sample of simple business plan in the philippines

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Using a business plan in the Philippines is crucial for several reasons. Firstly, a business plan serves as a roadmap that outlines the goals, strategies, and financial projections for a business venture. It helps to clarify the direction and vision of the business, ensuring that all stakeholders are aligned. Additionally, a well-developed business plan is often required when seeking financing from banks, investors, or government institutions. It demonstrates the feasibility and potential profitability of the business, increasing the chances of obtaining funding. Themis Partner helps you draft the best business plan for your company while being fully compliant with Philippines Laws.

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Table of contents, what is a business plan, when do you use business plan for your business, why is a business plan important for success, what does a business plan include in the philippines, how to make a business plan for the philippine market, what are the tips for writing a business plan for startups, how important is market research in developing a business plan, how to incorporate financial projections into my business plan.

A business plan is a comprehensive document that outlines the goals, strategies, and financial projections of a business. It serves as a roadmap for entrepreneurs, providing a clear vision of their business idea and how they plan to achieve success. A well-crafted business strategy roadmap includes sections such as an executive summary, company description, market analysis, marketing strategies, organizational structure, financial projections, and more. It helps entrepreneurs articulate their business concept, understand their target market, identify potential challenges, and plan for growth and sustainability.

Business plans are typically used in various scenarios throughout the lifecycle of a business. They are essential when starting a new venture as they provide a blueprint for success, helping entrepreneurs secure funding from investors or financial institutions. A business plan is also beneficial when seeking partners or collaborators, as it outlines the business’s potential and growth prospects. Moreover, established businesses can use these strategic roadmaps to strategize for expansion, diversification, or entering new markets. Additionally, a strategic roadmap can be periodically reviewed and updated to assess progress, make necessary adjustments, and attract new investors or stakeholders.

A comprehensive business plan is vital for success in the Philippines due to several reasons. Firstly, it helps entrepreneurs gain a deep understanding of the local market dynamics, consumer behavior, and competition. The Philippine market is diverse and rapidly evolving, making market knowledge crucial for business sustainability. A well-researched business strategic roadmap allows entrepreneurs to identify and capitalize on market opportunities, mitigate risks, and make informed decisions. The business strategic roadmap is essential for attracting investors in the Philippines. Investors often require a thorough strategic roadmap to assess the viability and potential of a venture. A comprehensive plan demonstrates professionalism, preparedness, and a strategic approach to business development. It provides investors with the necessary information to evaluate the financial projections, growth prospects, and return on investment. A strategic roadmap serves as a roadmap for entrepreneurs, outlining their goals, strategies, and milestones. It helps in aligning the efforts of the entire organization and provides a basis for decision-making. A well-structured plan enhances operational efficiency, resource allocation, and risk management, ultimately contributing to the overall success of the business in the dynamic Philippine market.

By incorporating these key elements into your business plan, you can create a comprehensive and tailored document that addresses the specific needs of ventures in the Philippines. This ensures that your document aligns with the local market dynamics, consumer preferences, and regulatory environment, increasing the chances of success.

1. Executive Summary: This section provides a concise overview of the business, its mission, vision, unique selling proposition, and key highlights.

2. Company Description: Describe the nature of the business, its legal structure, products or services offered, and the target market in the Philippines.

3. Market Analysis: Conduct a thorough analysis of the Philippine market, including market size, growth trends, customer demographics, and competitive landscape.

4. Marketing and Sales Strategies: Outline your marketing and sales approach, including pricing strategies, distribution channels, promotional activities, and customer acquisition plans.

5. Organizational Structure: Define the organizational structure of your business, including key management personnel, their roles, and responsibilities.

6. Product or Service Offering: Provide detailed information about your products or services, including their unique features, benefits, and competitive advantages in the Philippine market.

7. Financial Projections: Include financial statements, such as income statements, balance sheets, and cash flow projections, to showcase the financial feasibility and profitability of the venture.

8. Risk Assessment and Mitigation: Identify potential risks and challenges that may impact your business in the Philippine market and outline strategies to mitigate them.

9. Implementation Plan: Outline the steps and timelines for executing your document, including key milestones and resource requirements.

Step 1. Executive Summary

Provide an overview of your business idea, including your goals, target market, and unique value proposition for the Philippine market.

Step 2. Market Analysis

Conduct comprehensive research on the Philippine market, including customer demographics, buying behaviors, cultural nuances, and trends. Identify market gaps, competition, and potential opportunities specific to the Philippines.

Step 3. Business Concept and Value Proposition

Clearly articulate your business concept and how it addresses the needs of the Philippine market. Highlight your unique value proposition and how it differentiates you from competitors.

Step 4. Marketing and Sales Strategy

Outline your marketing and sales strategies tailored to the Philippine market. Define your target customers, pricing strategy, distribution channels, and promotional activities. Consider leveraging digital marketing platforms, local partnerships, and culturally relevant marketing approaches.

Step 5. Operational Plan

Detail the operational aspects of your business, including location, facilities, equipment, and production processes. Consider local regulations, permits, and licensing requirements that Philippines Laws may apply.

Step 6. Organization and Management

This document may indicate stability for your firm by demonstrating that you have planned ahead of time so that any issue can be resolved easily and quickly. This is very crucial for banks and other creditors who may be interested in investing in your firm.

Step 7. Product or Service Offering

Provide a comprehensive description of your products or services and how they meet the needs of the Philippine market. Highlight any customization or localization efforts specific to the local preferences and cultural context.

Step 8. Financial Projections

Develop realistic financial projections, including sales forecasts, expense estimates, and projected profitability. Consider local market conditions, pricing dynamics, and costs specific to the Philippine market.

Step 9. Risk Assessment and Mitigation

Identify potential risks and challenges that your business may face in the Philippine market. Develop strategies to mitigate these risks, such as contingency plans, partnerships, or diversification strategies.

Step 10. Implementation Plan

Create a step-by-step action plan outlining the tasks, timelines, and responsibilities for launching and operating your business in the Philippine market. Include milestones and measurable goals to track your progress.

ℹ️ Themis Partners legal experts also help you in your company registration so it helps you select the right type of company and ensure a full compliance to the Philippine Laws.

Writing an effective business plan for startups in the Philippines requires a focused and strategic approach. Begin by clearly articulating your business concept, value proposition, and target market, emphasizing what sets you apart from local competitors. Conduct thorough market research to understand customer needs and preferences, and tailor your products or services accordingly. Outline your marketing and sales strategies, incorporating digital marketing techniques and innovative promotional campaigns to reach and attract your target customers. Showcase your understanding of the local competitive landscape and explain how your startup will gain a competitive edge. Present a comprehensive financial plan with realistic revenue projections, expense forecasts, and a clear path to profitability. Highlight the qualifications and experience of your team, demonstrating their commitment to the success of the startup. By following these tips, you can create a compelling strategic roadmap that resonates with potential investors and stakeholders in the Philippines.

Market research and analysis play a critical role in developing a business plan for the Philippine market. It provides valuable insights into customer preferences, market trends, competition, and industry dynamics. Here’s why market research is important:

By incorporating comprehensive market research and analysis into your business plan, you demonstrate a thorough understanding of the Philippine market. This increases the credibility of your plan, enhances its strategic relevance, and positions your business for success in the dynamic and competitive Philippine market.

Financial projections and forecasting play a vital role in a business plan for ventures in the Philippines, providing a clear understanding of the financial feasibility and profitability of your business. To incorporate financial projections into your plan, develop realistic revenue projections based on market research and sales estimates. Estimate expenses comprehensively, considering operational costs, marketing expenses, and other relevant expenditures. Create a cash flow projection to track cash inflows and outflows, and conduct a break-even analysis to determine the point of profitability. Determine your financing needs and outline plans for raising capital, while considering sensitivity analysis to assess potential market fluctuations. By including comprehensive financial projections in your strategic roadmap, you demonstrate financial acumen, attract potential investors, and provide a strong foundation for decision-making and resource allocation in the Philippines.

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How to Start a Business in the Philippines

Last Updated on – Feb 9, 2024 @ 3:28 am

Starting a business can be daunting. Not all of us can afford to go to a prestigious business school to learn everything we need to know, but we’re all willing to share practical and useful tips to help you jump-start your business.

Nevertheless, Filipinos continue to be attracted to the concept of entrepreneurship. In fact, our research indicates that 27% of adult Filipinos choose “Starting a Business” as their top investment preference .

In this guide, we will provide you with a detailed step-by-step process for setting up your own business in the Philippines.

Here’s our comprehensive guide on the steps you need to undertake to start building the business of your dreams.

Step 1: Come up with a profitable business idea

Coming up with a business idea can be hard for both new and experienced entrepreneurs, so we’re giving you a few tips on how to generate profitable business ideas.

Solve problems. The best business ideas are the ones that aim to solve problems. You don’t have to save the world or end world hunger – just think of things that bug you about life or your community. If you think the food around your area sucks, that can lead to a business idea. Go start a food business that provides better-tasting food for the community.
Make or sell cheaper versions of an existing product. Often, a lot of products that are being sold to consumers are infinitely more expensive than they should be mainly because of branding . Smartphone cases are an example. Expensive brands would sell them for Php 1,000-Php 2,000 but we all know we can get cheaper ones for Php 200-Php 300 with non-famous brands.
Ask consumers. You can simply ask what consumers want. If you’re interested in bikes perhaps, just ask bikers what they mostly need that they can’t get access to. If you’re going to start an online business , maybe you could conduct an online survey.
Let go of originality. If for example you’ve found a way to create the next best thing like fidget spinners, that’s awesome. Points for you. But, as an entrepreneur, you don’t have to sell the most original thing. The person who created fidget spinners might be rich right now, but you can see off-brand fidget spinners everywhere, especially here in the Philippines. There are countless businesses that are just like others. So, let go of the desire to be original and you’ll be less frustrated about generating your business idea. Instead, think of a way to make the customer experience better .

You can also read our comprehensive list of profitable small business ideas in the Philippines .

Step 2: Conduct a project study (market fit & feasibility study)

Once you have a business idea, you would then need to conduct a project study. Relying on intuition alone can’t get your business flying.

A project study has three parts:

Market study – Determines if there is a demand for the product/service and its target market
Marketing study – Outlines the strategies to connect to the target market
Feasibility study – Determines if the project will be viable

Take your time in preparing the project study. If you have money to spare, hire a professional who can do market research for you. Once that is completed, you can hire an accountant to prepare a feasibility study .

Step 3: Create & prepare a business plan

All businesses need a map that would chart its course and will serve as a guide during times of uncertainty. This map is called your business plan .

