CHAPTER 1

Statement of the Purpose

This Business aimed to assess the operational performance of Purified Water

Business in the Municipality of Polomolok. The respondents of this Business Plan

were the owners/managers of Purified Water Business in the Municipality of

Polomolok who invested, organized, put up and managed the business. The

results revealed that Purified Water Business in the Municipality of Polomolok

has a good operational performance in terms of marketing, management,

technical, and financial aspects. It was recommended that the management of

Purified Water Business may consider the business operation initiatives to

improve operational performance.

The water that is mechanically filtered or processed to be cleaned for

consumption is purified water. It minimizes the accidental exposure to toxins

because it undergoes several processes that would make the water safe to drink.

Purified water can also help eliminate mineral deposit and can build up cells and

joints and reduce the possibility of painful gallstones. It also decreases stress

load on kidneys and can greatly enhance nutrients efficiently. It also has a

cleaner taste that is good for every day intake (“The Health Benefits..”, 2013).

Purified Water Businesses dominate the percentage of all water consumers

proven by the growth of this kind of business in terms of population and its

continued existence around the Municipality and even in rural areas. Here in

Polomolok, the number of registered Purified Water Business is minimal.

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 CHAPTER 2

DISCRIPTION OF THE BUSINESS

The demand at the water refilling stations, water stores that sell purified water is

now increasing. The quality of purified water conforms with the national

standards for drinking water and is even better than the quality of water produced

by traditional water supply systems in terms of removed impurities that’s why this

CAPS water refilling station were establish.

Over the years, as the demand for cleaner water becomes higher, the price of

household water purifiers and bottled water has become prohibitive. Water

refilling stations managed by private entrepreneurs offer a cheaper and more

convenient solution to the public’s drinking water needs than bottled water or the

use of household filters especially here in Polomolok, South Cotabato that we

have ranked 8 out of 10 municipality and 1 city in the Province of South Cotabato

in the potable drinking water system survey as per Provincial health and sanitary

office.

At present, about 12 water refilling stations have proliferated in the locality of

Polomolok. They sell purified water of comparable quality with bottled water at a

lower price. For example, the current price per gallon of refilled purified water in

Polomolok, South Cotabato ranges from P 50 to P 120 per 5-gallon container or

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about P 2.50 to P 6.00 per liter while the bottled water is sold at P 12.00 to P

25.00 per liter. That is why it is economically safe and cheaper for the customers.

In Polomolok, most of the water refilling stations are connected to the pipes of

one concessionairy: Polomolok Water District for their source of raw water while

in other areas they opt to use private deep wells. The “potable water” supplied by

the providers is then further purified by utilizing a combination of water treatment

equipment, such as sediment filters, carbon filters, water softeners, reverse

osmosis membranes, ultra-violet lamps, and ozone generators. Typical water

refilling stations can produce 1,000 to 5,000 liters of purified water per day. In

previous years, most of the people were bringing a container to a water refilling

station to buy purified water.

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Nowadays, because of convenience on the part of the consumers, purified water

in 5-gallon (22.7 litres) containers are delivered by the station directly to the

people’s home. Life Formula synergy Water refilling station, a water refilling

station in Polomolok, South Cotabato, can deliver 5,500 gallons (25,000 litres) a

day to its 1,000 household clients in the locality of Polomolok, South Cotabato.

Floor Plan

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The Market

When it comes to selling treated water, there is indeed a wide range of available

customers. 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. In view of that,

we have conducted our market research and we have ideas of what our target

market would be expecting from us.

We are in business to engage in sale and supply of treated water to the following

groups of people just like Households, Industrial Plants, Hotels, Restaurants and

Canteens, Event Planners, Parties and Corporate Functions, Corporate

Executives, Government Officials, Business People, Everybody in our target

market location.

When it comes to selling treated water, there I indeed a wide range of available

customers. 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. In view of that,

we have conducted our market research and we have ideas of what our target

market would be expecting from us. We are in business to engage in sale and

supply of treated water to their establishments and even their businesses.

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Close study of the water refill station business reveals that the market has

become much more intensely competitive over the last decade. As a matter of

fact, you have to be highly creative, customer centric and proactive if you must

survive in this industry.

