Mariano Marcos State University College of Business Economics and Accountancy Batac City, Ilocos Norte

(In partial fulfillment of the requirement of the course in ProEl123, 2nd semester, S.Y. 2009-2010)

AQUACEAN
PURE DRINKING WATER (A BUSINESS PLAN)

Prepared by: Hazel Anne Abut Sheryl Agullana Gerald Domingo Mary Ann Lista Ma Sheryl D. Marzan Mae Ann L. Salviejo

Submitted to: Dr. Leah Ballesteros

March 2010

Purified Drinking Water

The water refilling station that is centered in providing safe and clean water for consumption at

Brgy. 19 San Lorenzo San Nicolas, Ilocos Norte

low« low« prices«

Phone: 771-3214 CP No.:09191234567 E-mail: www.aquacean.com

INTRODUCTION Health is the major priority of every person because it is hard and expensive to be brought to the hospital once you get sick. Because of this, most people see to it that what they usually take in is safe and clean. Health is a priority, as the saying goes, ³Health is Wealth.´ Purified water was intended for the safety of the people and this is safe for the most sensitive stomach. This type of water is good enough to prevent intake contamination to anyone who has weak fighting cells. In relation to this, most customers are possessing safety assurance in every product they purchase, especially to the products which indeed to be take in such as water. Water is necessary for the very survival of human beings, as it to ensure the smooth functioning of body systems. In fact, 2/3 of our body weight is water. Drinking plenty of water helps fight against flu and ailments, regulates your body temperature and raises your metabolism.

and service business. health. It is also known as the home of eminent men and women who have significant contribution in the development and welfare of our country and fellowmen. researches and education. FOOD DELICACIES AND CRAFTS Opportunities: y y y y 2. Pottery Street Food Selling Dress Making/Sewing Homemade Foods y y y Meat Processing Furniture Making Food Chains/Eatery SERVICE BUSINESS Opportunities: y y y y y y y y Water Refilling Station Computer Shops/Internet Café Photo Studio And Framing Grocery Stores Videoke Bars Shopping Centers Jewelry Shops Pawnshops y y y y y y y y Hardware Store Cell Phone Repair Spa And Beauty Salon Laundry Shop Merchandise RTW Auto Repair Shop Auto Parts Shop . finance. This section discusses the business opportunities of food delicacies and crafts. 1. It is considered a rapidly growing center of trade.BUSINESS OPPORTUNITES The Municipality of San Nicolas as its name denotes is a town where cooperation and unity is a way of life.

Possibility . Desirability It is the willingness of the owner to establish the business. Screening of Business Idea Screening Business opportunities Marketability (30%) Profitability Desirability (35%) (10%) Demand Possibility (20%) (5%) Total 100% Rank Water Refilling Station 90 95 75 85 65 88% 1 Food chain/eatery 85 92 72 80 70 84. Demand It is the level of desire or need that exists for a particular business.Table 1.40% 2 Pottery 70 80 60 60 80 72% 3 The criteria for screening businesses are the following: Marketability It is the acceptability of the business to the market. Profitability It is how the business will measure its profit.

Brief Description of the project AQUACEAN is a business that is centered in providing safe and clean purified water for consumption. Name of the firm: AGUACEAN Purified Water Refilling Station Location: Brgy.16. The target markets of the business are the households. AQUACEAN can be also accurate in organizing their equipments and maintaining its buildings physical appearance from the day it is establishes up to its growth. Strategies to trigger competitors product itself is not only made purified but also contains vitamins (vitamin B and C) and minerals (calcium and sodium potassium) that are helpful in fighting bacteria. And they can be efficient delivering the service on time. C. Ilocos Norte (along the national highway) Type/Nature of business: Service/Sole Proprietorship Proponents: Mary Ann Lista Ma.It is the potential for successful future development. San Marcos. B. . Sheryl Marzan Sheryl Agullana Mae Ann Salviejo Hazel Ann Abut Gerald Domingo E. D. food establishments. PART II EXECUTIVE SUMMARY A. San Nicolas. schools and nearby towns of San Nicolas. These practices are some of the processes distinct from the competitors.