A business plan is made up of these sections:

Executive Summary – This may appear first but it is actually written at the very last. It is the condensed version of what your business plan is and what it aims to achieve.
External Analysis – Overview of the industry and the economy
Internal Analysis – Overview of the company and its organizational structure
SWOT Analysis – Overview of the business’ strengths, weaknesses, opportunities, and threats
Business Goals and Objectives – What the business wants to achieve. What are its aims and targets?
Course of Action – This identifies the strategies that the business proposes to implement in order to achieve its goals and objectives.
Business Model/Framework – Lays out the system or set of processes that define the operation
Summary of Products/Services – Includes the various products/services being offered by the business
Marketing Models – Presents how the business plans to market and promote its products/services
Financial Projections – Discusses how you plan to finance the business

Related: 10 Best Business Books for Aspiring Filipino Entrepreneurs

Step 4: Choosing a Business Model

A business model refers to a company’s plan on how to make a profit. Understanding business models is extremely integral to the success of any venture. It’s a critical step that requires a deep understanding of the market, the industry, and the target customers.

Manufacturer Model

For this model, companies produce tangible goods which are sold to distributors or retailers. Their revenue primarily comes from the direct sales of products to consumers through various distribution channels.

Retailer Model

Businesses that follow this model get products from manufacturers or wholesalers. They are responsible for selling them directly to consumers at a markup.

Subscription Model

The subscription model involves selling products or services regularly for a set fee. Companies earn consistent revenue as customers pay to access the offerings during their subscription period.

Fee-for-Service Model

These businesses charge customers based on specific services. Customers pay for individual services tailored to their specific needs.

Freemium Model

In the freemium model, companies offer a basic version of their product or service for free. This will entice customers to use it. Then, additional premium features or functionalities are made available at a cost to generate revenue.

Affiliate Model

The affiliate model involves promoting or selling products or services from other businesses. Businesses with this model earn commissions for each successful sale made through their affiliate links or channels.

These are just some of the most popular business models you can follow. For more information on business models, take a look at this guide .

Business Entity Types in the Philippines

Aside from the model, choosing a type of business entity is also an important consideration. It can affect the way your business is taxed, the level of personal liability you have, and the amount of paperwork required. The most popular business entities include:

Sole Proprietorship

A sole proprietorship is the most common form of business entity. It is where a single person owns and operates the business. This person is also liable for all the debts and obligations of the business.

Partnerships – General and Limited

Partnerships are business entities formed by two or more individuals who agree to share both profits and losses. It can either be general or limited.

General Partnership

For this partnership, all partners share equal responsibility for the business’s debts and obligations, as well as have equal authority in decision-making.

Limited Partnership

A limited partnership has general partners who have full liability for the business and limited partners who have limited liability. The latter are not personally responsible for the business’s debts beyond the investment they put in the company.

Corporation

A corporation is a legal entity that is separate from its owners. It is formed by filing articles of incorporation with the government.

For corporations, shareholders have limited liability so their personal assets are protected from the debts acquired by the business.

Corporations may issue stocks to raise capital. They are also subject to specific regulations and governance structures.

Related: Popular Business Types in the Philippines

Step 5: Identify key business processes

You have to look at your business like a machine. A machine has different gears and parts that perform different specific tasks. Just like a machine, a business has business processes. They are your gears and parts that enable your business to operate smoothly.

A business process is basically an activity or series of steps and activities that will accomplish a specific organizational goal.

Business processes have different categories and these include:

Operational or primary processes – These deal with the core business and value chain. Operational processes represent essential business activities that accomplish business objectives such as generating revenue. An example would be taking customer orders and managing bank accounts .
Supporting processes or secondary processes – These processes back the core processes and functions within an organization. Examples of these are HR management and workplace safety. One key difference of supporting processes from operational ones is that supporting processes don’t provide value to your customers directly.
Management processes – These measure, monitor, and control activities related to business procedures and systems. Examples of these are communications, governance, strategic planning, budgeting, and infrastructure or capacity management. Like supporting processes they don’t provide direct value to customers.

As a business owner you have to identify the business processes you need for your business to operate. You need to figure out which tasks are important to your larger business goals .

Having well-defined business processes also helps in streamlining your operations for more efficiency. It also helps in streamlining communication between people/functions/departments. Basically, business processes prevent chaos from creeping into your workflow .

Check out : How to Create a Business Process

Step 6: Develop your value chain

Now that we’ve discussed business processes, let’s get into the value chain and what it means for your business. What is a value chain? A value chain is a set of activities that an organization does to create value for its customers.

The value that’s created and captured by the company is called the profit margin. The lesser the cost of creating that value, the higher your profit margin will be. Basically the value created is the output or your products/services.

Michael Porter created the model for the value chain. In his model, certain sets of activities are divided into two groups: primary value activities (inbound logistics, operations, outbound logistics, marketing and sales, service) and secondary or support value activities (firm infrastructure, HR management, technology development, procurement).

Instead of looking at departments or accounting cost types, Porter’s value chain focuses on systems and how inputs are changed into outputs purchased by customers.

Figure 1 from http://tracks.roojoom.com/r/10722

Primary activities

Primary activities refer to the physical creation, sale, maintenance, and support of products/services. They consist of the following:

Inbound Logistics – Processes related to receiving, storing, and distributing inputs internally. Your supplier relationships are a key factor in creating value here.
Operations – These are the transformation activities that change inputs into outputs that are sold to customers.
Outbound Logistics – These activities deliver your product or service to your customer, things like collection, storage, and distribution systems.
Marketing and Sales – Processes you use to convince customers to purchase from you instead of your competitors.
Service – These are the activities related to maintaining the value of your products/services to your customers once these have been purchased.

Secondary activities

These activities support the primary functions above.

Procurement (Purchasing) – This is what the organization does to get the resources it needs to operate. This includes finding vendors and negotiating best prices.
Human Resource Management – This is how well a company recruits, hires, trains, motivates, rewards, and retains its workers.
Technological Development – These activities relate to managing and processing information, as well as protecting a company’s base knowledge.
Infrastructure – This comprises a company’s support systems and the functions that allow it to maintain daily operations. Accounting, legal, administrative, and general management are examples of necessary infrastructure that businesses can use.

To develop your business’ value chain, here are the things you need to consider:

Step 1 – Identify subactivities for each primary activity.

There are 3 different types of subactivities:

Direct activities create value by themselves. For example, in a book publisher’s marketing and sales activity , direct subactivities include making sales calls to bookstores, advertising, and selling online.
Indirect activities allow direct activities to run smoothly. For the book publisher’s sales and marketing activity, indirect subactivities include managing the sales force and keeping customer records.
Quality assurance activities ensure that direct and indirect activities meet the necessary standards. For the book publisher’s sales and marketing activity, this might include proofreading and editing advertisements.

Step 2 – Identify subactivities for each support activity.

For each of the Human Resource Management, Technology Development, and Procurement support activities, determine the subactivities that create value within each primary activity.

For example, consider how human resource management adds value to inbound logistics, operations, outbound logistics, and so on. As in Step 1, look for direct, indirect, and quality assurance subactivities.

Next, identify the various value-creating subactivities in your company’s infrastructure. These will generally be cross-functional in nature, rather than specific to each primary activity. Again, look for direct, indirect, and quality assurance activities.

Step 3 – Determine links.

Find the connections between all of the value activities you’ve identified. This will take time, but the links are key to increasing competitive advantage from the value chain framework.

For example, there’s a link between developing the sales force (an HR investment) and sales volumes. There’s another link between order turnaround times, and service phone calls from frustrated customers waiting for deliveries.

Related: 11 Best MBA Programs & Schools in the Philippines

Step 7: Fund allocation

So you already have funding for your business . Question is how do you properly allocate it? Here are things to consider when allocating your funds.

Manage product development costs carefully. As much as you would want quality for your products/services, keep in mind that your profit margin will be higher if your cost of production is lower. Consider finding alternatives to the materials you need for your products or the equipment you need for your services.
Don’t spend too much on advertising. Although marketing and promotion are important, they can be a cash sink. As much as possible, find ways to advertise your business at a low cost or ideally for free. Social media sites are perfect for free marketing. Networking is another way to spend less on advertising. Meet with people and promote your business to peers. Hopefully they too will start promoting your products.
Always focus on growing sales. As a growing company it will be best for you to allocate your capital to people and assets that help increase your revenue. One of the first people you should consider hiring is someone who can help you with sales. Also, investing in an e-commerce portion of your website (or through a partnership) helps you increase both sales and profits as you begin to capture the full-retail margin.
Have a budget. Without a budget plan, it’s easy to spend on things that might seem important at the moment but in reality, you’re spending on something that might become more of a liability than an asset. Having a budget plan will keep you on track on which aspects of your business are truly essential.

Related: Cost of Doing Business in the Philippines

Step 8: Business name & identity

Now you have the foundations of how to start a business. You’ve got an idea of what your business would be and now you’re ready to name it. Your business name will represent who you are and what you will offer to your customers. Your brand name will be your identity.

Before anything else, do check if the name you’ve come up with is already in use by another company. A good way to do this is to search online for business name databases.

You can also just prepare a bunch of names, and once you register your business to DTI just pick one that they’ll say hasn’t been taken.

Here are things to consider when naming your business. You must ask yourself:

How does the name make you feel when you see or hear it? What you feel should reflect what you want your audience to feel or imagine. Do you want to be comforting, approachable, or serious and respectable? The name should also give a hint about the products/services you offer.
Can you market this name online? Choosing a catchy name can be helpful especially if your audience can relate to it. For example, with the meme culture dominating social media right now, using pop culture references for your name can be a cool idea. But do keep in mind that it must reflect the identity of your business.
How will this name work from a visual standpoint? Imagine your brand name on a website, tarp, and brochure – does it look appealing? Logo design will also affect your brand name and identity. Keep this in mind when naming your business and designing your logo.

We also recommend checking out StartHere PH’s guide on registering your business name online with DTI BNRS

Step 9: Register your business & legal requirements

Once you have a business name and know your organizational structure, you can now register your business. Here are the documents you need to secure:

name verification slip (can be secured at SEC Name Verification unit or online)
articles of incorporation or bylaws,
joint affidavit of 2 incorporators to change corporate name,
for non-stock only: List of members certified by the corporate secretary and list of the names of contributors or donors and the amounts contributed or donated certified by the treasurer
Form 1901 (mixed-income/self-employed)
Form 1902 (employees, non-residents, resident aliens)
Form 1903 (corporations and partnerships)Form 1904 (one-time taxpayer who just rendered business in the Philippines for a year)
list of business names
must be a Filipino citizen of legal age
fees apply depending on the scope of your business (Barangay: Php 200, City: Php 500, Regional: Php 1,000, and National: Php 2,000)
Cedula (Community Tax Certificate)
Application form
DTI Business Name Certificate
SEC Registration Certificate
Lease contract/tax declaration
Barangay clearance

Recommended resources:

How to register your online business in BIR & DTI
How to register and start a corporation in the Philippines

If it’s a big business such as a mall or restaurant then public liability insurance is also needed.

