Banana Sdn Bhd is a newly registered company that will provide fast and high-quality laundry care and cleaning services to its clients. Banana Sdn Bhd is scheduled to begin operations on January 15 2018. Banana Sdn Bhd will be owned and operated by initiated by four phenomenon and ambitious men, Yam Ken Lip, Ho Woei Loong, Chow Jyi Shyan and Lim Yu-Quan.
Banana Sdn Bhd will provide a wide range of laundry and cleaning services to its market which includes: dry cleaning, laundry care, drying, pressing and folding for both normal and special laundry items.
Banana Sdn Bhd will target those individuals who are staying in the highly dense and populated residential areas within Setapak, which includes apartments or condominium and landed residential areas. Key factors such as the size, profitability, growth potential, and risks associated with the market segments were taken into consideration prior to targeting a lucrative market.
At present, some of the laundry service providers in Setapak are overwhelmed with the number of customers. This actually suggests that the demand for laundry services has exceeded the supply. Most of the laundry service providers ‘mass market’ their services and do not actively serve for a specific market. Some have found themselves deteriorate owing to the fact that their facilities do not meet or are not able to catch up to this upsurge in demand. There are some instances where clients are rejected or simply told to collect their laundry after a number of days. This is as a result of existing businesses being under capacity. The shortfalls in terms of laundry services in Setapak opens great opportunities for ventures such as Banana Sdn Bhd to canvass.
Banana Sdn Bhd will stand out from its competitors in the marketplace in ways: Banana Sdn Bhd will provide door-to-door services to collect and deliver the laundry to and from its clients to reduce the transition time and to speed up the overall processing time; lower cost at RM4/kg of laundry as compared to the competitors at RM6/kg of laundry and charge a lower minimum order per trip at RM20 as compared to the competitors which charge at RM25; Banana Sdn Bhd will provide fast quality services and will provide same-day delivery service; decentralized location as Banana Sdn Bhd will not own any laundry shops but provide the laundry cleaning services to its clients by having collaborations with the conventional or non-self-service local laundry shops and achieve mutual beneficial effects for both parties .
Banana Sdn Bhd’s sales strategy is three tiered. First, the company will plan on achieving first year direct sales of RM3,359,080 in the target market. Secondly, the company will plan to expand its business by constantly spreading its targeted market region and having more employees to support the business and achieve a more profitable level of sales equal to or better than RM7,083,648 in year 2 and RM9,208,42 in year 3. Thirdly, the company plans to aggressively promote its services with a higher profit margins to allow for maximized profits.
In the first year of operations, Banana Sdn Bhd plans on breaking even. In years two and three the company will become more profitable as the number of clients increases and the area of the market region expands and as the company learns to become more efficient in operations.
The initial startup expenses for Banana Sdn Bhd include: capital expenditure of RM108,000, deposit and prepayments of RM25,000, and business support of RM110,000. Capital funds will be used to renovate the office, acquire furniture and fittings, computer hardware, specialized field equipment software and internet servers.
Deposits and prepayments fund will be used for promoting and advertising the business through some popular radio stations in Malaysia and serves as down payment for the fleet of vehicles to buy with car loan.
Promotions will be given to the customers on special events or days. Banana Sdn Bhd will also make collaborations with some retailers to provide voucher or discount codes to achieve mutual beneficial effects for both parties. Customer will also be rewarded with special discount or promotion code when they have successfully invited new customer to Banana Sdn Bhd.
In order to properly fund the startup of Banana Sdn Bhd, the financing package consists of personal equity and traditional borrowing Mr Yam, Mr Ho, Mr Chow and Mr Lim will contribute a total of RM100,000 or 35% of the project’s total capital costs. The remaining balance of RM181,000 or 65% will be financed by a commercial bank over a five years term.