business plan for pure water factory

Sachet Water Production Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Food Sector » Food Processing

Are you about starting a sachet water production company? If YES, here is a complete sample sachet water production business plan template & feasibility report you can use for FREE .

You may not find a sachet water company in developed countries because they may not welcome the idea of a sachet water business. However, in developing countries like Nigeria , it has become a thriving industry. If you are interested in the bottled water production business and you don’t have the capacity to go into the business, then one of your best bet is to start a sachet water production business.

Although a sachet water production company is easy to set up, but you would need to do proper ground work if you must make headway in this line of business. This is because there are loads of sachet water production and distribution companies scattered all across Nigeria and you are expected to compete with them for the available market.

A Sample Sachet Water Production Business Plan Template

1. industry overview.

Sachet or bottled water as the case maybe is one commodity that is consumed in all parts of the world and of course those that are in the business of producing sachet or bottled water, are known to generate sales year in year out if the business is well managed.

As a matter of fact, economic downturn hardly affects the consumption of sachet or bottled water because water is as important as the air we breathe.

Production companies in the sachet and bottled water industry basically purify and bottle water into plastic and glass bottles for consumption. The bottled and sachet water are properly packaged (sealed or capped) and labeled accordingly before being sold to the general public.

Companies in this industry usually have an assortment of water offerings such as spring water, mineral water, sparkling water and flavored water in a range of sizes and prizes. Players in this industry are also involved in ice manufacturing.

It is common to find big corporations who are into production of soft drinks, food and beverages engage in the production of bottled water.

Research conducted by IBISWorld shows that in the united states of America, the level of concentration in the Bottled Water Production industry is modest, as the top four players are expected to generate 65.5 percent of the industry revenue.

Given the heavy bulk weight of industry products and the relatively low value per unit sold, bottled water production is generally taken on by large companies with major economies of scale and heavy investments in transportation.

While the majority of bottled water production is performed as one of many activities within the corporate portfolios of international food and beverage companies, the remaining portion of the industry’s production is performed through small-sized local players.

The Bottled Water Production industry is a thriving sector of the economy of the United States of America and they generate over $5 billion annually from more than 565 registered and licensed bottle water production companies scattered all around the United States of America.

The industry is responsible for the employment of well over 14,360 people. Experts project the bottle water production industry to grow at a 4.0 percent annual rate. The Coca Cola Company, Nestle and Pepsi Co are the world leaders in the bottled water industry; they have the lion market share in the United States of America and in most countries of the world.

Despite the fact that there are big corporations who are into the production of bottled water, the fact remains that starting a small – scale sachet water production business has minimal barriers to entry, with low startup capital. Most players in the sachet water production industry are small to medium size establishments that cater to the local community.

With this kind of business, if you want to start on a small scale, you can choose to start servicing your local community. All you would need are contacts, packaging, networking and good marketing and customer service skills. However, if you intend starting it on a large scale, then you should consider spreading beyond your local community to the state and even national level.

Over and above, the bottled water production industry that sachet water is a part of is indeed a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business.

2. Executive Summary

Glittering® Sachet Water Production Company is a licensed and standard sachet water production company that will be located in Ikeja, Lagos – Nigeria. We have been able to secure a long-term lease for a facility in a strategic location with an option of a long-term renewal on  agreed terms and conditions that are favorable to us.

The facility has government approval for the kind of business we want to run, it is easily accessible and we are deliberate about that to facilitate easy movement of raw materials and finished products.

We are in the sachet water production business to engage in purifying and packaging sachet water. We are also in business to make profit and at the same to give our customers value for their money; we want to give people and businesses who patronize our sachet water the opportunity to be part of the success story of Glittering® Sachet Water Production Company.

We are aware that there are several large and small scale sachet and bottled water production companies whose products can be found everywhere in Nigeria, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business.

We ensured that our facility is easy to locate and we have mapped out plans to develop a wide distribution network for wholesalers all around Ikeja and environs. Glittering® Sachet Water Production Company will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our Depot/Plant.

We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large the number of our customer base may grow to. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.

Glittering® Sachet Water Production Company is family business that will be owned by Mark Bassey Hector and his immediate family members. Bassey Hector who is the Chief Executive Officer of the Company is Graduate of Micro Biology (B.Sc.) and he holds a Master’s Degree in Business Management (MBA) from the University of Lagos.

He has over 5 years’ experience working in related industry as a senior manager prior to starting Glittering® Sachet Water Production Company. He will be working with a team of professionals to build the business and grow it to enviable height.

3. Our Products and Services

Glittering® Sachet Water Production Company is going to operate a standard and licensed sachet water production company whose products will not only be sold in Ikeja – Lagos State but also throughout Lagos State and neighboring states.

We are in the sachet water production business to make profits and also to give our customers value for their money. These are some of the products that we will be offering;

• Sachet water
• Bottled water (in the nearest future)
• Dispensable water (in the nearest future)

4. Our Mission and Vision Statement

• Our vision is to establish a standard sachet water Production Company whose products will be sold not only in Ikeja, but also throughout Nigeria.
• Our mission is to establish a standard and world class sachet water Production Company that in our own capacity will favorably compete with leaders in the industry such as Nestle Foods, Coca Cola Company, and Pepsi Co et al.

