Water is very essential for our daily life routine. People need to drink water in order to live. However, because of human introduction, directly or indirectly, of substances into the marine environment, our waters become polluted and undrinkable. Because of the high demand for cleaner water, starting a water refilling station business becomes one of the most promising and profitable business today.
Procedures in starting a water refilling station business:
Decide if you want to put up your own water refilling station or just acquire a water refilling station franchise. If you have decided to put up your own, proceed below:
1. Make a Business Plan: this is created to outline your business’s vision, brand values, identity, and how it has to operate to become successful. It also helps in keeping you focused on your business goals and making your business attractive to investors.
2. Right Location: finding a good location is one of the problems a new business owner must face. The location needs to be near your target market, making your business visible to people or look for a site that is heavy in foot traffic. Situate in places near schools, hospitals and clinics, offices, hotels, apartment and high-rise buildings, and subdivisions.
3. Look for a Supplier: find a supplier of water refilling equipments and ask for their price list. Don’t settle on one supplier only. If you think their prices are too high for your budget then find another supplier and compare their prices. After studying the quotations and the total costs, decide which you think is enough for your budget, and choose the right equipments to purchase. Don’t buy cheap machines and equipments as these will not last long.
After finalizing the location for your water refilling station, contact your supplier and ask for a layout plan that you can copy for constructing your water refilling station. But a good supplier will go to your area to measure, evaluate and make the right design for your water refilling station business.
Oftentimes, the supplier will ask for a down payment before starting assembling the machine, the lead time is about 2-3 weeks. Don’t forget to ask for a receipt when paying for a down payment.
After closing the deal with your supplier, you can now start the construction of your water refilling station which will take 3 to 4 weeks to finish. At the same time, start making the deep well if this will be your preferred water source. Ask your supplier to visit the site to make sure the carpenters are strictly following the layout plan, importantly the design on the washing area, piping and drainage). While the construction is on-going, you can now apply for a business permit to save time.
4. Register the Business: this will make your business legal and functional. If you’re a single owner, go to DTI, which will issue a certificate of registration of business name (list at least 5 to 10 preferred business names). After you get the certificate for registered business name from DTI, go to your local municipal office and apply for a Mayor’s business permit. The process will take about 2 to 3 weeks depending on the area. Some municipal office will require you to submit (a) water analysis of potability (physical, chemical and bacteriological test) from your raw or source of water. (b) Engineering drawings (building and electrical plan) signed by a sanitary engineer and other common legal requirements when applying for a building permit.
After you get the business permit and operation permit from municipal office, go to BIR and fill-up form 0506 and pay at the counter. Once approved by the BIR, you’re now ready to print your receipts in the printing press. Just bring and show them the approved BIR form 0506.
You can now start buying other supplies you will need like water containers, seals, heat gun, sanitizer soap, etc. At the same time, you can also start constructing your business’s signage and sticker labels for your products.
Once the construction is finished and the water source is ready, you can now schedule the installation of the machines and equipments (it’s better to do it at night to avoid people around). Complete installation takes 1 to 2 days only.
Dry run the machine and equipments for 1 to 3 days before selling the product, or get a sample for a water analysis. Go to the nearest DOH office and ask the procedures on how to test the water. (Tip: it’s better to get a water sample after a month of operation to make sure the result of water analysis is good.)
Wait for the result of water testing. If it passed, then good luck and welcome to the club! If it failed the test, call immediately the one who installed your machine and let them check and analyze why.
Basic Water Refilling Station Feasibility Study
A. Capital Investment
- Water Refilling Machine – P 250,000.00
- Renovation or new store at least 20sqm size – 75,000.00
- Delivery vehicle (motorcycle with carrier or multi-cab) – 75,000.00
- Business permit & other legal docs (DTI, Mayor’s permit, Water testing, etc.) – 10,000.00
- Initial Supplies /miscellaneous – 31,750.00
- a) 150 Bottles slim – 18,750.00
- b) 50 Bottles round – 7,500.00
- c) heat gun- 2,500.00
- d) Stickers – 3,000.00
- Others – 8,250.00
- Total = P 450,000.00
Note: Actual investment may increased or decreased depends on your actual resources, example:
- a.) less amount for the delivery vehicle if you already have existing or you can buy 2nd unit.
- b.) less amount for the store building if you have existing.
- c.) increase or decrease amount on refilling equipment, depends on what type of water product you wants to sell ( e.g. Mineral is only P150,000.00 etc.)
B. Sales Income
Check market price per 5 gal. container. Price may vary depends on the area what type of water product you want to sell:
- Mineral Water – P20 ~ P25 per container
- Purified Water – P30 ~ P35 per container
- Alkaline Water – P45 ~ P50 per container
- PI Water – P200 ~ P250 per container
B1. Monthly Sales – P39,000.00
- 1ST 2 Months: Target is at least 50 containers /day (50 containers x P30.00 selling price x 26days)
B2. Monthly Expenses – P15,600.00
- Manpower/salaries – P 500/ day or P 9,100.00 /mo.
- 1 driver – P200 /day
- 1 re-filler – P150 /day
- Electric bill – P3,500.00
- Phone bill – 500.00
- Transportation / gas allowance – 1,500.00
- Consumables and others – 1,000.00
B3. Net Profit- P23,400.00 (Gross Sales – Gross expenses = Net Profit)
Note: You cannot compute your monthly sales based from your machine capacity (GPD Gallon Per Day) like other vendor’s computation, simply because you cannot sold 200 bottles a day in the first 2 months of business operation unless you already established frequent buyers in your area.
Sources: entrepreneur magazine, equizone-enterprise.com