How to Start a Water Refilling Station Business

September 16, 2011 Business Ideas 3 Comments

Water is very essential for our daily life routine. eople need to drin! water in order to li"e# Howe"er, be$ause of
%uman introdu$tion, dire$tl& or indire$tl&, of substan$es into t%e marine en"ironment, our waters be$ome polluted
and undrin!able# Be$ause of t%e %ig% demand for $leaner water, starting a water refilling station business
becomes one of the most promising and profitable business today.
Procedures in starting a water refilling station business:
'e$ide if &ou want to put up &our own water refilling station or (ust a$)uire a water refilling station fran$%ise# If &ou
%a"e de$ided to put up &our own, pro$eed below*
1. Make a Business Plan: t%is is $reated to outline &our business+s "ision, brand "alues, identit&, and %ow it %as to
operate to be$ome su$$essful# It also %elps in !eeping &ou fo$used on &our business goals and ma!ing &our business
attra$ti"e to in"estors#
2. ight !ocation: finding a good lo$ation is one of t%e problems a new business owner must fa$e# ,%e lo$ation
needs to be near &our target mar!et, ma!ing &our business "isible to people or loo! for a site t%at is %ea"& in foot
traffi$# Situate in pla$es near s$%ools, %ospitals and $lini$s, offi$es, %otels, apartment and %ig%-rise buildings, and
subdi"isions#
". !ook for a #upplier: find a supplier of water refilling e)uipments and as! for t%eir pri$e list# 'on+t settle on one
supplier onl&# If &ou t%in! t%eir pri$es are too %ig% for &our budget t%en find anot%er supplier and $ompare t%eir
pri$es# .fter stud&ing t%e )uotations and t%e total $osts, de$ide w%i$% &ou t%in! is enoug% for &our budget, and
$%oose t%e rig%t e)uipments to pur$%ase# 'on+t bu& $%eap ma$%ines and e)uipments as t%ese will not last long#
.fter finali/ing t%e lo$ation for &our water refilling station, $onta$t &our supplier and as! for a la&out plan t%at &ou
$an $op& for $onstru$ting &our water refilling station# But a good supplier will go to &our area to measure, e"aluate
and ma!e t%e rig%t design for &our water refilling station business#
0ftentimes, t%e supplier will as! for a down pa&ment before starting assembling t%e ma$%ine, t%e lead time is about
2-3 wee!s# 'on+t forget to as! for a re$eipt w%en pa&ing for a down pa&ment#
.fter $losing t%e deal wit% &our supplier, &ou $an now start t%e $onstru$tion of &our water refilling station w%i$%
will ta!e 3 to 1 wee!s to finis%# .t t%e same time, start ma!ing t%e deep well if t%is will be &our preferred water
sour$e# .s! &our supplier to "isit t%e site to ma!e sure t%e $arpenters are stri$tl& following t%e la&out plan,
importantl& t%e design on t%e was%ing area, piping and drainage2# W%ile t%e $onstru$tion is on-going, &ou $an now
appl& for a business permit to sa"e time#
$. egister the Business: t%is will ma!e &our business legal and fun$tional# If &ou+re a single owner, go to ',I,
w%i$% will issue a $ertifi$ate of registration of business name 3list at least 4 to 10 preferred business names2# .fter
&ou get t%e $ertifi$ate for registered business name from ',I, go to &our lo$al muni$ipal offi$e and appl& for a
5a&or+s business permit# ,%e pro$ess will ta!e about 2 to 3 wee!s depending on t%e area# Some muni$ipal offi$e