Highlights of the Plan Marketing Aspect This section includes the target market of the business. Production Aspect This section presents the production process. post carbon filter. The total projected cost that maybe incurred has a total of that will be the used in the operation of the business. price. demand and supply. the proposed marketing program such as the product. including the plant layout and location. The proponent is also the manager of the business. It will have to provide 3 tricycle and 2 pick-up vans for the delivery service and machines such as multimedia sediment filter. It is classified as a single proprietorship. Income Statement.054. ion exchange. Financial Aspect The financial statement in the financial portion of this business plan is presented with this order. and promotional activities. and the projected sales. channels of distribution. and general trade practices. competitive position of the business such as the product selling price. the Projected Balance Sheet. Water refilling station is a simple and can be manage by your own.383 . reverse osmosis membrane. Management Aspect This section presents the classification of the business. Projected Cash Flow. activated carbon filter. ultraviolet lamp and the ozone generator. competitiveness of the quality product. Return on 1.F. methods of transportation and existing rates. The business will be situated at the residence of the owner.

36. other nearby towns like Batac. Market Segment Households 1. It is needed that almost all households are now drinking purified water as to satisfy their thirst.496.Investment. SAN NICOLAS 2.066. and the entrepreneurial level such as income generation and self-fulfillment CHAPTER I MARKETING PLAN Target Market A. The net income of AQUACEAN in its first year operation will be projected cash flow could reach as high as Social Desirability 1. The demand of water refilling station is highly increasing due to rapidly growing population of the locality. Its This section presents the contributions of water refilling station to the economy such as provide employment. LAOAG 20. Households from San Nicolas. BATAC 3.215 47. specifically purified drinking water is increasing more than to every household.976 Food Business Establishments 250 (estimated) 300 (estimated) 700(estimated) Schools 35 72 105 . Laoag City.610 19. B.842. Sarrat and owners of food establishments and schools from the said towns would much benefited and qualified to avail of the service. Thus it implies that the demand for water. improve quality of life and provide additional taxes.

881 50 (estimated) 29 C. . SUPPLIERS/COMPETITORS SUPPLIERS/COMP ETITORS 1. 1 San Fancisco y Location y physical appearance D. of delivery vehicles y Lack of promotions 4. AQUA 2000 ADDRESS Brgy.4. WATER 4 LIFE Brgy. AMIEL¶S Brgy. SARRAT 4. Selling Price The family size (5L) costs 25 pesos per container with free delivery in San Nicolas area and 30 pesos for nearby town. then only 20 pesos for walk-in customers. 11 Sa Fernando y Unlimited area for delivery y Dress code y Location y Lazy employee 3. 3 San Idelfonso STRENGHTS y Accessibility within the town proper WEAKNESSES y Small processing area y Lack of employee 2. Medium size (4L) costs 15 pesos. COMPETITIVE POSITION 1. While small sizes such as 500ml cost 5 pesos and 300ml cost 3 pesos. 22 San Guillermo y Small no. AQUA Brgy.

Competitiveness of the quality product y y Bacteriological quality Physical quality y y Chemical quality Biological quality 3. Channels of distribution Through the use of telecommunications such as Cell phones and telephones are merely used for channels of distribution. In addition. retailer distributor distributor customer manufacturer distributor distributor retailer . Methods of transportation and existing rate The business will provide at least five vehicles. 4. Two pick-up vans for delivery service outside San Nicolas and three tricycles for delivery service along the location area. the firm may also distribute the product through having outlets in some sari-sari store.2.

deionization or term as dematerializing the water. Sodium.Figure 1. The product offered in the market made safety and healthy as the process of purifying is being implemented. It goes through the process if distillation. E. These practices are some of the processes distinct from competitors. Potassium. and other) helpful in fighting bacteria. The product is categorized into different sizes to cater the customer according to what they prefer. Channels of Distribution 5. Vitamin C) and minerals (Calcium. Certain practices from different water refilling station are in common. General trade practices Competitors are now at peak in San Nicolas for business like water refilling station. like the selling price if family size cost to 25 pesos with free delivery and if it is directly acquire in the business it only cost 20 pesos. . PROPOSED MARKETING PROGRAM 1. The interesting part of the product is not only made purified or distilled but it contains vitamins (Vitamin B. For tangible products The product AQUACEAN purified drinking water is a product need by people as one of their basic necessities in life. Description of Proposed Product a.

the manufacturer. On the grand opening of the business. Packaging The name of the product is AQUACEAN Purified Drinking Water located at Brgy. and cover tightly with sealed plastic for protection. It has also label which emphasize the information about the product including its benefits. Description of Proposed Target Market a. stickers. Unit Selling Price 25 15 5 3 . 16 San Marcos San Nicolas. Age-all ages c. Pc. Proposed promotional activities The business will be providing flyers. Pc. and tested and approved by BFAD use material for its package. keychain designed like a mini bottle. the first 20 customers will get free t-shirt upon purchasing of 3-5 galloon family size.b. Geographical location-Ilocos Norte b. Ilocos Norte. The product consists of a quality plastic bottle which is not hazardous. Every customer will also receive a loyalty card given by the company wherein customers must purchase ten times in order to get one family size for free. product name and logo. Unit Pc. 2. Proposed Prices Product Family Size ( 5L) Medium Size (4L) Small Size y 500mL y 300mL 4. Sex-both 3. Pc.

