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Water Refilling Station Business Plan

Published Jul.26, 2024

Updated Jul.26, 2024

By: Jakub Babkins

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Table of Content

Starting a water refilling station business can be a lucrative venture, given the increasing demand for clean drinking water. With urbanization and health awareness on the rise, people are seeking reliable sources of purified water. This article provides a detailed business plan for a water refilling station, including market evaluation, business description, requirements, and advantages.

Business Description

A water refilling station business involves the purification and sale of clean drinking water to consumers. The process typically includes filtering, purifying, and packaging water into refillable containers. These stations are popular in urban areas where tap water quality may be compromised or where consumers prefer the convenience of readily available purified water.

Market Evaluation

Understanding the market dynamics is crucial for any business. The water refilling station industry has seen substantial growth over the years due to increasing health consciousness among consumers and the scarcity of clean drinking water in many regions. According to recent statistics, the global bottled water market is expected to reach $215.12 billion by 2025, showcasing the vast potential for water refilling stations.

How to Start a Water Refilling Station Business

1. Conduct Market Research:

• Identify your target market and competitors.
• Understand local water quality issues and customer preferences.

2. Develop a Business Plan:

• Outline your business goals, strategies, and financial projections.
• Include detailed plans for marketing, operations, and management.

3. Secure Financing:

• Determine your startup costs, including equipment, rent, and initial inventory.
• Explore funding options such as loans, investors, or personal savings.

4. Find a Suitable Location:

• Choose a high-traffic area with easy access for customers.
• Ensure the location meets local zoning and health regulations.

5. Purchase Equipment:

• Invest in high-quality purification systems, storage tanks, and dispensing machines.
• Consider additional equipment like delivery vehicles if you plan to offer home delivery services.

6. Obtain Necessary Permits and Licenses:

• Comply with local health and safety regulations.
• Secure permits from relevant authorities to operate your business.

7. Hire and Train Staff:

• Recruit qualified staff for operations and customer service roles.
• Provide training on equipment usage, hygiene standards, and customer interaction.

8. Launch Marketing Campaigns:

• Utilize social media, local advertising, and word-of-mouth to attract customers.
• Offer promotions and loyalty programs to retain customers.

Requirements for Water Refilling Station Business

• Capital Investment: Initial capital to cover equipment, rental space, permits, and other startup costs.
• Equipment: Purification systems, storage tanks, water dispensers, and delivery vehicles.
• Permits and Licenses: Health permits, business licenses, and environmental compliance.
• Location: A strategic location that is easily accessible to your target market.
• Staff: Skilled personnel for operations, maintenance, and customer service.

Advantages of Water Refilling Station Business

• High Demand: The increasing need for clean drinking water ensures a steady customer base.
• Low Operating Costs: Once established, the operational costs are relatively low compared to other businesses.
• Scalability: Easy to expand by adding more stations or offering additional services like home delivery.
• Positive Impact: Contributes to public health by providing access to purified water.

Insights into the Excavation Industry

Understanding industry insights is crucial for positioning your water refilling station business. While the excavation industry may seem unrelated, both industries require careful planning, compliance with regulations, and strategic location choices. For instance, a good understanding of the local infrastructure can influence the setup and distribution logistics of your water refilling station.

Is Water Refilling Station a Good Business?

Yes, a water refilling station is a good business for several reasons:

• Growing Market: With increasing urbanization and health consciousness, the demand for purified water is rising.
• Sustainable Model: The business promotes environmental sustainability by encouraging the use of refillable containers.
• Profitability: With proper management and marketing, water refilling stations can yield significant profits.

Financial Projections and Analysis

Developing realistic financial projections is essential for securing funding and managing your business effectively. According to OGS Capital, a well-crafted business plan should include detailed financial statements, cash flow analysis, and break-even calculations. External analytics sources like Statista and Market Research can provide valuable data for your financial projections.

Get Started with OGS Capital Today

Ready to start your water refilling station business? Partner with OGS Capital for expert guidance and comprehensive business planning services. Our team of professionals will help you create a tailored business plan, secure funding, and launch your venture successfully. Contact us today to get started on your path to success.

Starting a water refilling station business is a promising venture with significant growth potential. By following a structured business plan, securing the necessary resources, and leveraging expert advice from OGS Capital, you can build a successful and profitable business. Embrace the opportunity to contribute to public health while achieving your entrepreneurial goals.

Q. Is a water refilling station profitable?  

Yes, a water refilling station can be highly profitable due to the consistent demand for clean drinking water. With relatively low operating costs and high customer retention, especially in areas with poor water quality, this business model offers good margins. Effective marketing and quality service can further enhance profitability.

Q. What are the weaknesses of a water refilling station?  

The primary weaknesses include the initial capital investment required for equipment and setup, strict regulatory compliance, and competition from other stations or bottled water providers. Additionally, maintaining high hygiene and water quality standards is crucial, as any lapses can significantly impact business reputation and customer trust.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to Start a Water Refill Station Business

By: Author Tony Martins Ajaero

Home » Business ideas » Food Processing Industry » Water Refill Station

Do you want to start a water refill station? If YES, here is a complete guide to starting a water refill station business with NO money and no experience plus a sample water refill station business plan template. 

There will always be a huge demand for water even as there are several types of water in existence such as mineral water, purified water, flavored water and so on. However, since most Americans have come to distrust the water that flows from their tap, many have turned to taking bottled water.

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Changes in how people view the environment has made water refilling stations to receive a boost as one can bring their own containers to refill water without having to buy new bottles all the time as most of these bottles aren’t always recycled and they end up degrading the environment.

Refilling water is usually cheaper than having to buy retailed bottle water. A water refilling station makes use of a kiosk to distribute and provide water to its target customers. This is a very lucrative business especially if you are one that is environmentally conscious.

This business requires that you to know how to conduct an analysis of the water so that you will be able to determine how sanitary the water is. Most water refilling entrepreneurs are those that have worked in the waste water industry and so have an idea of how to source as well as handle water and make it drinkable.

Just like any other business that you might be looking to start up, it is important that you conduct a thorough research about the business so that you do not end up wasting money and time on a venture. If you have had no prior experience in this industry, then conducting a thorough research is very necessary especially if you are not going to be buying a franchise.

Get in touch with those that are running the business and ask vital questions, you might even need to work for someone running such a business for a period of time so that you have an idea about the business. It is important that you source for a reliable supplier to provide you with the water refilling and purification equipment as well as the jugs that you will use to deliver and store the water.

The reason why it is important to find a reliable supplier is so that you can get your equipment and supplies at a low cost that will help you start off and sustain your business. You might need to contact several suppliers in order to check out their rates and since most businesses are now online, it will be easy enough for you to check out reviews about their products and services.

writing a business plan for your business is very necessary as you will not only outline the vision behind your business in this document but you will also need the document to guide you throughout the course of running the business.

If you are looking to source for start-up capital from external sources, then it is vital that you have a business plan at hand as this is how you will be able to convince investors to invest in your business. Writing a business plan involves certain technicalities and if you aren’t proficient enough, you can engage a professional to help write one for you.

Steps to Starting a Water Refill Station Business

1. understand the industry.

According to statistics, in the united states, only 24 percent of disposable plastic bottles are recycled as there are more than 600 tons of bottles sent to the landfill.

Water bottles that are disposable often consume important resources such as water and petroleum. In 2006, about 30 billion plastic water bottles were purchased by Americans, which means that about 17 million barrels of petroleum were used in the production of these bottles.

Also, three times the volume of water is needed to produce these bottles and this is discounting the water that will be used in the bottle.

The growth in the number of water refilling stations all over the country has to do with the rise in demand for clean water as a number of people do not trust the water that comes from their taps and are becoming environmentally conscious about buying bottled water because of the environmental degradation caused by littering these bottled water all around.

The water refill stations have really come in handy especially in states that experience droughts. However, the growth of water refilling stations has led to price wars as the fight to get a fair share of the market continues. This hasn’t really allowed the industry to grow as expected as other policies and strategies are not able to be implemented.

2. Conduct Market Research and Feasibility Studies

• Demographics and Psychographics

The demographic and psychographic composition of those that require water refills are commercial entities, distribution companies, environmental conscious individuals and residential homes. Therefore, one can say that the demography for the water refill business is encompassing depending on the promotional activities of the entrepreneur.

3. Decide Which Niche to Concentrate On

A water refilling station often collect, test and redistribute quality water to those that are not looking to buy bottled water. There are not so many niche ideas available for this kind of business; however the few niches that exist will depend on what scale of business you are running.

Large scale water refill stations will be able to offer more niche ideas as opposed to small scale water refill stations. Below are some of the niche ideas within this particular business that you can specialize in;

• Water Refilling Services
• Sale of Water Refilling Equipment
• Sale of Bottled Water
• Consultancy Services

The Level of Competition in the Industry

The level of competition that exists for the water refill station business has a lot to do with the scale of business the entrepreneur is running and the niche as well. If you are only refilling water for those in the residential segment, then you will not need to bother about competing with those that supply the commercial segment.

Even though there are alternatives for customers such as bottled water and tap water, customers who are environmentally conscious and those who do not want to have to keep buying bottled water are those that patronize water refilling stations and as long as what you offer is of high quality, you will continue to have people patronize you from far and wide.

Therefore, if you are looking to start your water refill business in the united states, you should be aware that not only will you be competing against other small and large scale water refill stations but also against other alternative suppliers of water and you should therefore be adequately prepared.

4. Know Your Major Competitors in the Industry

In every industry, there are always brands that are well known and the water refill station is no different. Some of the well-known brands have either been in business for a long period of time, some are popular due to how they conduct their business; while some adopted the right promotional strategies to create awareness for their business.

Some of the well-known water refill stations in the United States are;

• Aqua Primera Corp.
• Smart Water Stations (USA)
• H2O Life Source

Economic Analysis

Refill stations are doing a great job of ensuring that the re-use culture is coming back as re-using a water bottle helps to cut down on the resources and energy that go into making a single bottled water. Also, water refilling stations help save up on water as water is being taken from different sources and treated before being sold to consumers.

Bottled water requires energy throughout its lifecycle from sourcing for the water, treating it and then sending it to the bottling plant in order that it might be filled into bottles, packaged and transported to its destination and then the recycling and disposing of the empty containers afterward.

Several public parks are cutting back on the sale of bottled water to visitors in order to reduce the litter that is always left behind after the visitors have left. However, this has brought a rift between the bottled water association and that of the water refillers.

5. Decide Whether to Buy a Franchise or Start from Scratch

When starting certain businesses, you are faced with the option of either starting the business from scratch or having to buy a franchise. While either option has its pros and cons, your decision should be to choose the one that will best allow you to achieve your intended goals and objectives.

If you are looking to start your business on a small scale, then starting from the scratch isn’t a bad idea as it will allow you gather experience about the business and grow the business at your pace.

However, starting from the scratch can be a bit overwhelming because you will be in control of all the vital aspects of your business; which is why it is often advised that entrepreneurs have a business plan in place as this will act as a guide for them especially in the early parts of running the business.

If you however intend to buy a franchise, some of the benefits of that include; having some sort of guidance in running your business, getting training for your staff and not having to worry about certain vital aspects of running the business.

The disadvantages with a buying a franchise is that you will not be in total control of your business and should you buy the wrong franchise, you will not be able to achieve your goals and objectives. It is therefore advised that you conduct a thorough research on the varying franchise opportunities available in order to choose the one that best aligns with your budget as well as your goals and objectives.

6. Know the Possible Threats and Challenges You Will Face

There is no business no matter how duly prepared the entrepreneur was that will not encounter challenges and threats. While some of these threats and challenges can usually be anticipated and prepared for; some cannot be prepared for. Once these kinds of threats and challenges occur, the best that the entrepreneur can do is to remain focused and optimistic that the threats and challenges are well contained.

Some of the possible threats and challenges that you will likely face when starting your water refill station include; strict regulations from the government or industry, alternative substitutes due to changes in customer tastes and preferences and competition from already existing competitors.

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

One important decision that could have a huge impact on your business and how you can attain your set goals and objectives is the best legal entity to use.

Even though there are various legal entities that exist for entrepreneurs looking to start their business in the United States, not all are appropriate for a water refill station, which is why it is best to make your findings about the business you are looking to start especially as regarding the legal entity or you engage the services of an attorney to help you out.

All the legal entities that are in existence in the United States have their pros and cons and this is what you should take into consideration when looking to make your decision about what legal entity will be best for you. The attributes include; ease of ownership, setup and control; flexibility of the legal entity; extent of liability, investors’ expectations as well as taxation issues.

Anything ingested is highly regulated in the United States and the water refill business is no different. The government sets standards in such a way that there are almost no contaminants from water refill stations.

Stations that cannot adhere to standards often fall into trouble and due to how unpredictable the nature of the business can be; there are certain legal entities that should not be taken into consideration at all by the entrepreneur. There are five legal entities that exist for an entrepreneur and they are; sole proprietorship, partnership, Limited Liability Company (LLC), S Corporation and C Corporation.

The sole proprietorship and partnership legal entities though simple will not be sufficient for this kind of business. Most entrepreneurs starting this business often choose to incorporate by either choosing an LLC or a corporation.

These legal entities are sort of similar in nature because the businesses operating under these entities are regarded as a distinct personality from the owners, thereby offering the owners limited liability cover on their personal properties. However, while the LLC is simpler in nature, the corporation is more rigid and involves a lot of procedures before it can be set up.

8. Choose a Catchy Business Name

While you might still have the idea of starting a water refill station, one important thing that you need to start considering early on is what name you intend to call your business. The name of a business is important because this is what you will be identified by and if the name is memorable or unique, then it will be easy enough for your target customers to remember your business and to even refer you to others.

Ensure that the name isn’t in use by any other business especially those in your industry. Below are some of the catchy business name ideas that will be suitable for your water refill station;

• Aqua Fresh Corp.
• Evis Water Refill Inc
• Messers Fresh Water Inc
• John Paul Aqua Group
• Clear Rush Inc.

9. Discuss with an Agent to Know the Best Insurance Policies for You

No matter how much you might have prepared for your new business, you cannot stop certain calamities – either manmade or natural – from occurring and affecting your business. However, while you might not be able to stop the impact of disasters on your business, you can however be fully prepared for it by ensuring that you have coverage in place that will protect yourself, business, employees and bottom line.

Choosing the best insurance policies might be a bit confusing and in order not to end up buying irrelevant policies, you can engage the services of an insurance agent or broker who is knowledgeable about your industry to advice you on the best policies to buy.

Below are some of the insurance policies that you should consider purchasing when looking to start your water refill station in the United States of America;

• General Liability Insurance
• Workers’ Compensation Insurance
• Commercial Property Insurance
• Health Insurance
• Overhead Expense Disability Insurance
• Motor Vehicle Insurance
• Business Owner’s Policy Group Insurance
• Mechanical Breakdown
• Casualty Insurance
• Professional Liability Insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

The water refill station is not where you will need to acquire an intellectual property protection before starting because you are basically refilling water either in your own provided bottles or that of your customers.

If you however feel the need to acquire intellectual property for your company name, logo or any other concept you feel is worth protecting, you can go ahead to do so; only know that acquiring an IPP in this sort of business is not considered a priority by most of the entrepreneurs in the industry.

11. Get the Necessary Professional Certification

If you are looking to start a water refill station and are wondering if you will need a professional certification of sorts before you can start the business, the answer is no. As long as you have the capital required in starting the business and have met all the requirements of the federal, state and/or local government; then you are good enough to start the business,

However, there are many entrepreneurs who along the way have felt the need to get professional certifications relating to the industry they are, but while this might give you a boost within the industry, the final consumer is not so concerned about this.

12. Get the Necessary Legal Documents You Need to Operate

Regardless of whatever business you might be looking to start out in the United States, you will require certain documents if you do not want to run into trouble of any sorts with the authorities. Legal documents differ depending on the kind of business and so it is necessary that you make findings from those running a similar business so that you have an idea of what documents you will need in order to run your business.

Alternatively, you can engage the services of an attorney to help you with the necessary documents you will need to run your water refill station business. Below are some of the documents that you will require in order to run your water refill station;

• Certificate of Incorporation
• Operating Agreement for LLCs
• Business Plan
• Insurance Policy
• Food Permit handler certificate
• Business License and Permit
• Employment Agreement
• Employer Identification Number (EIN)
• Federal Tax Identification Number (TIN)

13. Raise the Needed Startup Capital

When looking to start your water refill station business, your thorough research will reveal how much you would need to start the business and while the start-up capital might vary due to the area where you intend to run your own business, it will give you an idea of how much you will need.

If the capital is above what you have at hand, you have the choice of either waiting till your funds are complete or sourcing for capital from other sources and if you are going to be sourcing from people you do not know; then it is necessary to have a business plan in place in order that you might be able to convince them of the need to invest in your water refill station.

Some of the financing options that you can therefore explore when looking to start your water refill station are;

• Generating your start-up capital from personal savings and sale of property or stock
• Sourcing for soft loans from wealthy family members and friends
• Applying to your local community or commercial bank for a loan
• Sourcing for loan from an angel investor
• Getting yourself a business partner to come up with part of the start-up capital

14. Choose a Suitable Location for your Business

One of the most important decisions that you will make which will have a huge impact on your business is the appropriate location for your water refill station. The location for every business matters which is why entrepreneurs have to take their time in choosing a location because the wrong location could stunt the growth of the business or cause it to fail.

The water refill station is a very important one and as such is highly regulated by the government because of how harmful contaminated water can become to consumers. Therefore, the area and location which you have chosen to run your business must be approved by the government.

The location you should choose for your business shouldn’t be one that cannot be easily accessible by your employees or customers that will want to visit your business. Also, ensure that the facility is conducive enough. You must decide whether you intend to lease or buy the facility depending on what your budget is.

If leasing, ensure that the necessary clauses guiding you are put in place especially should you intend to relocate to another location. Engage the services of a reputable real estate agent who has a thorough idea about your kind of business to help in securing the right location for your business.

15. Hire Employees for your Technical and Manpower Needs

As a water refill station, you make money by collecting, testing and then redistributing water. This water can be sold in bottles or sold to larger companies who then massively distribute it.

Most times, customers require that you deliver the refilled containers to their preferred destination and so getting a delivery vehicle is very vital as you will also need to distribute refilled containers to various outlets that will in turn sell to their own customers.

A delivery vehicle will add to your overall costs but it is very necessary that you purchase one if you intend to have a successful business.

There are various equipment that you would require in order to be able to set up your water refilling station; the costs for these equipment will vary depending on the area you are looking to run the business as well as the make of the equipment.

The equipment that you will need to start and run your water refill station successfully include; multimedia sediment filter, active carbon filter, water softener tank, reverse osmosis membrane, polishing carbon, ozone generator and an ultraviolet lamp. Administratively, you would require a computer, phone, filing cabinets, software and internet connection.

Building a solid business structure is very necessary if you want your business to become a success. Ensure that you not only hire professionals but also those that identify with your set corporate goals and objectives and will therefore be committed to ensuring that you achieve what you have set out to.

You will require those who will be in management, marketing as well as those who will operate and maintain the machines. If you are therefore looking to run an effective water refill station, you will need at least five people to work with you in achieving your set goals and objectives.

The Service Delivery Process of the Business

On a daily basis, a water refill station has to source water for cleaning and then process the water through machines for redistribution. Before the water is redistributed however, it has to be sampled in order to ensure that the treatment process went well.

Once the sampling results fail to meet with the standard, the station will need to check its machines. Various water refilling machines distribute the treated water to various containers and then these containers are either taken away by the customers themselves or delivered to different outlets or destination.

16. Write a Marketing Plan Packed with ideas & Strategies

Marketing is one of the most important aspects of a business and entrepreneurs just starting out a business or already running one cannot deny how vital marketing is. Marketing has to do with anticipating the needs of your intended target market and then striving to be able to fulfill such needs.

Marketing also puts a business in the notice of other similar businesses as well as the entire public and so you not only get to penetrate the market and get a fair share for yourself, you also get to compete fairly against your competitors and depending on your strategies have leverage over them.

Before your marketing strategies can become very effective, the area where your business is located plays a huge role. If you are located in an area that is not too conspicuous, you will have to budget more money in order to be able to achieve effectiveness.

However, if your business is an area where people notice it as they drive or walk by, then the very fact that your business is visible is enough marketing on its own.

Carrying out a thorough research before you draft your marketing strategies is very important as it allows you to know who your target market is, what it is they expect from you and what you should expect from them as well. Also, the research will enable you identify your competitors, what their strategies are and how you can take advantage of their weaknesses.

Before you can however develop marketing strategies, you would need to outline a marketing plan that clearly shows what goals and objectives you are looking to achieve and what milestones you intend setting.

A good marketing plan will act as a guide for whatever marketing strategies you are looking to create and will ensure that you are able to achieve all your intended goals and objectives. Below are some of the marketing ideas and strategies that you can use in promoting your water refill stations;

• Recruit a competent marketing team and empower them to physically meet with clients in order to promote your water refill business
• Ensure that your water refill business is listed in accredited yellow pages and online directory
• Make use of social media platforms such as a Facebook Page, Twitter account, and Instagram to promote your business
• Advertise your water refill business in local newspapers and magazines and also on radio and television stations
• Distribute handbills and fliers about your water refill business in various strategic locations
• Create a standard website and use this to promote your services to your target market

17. Develop Iron-clad Competitive Strategies to Help You Win

Any entrepreneur starting a profit-oriented business knows that sooner or later, he or she would have to contend with competitors either from the same kind of business or from an alternative kind of business for which the product or service can be substituted for and therefore should be prepared for all sorts of competition by coming up with effective competitive strategies that will enable the entrepreneur retain a fair share of the target market.

This is why it is important for entrepreneurs to have a passion for their business as this will allow them thrive when they have to face off their competitors.

Some of the possible competitive strategies that you can use in winning over your competitors in this particular industry is to ensure that you come up with the right promotional strategies that will increase awareness for your business; offer your customers incentives every now and then and have the best customer service relationship with your customers.

18. Brainstorm Possible Ways to Retain Clients & Customers

The water refilling business might be a lucrative one but one of the tasking activities it faces is how to attract customers to its business and there is no business that can remain in existence for long if there are no customers, as this is how businesses can generate the revenue it needs to grow its bottom line.

Entrepreneurs know how important customers are which is why several strategies are being crafted to ensure that customers are being attracted to the business.

However, while attracting customers is very important to the continued success of a business, ensuring that a high number of these customers are retained is also very critical as this means that the company spends less on promotional activities while continuing to enjoy a steady stream of revenue from its customers.

According to research, companies that retained a high number of their customers always had an advantage over those that didn’t.

There are several ways you can increase retention of customers for your business and one of them is ensuring that you provide them with quality products and services. Customers want to know that you consistently adhere to standards when sourcing and treating your water.

