Water is a living resource produced by nature in abundant supply. Man has polluted the water resource in the ground with waste and chemicals.
The problem of human overpopulation, dumping garbage into the surface water with clogged drainage that flows into the rivers. The water that comes from the faucets or water sources is compromised with the quality and safety of potable water.
Many studies on the safety and sustainability of drinking water are conducted because of the growing concern about drinking water. While there is a road map to universal water and sanitation in the future, we face the dangers of disease and infection today.
This is why the water service of filtered and treated water became popular as a business.
A business engaged in water service undergoes conventional methods of water purification. They pass through quality standards and follow the microbiological and physicochemical parameters.
The water refilling stations must maintain good-quality drinking water under PD 198 of 1973. Consumers trust their water supply from water refilling stations and will continue to buy their water source from them.
01 of 07What is A Water Refilling Station?
A Water refilling station is a facility that sells mineral, purified, and alkaline water in a 5-gallon water container. It sells retail bottled water to customers or a refilling station for those who have their containers.
It is owned by a private entity or company that offers a cheap and convenient way to sell drinking water. The facility has extensive water treatment and bottle cleaning services that conform to the national health standards of the Dept. of Health.
Customers can either bring their containers for a refill, buy bottled water at the store counter, or opt to have a 5-gallon container delivered to their homes.
It has become a standard practice to buy purified water for the home since water from the faucet or tap is no longer safe for drinking. This is cheaper than buying water bottle brands in the grocery or convenience store.
02 of 07How Much Capital to Set Up a Water Refilling Station?
Starting a water refilling station is neither easy nor cheap since you need an initial capital of PHP 600,000- PHP 700,000. The start-up amount indicates that this business is suited for multitasking entrepreneurs.
They have the skill to drive up sales orders within the area, train staff to handle the machines and keep a close eye on quality control management.
Other costs added to your initial investment are the rental of the place for the water station, overhead costs that include electricity, cell phone services, gasoline for delivery, salaries of staff, cleaning and sanitation chemicals, and other miscellaneous expenses.
A chunk of the PHP 700,000 investment is the water refilling machine, which costs PHP 150,000. But you can pay a PHP 40,000 down payment, then arrange a 36-month installment of PHP 3,000 a month.
Read More: Online Cash Loan & Payments In The Philippines 2022
The other significant amount is the franchise fee which ranges from PHP 80,000- PHP 350,000 depending on the size of the equipment you will use.
- Building construction of the water facility
- Cost of Drilling the Deep Well as your water source
- Business Permits
- Inventory of 5-gallon plastic containers
- Motorcycle with a sidecar for delivery
- Seminars and Training
03 of 07How To Set Up a Water Refilling Station?
At this juncture, where do you start, and what do you need to think of? Here are some helpful tips on what to consider as you begin setting up your water refilling station.
1. Decide What Kind of Water to Sell
There are three kinds of water that you can sell. You can choose one, or sell a combination of what suits your market. Here’s a quick guide on the kinds of water to be sold:
- Mineral Water-undergoes a filtration system to eliminate impurities but keeps all other minerals such as calcium, magnesium, sulfur, etc.
- Purified Water-undergoes purification treatment to eliminate parasites, fungi, bacteria, contaminants, and solids.
- Alkaline Water-undergoes a process of removing acid content by negative oxidation-reduction potential and increasing pH level by maintaining the alkaline minerals.
2. Find a Supplier for the Water Refilling Machine
There are different machines used for the product you want to sell. Do some research on suppliers who can deliver and install your water machine. They can help you design the layout for efficient workflow within the limited space.
- Multimedia Sediment Filter- This is a fiber-reinforced plastic tank for depth filtration and backwash. It removes sand, sediments, and other particles from water.
- Active Carbon Filter – It treats the backwash and eliminates the odor, taste, or foul smell from organic chemicals or sediments.
- Water Softener Tank – Separates hard minerals through ion exchange and replaces them with soft minerals.
- Reverse Osmosis Membrane – Most expensive part because it removes the inorganic bacteria, viruses, and minerals through reverse osmosis or hyper-filtration to retain the oxygen in the water.
- Polish Carbon – Improves the taste of water.
- Ultraviolet Sterilizer Lamp- Ultraviolet rays emit the water that passes through a reaction chamber to kill any disease, microorganisms, or germs.
- Ozone Generator – This prolongs the shelf life of water by preventing bacteria or fungi from growing inside the product tank.
3. Decide How to Fund Your Water Refilling Station
You need to sit down and do some pencil pushing if the initial capital of PHP 700,000 plus another PHP 200,000 for overhead costs is available. You can decide how much of your savings will be used for the business and the loan amount to tide you over a few months.
Create a working budget with the expenses from the forecasted sales. Then decide on your selling quota to make a profit.
4. Conduct Your Feasibility Study
Do your research and set up your sales quota based on realistic figures. Your business plan is just a forecasting plan. But like other businesses, you consider the following:
- The number of competitors in the same area and their price points.
- Market demand on the residential and commercial condominiums and the density of houses nearby.
- Marketing and promo offerings to get new customers and continue to service the old ones.