Step 10: Open a Bank Account for Your Business

After deciding on a business model and type of entity, the next important step is to open a bank account for your business.

This will enable you to manage your finances better and keep personal and business finances separate. Here are some tips to consider when opening a bank account for your business:

Research different banks and compare their offerings

Look for banks that specialize in small business banking or offer features that cater to your needs. Consider their fees, interest rates, and accessibility.

Gather the necessary documents

Banks need certain documentation before they can open an account for your business. You may be asked to submit the following:

Credit score information
Brand and company certifications
Business registration documents
Ownership and partnership agreements
Licensing information (if applicable)
Employer information

Choose the right type of account

There are different types of accounts offered by banks, such as checking, payroll, savings, or merchant services. Depending on your business needs, choose one or a combination of these accounts.

Fill out the application

Complete your bank’s application form with accurate information and make sure to review it before submission. Some banks may require an initial deposit to complete the account opening process.

Build a relationship with your bank

Your bank can be a valuable partner for your business, providing financial advice, loans, and other services. Make sure you choose a bank that you feel comfortable working with and that has a good reputation in the industry.

For more information on opening a business bank account in the Philippines, check out this in-depth guide .

Step 11: Recruiting & Hiring People

Hiring the right people is essential to make sure your business will grow . It can be difficult to find the right fit for your business, so here are a few tips on hiring.

Look for people with a commitment to their career. Find a person who’s passionate about their career, not just someone who switches careers for a higher salary. Always check a candidate’s job history. Their loyalty to their job or company will reflect on their resume.
Check compatibility. Your staff’s values should be aligned with your business’s values. If you’re a fun and creative tech company, find people who share the same interests and passion for tech. If you’re a serious accounting firm , find people who are logical and serious in dealing with numbers.
Keep improving your hiring process. Always find better ways to hire employees. Instead of asking magic bullet questions or irrelevant questions, focus on getting to know the capabilities, knowledge, skills , confidence, attitude, and potential of the candidate. When posting an ad for the job, always include the details regarding the tasks and responsibilities the position calls for and the qualifications for applicants. This way you’ll attract the more competent candidates and also have a checklist of things to consider when hiring someone.
Get other people to evaluate. It’s ideal to have an expert who can evaluate candidates. Consider getting an HR manager first.

Step 12: Create a website

Creating a website is difficult especially if you’re not someone who can code. If you can, great, this won’t be too much of a problem. If you can’t, you’ll have to get someone who can create a website for you.

But if this is something you don’t think is urgent, just creating a social media account can suffice for the meantime. That way you can still have an online presence and a platform where you can either sell, market, or promote your products/services.

But if you really want to create a website and you don’t want to get someone else to do it for you, consider checking out this step-by-step guide for beginners on how to create websites . Seriously, you can create your own websites even if you don’t know how to code.

With just a few clicks and some drag and drop, you can have your site published in just minutes. You would have to pay a monthly fee of $14 to keep the site running.

Step 13: Market & promote your business

Marketing and promoting have become interchangeable in the field of business. Technically they’re still different things.

Marketing basically is an objective discipline that involves the research, creation, pricing, testing, and distribution of a product/service. Promotion, on the other hand, is actually a part of marketing.

But put simply, both are the things you do in order for people to gravitate toward your product.

Now, in doing business, you must remember the 4Ps of marketing.

Product – A product can either be a tangible good or an intangible service that fulfills a need or want of consumers. You have to understand what you’re selling from the inside out if you want to be able to market it.
Price – How much you are going to sell your product will determine if you will make a profit. This is why market research is necessary – so you can find out how much your competitors are selling their products and decide how much you’re going to price yours.
Promotion – This involves the many strategies on how you will communicate your product to the public.
Place – Entrepreneurs will always say that business is about location, location, location. Finding a strategic place for your business is important if you want people to find you.

Check out: 50 Marketing Ideas for Filipino Entrepreneurs

Step 14: Taxation & Financial Management

Managing your taxation and finances is crucial for the success of any business. In the Philippines, taxes are the major source of revenue for the government and businesses are required to comply with tax laws.

Here are the various taxes you’re required to pay:

Value Added Tax

Value Added Tax or VAT is a tax imposed on the gross sales or receipts of goods and services in the Philippines. Businesses that have exceeded the threshold amount of P3 million in total sales for the past 12 months are mandated to register for VAT.

Income tax is a tax imposed on a person’s or business’s income. In the Philippines, businesses are required to file and pay income tax annually.

The amount of tax to be paid is based on the net income of the business. Partnerships and sole proprietorships can be charged up to 35%, while corporations can be taxed up to 25%.

Percentage tax

Those who are not subjected to VAT must pay 1% to 3% percentage tax on their gross sales.

Withholding tax

Withholding tax is a tax deducted by the company from the income of employees or suppliers and remitted to the government. This tax is required to be withheld and remitted on behalf of employees or suppliers by the company.

Financial Management Tips You Should Know

As a business owner, you must also be aware of the importance of financial management . Here are some tips you should know to effectively manage your finances:

Create a budget

Having a budget can help you allocate your resources effectively and make informed financial decisions. It can also help you make adjustments when unexpected expenses arise.

Keep track of your expenses

Keeping accurate records of your expenses can help you monitor your cash flow and identify areas where you can cut costs.

Separate personal and business finances

It is crucial to separate your personal and business finances to avoid confusion and ensure that you are properly recording your business transactions.

Monitor your cash flow

Cash flow is the lifeblood of any business. It is important to monitor your cash flow regularly to ensure that you have enough cash on hand to cover your expenses and invest in your business.

Invest wisely

When investing in your business, make sure to weigh the potential benefits against the costs. Consider the return on investment (ROI) and make sure that the investment aligns with your business goals.

Seek financial advice

If you are unsure about your financial management skills, seek the guidance of a financial advisor or accountant. They can help you develop a financial plan and provide valuable advice on how to manage your finances more effectively.

15 Useful Tips on Starting a Business in the Philippines

Offer what people want to buy, not just what you want to sell. Interest in your product might be important, but providing what your customers want and need is even more important.
Get cash flowing ASAP. Cash flow is the lifeblood of business and is absolutely essential to feed bottom-line profits. Find ways to jump-start cash flow immediately.
Always find new ways to keep costs low. Keep your expenses at the minimum so your profit margin will be higher. To conveniently track your business spending and ensure that you keep your expenses low, make sure you have access to financial tools like Spenmo ‘s expense tracker.
When planning, always overestimate expenses and underestimate revenues. Doing so will give you a financial safety net. u don’t want to run out of funds, so it’s good to always have extra cash.
Have a contingency plan and budget. Come up with a Plan B to keep your business running or recover quickly in times of disaster or crisis. You should also have money set aside that can cover unforeseen increases in operational costs or other unbudgeted financial needs.
Focus on sales and marketing. In business, nothing happens until a sale is made. From the get-go, you’ll need to find a good way to get leads, convert leads into sales, and make sure you keep getting repeat sales from your customers.
Find ways to exponentially increase profits. There are five factors that impact business profits: leads, conversion rate, average amount per sale, average number of transactions, and profit margin. If you can increase these while keeping your costs in check, you will run a successful business .
Test and measure everything. Figure out the best strategy to do your business. Test out different ways to sell, market, and promote your products/services.
Learn and improve. If you’ve never run a business, well you can learn by doing and through self-study. The key to becoming a successful entrepreneur is to never stop learning.
Don’t discount; add value. Whenever you discount, you are taking money directly out of your pocket and directly from your profit. So don’t do it. Instead, create added value propositions all the way up and down your product or service line.
Get a mentor. Find someone who can teach you the ropes and tricks in business.
Go and network. Business networking is important both in promoting your business and learning from peers. If you want to get ahead, you have to network.
Surround yourself with the right people. Doing business can be draining. You have to be with people that pull you up, not down.
Don’t be discouraged by setbacks. They will happen at one point or another. But when these happen look at them as challenges and not failures.
Don’t forget work-life balance . You can’t run your business properly if you’re burned out. Learn to find time to relax and be with your friends and family. Life isn’t all about money.

Related: How to Buy a Business in the Philippines

Your Business Checklist

Here’s a reminder of the things you need to have before you can launch your business:

Business Idea
Market Research/Study
Detailed Business Plan
Business Name/Identity
Legal Documents/Certifications
Fund/Capital
Marketing and Promotion Strategy
Taxation & Financial Management

Now with all of these in mind, you can now go and start your business!

Check out these other useful business resources from Grit PH:

38 Important Business Documents & Letters [with samples and templates]
How to Sell a Business in the Philippines
The Ultimate Guide to Business Valuation in the Philippines

Reader Interactions

January 30, 2019 at 12:13 am

Thank you for the creator/s of this site! This is helpful while you make money! Haha. Kudos! Cheers!

December 11, 2021 at 4:15 pm

According to the Philippines Small Business Association, it costs about 300,000 pesos or around $6,800 to start a business in the country. It’s important for Philippine businesses to find their target audience and market by region. Once you know where your clients are coming from you will need things like advertising through newspapers – remember that your region might have limited means of internet access so print-outs are essential.

Free business plan template

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Download a business plan template and start bringing your ideas to life. Choose a one-pager, or multi-pager. Or try Xero accounting software for free.

Business plan template with blank fields for users to fill out.

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Fill in the form to get a free business plan template as an editable PDF. We’ll send a one-pager and a multi-pager to choose from.

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Getting started with the business plan template

We’ll send you two types of business plan template – a one-pager and a multi-pager. Choose the one that’s right for you. They come with instructions to help fill them out.

Doing a business plan will improve your idea. It helps you think about your business from different points of view. The process will flag up unseen risks, but also new opportunities. Aside from helping refine your idea, a business plan will move it forward. It’ll give you a concrete set of steps to go from ‘I should’ to ‘I did’.

One-page business plan template

Great for making a start

Helps you pin down the main idea

Easy to update as things evolve

Multi-page business plan template

Ideal for nailing down the details

Required by most investors and lenders

Good if you face big startup costs

Tips to help with your business plan

Don’t obsess over every detail to start with. That will make the plan long and hard to change. Keep it short and concise initially.

Financing your business

Need cash to get going? Check out our finance guide.

How to finance your business

Starting a business

Check out our guide for information about getting started.

How to start a business

Find a bookkeeper or accountant

Accoutnants and bookkeepers can help build financial resilience into your business budgets.

Find a financial advisor near you

Plan on making business fun

Are you looking forward to the bookkeeping and accounting that comes with a new business? Na, we didn’t think so. Xero can automate a lot of that stuff away for you.

Xero does not provide accounting, tax, business or legal advice. This template has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.

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Starting a Small Business in the Philippines

Disclosure: Small Business Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments’ or businesses’ websites. Please get in touch with us directly for any discrepancies.