will re)uire &ou to submit 3a2 water anal&sis of potabilit& 3p%&si$al, $%emi$al and ba$teriologi$al test2 from &our raw
or sour$e of water# 3b2 6ngineering drawings 3building and ele$tri$al plan2 signed b& a sanitar& engineer and ot%er
$ommon legal re)uirements w%en appl&ing for a building permit#
.fter &ou get t%e business permit and operation permit from muni$ipal offi$e, go to BIR and fill-up form 0406 and
pa& at t%e $ounter# 0n$e appro"ed b& t%e BIR, &ou+re now read& to print &our re$eipts in t%e printing press# 7ust
bring and s%ow t%em t%e appro"ed BIR form 0406#
8ou $an now start bu&ing ot%er supplies &ou will need li!e water $ontainers, seals, %eat gun, saniti/er soap, et$# .t
t%e same time, &ou $an also start $onstru$ting &our business+s signage and sti$!er labels for &our produ$ts#
0n$e t%e $onstru$tion is finis%ed and t%e water sour$e is read&, &ou $an now s$%edule t%e installation of t%e
ma$%ines and e)uipments 3it+s better to do it at nig%t to a"oid people around2# Complete installation ta!es 1 to 2 da&s
onl&#
'r& run t%e ma$%ine and e)uipments for 1 to 3 da&s before selling t%e produ$t, or get a sample for a water anal&sis#
9o to t%e nearest '0H offi$e and as! t%e pro$edures on %ow to test t%e water# 3,ip* it+s better to get a water sample
after a mont% of operation to ma!e sure t%e result of water anal&sis is good#2
Wait for t%e result of water testing# If it passed, t%en good lu$! and wel$ome to t%e $lub: If it failed t%e test, $all
immediatel& t%e one w%o installed &our ma$%ine and let t%em $%e$! and anal&/e w%&#
Basic Water efilling #tation %easibility #tudy
.# Capital In"estment
1# Water Refilling 5a$%ine ; 240,000#00
2# Reno"ation or new store at least 20s)m si/e ; <4,000#00
3# 'eli"er& "e%i$le 3motor$&$le wit% $arrier or multi-$ab2 ; <4,000#00
1# Business permit = ot%er legal do$s 3',I, 5a&or+s permit, Water testing, et$#2 ; 10,000#00
4# Initial Supplies >mis$ellaneous ; 31,<40#00
o a2 140 Bottles slim ; 1?,<40#00
o b2 40 Bottles round ; <,400#00
o $2 %eat gun- 2,400#00
o d2 Sti$!ers ; 3,000#00
6# 0t%ers ; ?,240#00
,otal @ 140,000#00
Aote* .$tual in"estment ma& in$reased or de$reased depends on &our a$tual resour$es, eBample*
a#2 less amount for t%e deli"er& "e%i$le if &ou alread& %a"e eBisting or &ou $an bu& 2nd unit#
b#2 less amount for t%e store building if &ou %a"e eBisting#
$#2 in$rease or de$rease amount on refilling e)uipment, depends on w%at t&pe of water produ$t &ou wants to
sell 3 e#g# 5ineral is onl& 140,000#00 et$#2
B# Sales In$ome
C%e$! mar!et pri$e per 4 gal# $ontainer# ri$e ma& "ar& depends on t%e area w%at t&pe of water produ$t &ou want to
sell*
5ineral Water ; 20 C 24 per $ontainer
urified Water ; 30 C 34 per $ontainer
.l!aline Water ; 14 C 40 per $ontainer
I Water ; 200 C 240 per $ontainer
B1# 5ont%l& Sales ; 3D,000#00
1S, 2 5ont%s* ,arget is at least 40 $ontainers >da& 340 $ontainers B 30#00 selling pri$e B 26da&s2
B2# 5ont%l& 6Bpenses ; 14,600#00
1# 5anpower>salaries ; 400> da& or D,100#00 >mo#
o 1 dri"er ; 200 >da&
o 1 re-filler ; 140 >da&
2# 6le$tri$ bill ; 3,400#00
3# %one bill ; 400#00
1# ,ransportation > gas allowan$e ; 1,400#00
4# Consumables and ot%ers ; 1,000#00
B3# Aet rofit- 23,100#00 39ross Sales ; 9ross eBpenses @ Aet rofit2