Once they can vouch for the quality of your water, they will continue to patronize your business. Another thing that customers value is the relationship you develop with them, which is why many companies invest highly in their customer service.

Ensure that complaints are quickly attended to and resolved. Also, ensure that you give out incentives such as discounts every now and then and as your customers come to expect this from you, they’d help spread word about your business while sticking to your brand.

19. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

When starting any business, one of the vital aspects that cannot be taken for granted is how you can promote your business in such a way as to get the attention of your intended target market.

The good thing about promoting your business is that not only do you get to boost awareness for your brand to your intended target market but a percentage of those whose awareness you have caught will be converted to revenue which is how businesses achieve their sustainability.

The huge benefits that come from boosting awareness for one’s brand is why many companies – especially the successful brands – set aside a particular sum of money every year to promote their brand to their target market. These companies know that regardless of how much they spend in promoting their brand, the many ways they benefit from the promotion far outweighs the money that they have put in.

However, like every important aspect of any business, it is vital that a thorough research be done before strategies are crafted as the wrong strategies would mean the company losing money.

One thing to note is that not all strategies will be effective and so if you intend to cash in on your target market, finding out which strategies will catch their attention and convince them to patronize your products and or services will be to your advantage.

The internet has made it very easy for entrepreneurs even those on a tight budget to effectively reach a wider audience. There are various platforms and algorithms that internet professionals make use of when helping businesses promote their brands and so you must ensure that you engage the services of those that have successfully helped other brands achieve their goals and objectives.

Some of the strategies that you can use in boosting awareness for your brand and creating a corporate identity for your water refill business;

• Coming up with incentives to ensure that awareness for the business increases
• Distributing handbills and fliers in various strategic locations around the area where your business is located
• Installing flexi banners at strategic locations around the area where your business is located
• Joining a local association in order to network and increase visibility for your business
• Using social media platforms such as Facebook and Twitter to increase awareness for your business
• Creating a website and ensuring that it is strategically optimized so that it could come out tops in different search engines.

Water Refilling Station Business 2023: How To Start, Capital, Profit (Plus, Tips To Succeed)

Struggling to come up with profitable ideas worthy of a spot in Shark Tank ? If your creative juices aren’t enough to create the next big invention, capitalize on what people already need and consider starting a water refilling station business .

We all need safe drinking water to quench our thirst and support our body’s vital functions.

The problem with tap water is it’s laden with chemicals or minerals, which you can only get rid of with expensive home filters. Bottled waters, however, are too expensive for daily consumption, not to mention the weird aftertaste they leave behind.

Enter the water refilling station business–a heaven-sent for those who need a cheaper and more convenient daily drinking water supply. There’s a demand almost everywhere, so you can spend less on marketing and advertising.

If you want to get a piece of the pie of this profitable idea, this definitive water refilling station business guide is for you.

Go back to the main article: Best Small Business Ideas in the Philippines with High Profit

Table of Contents

What is a water refilling station.

Most water refilling stations 2 in the Philippines have large water treatment machines that they use to fill large bottles with safe, clean drinking water (usually 5 gallons) that serve as their primary product. Their whole operation, from water treatment to bottle cleaning, must conform to national health standards as outlined by the Department of Health (DOH) 3 .

Customers can bring their water containers to be filled with drinking water for a smaller fee than bottled water brands. Due to high demand, it has become common practice for water refilling stations to deliver water straight to their customers.

Who Should Start a Water Refilling Station Business?

• People who live in or near an area with demand for safe drinking water.
• Entrepreneurs who want to open a business with lower risk and constant demand.
• Entrepreneurs with sales experience and the drive to push their water refilling service around their community.
• People who are healthy and fit due to the physically demanding nature of a water refilling station.
• Entrepreneurs with the time to handle the quality management of their water station, supervise and train their workers, and respond to emergency sales calls and deliveries.

How Much Does It Cost To Start a Water Refilling Station Business in the Philippines?

You need between Php 600,000 and Php 700,000 as an initial investment to start a water refilling station business in the Philippines.

Take note that this estimate already covers building construction (of course, the cost will be significantly lower if you own the property), the machine, permits, containers, motorcycle with a sidecar (which you will need for product deliveries), the cost of drilling the deep well (which will serve as your water source; more on this later), seminar, and other initial expenses.

The water refilling machine eats a considerable portion of the capital. Fortunately, you can own a water refilling station for as low as Php 150,000. The cost already includes all the equipment needed. Some companies even offer installments. After a downpayment of Php 40,000, you can pay the remaining balance within 36 months for only Php 2,000 to Php 3,000 per month.

Franchised water refilling station businesses, on the other hand, can range from Php 96,000 to Php 550,000 depending on the equipment’s type, number, and size. The cost of rental and overhead expenses are not included.

Have you only saved up the minimum amount of capital? We’ve interviewed and researched water refilling station owners who suggest not entering the battlefield too quickly. This is because you will need more money to pay for the operational expenses, which will most likely come from your pocket during the first few months of operations.

For this reason, it is also advisable not to resort to loans to fund the capital for your water refilling station. Businesses are unpredictable, more so if this is your first venture with absolutely no experience to rely on. So save up as much money as you can and study the ins and outs of the business carefully before making that leap of faith.

Is Water Refilling Bussines Profitable?

Yes, but it depends on a lot of factors. Just like any business, the success of a water refilling station largely depends on a combination of factors such as market demand, relationship with your customers, number of competitors, and how business-savvy the owner is.

It is recommended, especially during the first few months, to focus on the tasks that will grow your business – letting people know about your water service and getting potential customers to try it. You cannot leave this to your employees until they have received sufficient training.

Aside from that, be ready to do most of the administrative tasks yourself during the first few months, as you’re not profitable enough to hire additional employees yet. This is the ideal time to put your resourcefulness to good use.

For example, you can learn how to do simple accounting tasks instead of paying a bookkeeper to do it for you. You should also set up the business’s sales recording and customer tracking practices. This way, you can minimize expenses and learn more as a businessman.

Realistically, your first few months will not be profitable, but that is normal. Your goal would be to get long-term customers who call you whenever they run out of water. If you focus on this, you can watch your daily sales go from 0 jugs/bottles per day to 100 jugs/bottles per day.

Provided that you’ve done everything by the book and the market is large enough to sustain your business, you’ll be able to determine how long it will take to recoup your investment and whether or not the business is profitable. 

Suppose that after six months, your water refilling station sells 100 jugs daily, each costing Php 25. The monthly expenses, meanwhile, include your employees’ monthly salaries (Php 19,000, which is enough to pay a driver, a helper, and a manager), employee’s daily lunch meals (Php 2,700), the electric bill (Php 7,000), the cost of materials and gas (Php 7,000), maintenance fee to pay for unexpected things that can derail business operations if left unattended (Php 600 or more), and additional expenses like the cost of new filters that are ideally changed every month (roughly Php 2,500 or more).

Based on the figures above, your gross profit, if your water refilling station is open every day, will be Php 75,000. Subtract the monthly expenses, and you’ll be left with a net profit (before taxes) of more or less Php 36,000, which will give you an idea of how many months it will take to earn back the capital you initially invested.

What Are the Benefits and Drawbacks of a Water Refilling Station?

• Water is an essential commodity, so demand is not a problem . There is increased demand during the hot summer and a slowdown in the cooler rainy season. Still, overall a water refilling station can be profitable all year round. You will also serve your community with customers from high to low-income backgrounds.
• It’s simpler than other businesses since your primary product is water service. You only need to focus on maintaining your water’s quality and relationship with your customers.
• You don’t necessarily need to find a location in crowded places where rental costs can go through the roof . By offering delivery services, you can go to your customers directly instead of them going to your store. Just be careful about accepting deliveries that would cost you more on gasoline than what you’d earn from the sale.
• The required initial investment, monetary and time, can be too high for beginner entrepreneurs. Depending on your area’s existing demand and competition, it may take longer to recoup the initial investment.
• The water station equipment requires maintenance, which can consume your budget and revenue. The same applies to your delivery vehicles, which are subject to heavy wear and tear. Aside from that, the bottles and jugs must be replaced after much use.
• The business lacks proprietary value , so anyone with the capital and entrepreneurial experience can open their water refilling station and directly compete with you.
• Customers can be prone to switching to your competition if they have a lower-priced product. That’s why it’s crucial to maintain a strong relationship with your customers.
• Water quality is held to a strict national standard. If you fail a surprise check by a water quality inspector, you may be asked to pay a fine or, worse, to close down your business . Health officials recommend regular water sampling and examination as water sources such as deep wells are prone to E. coli and amoeba contamination that causes acute gastroenteritis 4 . Contamination happens when the ultraviolet light disinfection system fails, so water refining station owners are encouraged to perform maintenance checks on their machines.

How To Start a Water Refilling Station Business in the Philippines: 13 Steps

1. know what you’re getting into.

Every business is hard, and a water refilling station business is no exception. You don’t have to be very passionate about the idea, but a little interest in the business can go a long way to sustain you during tough times.

Study the business carefully and evaluate whether this is the suitable model for you. Consider your strengths or skills, risk appetite, and the amount of money you’re willing to invest .

Since water is an easy product to market and there are ready buyers everywhere, expect to face stiff competition. You should also be ready to put in the work since a water refilling station involves a lot of deliveries.

When your delivery staff aren’t available or fail to show up at work, you must do the tasks yourself lest you disappoint your customers.  As a word of warning, improper lifting of water bottles can lead to hand, back, or arm injuries. Therefore, you must learn how to safely lift a 5-gallon water bottle 5 .

2. Learn More About the Business and the Product

If you’re convinced the water refilling station business is the right fit for you, it’s time to get into a crash course.

There are two ways to learn more about this venture. One is to enroll in a seminar to teach you theory and hands-on experience.

Franchisors often conduct free seminars for interested entrepreneurs as part of their marketing strategies. The University of the Philippines Manila’s Department of Environmental and Occupational Health also has a certification course 6 for water refilling station and plant operators.

You can also conduct research and learn everything about the business independently. This is a viable option if you have a technical background.

Although anyone can quickly grasp the business, it will be easier if you’re genuinely interested in water purification’s science and technical aspects.

In general, products sold in water refilling stations are of three varieties:

• Mineral water – a product of a filtration system that eliminates impurities easily seen by the naked eye. Ultraviolet is also applied to kill bacteria. It’s known for lowering blood pressure, aiding digestion, reducing skin blemishes, and improving bone health.
• Purified water – made by removing all impurities or “hardness” of the water through reverse osmosis. Drinking this helps reduce your chances of developing gallstones. It also absorbs toxins from your body and flushes them through your urinary system.
• Alkaline water – or alkalized ionized water is produced by removing the acid content of the water and increasing its pH level. Alkaline water helps reduce the acid in our bloodstream, boosts metabolism, and prevents oxidation, leading to premature aging and diseases.

3. Conduct a Feasibility Study

A feasibility study assesses a business idea in terms of practicality and its likelihood to succeed.

To produce a reliable feasibility study, the following factors are explored in great detail:

• Market demand : Conduct a simple survey to determine how many prospective customers live in your area. You don’t want to start a business that sells a product nobody needs, do you?
• Competition : How many similar businesses already exist in your area? The more competitors you have, the more difficult it is to penetrate the market.
• Location : Although water refilling station businesses can thrive with their delivery services alone, you still need a strategic location to attract your first few customers. Consider opening your store near or inside a subdivision or exclusive village – remember that these places may have their own rules about water deliveries. You can rent or convert your garage into a commercial space to save on rental fees. To operate a water refilling station, you should have a minimum area of  20 – 25 sq.m.
• Water source : Where will the water come from? It will come from either the water district or a deep well. The latter is more practical since you don’t have to pay steep monthly fees for commercial use. The water district is also unreliable because of water service interruptions that may occur without prior warning. However, if you opt for a deep well as a water source, build it at least 25 meters from the septic tank. It should also be a safe distance from piggeries, funeral parlors, gas stations, cemeteries, and other places that contaminate the water.
• pH level of water : The total dissolved solids (TDS) in the water supply, also known as the water’s ” hardness, ” will determine the types of treatment or purifying processes that can be applied to the water source.

Here are some sample water station feasibility studies (in pdf, needs an account to download) that you can refer to when making your own:

• 4 Marias Water Station from Jennifer Macarat for Graduate School (July 2020)
• Feasibility of Alpha Best Water Station by students from the Philippine State College of Aeronautics (2014).

4. Decide Whether To Put Up Your Brand or Get a Franchise

While starting from scratch can potentially bring you more profit in the long run, the stress and risk of failure can overwhelm any first-time entrepreneur.

Competing with more established brands is also more difficult since people are inclined to buy from stores with familiar names.

Fortunately, franchising is always an option . While you’re bound to a contract and have less control over some aspects of the business, you can look at it as a training ground where you can learn as much as you can before going solo in the future.

Franchise packages can cost anywhere between Php 96,000 to Php 550,000, including all the filters and other equipment. Franchisors also help their franchisees get their businesses off the ground by providing technical assistance, marketing support, and training programs for the staff and managers.

Below is a list of the most popular water refilling station businesses in the Philippines that are open for franchising:

a. Bluewaters Global

• Franchise cost : Php 96,000 to Php 241,000
• Address : Unit 1003 Future Point Plaza, 112 Panay Avenue, Quezon City, Metro Manila​
• Email addres s: [email protected]
• Contact numbers : Globe: 0977-771-6147; Smart: 0921-881-7991; Sun: 0932-119-4522; PLDT: +63 2 775 5010
• Social Media : Facebook , Instagram

b. Livingwater

• Franchise cost : Php 112,000 to Php 201,000
• Address : W8B CCMC Compd., Industrial Area, Veterans Center, Taguig, Metro Manila
• Email address : [email protected]
• Contact numbers : 0917-807-4933/ 0917-852-7126
• Social Media : Facebook

c. Alkaviva

• Franchise cost : Php 171,000 to Php 400,000 (can be paid through monthly installments)
• Address : 35 TS Evalle Dr, Quezon City, Metro Manila 
• Contact numbers : PLDT: (027) 745-6244-; Globe: 0917-836-6194; Smart:0947-997-6438; Sun: 0932-847-9-675

d. Aquabest

• Franchise cost : Php 100,000+ (exact figures available upon inquiry)
• Address : 21 Examiner St, Brgy. West Triangle, ​Quezon City, Metro Manila 
• Contact numbers : +63-2-371-0478

e. Aquahealth

• Franchise cost : No franchise fee. Call for machine & product costs
• Address : 103 OMM CITRA Bldg, San Miguel Ave, Ortigas Center, Pasig City, Metro Manila
• Contact numbers : (02) 8636-1140, (02) 8636-1153, 0922-833-1670

f. Crystal Clear

• Franchise cost : Php 100,000 to 550,000
• Address : Arnaldo Highway, Brgy. San Francisco, General Trias City, Cavite
• Contact numbers : (02)7622-8572, 0998-590-3543

If you’re interested in getting a franchise, you may need to submit one or all of the following:

• A letter of intent (including site location)
• Duly accomplished application form
• Business proposal

Franchisors usually specify the location requirements, including the lot size, availability of parking space, absence of competitors, number of adjacent households or offices, etc.

They also strictly follow a floor plan or a store layout to ensure all the equipment, wiring, and piping will be installed correctly for a seamless purification process.

5. Write a Business Plan

A business plan is a written document that shows how your water refilling station business will evolve from start to finish.

You will probably not need this, especially if you have no plans of borrowing money from the bank but creating your business plan will help. It will provide you with a clearer, more objective view of your business and lay down the foundation that will prevent you from losing money on unnecessary expenses.

For more information about the business plan and how to write one, click here .

6. Choose the Right Location

Foot traffic is at the heart of any successful business, and a water refilling station is no exception.

It’s hard to attract potential customers if there are a limited number of people in your area, so when building your business, pick a location near subdivisions, condominiums, hospitals, clinics, schools, or offices. The more people you’ll be able to interact with and promote your business to, the better.

Just take note of the following things to consider depending on the type of customer:

• Establishments, such as offices or schools, may not pay you immediately after delivery and instead pay for all deliveries in bulk at the end of the month. This may lead to cash flow problems if you rely solely on them for your business.
• Depending on the size of the establishment, it might be hard to contact the person in charge of purchasing supplies (and water). You’ll need to work hard to make the right connections.
• Gated communities, such as condominiums and subdivisions, have their own delivery rules. You’ll need to build a strong relationship with the organization in charge, usually, the homeowners association or building management, to succeed.

If you’re lucky enough to live in or near an area with a lot of foot traffic, you can also consider setting up your business in your lot or converting an unused building to house your water refilling station.

7. Build Your Water Refilling Station

After finding a suitable location for your water refilling station business, it’s time to look for a supplier to provide you with the needed equipment.

It can either be a franchisor offering water refilling station equipment as part of its packages or a company offering only water refilling machines.

Never finalize a deal with a supplier without exploring other options. Compare the prices and features of the water refilling machines you find.

If you’re short on cash, you can avail of equipment from companies that offer their products in monthly installments. Since it’s not a franchise deal, you can buy the equipment from them and put up your water refilling station bearing a business name of your choice.

Ensure that after-sales support like warranty, technical assistance, and maintenance are available.

After doing your due diligence and signing a contract with the supplier you’re most confident with, it’s time to build the water refilling station. Here are the basic steps you need to follow:

• Work with the supplier in creating a store layout or floor plan that complies with the company’s standards. Someone will be sent to the location to survey the building and create a floor plan based on the findings. A standard water refilling station consists of a water purification room, a refilling and selling room, a container washing and sanitizing room, a storage room for the refilled and empty containers, an office, a toilet, and a source water storage facility.
• Pay the downpayment to the supplier to have your equipment ready. Keep the official receipt.
• After the layout or floor plan has been approved, the contractor will start building the water refilling station. Give or take, it may take a month to finish the construction, depending on the size of the water refilling station.
• While awaiting its completion, you can start securing the needed permits and documents to legalize your business (see next step).
• The supplier will oversee the construction to ensure it follows the layout or floor plan down to its minute details, like the piping, drainage, and washing area.

8. Register Your Business and Secure Needed Permits

To avoid legal troubles, any water refilling station business in the Philippines must secure the following permits/registrations:

• DTI registration – is available from your local DTI branch. Requirements include barangay clearance, residence certificate, etc. Don’t forget to prepare at least 5 to 10 business names for faster transactions. DTI business registration can now also be done online.
• Mayor’s permit – is issued by the municipal office two to three weeks from the date of application. You may be required to submit (a) a water analysis of potability from your water source (physical, chemical, and bacteriological tests); and (b) engineering drawings signed by a sanitary engineer.
• BIR – registration is done by filling out Form 0506 and paying the required fees.

Learn More: How to Register a Business in the Philippines: The Ultimate Guide

9. Install the Equipment

Now that your water refilling station is complete, it’s time for the supplier to install the equipment.

Installation may take 2 to 3 days to complete, after which you can dry-run the machine for another three days to ensure the safety of the water supply.

Remember, the water quality you sell depends primarily on the machine that filters it. You want the water to be free from microorganisms and chlorine, which pose serious health risks to your consumers.

To ensure that the machine’s filtration system produces the quality you desire, get water samples and take them to a DOH-accredited laboratory for analysis. If it passes the DOH requirements, you can open your water refilling station business.

Otherwise, contact your supplier to determine the cause of the contamination and replace the machines if needed.

According to the Sanitation Code of the Philippines, local health offices regularly monitor water refilling stations. Expect to have the monitoring done during these times:

• Bacteriological quality – once a month.
• Physical quality – every six months.
• Chemical quality – every six months.
• Biological quality – once a year.
• Monitoring of radioactive contaminants – is only conducted if there’s a significant amount of radiation input from the surrounding environment.

10. Purchase Transportation and Other Necessities

Delivery service is essential for a water refilling station business to thrive.

For smaller stations, a motorcycle with a sidecar is enough to deliver water containers in bulk. Take note that not all motorcycles are built for water delivery. You need a powerful enough vehicle to move the heavy load through steep inclines. As your business grows, you may need to invest in delivery trucks to manage the inventories of several stores.

A motorcycle with a two-tier sidecar can carry around 8-12 bottles per trip, depending on the size of the bottle. Depending on how far your deliveries are, you can finish a trip in about 30 minutes to 1 hour. You should estimate how many daily trips you need to make a good profit.

Consider the cost of fuel, manpower, and maintenance when adding transportation to your list of expenses. Also, invest in preparing your delivery vehicles and people for rainy weather.

If you’re not a franchisee, you must also shell out money for supplies like a heat gun, water containers, sanitizer soap, signage, and stickers bearing your business logo/name.

11. Hire Employees

Running a water refilling station alone is impossible, so you need helping hands for every task.

A water refilling station business needs at least 3 to 5 employees covering the following roles:

• Manager – oversees the business for at least 4 hours a day.
• Front Liner – receives and refills the water containers from the customers.
• Accountant/Bookkeeper – handles the financial aspect of the business.
• Technical Asst. – takes care of the water refilling machines and troubleshoots technical problems.
• Administrative Assistant – keeps a record of all sales and purchases.
• Driver/Delivery Man – transports the refilled water containers to customers’ homes.

You can assume the role of one or two of these employees when you’re still starting. As the profit increases, you can use the money to hire additional manpower to oversee the daily business operations as a supervisor. Just set guidelines for your customer management, bottle handling, water quality checking, and other processes before transitioning all the tasks to your employees.

12. Set Prices for Your Products

Pricing depends on the product type you’ll offer and the presence of other water refilling stations competing for the same market.

Commercially sold water comes in three varieties: mineral, purified, and alkaline. They differ in price because the filtration processes by which they are produced vary in complexity.

Your pricing strategy will also be based on the market price. Determine how much your competitors charge for every water container and price your products accordingly.

Offer competitive prices without sacrificing profit.

13. Promote Your Business

In the beginning, don’t expect people to swarm your store. You must get your business name in front of many people as possible.

Assuming that you’re in a strategic location with a fair amount of foot traffic, one way to introduce your business is by distributing flyers.

If you live in a subdivision, your first few customers will come from the neighborhood. Impress them with your product and service so they can help you find more customers through word of mouth. You’ll stand out from the rest if you have clean, uniformed delivery personnel that offers professional, prompt, and reliable service.

If your location fails to drive enough human traffic, move to another place with enough crowd. Or, you can distribute another set of flyers in this place to deliver water to their homes without them visiting your store.

There’s also the lucrative option called institutional selling, wherein you convince big establishments like schools, churches, BPO companies , and restaurants to get their water supply directly from you. It sounds intimidating, but if you have the will, there’s a way.

Navigating Your First Few Months (on the Road to Success)

Just to put things into perspective: don’t expect your first few months to turn into a profit. Water refilling stations are not an overnight success; you must try to succeed. There’s nothing like the feeling of turning a turnover of 0 jugs/bottles per day to 100 bottles per day (or even more).