Water refilling station is a simple and can be manage by your own. The proponent is also the manager of the business. . The owner must be a graduate of Commerce and have attended different seminars in managing a business regarding health and safety implementation of water refilling station. The owner is responsible in taking all the risk. the refillers who accept and refills containers of customers and the deliveryman who transport refilled containers. It will be operated by Ms. The management is composed of marketing manager who is responsible in promotional activities of the business. production manager who looks after the production of the products and needed materials and equipment to be used. overall in charge in managing the business. Mary Ann Lista.CHAPTER II ORGANIZATION AND MANAGEMENT PLAN The Management of the Business: The business is classified as a single proprietorship. sustains the capital requirement of the business and gives appropriate salary for the employees. the technical assistant who is responsible in maintaining and running the machine. finance manager who is in charge of bookkeeping and making financial statement.

SHERYL MARZAN FINANCE SHERYL AGULLANA PRODUCTION MAE ANN SALVIEJO DISTRIBUTOR1 San Nicolas REFILLER1 HAZEL ABUT TECHNICAL ASSISTANT GERALD DOMINGO DISTRIBUTOR2 Batac REFILLER2 DISTRIBUTOR3 Laoag REFILLER3 DISTRIBUTOR4 Sarrat . The Management Structure of the Business GENERAL MANAGER/OWNER MARY ANN LISTA MARKETING MA.Figure 2.

y Makes financial statement of the business operations. Gerald Domingo Technical Assistant . Sheryl Agullana Finance Manager Ma. Management Job Description Name Mary Ann Lista Position Owner and the General Manager Job Description y Responsible in taking all the risk y Overall in charge in managing the business y Sustains the capital requirement of the business y Gives appropriate salary of the employees y In charge of bookkeeping.2. Sheryl Marzan Marketing Manager y In charge in the promotional activities of the business y Maintains and runs the machine y responsible in looking after the operations and repot as to production y In-charge in reporting the materials to be purchased for the production in the coming days.

They are highly equipped with good education and are nurtured by their experiences. design. y Look after the production of the products and needed materials and equipments to be used in the identification of the needed skills and labor. . They are all aware of their own tasks and the owner properly delegated the needed activities on the operations of the business. creation and innovation of the products to be served to customers. y Accepts and refills containers of customers y Transport refilled containers to customer¶s home Hazel Abut Others Refiller Driver/Delivery Man PERSONNEL and WORKFORCE Personnel in this business are highly qualified based on their wide experiences in the same field of the job. Personnel are dedicated.Mae Ann Salviejo Production Manager y Business planner of what the outcome and prices of the product y Responsible in the conceptualization. friendly and well trained. and how much will the business cost.

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A. etc. PROJECTED TIME TABLE Activities Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Wk7 Wk8 Wk9 Wk10 Wk11 Wk12 Wk13 Wk14 Wk15 Wk16 Planning and preparation of the financial statement and business plan Look for supplier or seller of equipments (list the price and ask for feasibility study to know how much the cost needed) Analyzing and studying the total cost (negotiating with the supplier) Choosing the right equipment Building improvement Go to the DTI for the business name and registration Applying for business permit Go to BIR for your official Receipts Buy other supplies like water containers. seals. heat gun. Start doing your store¶s signage and sticker labels Installation of equipments Hiring of employees Dry-run Water Testing .

. Purified water cleanses the body through promoting healthy kidney function. Purified is a water that has virtually all of its impurities as well as minerals and electrolytes stripped through distillation (boiling the water and re-condensing the steam into clean a container). While purified water does not leach out significant amounts of biologically available minerals because these are quickly taken up the body on an as needed basis. Purified water is good clean water. ionic form and we want these to leave the body rather than be deposited and cause disease. If they are present in excess then they are filtered through the kidneys and this is exactly what needs to happen with all things which are in excess in the circulation. Based on some studies comparing mineral water purified water and it results to minerals¶ leaches out are of the unusable. The business primarily provides clean and safe purified water. unfortunately all the minerals and electrolytes are also all stripped out. leaving all contaminants behind.CHAPTER III PRODUCTION PLAN Product Specification The AQUACEAN is a water refilling station that conforms to the national standard for drinking water. Purified water tends to be slightly acidic moving your body to a less healthy state.

