Financial Planning PT. Luxury Indah Jaya
�Premium Laundry Services�
Thomas
Hadinata�*, Havidz Aima�, Tantri
Yanuar Rahmat Syah3
1*,2,3 Management Study Program, Faculty of Economics and Business, Esa Unggul University, Jakarta, Indonesia
Email: 1*[email protected],
2[email protected], 3[email protected]
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KEYWORDS |
ABSTRACT |
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Premium Laundry; Financial Plan; NPV; IRR; Financial Ratio |
One of the tourism industries that
contributes to national development is the hotel industry. The hotel business
can support other businesses, whether it is the right place to hold meetings
or cooperation agreements, it can also be a place to increase human resource
competency through training. The hotel is also a means for family gatherings
to relieve fatigue, a place to stay for delegations from fellow countries at
state meetings. The existence of a hotel must of course be accompanied by
excellent service, including cleanliness and quality of towels and linen for
its guests. The presence of a laundry business service that serves hotel
needs is very much needed. This business plan offers a premium laundry
service specifically for 4 and 5 star hotels. PT. Luxury Indah Jaya (Luxury
Laundry) not only offers towel and linen laundry services but also provides
towel and linen rental and guarantees the availability of hotel needs. Luxury
Laundry has an IFE score of 2.90 and an EFE score of 3.02, where Luxury Laundry's
competitive strength is in the medium category based on the results of the
Five Forces Portes Model analysis. Luxury Laundry's
financial plan is prepared by considering capital requirements and all costs
in running a business company. This research aims to analyze Luxury Laundry's
financial planning. The method used in this research is qualitative analysis. |
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INTRODUCTION
The tourism industry is one of the industries
that contributes to the economy in Indonesia. The existence of the tourism
sector is very necessary to bring in foreign exchange and state income. Even
though previously the tourism industry had stopped its growth due to the
Covid-19 pandemic that hit the world, now the tourism industry is able to
develop again. This can be seen from the number of foreign tourists visiting in
April 2022, which has increasingly shown a positive trend since the beginning
of 2022. It was recorded that the number of foreign tourists visiting Jakarta
was 36.06. This figure grew by 170.2% YoY from last year. Comparison (YoY)
2021-2022 foreign tourist visits to Jakarta increased by 683.5%.
In supporting the tourism industry, one factor that
plays an important role is the hotel sector. Based on data from the Central
Statistics Agency, there are no less than 212 hotels spread across Jabodetabek. In Jakarta itself, hotels are dominated by
4-star and 5-star hotels. These hotels really maintain the quality of comfort
and cleanliness. With the number of 4 and 5 star hotels spread across the
Greater Tangerang and DKI Jakarta areas and the lack of interest in
establishing and managing in-house laundry by 4 and 5 star hotels, it is
certain that there is a need for laundry services with premium service and
guaranteed best quality in Tangerang. Raya and DKI Jakarta are still lacking.
Moreover, driven by hotel occupancy levels following the easing of Community
Activity Restrictions (PPKM) related to the Covid 19 pandemic, laundry business
opportunities are very open and promising.
This very open business opportunity must of
course be able to meet the standards required by the hotel industry. To meet
these needs, of course laundry services must have very good planning. Good
financial planning is very necessary to maintain business continuity. To
achieve good finances, according to (Joo &
Grable, 2004) companies must pay attention to spending plans, keep debt low and
accumulate savings. Strategic thinking focuses on long-term goals which are
very different from the current situation and there are many ways to achieve
long-term goals (Liu et al., 2021). The purpose of financial planning is to
maintain operational cash flow and financial efficiency to achieve the
company's vision. The goal is that finance can provide support to the marketing
department, operational department and human capital department in carrying out
the goals and targets that have been planned for the future.
This research aims to analyze the financial
planning of Luxury Laundry with several measurements such as projected
financial position and profit and loss, Return On Investment (ROI), Net Present
Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP) , liquidity ratio, solvency ratio, profitability ratio and
activity ratio.