To succeed, your goal is to get long-term customers that consistently get water from you despite the competition . To do this, you must show your customers that you are a reliable water service that provides consistent, high-quality water.

On your road to success, there are some common problems that you need to be prepared for:

• Your delivery person does not show up for the day (gets sick, quits, or goes AWOL), or your delivery vehicle breaks down. This can affect your relationship with your customer if you cannot deliver on time. If you don’t have a backup, you may need to negotiate with the customer or deliver independently.
• You get a customer complaint about your water: ‘ May Dumi ’ (Dirty) or ‘ May Lasa ’ (Weird Taste) . Always conduct water quality testing to ensure that this does not happen.
• Wear and tear of your bottles. Ensure your staff does not mishandle your bottles (e.g., throwing them). Another option is to sell the bottles to your customers but ensure to take care of them during deliveries.
• Lost or inaccurate customer records. Your customer records are the bread and butter of your business, so make backups. Make sure to track the number of bottles delivered and the delivery date to your customers. That way, you can follow up with them if they have not had any deliveries lately.

Tips and Warnings

• The number one priority of your customers is reliability, both in terms of delivery time and water quality. Make these your priority.
• If possible, offer 24/7 delivery service to establish your store as a reliable one your customers can always count on.
• Be innovative. Research the latest trend or technology in purifying water and offer them to your customers ahead of your competitors.
• Focus on providing top-notch customer service all the time. Quickly fulfill orders and deliver them to your customers’ homes without delay.
• Go the extra mile for your customers. For example, you can lend out water dispensers to your customers in exchange for a low monthly fee. In addition to the extra profit, you will also give your customers access to hot and cold drinking water without the need to buy a dispenser.
• Monitor daily operations. Being a hands-on business owner allows you to prevent pilfering ( “pangungupit” ) among your employees or any breach in sanitation that may affect the water quality.
• Take care of your employees. Motivate them to work harder by giving commissions on top of their monthly salary for every X amount of water containers they can deliver.
• Work hard. Even though the water refilling station business looks easy at first due to steady demand and fast ROI, there’s still no shortcut to success.
• Be ready for delivery spikes during big holidays such as Christmas. Customers tend to order more, expecting most businesses to close during holidays. You can also be proactive in delivering to your customers by contacting them and asking if they need water to be ready for the holidays.
• Be resourceful. Water refilling stations waste a lot of water during the purification process. To help the environment, you can recycle water by opening a laundry shop business adjacent to your water refilling station. By opening this combo business, you increase your net profit and help conserve water simultaneously.

Frequently Asked Questions

1. how has the water refilling business been affected by covid-19.

According to the International Labour Organization, the demand for clean water increased 7 during the COVID-19 pandemic. Water refilling stations play a significant role in ensuring that communities get clean and safe drinking water.

While some things have changed (for example, customers are more discerning about the safety of their water and its quality), it’s business as usual for the water refilling stations.

2. How much does a water refilling station franchise cost?

The cost of a water refilling station varies depending on the franchise. You can get an estimate by checking the franchise part of our guide. Please note that these may change at the discretion of the franchise due to discounts, cost increases, and other factors. For accurate information on franchise costs, please get in touch with the franchise directly.

• Clean water for life and livelihoods amid pandemic. (2020). Retrieved 26 November 2021, from https://www.ilo.org/asia/media-centre/articles/WCMS_754439/lang--en/index.htm
• Water Refilling Stations in the Philippines. Retrieved 26 November 2021, from https://www.koshland-science-museum.org/water/html/en/Distribution/Water-Stores-and-Refilling-Stations-in-the-Philippines.html
• Department of Health (DOH). (2017).  Administrative Order No. 2017-0010 (Philippine National Standards for Drinking Water of 2017) . Manila.
• Partlow, M. J. (2023). Retrieved from https://www.pna.gov.ph/articles/1196468
• How to Safely Change a 5-Gallon Water Cooler Bottle . [PDF]. Retrieved from https://www.csueastbay.edu/riskmanagement/files/docs/ehs/safety-tips/how-to-safely-change-a-5-gallon-water-cooler.pdf
• Certification Course for Water Refilling Station and Plant Operators. Retrieved 26 November 2021, from https://deoh.cph.upm.edu.ph/content/certification-course-water-refilling-station-and-plant-operators
• Clean water for life and livelihoods amid pandemic. (2020). Retrieved 26 November 2021, from https://www.ilo.org/asia/media-centre/articles/WCMS_754439/lang–en/index.htm

Written by Rod Michael Perez

in Business and Finance , Juander How

Last Updated June 4, 2023 08:56 PM

Rod Michael Perez

Rod Michael Perez is a freelance writer with over 7 years of experience in writing long-form articles, ad copy, and SEO content for local and foreign clients. He is also an aspiring startup founder and believes that the Philippines could be the next hub for startup culture. He takes care of his dog, a poodle-Shih Tzu hybrid, in his spare time.

Browse all articles written by Rod Michael Perez

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Starting a Water Refilling Station Business

Main Sections In This Post Steps To Starting A Water Refilling Business Points to Consider Resources Knowledge Is Power

Introduction

This article provides an overview of what to expect, including potential challenges and key considerations. It also offers valuable resources and information to assist you during the startup phase and beyond. We have a lot of information to cover, so bookmark this page for future reference, and feel free to share if you find it helpful!

Now, let’s get started with the steps.

Steps to Starting a Water Refilling Business

1. gaining an overview, a.) is starting a business the right step for you.

Starting a water refilling business can be exciting. You can be in charge, make money, and live your dream. But before you dive in, it’s important to think it through.

Starting a business is not easy, and you must be sure it’s the right path. Look at my article below to learn about important things to consider. It will help you make the best decision before taking the next step.

See Considerations Before You Start Your Business to identify key points for a new business owner.

a.) A Quick Overview of Owning a Water Refilling Business

Running a water refilling business can be a rewarding venture with its own set of challenges. As an entrepreneur in this field, you’ll provide customers with clean and purified drinking water. Expect to invest in equipment such as filtration systems, bottling machines, and storage containers.

Compliance with health and safety regulations, including regular water quality testing, is crucial. You’ll need to secure a suitable location with access to a reliable water source and consider factors like space for equipment and customer convenience.

Building a loyal customer base requires effective marketing strategies and exceptional customer service.

Remember to stay updated with industry trends and innovations to stay competitive. Ultimately, success in this business relies on delivering high-quality, safe drinking water while meeting customer demands.

b.) Pros and Cons

Pros of Running a Water Refilling Business:

1. Growing demand: As concerns about water quality and environmental impact rise, the demand for clean and safe drinking water increases. 2. Potential profitability: With a steady customer base, the business can generate significant revenue and profit. 3. Scalability: The business can expand by offering additional services like bottle sales, filtration systems, or delivery options. 4. Community impact: Providing access to clean drinking water can positively impact public health and well-being.

Cons of Running a Water Refilling Business:

1. Initial investment: Starting a water refilling business requires purchasing filtration equipment and bottles and establishing a suitable location, which can be costly. 2. Competition: The market may have other established businesses offering similar services, leading to intense competition. 3. Regulatory compliance: Adhering to water quality and safety regulations can involve complex processes, inspections, and paperwork. 4. Environmental concerns: Using plastic bottles can contribute to waste and environmental pollution, requiring responsible waste management practices.

2. Research

Water refilling business research.

Researching a water refilling business before you start is crucial for success. Accurate information will help you make informed decisions and determine if this business suits you.

A great way to acquire reliable information is by connecting with experienced individuals already in the industry. They can provide valuable insights you can trust. I have written an article with tips on how to find and approach the right people.

I highly recommend taking a moment to read the article linked below. It will give you a solid understanding before you begin your water refilling business, allowing you to take confident action.

See An Inside Look Into the Business You Want To Start  for all the details.

Target Audience

Understanding Your Target Market for a Water Refilling Business

To succeed in the water refilling business, knowing your target market is crucial. This means understanding who your potential customers are and what they want.

Market research lets you gather information about their preferences, habits, and needs. This knowledge will help you tailor your products and services to meet their expectations. By understanding your customers, you can develop effective advertising strategies and increase your chances of making sales. To delve deeper into this topic, check out my article on How To Understand Your Target Market.

People Interested in Your Water Refilling Business:

• Health-conscious individuals seeking safe and clean drinking water
• Environmentally conscious consumers looking to reduce plastic waste
• Busy professionals in need of convenient water options
• Families and households concerned about the quality of their drinking water
• Offices and workplaces looking for affordable and sustainable water solutions

When you understand your customers and their expectations, you can advertise and make sales better. For more, see my article on How To Understand Your Target Market.

3. Looking at Financials:

This part will give you a basic understanding of the costs involved in starting and running a water refilling business and the revenues and profits you can expect.

Starting Cost:

Knowing how much it will cost to open is important to ensure your business begins successfully. A good estimate will help you plan effectively and avoid financial problems.

If you underestimate the costs, you might run out of money, which can disrupt your operations. On the other hand, if you overestimate, it may be difficult to secure the necessary funding because your venture will appear risky to potential lenders.

Begin by listing everything you’ll need and determine how much each item or service costs. As you gather pricing information, you might discover other expenses you hadn’t initially considered, and you can update your list accordingly.

The total cost will depend on factors such as the size of your business, whether you hire employees or handle all the work yourself, and the location you choose. For example, opening a water refilling station in a large city will have different costs than operating one from your home in a small town. Another factor that affects startup costs is whether you buy new or used equipment.”

Sales and Profit:

It’s important to understand that the popularity of your products and services will determine your sales. Your marketing efforts also play a significant role. Additionally, the profit you make from each sale is crucial.”

In summary, your business needs to generate enough sales with sufficient profit per sale to cover your monthly expenses and provide for your own living expenses. Look at the lists below for some ideas and an idea of what to expect. When conducting your research, you can use these lists as references and input your own numbers.”

Sample Lists 

Sample estimations for a water refilling business in the USA. Keep in mind these are estimations and actual costs will vary based on a number of factors.

Startup Costs:

• Business Registration and Licensing: $500
• Legal and Accounting fees: $1,500
• Insurance: $1,000/year
• Lease/Rent (for the location): $2,000/month (assumption for the first month)
• Construction/Improvements: $10,000
• Water Filtration System: $20,000
• Water Storage Tanks: $3,000
• Other Equipment (e.g., pumps, seals, hoses): $2,000
• Initial Inventory (water bottles, caps, labels): $2,000
• Marketing and Advertising for launch: $3,000
• Utility setup: $500
• Staff training: $1,000

Total Startup Costs = $46,500

Monthly Expenses:

• Rent/Lease: $2,000
• Utilities (Electricity, water, waste disposal): $2500
• Payroll Expenses: $5,000 (assuming a few part-time employees)
• Insurance: $80 (assuming $1000/year)
• Routine Equipment Maintenance: $200
• Restocking Inventory: $1,000
• Marketing and Advertising: $500
• Miscellaneous Expenses: $200

Total Monthly Expenses = $11,480

Finally, here is a sample projection for revenue and profit.

Sample Revenue and Profit Projection:

• Assuming you sell a gallon of water for $1.50
• You can produce 500 gallons per day
• That’s $750 in revenue per day, or $22,500 in revenue per month (assuming 30 days)

Monthly Revenue = $22,500

Monthly Profit = Monthly Revenue – Monthly Expenses

Monthly Profit = $22,500 – $11,480 = $11,020

Remember that these are all estimations. Actual costs, sales, and profits can vary widely based on local market conditions, competition, and business practices.

Furthermore, there are numerous other factors that could influence these figures, such as the specific location of the business, the reliability of the water source, and the quality of the filtration system, among others.

It’s recommended to do a thorough business plan and feasibility study before starting.

4. Choosing The Right Business Location

Selecting the right spot for your water refilling business can make all the difference between success and failure.

Picking a location where people don’t need or want what you offer will lead to failure even before you start your business.

If you set up shop in an area with too many other water-refilling businesses, it will be tough to attract customers. Ideally, you want a location with demand and reasonable competition.

It’s also crucial to consider what you can afford.

Operating in a densely populated area provides greater visibility, but you must determine if the additional exposure is worth the monthly cost.

Similarly, if you take the opposite approach, you may find an extremely cheap location to run your business, but will there be enough demand to sustain it?

Choosing the right location is a vital factor in achieving success. Conduct thorough research to ensure you’re making the best choice.

For more about business locations, see Choosing The Best Location for Your Business.

5. Choose a Business Name

When picking a name for your water refilling business, you want something that catches your attention and makes sense. You need a name that is easy to say and remember.

The name you select for your company will probably stay the same, so you should take your time to choose one that suits your business and one that you’ll be happy with now and in the future.

Moreover, you’ll need a corresponding domain name for your online presence. Also, make sure that the name you choose is not already being used by another business.”

Sample Business Name ideas for a water refilling business:

• CrystalClear
• ClearSpring
• RefreshFlow

Remember, this list of names is meant to inspire your creativity and help you come up with an original name that is not already taken by another business and is available for registration.

For this important step, see How to Choose a Business Name.

6. Register Your Company

Registering Your Water Refilling Business Matters:

When you start a water refilling business, it’s key to register it. Why? Registration gives your business a real identity. It tells your customers you are a legitimate business.

It also helps protect your business name. No one else can use it. Plus, it makes getting bank loans easier. It also gives you a clear way to pay taxes, helping your town, city, or state.

What to Think About When Registering a Water Refilling Business:

Remember to consider costs when registering your water business. Fees can change depending on your state.

Consider hiring a lawyer to guide you. They can help with paperwork and legal issues.

Also, figure out the best structure for your business. It can be a sole proprietorship , partnership , corporation , or limited liability company (LLC).

Permits and Licenses for a Water Refilling Business:

• Business License : It’s your business’s ticket to operate.
• Health Permit: It makes sure your water is safe to drink.
• Building Permit: It checks if your building meets safety rules.
• Fire Department Permit: It makes sure your place can handle a fire.
• Water Pollution Control Permit: It checks if your business won’t hurt the environment.
• Sales Tax Permit: It’s for paying tax on what you sell.
• Employer Identification Number (EIN) : It’s like a social security number for your business.

See, How to Register your Business  for more.

7. Create Your Corporate ID

corporate identity, and you want that first impression to be good. It consists of various components such as your logo, website, stationary, business sign, promotional items, etc. Naturally, you want a constant professional design and one that will impress new and existing customers. See A Complete Introduction to Corporate Identity Packages for more.

8. Writing a Business Plan

A business plan is a crucial paper for water-refilling business proprietors. It’s employed for securing funds and or drawing in investors.

It is also a document you can use as a direction guide to maintaining you on the right path during the startup phase and when your water refilling business is running at full capacity.

Crafting a business plan demands time and hard work because you’re molding a vision of your water-refilling enterprise, and expressing the particulars takes patience and contemplation.

Ultimately, all the effort will pay off because you’ll know your destination and possess a strategy for reaching it.

A sample basic outline of a business plan for a water refilling business.

Executive Summary

Introduce your water refilling business, describing what it will do, why it’s needed, and why it will be successful. Provide a high-level summary of the other sections of your business plan.

Company Description

Detail the nature of your water refilling business, discussing the problems your business will solve. Outline your targeted consumers and employees and how your business will expand.

Market Analysis

Explain your understanding of your industry, target market, and competition. Identify key market trends, and explain how your water refilling business will leverage these trends for success.

Organization and Management

Outline your business’s organizational structure and management team. Describe how your team’s skills and experiences will contribute to the success of your water refilling business.

Describe your water refilling services in detail, highlighting the benefits they provide to customers. Explain why your services are superior to existing offerings in the market.

Marketing and Sales Strategy

Describe your strategies for attracting and retaining customers. Outline your sales process and how you will effectively promote your water refilling services to your target market.

Funding Request

If you’re seeking funding, describe how much you need over the next five years and what you’ll use the funds for.

Financial Projections

Provide financial projections for the next five years. Include projected income statements, balance sheets, and cash flow statements.

Exit Strategy

Discuss your long-term plans for your business, such as a sale or merger.

Include additional supporting documents or other information relevant to your business plan here.

Remember, each business plan should be unique and adapted to your specific business and market conditions. The specifics will vary depending on your business model, your market, and your company’s specific needs.

For information on creating your business plan, see,  How to Write a Business Plan.

9. Set up Your Banking

Setting up a bank account for your water refilling business has numerous advantages.

First, it simplifies expense tracking, making keeping records and providing proof during tax audits easier.

Additionally, establishing a professional relationship with your banker is highly beneficial. If your business expands and you need financial assistance, they can offer guidance and expedite loan processes.

By maintaining a connection with your banker, you can access valuable advice and support when it comes to funding your growing enterprise.

Establishing a banking relationship can streamline financial operations and potentially aid future business endeavors.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

10. Getting the Funds for Your Operation

Getting funding for your water refilling business is crucial in starting and running your venture.

Various funding options are available to you, including traditional lenders like banks, private loans, seeking investors, selling assets you own, or using collateral.

When meeting with a loan officer to discuss your funding needs, there are several key considerations to keep in mind:

• Clearly articulate your business plan and financial projections.
• Demonstrate your ability to repay the loan by presenting your personal and business credit history.
• Prepare a detailed list of expenses and how the funds will be used.
• Highlight your industry experience and any relevant qualifications.

To apply for a business loan for a new water refilling business, you will likely need to provide the following documents:

• Business plan
• Personal and business tax returns
• Financial statements (income statement, balance sheet, cash flow statement)
• Bank statements
• Proof of collateral (if applicable)
• Legal documents (business licenses, permits, registrations)

Remember, each lender may have specific requirements, so it’s essential to inquire about their specific documentation needs.

See, Getting a Small Business Loan for more.

11. Software Setup

New Software for Water Refilling Businesses: Ensure Smooth Operations

Considering software for your water refilling business? Conducting thorough research, demo availability, and user reviews can offer insights into others’ experiences with the software.

Implementing a program from scratch is generally simpler than switching to a new system once your data is already in another program.

By making an informed decision, you can streamline operations and ensure efficient business management. Take your time and choose wisely.

Check out Google’s Latest Search Results for Software Packages for a water refilling business.

12. Get The Right Business Insurance

Protecting yourself and your business is crucial, and having the right insurance coverage is vital. Before engaging in any activity, you must ensure you have proper insurance coverage in place. Incidents can happen anytime, so it’s wise not to take any chances.

Having business insurance is essential if you’re conducting business and clients are possibly injured. This coverage can help protect you if someone is hurt while doing business with you.

In addition to business insurance, you may also want to consider professional liability insurance. This type of coverage can safeguard you against potential lawsuits arising from errors, negligence, or mistakes in your professional services.

If you run or manage your business from your home, it’s crucial to inform your insurance agent about it. Failure to do so can nullify your home insurance policy, exposing you to significant financial risks.

To navigate the complexities of insurance, it’s advisable to seek guidance from a competent insurance broker. They can help you understand your needs and ensure you have sufficient coverage to protect yourself and your business.

Insurance Considerations:

Several important concerns must be remembered when seeking insurance for a new water refilling business.

Here is a list of considerations to address:

• Liability Insurance : As a water refilling business, you’ll want to prioritize liability insurance to protect against potential claims from customers who may become ill or experience damages due to the water provided.
• Property Insurance : It’s essential to safeguard your business property, including equipment, machinery, and inventory, against risks such as fire, theft, or natural disasters.
• Business Interruption Insurance : In the event of an unforeseen circumstance, such as an equipment breakdown or a disaster, business interruption insurance can provide coverage for lost income and ongoing expenses during downtime.
• Product Liability Insurance : Since you’re selling a consumable product, product liability insurance can protect your business if a customer suffers harm or injury due to defects or contamination in the water you supply.
• Workers’ Compensation Insurance : Workers’ compensation insurance is typically required if you have employees. It provides coverage for medical expenses and lost wages in case of work-related injuries or illnesses.
• Vehicle Insurance : If you have delivery vehicles or use company vehicles for business operations, ensure you have adequate commercial auto insurance to cover accidents, damages, and injuries.
• Environmental Insurance : Consider environmental insurance coverage to protect against any environmental contamination or pollution incidents that could occur during your business operations.
• Cyber Insurance : As a business dealing with customer data and transactions, cyber insurance can help protect against cyber threats, data breaches, and potential liability arising from cyber-related incidents.
• Business Owner’s Policy (BOP) : Explore the option of a comprehensive business owner’s policy that combines multiple coverages tailored for small businesses, providing a cost-effective solution for your insurance needs.
• Seek Professional Advice : Consult with an experienced insurance broker or agent specializing in commercial insurance. They can assess your specific risks and guide you in selecting the right coverage options for your water refilling business.

For more, see What to Know About Business Insurance . You can also browse the latest Google Search Results for water refilling Business Insurance .

13. Physical Setup

Time to physically set up your operations, like filtration units and storage tanks, is essential.

You will want a professional to set up your system to operate effectively.

You want to save as much space as possible if you’re in a small area while allowing access for maintenance and repairs to the system,

Next, remember your office. It’s your business’ heart. Keep it tidy for maximum productivity. Equip it with essentials: computers, files, and office supplies. You’ll spend many hours here, so make it effective and comfortable.

Also, put up a striking business sign – it’ll let people know you’re open for business.

Start smart, stay organized, and succeed.

See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

14. Creating a Website

Having a website for your water refilling business can bring numerous advantages. It allows you to reach a wider audience, enhancing your customer base and revenue potential.

Customers can easily learn about your services, prices, and contact information on your website. Online ordering and payment options make transactions convenient.

Additionally, a website can improve your brand image, credibility, and customer trust. Overall, a website opens doors to new opportunities and boosts the growth of your water refilling business.

For more, see How to Build a Website for Your Business

15. Create an External Support Team

A group of outside experts is a team of individuals you can rely on for guidance and assistance. It’s important to remember that these individuals are not your employees. Instead, you utilize their services per-usage, contractual, or hourly.

You don’t have to assemble this entire team right from the beginning since it takes time to establish professional relationships with dependable individuals. However, it’s something you should continuously strive for.

Having a strong team can be beneficial when you require their support. Your group may include professionals such as an accountant, a legal advisor, a financial consultant, a marketing specialist, technical advisors, and so on.

For more, see, Building a Team of Professional Advisors for Your Business.

16. Hiring Employees

You might want to handle everything independently when starting your water refilling business. That’s smart because paying employees can be expensive, especially initially.

But as your business grows, you might find it hard to manage everything by yourself. Keeping up with customer demands and maintenance can become overwhelming.

In such cases, hiring employees who are well-suited for the job can greatly increase your productivity.

