Revolutionizing Laundry Services With Uber Laundry

Mobile Application for Laundry Services

Purpose

The main purpose of the business is aimed to formulate a new model for the online laundry business. This business idea will be able to revolutionise the changes pertaining to a new way of delivering laundry services. The discourse of the report has presented a comprehensive guideline for developing an online application which will allow the users to find laundry services at the best price and near to their place of residence (Rosemann & vom Brocke, 2015).

Rationale for the Business Plan

In the past there has been significant initiatives to revolutionise the online services which are related to the various types of the businesses across the globe. Some of the main consideration of the formulation of the business plan has been based on the previous services such as food, grocery, cosmetics, clothes, home décor, repairs, maintained and taxi. However, there are still certain untapped zones which relates to the services offered in terms of the laundry. Therefore, the main rationale for the business plan is to develop a mobile application for the laundry services pertaining to Uber Technologies (Jeston, 2014).

Contribution made to the society

The services rendered by the business will be conducive in providing the essential daily requirement of the laundry services. The society will be benefitted from the availing the laundry services at best price in door step.

Organising the team to be efficient and effective

The team of the operations has been segregated into dedicated workforce pertaining to Delivery Executive, accountants and other management officials. The efficiency and effectiveness of the teams has been ensured with the delivery of the various types of the services across the different type of the channels which are based on the same corporate policy (Hammer, 2015).

Meetings and reporting

The reporting of the individual messages and inter team communication of the business has been seen to be maintained with the following of instant messaging services. This application has ensured that the different types of the reporting related to urgent matter are followed up even when the executives are on the go.

Complying with the laws

The business will follow the corporate laws which has been prescribed as per US Act for the limited liability companies. The company will posses the access of the services by any individual within any country across the world. The use and the access of the services offered by the company is seen to be bound by the contractual services which are seen to be considered with the use of the various types of services related to the contractual service agreement. In case there is any terms expressly superseding with the agreement then the offerings of the company may be ceased by the US Act (Allweyer, 2016).

Maintenance of the financial accounts

The financial statements of the company are maintained with the use of the various statements which relates to the matters associated to the consideration of the various types of the services associated to the following components

Maintaining a financial statement for the initial start-up requirements
Sales Forecast for the 5 years
Cashflow projections for the next 5 years
Depreciation schedule
Profit and loss forecast
Projected Balance sheet for the next 5 years

Measures implemented to determine underperformance

Dedicated Team for Delivery Assurance

The measurement of the various types of the scope for underperformance in the organization will be depicted with the use of operational measures. This will be based on the implementation off techniques such as program evaluation and review technique and network analysis. In case the area of underperformance is seen delay in delivery of the services then the market analysis will be segregated into two divisions. Firstly, Uber will review the service provided by the laundry owners only opt to sustain the best among them. In addition to this, it will also decide to renew the contract of the laundry owners based on the previous ratings given to the laundry service provider. Secondly, the company will be also able to analyse the various types of the services pertaining to the delivery executives. The network analysis will ensure that preference for the delivery of the orders are followed with the best selected route to ensure minimum time for delivery and maximum savings on transportation costs (Harmon, 2014).

Listing the outcomes which are measurable in numbers, percentage and money

The outcomes of the services provided by the company will be measurable in terms of the sale, gross margin and net profit. The depictions of thee aforementioned financial constraints will be presented in a bar diagram. In addition to this, outcome3s of the financial plan of the business will be also projected in terms of the financial ratios. These ratios will measure the current ratio, working capital and asset to quirt ratio. Furthermore, the financial projections of the study will be also represented with the use of a sales forecast projections which will be able state on the sale forecast over the five years for Uber laundry services (Salmela, 2016).

Comparison of the performance to these targets

The comparison of the targets of the company will be maintained with the use of the several types of the benchmarking tools which will be state on the relevance of the previous targets and the objectives met the company. For instance the benchmarking tool will set a total growth of the profit of the company by 5% in all the years and compare whether this is achieved by the company.

