Risk Assessment before launching of performance (Industry Overview) Marketing Structure: the current world economy is being affected by high oil prices and inflation. The office of Small and Medium Enterprises (OSMEP) has predicted that the overall trades and services will be stable, however, the field to be aware of the hotels, restaurants, rental assets, computer services, software, educational services, health care services, spa, and social services facilities, as well as retailers and small wholesaler.
Thus, the SMEs sector needs to be strong enough to adjust the situation that occurs in either positive or negative effects, both opportunity and threat of operation. In the same time, strategy and business plan must be appropriated by consisting with competitive advantage in term of cost reduction, value adding of product, and knowledge-based service. Market Size: Currently, buildings and condominiums are building up along the subway trains and metro, as well as hundred of service apartments that are the favorite places of young working generation because of more convenient.
Because of narrow of place and timeless, young working generation then tend to search for more convenience, relaxing time and more comfortable routine. As the result, laundry business is another choice that proper with this group of working people. The good income is not difficult to think of if good location, management, and service can be organized. Market Needs and Current Supply The important trend of laundry business, during the year 2006-2007, around 348 laundry shops of nationwide registered themselves in Yellow Pages book.
There were 130 shops located in Bangkok area, the customer’s business lobby was 282 hotels or over 56,799 rooms (the information of June 2007, Department of Interior). Where most new hotel has opened, however, they were small and have discarded to work on laundry section but focused on hiring outsource laundry service instead. In addition, currently, buildings and condominiums are building up along the subway trains and metro so it is easier to note that how much the market of this business have and how easy to do the marketing to the target group. According to the remark f General Manager of Electrolux (Thailand) Co. ,Ltd on laundry business that “the hotel size in Thailand, especially in the city, they will be smaller or around 80, 50, or 30 rooms in boutique style by surrounding of good atmosphere. This is the point of business opportunity for laundry business as well. ” Thawin Juanrommanee said. It is representing that the laundry business is growing quietly, especially in small size hotel industry because they consider laundry section is not necessary then cover, towel, and bed sheet will be sent to outsource laundry shop instead.
However, before starting laundry business, we can ignore the point of competition especially foreign competitor who the government offers a chance to them to be 100 percent laundry business owner without any regulation and condition. Further more, most people consider laundry business as easy business because it use less investment, easy to find a good location, less employee need, good income with fast payback period that only 1-2 years, and it can be extra job for anyone.
Even many advantages are considered but not enough, who running this business without experience and good management is viewed as “going to die soon operation”— it means that everybody can start the business but will close soon or sloppily business and/or not professional because only know the way to wash the cloth is not enough. They must down to the detail of the professional way and must have enough experience to do confidentially. First, the tool that most people use can’t turn into a real professional for cleaning because it is hard work.
Only have money is not enough for this job, hire someone to do can’t make this business survive. Real interested person is proper for this business, they must give much time even not 24 hours but should have a time to stay at the shop. At least, the laundry business owner must know well and can do it” Most of laundry shops in Thailand are not running in professional term except the big laundry industry that deals with many branches and high standard hotel laundry section.
In addition, the government doesn’t provide a real support to this business especially in term of human resource encouragement as same as they do with other business such as tailor, hairdresser, or cook. In term of improvement, more development on laundry business and expert is strongly required. SWOT Analysis of Laundry Business Possibility Strengths ? The size of the laundry business can be operated since small, medium, and up to the large with 500,000 baht of capital to start this business. ? Business owners do not need in-depth business, just learning the new thing and keeping develop nd adapt themselves always. ? Business owners can quickly receive pay back within the first 1-3 years depended on the expertise to do the marketing. ? The business owner no need to stay at the shop all the time so more free time is available for the owner to think about marketing management and other extra businesses. ? The growth in this business must have patience and learn then they can generate a good income and can survive this business with professional performance. Weaknesses ? Most expense of this business will be wage of ironing. Laundry expert is difficult to find and they always change working place in order to increase their salary. ? This business is sensitive because it deals with high value cloth, lose and damage will cause bad reputation and compensation to the owner. ? The person who works in laundry business must bear because they need to do same work repeatedly everyday. ? If washing machine is not proper in use, it may cause a problem to the machine and have less expiry period. ? Even this business is simply to do but the process quite complex and must do it punctiliously.
