Laundry Sphere Business Plan

This assignment delves into a proposed laundry business named 'Laundry Sphere' operating in Australia. It encompasses a comprehensive market analysis of the industry, identifying growth patterns and competitive landscape. The plan further defines the target market, outlines an effective marketing mix strategy, and highlights potential risks the business might face. A projected financial plan is also included, encompassing profit & loss statements, balance sheets, and cash flow projections.

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Executive summary
The report is prepared with the motive of presenting a business idea of an entrepreneurial group
and the presented business idea is Laundry business. The report shows the brief description of
the new business Laundry sphere. The meaning of the company name is the Laundry planet
where the customer can get all the services related to the laundry at the single place. The report
reflects the true picture of the company in terms of, its mission and its strategies and the financial
plan of the company. These strategies will help the company to make the maximum revenue and
achieve growth.

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Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................4
Background of idea..........................................................................................................................5
Logo of the company...................................................................................................................5
Mission of Laundry Sphere.........................................................................................................5
Service Offering...............................................................................................................................5
Market analysis................................................................................................................................6
Industry analysis..........................................................................................................................6
Competition analysis...................................................................................................................7
Target market...................................................................................................................................7
Primary Target Market................................................................................................................8
Marketing mix.................................................................................................................................8
Product.........................................................................................................................................8
Price.............................................................................................................................................9
Place.............................................................................................................................................9
Promotion..................................................................................................................................10
Financial Plan................................................................................................................................11
Profit & loss statement...............................................................................................................11
Balance sheet.............................................................................................................................13

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Cash flow statement...................................................................................................................14
Critical risks...................................................................................................................................15
Entry in the market....................................................................................................................15
Brand recognition......................................................................................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

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Introduction
Entrepreneurship refers to as the process of launching, designing and running a business which is
often initially a small business. The people who create the business are known as the
entrepreneurs of the business (Drucker, 2014). Entrepreneurs are the one who generates the new
business idea; the business idea is a concept that can be used for monetary gain that is generally
centered on a product or services that can be offered for money. The aim of the report is to
develop a business idea in the form of new product or business; it includes the product or service
that can be commercialized. An entrepreneur group is to develop a product or services and the
group is seeking the funding of $100,000 and also need the additional funds of $100,000.

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Background of idea
The entrepreneur believes that business idea needs to be unique and innovative. The business
idea is laundry business; the entrepreneurs are planning to open a laundry business in Sydney,
Australia. This business idea is one of the unique ideas along with this to make the idea
innovative the marketing team has designed the logo in which they have shared the
characteristics of the service with the name of the laundry business. The name of the business is
‘Laundry Sphere’ and it offers door to door service to its customers.
Logo of the company
Mission of Laundry Sphere
The mission of the company is to become the leading laundry company across Australia by
meeting their expectations of consumers.
Service Offering
Laundry sphere is a new business that will be offering its services in the local market of Sydney.
The company will offer the different services which include: -

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 Uniform cleaning services: - Different types of uniforms including corporate uniforms
and to protective clothing.
 Medical Services: - Linen and Grows
 Towelling services: - This includes hand towels, face washers, towels and bath mats
 Bad linen services: - Blankets, donnas, covers, sheets, pillowcases, bedspreads, doona
 Restaurant services: - Catering staff uniforms, caps and chef’s Jackets and aprons
 Some kinds of flag and banner services
The company ensures that will provide the door to door service delivery to their customers in the
local market along with this marketer will also provide an app or website through which they can
check the status of their stuff and also can make use of pick-up services or many other services.
The company will dry clean the stuff in the gentle manners and with the safety so that it will not
damage the color, shine, and quality of the cloth.
Market analysis
A market analysis is referred to as the qualitative and quantitative assessment of the market. The
analysis studies the attractiveness and the dynamics of the special market within the industry. Its
analysis includes the analysis of the size of the market both in terms of value or volume along
with various customers segments with the buying patterns. The market analysis includes industry
analysis and competition analysis.
Industry analysis
The commercial laundry industry has executed growth in the past few years due to which many
companies are able to outsource their laundry and linen supply business operations. Currently,
most of the companies are outsourcing their services across the borders (IBIS World, 2017). The

