Assigment 1

You are an Entrepreneur

Katrina Harris

Dr. Terafesa

Financial Accounting

August 16, 2013

The entrepreneur industry can yield a substantial amount of revenue especially if there is a high need or want for the service or product that is being sold. What I notice in my community that there are more families without washers and dryers than families with washers and dryers. I also notice those families with washers and dryers tend to make trips to the Laundromat based off of convenience that it produces. Just based off of observation, there are more Laundromats in lower income areas than they are in middleclass and or higher income families. There are Laundromats that are located in high scale neighborhoods but very few. Opening a facility could be considered but not a high priority like the other locations. The Laundromat service provides a service to lower income families or those individuals who prefers convenience. I’m looking for a Laundromat that is reasonable for the consumer, but gains a reasonable profit percentage. There are a lot of colleges in the area but the schools typically offer Laundromat services in the dormitories. There are a few apartment complexes in the city but not many, and usually they provide that service also. Due to the hours of operation and the size of the facility, the franchisee is going to have to consider hiring a staff. The Laundromat would be open from 7 in the morning until 11 at night and open seven days a week. I would hire about ten workers. The workers would consist of three managers and seven full and part time workers. Each manager would work a thirty five to forty hour week, the full time workers have the same hours, but the part time workers receive twenty to thirty hours a week. The wages are reasonable and a comfortable living wage.

The assets consist of the Cash on hand, prepaid expense, laundry equipment, and Accumulated Depreciation. The liabilities consist of Accounts payable, mortgage...