Business Plan

WATER REFILLING STATION

Submitted by:
Jessan Hipe Balasangay

In Partial Fulfillment of the requirement

for the subject Entrepreneurship

S.Y. 2018-2019
I. INTRODUCTION

Water station is one of the most important business

nowadays. It will provide healthy, clean, safe, and

purified drinking water at the lowest price. It will supply

water to all the families and households, small businesses

like meat shop, pharmacy and etc. even the government

offices and some facilities like hospitals and schools

inside the town. The water station is using the one of the

advance technology in water purification with a 28 stages

filtering process. The product offered with this water

refilling station is purified, clean, and safe. It was load

in different types and sizes of plastic bottles to meet

the needed of the customers.

BUSINESS GOALS

MISSION

The water station’s mission will provide customers with the

finest quality purified water. We aim to attract and maintain

customers. When we adhere to this maxim, everything else will

fall into place. Our services will exceed the expectation of our

customers.

VISION

The water station will be recognizing and known as and a trusted

brand in the water distribution industry.

OBJECTIVES

1. To acquire the necessary equipment for the operation of a

water station as well as acquisition of vehicles to deliver

water to our customers.

 2. To enhance the various steps is purifying water in order to

maintain the highest quality of water purification.

3. To provide our customer needs thru an efficient delivery

system and quick response on their orders and queries.

4. To maintain the loyalty of present costumers and attract other

market segments.

5. To sustain the profitability of the business and aim to branch

out to other locations.

BUSINESS OFFERING AND JUSTIFICATION

This water station is going to operate a standard and licensed

water refill station in our town, Catubig.

We are in the water refill station line of business to sell

and supply treated water to households, offices and industrial

facilities via of hygienic water tankers and we are going to do

all that is permitted by the law in the Philippines to achieve our

business goals and objectives.

The product offered by our water station is purified, clean

and safe water. It will be loaded in different types and sizes of

plastic bottles and containers to meet the needs of the customers.

According to the World Health Organization (WHO), about 3.4

million people die annually from water-related diseases. About a

million people (Filipino) get sick with water-diseases every year.

These problems are accredited with the poor water system in the

Philippines.
II. EXECUTIVE SUMMARY

This water station is a licensed and standard water station

that will be located in the residential area in Brgy. Poblacion,

Catubig. We have been able to secure a long-term lease for a

facility in a strategic location. The facility has government

approval for the kind of business we want to run and it is

easily accessible and we are deliberate about that.

We are in the water refill business to engage in the safe

and supply of treated water to residential apartments, offices,

houses and industrial facilities. We are also in business to

make profits at the same to give our customers value for their

money, we want to give people and business who patronize our

water the opportunity to be part of the success of this water

station.

III. BUSINESS PROPONENT

The proponent of the business is Jessan H. Balasanggay. In

the future, through years of studying, he will become an expert

in this creation of high-standard water.

The Business proponent himself is the main resource mobilizer

and the financial backer because he is the one who will manage

the capital at the business. Other resource mobilizer and

financial backer might be the investors who would invest in the

business.
IV. TARGET MARKET

When it comes to selling treated water, there is indeed

a wide range of available customer. In essence, our target

market can’t be restricted to just a group of people, but all

those who resides in our target market locations.

Our target customers are everyone in the area of

operation. Nevertheless despite the fact that there is also

purified water refilling station nearby, we intend to target

majority of people as the water offered will be well-purified

for drinking.

In addition, this water station will be targeting

personal contacts as prospective customers. We are in

business to engage in sales and supply of treated water to

the following group of people:

Households

Industrial Plants

Laundries

Restaurants & Canteens

Event, Parties, and Corporate functions

Government Officials

Business People

Everybody in our target market location

V. MARKET DEMAND

Past Demand

Year No. of Gallons (Annually)

2014 6000
2015 6600
2016 7260
2017 7896
2018 8785

Projected Demand

Year No. of Gallons (Annually)

2019 9663

2020 10629

2021 11692

2022 12862

2023 14148

From 2014-2018, the quantity demand for water increased

at the rate of 10% per gallons annually. From these data, we can

conclude or it is expected that the quantity demand in the future

(2019-2023) will also increase in the same rate.

 MARKET OPPORTUNITIES AND THREATS

There will be factors that will probably affect the online

shoe selling business. These are through politics, economics,

socially, technologically and environmentally.

POLITICAL

One factor that can help the growth of this business is

through politics. Some funding and incentives might be awarded to

this business that will certainly help this business to grow. The

proponent’s relationship to any politicians can be an opportunity

or even threat to the business. If the proponent is closely related

to a politician, it may bring a lot of customers through the

politician’s advertisement about the proponent’s business. On the

other hand, it may also be a threat because these politicians can

also ruin names through their voice.

ECONOMICAL

Economic demand is also a factor that would help this

business. Rapid economy growth will be an opportunity to this

business because of the increase of possible customers. It may

also be a threat because of the rise of labor expenses and energy

cost that may also lead to a business’s bankruptcy.

SOCIAL

Social media is already widespread which makes communication

and advertisement much easier. Just some several click, the news

will scatter all over the world which makes this factor an

opportunity and threat to this business. This business will be

advertise through social media, which is the number one source of

news in the world today. But social media can be a threat too.