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need of the laundry services is increasing not only by the household but also by bachelors,
restaurants staff, navy person, and many others in Australia. This results in, the rise in the
industry revenue by 2.9% annually from last 5 years and it will reach $1.3 billion in the year
2017-2018 (IBIS World, 2017). This is possible due to improvement in the conditions for the
accommodations and health care providers.
Competition analysis
The competition in the industry is increasing rapidly in Australia. The company might face the
strong competition from the companies include; Laundry Australia, AIsco, The laundry Express,
Princes laundry services PTY Ltd. These companies are well-known companies in the laundry
service industry. The major competitor of the company is going to be laundry Australia as the
company has experience of 40 years in the laundry cleaning services. This company is specialist
in washing processes and with the uniform laundry services. Hence, the company can give the
strong competition to the Laundry sphere. The competition of the company is well-known
because they are able to meet the expectations of the customers and have done promotion of the
services in such a way that they can easily grab the attention of the customers.
Target market
Target market refers to as the group of consumers or end-users to whom the company has
decided to aim for their product and services. In simple words, it is said that the target market is
the group of people to whom the company is willing to sell its product and services. The target
market is divided into primary target market and secondary target market.

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Primary Target Market
The primary target market refers to as the segment of a marketplace that is best market or chance
for business to sell its product or services (McDonald, and Wilson, 2016). The company mainly
targets the youth with the age group of 18-25 years who are working male and female, bachelors
are also included in this category. The company also targets the households belongs to the high-
income group.
The main target market of the company is the local restaurants and the medical service providers
who can avail the laundry services offered by the company. This target market can give the
company an opportunity to earn more amounts in the local market because the company is going
to get the work in bulk which is a positive aspect of the Laundry Sphere.
Marketing mix
The marketing mix is the base model of the marketing and it includes the set of marketing tools
that are used by the company to pursue its marketing objectives. The marketing mix includes
mainly 4ps' product, price, place, and promotion (Keller, and Kotler, 2016). The laundry sphere
company should form the marketing mix strategies to achieve the objective of the company.

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(Source: Marketing Mix, 2018)
Product
Product refers to as the thing that can satisfy the needs of the customers and it can be tangible
and intangible along with this the product can be in the form of the product or service. Over here,
it is in the form the service the company provides the laundry services to its target market. The
services that the company is willing to initiate are at the initial stage.
The company provide the services of dry-cleaning and washing to hotels, restaurants and to the
medical homes. In Sydney, there is the ability of the latest technology so the company will make
use of the laundry and washing machines that help the company to provide the proper cleaning
without any damage. The company will make use of the sensor-driven lavatec dryers that helps
the company to keep the stuff smooth and shine. Through, this service the company will be able
to satisfy the customers.
Price
The price of the product or services is the amount that the consumers pay to avail the product and
services. It is one of the essential marketing components that are used by the companies to
evaluate the profit or revenue of the company. The price of the Laundry sphere varies from
service to service. The price range for the dry cleaning service is from $8.80 to $19.50 and the
price range for the personal laundry services (wash, dry, fold) starts from $18.00 (up to 5 kg) and
$28.00 (up to 12 kg).
The price range for the formals is different than the regular prices of the services of the company.
Hand washing, ironing and drying at dry cleaning prices (for per item) is shared below; trousers/

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jeans ($6.60/$6.70), pillowcases ($2.80) and the business shirts and blouses ($3.80). This helps
the company to generate the high revenue.
Place
Placement or distribution is another essential element of the marketing mix. Place refers to the
position where the company provides its product or services to the customers. Every company is
willing to select the place from where they can make their services accessible to the buyers or
potential buyers. The company has its outlets in Sydney where the people can come for the
laundry services and along with this; the company provides the door-to-door services to the
customers. Laundry Sphere will provide the online app and website through which the consumer
can look the services and can book the pick-up services. To make the product available at
different stores company will make use of the distribution channel. There are three distribution
channels which are discussed below: -
(Source: Rushton, Croucher, and Baker, 2014)

