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There a hundreds of Water Refill Business in the Philippines and you wanted to try out if this business is profitable or not this year of the monkey.
You are tired of your job, lazy to wake up in the morning and most of all you wan’t to have another source of income to quit being an employee and become a boss of your own company/business. You then save money and researching for a stable, profitable and legit business. Now you saw water refilling station being advertised on olx.com or on your Facebook live feeds. The big question is, thus this business is profitable or not?
On this article we will tackle the Water Refill Business all it’s pros and cons and we will summarise if it will be profitable business for you.
THE PROS
Huge Market. In the Phil. our water is already polluted and the supply of water is not safe to drink, so market is HUGE.
Established brand and customer base. You get the strength of the franchisor’s brand and the loyalty of its customers.
Marketing support. Franchises often have the support of national campaign, as well as ready marketing materials for a local campaign.
Reputable suppliers. Franchisors often have established relationships with suppliers for all the materials they need to run the business.
Training support. Some of the better franchise operations offer management and technical training.
THE CONS
Initial payout. You have to pay for the franchise fee and start-up costs. The bigger and more established the franchise, the more money you need.
Royalty payments.(Some may have and some don’t have) The monthly royalty – equivalent to a certain percentage of the monthly gross sales – must be paid the franchisor. This means a reduced income for you.
Marketing and advertising fees.(Some may have and some don’t have) To receive marketing support, you may need to pay these fees, depending on the contract.
Limited creativity and flexibility. Most contracts have very explicit standards, allowing little or no alterations. You must use their system and follow their rules.
Sole sourcing. Some contracts stipulate franchisors must buy supplies from a restricted list of suppliers.
Locked into operation by contract. You may be stuck for many years with the wrong franchise.
Dependence on franchisor success. The reputation of your franchise is only as good as that of the franchisor. Should he fail, you fail with him.
Risk. There is always risk in going into business, franchised or not.
Water Refill Business Still Profitable in 2016?
With the pros and cons listed above I cannot really tell if this will be a profitable business for you, it all depends on so many factors, To help you decide if this will be a profitable business for you.
BUDGET. This is most of our problem when starting or handling a business, please understand that you should have enough budget to handle your business. Aside from having Capital money you should also have enough money for your Revolving Funds. This will allow your business to grow it’s full potential while you are still building loyal customers.
LOCATION. If you will open a water refill business in a secluded area do think it will sell? I don’t think so.. There are many things to think about picking the best location, it must be in an area with a lot of people passing by also there should be few competitions near by. Also the price of the rent of the area. Does the area have clean or unsafe tap water? (Most provinces doesn’t rely on mineral water)
MANAGEMENT. Are you equipped with knowledge on handling employees? How about finances, cash flow, permits and etc.
TIME. Are you willing to work on your business without fix salary and no paid overtime? You are now the boss of your business and there are no salary but only business income. This is where it is very crucial. You MUST NOT overspend, meaning getting all the income of your business and not saving for it’s growth and monthly expenditures.
I suggest you ask yourself first with these factors, if you are ready and all these factors are manageable then I will tell you congratulations for opening your own water refill business.
source: http://onlinebizops.org/water-refill-business-still-profitable-2016/
You are tired of your job, lazy to wake up in the morning and most of all you wan’t to have another source of income to quit being an employee and become a boss of your own company/business. You then save money and researching for a stable, profitable and legit business. Now you saw water refilling station being advertised on olx.com or on your Facebook live feeds. The big question is, thus this business is profitable or not?
On this article we will tackle the Water Refill Business all it’s pros and cons and we will summarise if it will be profitable business for you.
THE PROS
Huge Market. In the Phil. our water is already polluted and the supply of water is not safe to drink, so market is HUGE.
Established brand and customer base. You get the strength of the franchisor’s brand and the loyalty of its customers.
Marketing support. Franchises often have the support of national campaign, as well as ready marketing materials for a local campaign.
Reputable suppliers. Franchisors often have established relationships with suppliers for all the materials they need to run the business.
Training support. Some of the better franchise operations offer management and technical training.
THE CONS
Initial payout. You have to pay for the franchise fee and start-up costs. The bigger and more established the franchise, the more money you need.
Royalty payments.(Some may have and some don’t have) The monthly royalty – equivalent to a certain percentage of the monthly gross sales – must be paid the franchisor. This means a reduced income for you.
Marketing and advertising fees.(Some may have and some don’t have) To receive marketing support, you may need to pay these fees, depending on the contract.
Limited creativity and flexibility. Most contracts have very explicit standards, allowing little or no alterations. You must use their system and follow their rules.
Sole sourcing. Some contracts stipulate franchisors must buy supplies from a restricted list of suppliers.
Locked into operation by contract. You may be stuck for many years with the wrong franchise.
Dependence on franchisor success. The reputation of your franchise is only as good as that of the franchisor. Should he fail, you fail with him.
Risk. There is always risk in going into business, franchised or not.
Water Refill Business Still Profitable in 2016?
With the pros and cons listed above I cannot really tell if this will be a profitable business for you, it all depends on so many factors, To help you decide if this will be a profitable business for you.
BUDGET. This is most of our problem when starting or handling a business, please understand that you should have enough budget to handle your business. Aside from having Capital money you should also have enough money for your Revolving Funds. This will allow your business to grow it’s full potential while you are still building loyal customers.
LOCATION. If you will open a water refill business in a secluded area do think it will sell? I don’t think so.. There are many things to think about picking the best location, it must be in an area with a lot of people passing by also there should be few competitions near by. Also the price of the rent of the area. Does the area have clean or unsafe tap water? (Most provinces doesn’t rely on mineral water)
MANAGEMENT. Are you equipped with knowledge on handling employees? How about finances, cash flow, permits and etc.
TIME. Are you willing to work on your business without fix salary and no paid overtime? You are now the boss of your business and there are no salary but only business income. This is where it is very crucial. You MUST NOT overspend, meaning getting all the income of your business and not saving for it’s growth and monthly expenditures.
I suggest you ask yourself first with these factors, if you are ready and all these factors are manageable then I will tell you congratulations for opening your own water refill business.
source: http://onlinebizops.org/water-refill-business-still-profitable-2016/