Competition

We are aware of the stiffer competition and we are well prepared to compete

favorably with other water refill stations in Polomolok, South Cotabato Barangay

Cannery Site and Barangay Poblacion were the center of trade and commerce

throughout the Municipality of Polomolok where business opportunities may rise.

Life Synergy Formula Water Refilling station a standard water refill station brand

that will indeed become the preferred choice of residence of Polomolok, South

Cotabato. Part of what is going to count as competitive advantage for CHOLO

Water refilling station is the vast experience of their management team, they

have people on board who are highly experienced and understands how to grow

business from the scratch to becoming a national phenomenon.

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However, the location of our water refill station (centrally located in major road

prone to both human and vehicular traffic, our large distribution network and of

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course our excellent customer service culture will definitely count as a strong

strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be

among the best within our category (startups water refill stations) in the industry,

meaning that they will be more than willing to build the business with us and help

deliver our set goals and achieve all our aims and objectives. We will also give

good working conditions and commissions to freelance sales agents that we will

recruit from time to time.

Location of Business

CAPS water refilling station will be situated at stall number 27, Municipal

Gymnasium, French street, Barangay Poblacion, Polomolok, South Cotabato.

This location were projected to locate target market within the reach of business

scope considering the center of trade and commerce in the area. It is located

besides the DTI Negosyo center.

It is important to check the location for a water refilling business that’s not only

prominent to your target audience, but also suitable to the type of business

(clean, unadulterated environment) which means away from locations unpleasant

for such business garbage dump and etc.

Ideally it is close to apartment buildings, subdivisions, schools and business

districts as your target customers are likely going to come from these places.

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Management

CAPS Water Refilling Station is a business that is established with the aim of

competing favorably with other leading water refill station brands in the industry

and also to open our outlets all across key Municipalities in the Province of South

Cotabato. This is why we will ensure that we put the right structure in place that

will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, hardworking,

customer centric and are ready to work to help us build a prosperous business

that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our

senior management staff and it will be based on their performance for a period of

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five years or more depending how fast we meet our set target. In view of that, we

have decided to hire qualified and competent hands to occupy the following

positions.

Chief Executive Officer (Owner)

 Increases management’s effectiveness by recruiting, selecting, orienting,

training, coaching, counseling, and disciplining managers; communicating

values, strategies, and objectives; assigning accountabilities; planning,

monitoring, and appraising job results; developing incentives; developing a

climate for offering information and opinions; providing educational

opportunities.

 Responsible for fixing prices and signing business deals

 Responsible for providing direction for the business

 Creating, communicating, and implementing the organization’s vision,

mission, and overall direction – i.e. leading the development and

implementation of the overall organization’s strategy.

 Responsible for signing checks and documents on behalf of the company

 Evaluates the success of the organization

Water Refill Station Manager

 Responsible for overseeing the smooth running of the water refill station

 Map out strategy that will lead to efficiency amongst workers

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  Responsible for training, evaluation and assessment of workers

 Ensures that the steady flow of both raw materials to the plant and easy

flow of finished products through wholesale distributors to the market

 Ensures operation of equipment by completing preventive maintenance

requirements; calling for repairs.

 Ensures that the water refill station meets the expected safety, hygiene

and health standard at all times.

 Responsible for overseeing the smooth running of HR and administrative

tasks for the organization

 Updates job knowledge by participating in educational opportunities;

reading professional publications; maintaining personal networks;

participating in professional organizations.

 Enhances department and organization reputation by accepting ownership

for accomplishing new and different requests; exploring opportunities to

add value to job accomplishments.

 Defining job positions for recruitment and managing interviewing process

 Carrying out staff induction for new team members

 Responsible for training, evaluation and assessment of employees.