Removing all organic chemical herbicide. the typical steps are filtration (several stages). Acquiring of raw materials from the well. softening. pesticide. improving the taste of water. and disinfection. Ready for bottling Water refilling. offensive odor and bad taste. Replacing hard minerals with safe minerals. Ensuring that the water is free from disease-causing micro-organisms. sand and particles that are invisible to naked eye. Removing sediments such as rust.PRODUCTION PROCESS The main processes in a water refilling station are dictated by raw water quality. . Inhibits the growth of the product tank and prolongs the shelf life of water.

m TABLE OFFICE PARKING SPACE FOR PERSONNEL AND MANAGEMENT WASHING AND CLEANING PARKING SPACE FOR THE TRICYCLES REFILLING AREA .m WASTE DISPOSAL TOILET STORE ROOM MACHINE 1 MACHINE 2 PARKING SPACE FOR THE PICK-UP VAN (ENCLOSED WATER PURIFICATION ROOM) 25 sq.PLANT LAYOUT 25 sq.

PLANT LOCATION BUS. ESTABLISHMENT Church MUNICIPALITY OF SAN NICOLAS PARK . ESTABLISHMENT AQUACEAN BUS. ESTABLISHMENTS BUS. ESTABLISHMENT School COCKPIT ARENA BUS.

Ensures that the water is free from disease-causing microorganisms. Ion Exchanger Activated Carbon Filter P25. employs a total of 5 filters.000 P20.000 P25.000 Ozone Generator P25. Since the filter size is very small at less than 0. The heart system and the most expensive unit.A.000 Post-Carbon Filter Ultraviolet Lamp P20. Removes all organic chemical herbicide.000 Description/Specification and Suppliers Removing sediments such as rust. Replaces hard minerals with soft minerals.000 .000 Reverse Osmosis Membrane P100. Inhibits the growth of the product tank and prolongs the shelf life of water. The filtration process rejects about 50 percent of raw water volume. Removes inorganic minerals. bacteria and viruses while retaining its oxygen content. the product water could have total dissolved solids (TDS) of less than 10ppm. sand and particles that are invisible to naked eye. Machine and Equipments Machine Multi-media sediment filter Cost P35. pesticide. Improves the taste of water. offensive odor and bad taste.05 micrometer.

000.740 Fix Asset Equipment Furniture Total Book Value 845.650 Useful life 10 4 Depreciation Expense (Monthly) (Annual) 7.000 3.000 72.000 6.000 P 30.000 5.00 .000 P 576. RAW MATERIALS Raw Materials Bottles Gallons Paper Sealed Heat gun Total Quantity 1.90 13 3 100 2.158 85.740 February 600 750 290 150 1.000 28.400 3.000 72.00 Annual Salary 72.000 5.000 180.000 72.000 6.350 10.740 March 600 750 290 150 1.000 Amount 4.912 Salaries of Employees Position Finance Manager Marketing Manager Production Manager Technical Manager Refillers (3) Delivery Man (5) Total Monthly Salary 6.750 TOTAL PROJECT COST Factory Overhead Factory Overhead Amortization of building improvements Depreciation of materials and tools Depreciation of furniture and fixture Depreciation of office equipments Total factory overhead January 600 750 290 150 1.000 6.412 7.740 April 600 750 290 150 1.500 117 1.000 50 3 Cost per Unit 2.B.000 6.000 108.000 3.000.041 84.500 800 1.

000 350 1.600 79.C.000 6.000 4.00 Annual Cost 600 360 1440 240 240 240 240 3.373.200 12.000 1.800 Cost 100 200 2.000 3.360. Clearance Total Monthly Cost 5. PERMITS AND LICENSES Pre-Operating Activities Mayor¶s Permit Zoning clearance Garbage disposal fee Fire safety clearance Fire code fee Tax Clearance Occupation Tax Governor¶s permit fee Business Registration Certificate Community Tax Certificate Brgy.00 Utility Electric bill Water Telephone Cell phone load Total E.00 .350 Annual Cost 60. UTILITIES Monthly Cost 50 30 120 20 20 20 20 380.OFFICE SUPPLIERS Supplies Ball pen Board Marker Bulletin Board Sales Book Sales Invoice Official Receipts Journal Total D.500 100 50 50 150 200 100 73 50 5.

