Laundry Business Plan in India
Laundry Business Plan in India is an attempt to give the in-depth details required to start a laundry business. I have tried to explain it to you in the form of question and answer.
In some places
the information is broken into points to understand in a simplified manner.
This blog is designed to help you determine whether your laundry
business idea is feasible to identify the problems you will be facing by
converting your idea into reality. And prepare yourself for
starting your laundry business.
This blog features
all the essential aspects you must consider before you start your laundry
business. This will allow you to predict problems before they happen and keep
you from losing your business ideas at the end.
The operation of a successful laundry business will depend on the following four conventions:
1 A practical plan with a solid foundation of
dedication and
willingness to sacrifice to
reach your goal.
2 Conversant with the required technical skills.
3 Basic knowledge of managing your finances and record-
keeping and
4 Market analysis.
As a new owner you will have to
master those skills and techniques. If your business is to be successful,
identify your reasons first.
Ask yourself why do you want to have your own business?
Check the reasons that apply to you.
· Freedom from the
nine-to-five daily work routine of being your own boss.
· Doing what you want
when you want to do it to improve your standard of living.
· Boredom with your
present job.
Some reasons are
better than others, none are wrong, however be aware that there are trade-offs.
For example, you can escape the nine-to-five daily routine, but you may replace
it with a 6 a.m. to 8 p.m. routine.
Preliminary Analysis:
Major “yes” response to the questions mentioned below would indicate that your business idea has little chance of success.
a)
Are there any causes such as
restrictions, monopolies,
shortages. Does that make any of the required factors for
operations unavailable?
b) Such an unreasonable cost.
c) Scarce skills into our capital requirements for entry or
continuing
operations excessively.
d) Is adequate
financing hard to obtain?
e) Are there factors that prevent effective marketing?
A self-analysis for
starting a business requires certain personal characteristics. This portion of
the blog deals with you as an individual.
Though the next set
of questions are vitally important for your business success plan, it covers the
physical, emotional and financial strains you will face in starting a new
business.
Q.
Are you aware that running your own business may require
working 12 to 16 hours a day, six days a week and maybe even
Sundays and holidays do you have the physical strength to
handle the work-load and schedule?
Q. Do you have the emotional strength to withstand the strain?
Q. Are you prepared if needed to temporarily lower your standard of
Is living until your business is firmly established in your family?
Q. Are you prepared to go along with the strains they too must
bear?
Q. Are you prepared to lose your savings in case your plan fails?
Analysis
Finding a small
business niche ranges from a manufacturer with many employees and millions of
dollars in equipment and the service industry, obviously the knowledge required
for these extremes business is far apart.
But for success
they have one thing in common: each has found a business niche and are feeling
that it is the most critical one.
If you face
difficulty in your early planning to find your niche and determine the
feasibility of your idea, getting into the right business at the right time is
very good advice.
But following this
advice may be difficult, many entrepreneurs plunge into a business, so blinded
by the dream that they fail to thoroughly evaluate its potential.
Is your business
idea feasible before you invest time, effort and money?
The following practice will help you
separate good ideas from those bearing a high potential for failure.
Identify and describe the business
idea you plan to start; identify the product or service you plan to deal with.
Answering “yes” to
any of the following three questions means you are on the right track; a
negative answer to all of them means the road ahead could be rough.
1. Does your product or service
satisfy an unfilled need?
2. Does your product or service serve an
existing market in
which demand exceeds supply?
3 Does your
product or service be competitive based on its quality,
location or price?
Market analysis:
For a small
business to start and be successful, the owner must study the market and to
learn the market. You must analyze it as a process that takes time and effort, you
don't have to be a trained statistician to analyze the market place.
Nor does the
analysis have to be costly. Analyzing the market as a way to gather
facts about potential customers and to determine the demand for
your product or service. The more data you gather, the greater your chances
of capturing a segment of the market.
Study the market
before investing your time and money in any type of business. Venture the
following questions will help you collect the information necessary to analyze
your market and determine if your product or service will be sold.
The short exercise
below will give you an idea of the kind of market planning you need to do. An
answer NO to any of the questions indicates a weakness in your plan.
So would your research until you can answer each question with that YES?
1. Do
you know who your customers will be?
2. Do
you understand their needs and desires?
3. Do
you know where they live?
4. Are you offering the kind of products or services that the
will the customer purchase?
5. Will your price be competitive in giving value for
money?