METHOD
The method used in this research is qualitative
analysis. Qualitative analysis is analyzing data, written descriptions and oral
descriptions, then connecting them with data, written descriptions and other
oral descriptions to obtain clarity of truth, and vice versa, to obtain new
perspectives or to strengthen existing perspectives (Basias,
N., & Pollalis, 2018). The qualitative research
workflow begins by asking questions, then formulating a hypothesis, preparing
data collection tools, then carrying out data collection activities, then
carrying out data analysis, and finally writing research conclusions (Rijali, 2019). In qualitative research, conceptualization,
classification, and description are developed based on "events"
obtained during field activities. This research is included in Descriptive
research because this research aims to describe one incident, namely financial
planning at Luxury Laundry. To analyze the company's sustainability better in
the future, a good financial plan is also needed. So this research focuses on
discussing matters related to financial planning at Luxury Laundry, namely (1)
Financial Report Projections (2) investment feasibility analysis (3) Liquidity
Ratios (4) Solvency Ratios (5) Profitability Ratios (6) Ratios Activity.
Financial planning at Luxury Laundry is made
for the company's sustainability to be better in the future and to survive,
good financial planning is also needed (David, 2011). PT Luxury Indah Jaya
(Luxury Laundry) in running its business uses appropriate financial planning so
that it can manage and advance the company into the future. The following is
the financial framework for PT Luxury Indah Jaya as shown in the image below.
Figure 1. Financial Framework
Financial
Goals and Targets
In line with PT Luxury Indah Jaya's vision,
namely to become a market leader in the premium class laundry service industry,
always innovating to provide appropriate, fast, efficient, effective and
economical solutions as well as presenting high quality products that are able
to meet international standard needs. The objectives of Luxury Laundry are as
follows:
Table 1
Financial Goals and Targets
|
No |
Company Short
Term Goals (Year 1-2) |
|
01 |
Obtain initial capital to run the company. |
|
02 |
Allocate funds according to the established
division budget. |
|
03 |
Record the achievement of income and cost
efficiency with predetermined profit targets. |
|
No |
Company
Medium Term Goals (Year 3 - 4) |
|
01 |
Manage cash flow to pay operational needsexpenses (opex) andcapital expenditure (capex). |
|
02 |
Monitor and evaluate the efficiency of budget
use for each division. |
|
03 |
Prepare a budget for expanding market
coverage in operational areas. |
|
04 |
Negotiate with prospective banks regarding
operational funding needs |
|
No |
Company Long
Term Goals (Year 5 onwards) |
|
01 |
Prepare a budget for new machine expansion. |
|
02 |
Monitoring the achievement of revenue targets
and evaluating cost efficiency in each company division. |
Income
Planning
Income planning is calculated by estimating
income from each product and service offered by Luxury Laundry where the
assumption is that income from each product and service increases every year
according to the targeted market share.
Table 2
Income Planning
Related
Cost Planning
Costs related to planning are the costs
required to run the company. Operating costs are indirectly related to company
profits, although there is a direct relationship with Net Profit Margin (Krasniqi, Ahmeti, & Ahmeti, 2020). The costs for planning Luxury Laundry
include: labor costs, marketing costs, operational costs, risk management costs
and depreciation costs.
Labor
costs
The following is a plan for labor costs over
the next five years.
Table 3
Labor costs
Marketing Costs
According to (Huang et al., 2019), marketing
and promotion through social media has a positive impact on company growth. The
following is a marketing cost plan for the next five years.
Table 4
Marketing Costs
Operating
costs
The following is the operational cost plan for
the next five years.
Table 5
Operating costs
Cost of
depreciation
The following is a plan for depreciation costs
over the next five years.
Table 6
Cost of
depreciation
Investment
Planning
Investment planning is very important and an
inseparable part of the Company's financial planning. Investment is a plan
regarding the things needed to run a company. Before making an investment, it
is necessary to pay attention to the benefits of the investment against the
costs that will be incurred, so that an investment can be declared feasible.
The following is Luxury Laundry's investment plan in the next five years.
Table 7
Investment
Planning
Initial Funding
Planning
PT Luxury Indah Jaya's initial funding sources
needed to start and build this business must be planned from the start. The
source of capital requirements for Luxury Laundry comes from the parent company
amounting to 64%, 18% from investors and 18% is debt to the parent. The
following is a plan for Luxury Laundry's initial capital requirements.
Table 8
Initial Funding Planning
|
Sources |
Amount |
Proportion |
|
Parent company |
Rp17.500.000.000 |
64% |
|
Investor (equity) |
�
Rp5.000.000.000 |
18% |
|
Shareholder debt |
�Rp5.000.000.000 |
18% |
|
Total Capital |
Rp27,500,000,000 |
100% |
Projected
Profit and Loss Statement
The profit and loss report provides information
on the achievements of the company's operations related to the company's
ability to generate profits, as well as providing information for investors to
determine the condition of the company through future cash flows. The following
is a projected profit and loss statement for PT Luxury Indah Jaya for the next
five years.