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The business will make use of the one level channel at the initial stage and by doing so the
company will provide the services at its outlets and later the company can form the connection
with the other wholesalers and retailers who can give big dry-cleaning orders to the company.
Later, the company can expand its services across the country with the use of the effective
distribution channel.
Promotion
Promotion is a process or activity through which the company can create the awareness about the
product or service in the market. This is an activity through which the company can target a
maximum number of audiences (Kotler, 2015). Promotion helps the company to establish a
brand image and to enhance the sales of the product or service. Promotion includes different
tools such as an advertisement, sales promotion, public relation, direct marketing and many
others.
Laundry Sphere can promote the service through advertisement on television, hoardings, posters,
pamphlets and many others. The advertisement is one of the effective and traditional methods
along with this the company can involve the celebrity endorsers. Below given is the mock of the
Laundry sphere and it includes the services provided by the company.
Mock-up of Laundry Sphere

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Financial Plan
Profit & loss statement
A profit and loss statement (commonly known as P&L) is a financial statement of the company
that outlines of the number of costs, revenue, and expenses incurred by the company either in
particular quarter or in a financial year (Fraser, Ormiston, and Fraser, 2010). The projected P&L
statement of the Laundry sphere company is given below which shows that in the year 2018, the
company might face the loss due to lack of sales and revenue but in the following year 2019 and
2020; the company will earn good profit.
Laundry Sphere
Profit & Loss Statement
Amount ($)
2018 2019 2020
Sales $175,000 $250,000 $400,000
Miscellaneous income $0 $25,000 $35,000
A. Total $175,000 $275,000 $435,000
B. Cost of Sales $96,250 $137,500 $260,000

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C. Gross Profit (A-B) $78,750 $137,500 $175,000
D. Operating
Expenses
Salary $48,000 $50,400 $52,920
Rent $5,000 $5,250 $5,513
Utilities $1,000 $1,050 $1,103
Insurance $75 $79 $83
Depreciation $10,000 $10,500 $11,025
Marketing $5,000 $5,250 $5,513
Maintenance &
Repairs $2,000 $2,100 $2,205
Other $0 $400 $420
Total $71,075 $75,029 $78,780
Operating profit $7,675 $62,471 $96,220
Less: Interest $10,000 $11,500 $10,000
Profit before tax -$2,325 $50,971 $86,220
Less: Tax @ 30% -$698 $15,291 $25,866
Net Profit AT -$1,628 $35,680 $60,354
Balance sheet
In the financial accounting, the balance sheet shows the true picture of balances of the
organisation. It is known as the statement of the assets, liabilities, capital of business for the
particular quarter or for the financial year (Gibson, 2011). The balance sheet of Laundry sphere
is given below: -

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Laundry Sphere
Balance Sheet
Amount ($)
Assets 2018 2019 2020
Current $45,000 $63,000 $126,000
Fixed $150,000 $300,000 $325,000
Other assets $5,000 $50,000 $100,000
Total Assets $200,000 $413,000 $551,000
Liabilities
Non-Current (Borrowings) $100,000 $50,000 $75,000
Total Liabilities $100,000 $50,000 $75,000
Equity $100,000 $363,000 $476,000
Total Liabilities & Equity $200,000 $413,000 $551,000
Cash flow statement
The cash flow statement reflects the cash inflow (receipts) and cash outflow (payments) in the
three activities of the business which include operating, investing and financing (Sinha, 2012).
Laundry Sphere has to bear the expenses in the organization along with this the company will
receipt the cash.
Laundry Sphere
Cash Flow Statement
Amount ($)
2018 2019 2020
Cash Flow
from
Operating
Activities
Cash sales 52,500.00 75,000.00 120,000.00
Realization
from 61,250.00 87,500.00 140,000.00