Job Considerations for a Water Refilling Business

• Water Treatment Specialist : Responsible for ensuring the quality and purification of the refilled water.
• Sales and Marketing Manager : In charge of promoting the business, attracting customers, and developing marketing strategies.
• Customer Service Representative : Handles customer inquiries, resolves complaints, and assists customers.
• Delivery Driver : Responsible for delivering water refills to customers’ locations.
• Inventory Manager : Manages and tracks the inventory of water bottles, caps, labels, and other necessary supplies.
• Equipment Maintenance Technician : Ensures all water filtration and refilling equipment are properly working.
• Accountant/Bookkeeper : Handles financial transactions, manages budgets, and keeps track of income and expenses.
• Store Manager : Oversees the overall operations of the water refilling store, including staff management and daily operations.
• Quality Control Inspector : Conducts regular inspections to ensure adherence to safety and quality standards.
• Administrative Assistant : Provides administrative support such as managing schedules, organizing paperwork, and handling correspondence.
• IT Specialist : Manages and troubleshoots technology-related issues, including POS systems and online ordering platforms.
• Water Testing Laboratory Technician : Conducts regular water testing to ensure compliance with regulatory standards.
• Packaging and Labeling Operator : Responsible for packaging and labeling the water bottles accurately and efficiently.
• Sanitation Crew : Maintains cleanliness and hygiene standards in the store and equipment sanitation.
• Procurement Officer : Sources and purchases necessary equipment, supplies, and materials for the business.

For more, see, How and When to Hire a New Employee.

Points To Consider

Getting customers through the door.

In the water refilling business, having no customers means your business isn’t really a business. To be successful, you need to bring in customers.

In the beginning, it’s tough because not many people are aware of your business. However, it will become easier over time if people enjoy what you offer.

You will gain more marketing knowledge as you go along. Still, I recommend reading the following article for immediate ideas on attracting customers to your water-refilling business.

See our article How To Get Customers Through the Door ; you’ll find a few ideas you can use.

Marketing Ideas

Promoting your water refilling business is something you need to keep doing. The more effort you put into advertising methods that work, the more money you make.

You don’t have to market your business using a highly-rated marketing agency; just let people know about your business whenever you can.

See our marketing section for articles that will provide ideas to bring awareness to your water-refilling business.

Assessing one’s skill set is vital when considering the operation of a water refilling business. Determining whether an individual possesses the necessary skills to successfully run such an enterprise is essential.

Evaluating one’s abilities in areas such as management, finance, customer service, and marketing can help gauge the likelihood of a business’s success. Recognizing any deficiencies in these skill areas is crucial to address them effectively.

It is worth noting that lacking a key skill should not discourage aspiring entrepreneurs. Acquiring new skills or hiring professionals who possess them can bridge gaps and ensure smooth business operations. Continuous learning and personal development are fundamental aspects of entrepreneurship.

Resources like training programs, online courses, and mentorship opportunities can aid individuals in acquiring the necessary skills for running a water refilling business.

By thoroughly assessing their skill set and proactively addressing deficiencies, individuals can position themselves for success in the water refilling industry, fostering growth and delivering quality services to their customers.

Running a water refilling business requires a combination of technical knowledge, management skills, and customer service expertise. Here’s a list of essential skills for a water-refilling business owner:

• Water Treatment Expertise : Understanding the principles of water treatment, filtration, purification, and quality standards is crucial for ensuring the safety and quality of the water being provided.
• Business Acumen : Possessing general business knowledge and skills such as financial management, budgeting, marketing, and strategic planning is vital for the overall success of the water refilling business.
• Compliance and Regulation : Staying up-to-date with local, state, and national regulations and ensuring compliance with water quality standards and licensing requirements is essential to operate legally and maintain customers’ trust.
• Operations Management : Effectively managing the day-to-day operations of the water refilling business, including inventory management, supply chain management, equipment maintenance, and workflow optimization.
• Customer Service : Providing exceptional customer service is essential for building a loyal customer base. Skills like effective communication, problem-solving , and addressing customer concerns are crucial.
• Sales and Marketing : Developing effective marketing strategies, promoting the business through various channels, understanding customer needs, and implementing sales techniques to attract new customers and retain existing ones.
• Technical Knowledge : Familiarity with the different types of water purification systems, equipment maintenance, troubleshooting common issues, and ensuring efficient machinery operations.
• Quality Control : Implementing rigorous quality control measures, regularly testing water samples, and ensuring compliance with health and safety standards to maintain the highest water quality for customers.
• Leadership and Team Management : Being able to lead and motivate a team, delegate tasks, provide guidance, and foster a positive work environment.
• Adaptability and Problem-Solving : The ability to adapt to changing circumstances, think critically, and find creative solutions to problems that may arise in day-to-day business operations.
• Financial Management : Understanding financial statements, managing cash flow, budgeting, and implementing cost-effective strategies to ensure the financial stability and growth of the business.
• Networking and Relationship Building : Building and maintaining relationships with suppliers, industry professionals, community leaders, and potential business partners to create opportunities for collaboration and growth.

Remember, while these skills are important, hiring or collaborating with experts in certain areas can complement your skill set as a business owner.

Hours of Operation:

The hours of operation for a water refilling business may vary depending on various factors such as customer demand, location, competition, and local regulations. However, here are some general hours of operation to consider:

• Monday to Friday: 8:00 AM to 6:00 PM
• This allows you to cater to customers during regular business hours and accommodate those who need to refill water before or after work.
• Monday to Friday: 7:00 AM to 8:00 PM
• If your area has high demand or competition with longer operating hours, you may consider extending your weekday hours to attract more customers.
• Saturday: 9:00 AM to 5:00 PM
• Sunday: 10:00 AM to 4:00 PM
• Many customers may prefer to refill water on weekends when they have more free time. Offering weekend hours can accommodate their needs and attract more customers.
• Saturday: 8:00 AM to 7:00 PM
• Sunday: 9:00 AM to 6:00 PM
• Similar to extending weekday hours, providing longer hours on weekends can give you a competitive edge and cater to customers with varying schedules.
• Depending on the demand and location, you may consider offering 24-hour operations, especially if there is a need for water refills during late-night or early morning hours. This can be beneficial if you are located in an area with a high population of night-shift workers or have customers with specific needs.

It’s important to analyze your target market, conduct market research, and consider factors such as competition, foot traffic, and customer preferences in determining the optimal hours of operation for your water refilling business. You should also check local regulations and any restrictions that may apply to your location.

A List of Equipment You May Need for a Water Refilling Business:

When setting up a water refilling business, you’ll need various equipment to ensure smooth operations and maintain water quality. Here’s a list of equipment you may need:

• Reverse osmosis (RO) system
• Ultraviolet (UV) disinfection system
• Activated carbon filter
• Sediment filter
• Water softener (if applicable)
• Food-grade storage tanks (various sizes based on business needs)
• Water level indicators
• Water dispensing units with multiple faucets
• Stainless steel or food-grade plastic water dispensers
• Faucets, valves, and connectors
• Bottle caps, seals, and closures
• Automatic or semi-automatic bottle rinsing machine
• Bottle filling machine
• Bottle capping machine
• Labeling machine
• Shrink-wrapping machine (if offering bundled packs)
• Water testing kits (pH, TDS, chlorine levels, etc.)
• Laboratory-grade testing equipment (optional for advanced analysis)
• Disinfectants (chlorine, ozone, etc.)
• pH adjustment chemicals
• Antiscalant and cleaning agents for equipment maintenance
• Racks and shelves for organizing bottles and supplies
• Pallets or dollies for efficient storage and movement of heavy items
• Hand trucks or forklifts (depending on the scale of operations)
• Computer(s) and peripherals (printer, scanner, etc.)
• Point of Sale (POS) system or cash register
• Inventory management software
• Office furniture (desk, chairs, filing cabinets, etc.)
• Personal protective equipment (PPE) for employees (gloves, masks, goggles, etc.)
• Cleaning supplies (sanitizers, detergents, etc.)
• First aid kit
• Fire safety equipment (fire extinguishers, smoke detectors, etc.)
• Delivery trucks or vans with appropriate water storage tanks
• Vehicle maintenance and safety equipment

Remember to consider the size and capacity of equipment based on your business requirements and projected customer demand. Additionally, adhere to local health and safety regulations when selecting equipment and ensure regular maintenance to guarantee the quality and safety of the water you provide.

In this part of the article, you’ll discover useful information for your water refilling business, including current trends in the industry, the future outlook of the business, available water refilling businesses for sale, franchise opportunities, and additional resources.

Industry Trends and Statistics

Stay ahead in the water refilling industry by observing trends and statistics.

By understanding the market, you can make informed decisions, identify growth opportunities, and tailor your business strategies to meet customer demands.

Stay competitive and drive success with industry insights. See the latest search results for trends and statistics related to water refillings.

Top Water Refillings

Explore established water refilling businesses to uncover innovative ideas that address gaps in the industry or identify overlooked opportunities in your own business.

Gain insights to enhance your operations and improve customer satisfaction by learning from successful models in the field.

See the latest search results for the top water refilling businesses.

The Future of the Water Refilling Industry

Researching the future of the water refilling industry offers numerous benefits for aspiring entrepreneurs. It helps identify emerging trends, innovative ideas, and untapped opportunities.

By staying informed, individuals can make informed decisions, enhance their business operations, and cater to evolving customer demands, boosting their chances of success.

See the search results for the future of the water refilling industry.

Researching water-refilling prices is beneficial for entrepreneurs starting a water-refilling business. It helps determine competitive pricing strategies, understand market trends, and ensure profitability.

Entrepreneurs can make informed decisions to attract customers and maximize their business revenue by analyzing prices.

See the latest Water Refilling Prices.

Water Refilling Businesses for Sale

“Benefits of purchasing an established water refilling business compared to starting from scratch are significant. You start earning revenue immediately, bypassing the challenging startup phase.

You have a solid foundation with a proven track record, known revenue, profit, expenses, and an existing client base. The business already has a reputation, providing credibility.

However, drawbacks include higher costs due to goodwill and potential challenges if you wish to make significant changes that may affect customer loyalty. Remember, when buying a business, you inherit its good and bad reputation.”

See Water Refilling – Businesses for sale to browse the latest listings.

Water Refilling Franchise Opportunities

Considering a water refilling franchise has advantages and disadvantages worth exploring.

Pros include a proven business model, leveraging the franchise’s reputation and marketing, and comprehensive knowledge beforehand.

Support from the corporate office is also available.

However, cons include potential high costs, limitations on making significant changes without corporate approval, restrictions on unapproved products or services, and adherence to the agreed-upon business operations.

It’s essential to carefully assess these factors to determine if a franchise fits you.

See Water Refilling franchise opportunities to browse the latest listings.

Knowledge Is Power if You Use It!

The power of knowledge is crucial when starting and running a water refilling business. A wealth of valuable information is available to assist you at every stage.

Click on the links below to access useful resources that can benefit you both now and when your water-refilling business is fully operational.

A Day in the Life

Discover what running a water refilling business is like through “A Day in the Life” series. Industry insiders share valuable tips and insights, providing a helpful overview for aspiring entrepreneurs. Gain firsthand knowledge to prepare for the challenges ahead.

See the search results for a day in the life of water refilling business owners.

Water Refilling Business Owners Interviews

Posted Interviews with business owners offer an inside look into the water refilling industry. This valuable section provides essential information and diverse perspectives, helping you gain insights and prepare for what lies ahead in the industry.

See the search results for Interviews of water refilling business owners.

Publications

Stay in the know with publications to stay updated on valuable industry information.

Set aside time each week to enhance your knowledge and stay updated with the latest insights in your field.

See the search results for publications related to water refillings.

Joining water refilling forums offers opportunities to engage in popular discussions and form connections with industry peers.

Participation fosters relationships and facilitates knowledge sharing within the community.

See the latest search results for the top water refilling forums.

Subscribing to water refilling blogs offer ideas and industry updates. Subscribe to relevant ones and unsubscribe from outdated or unhelpful ones, creating a valuable collection of blogs for a steady stream of useful information.

Look at the latest search results for water refilling blogs  to follow.

Books provide valuable information for starting and running a water refilling business. They offer insights and practical guidance to help you successfully launch and manage your venture.

The latest books about starting a water refilling business, listed on Amazon

Stay informed about the water refilling industry with news updates. Set up alerts to receive notifications whenever media covers new developments.

See what’s in the news about water refillings

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Business Plan Template for Water Refilling Station

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Starting a water refilling station business can be a daunting task, but with the right plan in place, you can turn your entrepreneurial dreams into a reality. ClickUp's Business Plan Template for Water Refilling Station is here to guide you every step of the way!

This comprehensive template helps you create a solid business plan by:

• Outlining your strategy and goals, ensuring you stay on track
• Conducting a thorough market analysis to understand your target audience and competition
• Developing financial projections that demonstrate the profitability of your venture
• Defining operational procedures to ensure smooth day-to-day operations

Whether you're seeking investors or simply want a roadmap for success, ClickUp's Business Plan Template for Water Refilling Station has got you covered. Start planning your business journey today!

Business Plan Template for Water Refilling Station Benefits

A business plan template for a water refilling station can provide numerous benefits for entrepreneurs looking to start their business. Some of these benefits include:

• Comprehensive strategy: The template helps entrepreneurs outline a comprehensive strategy for their water refilling station, including market analysis, target audience, and competitive advantage.
• Financial projections: The template guides entrepreneurs in creating accurate financial projections, including revenue forecasts, operating expenses, and investment requirements, which are crucial for attracting investors.
• Operational procedures: Entrepreneurs can use the template to define operational procedures, such as water purification processes, quality control measures, and inventory management, ensuring smooth operations.
• Funding opportunities: A well-prepared business plan increases the chances of securing funding from investors, banks, or government agencies, providing the necessary capital to start and grow the water refilling station business.

Main Elements of Water Refilling Station Business Plan Template

When starting a water refilling station business, having a solid business plan is crucial. ClickUp's Business Plan Template for Water Refilling Station provides all the essential elements to help you create a comprehensive and professional plan:

• Custom Statuses: Track the progress of different sections of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Utilize custom fields like Reference, Approved, and Section to add specific details and notes to each section of your business plan.
• Custom Views: Access different views, such as Topics, Status, Timeline, Business Plan, and Getting Started Guide, to organize and visualize your business plan data efficiently.
• Collaboration: Collaborate with team members, assign tasks, set due dates, and leave comments on specific sections of your business plan.
• Attachments: Attach relevant documents, images, or financial spreadsheets to each section of your business plan for easy reference.
• Integrations: Seamlessly integrate with other tools like Google Drive or Dropbox to import and centralize all your important business plan files.

How To Use Business Plan Template for Water Refilling Station

If you're starting a water refilling station and need to create a business plan, follow these steps to effectively use the Business Plan Template in ClickUp:

1. Define your business concept and goals

Start by clearly defining your business concept and overarching goals for your water refilling station. Consider factors like your target market, unique selling proposition, and long-term objectives. This will help set the foundation for your business plan.

Use a Doc in ClickUp to brainstorm and outline your business concept and goals for your water refilling station.

2. Conduct market research

Before diving into the details of your business plan, gather market research to understand the demand, competition, and potential challenges in the water refilling industry. Analyze customer preferences, market trends, and regulatory requirements to ensure your business plan is well-informed and strategic.

Use the Table view in ClickUp to organize and analyze your market research data effectively.

3. Develop your operational and financial strategies

In this step, outline the operational and financial strategies you'll implement to run a successful water refilling station. Define your pricing structure, distribution channels, marketing tactics, and operational processes. Additionally, project your financials including start-up costs, revenue forecasts, and profitability analysis.

Create custom fields in ClickUp to track and analyze your operational and financial strategies in your business plan.

4. Review and refine your business plan

Once you've completed the initial draft of your business plan, take the time to review and refine it. Ensure that all sections are comprehensive, cohesive, and aligned with your overall objectives. Seek feedback from mentors, advisors, or industry experts to strengthen your plan and make necessary revisions.

Set a recurring task in ClickUp to regularly review and update your business plan to reflect any changes or updates to your water refilling station.

By following these steps and utilizing the Business Plan Template in ClickUp, you can create a comprehensive and strategic plan for your water refilling station.

Get Started with ClickUp’s Business Plan Template for Water Refilling Station

Entrepreneurs looking to start a water refilling station business can use the ClickUp Business Plan Template to create a comprehensive business plan that covers all aspects of their venture.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a solid business plan:

• Use the Topics View to organize your business plan into different sections such as Executive Summary, Market Analysis, Financial Projections, and Operational Procedures
• The Status View will help you track the progress of each section of your business plan, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will provide a visual representation of your business plan's timeline, allowing you to set deadlines and milestones
• The Business Plan View will give you a comprehensive overview of your entire business plan, allowing you to easily navigate between sections
• The Getting Started Guide View will provide step-by-step instructions on how to use the template and fill out each section
• Utilize the custom fields, such as Reference, Approved, and Section, to add additional information and track the status of each section
• Collaborate with team members and stakeholders to gather input, feedback, and revisions
• Regularly update the statuses of each section to keep track of progress and ensure completion
• Monitor and analyze your business plan to ensure it aligns with your goals and objectives
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How to Start a Profitable Water Refilling Station Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a water refilling station business plan., 3. develop a water refilling station brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for water refilling station., 6. open a business bank account and secure funding as needed., 7. set pricing for water refilling station services., 8. acquire water refilling station equipment and supplies., 9. obtain business insurance for water refilling station, if required., 10. begin marketing your water refilling station services., 11. expand your water refilling station business..

Before diving into the water refilling station business, a thorough market analysis is crucial. It helps in understanding the demand, competition, and potential for profitability. This step is the foundation upon which you can build a successful business plan.

• Identify Your Target Market: Determine who will be your customers – residential, commercial, or both. Consider demographics such as age, income levels, and locations.
• Analyze Competitors: Research existing water refilling stations in your area. Note their services, pricing, and market share to identify gaps and opportunities.
• Understand Legal Requirements: Familiarize yourself with the regulations and permits required to operate a water refilling station in your locality.
• Assess the Water Supply: Evaluate the quality and reliability of your water source, and the cost of purification and filtration processes.
• Examine Pricing Strategies: Look at how you can price your services competitively while ensuring a good profit margin.
• Explore Marketing Avenues: Consider how you will advertise your business to your target market. This could include local advertising, social media, or partnerships.

Are water refilling station businesses profitable?

Yes, water refilling station businesses can be highly profitable, depending on factors such as the location, size of the business, and the amount of demand for bottled water. Additionally, water refilling stations often have lower overhead costs than traditional bottled water distributors.

Creating a thorough water refilling station business plan is pivotal for the success of your venture. It will serve as a roadmap for your business operations, financial management, and strategic growth. Here's a guide to help you draft an effective business plan:

• Summarize your business concept, including the type of water refilling station, services offered, and unique selling points.
• Conduct a market analysis to understand the demand, identify your target market, and analyze competitors.
• Detail your marketing and sales strategies, such as pricing, promotions, and distribution channels.
• Outline your organizational structure, including information about the management team, staffing needs, and operational workflow.
• Provide a comprehensive financial plan with projections, including startup costs, operational expenses, revenue streams, and break-even analysis.
• Include a section on regulatory compliance, detailing the necessary permits, health standards, and environmental regulations.
• Discuss the risks and challenges you might face and offer contingency plans to address them.
• Establish clear, measurable goals and milestones to track the progress and success of your water refilling station business.

How does a water refilling station business make money?

Water refilling station businesses can make money by charging customers for refills, supplying water tanks, renting out filtering systems, and providing delivery services. Examples of target customers for an air duct cleaning business could be households with pets, people who live in areas with high pollen count, and homes that are more than ten years old. Additionally, businesses such as hotels and hospitals may also be potential audiences since air quality is extremely important in such places. Air duct cleaning businesses can capitalize on these needs and generate a steady stream of revenue.

Creating a strong brand is crucial for your water refilling station to stand out in a competitive market. Your brand encompasses your company's identity, values, and the promise you make to your customers. Below are key points to consider when developing your water refilling station brand:

• Define your unique selling proposition (USP) that differentiates your brand from competitors. Is it the purity of water, affordable pricing, innovative technology, or exceptional customer service?
• Choose a brand name that is memorable, easy to pronounce, and reflects the essence of your water refilling station. Ensure the name is not already taken by doing a thorough trademark search.
• Design a logo and visual elements that are recognizable and convey your brand's message. The visual identity should be consistent across all marketing materials and packaging.
• Create a brand story that connects with your target audience on an emotional level. Share your vision, mission, and the reasons behind starting your water refilling station.
• Ensure consistent brand messaging across all channels of communication, including your website, social media, advertising, and customer service.
• Consider the environmental impact of your brand and incorporate sustainable practices into your branding strategy, which could appeal to eco-conscious consumers.

How to come up with a name for your water refilling station business?

Naming a business can be a daunting task. It can be helpful to start by reflecting on what makes your water refilling station unique. What values do you want to emphasize? Once you decide on this, you can use brainstorming techniques like listing words that come to mind when thinking of your business’s mission or listing descriptive words such as “refreshing” or “clean.” Be sure to consider if the name will age well over time; it should remain relevant even if your business expands beyond water refilling services in the future. Finally, narrow down a few choices and look them up online to make sure they are not already taken by other businesses in the field.

Formalizing your business registration is a critical step in establishing your water refilling station. This process will ensure that your business is legally recognized, allowing you to operate within the framework of local laws and regulations. Here's a guide to help you navigate the registration phase:

• Check with your local government office or business bureau to determine the specific requirements for registering a business in your area.
• Gather necessary documents, which may include a business plan, proof of identity, address, and ownership of the business premises.
• Choose an appropriate business name and ensure it is not already in use by conducting a name search through the business registration entity.
• Register your business name and pay any applicable fees to secure your business's legal identity.
• Apply for a business permit or license to operate a water refilling station, which might involve health and safety inspections by local authorities.
• Obtain an Employer Identification Number (EIN) or similar tax identification number from your country's revenue service for tax purposes.
• Register for state and local taxes, including sales tax, if applicable to your business.
• Consider consulting with a legal advisor to ensure all legal formalities are properly addressed.

Resources to help get you started:

Explore critical resources designed for water refilling station entrepreneurs offering market insights, operational best practices, and strategic growth advice:

• IBWA (International Bottled Water Association): Provides comprehensive industry reports, educational resources, and regulatory information specific to the bottled water industry. Visit IBWA .
• Small Business Administration (SBA): Offers guides on starting a business, including financing, marketing, and operational strategies for small business owners. More at SBA .
• Beverage Industry Magazine: Features news, trends, and innovations in the beverage industry, with focus sections on water and non-alcoholic segments. Access the latest at Beverage Industry .
• Water Quality Association (WQA): A resource for understanding water treatment standards, certification programs, and industry best practices. Explore more at WQA .
• Entrepreneur Magazine: While not water-specific, it offers valuable guidance on business growth, marketing, and strategic planning for entrepreneurs. Visit Entrepreneur .