Operating Industry

The main operating industry of the services are based on information technology and software development. The company will be responsible for developing the main application for the delivery of the laundry services. It will also rely on a list of laundry owners who will act as the service agents for the business (Weber et al., 2016).

Unique value offered within the product

The unique value offered within the product needs to be seen in terms of Convenience and Quick Services, easy of use of the interface, secured payments, following a fair pricing system and providing notifications to the users.

Differentiation of the services offered than the competitors

The competitors are nearly non-existent for such types of initiative taken by the company. Uber will enjoy a monopoly at the initial stages. However, there may be some competition from the traditional service providers of the laundry business. These seen to be based on the various type of services offered by the laundry owners in terms of the price leadership. The laundry delivery service at the doorstep is seen to be bearing a significant cost pertaining to the delivery executives. This may lead to be taken as an advantage by the traditional service providers thereby taking the opportunity to draw more customers by providing discounts (Schulte et al., 2015).

Corporate Laws for Global Access

Recognition by the target companies

The target companies in the given business case can be identified with the laundry service providers. The target companies will identify this as an opportunity better reach to the customers.

Showing up to be noticed

Uber Laundry will use several types of the social media platforms such as Facebook, Instagram and Twitter to get noticed among the users.

USP for being remembered

The main factor the services to be remembered will be depicted with the convenience aspect. This is recognised with the delivery of laundry services at the doorstep.

People Served

The main people serviced will be focused on the working professionals who often find it difficult to clean and take good care of their garments for busy schedule. In addition to this, the company will also target the users with garments requiring special care which is involves several intricacies. This is recognised in terms of the users with winter garments which required dry cleaning and get easily affected with plain wash (Tarhan et al., 2016).

Beneficiary Party

The beneficiary party of the services are depicted with the laundry owners, advertisement agencies and users of the services.

Customers

The categorisation of the customers is listed as follows:

Working professionals
Bulk orders for garments
Specialised services
Senior Citizens
Students

Desire

Value contribution to make the change possible

The value contribution to make the possible changes pertaining to the services can be seen with the User friendly aspect, multiple options available for payment, availability of the closest merchants, help centre, feedback and suggestions to improve the services.

Overcoming objections

The company aims to overcome the objections by complying with the relevant patents and rights of the software. In addition to this, it will also ensure that the operations are adhering to the various types of the corporate law in US.

Value exchange for the each offers

The value exchange offers of the company will be seen with the maintenance of the high brand value in the international market. Moreover, the services delivered by the company will be also able to ensure that the different types of the objectives of the company will be met by the availability of the large number of investors (Reijers, Mendling & Recker, 2015).

Determination of the price

The price set for the services of the company will be able to ensure that the only the best prices from the laundry is selected for the services.

Criteria for charging of the services and getting paid

The delivery of the services will be assessing by star ratings. Therefore, higher is the average star rating, higher will be the charges for the services.

Resources needed to deliver the services

The resource requirement of the services is categorised as per the physical resources, financial resources and human resources.

Facilities, equipment, people and finance needed

The main facilities, equipment, people and finance needed is depicted with vehicles, land and buildings and computers (Conforti et al., 2015).

Year	0	FY-1	FY-2	FY-3	FY-4	FY-5
(a) CAPITAL
Capital Employed		400,000	412,000	424,360	437,091	450,204
Loans		100,000
Loan repayments		0	20,000	30,000	30,000	20,000
(b) SALES FORECAST
Fees paid by consumers		350,000	371,000	408,100	457,072	525,633
Fees paid by laundry owners		320,000	326,400	345,984	373,663	411,029
Market Consulting		200,000	204,000	208,080	213,282	219,680
Projected Sales		870,000	901,400	962,164	1,044,017	1,156,342
(c) COST OF SALES		280,000	291,200	304,304	319,519	338,690
(d) EXPENSES (Overhead)
Premises (RENT & RATES)		48,000	48,000	48,000	48,000	48,000
Salaries of Delivery Executives		135,000	137,700	143,208	150,368	157,887
Accountant Fees		200,000	205,000	210,125	215,378	220,763
Rewards and incentives		12,000	12,240	12,485	12,734	12,989
Commission paid to merchants		15,000	17,500	20,000	22,500	25,000
Sales and Marketing		18,000	20,000	22,000	25,000	27,500
Communication and cellular service expenses		14,000	14,420	14,853	15,298	15,757
Promotion Expenses		6,000	6,120	6,242	6,367	6,495
Adding new features to the mobile application		35,000	35,875	36,772	37,691	38,633
Logo Designs		3,500	3,500	3,500	3,500	0
Interest on loan @ 3.5%		3,500	3,500	3,500	3,500	3,500
Market survey		9,000	10,080	11,290	12,644	14,162
Preliminary expenses		1,900	2,300	2,600	2,850	3,150
Lease payments		14,000	52,000	30,000	75,000	69,000

