(Solution) Business Plan - Assignment

In this assignment, we discuss about the business plan which may be a document that explicitly states the goals and strategies of a company. A business plan outlines a documented strategy for the company's operations, finances, and marketing. Business plans are used by both new and established businesses. A business plan is an important document aimed at both internal and external audiences for a corporation. As an illustration, a business plan is used to solicit funding prior to the establishment of a solid track record for the company. It may also assist in obtaining financing from financial organizations.

Running head: BUSINESS PLAN
Business plan
Name of the Student:
Name of University:
Author’s note:

1BUSINESS PLAN
We are planning to launch a moving laundry truck that would enable in picking up
and delivering clothing instantly with the help of website and landline called
“INSTAKLEENERS”. The laundry industry aims in picking up the laundry items and
quickly delivers them within few minutes. The business will initial be started by targeting the
families with children and the business people who do not have time to wash the clothes. This
idea will facilitate faster delivery of the laundered items and allow people who are in need of
instant cleaning and ironing of their clothes (McKenzie, 2017)). It is a unique concept as
there has been no laundry facilities that is mobile and can travel from place to place washing
clothes and making clean clothes available to the busy targeted customers. The benefit that
would be provided is high speed and clean and ironed clothes.
The management of the business consist of active and energetic members focusing on
quality service at high speed and delivering the same to the door steps of the customers.
The business will generate income through website and phone calls through landline.
The service cost will be reasonable, but it will not be lower than the competitors propose. If
we reduce prices, we will have to reduce the quality of the service. The service costs depend
of the equipment and chemicals use (McKeever, 2016). Our main target customers are from
30 to 50 years old people who are business people or have families with children. They are
from high, upper middle and middle social class background. They often use specialized
laundry. Some of them may not use the specialized laundry because they do not have time or
it is not convenient for them to deliver the laundry to the service (Watson, McGowan &
Cunningham, 2018). Consequently, we can motivate them to use the service if the laundry is
picked –up and delivered to their doorstep.

2BUSINESS PLAN
The car and the package of the laundry will be decorated with the logo of the
company (Gabler, et al., 2017). Our customers will be able to choose the fragrance for their
clothes. Special care will be provided for white clothes and for clothes with buttons. The
urgent service will take 10-30 minutes. Customers will not need to go to the laundry service,
as everything will be done in the car. Additional service will be available: floor care, curtain
care, upholstery care, window care, and carpet maintenance.
The service will be provided in the Mobile Car at any place of the city in the the
UAE, Dubai region.
The managerial positions will consist of the following personnel: Cleaner and the
person who will iron the clothes, the person who will pack the items and person who will
deliver from the car to the house. There would also be a person to supervise the who process
The following overhead costs will initially be required to establish the business:
Description of cost Cost ($) Composition of cost/Notes
1. Equipment costs 34880 Moving car - $20000,
washing machines - $6000,
Apple Laptop - $3,500,
lightning - $4,000, battery
charger/AC adapter - $400,
microphone -$280 and iron
and iron stand- $700.
2. Salaries and wages 10950 Cleaner -$5,000, ironing
man - $2,250, Packer and
helper - $2,500 and delivery
man - $1200 (subject to 10%
annual increase)
3. Daily costs 12,000 Water and electricity
charges and rental of
equipment, subjected to 2%

3BUSINESS PLAN
annual increase as per
regulation.
4. Advertising and
marketing costs
60000 Posters, flyers, billboards,
payment to social media
influencers for marketing
and website development
costs.
5. Transport costs 3500 Travel to and from the place
of laundry car, the petrol and
repairs
6. Insurance costs 3000 This will consist of the
insurance of the machinery
equipments against theft,
damages or any other losses.
7. Maintenance costs 600 Repairs of the machines and
the iron.
8. Other costs 700 Miscellaneous expenses
including stationary items.
Total overhead costs 125630
Since the business is starting from scratch the only available source of finance will be a bank
loan. A loan of $300,000 will be taken from Dubai SME bank with an interest of 3% p.a. The
excess of $174370 ($300,000 - $125630) will be re-invested in savings account with the same
bank at an interest rate of 1.5% p.a. (Refer to the excel document for calculations).

4BUSINESS PLAN
References
Gabler, C. B., Panagopoulos, N., Vlachos, P. A., & Rapp, A. (2017). Developing an
environmentally sustainable business plan: An international B2B case
study. Corporate Social Responsibility and Environmental Management, 24(4), 261-
272.
McKeever, M. (2016). How to write a business plan. Nolo.
McKenzie, D. (2017). Identifying and spurring high-growth entrepreneurship: experimental
evidence from a business plan competition. American Economic Review, 107(8),
2278-2307.
Watson, K., McGowan, P., & Cunningham, J. A. (2018). An exploration of the Business Plan
Competition as a methodology for effective nascent entrepreneurial
learning. International Journal of Entrepreneurial Behavior & Research, 24(1), 121-
146.