To ensure your water refilling station operates legally and complies with local health and environmental standards, acquiring the necessary licenses and permits is essential. This step is crucial as it ensures the safety of your products and instills confidence in your customers. Below is a guide to help you navigate this process:

• Research Local Regulations: Check with your city or municipal hall to understand the specific requirements for water refilling stations in your area.
• Business Permit: Apply for a business permit with your local government, which often requires proof of your business location and compliance with zoning laws.
• Sanitary Permit: Obtain a sanitary permit from the local health office, confirming that your water refilling station meets health and sanitation standards.
• Environmental Compliance Certificate: Secure an Environmental Compliance Certificate (ECC) from the Department of Environment and Natural Resources if required.
• Bureau of Food and Drugs (BFAD) Approval: In some jurisdictions, you may need to acquire approval from the Bureau of Food and Drugs or its equivalent to ensure your water is safe for consumption.
• Barangay Clearance: Get a barangay clearance to show that your business complies with the requirements of the local barangay unit.
• Fire Safety Inspection Certificate: A fire safety inspection certificate is often needed to ensure your establishment meets fire safety regulations.

What licenses and permits are needed to run a water refilling station business?

To run a water refilling station business, you'll need to apply for a range of licenses and permits, depending on where you are located. Generally, you'll need a business license to operate the business legally, as well as permits for the equipment and infrastructure used to process and store the water. Depending on your location, you might also need additional permits from state or local health authorities regarding waste disposal, supply of water and treatment of wastewater. You may also need to obtain a tanker truck permit if you plan to provide delivery services.

Starting a water refilling station requires careful financial planning and management. Once you've established your business structure and obtained the necessary permits, the following step is to set up a dedicated business bank account and explore funding options. Here’s how to go about it:

• Choose a bank: Research banks that offer business accounts with low fees and good customer service. Consider the convenience of branch locations and online banking services.
• Open your account: Gather required documents such as your business registration, EIN, and personal identification, and open a business checking account to manage your transactions professionally.
• Understand banking services: Familiarize yourself with services like merchant services, business credit cards, and lines of credit, which can be beneficial for your business operations.
• Secure funding: If you need additional capital, consider a business loan, line of credit, or explore investors. Prepare a solid business plan to present to potential lenders or investors to secure the necessary funding.
• Monitor your finances: Regularly review your bank statements and reconcile them with your own records to ensure all transactions are accurate and accounted for.

Establishing competitive and profitable pricing for your water refilling station is pivotal for your business success. Here's a concise guide to help you determine the right price points for your water services:

• Cost Analysis: Calculate your total costs, including overheads, maintenance, supplies, and labor, to ensure your prices cover expenses and yield a profit.
• Market Rates: Research local competitors' prices to understand the market rate and position your pricing strategically, whether on par, slightly lower, or higher based on value-added services.
• Value Proposition: If offering additional benefits like enhanced water purification or home delivery, consider setting a premium price to reflect the added value.
• Volume Discounts: Encourage bulk purchases by offering discounts for larger volumes, which can attract more customers and increase sales.
• Promotions: Introduce introductory offers or loyalty discounts to new and returning customers to build your customer base and promote retention.
• Regulatory Compliance: Ensure your pricing aligns with local regulations and standards to avoid legal issues and maintain a good reputation.

What does it cost to start a water refilling station business?

Initiating a water refilling station business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $Php 325,000 for launching such an business. Please note, not all of these costs may be necessary to start up your water refilling station business.

Starting a water refilling station requires careful selection of equipment and supplies to ensure the production of clean, safe, and high-quality drinking water. It is important to invest in reliable and efficient machinery, as well as necessary consumables, to set the foundation for a successful business. Below are the key items you'll need to acquire:

• Water Treatment System: Choose an appropriate water purification system such as reverse osmosis, ultraviolet, or ozone generator, depending on the quality of your source water.
• Storage Tanks: Purchase food-grade water storage tanks for both the raw and treated water.
• Water Dispensers: Get water dispensing units that customers can use to fill their containers.
• Bottles and Containers: Stock up on a variety of clean and durable water bottles and containers in different sizes for customer convenience.
• Seals and Caps: Ensure you have a steady supply of bottle seals and caps to maintain water quality after dispensing.
• Pumps and Filling Machines: Invest in pumps for transferring water and automatic or semi-automatic filling machines for efficiency.
• Washing Area: Set up a washing area with equipment for cleaning and sterilizing containers.
• Miscellaneous Supplies: Have on hand other supplies such as cleaning agents, test kits for water quality testing, and maintenance tools for equipment.

List of software, tools and supplies needed to start a water refilling station business:

• Water refilling machine – USD 6,000 – 8,000
• Internet connection for online orders - USD 300 – 600/month
• Piping materials – USD 800 – 1,200
• Water filter system – USD 400 – 800
• Water tank – USD 450 - 1,300
• Office supplies (i.e. computer, printer, stationery) – USD 1,500-2,200
• Glass jugs and plastic containers - USD 200 - 400
• Cooling and heating system (optional) - USD 300 - 500
• Delivery Van or Truck (optional) -USD 5,000-10,000
• Website development and hosting fees (optional) - USD 500-3,000/year

Securing business insurance is a crucial step in safeguarding your water refilling station against potential liabilities and unforeseen events. It not only protects your investment but also provides peace of mind as you operate your business. Consider the following types of insurance policies that you may require:

• General Liability Insurance: This covers injuries or property damage caused by your business operations.
• Product Liability Insurance: Essential if your water products cause harm, this insurance can protect against legal claims and damages.
• Property Insurance: Protects your physical assets, such as equipment and inventory, in case of fire, theft, or other damages.
• Business Interruption Insurance: Compensates for lost income and covers operating expenses if your business is temporarily unable to operate.
• Workers' Compensation Insurance: If you have employees, this is often mandatory and covers them in case of work-related injuries or illnesses.
• Professional Liability Insurance: Also known as errors and omissions insurance, it covers legal fees and damages if you're sued for negligence or improper advice.

Consult with an insurance agent who specializes in business policies to ensure you have the appropriate coverage for your water refilling station.

Embarking on the journey to market your water refilling station is a pivotal step in attracting and retaining customers. A robust marketing strategy will not only create awareness for your brand but also build trust within your community. Here are some effective marketing approaches to consider:

• Local Advertising: Utilize local newspapers, radio stations, and community billboards to reach your immediate audience.
• Online Presence: Create a professional website and engage on social media platforms to connect with customers and provide updates and promotions.
• Loyalty Programs: Implement a rewards system to encourage repeat business and word-of-mouth referrals.
• Community Involvement: Participate in local events and sponsor community programs to gain visibility and show your investment in the community's wellbeing.
• Partnerships: Collaborate with local businesses to offer joint promotions and tap into their customer base.
• Customer Feedback: Encourage reviews and testimonials from satisfied customers to build credibility and attract new clients.
• Direct Marketing: Distribute flyers, brochures, and business cards in high-traffic areas to increase brand recognition.

Expanding your water refilling station business is a vital step towards increasing your market reach and profitability. As you consider growth, it's important to strategize carefully to ensure that expansion efforts align with your business goals and customer needs. Here are some key points to guide you in expanding your water refilling station business:

• Conduct market research to identify new locations with high demand and low competition for your water refilling services.
• Improve and diversify your product offerings, such as offering mineral, alkaline, or purified water, to cater to different customer preferences.
• Invest in advanced water purification technology to enhance the quality of your water and increase production capacity.
• Implement a robust marketing strategy that includes social media advertising, local partnerships, and promotional deals to attract new customers.
• Explore franchising opportunities to partner with entrepreneurs who can help grow your brand in new markets.
• Provide exceptional customer service and maintain high standards of cleanliness and safety to build a loyal customer base.
• Consider offering delivery services to reach customers who cannot visit your station, thereby increasing convenience and expanding your customer base.

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How To Start A Water Refilling Station Business In The Philippines

By  Yesh Quijano     June 25, 2024       min read

Many business owners in the Philippines want to know how to start a water refilling station business that will be profitable and last a long time.

With the need for clean and safe drinking water rising, this business is a golden opportunity.

In this article, we’ll help you set up your water refilling station by talking about the ins and outs of the business and giving you helpful advice.

We can help you with everything from understanding local rules to choosing the right equipment and suppliers.

So, grab a glass of water, and let’s dive into this exciting opportunity together, whether you’re considering franchising or building your brand.

Table of Contents

What is a water refilling station?

A water refilling station is a specialized facility that purifies water from different sources to make it safe for people to drink.

Advanced filtration systems like reverse osmosis, UV treatment, and activated carbon filters are used at these stations to remove impurities and contaminants from the H20 to ensure it meets strict quality standards.

Aqua refilling stations are a big part of ensuring people have clean H2O, especially in places where tap water isn’t reliable or enough.

Why you should open a water refilling station

Opening an aqua refilling station is a good business idea for several reasons.

First, people always want clean H20 to drink because it is a basic need . This ensures that people will always seek safe and cheap water solutions.

Second, more people use water refilling stations for daily needs because they know more about waterborne diseases and pollution.

Lastly, this business has low costs to start up and run , so people from all backgrounds can start their businesses.

By doing something helpful for your community, you can start a business that could be both rewarding and profitable.

Demand for your product is assured.

When you start a business at a water refilling station, you can be sure that people will want to buy your product. Water is an important resource; people always need clean, drinkable water.

As people worry more and more about the quality and safety of tap water, they are looking for other ways to ensure they are drinking clean H20. Water refilling stations are popular because they are reliable and cost-effective for homes and businesses.

So, your business has a strong chance of doing well because it sells a necessary product and is wanted by a wide range of people in your area.

Your business model will be simple.

The business model for a water refilling station is simple and easy to handle. As the owner, your main job will be finding, cleaning, and delivering clean water to your customers.

This makes it easy for you to focus on the most important parts of your business, like providing good water and great customer service.

Also, because the business model isn’t too complicated, training employees, running the day-to-day business, and focusing on giving customers good products are easier.

In essence, the simplicity of the business model for water refilling stations is a big plus for new entrepreneurs who want to get into the field.

Startup costs can be minimized.

With careful planning and research, you can set up a water refilling station for as little money as possible. You can lower your start-up costs by choosing cheap, reliable equipment and a good location.

Starting with the most important equipment and a smaller space, you can keep costs down and still give good service. To save even more money, you can buy or rent used equipment. As your business grows, you can put money into improvements and expansion.

By being smart about handling your startup costs, you can get your water refilling station up and running with little stress about money.

It’s an accessible business to scale

A water refill station business is easy to start and scalable, which makes it a good choice for entrepreneurs.

Expanding your business to serve a larger market will be easy as your customer base and profits grow. This could mean opening more branches in important places or upgrading your equipment to make more things.

You can also add variety to your products by selling different kinds of water, like mineral, purified, and alkaline water, to meet the needs of other customers.

With a flexible business model and a product always in demand, growing your aqua refilling station can be easy and profitable.

Very service area-oriented

A water refilling station is a service-area business, which means it focuses on meeting the needs of the people in the area.

By meeting the water needs of the people in your area, you can build a loyal customer base and make connections that will last for a long time.

Choosing a location with much foot traffic and little competition is important to succeed. Your business will do well if you make it easy for your target customers to find you and give them great service.

By knowing and meeting the unique needs of your area, you can tailor your services and make a water refilling station that does well.

Factors to Consider Before Opening a Water Refilling Station

Before opening an aqua refilling station, consider these crucial factors:

It is important to allocate funds for necessary expenses, such as:

• Equipment: Invest in reliable purification and filtration systems.
• Cleaning and maintenance: Ensure your station remains clean and well-maintained.
• Miscellaneous expenses: Set aside a budget for unexpected costs.

2. Water Quality Standard

Maintain strict water quality standards to provide your customers with safe and clean drinking water.

3. Competition

Assess the local market and find out who your competitors are so you can develop a unique selling point that makes you stand out.

Types of Water to Sell:

When opening a water refilling station, having different kinds of water can meet the needs and preferences of a wide range of customers. Look at these choices:

Mineral Water

Mineral water comes from underground reservoirs and has minerals like calcium, magnesium, and potassium that our bodies need. It doesn’t go through much processing to keep its natural makeup, so it’s a healthy choice for daily use.

Purified Water

This type of water undergoes a rigorous filtration process, such as reverse osmosis or distillation, to eliminate impurities and contaminants. Clean, neutral-tasting purified water is a popular choice for drinking and cooking.

Alkaline Water

Alkaline water has a higher pH level than regular tap water (above 7), which some people think has health benefits, such as making the body less acidic. By offering alkaline water, you can serve customers who care about their health and want other H20 options.

Understanding Local Regulations and Requirements

• Getting the permits and licenses you need: To run your business legally, you should get the necessary licenses and permits.
• Meeting local health and sanitation standards: Follow health and cleanliness rules to keep the place clean.
• Meeting environmental guidelines: Use eco-friendly methods to reduce the damage your station does to the environment.

Best Water Refilling Station Franchises You Can Get Today

AquaHealth is a water refilling company that has been in business for over 21 years and has a business model that has stood the test of time. Using advanced filtration technology, they sell water that is safe to drink and doesn’t cost too much.

Franchise Details:

• Starting price: PHP 495,000
• Water filtration system: Low-cost, high-quality water purification system delivering alkaline ionized water
• Inclusions: Technical assistance, full gear installations, staff training, interior design, twice-per-month maintenance, and marketing efforts

Ocean Fresh

Ocean Fresh, part of the Ybanez Group, delivers consistent, clean, high-quality drinking water at low prices. For high-quality water, they use top-of-the-line hydro-alleviation techniques.

• Starting price:
• Water filtration system: Latest hydro-alleviation program
• Inclusions: Professional setup and maintenance services, research study, and business statistics

Aqua 2000 has been in business since 1997. It has 420 water refilling stations nationwide that use water filtration technologies made in the US.

• Starting price: PHP 450,000
• Water filtration system: US-made water filtration system
• Inclusions: Free installation services within Metro Manila, regular support, marketing and operations support, promotions, and advertising operations

Blue Waters

BlueWaters has been in business for more than 25 years and offers a variety of franchise options, such as Safe Alkaline Water Station, Safe Mineral Water Station, and Safe RO Water Station.

• Starting price: PHP 80,000
• Water filtration system: Multiple types are available depending on your specification
• Inclusions: Equipment, complete installation, marketing operations, staff training, and more

AquaSoft Water Systems Inc. has been around since 1998. It has about 115 locations nationwide and offers different franchises, such as water refilling stations.

• Starting price: PHP 400,000
• Water filtration system: 16-stage water purification
• Inclusions: Brand name usage, layout and design, ocular inspection, signage, installation and maintenance of equipment, and appliances like hot and cold dispensers, foot pumps, etc.

How To Start A Water Refilling Station In The Philippines

Step 1: do your homework.

Before starting a water refilling station business, you need to research to ensure you acquire a solid foundation.

Research the industry

Start by learning about the water refilling station industry’s market trends, target customers, competition, and possible problems. Learn about the different ways to treat water and the newest technologies used in the business.

Know the ins and outs of the business

Learn how a water refilling station works daily, including how to care for the equipment, check the water quality, and help customers. Find out what permits and licenses are needed to run a business in your area.

Do a Feasibility Study

Do a feasibility study on starting a water refilling station business to determine if your idea will work. This process involves looking at the market demand, potential income, startup costs, and return on investment.

If you wish to start a business as a water refilling station, a well-researched feasibility study will help you make smart decisions and reduce risks.

Step 2: Franchising vs. Self-Made Brand

• Easier setup process
• Access to a proven business model
• Established brand recognition
• Training and support provided
• Higher initial investment
• Greater control over business operations
• Customizable branding and marketing strategies
• Potential for higher profit margins
• More responsibility for business setup and management
• Requires extensive industry knowledge and experience

Step 3: Planning

Write a business plan.

For your water refilling station to be successful, you need a well-thought-out business plan. It should have a summary, an analysis of the market, marketing strategies, financial projections, and a business plan. This document will help you stay on track and keep your business on track as you start and grow it.

Choose the best location.

The location of your water refill station can have a big effect on how well it does. Look for places with a lot of foot traffic, are visible, and are easy for customers to visit. When choosing, think about nearby competition, parking, and the kind of people who live in the area.

Take care of legalities.

Ensure you follow all local rules and regulations, such as getting the permits and licenses you need to run a water refilling station. This may require registering your business to the Department of Trade and Industry (DTI) and Bureau of Internal Revenue (BIR), getting a sanitary permit, following health and sanitation standards from your local government, and following environmental rules. You must consult local authorities and get legal advice to ensure your refilling station is legal.

Step 4: Execution

Building your water station

You can start building your water refilling station once you have the right permits and an ideal location. Hire a trustworthy contractor who has built water stations before. Remember that the design of your station should be functional, attractive, and in line with local building codes and rules.

Installing equipment

After the construction, you must put in the equipment for cleaning and treating the H2O. Buy good equipment from trusted sellers and make sure it meets industry standards. Hire a professional technician to set up the equipment correctly to ensure it works well and avoid problems in the future.

Hiring employees

For your water refilling station to run smoothly daily, you will need a team of dedicated and skilled workers. Look for people who have worked in the field before, are good at helping customers, and develop a strong work ethic. Invest in proper employee training, focusing on technical skills, customer service, and health and safety.

Step 5: Marketing and daily operations

Set up a unique brand identity that sets you apart from the others.

Your brand should show what your company stands for, its mission, and its commitment to giving customers high-quality water. Use your brand’s elements, such as colors and fonts, in all your marketing materials.

Read our article on name ideas for your refilling station .

Develop a Strong Online Presence and Brand Identity

Set up a unique brand identity that makes you stand out.

Your brand should show what your company stands for, its mission, and its commitment to giving customers high-quality H2O. Use your brand’s elements, such as colors and fonts, in all your marketing materials.

A Facebook page will suffice, but a website can be good for your credibility too.

Creating a memorable and attractive brand name and logo .

Choose a brand name that is easy to remember, fits your target market, and describes your business well. Make a logo that looks good, simple, and easy to remember. Your logo should be flexible enough to look good in different sizes and formats.

Using strategies for online marketing to attract customers.

Use a mix of online marketing strategies to attract customers, such as search engine optimization (SEO), social media marketing , and email marketing.

Develop targeted and interesting content that meets the needs and interests of your audience, gets them involved, and brings people to your website. Keep an eye on your marketing efforts and change your plans based on how they are doing and what people tell you.

The Pros and Cons of Water Refilling Stations

Water is an important commodity

Water is a basic need for life, so there is always a demand for clean and safe drinking water. As more people live in a place and there is less water to go around, the need for reliable water refilling stations will only grow.

Focused Business Line

A water refilling station focuses on just one product, which makes it easier to run and keep up. It also lets people specialize in water treatment, ensuring customers can trust the products.

Perfect in Any Location

Water refilling stations can be set up in various places, from cities with lots of people to small towns in the country. A water refilling station can do well if there is a need for clean drinking H2O.

Longer Return on Investment

The initial investment can be big for a water refilling station, especially if you buy high-quality equipment and a franchise. If there is a lot of competition in your area, it could take a while to get your money back and start making money.

Costly Maintenance

Keeping equipment in good shape and following sanitation standards can be expensive. To ensure that your H2O product is safe and of good quality, you must keep an eye on it and put money into keeping, cleaning, and maintaining the equipment.

Lacks Proprietary Value

Many companies offer similar products and services, so the water refilling business doesn’t have a lot of unique value. This can make it hard to set your brand apart from the competition and make it stand out.

Customer Service and Building Loyalty:

Getting ahead of the competition by giving great customer service:

Great customer service can help you stand out from the competition in the water refilling business.

Timely deliveries, friendly interactions with customers, and quick responses to questions will help build a good reputation and encourage customers to come back. Going above and beyond to meet customer needs will give your water refilling station a competitive edge.

Implementing customer loyalty programs:

Setting up loyalty programs, like giving regular customers rewards or discounts, can help keep customers and get them to return to your water refilling station. These programs can also give people a sense of community and belonging, which makes them more likely to tell their friends and family about your business.

Engaging with customers regularly and getting feedback for improvement:

Keeping an open line of communication with your customers is important if you want to keep doing well. Look for good and bad feedback and use it to improve your services and products.

Engaging with customers through social media, surveys, or face-to-face interactions will help you better understand their needs and expectations, leading to a better customer experience and thriving water refilling business.

Navigating Your First Few Months (on the Road to Success)

The first few months of your water refilling business are crucial to building a strong base and setting yourself up for future success. Here are some important steps that will help you get through your first few months:

Focus on quality control .

Ensuring that the water you provide meets high standards is very important. Test your water supply often and keep your equipment in good shape to give your customers safe, clean water.

Build strong relationships with your suppliers.

For your business to get the resources it needs, you must build trusting relationships with suppliers. Ensure you can keep getting materials by negotiating good terms and keeping lines of communication open.

Monitor expenses and manage cash flow.

Keep an eye on your expenses and income to keep your cash flow healthy. Be ready to change your budget and spending habits to stabilize your finances.

Train and motivate your employees.

Invest resources into training your employees to provide exceptional customer service and perform their job duties proficiently. Regularly inspire and support your team to cultivate a positive work environment and enhance productivity.

Evaluate your marketing efforts.

Check how well your marketing is working. Look at how well your marketing plans work and make changes as needed. You may need to try different advertising channels or promotional offers to determine what works best for your target market.

Be ready for challenges.

Starting a new business comes with its fair share of difficulties. Be ready to face problems and find creative ways to solve them. Keep a strong, determined mind to learn from each challenge to grow your water refilling business.

Final Thoughts

Starting a business as a water refilling station in the Philippines can be profitable and fun.

You can build a successful business that meets the needs of your community by doing a lot of research, making a good business plan, and putting customer service first.

Remember that the key to success in this industry is being able to change and grow as you face challenges and seize opportunities.

Don’t be afraid to jump into the world of water refilling stations. You can make a big difference in your community and do well financially if you are determined and work hard.

About the author 

Yesh Quijano

Yesh Quijano is an entrepreneur and digital marketer who's been in the game for over 11 years. He started several businesses and helped countless others reach new heights. His goal is to make digital marketing for SMEs simple, accessible, and effective. When he's not working, you can find him cuddling with his two cats.