5. Learn the Ropes of the Business
Be ready to learn every aspect of the water refilling business before you dive in. That means at the start, you do things yourself and eventually train people to start helping you. By multitasking and studying the business, you save money and know how to run the business. The staff you train will be careful of slip-ups or negligence in quality control.
6. Complete Your Documentation
The most time-consuming step of starting a business is completing your documentation. This is part of the legal requirement to fulfill your business registration and permits. You must ensure you have all the documents in place to avoid shut-down, halting the operations, or paying penalties because of non-compliance to government requirements.
7. Installation of Machine Equipment
After you build the physical space of your water refilling station, you are ready to install the machine equipment. It takes three days to complete this and another three days to do a dry run. This allows you to test the quality of the machine since it has to be free of microorganisms and chlorine.
You can check the water output by submitting water samples to the Department of Health (DOH) accredited laboratories for analysis.
Establish a good relationship with the testing laboratory in your area because you will need to keep testing the quality of water that you sell.
8. Hire Employees for Operational Training and Manning of the Station
At the start, it is cheaper to do the work of the water refilling station, but later you will need a few people to help you with operations.
Depending on the demand of your customers, you decide if you want to do a two-shift operation or stick to one-shift, 12-hour retail selling.
04 of 07Water Refilling Station Employee Assignments
Learning the ropes behind the water refilling station is one thing, but eventually, you will need six people to run the commercial side of the business. Different tasks have their assignments, and each must know what to do to have a smooth operation flow.
|Manager||1||Oversees the business and responds to customer feedback.|
|Front Liner||1||Faces the customer to receive the water container for refilling. Handles water refilling of 5-gallon containers for deliveries.|
|Administrative Assistant||1||Handles the record of sales and purchases and submits the report to the Bookkeeper. Acts as a front liner during peak-hour operations.|
|Technical Assistant||1||Cleans and sanitizes the water equipment and surroundings. Solves any technical problems and maintains the condition of the machines.|
|Accountant/Bookkeeper||1||Controls the cash flow and reconciles the daily sales of the store. Updates the financial reports and government requirements of the business.|
|Delivery Man||1||Transports the 5-gallon water containers to the customers for delivery and pick-up of empty containers|
05 of 07Registration Requirements of a Water Refilling Station
Photo by Kindel Media: https://www.pexels.com/photo/colleagues-looking-at-documents-7651558/
Every business requires a legal identity that informs the government and all other subsidiaries that you will run a commercial business. To do this, complete the legal requirements for a water refilling station.
1. DTI Business Permit
You can register the business name of your water refilling station with the Department of Trade and Industry DTI if your business is a sole proprietorship, or with the Securities and Exchange Commission SEC if it’s a partnership or corporation.
2. Mayor’s Permit
You have to go to the municipality or the local government of the place where you want to set up your water refilling station to get your Mayor’s permit.
Get hold of the requirements because it varies from place to place. Prepare the following documents ready for submission.
- Barangay Clearance
- Resident Certificate/ Community Tax Certificate
- Contract of Lease or Land Title with tax declaration
- Sketch of location
- Location Clearance
- Occupancy Permit
- Public Liability Insurance
- Fire Permit
- Sanitary Permit
- Engineering Drawings signed by the Sanitary Engineer
- Water Analysis of Potability from your water source
3. BIR Registration
You need to apply for a Taxpayer Identification Number (TIN) from the BIR- Revenue District Office where your water refilling station is located.
Fill in BIR Form 1901 for a sole proprietorship or BIR Form 1903. Then submit the forms and registration fee to the BIR- RDO to get your Certificate of Registration.
Likewise, you can then pay your taxes directly by filling out BIR Form 0605 to avoid delays or penalties. This is an easy and convenient way to settle your taxes without pulling out your staff from operations to line up and pay.
4. Employer’s Requirements
As a new business, you have to register your employees with the following agencies and ensure the proper contributions are paid to the different agencies:
06 of 07Philippine Sanitation Code for Water Refilling Stations
Your primary business is providing clean and safe drinking water, as your customers trust you with their health.
You are likewise responsible to the government agencies to comply with the minimal quality and safety standards as a business owner.
It is imperative that you religiously conduct your quality tests and have proper documentation of the results of the water analysis.
|QUALITY TESTS FOR WATER||SCHEDULE TESTS|
|Bacteriology Quality||Once a month|
|Physical Quality||Every six months|
|Chemical Quality||Every six months|
|Biological Quality||Once a year|
|Radioactive Contaminants||Depending on the surrounding environment, if there is radiation input|
07 of 07Final Notes
The choice to set up a water refilling station is a serious business that requires a long-term commitment. Not only will you invest a huge chunk of money into this business, but you will also undergo periodic quality testing of your product.
This is a responsibility you embrace as a business owner because of the trust given to you by the customer.
Knowing this, a water refilling station is a welcome help to the community. Providing safe drinking water to the residents prevents any disease or problems.
People need water to survive, and having a water refilling station that is sold cheap and located in a nearby, convenient location is reason enough to start your water refilling business.
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