6. Will
your promotional program be effective?
7. Do you understand how your business compares with
your competitors?
8.
Is your business conveniently located for the people you plan
to serve?
9. Does
there be adequate parking facility for the customers
do you plan to serve?
Market Study:
Planning your new
business so far has helped you to identify questions and problems you will
face, converting your idea into reality and determining if your idea is
feasible.
Through self-study
you have understood your personal qualifications and deficiencies, and
through market study you have learned if there is a demand for your product or
service.
The following questions are grouped
according to the function they are designed to help you prepare for opening the
name title and legal structure:
a) Have
you chosen a name for your business?
b)
Have you chosen to operate
as the sole proprietorship and
Partnership or corporate business?
c) Have you found a suitable building in a
location convenient for
your customers? Can the building
possibly be modified as per
your needs at a
reasonable cost?
d)
Will you have a lawyer check the zoning
regulations?
e) Have you
decided what items you will sell or produce or what
services you will provide?
f) Have
you decided on a merchandise plan based upon estimated
size of sales to determine the amount of inventory you will need
to control purchases?
g)
Have you found reliable suppliers who will
assist you in the
Start-ups?
h) Have you compared the price, quality
and credit terms of
suppliers’ business records. Are you
ready to maintain complete
Record sales income generated and
expense accounts
Payable and receivable?
i) Have you determined
how to handle payroll records tax reports
and payments.
j) Do you know what
financial reports should be prepared and
how do you prepare them?
Finances:
A large number of small businesses fail each year for a number of
reasons for these failures but one of the main reasons is insufficient funds.
Though many entrepreneurs try to start and operate a business without
sufficient capital money.
To avoid this dilemma, you can review
your situation by analyzing the following three questions.
1. how
much money do you have?
2. how
much finance will you need to start your business? and
3. how
much finance will you need to stay and run your business?
In order to answer
the second question how much money will you need to start your
business, you need to prepare an estimate of all your start-up costs.
Here is the list of
items you may need to take into account, note that this list is for a retail
business. Items will vary for services, construction, manufacturing and online
firms.
Decorating,
remolding and installing fixtures, equipment services and supplies,
initial inventory costs, legal professional fees, licenses and permits,
telephone utility bills, deposits, insurance, signs, and advertising for opening
unanticipated expenses.
Now the answer to
the third question is how much money will you need to stay in business
must be divided into two parts immediate costs and future costs,
from the moment the door to your new business opens a certain amount of income
may come in. However, this type of income should not be reflected in your
operating cost. You will need enough available financing to cover costs for at
least the first 3 months of the operation.
Operational Expenses:
The following list
will help you project your operating expenses on a monthly basis, typical
expenses for one month may include,
Your everyday
living costs, Employee wages, Rent, Advertising, Supplies, Insurance,
Utilities, Taxes, Maintenance, Delivery, Transportation Miscellaneous.
Now sum up the total estimated
monthly expenses and multiply it by three, this is the amount of cash you will
need to cover operating expenses for three months.
Deposit this amount
to a different savings account before starting your business. Use it only for
those purposes listed in the above list because this money will ensure that you
will be able to continue in business during the crucial early stages by adding
the total start-up costs to the total expenses for 3 months. You can learn what
the estimated costs will be to start and operate your business for 3 months. By
subtracting the totals from the lists from the cash available, you can determine
the amount of additional finance you may need.
Now you will need
to calculate your operating expenses for the 1st year after the
start-up. The first step in determining your annual expenses and to estimate
your sales volume month by month.
Next, to determine the cost of sales,
you may want to use a spreadsheet to do this. Once the business is started the
primary source of revenue will be from sales, but your sales will vary from
month to month because of seasonal patterns and other factors.
It is important to
determine if your monthly sales will produce enough income to pay each month's
bills. An estimated cash flow projection will show if the monthly cash balance
is going to be subject to such factors as the following failure to recognize
seasonal trends. Excessive cash is taken from businesses for living expenses
to rapid expansion and a slow collection of accounts if credit is extended to
customers.
Conclusion:
If you have
carefully answered all the questions in this blog you have seriously thought
about your goal.
However, there may
be some things you may feel you need to know more about. Owning and running
a laundry business is a continuous learning process. Research your ideas and do as much as you can yourself. But do not hesitate to
seek help from people who can tell you what you need to know. As we conclude
this blog, I feel more than sufficient information is included in this article
to start a new business.