373 1.500 61. . Loans from bank will be amounting to Php 350.010 5.500 30.873 28. The loan payable to DBP has an interest of 5%.000 1.054.750 61.000 824.383 704.750 Total Project Cost Source of fund Equity Debt 1.383 cash to establish the business.750 1. The business will be located at the residence of the owner in order to minimize the expenses of building own establishment building.000 The proprietor will invest Php 704.Total of Project Cost Item Building Improvement Plant and equipment Equipment Furniture & fixtures Office Supplies Pre-operating Cost Permit & Licenses Freight Expense Working Capital Packaging Advertising Expense Salaries Telephone Cash 815.650 3.360 100.000 5. It is a good start to keep the capital liquidating.383 350.500 6.000 could help finance the business for further development and enhancement.

412.000 360.070*32) Net Income P 1.00 88.883.070 28.CHAPTER IV FINANCIAL FEASIBILITY INCOME STATEMENT Gross sale Expenses Pre-operating Files and Licenses Building and Improvement Equipment Freight Expense Furniture and fixture Office Supplies Operating Expense Electricity/Water Maintenance and Repair Salaries Expense Advertising Expense Telephone Bill/Cell phone load Packaging materials Other Expenses Depreciation Expense Interest Expense Income before tax Income Tax Expense (88.770.000 815.000 7.345 2.373 100.405.00 5.500 17.650 3.00 85.00 62.000 240.888 .560 P 689.182 59.360 P 930.912 17.811.500 P103.500 5.000 1.

108 350.499.BALANCE SHEET For the year 2010 ASSET Cash Raw/Packaging Mat.108 LIABILITIES Loan Income Tax Payable Interest Expense Payable Total Liabilities CAPITAL Capital beginning Add: Net Income Total Capital TOTAL LIABILITIES AND CAPITAL 1.496 5. Office Supplies Furniture and Fixtures Equipment Total Assets 1.000 17.383 59.337 17.837 .499.054.000 4.500 384.612 1.066.271 1.000 422.888 1.114.000 1.

054.58 Payback period The business could reimburse its debt from the Development Bank of the Philippines on its second year of operation and the business assures for its full payment and all the liabilities will be settled.383*100 = 0.Return of Investment ROI= Net Income/ Capital*100 = 47. .987/ 1.0458*100 = 4. Break-even Sale AQUACEAN could attain its break-even sale at first year of operation.

Add: Cash Inflows Equity Contribution Cash Sale Total Cash Provided Less: Cash Outflows Cash Balance.TOTAL CASH FLOW Cash Balance. Beg.468 1.383 1.686.687.820 2.054.134.051 .079.871 1.820. ending 1.020 3.

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850 615 163.000 500 123. September. The gross sale for ann . November.870 550 131.700 505 248.000 445 The month that has the highest sale is the month of March. the income is the month of August.000 565 153. size (4gal) Small size (500mL) Small size (300mL) Total U gal USP 25 FEB AMT QTY MAR AMT QTY APR AMT QTY MAY AMT QTY JUN AMT QTY JUL AMT QTY AUG AMT QTY SEPT AMT QTY OCT AMT QTY 50 37500 70 52500 80 60000 100 75000 90 67500 60 45000 50 37500 50 37500 50 37500 50 37500 50 gal 15 100 45000 130 58000 125 56250 150 67500 130 58500 120 54000 110 49500 105 47250 100 45000 100 45000 95 Bot.250 500 123.000 645 174.350 680 192. December and January because these months are the rainy season. 3 200 18000 230 20100 240 21600 250 22500 250 22500 240 21600 230 20700 200 18000 200 18000 200 18000 200 500 123. 5 150 22500 155 23250 170 25500 180 27000 175 26250 165 24270 160 24000 150 22500 150 22500 150 22500 100 Bot.PROJECTED SALE JAN QTY AMT QTY PRODUCT Fam. October. April. because these months are the summer season. and May. size (5gal) Med.750 585 144. On the other hand.

Entrepreneur¶s level: y Income generation The main goal of having a business is to gain profit. y Improve Quality of life AQUACEAN purified drinking water caters the best quality product that satisfy their needs and to develop ways to improve quality of life. y Self-fulfillment This project will develop the entrepreneur¶s intense desire to innovate. This will provide job opportunities to the unemployed and allowing them also to enhance their skills and knowledge related to the job. build and to meet his goals through making this project. .CHAPTER V SOCIAL DESIRABILITY AND CONTRIBUTION TO THE ECONOMY The business contributes the following to the economy: y Provide employment AQUACEAN will hire additional employee to do the operation of the business. y Provides additional taxes to the economy AQUACEAN provides taxes to the economy to which the business will pay tax to strengthen the economy.