Together with the reason of personnel lacking, so many of them close the business easily. Opportunities ? Because rushing of time then working people no time to do laundry by themselves, it is a good opportunity to do the market for this target group. ? The increasing of medium and small hotel, service place, salon, and spa shop is a good opportunity to do the market. ? Six months of raining and changing of seasons cause a good response to laundry business. Threats ? The volatility of the current economic conditions may result in people spending carefully and cut some expense that might be included laundry cost. There is a lot of competitor in this business because it is not difficult to do and it might be included kind of personal laundry hiring. ? Trend of wage is increase due to higher cost of living. What is my laundry style? Laundry business mostly is independent investment of one person. It no needs to do the research for marketing, location, target group, and competition. The sharing will be hold with familiar people such as relative, friend, and etc. As the same time, some people do laundry business as extra job. Analyzing our interested is priority thing to do.
Now a day, there are many types of laundry are running such as monthly or piece service that shop owner can do it, franchise, or coin-operated laundry. Coin-operated laundry is very famous business now a day because it has less complexity to operate and only little area is used, well for community, condominium, and apartment. By detail, we will go deeply, how the good laundry business should be? Coin Operation Laundry Business “Thai coin operation laundry is not standardized because of lacking investment of the owner, the house using purpose is bought and adapted to be coin operation machine which is not a proper kind of using method.
Spin system, some kind of machine, make much dry of clothes then affect directly to the color fading and cloth fiber especially when they touch to the sun light. However, now a day, it is improved with leveling of water and spin provide. ” “The laundry business can be done by thinking much about cost of utilities, not only machine cost as mostly people do normally. ” Only two sentences of laundry expert, for more than 20 years, can warn well to the person who is thinking of coin operation laundry business because the success laundry business can’t be done with the traditional style as before.
Even the coin operation laundry is easy and not much investment to do, only $1700 can start this business, but you should think about customer cheat such as crown cap that some people put in the machine instead of real coin it is the meaning of loss and maintenance cost. Because different kinds of cloths then different methods of washing are need, as the result, good coin operation machine must be industrial style. The washing methods must be controlled by programs and kinds of sizes since small up to the large one by using in differences such as below: ?
Soften program should not be used with yeans and the thick one because it will affect to color fading and cloth condition. ? For dwindling cloth, kind of washing liquid must be separated. ? Should not wash towel with dwindling cloth or T-shirt because towel’s fiber will attach to other cloths, better to wash it with blanket or pillow case. “In our country, the coin operation laundry system doesn’t meet standard because without dryer, the cloths would be too dry cause the damage.
But in foreign country, there are several washing machines options, let’s say with many cloths, customer can choose bigger size of machine or less cloths, can use a smaller size of machine. They provided machine size 6-7 kg separately, that’s considered as correct system but in Thailand; install machine at one place let any customers use. It’s not Professional. ” Thinking of doing coin operation laundry machine business, what should do is open a proper shop, whereby operate another business in the same shop such as book store, coffee shop while waiting for washing.
Otherwise join with a dog’s grooming shop or VDO rental shop probably. Because the customers should be around while washing until program finished. Further more should provide table for folding cloths for customers to bring them back. And it’s such an improvement of coin operation laundry machine business in our region. “Nowadays the coin operation laundry machine business owner, they all have got capital back be cause they operated non-standard way. Get the investment capital back rapidly and never thought of a better adaption. Invested for 5 machines and gain profit within 8 months, broke machine; replace with new machine. The interesting point is the good coin operation laundry machine should be machine with front door as professional laundry service because the machine with the door on top of machine like we usually used, normally when we washed too many cloths. The cloths are stacked on the washed dirt inside the machine. And the result is the more you wash, the more dirty. Laundry Franchise Business Buying franchise might be helpful by using well known branded in laundry business that help to attract customers and reliable laundry training before shop opening, whereby the franchise opening is categorized to 2 ways. ) Own the franchise 2) be a laundry’s agent for franchise and take profit percentage of service. Before deciding on doing laundry franchise, you should compare the benefit, terms and conditions of each laundry franchise for self interest of investment. Laundry franchising, mostly the budget will be 100,000 Baht and above to buy franchise (shop decoration is excluded). This cost will be charged for 3 parts 1. Shop decoration and equipments such as member card, brochure, flyer and receipt. 2. Products insurance 3.