(e) FIXED ASSETS
Land & Building		800,000	832,000	869,440	912,912	963,122
Vehicles		80,000	80,000	80,000	120,000	120,000
Computers		35,000	35,000	35,000	35,000	50,000

Start-up Requirements

	Start-up Expenses
		Particulars	Amount ($)
	Fixed Costs
		Premises (RENT & RATES)	$48,000
		Salaries of Delivery Executives	$135,000
		Interest on loan @ 3.5%	$3,500
		Accountant Fees	$200,000
		Rewards and incentives	$12,000
		Commission paid to merchants	$15,000
		Sales and Marketing	$18,000
		Total Fixed Costs	431500
	Variable Expenses
		Communication and cellular service expenses	$14,000
		Promotion Expenses	$6,000
		Adding new features to the mobile application	$35,000
		Logo Designs	$3,500
		Market survey	$9,000
		Preliminary expenses	$1,900
		Lease payments	$14,000
		Total Variable Costs	$83,400
		Total Costs	$514,900
	Average Monthly Costs
		Rent	$4,000
		Lease payments	$1,167
		Interest on loan @ 3.5%	$292
		Communication and cellular service expenses	$1,167
		Promotion Expenses	$500
		Salaries of Delivery Executives	$11,250
		Total Average Monthly Costs	$18,375
		x Number of Months:	12
		Total Monthly Costs	$220,500
	Total Startup Expenses		$735,400

	Start-up Assets
	Owner Funding
		Owners Fund	$400,000
		Total Owner Funding	$400,000
	Loans
		Bank Loan	$100,000
		Other
		Total Loans	$100,000
		Total Start up Funds	$500,000
	Assets
		Land & Building	$800,000
		Vehichles	$80,000
		Computer	$35,000
		Total Fixed Assets	$915,000
	Total Start-up Assets		$1,415,000

(1) SALES FORECAST
Year	0	1	2	3	4	5
Projected Sales		870,000	901,400	962,164	1,044,017	1,156,342
(b) Cost of Sales		280,000	291,200	304,304	319,519	338,690

Cashflow Forecast
	Preop
Year	0	1	2	3	4	5

CASH INFLOWS
Cash from Sales		870,000	901,400	962,164	1,044,017	1,156,342

Directors loans	100,000	100,000	100,000	100,000	100,000	100,000
Capital Employed	400,000	400,000	412,000	424,360	437,091	450,204
Other cash inflows

TOTAL CASH INFLOW	500,000	1,370,000	1,413,400	1,486,524	1,581,108	1,706,546

CASH OUTFLOWS

Payments for materials		280,000	291,200	304,304	319,519	338,690
operating expenses ( )	0
Premises (rent, rates)	0	48,000	48,000	48,000	48,000	48,000
Salaries of Delivery Executives	0	135,000	137,700	143,208	150,368	157,887
Logo Designs	0	3,500	3,500	3,500	3,500	0
Interest and bank charges payable	0	3,500	3,500	3,500	3,500	3,500
Lease payments	0	14,000	52,000	30,000	75,000	5000
Corporation Tax		16,506	22,584	28,996	38,810	54,910
Market survey costs	0	9,000	10,080	11,290	12,644	14,162
Other preliminary expenses	0	1,900	2,300	2,600	2,850	3,150
capital expenditure
Computers	0	35,000	35,000	35,000	35,000	50,000
financing repayments
Loan repayments			20,000	30,000	30,000	20,000
TOTAL CASH OUTFLOWS	0	546,406	625,864	640,397	719,192	695,299
Cash flow summary
NET CASHFLOW FOR PERIOD	500,000	823,594	787,536	846,127	861,915	1,011,247
OPENING CASH BALANCE	0	500,000	1,323,594	2,111,130	2,957,256	3,819,172
CLOSING CASH BALANCE	500,000	1,323,594	2,111,130	2,957,256	3,819,172	4,830,418