Crab mentality is one of the ugliest attitude that people possess.

A small fake news can be easily distributed to all the people in

social media which may lead to the break down to this business’s

public image.

TECHNOLOGICAL

Technology is the best opportunity to any kind of business.

Technology reduces any kind of human effort which can help this

business produce lot of products in much easy and faster way.

ENVIRONMENTAL

Environment can be a threat to any business because of the

unpredictable climate change. Climate change is a threat

especially to this business because this business focuses on

delivering the product free so if the climate is not good, it

may delay some deliveries that could give a bad feedback to the

business.
 MARKET SHARE

GOLDEN SPRING

PROPOSED
BUSINESS
20%
25%

5%

OTHERS

50%

Ultra Pure
Golden Spring
ULTRA PURE Proposed Business
Others

The pie chart above shows that once this water refilling

station operates, its earnings will represent 20% of the total

sales of water business in the town of Catubig because it has only

operated and started in the field of water refilling station,

compare to the other water refilling station that operates year/s

ago. Ultra-Pure shares 50%, Golden Spring with 25% and others

shares 5% to the whole water refilling business in the town.

VI. MARKETING STRATEGIES

PRICE

The price of the product of the business should be competitive

but not necessarily cheap. It is one of the place to position your

product in the market. To create prices, the business owner will

consider the pricing objectives at the product, be it market

penetration, company grower, survival of the profit maximization.

PLACE

The product must be available to the costumer at the right

place, at the right time, and with the right quality keep cost

within acceptable level. The means of product or services

distribution should be appropriate and convenience to the

customer.

PRODUCT

The product should provide desired value to the customer. To

maintain a good product, the business owner will develop a

mechanism to regularly check what customer think of the product,

their usage pattern, and their needs and wants.

PROMOTION

Promotion should communicate on the benefits that a customer

obtains by use of the products and not just the feature of the

products. The promotional material that the business will use is

a leaflet because it can easily attract local people.

 PRESENTATION

The presentation should be impressive and customers comic.

The way products are presented to the customers will be made

extremely pleasing.

POSITIONING

A positioning strategy is when a company chooses one or two

key areas to focus or excel on. The business of the water station

chooses the quality positioning strategy as the main positioning

strategy.

PUBLIC IMAGE

A business image is defined as the perception people have of

a business. The business will maintain good public image by

creating good and innovative products, good customer service and

maintaining good relation to all members of the society.

 CASH FLOW

Year Year Year

1 2 3

-----------------------PESOS------------------

CASH INFLOW

Personal Capital Php. 2,040,000 Php. 2,150,000 Php. 2,700,000

Proceeds from Loan Php. 0 Php. 0 Php. 0

Sales Php. 1,800,000 Php. 1,920,000 Php. 2,520,000

Others: Php. 0 Php. 0 Php. 0

TOTAL CASH INFLOW Php. 3,840,000 Php. 4,070,000 Php. 5,220,000

CASH OUTFLOW

Loan Amortization Php. 0 Php. 0 Php. 0

Php. 273,500 Php.337,000 Php. 394,500

Operating Expenses

Income Tax Php. 120,000 Php. 130,000 Php. 140,000

Others: Php. 0 Php. 0 Php. 0

TOTAL CASH OUTFLOW Php. 333,100 Php. 380,00 Php. 405,00

CASH BALANCE Php. 3,506,900 Php. 3,690,000 Php. 4,815,000

 Profit and Loss Statement

Year Year Year

1 2 3

-----------------------PESOS------------------

INCOME

SALES Php. 1,800,000 Php. 1,920,000 Php. 2,520,000

Less: Cost of Sales Php. 840,000 Php. 910,000 Php. 980,000

Gross Profit Php. 960,000 Php. 1,010,000 Php. 1,540,000

Less: Operating Expenses

Salaries and Wages Php. 240,000 Php. 288,000 Php. 336,000

Advertising Php. 5,000 Php. 6,000 Php. 7,500

Rentals Php. 0 Php. 0 Php. 0

Php. 20,000 Php. 25,000 Php. 30,000

Office Supplies

Php. 13,000 Php. 18,000 Php. 21,000

Depreciation

Internet on Loan Php. 0 Php. 0 Php. 0

Php. 0 Php. 0 Php. 0

Others (Specify)

Php. 273,500 Php. 337,000 Php. 394,500

Total Expenses

Php. 686,500 Php. 673,000 Php. 1,145,500

NET PROFIT BEFORE TAX

Php. 120,000 Php. 130,000 Php. 140,000

LESS: INCOME TAX

Php. 556,500 Php. 543,000 Php. 1,005,500

NET INCOME
 BALANCE SHEET

Current Assets:

Cash Php. 556,500 Php. 543,000 Php. 1,005,500

Accounts Receivable Php 50,000 Php 70,000 Php 70,000

Raw Material Inventory Php 10,000 Php 30,000 Php 50,000

Others (Office supplies, Php 100,000 Php 100,000 Php 100,000

Donations and sponsorships)