Starting a small business in the Philippines offers numerous advantages, such as tapping into a rapidly growing economy, abundant opportunities, and a large, diverse consumer base. By launching a small business, you have the chance to contribute to the local economy, create jobs, and fulfill your entrepreneurial dreams.

When to Start Your Small Business?

Where to start your small business, 1. identify your business idea, 2. conduct market research, 3. create a business plan, 4. register your business, 5. secure financing, 6. set up your business location and infrastructure, 7. build a strong team, 8. implement effective marketing strategies, 1. embrace digital transformation, 2. focus on customer service, 3. stay compliant with regulations, key takeaways.

Timing is crucial when starting a small business in the Philippines. Evaluate market trends, consumer behavior, and economic conditions. Consider launching your business during periods of high demand, or when the government is offering incentives to new businesses. Proper timing can significantly impact your business’s initial success and long-term sustainability.

Choosing the right location for your small business is a crucial decision. Conduct thorough market research to identify areas with high demand for your products or services. Consider factors like accessibility, foot traffic, and competition. Whether it’s a bustling city or a vibrant province, the Philippines offers diverse opportunities for small businesses .

How to Start Your Small Business: Step-by-Step Guide

Start by brainstorming and identifying your business idea . Assess your passions, skills, and experiences to find a unique niche that aligns with your interests and the Philippine market demands.

Validate your business idea by conducting comprehensive market research. Understand your target audience, competitors, and industry trends. Use this data to fine-tune your business plan and develop a winning strategy.

A well-structured business plan is essential for securing funding, outlining your business goals, and guiding your operations. It should include your business description, target market, marketing strategies, financial projections, and more.

Register your business with the appropriate Philippine government agencies, such as the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC). Complying with legal requirements will give your business legitimacy and protection.

Determine the capital needed to launch your small business and explore financing options. You can seek bank loans , apply for government grants, or attract investors who believe in your vision.

Find a suitable location for your business operations, whether it’s a physical store, office, or online platform. Invest in the necessary infrastructure and equipment to deliver your products or services efficiently.

Hire skilled and motivated individuals who share your vision and can contribute to the success of your small business . Foster a positive work environment and prioritize employee well-being.

Create a compelling brand identity and develop marketing strategies to reach your target audience. Leverage social media, content marketing, influencer partnerships, and other digital channels to boost your business’s visibility.

Tips for Small Business Success in the Philippines

Incorporate digital tools and technologies into your business operations to streamline processes, reach more customers, and stay competitive in the digital age.

Providing exceptional customer service is crucial for building brand loyalty and retaining customers. Listen to customer feedback and continuously improve your offerings based on their needs.

Regularly update yourself on relevant laws and regulations that affect your industry. Complying with legal requirements ensures your business operates smoothly and avoids unnecessary penalties.

Starting a small business in the Philippines is a rewarding endeavor if done strategically. By understanding the market, having a solid business plan, and embracing innovation, you can position your business for success in 2023 and beyond.

Remember, building a business takes time and effort, so stay persistent and continuously adapt to market changes. With determination, dedication, and the right approach, you can turn your small business into a thriving enterprise in the vibrant and dynamic landscape of the Philippines. Best of luck on your entrepreneurial journey!

If you’re ready to take the leap into entrepreneurship in the Philippines, don’t hesitate any longer. Start working on your business idea, conduct market research, and create a solid business plan. The opportunities await you – make your mark in the Philippines’ business landscape today!

sample of simple business plan in the philippines

Profitable Online Business Ideas in the Philippines

Navigating philippines business laws for entrepreneurs and business owners.

Allan Martinez

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Ultimate Guide in Creating a Business Plan in 2020

Starting a business is not a one-way street. It involves different processes that require analytical skills and logical thinking. It is also never easy to establish without enough knowledge, hard work, and attitude that lead people to patronize your idea, and eventually, the business itself.

Many aspiring entrepreneurs are asking: is there a secret recipe to perfect the business world? There will never be an objective answer to this question because, in reality, it is a mixture of both objective and subjective aspects.

One particular part of the objective is the business plan - the powerful document that serves as the backbone of every business. For us to understand what a business plan is, it is necessary to define its meaning, and we have it prepared for you.

Business plan definition.

The Importance Of Business Plan
Elements of Effective Business Plan

Executive Summary

Opportunity, company and management summary, financial plan, how to write a business plan, business plan vs. business model, failure rate without a business plan, business plan timeframe, pointers in creating the business plan, covid-19 and philippines businesses, your business plan amidst covid-19, free business plan templates for you.

Various sources and business organizations have defined business plans differently; however, when encapsulated in one thought, it refers to the written document that describes in detail the business’s objectives and goals, mainly, if it is a start-up company.

It also means laying out a forecasted roadmap that covers up the scope and limitations of every department in the company and bears different perspectives coming from the administration, marketing, financial, and operational standpoint.

The Importance of Business Plan

Knowing how a business plan works, it is now time for you to understand its importance and relevance in the business thoroughly. It is essential to know that a business plan is a gem for companies, and it is best if it is not misleading and confusing.

Simplified, a business plan is essential because it is used to attract investment, even if the company has no proven track record yet. At the same time, it guides the company to move forward in accordance with the set goals and expectations.

Elements of an Effective Business Plan

An effective business plan should not fail the stakeholders in providing complete information about the business. It must have all the necessary information needed so as not to mislead potential investors. Avoiding this problem can help you secure funds easier than usual.

If you do not know how to start creating a business plan, here are the six essential components of a well-done business plan that you should know.

The executive summary includes information that helps stakeholders understand the overall content of the business plan. In other words, it is an overview of the business, including the goals, objectives, mission, vision, projects, teams, and other departments. This section should be short and concise, usually around one or two pages. A typical executive summary is placed at the beginning of the document, but others prefer to put it at the end of the paper.

When you write the opportunity section, make sure that you answer these questions: What are you selling? How does this product help solve a problem in the market? Lastly, who is your target market and competition? It is necessary to provide comprehensive answers to these questions to address the audience and the market’s concerns right away.

The business plan's execution is focused on the steps you plan to undertake as you take the opportunity and turn it into a profitable business endeavor. This section must have the marketing and sales plans, including the operations, milestones, and critical performance metrics for success.

At this part of the business plan, you are given a chance to showcase your teams. Most investors are also particular about the kind of individuals that comprise your team, so it helps a lot if you can explain each group in a very detailed manner. If you still need to hire additional people, use this chapter to define who you need to hire and why. It should also contain an overview of your legal department and other information about the business that is not common knowledge, mostly if you are already operating.

A business is not complete without a financial forecast and source of funds. This is one reason why a business plan should have a detailed financial section, wherein you can lay the foundations of your financial plan. Such a plan usually includes the following: sales forecast, cash flow statement, income statement, and balance sheet.

The business plan’s appendix should only include references, additional product images, and supplementary information about the business and other sections. You can also add here additional reports, tables, diagrams, or illustrations that can support your entire business plan.

It is easy to take note and comprehend the overall idea of a business plan, but conceptualizing and writing one is not everyone’s cup of tea. Here are three fundamental aspects that you should consider in writing a business plan.

Keep it short but detailed.

Make sure that your business plan is not as thick as a law book. As much as possible, try to have at least a 30-page business plan, with up to 50 pages maximum.

Write it plain and simple.

Although writing a business plan seems like a technical task, it is best not to use jargon in your plan. If it is unavoidable, make sure you explain the terms in the simplest ways possible.

Observe proper grammar, spelling, and punctuations.

Just like any other types of documents, observing perfect grammar, spelling, and punctuations add plus points to your business plan. Ensuring that everything is well-written will prevent any misunderstanding between you and the stakeholders.

Moreover, if you think writing a business plan is not your forte, here are seven helpful tips that will help you:

1. Research thoroughly

Before starting your first draft, you must already have researched the business's necessary details, backed up by proven and correct data gathered through surveys and interviews or other methods available in the market.

2. Determine the purpose of your plan

It is also essential that you know the aim of the business plan. With this in mind, doing the plan will be a lot easier, and you will certainly be on track.

3. Create a company profile

Your company profile should also be ready so that you can input right away any necessary information from it. Having a detailed company profile also adds credibility to your business.

4. Document all aspects of your business

It is also suggested to document every process in your company so that it is already easy for you to write them down and elaborate when you write the business plan.

5. Have a strategic marketing plan in place

Every entrepreneur should consider this done as soon as possible since it is an excellent addition to the business plan. Having strategic marketing in place adds authenticity to the business since marketing approaches differ from one company to another and is considered a unique trait of your business.

6. Make it adaptable based on your audience

You do not want to write a business plan that your stakeholders cannot understand, especially for the investors. Hence, it is your responsibility to ensure that they recognize the plan’s importance at a glance.

7. Explain why you care

Most of all, a business plan should include information that expresses why you care about your business. At times, people may think you are only after income and fame. Hence, it will help a lot if you can explain well in the business plan why you are creating the business in the first place.

While most entrepreneurs do not get confused any more with a business plan and business model , some may still have this dilemma, especially when they are always about to start their entrepreneurial journey.

So, here is a quick differentiation between a plan and a model. A business plan practically lays out all the necessary information about a business, including those related to its administration side. Most of the time, the plan is used for funding purposes, while a model is mostly used to attract potential clients for the business.

On the other hand, a business model is the structure of the business itself. It explains how the company operates daily, what processes are used, and what protocols are followed.

There is an apparent difference between the two concepts, so you should not have difficulty differentiating both ideas. However, it would help if you remembered that the two could go hand-in-hand as soon as the business starts operating.

The likelihood of a failed business caused by having insufficient or no business plan has been discussed and supported by some studies performed by university students from universities worldwide. At the same time, although not in the Philippine setting, data from the Bureau of Labor Statistics in the United States of America revealed the following:

20% of small businesses most likely fail during the first year
30% of small businesses fail in the second year
50% of small businesses fail after five years in business
70% of small business owners fail in their 10th year in business

Moreover, it is emphasized the other reasons why businesses fail aside from not having an effective business plan. Among these reasons are the following:

There’s no market need for their services or products.
The business ran out of cash.
It does not have the right team to make the business run smoothly.
It has pricing and costing issues.
There is no business model.
It has poor marketing and customer service

In general, the timeframe in business planning refers to how far you are willing to go for your business’ future. Of course, it is given that you envision your business to grow and last for years, but sad to say, a business plan does not last forever. Instead, each plan covers only a certain planning period.

Business planning is an ongoing process that requires massive and in-depth research and benchmarking. Before thinking about the timeframe, it is essential to know that this continuous project does not simply end by completing it before launching the business.

Here are some factors to consider when scheduling your business plan’s timeframe.

