside borrowings are
minimised. The business may also consider equity finance as opposed debt finance.
Other government policies and movements such as Broad Based Black Economic Empowerment, Affirmative
Procurement, Industry Charters and many more will be an opportunity for the business. The possibilities of large
well established firms making procurements from youth owned small businesses will be an opportunity for the
business.
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The expansion of medical services, for example, more clinics, emergency services will expand the linen cleaning
market
The current economic crisis has had an adverse effect on consumers as they are now focusing on tightening their
budgets. Laundry is considered to a luxury service for most individual consumers.
The demand for dry cleaning and laundry services may be low as a result of the economic crisis. However, in
terms of corporate customers like hospitals hotels and other accommodation providers, dry cleaning and laundry
services is a necessity and hence may not be negatively influenced by the economic crisis
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2.3 SOCIAL CHANGES
The increase in double income families will be an opportunity for the business
Social changes such as the high unemployment rate, crime rates will pose threats to the business
The increase in population will be an opportunity for the business
Technology is also playing a role in improving the garments used in the fashion industry. Currently, the fashion
industry displays high quality sophisticated clothing and garments.
Technology has also played a major role in the development of advanced detergents and cleaning chemicals.
Detergents and other chemicals are a key components of the dry cleaning and laundry process
Growth is dependent on critical success factors of individual laundry entities; these include amongst others:
Capacity
Affordable pricing to ensure financial sustainability
Market access: penetration and acquisition of market share
Focusing on specific niche markets
Efficiency and effectiveness
There is currently a movement for eco-friendly technology/ processes
The industry features a number of established laundry businesses and these are growing at a fast pace. The
laundry industry also has numerous self-service Laundromats which are mostly found in shopping districts. They
feature machines that are coin – operated and require the client to supply their own washing powder and fabric
softener. Players in the industry consist of large, medium and small dry cleaning and laundry service businesses.
Large corporate laundry businesses serve large institutions that require a constant flow of clean linen, uniforms
and other garments. They serve entities such as hospitals, hotels, and other government departments. Medium
players mostly include the dry cleaning and laundry service built within major shopping malls. Lastly, small
players include neighborhood dry cleaning and laundry service businesses.
3. THE MARKET
The economic slowdown has had an adverse impact on the market as some consumers consider laundry services
to be a luxury. The economic slowdown has affected the pricing of laundry services as in most instances, the
prices have escalated.
Amaza Enterprises (Pty) Ltd will target the corporate market segment. The business will offer its services to
hospitality based entities, government facilities and individual households. These will encompass lodges, guest
houses, military, hospitals and individual housholds. These entities were deemed to be lucrative targets for
Amaza Enterprises (Pty) Ltd. Key factors such as the size, profitability, growth potential, and risks associated
with the market segments were taken into consideration prior to targeting a lucrative market.
Individuals make up a considerable proportion of the market in De Aar and surroundings. Their needs and
preferences tend to be unique and private oriented. They are considered to be difficult to target as in most
instances, they prefer to do the laundry themselves. They usually only take special garments and articles such as
suits, curtains, linen for laundry care and cleaning. Moreover, they typically have small budgets and bring items
for laundry in small quantities. In addition their spending preferences change as they age.
3.2.2 CORPORATE
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3.2.1 HOSPITALS
Hospitals comprise of private and public institutions. Most hospitals have a dedicated laundry department but (in
some instances) outsource laundry management services. This happens when the patient base is at maximum and
in other instances where they do not have electricity. They usually require bulk laundry management services and
outsource bulk workloads on a contract basis.
There are number of private and public learning institutions in De Aar and surroundings. They range from
primary to tertiary institutions. A number of schools have hostels and as such require laundry management
services. They occasionally require laundry management services from laundry businesses.
These include municipalities and local departments within De Aar and surrounding. The South African Police
Services and The South Africa National Defense Force are also potential segments that require laundry services.
There is potential for bulk workloads that require laundry management services
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3.2.4 MEDIUM AND HEAVY BUSINESSES/ INDUSTRIES
These include entities part of the De Aar Industrial area as well as Shopping Malls and Centres. A number of
leading shopping outlets usually outsource laundry management services so as to care for the uniforms of their
employee’s and other articles deemed appropriate.
Customers value professional services. They seek businesses that can provide them with advice on the best way to
care for their garments.
3.3.2 CONVENIENCE
Convenience in terms of having a one stop dry cleaning and laundry services business that offers same day
service.
3.3.3 RELIABILITY
Reliability is important to the customers. This entails the laundry business being open at convenient hours and
offering great service
3.3.4 ENVIRONMENT
Customers have a preference for clean and environmentally conscious laundry businesses.
3.3.5 PRICE
Price is another key factor when it comes to needs and preference. Consumers seek value for money and have a
preference for affordable prices where quality is not compromised.
3.3.6 REPUTATION
Most consumers value the opinion of others. Therefore it is important for a dry cleaning and laundry services
business to build a strong reputation.
3.3.7 DEPENDABILITY
Consumers seek dry cleaning and laundry services businesses that are consistent with delivery and have a sound
level of trust, reliability and integrity.
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3.3.8 LOCATION
Location is an important factor to consider. Most customers prefer Laundromats that are in close proximity to
their residential areas. They need a Laundromat that they can easily drop off and pick their laundry without the
hassle of spending too much money on transport.
The location of the players in the market is another key factor to consider. The business will face both direct and
indirect competition. Existing well established businesses within De Aar will pose competition to Amaza
Enterprises (Pty) Ltd. These include
In terms of size, the corporate segment is bigger as compared to the individual segment. Corporate clients bring in
a bigger laundry load as compared to individuals.
The corporate segment is growing at a greater rate than the individual market segment.
The growth potential of the corporate segment is higher than the individual segment. The hospitality industry is
growing and having an impact on the growth of the laundry industry.
3.4.4 PROFIT
The corporate segment is more profitable than the individual segment. Moreover corporate client have a bigger
budget as compared to individual clients.
3.4.5 COMPETITION
Competition for the corporate segment is higher than the individual market segment and the laundry industry
centers around the price charged for the type of dry cleaning and laundry services offered.
Indirect competition will emanate from businesses that have their own dry cleaning and laundry facilities such as
hospitals, shopping malls, hotels and industrial oriented entities.
To combat competition, Amaza Enterprises (Pty) Ltd will endeavor to have a better understanding of the market –
this will essentially supersede the competitors understanding of the market. Amaza Enterprises (Pty) Ltd will
strive to deliver its services as per the needs and preferences of the target market.
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3.4.6 RISK
In terms of risk, this is higher for the individual segment than the corporate market segment.
4.1 STRENGTHS
4.2 WEAKNESSES
The applicant lack financial management skills
Currently the organisational structure is informal; it is however likely to improve once more employees or
members are added on to the team
The contribution made by the owner in terms of owners’ contribution is less as compared to the required
outside borrowings – this is likely to outlook a gearing problem
4.3 OPPORTUNITIES
There is a possibility of hotels, bed and breakfasts, lodges and so forth of outsourcing dry cleaning and
laundry services
The availability of advanced technology in the form of industrial washing machines and dryers will be an
opportunity for the business
4.4 THREATS
The threat from well established competitors
There is a threat from new entrants as there are relatively low barriers of entry
There is a threat from customers as a majority prefer to do their own laundry
There is a threat from suppliers as they may not always have the necessary consumables required to render
laundry services
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