Water Refilling Station by 18

[asupersquirrel]

Using a throwaway account because friends.

This is lengthy but head straight down for my question.

Hi I am a 16 year old that has saved 200k (might increase, all invested on family business) with a separate 100k EF. I can also ask fiancial help from parents but I saved enough for me.

By 18 I plan to open a water refilling station under the franchise of AlkaViva on my father's hometown in Negros Occidental. Two years ahead because parents are paying for a van and to officialy name it to me.

I did a breakdown of initial costs:
(Prices may increase overtime around 4-8% after my planning)

a. Water Source/Licenses: No water cooperative, will install electric water pump. 4k including plumbing

b. Location: Abandoned Sari-sari store in front of house. Fixing may cost around 50k

c. Franchise and Initial Equipment: AlkaViva mineral 24 stages. Initial 30k (3,300 every month after for 36 months)

d. Motorycles: Two second hand motors with no sidecar. 20k each ×2 =40k

e. Misc: 10k

Total of: 134k

After that I did a monthly cost breakdown:

a. Franchise/Equipment: 3,300 for 36 months

b. Electricty: 2,000

c. Water: Negligible

d. Wages: 10,000 (minnimum Reg. 7) × 2 = 20,000

e. Motor Maintenance: 5,000 ×2 =10k

f. Supplies: 5,000

g. Misc: 5,000

Total of: 45,300

Estimated earnings:

(Thanks GoNegosyo)

Population of said Town: 50k

Current competitors: None (Several retailers of already filled gallons, they sell 30 per gallon.)

Price: 25 per gallon (compared to 30 per gallon of retailers)

Customers: Around 250

Frequency: once per three days. 10 gallons per month.

Estimated Revenue: 60k

Net Earnings: 15k a month

Months before returning initial investment: 12

My mom showed interest to manage my business. I am willing to be hands-on after college hours. I plan to get a engineering course related to my business to ensure that I can better manage it.

I got this idea because I contracted amoebiasis when I last went there.

Question: Is it too early? I want to grasp the opportunity since there is literally no competitors?

Edit: About AlkaViva franchise. They offer mostly just equipments with no royalty fees and be able to open under own name. They have succesful clients and featured too in MyPuhunan which my mother saw.

Edit2: I will promise to update all of you after two years!

 

[kuregee]

@asupersquirrel Go for it, seems like a well-thought out plan w low risk. Just dont let running the business distract you too much from also getting your education and building your career as you dont want to earn just 15k forever

 

[asmapandor]

@asupersquirrel What a sensible teenager! Clap clap The fact na wala kang competitor and 50k population, go for it! Around ganyan din town namin sa province, with several competing water stations and yet kumikita talaga (I know because some are owned by family friends).

 

[asupersquirrel]

@asmapandor By the time I build said water station, I actually expect some competitors but the key element most stations leave is pure ole Customer Service.

We have a sari-sari store that retails water gallons too, most of the time we switch providers because of either late deliveries or poor care of our gallons. Straightening up your employees will be for me the biggest challenge here.

 

[rskovride]

@asupersquirrel Hey finally an investment whose success is completely controlled by the investor. Good luck. Don’t forget to keep a tight watch on your operations. I suggest a cctv camera. I don’t see OPEX for your salaries for people since you will be studying. You might consider this before calculating your return.

 

[asupersquirrel]

@rskovride This. Operations I forget to mention, but as I said in a previous comment, even if there are a lot of competitions building trust with customers is upmost important. My mom is interested to handle the day to day operations for me, and ofcourse she is trusthworthy.

The saleries of the people is included: I expect two persons. Minnimum salary in Region 7 is 310/day so anything above minnimum will keep them inspired. (I hope)

 

[rskovride]

@asupersquirrel You should pay your worker even if they are family. Not out of love, but because it’s part of learning the business. Don’t have to pay right away, you can accrue what you owe them and give cash later.

It’s the discipline of paying proper wages that you need to get right because a business without proper accounting of liabilities will give you a lopsided idea on how well your operations is actually going. You may think youre profiting when you’ve actually got payables due from a non-booked labor source (your mom).

 

[asupersquirrel]

@rskovride Thanks for the advice! I will put it into account.

 

[bhillyard]

@asupersquirrel Yes, get it. Infrastructure expands markets. If you provide easier access to drinking water, you're going to be a NETting a hella lot than 15K/month. Restaurants/businesses/resorts will inevitably start popping up because they know they can get clean drinking water, and you're the only one that can provide it.