You need to define how far out your planning horizon goes. At the same time, you must commit to achieve it within that set timeframe, but it should also depend on the kind of business and the pace at which your industry is moving. Remember that some businesses only need six months to prove their worth in the market.

Benchmark Years

The nature of the business itself is a defining factor that affects a business plan timeframe. For example, nonprofit organizations usually have a five or ten-year timeframe. For the rest, they can choose to adopt one-year, three-year, or five-year benchmarks.

For something that is not fixed at all, you should condition your mind that a business plan will constantly have revisions over time. You must consider it as a schedule only to follow so you can stay on track, but me mindful enough that it can be subjected to reviews and changes.

We know that setting goals and establishing measurable objectives are critical points of a plan. However, knowing these are not enough. planning. You have to be accountable in including specific milestones along the way. You can do this by month or weekly, but the former is more preferable than the latter.

Now, let us talk about the pointers to include.

Basically, you should be able to inform the stakeholders the purpose of the plan in a clear and concise manner - straightforward and substantial. It helps if the plan can provide answers to the following questions:

What is the type of business?
What is your main funding source?
What are your other planned fund sources?
What does the business need to stay operational?
How much is your operational budget?
Who are your customers?
How can you reach them?
What is your unique selling point?
How will you handle competition?
Do you have a prepared SWOT analysis?
What do you think are the major challenges?
How will you measure the success of the business?

The year 2020 has been a rollercoaster ride, especially when the coronavirus pandemic broke out. It wreaks havoc not only in our country but worldwide, affecting most of the countries’ economies.

With not much of a stable economy, the Philippines has been struggling to revive the dying economy and the businesses have started already to fall apart, with some of the entrepreneurs giving up against their will.

It is for sure that the implications of the pandemic in the country is devastating and it will take time to recover completely. Those businesses that have managed to survive should consider the following:

Continuously work on business plan
Adapt the “new normal” protocols
Focus on customer satisfaction
Continue being innovative

This time, it is important to know that a business plan is of equal importance and significance in helping you thrive in the business world.

So, what should your business plan look like during this pandemic? Here are some suggestions:

Understand that the aim of the plan is to guide you through an economy that is affected by pandemic.
Set realistic goals and objective insights.
Consider the pros and cons of starting a business at this time.
Consider the limitations that can affect the business.
Check and research if some border restrictions can affect your supply chain and other supplies needed for the smooth operation of the business.
Define who are your target customers.
List your competitors.
Your action plan in relation to the “new norm.”
Follow the other points as indicated in a normal business plan.

Indeed, it can be a lot easier to have a ready business plan template in place, but we still recommend you to have your own outline. If this does not sound feasible to you, we have listed some downloadable templates you can use.

BPlans.com Score.org Startuploans.com

In a nutshell, a business plan is a company’s important document that provides clear and specific information regarding the business and its operations. It has different essential parts to include, so always ensure that your plan has all of them; otherwise, it is only a document without any meaning at all.

Keep yourself updated with the latest franchise articles by subscribing to our newsletter . You can also sign up with us for free if you are an interested franchisor or commercial space owner .

Ultimate Guide to Franchising

Avoiding scams, making smart investments, and better decisions.

The franchise industry is booming, and entrepreneurs are wondering about how this sector works. This ebook aims to help aspiring franchisees achieve their business goals.

Disclaimer: Franchise Market Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments' or businesses’ websites. Please get in touch with us directly for any discrepancies.

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Business Plan Sample, Management, Ideas, Proposal and Philippines Franchising

Yes, we know that we are not an authority with small business as well as big investments in the Philippines but we sure have gone through to a lot of marketing and management stints ourselves owning different kinds of small community-based investment near our home as well as online.

We might have never done catering but we have done a carinderia-type of "negosyo" in our home in Caloocan. We cook the food, go to the market to buy ingredients and more.

We've done a lot of computing our return on investment and we've also done balancing our finances and listing our daily expenditures as well as total sales and done minus and plus from "puhunan" or investment total for the day vs total sales minus the expenditures from manpower and labor to raw materials to maintenance to electricity consumption and food allowance and yes, even the small outs and ins of money is being computed each and everyday of our life managing a small eatery in the Philippines.

To some or most of you, this could be just a small time investment system but it means a lot to us to be able to cope up with the trends in the community as well as cope up with the basic to the most complicated problems of managing, accounting and doing inventory. We even have our own small ledger where we keep our records for daily total sales to expenditures in all aspects of business.

We were successful on this one until we all ran out of passion to cook and sell cooked meals in the community eatery we manage. I must say it's so tiring to do it and the rewards are not as quick and big as we thought so I as the father got back to managing my own electronics shop which grew to 3 branches - one home based and 2 with rented stalls. Again, I succeeded on this until I couldn't handle all the stress of working while doing the management with a couple of other friend investors who took time trying to cheat on the electronics shop earnings every once in a while which I learned later on because of my own system.

Small Business Investment Ideas

I can implement needed changes and analyze pitfalls and loopholes and problems that cause certain impact on a business I have venture and invested in to in the past.

In short, I have quite a lot of small investment ideas to give you so you can try them out but please, before anything else, only invest in something you really and wholeheartedly love. Never venture on anything to invest in to without knowing about its nature. Successful people knows this and it is no big secret in the industry anymore so don't experiment with your investment capital or you will eventually loose the race. Believe me, it's the most basic principle in investment that I have followed and believed in and I didn't know it at first until I began searching and found out why I have always succeeded in my ventures being a Pinoy entrepreneur. I remember having a friend in the business of driving school investment. He did it on his own and I would like to see myself as one too from then on.

List of Philippines Business Franchise

If you really want to know what is franchising and how to purchase a franchise, please, make your study first. It's not enough that you know that a product sells and if you invest on it, you will absolutely succeed. Remember that in 2 excellent college students with the same academic excellence, there will always be a more successful one than the other.

The same thing goes for Philippines business franchising . It does not necessarily follow that if a product sells, it will perform the same with your franchise as compared to the original. There are so many factors on it and one is to make a sample plan and present it to your partners for deliberation and planning.

List of Food Cart Franchise Business Options

Things you need to know about food cart franchise are fees (cheap choices included), is the stall or foodcart and other utensils included?, are materials and supplies available all the time?, franchise agreement inclusions and specifics, franchise duration (if there is any) crew training, franchise materials, construction of your cart and more.

Sample Franchise Contract / Agreement Free Download

Philippines top 100 corporations to invest business with in 2014.

So here is the initial updated BIR list of 2014 top 100 corporations (50 top tax payers) and multi national companies that you can target investing or have business with in any way or another this year.

Manila Electric Company
Petron Corporation
Pilipinas Shell Petroleum Corp
TI (Philippines) Inc.
Malayan Integrated Industries Corporation
Nestle Philippines Inc.
Toshiba Information Equipment (Philippines) Inc.
Mercury Drug Corporation
Smart Communications Inc
San Miguel Foods Inc.
Philippine Long Distance Telephone Company
Chevron (Philippines) Inc.
Philippine Airlines Inc.
BDO, Unibank Inc.
Globe Telecom Inc.
Toyota Motors Corporation
San Miguel Brewery Inc.
Zuellig Pharma Corporation
Coca-Cola Bottlers Philippines Inc.
Philippine Associated Smelting and Refining Corporation
SunPower Philippines Manufacturing LTD.
American Power Conversion Corporation
Bank of the Philippine Islands
National Grid Corporation of the Philippines
Puregold Price Club Inc.
Tsuneishi Heavy Industries (Cebu) Inc.
South Premiere Power Corp.
Metropolitan Bank and Trust Company
Unilever Philippines Inc.
Supervalue Inc.
Cebu Air Inc.
First Gas Power Corporation
San Miguel Energy Corp.
HHIC Phil Inc.
San Miguel Corp
Jollibee Foods Corporation
Samsung Electronics Philippine Manufacturing Corporation
United Laboratories Inc. - UniLab
Monde Nissin Corporation
Travellers International Hotel Group Inc.
Dole Philippines Inc.
Philippine American Life and General Insurance Company
Mitsubishi Motors Philippines Corporation
Chevron Malampaya LLC
Robinson's Supermarket Corporation
Super Shopping Market Inc.
Total (Philippines) Corporation
Accenture Inc.
Holcim Philippines Inc
Philippines Gov
Business Ideas
Agri Philippines
Filipino Recipes
Philippines Jobs
Philippines Travel
Philippine Resorts
Philippines Hotels
People and Culture
Education Courses
Philippines Festival
Organic Store
Health Wellness
Credit Cards

Enjoy Philippines

Filipino Songs
Manila Venues
Philippines Photos

Pinas Geography

Manila Tour
Philippines Maps
Weather Forecast

PHILIPPINES

LOANS PHILIPPINES

Beauty Products
Clothing & Apparel
Food Business
Laundry Shop
Small Stores
Water Refilling Station
Business Registration
Marketing Strategy
Human Resources
Laundry Business Plan Philippines (Sample + PDF Template)

By Yesh Quijano

November 22, 2023

woman holding a business plan for laundry

Starting a laundry business can be a profitable venture, allowing you to become a successful entrepreneur in a recession-proof industry. Planning, preparation, and a strong business plan are essential to achieving success in this venture.

Key takeaways

A comprehensive laundry shop business plan in the Philippines must include a detailed market analysis, customer segmentation, and a clear competitive strategy.

Financial projections, funding requirements, and operational milestones are crucial for attracting investors and/or securing a business loan.

Your laundry business plan should offer a unique value proposition and a robust marketing strategy to stand out in the Philippine market.

Parts of A Business Plan For Laundry Shops

Executive summary.

Whether you are considering a sole proprietorship or another form of business structure, this executive summary will provide you with a clear overview of the key components needed to create a solid foundation for your laundry business.

Here are some parts of a detailed executive summary:

First and foremost, it’s essential to identify your main objective. Are you planning to offer convenient, high-quality services, targeting busy professionals and families? Are you aiming to provide low-cost, efficient services to a diverse clientele? Or are you simply aiming to be the best service provider in your area?

Whatever your focus may be, understanding your target market and their needs will help you tailor your offerings and increase the likelihood of success.

Get a full business plan for your laundry shop for only PHP199 Buy Now

Your facility’s location will play a significant role in attracting your target customers, so choose a site with high foot traffic and easy access to public transportation. Additionally, it’s crucial to invest in durable, energy-efficient equipment to reduce utility expenses and extend the life of your machines.

Pricing Strategy

In a successful laundry business, having a well-thought-out pricing strategy is critical. Assess your target market and the level of competition in your area, then determine a pricing structure that strikes the right balance between affordability and profitability. Offering special promotions and loyalty programs can also help set you apart from the competition.

Marketing Plan

Marketing your business effectively is another crucial aspect of success. Utilize both digital and traditional marketing channels, including social media, local print and radio advertisements, and community events to raise awareness of your brand and services.