Table 9
Projected
Profit and Loss Statement
Projected
Financial Position
The projected financial balance of PT Luxury
Indah Jaya is calculated and presented over a period of five years. The balance
sheet planning consists of asset accounts, namely in the form of current
assets, fixed assets and liability accounts owned by PT Luxury Indah Jaya.
Table 10
Projected
Financial Position
Cash
Flow Projections
PT Luxury Indah Jaya's cash flow report
describes the company's cash management. Positive cash flow is if the final
balance from the first year to the fifth year shows a surplus with an increase
each year.
Table 11
Cash Flow Projections
Investment
Feasibility Analysis
To convince capital owners, an investment
feasibility study is prepared from the start, where an investment feasibility
analysis is important for a company to carry out so that the relevant investors
can be sure of the level of return that investors will get in return for
providing capital. The following is an analysis of the feasibility of investing
in Luxury Laundry.
Table 12. Investment Feasibility Analysis (ROI,
NPV, IRR, PBP)
Based on the results of the investment
feasibility analysis, the ROI value generated from Luxury Laundry for 5 years
is 4% - 12% with an average value of 10%, which means that this project can
generate good income. The NPV value of Luxury Laundry investment is IDR 12,376
million, where in investment decisions if the NPV value of a project is above
0, then the project is recommended (Deng, He, Chai, & Wang, 2023). The IRR
result on Luxury Laundry investment is 20.32%, which is quite promising in
carrying out a project, because the IRR value of 20.32% is still higher
compared to other business investments so that Luxury Laundry investment is
more attractive to investors (Alizadeh, Tabil, Mupondwa, Li, & Cree,
2023). Luxury Laundry's payback period is 3 years 8 months, which is quite a
good investment in a new business.
Liquidity Ratio
Liquidity ratios are analyzes related to a
company's ability to meet its short-term obligations (Et. al., 2021). This
analysis looks at how the company's finances are able to pay the company's debt
which will mature within one year. The following table shows the results of PT
Luxury Indah Jaya's liquidity ratio calculation.
Table 13
Liquidity Ratio
From the results of the analysis above, the
current ratio and quick ratio show above 1, which means that this company has
good liquidity in terms of its ability to pay short-term debt.
Solvency Ratio
Solvency or Leverage Ratio is the company's
ability to pay its obligations, both short and long term (OSHO & OMOLE,
2022). This ratio is also useful for measuring how much assets or wealth a
company has that is financed by debt. The following are the results of the Debt
Asset Ratio (DAR) and Debt to Equity Ratio (DER) analysis calculations from PT
Luxury Indah Jaya.
Table 14
Solvency Ratio
From the results of the analysis above, DAR and
DER show results below 100%, which means that this company has the ability to
fulfill its debt payment obligations.
Profitability
Ratio
This ratio is a comparison to determine the
company's ability to earn profits from the income earned (Ichsani,
Hertina, & Effendi, 2021). This profitability
ratio is also a measurement of the company's ability to generate stable profits
above standard. PT Luxury Indah Jaya uses gross profit margin and net profit
margin in calculations. The following is the profitability ratio of PT Luxury
Indah Jaya.
Table 15
Profitability Ratio
From the results of the analysis above, the
gross margin and net margin show that this project can generate relatively good
margins or profits. ROA and ROE analysis shows that the percentage of income
above bank deposits is an average of 2% -3%.
Activity Ratio
The activity ratio is a ratio that measures the
company's effectiveness in utilizing all its resources. The following is the
activity ratio of PT Luxury Indah Jaya.
Table 16. Activity Ratio
From the results of the asset turnover
analysis, it shows that assets are used more than once to generate income.
CONCLUSION
With good financial planning, companies can
maintain business continuity. This is very helpful in making business decisions
in carrying out company operations.
From the results of the discussion above, it
can be seen that the NPV value of Luxury Laundry is 12,376 with an IRR of
20.32%. From these two indicators it can be said that the investment made to
run this laundry business is feasible, this is because the NPV value shows a
positive number and the IRR value is 20.32% where the cost of equity figure
used in running the business is 5%. Apart from that, the rate of return
(Payback Period) of this investment is 3 years and 8 months. This figure can be
said to be quite fast for a newly formed business with a gross margin of 33%
and a Net Profit Margin of 4% - 11% in the next five years. From these results,
it can be concluded that the Luxury Laundry business is worthy of realization.
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