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Stinky Laundry Business Analysis

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Stinky Laundry Business Analysis
Table of Contents
Table of Contents 2
1. Background 4
The general nature of this business activity 4
Benefits to society in terms of need satisfaction 4
Why we chose this business venture 5
2. Idea description 6
The nature of our products and services 6
Reasons why consumers will buy our products/services 7
Our special services 7
3. Idea feasibility 8
4. Location 11
7 important site selection factors 11
Location of business 12
How location factors apply to our business 12
5. Enterprise Forms 13
Type of enterprise 13
Factors of selection of enterprise 13
Legal name of business 13
6. The Environment 14
Internal environment 14
Market Environment 15
Macro environment of South Africa 17

1. Background
The general nature of this business activity
The cleaning of garments and other fabrics, that get dirty from everyday use, has always been a difficult task. Machines have reduced the labour but not much has changed in the three basic functions of laundering: cleaning, drying and finishing.
The commercial laundry business offers laundry services to customers and is a very reliable and profitable investment. It requires minimum supervision and low operating costs. It has a typical return on investment of about 20-30% and classified as one of the safest investments with numerous benefits.
It is a great part-time venture that requires a small amount of or no prior experience and can be located almost anywhere. It is highly profitable especially when located in minority communities and low-income neighbourhoods. It is also one of the most recession-proof investments. Many households use Laundromats on a daily basis with the key customer representing the fastest growing segment in the nation.
Benefits to society in terms of need satisfaction
The predominant benefit of the services offered by a Laundromat is convenience. People make use of this service because getting their clothes and other garments cleaned is a basic need satisfied by services

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