Consistently engaging your audience and fostering relationships with target customers will help establish your business as a trusted, go-to laundry service provider.

Standards of Hygiene & Customer Service

Lastly, keep in mind that it’s essential to maintain high standards of cleanliness and customer service. Your staff should be well-trained, friendly, and attentive to your customers’ needs. By providing a pleasant, efficient, and convenient experience, you can foster customer loyalty and build a strong reputation within your community.

Company Overview

Your laundry shop business plan should cover a general description of your brand, its history, and a summary of services. Below is a sample Company Overview:

Who is Labada Luxe’s Clean Laundry Shop?

Labada Luxe’s Clean Laundry Shop is a premier laundry business offering top-notch services to cater to your laundry needs. By choosing to start your own laundry business with Labada Luxe, you’re investing in a proven system and a brand that represents quality and customer satisfaction.

With an unwavering dedication to cleanliness and customer service, you can trust Labada Luxe to provide a reliable, efficient, and professional solution for your laundry requirements.

Labada Luxe Laundry Shop History

The journey of Labada Luxe began with a simple mission: to provide a convenient, affordable, and quality laundry experience. Over the years, the business has expanded and fine-tuned its operations, perfecting the art of managing a successful laundry business.

Today, Labada Luxe Laundry Shop stands as a proud symbol of innovation and customer satisfaction in the laundry industry. Your choice to venture into the world of laundry with Labada Luxe is a decision backed by extensive experience, strong support, and a loyal customer base.

Labada Luxe Laundry Services

Labada Luxe offers a range of laundry services to cater to various customer preferences. The services include:

Wash and Fold: A standard service for everyday laundry needs, ensuring your clothes are clean, fresh, and neatly folded.

Dry Cleaning Services: Treating delicate and specialty garments with extra care to maintain their condition and appearance.

Commercial Laundry: Catering to the needs of businesses and large-scale customers, such as hotels and restaurants, by providing professional-grade laundry services.

With Labada Luxe’s Clean Laundry Shop, your laundry business is backed by a comprehensive range of services, a solid reputation, and a history of success. Embrace the opportunity to be part of an exceptional brand with a bright future.

Industry Analysis

In the laundry shop business, understanding the industry is crucial for creating a successful business plan. As a service provider, you must be knowledgeable about the market, competition, and customer preferences.

Growth Factors

The laundry industry’s growth is driven by various factors, including increased urbanization, busy lifestyles, and the need for convenience. These factors contribute to a higher demand for efficient and professional laundry services.

Technology advancements also play a role in shaping the industry, with new equipment and software solutions emerging to streamline the laundry process.

Services & Service Provider Types

To excel in the laundry business, focus on offering high-quality services that cater to a wide range of clients, such as busy professionals, families, and students. Keep track of industry trends, consumer preferences, and potential opportunities to stay ahead of the competition.

Be aware of the different types of laundry service providers in the market. Some may specialize in particular niches such as eco-friendly cleaning, while others focus on a specific kind of clientele or offer additional services like ironing and folding. Identifying your target audience and tailoring your services will give you a competitive edge.

When it comes to choosing the right equipment for your laundry shop, efficiency and durability are essential factors to consider. Investing in high-quality, energy-efficient washers and dryers, or self-service machines will not only save you money in the long run but also appeal to environmentally conscious customers.

Customer Analysis

Demographic profile of target market.

In developing your laundry business plan, it’s crucial to analyze your target market’s demographic profile. Focus on working professionals, as they typically have a higher disposable income and are more likely to require laundry services due to their busy schedules.

Consider factors such as age, income, and household size in determining your target demographic. For example, younger professionals in their 20s and 30s may have different laundry necessities than those in their 40s and 50s. Additionally, the number of people in a household may affect the volume of laundry generated.

Customer Segmentation

Once you’ve identified your target demographic, segment your customer base to better tailor your services. Here are two groups to consider:

Working Professionals : These individuals have demanding jobs and minimal time to spend on chores like laundry. Offer services that cater to their needs, such as pick-up and delivery options, quick turnaround times, and convenient payment methods.

Families : Although not everyone falls into this category, households with multiple members might require larger capacities for laundry services. Offer family packages, discounts, or promotions to attract this customer segment.

Competitive Analysis

When starting your laundry business, understanding your direct and indirect competitors is essential for success. Analyzing the market will give you insights to shape your own business strategy and differentiate yourself from your competitors.

Direct Competitors

Direct competitors are other laundromats in your area. Begin by researching their services, prices, and unique selling points. Visit their facilities to get a feel for the cleanliness, wait times, and customer interactions, which will help you determine your advantages.

Look for unmet needs in the market that your laundry can address, such as extended opening hours or eco-friendly washers and dryers. To keep track of your competitors, consider creating a table with the following information:

Competitor Services Prices Unique Selling Points Example

Indirect Competitors

Indirect competitors include washing and folding services, dry cleaners, and even charitable organizations that offer laundry services for low-income or homeless individuals. Assess the services they provide and think of ways your business can complement or outshine them.

For example, offer pickup and delivery services for a fee or collaborate with a nearby dry cleaner to provide a one-stop shop for customers.

Building strong competitive advantages over your rivals is of utmost importance. You could differentiate your laundry business by investing in state-of-the-art equipment and technology, such as mobile apps for booking, monitoring machine usage, and making payments.

Additionally, consider offering loyalty programs that reward your customers for choosing your services, or special discounts during off-peak hours to make your business stand out.

Brand & Value Proposition

In starting your laundry business, it’s essential to have a clear brand and a strong value proposition. Your brand should be easily recognizable and reflect the quality of service you provide. A well-defined value proposition sets you apart from competitors and attracts customers.

One effective marketing strategy to establish your brand is to create a logo and use it consistently across various platforms, such as signage, promotional materials, and social media. Additionally, investing in professional photography can greatly enhance the visual appeal of your promotional content.

Focus on promoting your unique selling points, such as competitive pricing, fast turnaround times, eco-friendly practices, delivery, or superior customer service. This will ensure that your target audience appreciates the distinct benefits of choosing your laundry business.

Promotions Strategy

To expand your reach and attract customers, consider implementing various marketing strategies. A combination of online and offline promotions can maximize the impact of your efforts.

Here are a few marketing strategy ideas to consider:

Develop a user-friendly website to showcase your services and facilitate easy booking for patrons.

Utilize social media platforms, such as Facebook and Instagram, to reach your target audience and share updates and special offers.

Offer incentives like discounts and referral programs to encourage customer loyalty and word-of-mouth advertising.

In addition to online marketing , don’t forget traditional offline methods. Running a major newspaper ad campaign, for example, is a powerful way to reach a local audience. Depending on your target market, you might also consider:

Distributing flyers and brochures in high-traffic areas.

Partnering with local businesses and residential complexes to offer special deals and increase your visibility.

Sponsoring community events to strengthen your brand’s presence and connect with potential customers.

Operations Plan

Operation functions.

Your laundry business’s success will be based on a well-defined Operations Plan . As you create your plan, focus on the business model you’ll be following. Laundromats require less manpower but may need frequent maintenance checks.

To effectively run a self-service laundromat, prioritize these operations functions:

Location selection: Find an ideal place near residential areas or places with high foot traffic. Ensure the location provides an enjoyable atmosphere.

Equipment and maintenance: Invest in high-quality machines and ensure they operate smoothly.

Hygiene and safety: Regularly clean the premises and establish health and safety protocols.

Workforce: Hire competent and laundry attendants.

Set achievable milestones to help your laundry business grow:

Research phase: Understand the market, competition, and potential customers.

Business setup: Create your business plan, secure funding, and select the location.

Procurement and installation: Buy and install the laundry equipment.

Promotion and opening: Plan a grand opening event and promote your business through various channels.

Financial Plan

As you start your laundry business, it’s important to have a solid financial plan. This will not only set you up for success but also help you make informed decisions as you navigate the journey of entrepreneurship.

Key Revenue & Costs

Your main source of revenue will be from your laundry services. This can be broken down into various categories, such as:

Washing and drying : Charging customers for the use of your machines.

Pick-up and delivery : Offering convenient options for busy customers.

Additional services : Ironing, folding, and dry-cleaning.

Your business expenses can be categorized as follows:

Startup costs : These include licensing, permits, and equipment purchases.

Operational costs : Rent, utilities, and payroll for employees.

Maintenance and repair : Keeping your machines in top condition is crucial to the success of your business.

Consider conducting market research to determine the best pricing strategy for your services, keeping in mind your competition and target market.

Budget Requirements and Use of Funds

When starting your laundry business, it’s vital to determine how much funding you’ll need. Break down your use of funds into categories like equipment, renovations, and working capital. This will help you determine how much of your own capital you require, and whether a business loan or investment might be necessary.

Financial Projections

Create a detailed financial forecast for the first few years of your business. This should include monthly projections for revenue, expenses, and profits. Your financial projections will serve as a roadmap for reaching your goals and can be adjusted as your business evolves.

Income Statement

Prepare an income statement outlining your expected revenues, cost of goods sold (COGS), gross profit, and operating expenses. This will allow you to track the profitability of your business and make informed decisions regarding expansion or cost control.

Balance Sheet

A balance sheet is essential for tracking the assets, liabilities, and owner’s equity of your business. By regularly updating your balance sheet, you’ll have a clear understanding of your business’s financial position and can make necessary adjustments as needed.

Cash Flow Statement

Your cash flow statement will detail all cash inflows and outflows, helping you monitor your business’s liquidity. This is crucial for ensuring you have enough funds to cover operating expenses and any unexpected costs.

Laundry Business Plan FAQs

What is a laundry business plan.

A laundromat business plan is a comprehensive document that outlines your goals, strategies, financial projections, and action plans for starting and operating a successful laundry service. This document serves as a roadmap, guiding you through each decision and providing a clear understanding of your enterprise model.

Crafting a well-thought-out plan helps you identify potential challenges and opportunities, ensuring a more efficient use of resources and a higher likelihood of success.

What are the Main Types of Laundry Businesses?

There are several types of laundry businesses that you can consider for your venture:

Self-service laundromats: Customers use coin-operated machines to wash and dry their own laundry.

Full-service laundries: You offer washing, drying, and folding services on behalf of your customers, often charging per pound or load.

Dry cleaners: These businesses focus on cleaning delicate fabrics and garments using specialized cleaning methods and chemicals.

Mobile laundry services: Customers schedule pickups and deliveries through an online platform or phone, and you provide convenient services by collecting, washing, and returning their laundry.

How Do You Get Funding for Your Laundry Business Plan?

To secure funding for your laundry business, you will need to present a solid business plan that demonstrates the viability and potential profitability of your venture. Potential funding sources include:

Personal savings: Using your own money can be the fastest and easiest option.

Bank loans: Apply for a loan from a bank or credit union. Be prepared to provide detailed financial statements and a strong credit history.