Sales and Marketing Officers

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  Manage external research and coordinate all the internal sources of

information to retain the organizations’ best customers and attract new

ones

 Model demographic information and analyze the volumes of transactional

data generated by customer purchases

 Identify, prioritize, and reach out to new partners, and business

opportunities et al

 Responsible for supervising implementation, advocate for the customer’s

needs, and communicate with clients

Operations Manager

 Develop, execute and evaluate new plans for expanding increase sales

 Document all customer contact and information

 Represent the company in strategic meetings

 Help increase sales and growth for the company

Accountants / Cashiers

 Responsible for preparing financial reports, budgets, and financial

statements for the organization

 Provides managements with financial analyses, development budgets,

and accounting reports; analyzes financial feasibility for the most complex

proposed projects; conducts market research to forecast trends and

business conditions.

 Responsible for financial forecasting and risks analysis.

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  Performs cash management, general ledger accounting, and financial

reporting

 Responsible for developing and managing financial systems and policies

 Responsible for administering payrolls

 Ensuring compliance with taxation legislation

 Handles all financial transactions for the organization

 Serves as internal auditor for the organization

Personnel

Business need employees that are able to get the job done, because employee

performance is critical to the overall success of the company. Business leaders

need to understand the key benefits of employee performance so that they can

develop consistent and objective methods for valuing employees. Doing so helps

determine strengths, weaknesses and potential managerial gaps in the business

organization. Although performance evaluations are never fun, they help

business leaders determine performance levels for each employee.

Pump Operators

 Responsible for selling and refilling water for customers as requested

 Ensures that the pumps are performing and dispensing treated water as

required

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  Assist in filling water tankers with water as requested

 Handles any other duty as assigned by the water refill station manager

Water Tanker Drivers

 Assist in loading and unloading treated water.

 Maintain a logbook of their driving activities to ensure compliance with

federal regulations governing the rest and work periods for operators.

 Keep a record of vehicle inspections and make sure the water tanker /

truck is equipped with safety equipment

 Assist the water refill station manager in planning their route according to

a delivery schedule.

 Local-delivery drivers may be required to sell products to households and

businesses on their route, obtain signatures from recipients and collect

cash.

 Inspect vehicles for mechanical items and safety issues and perform

preventative maintenance

 Comply with water tanker / truck driving rules and regulations (size,

weight, route designations, parking, break periods etc.) as well as with

company policies and procedures

 Collect and verify delivery instructions

 Report defects, accidents or violations

Utility

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 Responsible for handling core services that revolve around tanks, water

containers and reservoirs cleaning, parking lot sweeping, snowplowing,

drain, duct and gutter cleaning, parking lot and driveway washing,

equipment cleaning and maintenance, chemical adjustments and other

related cleaning services

 Maintain a clean working area by sweeping, vacuuming, dusting, cleaning

of glass doors and windows, etc. if required.

 Ensure that toiletries and supplies don’t run out of stock

 Handle any other duty as assigned by the water refill station manager.

ORGANIZATIONAL STRUCTURE

Chief Executive Officer

Marielle Jean Ambasan

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Source of Funding

Startup capital is what entrepreneurs use to pay for any or all of the required

expenses involved in creating a new business. This includes paying for the initial

hires, obtaining office space, permits, licenses, inventory, research and market

testing, product manufacturing, marketing, or any other operational expense. In

many cases, more than one round of startup capital investment is needed in

order to get a new business off the ground. As per corporation the board of

directors decided to start up with 50% owned capital and 50% from loaned start-

up capital.

Finding good sources of funding is a critical step in starting a business. A small

business loan from the government, a bank, or a private lender is one financing

option for budding business owners.

A business loan in the Philippines comes in a variety of types that suit different

business requirements. Before you start searching for the right startup business

loan, it helps to have an idea of the types of business loans for starters. Doing so

helps you understand your options better and easily find the loan that matches

your needs

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 Start-up Capital for CAPS Water refi lling station
Owned Capital Loaned Capital