Depreciation Schedule
Year	0	1	2	3	4	5
Fixed Assets
Land & Building	800000	720,000	640,000	560,000	480,000	400,000
Vehicles	80000	64,000	51,200	40,960	32,768	26,214
Computers	35000	28,000	22,400	17,920	14,336	11,469
Total book values (i.e. net fixed assets)	0	812,000	713,600	618,880	527,104	437,683



Annual Depreciation
Furniture-10% straight line		80,000	80,000	80,000	80,000	80,000
Vehicles – 20% reducing balance		16,000	12,800	10,240	8,192	6,554
Computers-20% reducing balance		7,000	5,600	4,480	3,584	2,867
total annual depreciation		103,000	98,400	94,720	91,776	89,421

Profit And Loss Forecast
	Preop
Year	0	1	2	3	4	5

Revenue	0	870,000	901,400	962,164	1,044,017	1,156,342

Cost of sales	0	280,000	291,200	304,304	319,519	338,690

Gross profit	0	590,000	610,200	657,860	724,498	817,652

Gross Margin		807,906	816,439	853,084	898,017	949,775
Expenses/overheads
Premises (rent, rates)		48,000	48,000	48,000	48,000	48,000
Salaries of Delivery Executives		135,000	137,700	143,208	150,368	157,887
Logo Designs		3,500	3,500	3,500	3,500	0
Accountant Fees		200,000	205,000	210,125	215,378	220,763
Rewards and incentives		12,000	12,240	12,485	12,734	12,989
Commission paid to merchants		15,000	17,500	20,000	22,500	25,000
Sales and Marketing		18,000	20,000	22,000	25,000	27,500
Communication and cellular service expenses		14,000	14,420	14,853	15,298	15,757
Promotion Expenses		6,000	6,120	6,242	6,367	6,495
Adding new features to the mobile application		35,000	35,875	36,772	37,691	38,633
Preliminary expenses		1,900	2,300	2,600	2,850	3,150
Market Survey		9,000	10,080	11,290	12,644	14,162
Lease Payments		14,000	52,000	30,000	75,000	69,000
Total expenses/overheads		511,400	502,655	519,785	539,688	556,174
Profit before tax		78,600	107,545	138,075	184,810	261,478
Tax @ 21%		16,506	22,584	28,996	38,810	54,910
Profit after tax		62,094	84,961	109,080	146,000	206,568
Transfer to reserves		78,600	107,545	138,075	184,810	261,478

ROC		16%	21%	26%	34%	47%

Assets	FY-1	FY-2	FY-3	FY-4	FY-5
Current Assets
Cash	$42,000	$56,000	$62,000	$65,000	$86,000
Accounts receivable	$870,000	$901,400	$962,164	$1,044,017	$1,156,342
Total current assets	$912,000	$957,400	$1,024,164	$1,109,017	$1,242,342
Fixed (Long-Term) Assets
Vehicles	$80,000	$80,000	$80,000	$120,000	$120,000
Land & Buildings	$800,000	$832,000	$869,440	$912,912	$963,122
Computer	$35,000	$35,000	$35,000	$35,000	$50,000
(Less accumulated depreciation)	$103,000	$98,400	$94,720	$91,776	$89,421
Intangible assets	$50,700
Total fixed assets	$862,700	$848,600	$889,720	$976,136	$1,043,701
Total Assets	$1,774,700	$1,806,000	$1,913,884	$2,085,153	$2,286,044