Aote* 8ou $annot $ompute &our mont%l& sales based from &our ma$%ine $apa$it& 39' 9allon er 'a&2 li!e ot%er
"endor+s $omputation, simpl& be$ause &ou $annot sold 200 bottles a da& in t%e first 2 mont%s of business operation
unless &ou alread& establis%ed fre)uent bu&ers in &our area#
ItEs eas& to start wit% t%is !ind of business, %ereEs t%e pro$edures %ow*
1# Foo! for a supplier or seller of water refilling e)uipments and as! for t%e pri$e list of different e)uipments t%at
&ou $an $%oose, if possible, as! for t%e feasibilit& stud& too to !now %ow mu$% t%e $ost or total in"estment needed
to put-up t%is t&pe of business#
2# .fter stud&ing t%e )uotations and t%e total $ost w%i$% &ou t%in! is enoug% for &our budget or $apital, t%en &ou $an
start negotiating wit% t%e supplier# .s! for dis$ounts and !now t%e after-sales support &ou $an get from t%em li!e
maintenan$e and warrant&# 'onEt go for $%eap e)uipments as t%is will not be wort% in t%e long run# .lwa&s $ompare
and $%e$! $arefull& w%at &ou $an see on t%e p%otos t%e& gi"e against t%e a$tual e)uipment#
3# .fter $%oosing t%e rig%t e)uipment to pur$%ase, loo! for a good pla$e to put &our refilling station# Some lo$al
muni$ipals re)uire a minimum of 24 s)m# total area for t%is t&pe of business, but oftentimes 20 s)m is enoug%# If
&ou donEt want to rent a pla$e, &ou $an use &our own %ouse# Sales will not be a problem e"en &ouEre inside a
subdi"ision#
1# If &ou alread& found t%e lo$ation for &ou refilling station, &ou $an now $onta$t &our preferred e)uipment supplier
for &our final negotiations# .s! for a t&pi$al la&out of a water station from t%em t%at &ou $an $op& for &our own
water station# Some suppliers will $%e$! and e"aluate t%e pla$e for t%e best design and la&out#
4# 0ftentimes, t%e supplier will as! for a down pa&ment before starting to prepare &our e)uipments# ,%e lead time
for $omplete assembl& is 2 to 3 wee!s# .s! for a re$eipt or letter w%en pa&ing for a down pa&ment#
6# .fter $losing t%e deal wit% t%e supplier, &ou $an now start t%e $onstru$tion of &our water station t%at will ta!e 3 to
1 wee!s to finis%# Start also ma!ing t%e deep well if t%is will be &our preferred water sour$e# Fet t%e supplier $%e$!
&our water station during t%e $onstru$tion to so t%at t%e la&-out will be stri$tl& followed# It is "er& important t%at t%e
$arpenter follows t%e la&-out $arefull& espe$iall& on t%e was%ing area, pipings and drainage la&out# W%ile t%e
$onstru$tion is on-going, &ou $an appl& for a business permit to sa"e time#
<# 9o to t%e nearest ',I in &our area and bring &our residen$e $ertifi$ate and baranga& $learan$e# ItEs ad"isable to
list 4 to 10 names &ou $%oose to name &our business to a"oid dela& w%en &our preferred name was alread& ta!en#
?# .fter getting t%e registered business name from ',I, go to &our lo$al muni$ipal offi$e and appl& for a 5a&orEs
business permit# ,%e pro$ess ta!es 2 to 3 wee!s depending on t%e area# Some muni$ipal offi$e will re)uire &ou to
submit 3a2 water anal&sis of potabilit& 3p%&si$al, $%emi$al and ba$teriologi$al test2 from &our raw or sour$e of
water# 3b2 6ngineering drawings 3building and ele$tri$al plan2 signed b& a sanitar& engineer at ot%er $ommon legal
re)uirement w%en appl&ing for a building permit#
