Part 2 Business Plan

Business Plan Part 2:

Formation, Management and Operations

Formation

There are several business formations to choose from when it comes to starting a business, some are more suited for small business and others are more suited for larger business, etc. When it comes time to choose the right formation for a laundry service there are many factors that have to be considered. As a laundry service company, the first priority is to clean/tailor/dry clean as many clothes as possible. The second priority is to do the first priority cost effectively and with as little risk as possible. A laundry service works slightly differently than a regular product-consumer relationship. Instead of the consumer going to the producer and buying a product the

We will be outsourcing our laundry detergent from Amazon.com where we can save a lot of money buying in bulk. UPS will be the method of delivery, because they are speedy and reliable. The washers and dryers will be bought from www.usedappliancewholesalers.com. They are a large wholesaler of washers and dryers, and also sell in bulk, therefore we can save money. The manager will make sure everything is working properly and efficiently 24/7 to ensure a good service to our customers. The planning involved with our business will have to happen daily. The manager will make sure we have enough laundry detergent, dryer sheets, and employees working. The expectation is that customers will bring in their laundry to us, we will take it, wash it, dry it, and fold it back up good as new. The customer will then come pick up their laundry, and hopefully be satisfied with our service, and come again. If our business does happen to be short on detergent we will go to a local superstore, and purchase what we need until our new order comes in. Everything needs to be in working condition to run this business, if anything breaks we will have a maintenance man hired to fix the problem immediately. Our business is going to be all about efficiency and dependability so we can gain an advantage over our

We are also located in a perfect spot to attract customers daily and always have business. Our employees do not need any prior skills or experience so we can hire unskilled labor which is a big potential strength. Having cheaper rates than the surrounding laundromats will also be a strength for us because more students will bring their laundry to our laundromat rather than our competition. Our potential internal weaknesses include low employee satisfaction, lack of customers in the summer, and difficulty with financial resources for the startup of our business. The simple job of putting clothes in and out of a machine, ironing them, and folding them may be simple but it could become very repetitive and unsatisfying for our employees, therefore it may be hard for us to keep employees around for a long period of time. In the summer, students don’t live in the campus dorms so we will lose most of our customers unless we can attract students living in surrounding apartments. We will cut down our inventory and number of employees in the summer to make up for this decline. Our purchase of the washer and dryers will be expensive so we could have a problem in the time that it takes us to obtain this startup money. As for potential external opportunities, our team thought that we could work with the campuses and create a work study