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Start a Water Refilling Business

Quenching the World's Thirst: A Profitable Venture into Water Refilling

WATER REFILLING BUSINESS

Related business ideas, discover your perfect domain, water refilling mini business plan, expected percent margin:, earnings expectations:, actions to hit those numbers:, equipment and installation:, marketing and customer acquisition:, supply and delivery:, cost control:, business operations:, not what you had in mind here are more ideas, grab your business website name, step 1: determine if a water refilling business is right for you, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: name your water refilling business, tips on choosing a name, tips on registering your business name, step 3: obtain the necessary licenses and permits, research local and state regulations, obtain necessary licenses and permits, step 4: secure financing, explore financing options, create a business plan, step 5: find a location, considerations for choosing a location, leasing vs. buying a location, step 6: purchase equipment, types of equipment needed, where to buy equipment, step 7: market your business, step 8: hire employees, considerations for hiring employees, tips for retaining employees, step 9: monitor your business, explore more categories, take the next steps.

Water Refill Station Business Idea Description in 5 W’s and 1 H Format

By henry sheykin, water refill station bundle.

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Are you one of the environmentally conscious, health-conscious, or budget-conscious individuals who are on the hunt for high-quality drinking water while on the go? Well, we've got just the solution for you! Introducing the Water Refill Station business idea, a pay-per-gallon system that brings convenience, affordability, and sustainability under one roof. With strategically located stations in high-traffic areas across major cities in the United States, this innovative concept aims to cater to your needs. Starting in 2024, we plan to have 100 operational stations by 2025, and an impressive 500 stations by 2028. With clean drinking water becoming increasingly crucial in today's fast-paced world, our business idea aligns perfectly with the trend of health-conscious individuals seeking a reliable solution. Join us on this journey towards a healthier, greener future!

Key Takeaways

• The business idea targets environmentally conscious individuals, health-conscious individuals, and budget-conscious individuals.
• The business revolves around a pay-per-gallon water refill station that offers high-quality drinking water.
• The refill stations will be strategically located in high-traffic areas and initially focus on major cities across the United States.
• The implementation of the business idea will begin in 2024, with a target of 100 operational stations by 2025 and 500 stations by 2028.
• The business idea aims to provide a convenient and affordable solution, promote sustainability, and align with the trend of health-conscious individuals seeking clean drinking water on the go.

The hypothetical Water Refill Station business idea aims to target environmentally conscious individuals, health-conscious individuals, and budget-conscious individuals. It is designed to cater to individuals of all age groups and socio-economic backgrounds.

Major Players

• The owners of the business, including the founder(s) and any other shareholders or partners, are crucial players in ensuring the success of the water refill station venture.
• The personnel will consist of trained employees responsible for operating the refill stations, maintaining the filtration systems, and providing customer service.
• Advisors, such as environmental experts, marketing professionals, and financial consultants, will play a role in guiding the business's strategy and decision-making process.
• Customers will be the primary focus of the business. They are individuals who prefer drinking purified water, seek affordability, and are concerned about the environment and their health.
• Competition in the market will include other water refill stations, bottled water companies, and potentially even home filtration systems.

Target Audience

The target audience for this business idea includes:

• Environmentally conscious individuals who prioritize sustainability and reducing plastic waste.
• Health-conscious individuals who value the importance of clean drinking water and seek convenient access to it.
• Budget-conscious individuals who are looking for an affordable alternative to purchasing bottled water or expensive filtration systems.
• Individuals of all age groups and socio-economic backgrounds who are in need of a reliable source of high-quality drinking water on the go.

Your company's name: Please provide the name of your hypothetical Water Refill Station business. This will help establish your brand identity and create recognition among potential customers and stakeholders.

The Water Refill Station business idea is centered around providing a convenient and affordable solution for individuals who prioritize purified drinking water, while also promoting sustainability and catering to budget-conscious individuals. The business aims to achieve these goals by offering a pay-per-gallon water refill station equipped with advanced filtration technology.

What do you want to achieve?

The primary objective of the Water Refill Station business is to provide high-quality drinking water to environmentally conscious individuals, health-conscious individuals, and budget-conscious individuals. By offering a pay-per-gallon system, the business aims to make purified drinking water accessible and affordable for all.

What is your sustainable advantage?

The Water Refill Station business has a sustainable advantage as it focuses on reducing the consumption of single-use plastic bottles. By encouraging customers to refill their own water bottles instead of purchasing new ones, the business contributes to the reduction of plastic waste and promotes a more sustainable lifestyle.

What do you offer?

The Water Refill Station business offers a convenient and cost-effective solution for individuals who desire access to purified drinking water. Customers can bring their empty water bottles to the refill stations and refill them with high-quality, purified, and filtered water. The pay-per-gallon system ensures that customers only pay for the amount of water they need, reducing wastage and saving money.

What do you produce?

The Water Refill Station business produces access to purified and filtered drinking water. By utilizing state-of-the-art filtration systems, the business ensures that customers have access to high-quality water that meets their health and safety standards. Through its refill stations, the business produces a more sustainable approach to drinking water consumption, reducing the reliance on single-use plastic bottles.

What are your business objectives?

The short-term objective of the Water Refill Station business is to establish at least 100 operational refill stations across major cities in the United States by 2025. The long-term goal is to double the number of stations every two years, reaching a target of 500 stations by 2028. Additionally, the business aims to generate revenue through the pay-per-gallon system and attract a wide customer base through competitive pricing.

The pay-per-gallon water refill stations of this business idea will be strategically located in high-traffic areas to maximize customer convenience and accessibility. The initial focus will be on major cities across the United States, including New York City, Los Angeles, Chicago, and Houston.

Target Audience Location

The target audience for this business idea encompasses environmentally conscious individuals, health-conscious individuals, and budget-conscious individuals. These individuals can be found in various locations across the United States, from urban areas to suburban neighborhoods. By strategically locating the refill stations in high-traffic areas, we aim to cater to individuals of all age groups and socio-economic backgrounds.

New Opportunities Location

As the business expands, there will be new opportunities to explore additional cities and regions in the United States. These opportunities will be identified through market research, analyzing customer demand, and identifying areas with a high concentration of environmentally conscious and health-conscious individuals. By continuously evaluating market trends and feedback from customers, we will be able to identify new locations for potential refill stations to meet the growing demand for clean and affordable drinking water.

The Path to Success

The implementation of this business idea will begin in the year 2024, with the aim of having at least 100 refill stations operational across various cities by 2025. To achieve this, the company will strategically partner with existing businesses in high-traffic areas such as grocery stores, gas stations, and public parks. By leveraging these partnerships, we can quickly establish a presence in key locations and capitalize on the existing customer footfall.

Once the initial phase is successful, the company will focus on doubling the number of stations every two years. By 2028, the target is to have 500 refill stations operational across the United States.

This growth plan will involve extensive market research and analysis to identify new locations with high demand. We will also seek out opportunities to collaborate with local environmental organizations and health and wellness influencers to enhance brand visibility and attract a wider customer base.

In order to seamlessly navigate the path towards expansion, we will establish a dedicated team to handle operations, logistics, and maintenance. This team will work closely with the filtration system manufacturer to ensure regular maintenance and water quality checks for all refill stations.

Additionally, the marketing efforts will include targeted digital advertising campaigns, creating partnerships with local businesses and organizations, and leveraging the power of social media to reach our target audience. By continuously evaluating customer feedback and staying adaptable to changing market trends, we will ensure the successful growth of the business and establish a strong brand presence in the market.

Overall, the journey from the current stage to the envisioned future of the business will involve strategic partnerships, continuous evaluation, and an unwavering focus on customer satisfaction. This will enable the pay-per-gallon water refill station business to thrive and provide a convenient, sustainable, and affordable solution for individuals seeking access to high-quality drinking water.

In the year 2024, the implementation of this innovative business idea will commence, marking the start of a new era for environmentally conscious, health-conscious, and budget-conscious individuals. It is during this year that the first pay-per-gallon water refill stations will be strategically positioned in high-traffic areas, such as grocery stores, gas stations, and public parks.

By 2025, the ambitious goal is to have at least 100 operational refill stations across various cities in the United States, including New York City, Los Angeles, Chicago, and Houston. These cities will serve as the initial stepping stones towards creating a nationwide network of refill stations that cater to individuals of all age groups and socio-economic backgrounds.

The expansion plan is an integral part of this business venture, aiming to double the number of refill stations every two years. By the year 2028, the target is to establish an impressive network of 500 refill stations nationwide, ensuring accessibility to purified and filtered water reaches even the most remote areas.

The short-term objective of this business idea is to establish a robust foundation by successfully operating 100 refill stations by 2025. This achievement will demonstrate the viability of the concept and its potential to transform the way people access clean drinking water.

Beyond the initial phase, the long-term objective is to continue expanding the network, reaching out to a broader customer base, and promoting sustainability on a larger scale. By increasing the number of refill stations every two years, the aim is to reach the target of 500 stations by 2028, ensuring that the benefits of affordable, high-quality drinking water are accessible to all.

Retirement and Departure Strategy:

As for retirement plans, the vision for this business idea encompasses its long-term growth and positive impact, extending beyond personal retirement. The objective is to establish a stable and successful business that can be passed on to a new generation of entrepreneurs or sold to a like-minded, environmentally conscious entity.

With an ambitious timeline in mind, the plan for retirement and departure from the company is envisioned to occur in the year 2040, approximately 16 years after the initial implementation. By this time, the business would have firmly established its presence, positively impacted communities, and made significant strides towards reducing plastic waste and providing affordable access to clean water.

When the time comes, the departure strategy will ensure a smooth transition through careful planning and seamless handover to new owners or successors. This will ensure that the business continues to thrive, safeguarding the vision and principles that were initially set in motion.

The Water Refill Station business idea aims to meet the needs of environmentally conscious individuals, health-conscious individuals, and budget-conscious individuals. By providing a convenient and affordable solution for accessing purified and filtered water, this business idea addresses the concerns and preferences of a wide range of individuals.

Why would customers want your product or service?

Customers would want to utilize the pay-per-gallon water refill stations because it offers them the opportunity to refill their empty water bottles with high-quality drinking water at a nominal cost. Rather than investing in expensive filtration systems, customers can conveniently access purified water whenever and wherever they need it. This solution is not only affordable but also ensures that customers have access to clean drinking water on the go.

Why are you in business?

We are in business because we believe in the importance of providing a sustainable and healthy alternative to single-use plastic bottles. By offering a pay-per-gallon water refill service, we contribute to reducing plastic waste and promoting environmental sustainability. We prioritize the well-being of our customers and strive to make purified drinking water easily accessible for everyone, regardless of their budget or lifestyle.

Why would a buyer want to purchase from you? Describe how you differ from the competitors.

Buyers would choose to purchase from our Water Refill Stations due to our commitment to quality, convenience, and affordability. Our stations will be equipped with state-of-the-art filtration systems, ensuring the purity and taste of the water. We strategically locate our refill stations in high-traffic areas, making them easily accessible to customers. Furthermore, our pricing is set competitively to attract a wide customer base, making it more affordable compared to purchasing bottled water frequently. Our emphasis on sustainability and our dedication to customer satisfaction sets us apart from our competitors.

Why are you in this line of work? Make sure to include your company’s mission statement as well.

We are in this line of work because we believe in making a positive impact on the environment and the well-being of individuals. Our mission is to provide a sustainable and affordable solution for accessing clean drinking water. We are passionate about reducing plastic waste and promoting environmental consciousness. By offering high-quality filtration systems and strategically located refill stations, we aim to make clean water easily accessible to everyone while minimizing the ecological footprint. We are committed to delivering exceptional value to our customers and contributing to a healthier and more sustainable future.

When it comes to the structure of the Water Refill Station business, we have decided to establish a limited liability company (LLC). This structure offers several benefits that align with our business goals and objectives. As an LLC, we have the advantage of limited liability protection, which means that our personal assets are protected from the company's liabilities. This is crucial as it helps mitigate risks that may arise in the operation of the refill stations. Additionally, an LLC provides flexibility in terms of management and tax options, allowing us to optimize our operations and financial strategies.

In order to ensure a smooth registration process and to navigate the legal complexities associated with setting up and operating the business, we plan to engage a business attorney experienced in small business law. This advisor will be instrumental in guiding us through registration procedures, ensuring compliance with regulations, and understanding any potential liabilities that may arise. Their expertise will be invaluable in setting up a strong legal foundation for our business.

Attaining Company Objectives

To achieve the objectives we have set for our company, we recognize the need to hire a proficient team that will assist us in managing various aspects of the business. This team will consist of individuals with expertise in operations, marketing, finance, and customer service. By bringing together a diverse group of professionals, we aim to leverage their skills and knowledge to drive the success of our water refill stations across different locations.

The steps we will take to achieve our objectives include:

• Market Research and Analysis: Conduct extensive market research to identify ideal locations for the refill stations and to understand the preferences and needs of our target customer segments.
• Infrastructure Development: Collaborate with experts in filtration technology to design and implement state-of-the-art water purification systems that ensure high-quality drinking water.
• Partnerships and Collaborations: Establish strategic partnerships with local environmental organizations and health and wellness influencers to create awareness and promote the benefits of using refill stations.
• Operational Excellence: Implement robust systems and processes to ensure smooth and efficient operations of the refill stations, including remote monitoring for maintenance and water quality checks.
• Marketing and Advertising: Develop targeted digital advertising campaigns and engage in community events to build brand awareness and attract a wide customer base.

Future Business Development

Our vision for the Water Refill Station business is to become the go-to solution for individuals seeking convenient and affordable purified water while promoting environmental sustainability and health-conscious living. We envision a future where our refill stations are not only prevalent in major cities across the United States but also expand to other countries where there is a demand for clean drinking water solutions.

As we progress, we aim to continuously innovate our water purification technology to enhance the quality and taste of our water. We also plan to explore additional partnerships with organizations focused on sustainable packaging alternatives, such as biodegradable water bottles, to further minimize the environmental impact of the refill station industry.

By staying true to our mission and keeping customer satisfaction at the forefront of our operations, we strive to create a brand that is synonymous with trust, convenience, and environmental responsibility in the field of purified water access.

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Financial modeling spreadsheets and templates in Excel & Google Sheets

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Water Refilling Station Business Financial Model

This financial model aims to develop a thorough business plan of 5 years monthly forecast to analyze the financial feasibility and profitability of starting a Water Refilling Station business.

Based on bottom-up assumptions, planning begins by determining up to three bottle sizes and their respective water volume. Target sales of water bottles per month assumptions are allocated to the water bottle sizes. From the water bottles sold, the expected number of customers can be calculated and used to determine another source of income, such as the sale of merchandise.

Other key assumptions include the project timeline, CAPEX schedule, uses and sources of funds, sources for debt financing, and the costs and expenses of a water refilling station business. These assumptions are then translated into a detailed monthly financial plan of 5 years that allows the potential business owners and management to see how the water refilling station business will perform from a financial perspective over the following years.

Relevant data calculated, such as the financial metrics – IRR, Funding Period, Payback Period, and NPV, in this financial model template are presented in various charts and tables that allow an easy understanding of the feasibility of the water refilling station business.

What makes this Water Refilling Station Financial Model Template Exceptional?

The following are the reasons why you should choose this in starting up a water refilling station business:

• Flexible Operations: This financial model is formulated to start calculation from the users’ selected year or months the operations, CAPEX funding, debt financing, and debt repayments will commence or end.
• Monthly CAPEX Schedule: CAPEX items are allocated in Years 0 and 1 through percentages and can be invested in the selected month/s for Year 1. The maintenance for the CAPEX items are also added at a scheduled selected month.
• Monthly Debt Schedule: The schedule for the drawdown of debt may start and end at specified months. Payment for the debt can be made monthly or annually for years, beginning at the selected year and month.
• Detailed Monthly Financial Plan:  The spreadsheet is designed comprehensively and logically, outlining the calculations of revenues and costs, which adds to the transparency and understanding of the model.
• Consumer Demand Analysis:  This allows users to analyze the market share and size of the service area where the water refilling station is located.

Water Refilling Station Business Model Template Structure

The financial model is simply structured which allows users to run simulations by varying the input assumptions. The elements of this financial model template are enumerated below:

Instructions and Terms  contain the cell color codes and the terms and abbreviations used.

Executive Summary presents the charts and graphs to understand the business plan for Water Refilling Station better and to answer significant questions such as:

• Is a water refilling station business profitable?
• What are the costs and expenses of water refilling business?
• Is the demand for water in the location of the business met?

These spreadsheets include a 5-year monthly and yearly summary of the following:

• Overview of Projected Financial Statements for a Water Refilling Station business – Income Statement, Balance Sheet, and Cash Flows Statement.
• Levered and Unlevered Free Cash Flows calculating key financial feasibility metrics such as the Internal Rate of Return (IRR), Payback Period, Net Present Value (NPV)
• Uses and Sources of Funds, and Debt Financing
• Forecasted Business Valuation
• Revenue and Number of Water Bottles Sold
• Consumer Demand Analysis

Detailed Summary  presents the selected year overview of the monthly plan, consumer demand analysis, and break-even analysis in charts and graphs.

Assumptions that will translate this financial model into a business plan for Water Refilling Station:

• Financial Forecast
• Default Business Days per Month
• Income Tax Rate
• Net Working Capital
• Year and Month of the Start of Operations
• Beginning Percentage of the Sales of Water Bottles
• Duration to Reach 100% Target
• Water Bottle Sizes and Volume
• Target Sales of Water Bottles
• Seasonality of Water Bottles Sales
• Average Water Bottle Purchase per Customer
• Price for Water Bottles and Other Income Assumptions
• Direct Costs
• Employee Positions and Expenses
• Operating Expenses
• CAPEX Items and Depreciation Period
• Spending Schedule and Funding Injection
• Maintenance CAPEX Rate and Schedule
• Cash Reserve and Net Working Capital
• Source of Debt, Amount and Period
• Drawdown Schedule
• Payment Term and Repayment Schedule
• Investment Period
• Discount Rate
• Exit Valuation Multiple
• Service Area Location and Radius
• Population and Average Household Size
• Water Consumption Demand

The Monthly worksheet contains the comprehensive operational forecasts for a Water Refilling Station Business:

• Water Bottles Sales Revenue
• Required Water Volume in Gallons
• Number of Customers
• Other Income – Merchandise Sales and Other specified Income
• Daily Analysis – Water Bottles Sold, Expected Number of Customers, Revenue and Required Market Size
• Costs and Expenses in Water Refilling Station – Direct Costs, Employee Expenses and OPEX
• Fixed Assets Schedule – Initial CAPEX, Spending Allocation, Maintenance and Depreciation
• Debt Schedule Summary – Drawdown and Repayment
• Financial Projections – Income Statement, Balance Sheet, and Cash Flow Statement
• Free Cash Flow Forecast
• Monthly Funding Required

Yearly contains the comprehensive overview of the 5-year financial forecast planning the feasibility of the Water Refilling Station Business:

• Financial Statements – Income Statement, Balance Sheet, Cash Flow Statement
• Financial Ratios and Standardized Income Statement
• Unlevered and Levered Free Cash Flows Statement, Funding Required and Financial Metrics
• Equity Funding

Break-Even Analysis shows the calculations of break-even at selected year at an EBIT level to answer the following:

• How many Water Bottles are needed to be sold to reach Break-Even?
• What is the Average Fee for Water Bottles to reach Break-Even?

This sheet also shows a simple break-even sensitivity analysis.

Start your own Water Refilling Station Business now!

Developing a well-prepared and comprehensive financial projection can clarify the possible profit margins, the funding required, and the expected returns. This detailed and exceptional financial model template contains valuable tools that allow potential business owners to analyze the financial plan of starting a water refilling station business in detail by testing various scenarios and assessing how it affects the project’s viability.

The current model version 1.4, is available in two Excel versions and a PDF Demo Preview:

• Excel Version – Consists of sample figures in the assumptions
• Excel Null Version – No values in the assumption sheet
• PDF Version – Outlines the details of the model structure

File types: .xlsx (MS Excel) .pdf (Adobe Acrobat Reader)

•   Full Excel Version  –  $89.95 Version 1.4
•   Full Excel Null Version  –  $89.95 Version 1.4
•   PDF Version  –  $0.00 Version 1.4

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H2O Industries

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H20 Industries, Inc. (H20 Industries) provides the service of ion exchange portable tanks. This is the process of purifying water for industrial purposes. H20 Industries will take advantage of an unsatisfied market need for segregated resin regeneration on a portable basis. The company will primarily focus its marketing strategies on offering segregated regeneration services to the untapped market of customers who require high-quality regeneration for their deionized (DI) water treatment facilities. The facility that H20 Industries will utilize is located in Newark, California and is already in limited production. Full production will begin at the end of September, with sales growing gradually to near capacity by the end of the first year, with very healthy gross sales in the first year, and increasing in the second and third years.

1.1 Objectives

The primary objectives are:

• To segment the market for portable regeneration service by stressing H20 Industries’s capability at providing segregated regeneration. The goal is to reach monthly sales of 1,710 cu ft of segregated resin by the end of the first year.
• To build up a dealership network of 15 knowledgeable and efficient water service companies who will represent H20 Industries in areas outside direct sales from the factory.
• To set up a bulk regeneration facility with a capacity of 40 cu ft daily, and sell its full capacity in the large general portable exchange service market through its own sales force, and through a dealership network.

1.2 Mission

H20 Industries’s mission is to segment the market for pure water by providing niche products to specialized industry sectors who are otherwise not properly serviced by large pure water suppliers. Segregating a customer’s H20 Industries resin and regenerating it on a portable tank basis to hospital dialysis units is an excellent example of such a niche product that stresses quality and service to users who are prepared to pay a premium price.

1.3 Keys to Success

H20 Industries’s primary keys to success are:

• Good quality control in the factory . Customers for high purity water business have a very low tolerance threshold for flaws.
• Fast response . In the case of most of H20 Industries’s customers, the cost of the water is not a major element in their over-all costs, but a very expensive shut-down could result due to poor or slow servicing.
• High-profile allegiances . Key to over-all company success is connected closely with success in achieving the goal of developing a dealership network of service-oriented water companies.

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H20 Industries took over a customer base and a small quantity of assets from a predecessor company. By moving to a new location with more space, and by designing an efficient productive capability, H20 Industries will be ready to aggressively penetrate the growing market for portable DI exchange by October 1999.

2.1 Company Ownership

H20 Industries was established in October 1998 through the purchase of the assets of Commercial Waters Systems, Inc. (CWSI). CWSI was an under-capitalized, cash flow-starved DI exchange tank service provider. Three hundred sixty of the shares of H20 Industries are owned by David R. Smith, vice president sales and applications of PROSYS, a large manufacturer and system designer of water treatment equipment. Five hundred sixty of the shares are owned by John Jones who is regional sales manager for DUFF. The remaining 200 shares are currently held by the daughter of the seller, but are expected to soon be transferred to the new owners.

Additional investors have expressed a willingness to invest. This would help bring in needed administrative expertise, while also increasing the equity base.