D# .fter getting t%e business permit and operation permit from muni$ipal offi$e, go to BIR and fill-up form 0406 and
pa& at t%e $ounter# .fter pro$essing at BIR, &ouEre now read& to ma!e and print &our re$eipts from t%e printing
press# Some printing press will re)uire &ou to s%ow t%e appro"ed form 0406 issued b& BIR before printing &our
re$eipts#
10# ItEs now time to bu& ot%er supplies &ou will need li!e water $ontainers, seals, %eat gun, saniti/er soap, et$# 8ou
$an also start doing &our storeEs signage and sti$!er labels for &our produ$ts#
11# 0n$e t%e $onstru$tion of &our water station is finis%ed and t%e water sour$e is read&, &ou $an now s$%edule t%e
installation of t%e e)uipments 3itEs better to do it at nig%t not too man& people are roaming around2# Complete
installation ta!es 1 to 2 da&s onl&#
12# .llow t%e ma$%ine and e)uipments from 1 to 3 da&s to dr&-run before selling t%e produ$t, or get a sample for a
water anal&sis# 9o to t%e nearest '0H offi$e and as! t%e pro$edures on %ow to test t%e water#
,ip* itEs better to get a water sample after a mont% of operation to ma!e sure t%at t%e result of water anal&sis is good#
13# Wait for t%e result of water testing# If it passed, t%en good lu$! and wel$ome to t%e $lub: If it failed t%e test, $all
immediatel& t%e one w%o installed &our e)uipments and let t%em $%e$! and anal&/e w%&#
&ther %re'uently (sk )uestions
G* W%at are t%e different t&pes of water &ou $an sellH
.* ,%ere are four t&pes of water t%at $an be produ$ed from t%e a"ailable e)uipments in t%e mar!et toda&#
1# 5ineral Water @ Fess in"estment but t%e disad"antage is s%orter s%elf life#
2# urified Water @ 6)uipments are more eBpensi"e t%at 5ineral pro$ess wit% t%e use of IRe"ersed
0smosis s&stemI, t%e water will last up to 6 mont%s#
3# .l!aline Water @ Current fad be$ause of positi"e write-ups about %ealt% benefits for people, but
li!e mineral water, t%e s%elf life is s%ort#
1# I Water @ Started from 7apan, !nown to %a"e good effe$ts in peopleEs %ealt% but itEs still )uite
eBpensi"e and not t%at popular in t%e %ilippines# ,%e $ustomers are mostl& C%inese# ,%e selling pri$e is
about 200 to 240 per $ontainer 34gal#2
G* W%at is t%e best sour$e of water, Aawasa or deep wellH
.* 6it%er of t%e two is fine, but deep well will gi"e &ou a long term sa"ings $ompared to AawasaEs $ostl& mont%l&
$%arge for $ommer$ial use#
G* How man& personnel is re)uired to run a water stationH
.* .t first, 3 is enoug%, 1 dri"er, 1 %elper and 1 refiller>was%er# ,%e number of personnel is relati"e to t%e demand of
&our produ$ts#
G* W%at are t%e $onsumable items wit% t%is t&pe of businessH
.nswer*
Sediment Jilter @ repla$e e"er& mont% or depending on t%e )ualit& of t%e water sour$e#
9.C or Carbon Jilter @ usuall& 6 to ? mont%s a"erage but if t%e water sour$e is not good ma&be 1 mont%s
onl&
Carbon fillings @ ? mot%s to 1#4 &ears a"erage lifespan, or will be repla$ed if bro!en or t%e water starts to
smell
'ail& use of seals
Sti$!ers
G* How true t%at t%is business is profitable and fast R0IH
.* .ll business is not instant magi$, t%e potential is good simpl& be$ause water is a ne$essit&# But t%is t&pe of
business, as wit% ot%er business re)uires %ard-wor!, patien$e, and abilit& to sell &our produ$t#