Total Current Assets Php. 716,500 Php. 743,000 Php. 1,225,500

Fixed Assets

Machinery and Equipment Php 180,000 Php 190,000 Php 200,000

Furniture and Fixtures Php 50,000 Php 60,000 Php 70,000

Others:

Land Php 110,000 Php 120,000 Php 130,000

Php 50,000 Php 75,000 Php 70,000

Land improvement

Php 150,000 Php 160,000 Php 181,000

Building

Total Fixed Assets Php 540,000 Php 605,000 Php 751,000

Php 727,800 Php 837,600 Php 966,600

Total Assets

Current Liabilities:

Accounts Payable Php 50,000 Php 60,000 Php 70,000

Income Tax Payable Php 96,000 Php 105,600 Php 116,160

Php 10,000 Php 15,000 Php 20,000

Notes Payable

Interest Payable Php 4,000 Php 5,000 Php 6,000

Php 160,000 Php 185,600 Php 212,160

Total Current Liabilities

Personal Capital

Capital Php 1,530,000 Php. 1,535,000 Php. 1,980,000

Retained Earnings Php. 500,000 Php. 600,000 Php. 700,000

Others: Php 10,000 Php 15,000 Php 20,000

Total Capital Php. 2,040,000 Php. 2,150,000 Php. 2,700,000

Php. 2,200,000 Php. 2,335,600 Php. 2,912,160

Total Liabilities and Capital
VII. FINANCIAL ISSUES

Return On Investment (ROI):

Year 1:

NPAT
ROI  × 100
TI
𝑃ℎ𝑝. 686,500
= 𝑥100
𝑃ℎ𝑝. 2,200,000

𝑅𝑂𝐼 = 31%

Year 2:

NPAT
ROI  × 100
TI

𝑃ℎ𝑝. 673,000
= 𝑥100
𝑃ℎ𝑝. 2,335,600

𝑅𝑂𝐼 = 29%

Year 3:

NPAT
ROI  × 100
TI

𝑃ℎ𝑝. 1,145,500
= 𝑥100
𝑃ℎ𝑝. 2,912,160

𝑅𝑂𝐼 = 39%

Where:

NPAT = Net Profit After Tax

TI = Total Investment
Cash Payback Period (CPP):

Year 1:

TI
CPP 
ANP

𝑃ℎ𝑝. 2,200,000
=
𝑃ℎ𝑝. 572,750

𝐶𝑃𝑃 = 3.84 𝑦𝑒𝑎𝑟𝑠

Year 2:

TI
CPP 
ANP

𝑃ℎ𝑝. 2,335,600
𝑃ℎ𝑝. 572,750

𝐶𝑃𝑃 = 4.07𝑦𝑒𝑎𝑟𝑠

Year 3:

TI
CPP 
ANP

𝑃ℎ𝑝. 2,912,600
𝑃ℎ𝑝. 572,750

𝐶𝑃𝑃 = 5.08𝑦𝑒𝑎𝑟𝑠

Where:

TI = Total Investment

ANP = Average Net Profit

VIII. ENVIRONMENTAL REGULATORY COMPLIANCE

Department of Environment and Natural Resources (DENR) has the

knowledge and expertise to ensure that the business meets all

environmental regulatory mandates. The business will comply with

all Environmental Practitioners Association (EPA) requirements as

well as state, tribal, and local regulations. The EPA’s standard

for Federal compliance holds that Federal facility environmental

compliance should equal or exceed the rest of the regulatory

community and that Federal facilities should lead the way in

minimizing environmental contamination and its impact on public

health.

As such, the business is expected to develop sound environmental

programs that will not only ensure long-term compliance, but will

also act proactively and set goals for pollution prevention and

waste minimization. DENR will help the business environmental

compliance personnel develop highly effective environmental

protection programs. DENR professionals can help clarify legal

requirements by providing comprehensive consultation designed to

ensure compliance.

The Following are the methods to be adopted in the business

Environmental Regulatory Compliance:

1. Water/Air quality testing, DENR can conduct analyses of

drinking water and ambient air using analytical methods approved

by the Environmental Practitioners Association (EPA), the

Philippine Public Health Association (PPHA), and the Food and

Department of Health (DOH).

2. Proper Segregation of Waste, it helps the cleaners for

properly disposing waste. Also they suffer from various health

issues while segregating waste. If segregation is done from home

than they get saved from various diseases. Also Waste Segregation

maximizes the livelihood of unused and reusable material being

reclaimed and put to good use.

Proper waste disposal should be done nicely, because it can

devastate our environment, Soil, water and air pollution can all

be a result of improper waste disposal and occurs when either of

them becomes contaminated with hazardous materials. Not only does

this contribute to the creation of a greenhouse gas effects but

also causes significant harm to marine and wildlife. Apart from

this improper waste disposal can also have adverse health effects

on humans as over the years it has been responsible for causing

several diseases and in some cases even death. With the help of

DENR and other Health Environmental Organizations, this methods

will be soon in reality.

A. The cost of these methods will range about Php 5,00 to 10, 000

because the business will invite the DENR to conduct and there

will be a need to spend money. Hence, this procedure will attract

more costumers because the level of security will go up.