2.2 Start-up Summary

Assets of a former operating company were bought out and customers of the former company continue to be serviced by the purchasing company, H20 Industries, partly from continuing operations and partly from farming regeneration work out. However, this plan is being written as a start-up primarily because there are no reliable financial figures for prior years for comparison purposes, and partly because of the move to new facilities and the sizable investment in new plant and equipment involved. Due to certain misrepresentations by the seller, the agreed sales price is under protest. It is expected that the matter will be satisfactorily resolved by payment of a much reduced amount.

The chart and table below summarize the start-up requirements for H20 Industries.

2.3 Company Locations and Facilities

The facilities are located in a rented building on an industrial estate in Newark, California.

A description of the technology involved in the production can be found in section 3.5 (Technology). The following is a description of the production layout.

• City water is fed into the building and goes directly to a carbon filter tank to remove organic materials and chlorine.
• A centrifugal pump is installed, in the unlikely event that city water pressure falls below 40 pounds per square inch (psi).
• A hot water boiler is provided to supply hot water (100 degrees F) from part of the incoming city water. This water is needed for anion treatment due to the specific gravity of the caustic material.
• The heated water then passes through a cation and an anion filter tank.
• The deionized hot water goes to the caustic tank where it mixes with the caustic material used to regenerate at the anion pad.
• Part of the unheated incoming city water is deionized by passage through similar cation and anion tanks. These tanks, as well as the tanks deionizing the heated in-coming water, are regenerated automatically at night when production is shut down.
• Water, not H20 Industries, is used at the spent tank staging area to empty the incoming tanks into the separation cones, and more water (H20 Industries) goes to the cation regeneration pad for use in adduction as well as flushing of the regenerate.
• The rinse water, as well as the acid and caustic solutions, now pass into an 8,000-gallon blue tank where, with the help of compressed air for mixing, neutralization takes place to obtain the allowed Ph level.
• A 500-gallon neutralization tank and a 250-gallon polishing tank are provided prior to disposal of the waste water into the city sewer system.

Products and Services

The company is in the water purification business. H20 Industries is engaged in a specific branch of this business called “Service deionization.” Within this branch, the company plans to emphasize a further service specialization known as “segregated regeneration,” as opposed to “bulk regeneration.” This concept is explained in the following sections.

3.1 Product and Service Description

The service products offered by H20 Industries are segregated as well as bulk regeneration of portable H20 Industries exchange tanks. The service is offered in three tank sizes of 3.6, 2.5, and 1.4 cubic feet (cu ft). In these sizes, the company will offer:

• Mixed bed (combination of anion and cation regenerated resin)
• Cation regenerated resin
• Anion regenerated resin
• Carbon (used for pre-filtering)

The application of portable deionized water is broad. Practically all industries using water in processing are potential accounts. Size of company is rarely a determining factor. There are applications in electronics and high pressure boilers where flow rates of several hundred gallons per minute are provided by portable exchange systems. The main unique benefits are:

• The client does not have to incur substantial capital costs to install an in-house deionization plant. This could run over $50,000. The company can merely rent the portable tanks (or buy them for approximately $1,200 each) and pay for the regeneration service when the tanks become depleted.
• The company also saves by not needing experienced technicians to maintain an in-house plant.
• Space is another important factor. An in-house H20 Industries capability requires a great deal of space, whereas a portable tank system using flexible hose connections can fit virtually anywhere in minimal space.
• Ease of installation. H20 Industries capability can be arranged virtually in a day and can be easily expanded to accommodate growth.
• There are no chemicals, nor regenerate waste to be handled or concerned with on-site..
• Flexibility in water quality provided. Resin types can be easily changed in tanks if water quality requirements change.
• Even locations that have their own in-house H20 Industries system often use portable DI as a back-up since a shut down can be very expensive.

Providing the service to a customer is simple, usually requiring only minimal equipment. H20 Industries is available from a large competitor, US Filter and a few small competitors, such as Fluid Solutions of Lowell, MA. However, none of the competition can provide segregated regeneration (See Competitive Analysis below).

3.2 Competitive Comparison

In the Northern California area, outside of a small company in Lowell which has to farm out its regeneration business to a “DI” company in Nevada, Simply Clean in Oregon, and a couple of independent Culligan agents, there is only the very large, fully-integrated US Filter (owner of Culligan) to compete with. This company, by virtue of its size and involvement in all fields of water treatment, is not suited to satisfying small users of DI, nor are they able to respond to niche needs. For example, US Filter cannot handle segregated resin. All resin treated by US Filter is regenerated on a bulk basis, which means that various customers’ depleted resin tanks are combined. This is not a problem for many users of DI, but the dialysis department of a hospital might well object to their resin being co-mingled with resin used in the metal plating industry. H20 Industries plans to specialize in portable segregated resin service. US Filter can try to service customers with a desire for segregated DI by promising to always supply tanks with new resin, however, there are technical problems with this.

US Filter’s prices for cation and anion regeneration are $31.25/cu ft and mixed bed $43.05/cu ft. H20 Industries’s prices for the same bulk regeneration are $32 and $43, respectively. The primary market thrust of H20 Industries’s sales will be the segregated regeneration which US Filter does not offer. This product sells at a premium ($57/cu ft and $63/cu ft, respectively). Some small players in the market offer regenerated resin (not segregated) in a price range of $63 to $80 per cu ft (mixed bed).

3.3 Sales Literature

Sales literature will be written and printed. A provision for this has been made in the projected sales and marketing expenses.

3.4 Fulfillment

The service provided by H20 Industries is the regeneration of ion exchange portable tanks. The tanks themselves are supplied to customers on either a monthly rental basis or offered for sale. These tanks, and any other hardware, are readily available from a number of suppliers. By virtue of the owners’ long involvement in the industry, they are fully knowledgeable of existing sources for all hardware, including resin, as well as the supply of the two major chemicals used in the process of regeneration. The only other variable cost of production is the salt used in the brine bath, this is also readily available from a number of suppliers.

3.5 Technology

Ion exchange is a major means of purifying water for industrial purposes. The degree of purity depends on the source of the water and it’s use. Companies, ranging from car washes to the pharmaceutical and semiconductor industries all need various amounts and degrees of purified water. Ion exchange is a chemical process by which ions, or ionic substances that are considered “undesirable” in water, are reduced or removed from water by use of ion exchangers or resins. Most ground water contains unwanted dissolved substances, such as calcium and magnesium, whose molecular structure contain charged ion particles.

The most common impurities with ions of a positive charge are: sodium, calcium, magnesium, potassium, iron, and manganese. These are called cations.  The unwanted dissolved substances having negative ion charges, known as anions, are: bicarbonate, chloride, carbonate, sulfate, nitrate, and bisilicate. When a substance separates into ions, each ion is now able to combine with another ion with opposite charge, even if that ion is from a totally different type of molecule. Substances only separate into ions when immersed in water molecules. For example, a molecule of hydrochloric acid is made up of a hydrogen atom and a chloride atom. Hydrochloric acid (HCL), when immersed in water, will split apart into one positively charged hydrogen cation (H+) and one negatively charged chloride anion (CL-). If sodium hydroxide (NaOH) were added to this solution, the NaOH would split into Na+ and OH-, which would combine with the opposite charges of the hydrochloric acid ions to form sodium chloride, better known as “table salt” (Na+CL-) and leftover hydrogen and hydroxide atoms (H+OH-). The field of deionization, known as DI for short, utilizes this natural phenomenon by designing a cation exchange resin which will substitute hydrogen atoms (H+) for virtually all of the other cations, and designing an anion exchange resin which will substitute hydroxyl ions (OH-) for virtually all of the other anions. By means of this process we end up with only H+ and OH- which is equivalent to H2O (water). By forming this demineralized water, we create water which is no longer a conductor. We can measure the purity using an ohm meter. Ohms measure resistance. The higher the ohm count, the lower the conductivity. H20 Industries is routinely formed to 18 mega ohms per centimeter, which is very close to zero conductivity (18.23 at 25 degrees Centigrade). Without giving lengthy chemical explanations, what happens in the process is as follows:

• City tap water is first passed through a carbon filter to remove chlorine, sand, and other unwanted substances. Sometimes, reverse osmosis and ultraviolet light are used to remove non-ionized substances, organic materials, etc., prior to the deionization stage.
• The water then passes into a specially-treated cation resin. This resin takes the form of small beads located inside a tank. The positively charged ions from the unwanted dissolved minerals will attach themselves to the resin. This happens because the resin contains an over-equilibrium abundance of hydrogen ions (H+) which are “bumped off” of the resin beads and replaced by the positively-charged, unwanted, in-coming cation ions. The “bumped off” free hydrogen ions then pair up with anions which are left in the water to form acids.
• The “de-cationized” water then passes to a tank of anion resin to catch the unwanted negatively charged ions that have dissolved in the water. Here, the anions and the anion portions of the acids attached to the hydrogen are attracted to, and held by, the positive sites on the anion exchange resin beads. They do this by kicking off the negative hydroxyl ions that were put on the beads (again in over-abundance). The leftover hydrogen portions of the acids (H+) now join the freed hydroxyl ions (OH-) to form water (H2O).
• If a very high degree of purity is called for, the water will next pass into what is called a “mixed bed” which normally contains resin in a ratio of one part cation resin to two to three parts anion. Steps 1-3 occur again here thus catching the last traces of unwanted ions of the dissolved substances.
• The tanks of resin will continue to purify the water flowing through them until the resin balls expand and their capacity to catch ions is depleted.
• The water flow must stop until the tanks are replaced with tanks containing regenerated resin.
• To regenerate the cation resin, a solution of acid is used to bombard the resin removing all the previously-caught positively-charged ions. Then the tank is flushed to remove any excess acid. The anion resin tank is also given a caustic solution to bombard the previously-caught negative ions. The anion resin is then flushed to remove any residual caustic solution.
• The tanks now contain regenerated resin and the ion exchange process can continue with the tap water turned on.

The regeneration process can take place at the location where the water is being purified, however, most users of H20 Industries do not install the expensive equipment to do this but simply arrange for a service provider, such as H20 Industries, to replace the tanks and perform the regeneration process off-site.

As high-tech industries, such as electronics, communications, and pharmaceuticals, continue to grow, there will almost certainly be increasing use of deionization technology and deionized water. As instrumentation and analysis procedures improve, controlling and monitoring the deionization process will be easier and more efficient, and this will, undoubtedly, help create new uses for deionization that have not yet appeared, as well as make H20 Industries more affordable to sectors now using other methods of purification. As more people in the water treatment industry become familiar with the DI process, the industry for H20 Industries and equipment will benefit.

3.6 Future Products and Services

In addition to bulk and segregated portable H20 Industries, the company plans to expand sales of filters and DI cartridges. These sales have been disregarded in this business plan, but they could become more significant in the future. These products lend themselves to mail order type sales, as they are small and lightweight. Cartridges are disposable items. H20 Industries also has plans to develop a reusable shipping container for its smallest (8″ x 18″) DI exchange tank so that this can also be shipped via UPS. This product will be marketed on a website, as well as through conventional direct mail and yellow page advertising.

In the future, a logical off-shoot of the DI business is reverse osmosis (R/O) used in conjunction with DI exchange tanks. The inclusion of R/O in front of the DI tanks will extend the capacity of an exchange tank by 1000%. This addition to the product line could become a substantial element of total company sales.

Reverse osmosis and electric reversing deionization are beginning to compete with exchange tank DI technology. H20 Industries plans to offer service contracts to maintain this equipment at the customer’s location. This equipment may to either sold or leased.

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The total market in Northern California for H20 Industries is between 670,000 and 925,000 cu ft of resin annually. H20 Industries’s total productive capacity will be only 36,400 cubic feet, or 3.9-5.4%. Since H20 Industries will have the unique capability of performing segregated regeneration, which is of special interest to the medical industry (dialysis, labs and pharmaceutical), the company will emphasize sales efforts in this segment for high purity H20 Industries. This segment is estimated at 167,000 cu ft annually. Next in terms of marketing emphasis will be the electronic (223,000 cu ft) and machine tool industries.

4.1 Market Segmentation

The market for H20 Industries encompasses many industries, and within them there is a wide range of purity needs. At the low end, a car wash might use H20 Industries in the final rinse only. Their need for purity might be only .5 Megohms (Ohms measure resistance). Water is only a good conductor because of the quantity of dissolved solids in the water. As the ion exchange process lowers the level of total dissolved solids (TDS) the resistance, measured in ohms, increases.

A purity level of .5 Megohms is pure enough for a car wash final rinse cycle, but not even close to pure enough for a electronics wafer manufacturer. They would need 18 Megohms, at which point the water would be pure and incapable of acting as a conductor. Generally speaking, those sectors of the market that need the highest levels of purity are the customers for H20 Industries’s main niche product of segregated DI exchange service. This means that the resin coming back from the customer is never mixed with any other company’s resin. This is a very strong sales feature when dealing with dialysis units of a hospital, labs and pharmaceutical manufacturers, and electronics makers. These customers are happy to pay a premium over the price charged for bulk DI regeneration service because they do not want their resin co-mingled with resin coming from a metal plater or a car wash.

Quantifying the market for segregated portable H20 Industries is not easy. Unlike the market for used cars, metal furniture, or nearly every product one can think of, there are no readily-available statistics on the market for portable DI exchange. There is overwhelming agreement that US Filter has the commanding market share of DI exchange business, opinions range from 85 to 95% majority.

According to the publisher of ULTRAPURE WATER®, (May-June 1999 volume 16, number 5) US Filter had sales of $1 billion in 1990, and has grown to $5 billion in 1999. Portable DI exchange is only a small portion of their business. Sales in Northern California of only DI portable exchange is estimated at $25 million. This has been confirmed from several sources. Firstly, one of the owners of H20 Industries is a former employee of US Filter. In 1996, their DI exchange business reached $12 million. This was only 65% of the market. Then the company acquired Culligan, adding another $8 million in portable DI exchange business in Northern California, and bringing the total to $20 million. It is assumed that sales have grown to $25 million over the past several years.

The relationship between input water and DI exchange capacity is charted. Assuming in-coming water quality of 200 parts per million of TDS in the far left column, a 3.6 cu. ft tank of regenerated resin can handle 10,800 gallons. This means that an average user with a flow rate of 10 gallons per minute would use up a 3.6 cu ft tank in 2.57 days, or 1.4 cu ft per day. Assuming the salesman was accurate in his statement of 2,000 customers, this would work out to 840,000 cu ft of regenerated portable DI exchange business per year. This figure is somewhat greater than the figure of 610,000, however, the subject of this business plan, H20 Industries, will have a productive capacity of only 140 cu ft per day, which represents between 4.5% and 6.3% of the total market in Northern California.

Taking the midpoint estimate for the total Northern California market of 780,000 cu ft annually, these high purity users would represent a market 558,000 cu ft

Hospital Dialysis Units and Stand alone Clinics:

California lists 16 stand-alone dialysis clinics, many of whom have multiple locations with varying numbers of stations. Every dialysis clinic, as least in Michigan according to BESCO, use H20 Industries for polishing, after initially running the water through a reverse osmosis system. Hospitals also have dialysis units. In addition, there is blood analysis work which is normally done using “wet” analysis equipment that requires H20 Industries. Assume this sector represents only 10% of the high purity market, or 55,000 cu ft annually.

Labs and pharmaceutical Manufacturers:

A list of labs and pharmaceutical makers in Northern California contains 330 names. A sample calling indicated that some use no pure water, others use such small qualities (10 gals/months) that they buy the water from suppliers like Hubbard-Hall, already made up. Others use so much H20 Industries that they have their own built-in DI system. The rest who have flow rate needs of between one and 20 gallons per minute are in the range most economically serviced by portable DI exchange. Assume this to represent 20% of the 558,000, or 112,000 cu ft.

Electronic Manufacturers:

Semiconductor manufacturers and other makers of electronic components need pure water to flush with. As microprocessors use wafers of ever-decreasing size, the requirements for pure water to rinse with increase, as do various other additional micro filtering. A list of electronics manufacturers in Northern California names 189 makers. Assume this sector represents 40% of 558,000, or 223,000 cu ft.

Machine Tools and Parts:

This is one of the fasting growing sectors as more and more manufacturers conform to the ISO 9000 standard, which requires delivered parts to be clean (defined as rinsed thoroughly with water of one Megohm purity or better). This category includes a need for H20 Industries in machines consuming cutting oil, any machine with cooling systems, and other uses. Assume this sector represents 30% of 558,000, or 167,000 cu ft.

This sector of the market will represent the market for DI exchange water lower than one Megohm in purity. Assume that the following industries take up the remaining 30% of the total market. Some industries that would be included in this “other” category would be:

• Car washes need H20 Industries for the final rinse
• Food and beverage industry would use it for improving taste and texture of baked goods, cutting and blending alcoholic beverages, dissolving food colors, etc.
• Cosmetics industry needs it for the production of shampoo, liquid soaps, cold creams, hand lotions, nail polish remover, permanent waving solutions, rubbing alcohol, and hydrogen peroxide.
• Electroplating industry utilizes H20 Industries in anodizing, electro-tinning, rinsing, rust proofing, and actual plating with various metals such as nickel, copper, silver, and chromium.
• Ceramics industry requires it to control pH in preparation of slips and glazes, rinsing clay pieces, producing enamel.
• Textile industry uses H20 Industries insteam irons and other steaming equipment, humidification systems, as well as rinsing, dying and bleaching processes.
• Railroad industry for high pressure boilers, cooling systems and storage batteries and for many applications where steam is used)
• Others, such as applications for grinding optical lenses, silvering solutions for mirrors, manufacturers of blueprint paper, manufacturers of ice, humidification of gas supplies to superchargers of high speed aeronautical engines, growing orchids, etc.

The chart and table below summarize the total market potential for the DI exchange services in Northern California.

4.2 Target Market Segment Strategy

The target markets that will receive the most attention will be the sectors which require the highest levels of pure water. This means the 70% of the market that wants quality of one Megohm or better. Within this sector, quantified as 558,000 cu ft annually, H20 Industries will emphasize those users wanting the top echelon of purity (18 Megohms).This sector of the market might be only one third of the 558,000, but even at one third (186,000), it totals more than 300% of H20 Industries’s total capacity, including its bulk portion.

4.2.1 Market Trends

One notable trend in industries is to out-source. Chief financial officers analyze the costs of producing something in-house versus the costs of farming it out. Water purification is no exception. Although many large users of H20 Industries will want to set up their own in-house capacity, the capital costs, the maintenance costs, and the costs of dealing with regenerate waste often make DI portable exchange a more economical solution. Down-sizing within a company with its own pure water manufacturing capability often will lead to a management decision to shut down their in-house plant and switch over to portable service.

Another trend is for more and more industries to need higher degrees of purity in their manufacturing process, which results in an ever-growing market for H20 Industries.

4.2.2 Market Needs

The reasoning behind the attention to the highest purity sector of the market is that H20 Industries is able to provide segregated DI exchange service. A customer’s in-coming tanks for regeneration are tagged, and after regeneration, the same resin is returned to the customer. This specialized service is a major selling feature over US Filter, who must co-mingle customers’ resin in a bulk regenerating facility. Also, bulk regeneration will not achieve the same deionization capacity as H20 Industries’s segregated method which utilizes more chemicals and longer regeneration times. A customer dealing with blood can easily be sold on segregated resin as he would not feel comfortable that his resin would be co-mingled with resin used in a totally different industry.

In addition to the feature mentioned above, H20 Industries will concentrate on those customers who place a premium on response speed and intensity of service. Again, mainly the higher quality users of H20 Industries exchange, where a shut-down would be very expensive, will demand the highest degree of quality available. Segregated exchange service from a smaller supplier is much more likely to satisfy than a huge conglomerate like US Filter where portable exchange can only be done on a bulk batching basis and represents only a small part of their overall business.

4.2.3 Market Growth

The market growth percentages used in the market analysis table were obtained from various articles appearing in ULTRAPURE WATER®, the definitive journal of high-purity water. Specific articles can be located from an index on their website, www.talloaks.com/.

4.3 Service Business Analysis

The industry for providing portable H20 Industries service is dominated by one very large company–US Filter. US Filter controls between 90 to 95% of the H20 Industries service business in Northern California. The company has grown from $1 billion to over $5 billion in the past six years, primarily through an acquisition binge. The company is now finalizing its sale to Vivendi’s Generale des Eaux water subsidiary which will result in combined sales of $12 billion, making it the largest water business in the world. Originally, US Filter’s primary focus was industrial and high purity water. Its acquisitions in other areas include drinking water, waste water, municipal water, and water supply.

Now, less than 20% of its activities relate to technologies and markets connected with high purity water. A much smaller percentage is connected with H20 Industries, and a still-smaller percentage concerned with DI exchange service. After their merger, the percentage will drop even further from 20% to eight percent. This situation has resulted in a growing dissatisfaction with US Filter’s services for H20 Industries exchange. Both owners of this project have been hearing complaints from US Filter customers for quite some time. This is not just a condition evident in Northern California, other sections of the country have noticed it and competitors to US Filter’s DI exchange business have started to grow.

4.3.1 Competition and Buying Patterns

Users of H20 Industries have had little choice in regards to their provider. It is regenerated on a bulk basis only, with no option for segregated regenerated resin (see section on Market Segmentation). Some small customers have obtained the DI exchange service through their local Culligan man or similar water serviceman who in turn obtains it from US Filter. The fact that some small players in the market can capture some of this DI exchange business from US Filter despite a higher price ($63-$80 per cu ft versus $40 per cu ft from US Filter) is a good indication of the importance that service plays in the buying decision. Rarely does the price of H20 Industries represent a significant variable production cost in a manufacturing process. Much more of a factor is worry about quality level and service response time.

4.3.2 Main Competitors

In reaction to the service complaints of customers for US Filter’s DI exchange, a couple of small competitors have sprung up in Northern California. Fluid Solutions in Lowell is one such company. This company has been supplying customers with H20 Industries exchange although they have no regeneration facilities of their own. They merely service the customers and send the tanks to a regeneration facility of another DI exchange company in Pennsylvania.

The prices charged by all local companies to regenerate are between $63 and $80 per cu ft for mixed bed. They charge $20 to $30, depending on tank size, as a monthly rental charge.

The market in Northern California is ripe for growth in competitors to US Filter which does not provide segregated regeneration and whose regenerated resin, on a bulk batch basis, will not serve as high a flow rate as non-bulk regeneration.

4.3.3 Business Participants

Industry participants are varied, as there are several means of obtaining purified water. There are companies which design and engineer reverse osmosis equipment. This equipment has a sizable share of the water market at the end close to the municipal water inlet. Reverse osmosis (R/O), in conjunction with carbon filtering and ultraviolet light, is used (for example in dialysis) to bring the TDS down to a lower level. Ion exchange, either fixed or portable, is then used to polish away the remaining impurities. Other companies may supply e-cell equipment which deionizes electrically. This technology has not advanced sufficiently to compete with traditional H20 Industries but is still occasionally sold in conjunction with a R/O system as the e-cell can only handle small levels of TDS. Some industry participants are primarily engaged in water softening and water filtration for drinking and household purposes. These companies may also utilize green sand to remove iron and magnesium hardness derived from aging municipal piping systems.