Loyalty fee, this fee will be calculated from revenue may up to 25%-50% The investor’s qualification for laundry franchise business 1. 2. 3. 4. Readiness Target market, employee or run business by your self Location Capital Details of Laundry Franchise Business Franchise Wishy Washy Laundry Mate Shin Shai Hua Missis Laundry Express Dry Cleaning Laundry Express Services Laundry Wash, Dry Cleaning Wash, Dry Cleaning Laundry, Dry Cleaning Laundry, Dry Cleaning Laundry $8,334 $10,000 $3,334 $11,666 $3,334 $20,000 Capital
Ieshia Pro Laundry Alright Dry cleaning Wash Me Washing machine business Laundry Laundry, Dry Cleaning Laundry, Dry Cleaning Laundry $10,000 $20,000 $20,000 $20,000 According type of cloth cannot be washed by any washing machine. So choosing washing machine is essential matter. And nowadays there are several types of washing machine such as ? ? ? Washing machine for home use Commercial washing machine Industrial washing machine Washing machine for home use is the cheapest choice to invest on but with limited conditions ? Slow process ?
Less amount of cloth ? Time and energy consuming ? Not durable But currently the washing machine for home use has been developed into different purpose and with bigger size, plus the technology of washing system like water detector system that able to adjust water level accordingly with the amount of cloth, heater system that can kill germs and spin level adjust system. Commercial washing machine This type of washing machine is costly investment because the machine used electric power and steam power, which give more advantages. As ? ? ?
Faster Bigger amount Time and energy saved ? Several washing programs Investing on laundry business with Commercial washing machine, the skills of using this kind of machine is highly recommended. The user is necessary to be trained by the seller according several technologies of the machine. And need to learn the installing system of electric, water, waste water and location of machine. Industrial washing machine is such an enormous size, need space to locate it, furthermore need to get license because it’s an industrial business. Which the job would be ? ? ? The system is similar to commercial washing machine Bigger size of job and controllable Time and energy saved Several programs of usage Dry cleaning Business Dry cleaning is no water used for cloth washing but oil, called Solvent. But need to be neat in every step. This is because most of customers bring an expensive and branded cloth for dry cleaning, or to remove stain which cannot be removed by water. ? The machine must be durable and effective of usage ? Dry cleaning machine is expensive ? Skilled person must be in charged, and able to separate each type of cloth for proper service ?
Emphasize on farewell and wage of employees. And give training to employees always Essential awareness of washing system by machine The most important is to select washing machine with several washing programs. So user is able to select proper program for proper cloth. This can change a tough job to be easier. After learning about laundry, the business owner need to be self considered of own efficiency whether suit for this kind of business or not. 1. Location: this kind f business need to be in housing area, village, apartment, dormitory and condominium.
But if the owner has own location, this would help to decrease capital for location. 2. Good service, good quality: laundry business is mind service. The priority matter is good service with good quality, clean and trustworthy. Impressive and reliable. 3. Friendliness: the business owner must build good feeling toward customer, welcoming at the gate, friendly talking to build a good relationship for long term. 4. Cloth knowledge: the owner should know about cloth material, because each cloth have different way of washing and ironing Once you are ready, check you capital.
Whether the capital is ready too? (After this will go more on details of commercial laundry business and to be improved for better direction) Searching location is the key of laundry business Laundry shop should be opened at the housing area whereby convenience is provided such as office building, supermarket that customers are willing to buy. Which can be opened as laundry agency, the laundry shop might be located somewhere else. But this might need to include petrol consuming cost. Besides that the owner ust consider the rivals and customers of that the location so it won’t be cutting price. “Price cutting problem between laundry shops that located nearby each other example monthly rate 50 pieces/500 baht but another shop gave 70 pieces/600 baht which it’s not worthy” A good laundry shop location must be aware that shouldn’t be located nearby shop that smelly or noisy such as restaurant that cooked in front of the shop, or mechanic shop. Here are the finalized of laundry location should be like this ? Housing area with buying power ? Near main street, convenient to go.
If got parking would be better ? Shop location should not be nearby too many laundry shops because it’d effect on price cutting If the owner cannot fine location in the center of town, what the owner can do is open small laundry shop to deliver cloth to offices, hotels or supermarket. Or take and deliver cloth at the parking lot instead. Besides than that there’s no need to open full option style plus win customers’ hearts. Qualification of laundry business owner Since the laundry job is mind service with so many details, must pay attention and knowing about cloth very well.
The most important thing is patience, because this job is not an easy and the qualifications of owner should be ? ? ? ? Enthusiastic Good business mind Good marketing always seeking for new market for business Always interested to learn innovation, improvement of washing machine ? ? ? ? ? Study, update laundry society on websites, magazines or books Join seminar, visit exhibition that involve with laundry job Fighter, well known in business Know how about laundry Friendly, welcome with smile, have a good conversation with customers