50; 50% 50; 50%

Capital Investment

 Water Refilling Machine – P 250,000.00

 Renovation or new store at least 20sqm size – 100,000.00

 Delivery vehicle (motorcycle with carrier or multi-cab) – 100,000.00

 Business permit & other legal docs (DTI, Mayor’s permit, Water testing, etc.) –

10,000.00

 Initial Supplies /miscellaneous – 31,750.00

150 Bottles slim – 18,750.00

50 Bottles round – 7,500.00

Heat gun- 2,500.00

Stickers – 3,000.00

Others – 8,250.00

Total = P 500,000.00

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Sales Income

Monthly Sales – 391,050.00

Monthly Expenses – 89,820.00

 Management/salaries – P 336/ day x 4 management or 40,320.00

 1 driver – P200 /day x 30 days P6,000.00

 1 re-filler – P150 /day x 30 days P4,500.00

 Electric bill – P3,500.00

 Phone bill – 500.00

 Rent Expenses – 5,000.00

 Consumables and others (Containers and Bottles) – 30,000.00

Net Profit- P301,230.00 (Gross Sales – Gross expenses = Net Profit)

Expected Daily Income

CAPS Water refilling station is an essential product that will surely suits the
needs of the Constituents in the Locality of Polomolok in terms of safe drinking
water.
Computation of Expected Income:

CAPS water refilling station:

1 liter : 15.00 x 150 liters per day (2,250.00)
1 galloon : 25.00 x 300 galloons per days (7,500.00)
Walk in refill: 10.00/ refill x 50 customers/ day (500.00)
Delivery Charge: 50.00/ delivery x 100 deliveries (5,000.00)

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TOTAL DAILY INCOME: (15,250.00)

DAILY EXPENSES
Utility Expense (Petty Cash) (500.00)
Travelling expense (Gasoline and etc.) (1,000.00)
Maintenance Expense (700.00)

TOTAL DAILY EXPENSES (2,200.00)

Daily Income : 15,250.00

Daily Expense : 2,200

Total Daily Net Income : 13,050.00 x 30 days

Total Monthly Income: : 391,500.00
Total Monthly Expenses : 89,820.00

Total Net Profit/ month : 301,230.00

*Source: Survey from Aqua Hera Refilling Station

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SUMMARY

Starting a business is the dream of millions of Filipinos. Being the boss, getting

rich and doing what one likes are among the promised benefits of being an

entrepreneur that are hard to resist. This may all come true, but succeeding in a

venture is not that easy especially for those with no business background or

experience. For most people who are not business majors, taking a few years off

to study business is not feasible. Nevertheless, if one wishes to improve chances

for success, it is critical that he supplements his knowledge by studying the

necessary skills needed to operate a small or medium-sized business.

According to Manuel (2013), as compared to a sole proprietorship, a greater

amount of capital can be accumulated in a partnership because of the number of

persons involved. With more resources, there will also be a greater opportunity to

expand services. Likewise, better management will result because of the shared

managerial skills, efforts and experiences of the partners. A corporation is an

artificial being created by operation of law, having the right of succession and the

powers, attributes and properties expressly authorized by law or incident to its

existence (The Corporation Code of the Philippines, Sec.2).

As mentioned De Leon (2010), the corporation has a legal capacity to act as a

legal unit, the business has continuity of existence because of its non-

dependence on the lives of those who compose it. The management is

centralized in the board of directors and the shareholders have limited liability.

The shares of stocks can be transferred without the consent of the other

stockholders. The corporation also has disadvantages. It is relatively complicated

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in formation and management and the credit is weakened by the limited liability

of the stockholders. There is ordinarily lack of personnel element in view of the

transferability of shares.

In terms of business plan, according to Asor (2009), a business plan is a well-

written, honest-to goodness document prepared by the entrepreneur that will

convince the investor to invest or it is a tool to sell the business story to financial

resources and should be recognized. It is the direction and guide of the

entrepreneur as to what is to be done and how to do it. It details out what should

be achieved over a certain period of time. Also, about entrepreneurship, Hisrich

(2008) defines it as the process of creating something new with value by

devoting the necessary time and effort, assuming the accompanying financial,

psychic, and social risks, and receiving the resulting awards of monetary and

personal satisfaction and independence. Business strategy is about creating

value. Value for the customers in the difference between what is received in

benefits from the performance of the product or service obtained from the

organization. Customers pay the cost of a product and receive a package of

benefits (Hubbard, 2011).

Competitiveness according to Stevenson (2009) is how effectively an

organization meets the wants and needs of customers relative to others that offer

similar goods or services. It is an important factor in determining whether a

company prospers, barely gets by, or fails.

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