Feasibility Studies for Water Refilling Station
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Chapter 1
Project Summary
Project Summary
Name of Enterprise
Hydroplus
“Hydro” means water, “Plus” stands for the additional customer expectations for water. Hydro plus offers not just clean, purified drinking water to our customer but we also promise to deliver excellent service from the process the water undergoes until it reaches the body system of our customers.
Location
The project will be strategically located at Rodriguez St., Barangay San Andres, Cainta, Rizal. We say strategic because it is along one of the mains street of the barangay and we have a good reach for our target market. Through that placing we can also cater to our competitors customer.
Descriptive Definition of the Project
HYDRO PLUS is a water refilling station that produces and sells purified water that underwent a 21-stage purification process. From a total capital of Php 940,414.00 HYDRO PLUS aims to be a full enterprise through the vision of its owner Mr. Jonathan D. Cantos. He aims to differentiate the store and the product by creating a reputation of guaranteed sanitation that starts from the production process and extends to the selling and delivery services. HYDRO PLUS also ensures that products are made available and accessible to the market and are backed up by continuous market research and improvement and over-all product excellence. Through these, we believe that our project is worth establishing and base on the facts that we have gathered, our customers do not have a well-established rapport to most of our competitors that could be an opportunity for us to differentiate and take position of ourselves to give them a quality product and service against our competitors.
Long-Range Objectives
Through the guide of our vision and mission were expecting to be well known in the industry of providing safe drinking water not just only in our existing location but also in other places by continuously expanding our branches, offering variety of services that will totally satisfy expectation of our customers.
Feasibility Criteria
Basically, the feasibility criteria that we have used are the demand and profitability of the project. We have found out in our research that the demand for purified drinking water grows 10% every year while the supply remains the same. Thus, the unmet demand also grows every year giving the business better chances of success. Also, the project poses no environmental damage that could be a hindrance for its establishment. There are still a lot of factors that we have considered but we can say that the project is feasible.
Highlights of the Project
History
The history proves that there are evidences from almost all historical periods suggest that people took measures to ensure a fresh drink of water. The earliest water purification known for is the clarification device by the Egyptian from 1450 B. C. Aside from ancient Egypt, Sanskrit of ancient India back in 2000 B. C. also shows how they purify their drinking water through boiling, being heated in the sun, or by dipping a heated iron into it, or it may be purified by filtration through sand and coarse gravel and then allowed to cool.” Other purification methods included the use of a kind of stone, known as “Gomedaka,” and the seed of Strychnos potatorum. It is not impossible to know this because as we know water is one of the basic needs of a person that is why they really find ways to ensure the safety of their drinking water. Nowadays, modern humans created filtration technology that not only purifies but also mineralizes.
Our project, in line with the quest to giving safe drinking water, came about when Jonathan D. Cantos thought of delivering purified water that could be the best among others.
Project timetable and status
Preparation for this kind of business will take four (4) months from the process of planning, renovation, applying for business legalities, installing, testing of equipments, buying of supplies needed, hiring of workers until the implementation of promotion and store opening.
We are currently in the initial stage of planning but since one of our strategy is to open the store on summer where the demand for water is high, some adjustment will need to consider.
Nature of the industry
Right now, the demand at the water refilling stations – water stores that sell purified water – is now increasing. The quality of purified water conforms to the national standards for drinking water and is even better than the quality of water produced by traditional water supply systems in terms of removed impurities. The country has more than 3500 water refilling stations as of 2007. The industry is increasing as the demand for cheaper safe drinking water is also increasing. It is because drinking water in water refilling stations is cheaper than bottled water. Although there are government standards imposed prior to an establishment of a WRS, it will still continue to grow because of increasing demand for drinking water and the ease of its establishment could be another factor for its growth.
Mode of Financing
Our proposed business will be finance by a sole proprietor from his savings on bank, some cash in hand and the remaining capital needed will come from SSS loan since the capitalist is a member of SSS and has all the qualifications to avail the loan.
Investment Costs
An amount of Php940, 414 thousands is the total project cost. This is the total capital needed for 1 year including the initial capital needed and all other expense such as Raw materials, Machinery and Store equipment, Office Equipment, Furniture and Fixture, Automobile, installation Cost, Leasehold Improvement, Prepaid expenses, Supplies, Operating Salaries, Indirect labor, Promotional expenses, Transportation Cost, and Utility Cost, Pre-operating Cost.
Major Assumptions Used and Summary of Findings and Conclusion
Market Feasibility
The demand grows 10% every year while the supply remains the same. Thus, the unmet demand also grows every year giving the business better chances