Investors: Seek out individuals or firms that may be interested in investing in your business in exchange for equity or debt.

What are the Steps To Start a Laundry Business?

We have a full guide here on how to start your own laundry service. Or you can visit our laundry shop category for more information.

Where can I get a Laundry Business Plan PDF Template?

Want to have your own business plan? We offer affordable business plan templates for laundry services! Check out this link to get your own laundromat business plan template for only PHP199.

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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Carinderia business plan (with pdf).

Food & Beverage

A carinderia business may be attractive and seemingly easy to set up: have a stall near your house, few tables and chairs, adequate cooking equipment and utensils and a good cook might be all you need to get started. But it’s actually a tough business to manage with low margins and factors that are hard to control. That is why, just like in any other business venture, careful planning and execution is key to getting the carinderia business off the ground and get started. A misaligned priority or missing out on a key component of the business could easily shut it down. So we came up with this basic business plan for those interested but unsure if carinderia business is the way to go. Just because you like the business does not always mean it’s meant for you. Thorough research and sufficient business support are needed.

Table of Contents

Market research

Was the idea of establishing your business borne out of your passion to cook? Was it because a vacant stall in the public market seems suitable to set up your carinderia? Or was it because you hear so many people complain about not having enough meal choices in your neighborhood? If you tick any of the above boxes, you’ve got the potential to get started but not enough to steamroll with the carinderia bandwagon.

Which segments do they belong to (low-wage workers, office workers, housewives, students, drivers, seasonal workers)?
What is their corresponding buying power?
Do they tend to be loyal at a specific eatery or can easily be swayed of their choices depending on available food, season, weather, etc?
Are they encouraged to eat out or can easily switch back to prepared meals if provided with the opportunity?

Existing carinderias in the neighborhood . Identify them and ask yourself and others about them:

Do they serve a good variety of food for customers ?
Do they operate 24/7 or only during lunch/dinner or a certain times of the day?
Do they operate as a legitimate business or behave like an extended table serving home-cooked meals?
Do they source their materials from sustainable
Do you or others have a good impression of them in terms of sanitation, food taste, price point, general ambiance, and customer service?
Do they have generally favorable sentiment from customers?
What are their advantages and disadvantages?

Urban planning and development. Think about what the neighborhood would look like in the next five to ten years.

Are there proposed landmark buildings, infrastructure projects, new business establishments, or public projects forthcoming?
Are there new schools, residential buildings, hospitals, or transport rerouting planned?

Available resources. This is key to sustaining the needs of your carinderia business.

Are suppliers available nearby and accessible without investing a significant amount of money or time? They include meat, poultry, vegetable, seafood, or fruit dealers.
Are there cheaper alternatives you can explore such as wholesalers who can give you better deals and stronger business relationships?
Is it easy to find workers like waiters, dishwashers, cooks, assistants, cleaners, and cashiers who can augment the needs of a growing business?
Is the power supply stable and does not require you to procure generators in case of a power failure?
Is the water supply stable and does not require interruptions?
Do you have existing materials and equipment such as fridges, freezers , or gas stoves that can be used and reduce initial spending to set up the carinderia business?
Is there an ample disposal area to discard material waste?

Financial ability and literacy. This is what everyone wants to discuss when planning for the business so this must be very important.

Will you use your personal savings to invest in the business?
Do you need to borrow money to finance the business?
Do you have a credit line to use as a lifeline in procuring necessary materials?
Do you or a partner have a background in accounting and basic concepts of cash flow?
Are you familiar with the business licensing, taxes, wages, and benefits that go with the carinderia business?

Hopefully, the list provides a sufficient understanding of how suitable you are to pursue the business. This research is helpful not only for the business but also to prequalify you as a player in the business. Without due diligence and enough market know-how, challenges that would have been anticipated in this initial research stage could emerge down the road and it’s more difficult to back down and make hard choices.

Capital money

Some sources say us included, that a P15,000 investment will be enough to start the business, maybe as a food delivery business instead of a full-fledged carinderia entity. With limited capital money to buy bulk inventory of ingredients, food will be cooked in smaller portions, and orders are delivered to homes instead of accepting dine-in customers. But even before operations can begin, administrative expenses should be considered: barangay permits, rental fees, and so on. Profits will be minimal at around 5% depending on how you source your ingredients or save on costs (more on this later below). Breaking even will depend on your setup. If you are mostly utilizing your own resources such as vacant space in the backyard instead of renting a space in the market or family members helping out instead of hiring an extra hand, a significant amount of your capital expenses can be used for production. This counts utensils, cooking equipment, meat and seafood produce, vegetables, and condiments. Spending your capital money on a formal venue like a market stall may be more expensive but it also signifies your long-term commitment to the business. When the business falters when you find out your backyard does not have enough foot traffic, it’s easy to fold because you are less dependent on external factors. Hiring an experienced cook will help guarantee food quality especially if family members are less skilled or less committed to working for free for the family business. So it doesn’t mean that if you’re investing less in setting up your eatery business, you’ll more likely to succeed. Likewise, if you borrow a huge amount and are heavily invested in a proper venue, you’ll be less likely to prosper.

Carinderia design

The design of your eatery business will ideally evoke the character of your business: friendly and inviting, a place to relieve the cravings of a hungry stomach, and doubles as a place of socialization. Of course, we all imagine great designs as below with fancy design and bright, airy atmosphere. But we also think of practicality and associated costs. We ask ourselves:

Do our customers stay long enough to marvel at the interiors or do we simply want them to spend half an hour so more customers can come in and eat?
Do we wish to establish our presence as the talk of the town and generate word of mouth or even get featured in local magazines or TV shows?
Do we have enough resources to execute our design plan? Money to pay a good interior designer. Materials to put brilliant design ideas into life.
Are our ideal designs applicable to the neighborhood we wish to operate in terms of practicality such as comfort, ease of access, and efficiency in managing incoming and outgoing customers?

Nonetheless, let’s explore some inspiration designs for small food kiosks that can be applied to your carinderia.

Manpower resources

Managing a carinderia business can range from an all-around cook/dishwasher/accountant/procurement officer to a full team of specialized roles. Depending on the scale of operation and number of customers that can be accommodated at any given time, here are some of those specialty roles: Cook – the heart and soul of the carinderia business. He or she conceptualize which types of food appear on the menu, handpicks the ingredients, slices them accordingly, and does magical things in the kitchen. Whether honed by skills passed on in the family or acquired in a culinary school, the cook’s masterpiece will be significant in customer loyalty and the carinderia’s reputation. Manager – often the owner of the carinderia business, he or she oversees the overall operation of the business. From ushering in customers inside to ensure a steady supply of food choices in the tray, he/she attempts to troubleshoot problems and achieve harmony in the operation. The manager can also dabble into cleaning up tables, assisting the cashier, verifying supplier deliveries, and makes quick resolutions on issues that may arise. Cleaner – this person ensures that the sanitation of the carinderia is in top shape. The cleaner makes quick work of tables and prepares them for the next customer. He or she ensures that leftover soft drinks, plates, and discarded food are away from the eyes of the public as soon as possible and makes prompt disposal of garbage. After operating hours, he or she makes a thorough cleaning of the carinderia: floors, tables and chairs, food shelves, kitchen and cooking area, and lastly, the toilet. Dishwasher – this role extends beyond cleaning dishes and other tableware, glasses, and cooking utensils during business hours. After hours, the role of the dishwasher will transform to that of the cleaner. This separate role manifests the importance of making the tableware clean; a singular presence of blemish can tarnish the reputation of the carinderia. This is especially crucial if the eatery relies on handwashing and without the help of a dishwashing machine. Cashier/Accountant – this person takes charge of the finances of the business. He or she collects customer bill payment, looks at the inventory of materials, analyze which menu items are profitable or loss-making, makes suggestions on the menu from a profit perspective. He or she also looks after the cash flow management and makes tight monitoring of expenses (LPG supply, electricity/water bills, supplier invoices, salary/payroll, and taxes and permits ) against income. Utility person – this person does everything not defined from the above list. This role can assist the above jobs or tasks that are not anticipated in the operation. He or she helps arrange the delivery of meat/veggies of suppliers, replaces broken bulbs or faucets, orders extra rice from other restaurants or condiments from the supermarket if supply is short, or keeps an eye on customers who try to steal items like cutlery.

Keeping carinderia operation costs low

In a business known for razor-thin margins, keeping operational costs low is key. There are expenses that you cannot avoid (permits, raw materials, equipment, and labor), but you can keep them low without resorting to unlawful practices to get the bottom line.

Location. Rental costs cover a significant amount in a daily expense, so if you can set up in a space you own, that saves up a lot of money. It can be a small space at the beginning, as you start to attract loyal customers and build your carinderia’s brand. You can later move to a more prominent location and expect your loyal customers to follow.
Labor. Employing family members can help mitigate labor costs, but it’s also important to realize that even if they are not working for free, and must be compensated in some shape or form. Their presence helps minimize expenses that would otherwise go to a skilled and experienced worker, but their lack of know-how can also be detrimental to the carinderia operation. If they lack exposure to the job, family members can fill roles (dishwashing, cleaning) that are not specialized (cooking, accounting).
Materials. Will you require high-end meat cuts to achieve premium taste or do lower-grade meats still do the job? Will you use ceramic which is more stylish and food safe or plastic plates that are less risky to damage or breakage?
Buy equipment at second-hand shops, shops winding down, or nearby auction events. This includes fridges, cooking utensils, tables, and chairs. Buying brand-new ones minimize the risk of breakdown, but if you know how to examine the quality of say, a freezer or the safety of a gas stove offered at a second-hand shop, you can save lots of capital money.
Rent items you don’t need to buy outright. Tables and chairs are classic examples. Once you’ve grown the business, you can replace these with more appropriate dining furniture.
No freeloaders. Except for family members, do not allow anyone else to dine at the carinderia without paying. You are running a business and not a charity so your decision must be respected.
Marketing the business. Will you advertise in your local newspaper or promote it on Google My Business? Are you investing in great-tasting food and planning to make each customer the salesperson in a word of mouth advertising? Are you willing to offer discounts to customers for an honest positive review online? Or do you wish to get the attention of influencers promoting your carinderia in their Instagram feed or YouTube channel? There are certainly ways to promote your carinderia without spending top money on traditional advertising media.

Commitment to growth

Starting your carinderia business is the most challenging, just like in any other business. You set up your venue, acquire equipment and tools, human resources and promote your eatery to the public. That’s an investment of so much effort, not to mention your financial input in the process. And that’s even before you transact with your first customers. Sustaining the business is another beast to tame. As you get started, there are adjustments to make as everything is a new experience. But you dismiss these early challenges in the name of committing to growing the carinderia business. Are you willing or prepared to change your lifestyle and make this commitment? Not all carinderia follow the same timeframe as it depends on sourcing ingredients, kitchen manpower, or operation plan but it’s not unusual to observe certain owners expend a lot of energy and sacrifice a tremendous amount of time.

