Aqua clean & purified waters

Aqua clean & purified waters

Water is a vital element in the human body. Scientists have advised for healthy purposes; individuals should drink at least eight glasses of water daily. It is not just drinking water but safe water. Water that is boiled distilled or chlorinated is deemed reliable for consumption. My idea for this project is a Distilled water refiling center. The reason for choosing this project is due to a local study carried around the town. Based on the market survey, our city has a limited number of Drinking water refilling, of which all of them are found in major supermarkets. Residents have been complaining about the availability of these services. Drinking unsafe water can lead to potential stomach related problems such as Amoeba and Dysentery. The government also precautioned the residents concerning the water source, described it as not safe. Research conducted among the clinics indicates the high number of Amoeba, Dysentery, and other water consumption related infections. The prevalence in the town has increased by 37%.

A questionnaire carried around the community indicated that 90% of the community residents embraced the idea, citing that their health comes first before anything. The target customers are the age gap of between 20 years – 60 yrs. The survey results indicated families to be the core targets.

The motivation behind this project is my daughter. A few weeks ago, my daughter suffered from Dysentery. This infection causes complications in the digestive tract. During her diagnosis, it was noted several patients were admitted. Further research indicated that  26% of households consume unsafe water. The center shall be offering to refill and purchasing services. All government business should obtain a business permit. The business license shall be acquired plus a permit from the board of the Health sector. The facility shall be located at an ideal location where most individuals can easily access it.

Furthermore, the facility shall be providing after-sales services that are free delivery of orders made. Customers commonly prefer gratitude, and a sense of appreciation after-sales services are one of the ways to earn loyal clients.

Cases of water-related infections

VISION

The core vision of the business is to improve the health and welfare of individuals by providing ready access to affordable and purified water to curb water-related infections. Scientists have proven that drinking a lot of water benefits the human system. Drinking clean water also boosts the confidence levels of individuals as they do not anticipate any future health-related diseases. The main goal of the business is to increase its operations and expand its centers in different regions to increase its market share. Furthermore, building the reputation of the company into a well-known brand aiming to diversify the products, it is offering.  The short-term goal of the business is to avail services to the community and try as much as possible open at least two centers in a period of 6. Months. The purpose of the business is to deliver purified water services to customers, educate the community on the importance of drinking safe water, and help minimize cases of infections. The vision of the business must always align with the objectives.

An estimate of standard costs, overheads

The business shall be a small-scale operation.  The inherent nature of limited resources makes it impossible to hire a private facility. Since it is a startup, I will use part of my house to carry out the business of operations. The house is 150m and has an extension where the stock can be stored. The main principles of economics are to use limited resources to maximize output. Clean water distributors shall be our leading suppliers. The survey indicates that out 46,000 customers have positively reviewed the company citing it affordable and trustworthy. A positive reputation attracts clients. The main cost incurred will purchase of a motorbike, large scale fridge, and an interior designing service. The rent costs  $250, and the properties are rated among the best real estate providers in the area. Concerns on theft and delivery risks, travel and property insurance will be necessary to counter for any liabilities caused. Insurance helps to minimize the causes of loss caused by unforeseeable factors. The best insurance provider shall be selected from JSTOR.

An estimate of standard costs, overheads

Utility expenses

Estimation of direct labor

The business will comprise of two motorbike delivery agents who will take in part in distributing urgent orders. The drivers must have a valid driving license and prior experience. They will be each paid $5 per hour. The business shall cater for the fuel expenses. The paid wages align with the minimum pay labor regulations. I shall carry out the reception services as I have experience in customer care and a piece of background knowledge in public relations. I shall employ an assistant reception who will be paid $9 per hour.

Master budget

One-month service

Revenue

The business will have two significant sources of income. Refilling of fresh drinking water whereby clients carry their containers or bottles and selling of containers filled with clean water. The refilling fee will depend on the size of the vessels, 5litres goes for $10,10litres goes for $18, and 20litres for $26 Bulk delivery require special orders. The method of pricing has been set from studying industry analysis and financial articles written by different scholars. The price of a product should be evaluated critically by the use of the Markup. The mark up is calculated at 505 of the total cost. Mark up is added to the initial price.

Revenue budget for one month

Budgeted profit and loss statement Aqua clean & purified waters

for one month

The business shall be a sole proprietorship. The tax is not accounted for since it will be taxed as part of business income. The finance costs, such interest rates, are not accounted for due to the varying economic conditions. Lower prices indicate financial health of an organization

Reflection

My first impression was that the assignment was easy; little did I know that the process would e complicated in nature. Obtaining data posed a massive challenge for me. Most of the survey’s reports came back empty. Door to door campaign was also tiresome as most households refused to be interviewed. Despite the limitations, I was able to acquire adequate knowledge about consumer trends and patterns. I observed that customers always have varying needs. My negotiation skills also improved as I was able to negotiate rates with potential vendors. Business requirements also expanded my knowledge of the laws and regulations that guides a company’s operations. I also learned the threats and opportunities that surround a business. Further studies on cost accounting widened my understanding of how to estimate costs and revenue. Overall the project shaped my thinking, improved my excel skills, especially the analysis part, and also prepared me to tackle future projects.