Liabilities and Owner’s Equity
Current Liabilities
Accounts payable	$24,000	$25,000	$27,000	$25,000	$27,000
Accrued Rent	$48,000	$48,000	$48,000	$48,000	$48,000
Bank Charges Payable	$3,000	$3,000	$3,000	$3,000	$3,000
Short-term loans	$10,000	$10,000	$10,000	$10,000	$10,000
Income taxes payable	$16,506	$22,584	$28,996	$38,810	$54,910
Accrued salaries	$135,000	$137,700	$143,208	$150,368	$157,887
Logo Designs	$3,500	$3,500	$3,500	$3,500	$0
Lease Payment	$14,000	$52,000	$30,000	$75,000	$69,000
Current portion of long-term debt	$3,500	$3,500	$3,500	$3,500	$3,500
Total current liabilities	$257,506	$305,284	$297,204	$357,178	$373,297
Long-Term Liabilities
Long-term debt	$100,000	$0	$0	$0	$0
Less: Loan Repayment		$20,000	$30,000	$30,000	$20,000
Deferred income tax	$1,417,194	$1,520,716	$1,646,680	$1,757,974	$1,932,746
Total long-term liabilities	$1,517,194	$1,500,716	$1,616,680	$1,727,974	$1,912,746
Total Liabilities	$1,774,700	$1,806,000	$1,913,884	$2,085,152	$2,286,043
Owner’s Equity
Owner’s investment	$400,000	$412,000	$424,360	$437,091	$450,204
Net Profits	$62,094	$84,961	$109,080	$146,000	$206,568
Reserve and Surplus	$78,600	$107,545	$138,075	$184,810	$261,478
Total owner’s equity	$540,694	$604,506	$671,515	$767,901	$918,249
Total Liabilities and Owner’s Equity	$2,315,394	$2,410,506	$2,585,399	$2,853,053	$3,204,293

Sales Forecast
													Year 1
Particulars	January	February	March	April	May	June	July	August	September	October	November	December	Total Units Sold
Sales	30000	40000	35000	30000	35000	45000	35000	50000	40000	45000	50000	45000	480000	870000
Cost of Sales	25000	30000	25000	25000	25000	25000	30000	30000	25000	35000	35000	20000	330000	280000
Gross Profit	5000	10000	10000	5000	10000	20000	5000	20000	15000	10000	15000	25000	150000	590000



													Year 2
Particulars	January	February	March	April	May	June	July	August	September	October	November	December	Total Units Sold
Sales	30000	45000	35000	35000	45000	40000	30000	40000	40000	60000	75000	45000	520000	901400
Cost of Sales	25000	35000	30000	25000	35000	30000	25000	25000	25000	50000	35000	35000	375000	291200
Gross Profit	5000	10000	5000	10000	10000	10000	5000	15000	15000	10000	40000	10000	145000	610200


													Year 3
Particulars	January	February	March	April	May	June	July	August	September	October	November	December	Total Units Sold
Sales	45000	40000	55000	50000	75000	45000	50000	60000	55000	50000	50000	50000	625000	962164
Cost of Sales	15000	20000	45000	40000	60000	35000	45000	40000	40000	40000	40000	40000	460000	304304
Gross Profit	30000	20000	10000	10000	15000	10000	5000	20000	15000	10000	10000	10000	165000	657860



													Year 4
Particulars	January	February	March	April	May	June	July	August	September	October	November	December
Sales	50000	50000	65000	60000	55000	55000	65000	60000	50000	50000	50000	50000	660000	1044017
Cost of Sales	30000	35000	40000	45000	50000	25000	45000	30000	40000	40000	40000	40000	460000	319519
Gross Profit	20000	15000	25000	15000	5000	30000	20000	30000	10000	10000	10000	10000	200000	724498

Common Financial Ratios
Debt Ratio (Total Liabilities / Total Assets)	1.00	1.00
Current Ratio (Current Assets / Current Liabilities)	3.54	3.14
Working Capital (Current Assets – Current Liabilities)	654,494	652,116
Assets-to-Equity Ratio (Total Assets / Owner’s Equity)	3.28	2.99
Debt-to-Equity Ratio (Total Liabilities / Owner’s Equity)	3.28	2.99

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