In short, there is a full range of industry participants from the local Culligan service representative mainly involved in private households, to large companies involved in engineering, design, consulting, component manufacturing, waste water treatment, etc. With respect to the narrower market for H20 Industries, there are chemical companies who supply (by the gallon) H20 Industries to very small users. There are a few small companies engaged in DI exchange service who do this only as an adjunct to their main business, such as water softening, and who only act as a distributor of DI exchange regeneration facilities located outside of Northern California.

Strategy and Implementation Summary

Besides direct sales effort to large users of H20 Industries, a major element of the company’s marketing efforts will be to develop a distributor network through existing local water service companies. These companies provide local water service to small companies and homes throughout Northern California. Most of their business takes the form of water filtering, water softening, reverse osmosis maintenance, swimming pool service, etc. The best of these will be recruited to add H20 Industries service to their product line.

5.1 Value Proposition

H20 Industries will offer segregated resin regeneration to customers wanting the highest levels of water purity. Segregated regeneration is not offered by any other company in Northern California and indications are, based on present pre-start-up sales, that users of H20 Industries are willing to pay a substantial premium for it. It represents a form of peace of mind which dialysis units, laboratories, etc. feel is important.

The second most important value proposition is service response. When H20 Industries tanks need changing customers insist on, and will receive, an immediate response.

5.2 Competitive Edge

H20 Industries’s ability to segregate a customer’s resin and return it to him regenerated to the maximum limit, should put the company in a strong competitive position.

Approximately all of H20 Industries’s business will be directed at the portable service DI market. This market emphasis should quickly be noticed by users of H20 Industries, who at present rely on US Filter. US Filter’s product range growth through acquisition and buy-outs has de-emphasized the importance of its H20 Industries exchange service.

Hence, the two major aspects of the firm’s competitive advantage would be high quality segregated resin regeneration and fast service response. It will be important to stress these advantages in the sales literature.

5.3 Marketing Strategy

H20 Industries’s marketing strategy will be to execute and communicate its value proposition of service and market segmentation advantage in providing segregated regeneration of customers’ resin.

5.3.1 Distribution Strategy

Wherever H20 Industries cannot economically sell directly, due to distance or quantities, it will utilize a network of water service companies. These companies will be carefully chosen for their quality of service. An arrangement will be set up whereby the distributor will offer DI exchange service along with its other water services. The installations can easily be handled by them. They would tag the tanks and return and pick up from the H20 Industries plant. Being able to offer this service increases the image of the local water service company. It fosters a feeling a one-stop shopping. A 33% discount off the retail price should be adequate to satisfy the distributors.

5.3.2 Positioning Statement

H20 Industries’s ability to regenerate resin on a segregated basis, rather than only bulk, is a capability that should provide quick and easy entry into the user market where the highest water purity is needed. These users, blood analysis, hemodialysis units, and medical laboratories for example, are especially sensitive to contamination risks. Simply pointing out to these users that bulk regeneration involves the co-mingling of their resin with resin used in the metal-finishing and car wash industries usually is quite convincing. Segregated regeneration results in the further advantage of achieving a higher DI capacity per cubic foot as greater quantities of chemicals are used during a longer regeneration period.

The second most important position statement is H20 Industries’s concentration on the DI exchange business. This concentration will force H20 Industries to provide a higher level of service, and more quickly, too. It must be remembered that the cost for H20 Industries in the market for the highest level of water purity is not a significant cost element in the overall cost structure. However, a service shutdown, for quality or for service reasons, would be very costly to high technology users of H20 Industries.

5.3.3 Pricing Strategy

In line with the conclusions drawn in the positioning statements, H20 Industries can charge a higher price for its segregated regenerated resin. There is virtually no competition for this product in the Northern California market.

Charging $63 per cubic foot (mixed bed), as used in the sales projections, is more than a 65% increase over the price for US Filter’s bulk resin price for mixed bed. H20 Industries is currently successfully charging in excess of $70 for this product. It is essential that H20 Industries place a premium price consistent with its superior product.

Wholesale prices have been established to encourage the quick formation of a dealership network. Dealers are afforded a 33% discount.

5.3.4 Promotion Strategy

The main focus of promotion will be two-pronged: promotion to H20 Industries end users, and promotion to wholesalers.

Promotion to wholesalers should receive primary stress due to the extended reach made possible by the wholesaler network with its existing customer base. The sales force of these wholesale distributors needs to be educated on H20 Industries’s positioning statement so that they all understand the important sales advantages of segregated resin. Being able to offer DI exchange service to a distributor’s customer list is a great advantage to the distributor, and this fact needs to be clearly spelled out to them. Therefore, the H20 Industries relationship with a dealership network is one in which both sides benefit.

H20 Industries should strive to create a small-town, friendly relationship with its customers. Company brochures will show a map with all the H20 Industries locations, including each newly acquired distributor. The distributor trucks, as well as H20 Industries vehicles, would carry the H20 Industries logo, helping all to achieve name recognition. Cost savings would result through sharing literature, leads (by territory and/or industry), co-op marketing costs, and the sharing of technical expertise.

Direct marketing to customers within easy reach of H20 Industries should stress service. As a major supplier of resin stated: “US Filter is a huge concern that closes down at 5 P.M. on Friday.” Customers for H20 Industries need to feel that they can get service after hours, and even on a Saturday if need be. These customers feel much more comfortable dealing with an exchange service that is closer in size to the customer, and where the exchange service is an important portion of total sales revenue of the supplier. Prompt deliveries, trouble-free installations, good technical advise, etc. are main building blocks of the promotion strategy.

5.4 Sales Strategy

The sales strategy is to concentrate on that segment of the market most easily captured by the following sales feature: segregated regeneration of portable resin. In addition, the fastest way to reach the sales goal for the first several years is by actively working to develop a dealership network for H20 Industries.

5.4.1 Sales Forecast

Sales Projections:

Sales (July 1999) are running at less than 15% capacity monthly, exclusive of rental revenue. This approximates 285 cubic ft per month. The plant capacity will be 100 cu ft per day, on a one-shift basis. Based on the potential market outlined in the Marketing Section of this plan, growth in sales of regenerated segregated resin should reach 433 cu ft per month by October (equals 20 cu ft/day) which is this plan’s starting point, and growing steadily each month until 80 cu ft per day is reached (80% capacity) by the end of the first year. Total production of segregated resin is assumed to be split into equal quantities of anion, cation, and mixed bed.

Once the 80% capacity utilization level is reached (October 2000), unit sales will grow modestly in year two and year three. This growth can be achieved within the capacity limits of 100 cu ft daily (26,000 cu ft per annum) without increases in production labor. Further increases in segregated regeneration would require overtime labor charges. Also, for the projection purposes, direct unit costs for years two and three remain at the level of year one.

The bulk regeneration pad will have a capacity of 20 cu ft and can handle two batches during an eight-hour shift, totaling 40 cu ft/day. We will assume sales for bulk regeneration will grow at the rate of 5 cu ft/day in the first month reaching capacity of 40 cu ft/day after eight months. Sales are split between mixed bed (50%), 25% anion, and 25% cation. Sales of bulk resin will grow 15% each of the first three years. As the bulk regeneration, unlike the segregated regeneration, is not labor intensive, this 15% growth can be achieved without increases in production labor.

In projecting unit prices per ten cu ft. Prices will be assumed at:

• $630/10 cu ft for mixed bed (segregated)
• $570/10 cu ft for anion or cation (segregated)
• $430/10 cu ft for mixed bed (bulk)
• $320/10 cu ft for cation or anion (bulk)

The above prices will be reduced for dealers who will deliver and pick up at the factory to:

• $422/10 cu ft for mixed bed (segregated)
• $382/10 cu ft for anion or cation (segregated)
• $288/10 cu ft for mixed bed (bulk)
• $215/10 cu ft for cation or anion (bulk)

We will assume that 50% of all sales will go through dealers, so the unit price weighted average of the retail and dealer prices will be:

• $526/10 cu ft for mixed bed (segregated)
• $476/10 cu ft for anion or cation (segregated)
• $359/10 cu ft for mixed bed (bulk)
• $267.50/10 cu ft for cation or anion (bulk)

Variable Unit Costs:

The costs connected with one cubic foot of segregated anion treatment involve the cost of:

• City water.
• City sewer disposal.
• Cost of carbon filtering and converting city water to H20 Industries.
• Cost of heating water.
• Cost of Sodium Hydroxide.

Cost of replacing small amounts of lost resin.

• City water is supplied by Newark, at $2.70 per 100 cu ft, which works out to (7.48 gallons in one cubic foot) $0.0036 per gallon. It requires one gallon per minute for 45 minutes to regenerate one cubic foot of anion, which comes to 45 gallons. The slow rinse needs one gallon/minute for 20 minutes, and the fast rinse needs five gallons/min for 40 minutes. This comes to 220 gallons. Finally, testing takes another 12.5 gallons. Total water consumption per cubic foot of anion resin is 277.5 gallons, or $1.00.
• All water used eventually passes to the sewer which is metered at $2.45 per 100 cubic feet or $0.0032 per gallon. Cost per cubic foot of anion serviced is $0.91.
• Cost of carbon filtering and converting city surface-sourced water to H20 Industries is arrived at by assuming that one cu ft of regenerated resin has the capability of producing sufficient H20 Industries to regenerate five cu ft of spent resin. The costs of regenerating one cu ft of anion resin without H20 Industries costs are approximately $8.96. Dividing this amount by five comes to approximately $1.80 for the H20 Industries per gallon of anion resin serviced.
• Gas to heat incoming city water (average temp 40 degrees) up to 100 degrees goes by a formula (8.34 X number of gallons X temp rise) or 500.4 BTU’s per gallon. 277.5 gallons would need 138,610 BTU’s which, when divided by 104,000 BTU’s per thermal unit, comes to 1.3352 therms. One therm (assume G41 rate class) is billed at $.81 by Essexgas, so 1.3352 therms will cost $1.08.
• Sodium hydroxide is a caustic chemical supplied in a 55-gallon drum containing 50% solution. The regeneration process requires one drum to regenerate 12 anion tanks of each two cu ft. Therefore, one cubic foot of anion requires 2.2917 gallons, or .04167, of a drum. One 55-gallon drum costs $80.50 (Hubbard-Hall Inc.). Cost per cubic foot of anion servicing is $3.35.

Experience indicates that with each regeneration it is necessary to replace approximately two percent of the resin. Anion resin costs $130 per cu ft. Cost is $2.60 per cu ft of anion serviced.

Summary of Anion servicing costs:

• City Water: $1.00
• City Sewer: $0.91
• Carbon filtering and DI: $1.80.
• Gas to heat water: $1.08
• Sodium Hydroxide: $3.35
• Resin replacement: $2.60

Total for anion servicing: $10.74

The costs connected with servicing one cubic foot of segregated cation treatment involve the cost of:

• Cost of heating water (not needed for cation treatment).
• Cost of Hydrochloric acid.
• City water is supplied by Newark at $2.70 per 100 cubic feet which works out to (7.48 gallons in one cubic foot) $0.0036 per gallon. It requires one gallon per minute for 20 minutes to regenerate one cubic foot of cation, which comes to 20 gallons. The slow rinse needs one gallon/minute for 20 minutes, and the fast rinse needs five gallons/minute for 30 minutes. This comes to 170 gallons. Finally, testing takes another 12.5 gallons. Total water consumption per cubic foot of cation resin is 202.5 gallons, or $0.73.
• All water used eventually passes to the sewer, which is metered at $2.45 per 100 cubic feet, or $0.0032 per gallon. Cost per cubic foot of anion serviced is $0.66.
• Cost of carbon filtering and converting city water to H20 Industries is estimated at $1.46 per cu ft of cation serviced based on experience that one cu ft of regenerated cation resin has the ability to produce enough H20 Industries to regenerate five cu ft of cation resin. ($7.32 divided by five equals $1.46)
• No cost to heat water.
• Hydrochloric acid is supplied in 55-gallon drums containing 30% solution. The regeneration process requires two drums to regenerate 12 tanks of each two cubic feet, using an eight to ten percent solution. Therefore, one cubic foot of cation requires 4.6 gallons or .08363 of a drum. One 55 gallon drum costs $63.70 (Hubbard-Hall Inc.). Cost per cubic foot of anion servicing is $5.33.

Experience indicates that in the process of regeneration about 2% of the resin needs to be replaced. Cation resin costs $30 per cu ft. Cost is $.60 per cu ft of cation serviced.

Summary of Cation servicing costs:

• Resin replacement: $0.60.

Total: $8.78 for cation servicing.

Costs of servicing one cubic foot of mixed bed:

A mixed bed tank is more time-consuming as it requires a separation stage prior to regeneration. City water (not DI) is mixed with salt. This solution is used to bathe the anion and cation resin in a cone until the two resins separate, at which point the cation and anion are treated in the regeneration stage in the same manner as the single bed anion and cation. One mixed bed contains twice as much anion as cation. This aspect results in a weighted cost of $10.09 per cu ft Salt consumption: every cubic foot of mixed bed needs 1.5 cu ft of brine solution. There are 7.48 gallons per cu ft This comes to 11 gallons of brine needs. A 22% salt solution in this quantity of water would amount to amount two pounds. Salt is supplied by Hubbard-Hall Inc. at $.095 per pound. Adding the cost of the two pounds of salt to the weighted average cost of $10.09 comes to $10.28.

Total cost of mixed bed serving: $10.28 per cu ft.

• Bulk Regeneration Variable costs:
• Water. According to the spec sheet, 2,459 gallons are needed for 20 cu ft of mixed bed. At $0.0036 per gallon, this comes to $8.87, or $0.444 per cu ft of resin serviced.
• Sewer. Assuming all the water goes down the sewer with a minimal need for balancing chemicals, at $0.0032 per gallon, this comes to $0.4027 per cu ft of resin serviced.
• Per cu ft of mixed bed. $1.39 of acid and $1.10 of caustic soda.
• Salt. $0.07 per cu ft.
• H20 Industries and filtering/softening assume the same costs as in the production of segregated resin (i.e. $1.80 for anion and $1.46 for cation).
• Loss of resin. Assume two percent. At $130 for anion and $30 per cu ft of cation (ratio 2:3 cation to anion), a blended cost of $90 at two percent comes to $1.80 per cu ft.
• Heat for water. 3.2 therm at $.081 divided by 20 cu ft comes to $0.13 per cu ft.
• Total bulk mixed bed: $6.95, or $69.50 for 10 cu ft.

Tank Rental Income:

Because of the high costs of purchasing tanks, many new customers opt for renting tanks on a monthly basis. For purposes of these projections we will assume that:

• Dealership-generated sales resulting in tank rentals will be handled by them (i.e. ignored in these projections).
• Half of all directly-generated sales will involve rental tanks (i.e. total unit sales for October amount to 534 cu ft of which half will be dealer-generated. Total direct sales in October = 267 cu ft of which half (133 cu ft) will need rental tanks.
• Assume, for simplification of projections, all rentals will be in 12 inch tanks holding 3.6 cu ft with rental price of $40 per tank. October will see rental income of $1,480 (133 cu ft divided by 3.6 cu ft/tank times $40 rental per tank).

Tank Sales:

It is assumed that those customers who do not opt to rent their tanks will already have their own tanks or will purchase tanks from H20 Industries. Sales of tanks is assumed at only five percent of the number of monthly rental tanks. Sales price is $1,200. Cost equals $450.

5.5 Strategic Alliances

The relationship between dealerships and H20 Industries could be called a strategic alliance. These water service companies have an extensive customer base. Most of the customers have needs such as water softening, filtration, reverse osmosis maintenance, swimming pool maintenance, etc., however, many dealership customers have H20 Industries needs as well. At present, these water service companies must direct their customers to US Filter or supply the customer through US Filter. Forming a relationship between H20 Industries and these dealerships would quickly result in substantial sales increases for H20 Industries and would result in increased prestige and profits for the dealerships.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The management of H20 Industries is made up of individual shareholders with extensive expertise in the water treatment industry, as well as commercial and financial background.

6.1 Management Team

The management team is uniquely qualified to implement this business plan. The founders, John Jones and Dave Smith, have been active in the water treatment industry for years. John’s experience working with dealers in application engineering and sales has prepared him well to present the H20 Industries dealership to water service companies that he already knows. His years of calling on dealerships in all aspects of the water industry have allowed him a birds-eye view of the prevailing marketing and business practices.

Dave has been involved in the manufacturing sector of the water industry and is well respected and connected there. His training and certification as a Professional Engineer give him an advantage when consulting with customers and prospective customers.

The person planned for the position of general manager has wide-ranging experience in finance and manufacturing. He is a former vice president of Chase Manhattan Bank, team leader of a development bank (Saudi Industrial Development Fund), and founder/general manager of a factory which, after 10 years of profitable operations, was bought out in 1989.

The production manager is a chemical engineer by education and professional experience, and has demonstrated his know-how by successfully managing the production activity in the factory despite the challenges presented by the present incomplete production line.

6.2 Personnel Plan

Regeneration Personnel : A production manager must be a skilled chemical engineer with experience in water treatment applications. This person must be a hands-on individual supervising two assistants. The production manager will label the tanks as they are received to assure customer segregation and supervise the proper regeneration cycle, from separation through backwash, draw, flush, mix, and testing. The assistants will primarily be kept busy moving tanks from one stage in the regeneration cycle to the next, connecting the hosing, performing the chemical mix and draw according to the instructions of the production manager, adding salt to the brine tank, etc. The production manager is in place. One assistant is now in place. A second is needed.

An engineer/fitter is also needed to maintain the equipment and to make installations. This person is in place.

Sales and Marketing Personnel : It is planned that both owners will continue to maintain their present positions. These sales positions require them to move about the territory which provides an excellent source of knowledge of customers for H20 Industries. This information will be communicated to the sales and marketing manager who will spend his time calling and visiting potential H20 Industries users. He will be paid a base salary plus commissions. The commission will be higher for landing a new customer, and lower for repeat sales. The commission schedule will be constructed in such a way as to permit an annual total compensation that will encourage excellent sales results.

General and Administrative : An office manager is needed. Answering phones, primary contact with customers, incoming and outgoing mail, etc. He will be the main connection between the owners and the operations of the facility. Within six months, a part-time assistant will need to be added to keep pace with bookkeeping and management.

Delivery Personnel : One driver, who has additional responsibilities, is now in place. A second will need to be added after approximately four months.

Financial Plan investor-ready personnel plan .">

As of August 1999, stockholder equity stood at $112,000. Additional infusion of equity from new shareholders will boost the equity capital.

To complete the necessary planned additions to plant and equipment, a 5-year term loan will be required from a financial institution. The projected cash-flow is sufficient to repay this loan in quarterly installments. This term loan should be sufficient to cover the increases in accounts receivable, as well as to support growth in inventory of rental tanks.

7.1 Important Assumptions

Tax rate reflects the present sliding scale:

• $0 to $50,000 @ 15% Federal, plus 9.5% State tax
• $50 to $75,000 @ 25%
• $75 to $100,000 @ 34%
• $100 to $335,000 @ 39%
• $335,000 and up @ 34%

Inventory Turnover:

Since this is a service business, the only inventory is that of chemicals and some resin, both of which do not need to be stored more than two weeks. Average is one week (inventory turnover rate of 48).

7.2 Break-even Analysis

The following table and chart show the Monthly Units and Monthly Revenue Break-even calculations based on the Average Per-Unit Revenue, Average Per-Unit Variable Costs and the Estimated Monthly Fixed Costs, as drawn from the other financial tables in this plan.

7.3 Projected Profit and Loss

The following table and charts give the yearly projected profit and loss statement for H20 Industries. For a monthly analysis, please see attached appendix.

7.4 Projected Cash Flow

Cash Flow is an intrinsic projection for H20 Industries. We must maintain a suitable cash balance in the bank in order to be successful. The chart and table below outline our basic cash flow assumptions.

7.5 Projected Balance Sheet

The projected balance sheet for H20 Industries is presented below.

7.6 Business Ratios

The following table gives standard business ratios for the water treatment equipment manufacturer industry, as determined by the Standard Industry Classification (SIC) Index code 3589. The last column, Industry Profile, presents specific information and important ratios for this industry.

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Weatherford, TX

Big Spring, TX

Midland, TX

Abilene, TX

Lubbock, TX

Amarillo, TX

Plainview, TX

San Marcos, TX

Fredericksburg, TX

San Benito, TX

Corpus Christi, TX

San Antonio, TX

Kerrville, TX

Victoria, TX

College Station, TX

Brenham, TX

Beaumont, TX

Houston, TX

San Angelo, TX

Brownwood, TX

Irving (Dallas), TX

Denison, TX

CULLIGAN Utah LOCATIONS

Salt Lake City, UT

Orem (Utah Valley), UT

Cedar City, UT

CULLIGAN Virginia LOCATIONS

Lynchburg (Rustburg), VA

Gloucester, VA

Staunton, VA

Roanoke, VA

Portsmouth, VA

Ruckersville, VA

Harrisonburg, VA

Front Royal, VA

Winchester, VA

Fredericksburg (Ashland), VA

CULLIGAN Vermont LOCATIONS

Colchester (Burlington), VT

CULLIGAN Washington LOCATIONS

Kennewick, WA

Okanogan, WA

Ephrata (Moses Lake), WA

Bellingham, WA

CULLIGAN Wisconsin LOCATIONS

Janesville, WI

Eau Claire, WI

Waupaca, WI

North Fond Du Lac, WI

Rice Lake, WI

La Crosse, WI

Rhinelander, WI

Rothschild (Mosinee), WI

Green Bay, WI

Sturgeon Bay, WI

Shawano, WI

Peshtigo (Marinette), WI

Niagara, WI

Baraboo, WI

Lancaster, WI

Madison, WI

Richland Center, WI

Fort Atkinson, WI

Dodgeville, WI

Waukesha, WI

Union Grove, WI

Delavan, WI

Burlington, WI

West Bend, WI

Watertown, WI

Plymouth, WI

CULLIGAN West Virginia LOCATIONS

Clarksburg, WV

Vienna (Parkersburg), WV

CULLIGAN Wyoming LOCATIONS

Gillette, WY

Rawlins, WY

Torrington, WY

Cheyenne, WY

CULLIGAN Alberta LOCATIONS

Fort Mcmurray, AB

Grande Prairie, AB

Edmonton, AB

Red Deer, AB

Calgary, AB

Lethbridge, AB

Medicine Hat, AB

CULLIGAN British Columbia LOCATIONS