2am – Wake up to source the freshest produce as ingredients for the day.
4am – Return to the kitchen to process the ingredients — wash, slice, marinate, etc.
7am – Prepare the kitchen and its equipment to cook after deciding what is the menu for the day.
10am – Open the carinderia for an early brunch menu or early lunch orders
11am – Be ready for the rush of customers
2pm – Close the carinderia for midday cleanup and preparation for the dinner menu
5pm – Open the carinderia for dinner guests
9pm – Last dinner orders received
10pm – Close of business day, calculation of income, cleanup, etc

There are types of food that are considered can’t miss and often attract the attention of customers. But menu items can only materialize and make more sense if:

they are easily sourced and profitable, even if they are quite expensive to buy from suppliers
the typical customers are likely to pick them based on taste or financial power. How much will students, office workers, or tricycle drivers be willing to spend for lunch?
they align with the timing of your operation. A menu of goto, tapsilog, lugaw or tokwa is good to start the day while preparing the main menu for lunch.

Depending on your market research, you might decide that your carinderia will only serve lunch as it’s the peak time of activity in the area. Maybe folks (students, factory workers, laborers) will likely return home and eat dinner prepared by their families. In that case, you can narrow down options, even though there’s a lot in common between lunch and dinner options for a typical Filipino appetite. Fixed menu or flexible menu? It’s certainly your call as you discern the pattern of your past customers. But it would be great to have a bit of variety (think of specials for the day menu) available to those who wish to explore new options. Or have a certain specialty like lechon or ginisang munggo available on a specific day. This can be a deliberate choice of day or due to the required time to prepare or sourcing of raw materials. We have a list of popular carineria menu but you can consider the following items as well:

Adobong manok
Adobong baboy
Adobong pusit
Adobong kangkong
Chicken tinola
Chicken afritada
Pork menudo
Pork sinigang
Bistek Tagalog
Inihaw na liempo
Nilagang baka
Bicol express
Pork barbecue

Pick 3-5 main specialties and make sure you have enough rice! This staple food is a Filipino favorite and cost-wise it helps customers get full without spending much. A safe bet would be items that don’t spoil easily. Otherwise, food poisoning and other health issues can easily break your personal reputation and destroy the business. If you think offering unlimited rice (even as an opening week promotion) will attract customers without going in the red, it would be a good marketing approach.

Focus on cleanliness and carinderia hygiene

Many carinderia businesses in the Philippines exist in places that are less desirable for health reasons. Many are located near the road where food and customers are exposed to dust, smoke, and other sources of unpleasant odor. And just because nobody got sick does not mean you are operations are up to prescribed sanitation standards. Operating a clean carinderia will incur extra costs but this will always pay off as customers will appreciate how you take care of their well-being as much as your business bottom line. After all, you are preparing what they’ll eat and that’s a big deal health-wise. Cleanliness is not just about food preparation. It also includes the sanitation process when cleaning plates and cutlery, sourcing of your drinking water, cleanliness of hand towels, and condition of floors, food shelves, and toilets. These are things you not only consider but follow by heart.

Ensure everyone involved in the carinderia operation has health clearance.
Maintain cleanliness and safety in your kitchen area. Clean pots, pans and maintain the cooking area in an orderly manner. Wipe the floors to avoid slipping.
Maintain cleanliness of floors by wiping off dirt and discarded materials as often as possible.
Keep pets, stray animals away from your kitchen and dining area.
Make washing of hands a standard procedure and provide appropriate facilities for both workers and customers.
The kitchen crew must wear proper clothing (apron, gloves, masks, hair nets).
Servers also need to wear clean clothing.
Make trash cans available in designated areas.
Dispose of garbage frequently and in an orderly manner.
Have sanitizers available in the kitchen and serving area
Use electric fans or mosquito coils to keep insects like flies and mosquitoes away.
Make sure all food served is properly covered with lids, aluminum foil, or cling wrap to avoid contamination.
Sanitize all kitchen utensils, cutting boards, plates, bowls, and pans in hot water and anti-bacterial solution.
Store food in sealed containers and incorrect temperature settings.
Do not transact with suppliers with questionable sources or low-quality materials.
Clean knives, tongs, spatula and wipe them clean before usage to avoid cross-contamination between meats and other ingredients.
Sterilize utensils and wipe them clean before access to customers
Use separate serving spoons for every dish.
Use separate kitchen equipment for cooked and uncooked ingredients.
Dispose of used oil properly.
Throw away food or ingredients if you are unsure of its quality.
Discard items once they are past their expiry dates.
Make sure you end the carinderia’s business day with a clean kitchen, utensils and cutlery, dining area, toilet.
The following day, wash all plates, utensils, and cutlery again.

A carinderia business is a business that requires a lot of work and dedication, so it’s suitable for people who value hard work but have little capital money. It requires the full cooperation of staff and commitment to great experience — food service, food quality, great dining experience, and clean surroundings. That builds up over time and your effort and commitment will bear fruits sooner than you expect. Loyal customers will soon sing praises of your carinderia once you have put in a consistent effort to achieve that great dining experience. Good luck from Pinoy Negosyo!

Download PDF – Carinderia Business Plan

9 Filipino Dishes Your Carinderia Should Serve
7 Reasons Why You Should Open a Carinderia Business
Basic Guides on Operating a Carinderia / Catering Business
5 Stressful Challenges Carinderia Businesses Often Face
Refrigerator Buying Guide for Pinoy Business Owners

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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

What is a water refilling station.

water refilling station business in the philippines

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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A business plan can be as informal or formal as your situation calls for, but even if you're a fan of the back-of-the-napkin approach to planning, there are some key benefits to starting your plan from an existing outline or simple business plan template. No blank-page paralysis. A blank page can be intimidating to even the most seasoned writers.
How to Write a Business Plan: Tips, Format, & Templates
If you want a more detailed discussion of what should go into each component of your business plan plus sample scenarios, check the DTI's Negosyo Center e-book that fleshes out things for small business owners. 2. Simple Business Plan Template by The Balance Small Business . The Balance is an online resource for small business owners.
How to Make a Business Plan in the Philippines (Plus Samples)
Simple Business Plan Template (2023) Sample Business Plan in the Philippines: 7 Good Examples for Country SMEs. ... Organizations such provide business funding in the Philippines command a well-written, concise, and complete business plan this covers all relevant company about the business.
7 Business Plan Examples to Inspire Your Own (2024)
7 business plan examples: section by section. The business plan examples in this article follow this example template: Executive summary. An introductory overview of your business. Company description. A more in-depth and detailed description of your business and why it exists. Market analysis.
How To Start a Business in the Philippines: The Complete ...
Step 1: Know your "Why.". Holocaust survivor Victor Frankl wrote in his book that "those who have a 'why' to live can bear with almost any 'how'". Starting a business may not be as tragic as a Holocaust but it is certainly not a walk in the park either.
The Perfect Business Plan
But these 10 steps will help you create the perfect business plan. 1. The executive summary. This is where you describe your company and the product or service that it will sell. This must be brief, to catch and hold people's attention. Try to describe the goal and mission of your business in just a couple of sentences.
How to Start a Business in the Philippines
Contents. How to Start a Business in the Philippines. Step 1: Come up with a profitable business idea. Step 2: Conduct a project study (market fit & feasibility study) Step 3: Create & prepare a business plan. Step 4: Choosing a Business Model. Step 5: Identify key business processes.
Business Plan Templates
Access Xero features for 30 days, then decide which plan best suits your business. Safe and secure. Cancel any time. 24/7 online support. Email address. Start your free trial. Or compare all plans. Get the ball rolling with our free business plan templates and tips. Choose from a multi-page template, or a one-pager to help flesh out your idea.
Starting a Small Business in the Philippines
How to Start Your Small Business: Step-by-Step Guide. 1. Identify Your Business Idea. Start by brainstorming and identifying your business idea. Assess your passions, skills, and experiences to find a unique niche that aligns with your interests and the Philippine market demands. 2.
PDF SIMPLIFIED BUSINESS PLAN On
the business of similar project : Vision (How do you see your business in five years) _____. Mission (What will you do to achieve that vision) _____. Project Description (Describe your business, its scope/scale, when will you start the project, and how are you going to start your business)
Ultimate Guide in Creating a Business Plan in 2020
Having a detailed company profile also adds credibility to your business. 4. Document all aspects of your business. It is also suggested to document every process in your company so that it is already easy for you to write them down and elaborate when you write the business plan. 5.
How to Make a Business Plan in the Philippines (Plus Samples)
Here's an sample business plan for a little business and writing steps. How to Make a Business Plan in the Philippines (Plus Samples) - What is a Business Model with Types and Examples A strong employment layout has crucial at getting your loan approved.
PDF BUSINESS PLAN Format EXECUTIVE SUMMARY
ORGANIZATION AND MANAGEMENT PLAN. 3.1 Form of Business. 3.2 Organizational Structure. 3.3 Business Experience and Qualifications of the Entrepreneur. 3.4 Pre-Operating Activities. 3.5 Pre-Operating Expenses. 3.6 Office Equipment. 3.7 Administrative Expenses. Section 4.
Simple Business Plan Template (2024)
Whether you want to launch a side gig, a solo operation or a small business, you need a simple business plan template to guide you. Forbes Advisor offers you a comprehensive and easy-to-follow ...
Business Plan Sample, Management, Ideas, Proposal and Philippines
So here is the initial updated BIR list of 2014 top 100 corporations (50 top tax payers) and multi national companies that you can target investing or have business with in any way or another this year. SunPower Philippines Manufacturing LTD. Know business investment ideas and make a sample plan for management and marketing proposal.
Laundry Business Plan Philippines (Sample + PDF Template)
Laundry Business Plan Philippines (Sample + PDF Template) By Yesh Quijano. November 22, 2023. Starting a laundry business can be a profitable venture, allowing you to become a successful entrepreneur in a recession-proof industry. Planning, preparation, and a strong business plan are essential to achieving success in this venture.
Carinderia Business Plan (with PDF)
Carinderia Business Plan (with PDF) Negosyanteng Pinoy February 4, 2024 035 mins. A carinderia business may be attractive and seemingly easy to set up: have a stall near your house, few tables and chairs, adequate cooking equipment and utensils and a good cook might be all you need to get started.
Water Refilling Station Business 2023: How To Start ...
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 ...
Sample- Business-PLAN
1. Mindanao State University Iligan Institute of Technology. College of Bus iness Administration and Accountancy. Department of Marketing. ALIBA TA.CO. A Business Plan. Presented to. Presented by. G ianna Norma Ste fani D. Mercado.