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Debtors
Payment to
Creditors - - -
Expenses
paid (72,747.50) (139,979.88) (249,353.87)
Total 41,002.50 22,520.13 10,646.13
Cash Flow
from
Investing
Activities
Machinery
Purchased (150,000.00) (300,000.00) (325,000.00)
Equipment
Purchased (50,000.00) (125,000.00) (175,000.00)
Total (200,000.00) (425,000.00) (500,000.00)
Cash Flow
from
Financing
Activities
Equity
capital $100,000 $363,000 $476,000
Borrowings $100,000 $50,000 $75,000
Total 200,000.00 413,000.00 551,000.00
Cash
surplus/
deficit 41,002.50 10,520.13 61,646.13
Opening
balance - 41,002.50 51,522.63
Closing
balance 41,002.50 51,522.63 113,168.76
Critical risks
The company might have to face some of the critical risks while conducting the business
operations in Australia. Some of the critical risks are discussed below: -

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Entry in the market
One of the major risks is the entry of the business in the market of Australia. It is a challenge for
the company to enter the market where other companies are operating their business and making
the profit. These companies can give strong competition to the Laundry Sphere due to which the
company will not be able to make the strong position in the market.
Brand recognition
The company might face the risk of brand recognition as in the market of Australia there are
many companies who provide laundry services and are well-known. These companies have good
reputation or presence in the market. Brand recognition is important for the companies as this is
the only way through which they will be able to grab the attention of maximum consumers.

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Conclusion
Entrepreneurs are bringing the changes in the dynamic competitive world. The new business idea
with the innovation gives the new identity to entrepreneurs. The report talks about the new
business idea that is laundry business with the name Laundry Sphere. The report includes the
market analysis of the laundry service industry. Market analysis is important for the
entrepreneurs as the entrepreneurs can capture the details related to the growth of industry along
with an analysis of competitors (Storey, 2016). Moreover, the report includes the analysis related
to the target market, marketing mix and critical risks of the company ‘Laundry Sphere’. The
projected financial plan is also discussed in the report and this financial plan includes profit and
loss statement, balance sheet statement and cash flow statement of the company.

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References
Drucker, P., 2014, Innovation and entrepreneurship, New York, USA: Routledge.
Fraser, L.M., Ormiston, A. and Fraser, L.M., 2010, Understanding financial statements, Pearson.
Gibson, C.H., 2011, Financial reporting and analysis. South-Western Cengage Learning.
IBIS World, 2017, Commercial Laundries - Australia Market Research Report, [online]
Available at: <https://www.ibisworld.com.au/industry-trends/specialised-market-research-
reports/consumer-goods-services/commercial-laundries.html> [Accessed 18 January 2018].
IBIS World, 2017, Laundry and Dry-Cleaning Services - Australia Market Research Report,
[online] Available at: < https://www.ibisworld.com.au/industry-trends/market-research-reports/
personal-services/laundry-dry-cleaning-services.html> [Accessed 18 January 2018].
Keller, K.L. and Kotler, P., 2016, Marketing management. 15th Global Edition, Pearson.
Kotler, P., 2015, Framework for marketing management. Pearson Education India.
Marketing Mix, 2018, The Marketing Mix 4P’s and 7P’s Explained, [online] Available at:
<http://marketingmix.co.uk/> [Accessed 18 January 2018].
McDonald, M. and Wilson, H., 2016, Marketing Plans: How to prepare them, how to profit from
them. Eighth edition, John Wiley & Sons.
Rushton, A., Croucher, P. and Baker, P., 2014, The handbook of logistics and distribution
management: Understanding the supply chain, ed. 5th, USA: Kogan Page Publishers.
Sinha, G., 2012. Financial statement analysis. ed. Second, India: PHI Learning Pvt. Ltd.

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Storey, D.J. ed., 2016, Entrepreneurship and new firm, New York: Routledge.