Our Business Structure

Glittering® Sachet Water Production Company is a business that is established with the aim of competing favorably with other leading sachet and bottled water brands in Nigeria. This is why we will put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)

Plant Manager

• Sales and Marketing Officers
• Accountants/Cashiers

Distribution Truck Drivers

• Production/Machine Operators

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for overseeing the smooth running of the sachet water production plant
• Part of the team that determines the quantity of sachet water that are to be produced per day
• Maps out strategy that will lead to efficiency amongst workers in the plant
• Responsible for training, evaluation and assessment of plant workers
• Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Serves as the quality control officer
• Ensures that the plant meets the expected safety and health standard at all times

Sales and Marketing Manager

• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Helps to increase sales and growth for the company

Accountant/Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Production Workers/Machine Operators:

• Responsible for purifying and sealing of water
• Assist in packaging and loading bags of sachet water into distribution trucks
• Any other duty as assigned by the plant manager
• Assists in loading and unloading bags of sachet water
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assists the transport and logistics manager in planning their route according to a delivery schedule
• Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash
• Transport finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
• Inspect vehicles for mechanical safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verify delivery instructions
• Reports defects, accidents or violations

6. SWOT Analysis

We are not unaware that there are several sachet and bottled water production companies both large and small all-around Lagos State which is why we are following the due process of establishing a business so as to compete favorable with them.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Glittering® Sachet Water Production Company employed the services of an expert HR and Business Analyst with bias in startup businesses to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Glittering® Sachet Water Production Company;

Part of what is going to count as positives for Glittering® Sachet Water Production Company is the vast experience of our management team, we have people on board who are highly experienced and understand how to grow a business from the scratch to becoming a national phenomenon.

So also, our large distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

A major weakness that may count against us is the fact that we are a new sachet water production company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like Nestle Foods, The Coca Cola Company and Pepsi Co et al are already determining the direction of the market both in Nigeria and in the globe.

• Opportunities:

The opportunities for sachet water production companies are enormous. This is due to the fact that sachet water is far cheaper than bottled water and people can easily afford it.

As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market for sachet water and also to create our own new market. We know that it is going to require hard work, but we are determined to achieve it.

We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies . Another threat that may likely confront us is the arrival of a new sachet or bottled water production company in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the trend in the sachet/bottled water production industry, you will agree that there are competitions in different stages of the industry. That is competitions amongst bigger corporations such as Pepsi Co, Coca Cola Company and Nestle et al; and also competitions amongst smaller and medium scale bottled water production companies.

Most bottled water companies are leveraging on creativity in terms of packaging and marketing to continue to stay afloat in the industry. One creativity approach that is common is ensuring that their bottled water conforms to the appropriate PH – level.

As a matter of fact, it is common to find sachet or bottled water production companies especially medium scale and small scale bottled water companies labeling their sachet or bottled water for specific occasions to meet the demand of their clients.

For example, a client that is celebrating his or her birthday may strike an agreement with a bottled water company to specially label the bottled water that will be served in the occasion to conform with the occasion.

Lastly, another trend in the bottled water production industry is the adoption of eco – friendly approach towards the production and packaging of sachet and bottled water. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.

8. Our Target Market

When it comes to selling sachet or bottled water, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who reside in our target market locations.

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in wholesale distribution and to retail sachet water to the following groups of people;

• Restaurants and Canteens
• Event Planners, Parties and Corporate Functions
• Everybody in our target market location

Our Competitive Advantage

A close study of the sachet cum bottled water production industry reveals that the market has become much more competitive over the last decade.

As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other sachet and bottled water production companies in Ikeja and throughout Lagos – Nigeria.

Glittering® Sachet Water Production Company is launching a standard sachet water brand that will indeed become the preferred choice of residents of Ikeja and every other location where our sachet water will be retailed.

Part of what is going to count as competitive advantage for Glittering® Sachet Water Production Company is the vast experience of our management team; we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon.

So also, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the bottled water industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Glittering® Sachet Water Production Company is established with the aim of maximizing profits in the sachet and bottled water production industry in Lagos State and environs and we are going to go all the way to ensure that we do all it takes to sell our products to a wide range of customers. Glittering® Sachet Water Production Company will generate income by selling the following products;

10. Sales Forecast

One thing is certain when it comes to the sachet and bottled water production business, if your water is well packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract sales and that will sure translate to increase in revenue for the business.

We are well positioned to take on the available market in Ikeja – Lagos State and every city where our sachet water will be sold and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the sachet and bottled water production industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Ikeja – Lagos State.

• First Fiscal Year: N1.2 Million
• Second Fiscal Year: N2.5 Million
• Third Fiscal Year: N4 Million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within the same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Glittering® Sachet Water Production Company, we conducted thorough market survey and feasibility studies in order for us to be able to penetrate the available market in our target locations.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also for our products to favorable compete with other leading brands in Lagos State.

We hired experts who have good understanding of the sachet and bottled water production industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Ikeja and other locations in Lagos State.

In other to continue to be in business and grow, we must continue to sell our sachet water to the available market which is why we will go all out to empower our sales and marketing team to deliver our corporate sales goals. In summary, Glittering® Sachet Water Production Company will adopt the following sales and marketing approach to sell our sachet water;

• Introduce our sachet water brand by sending introductory letters to residents, restaurants and other stakeholders all around Lagos State
• Open our sachet water production company with a party so as to capture the attention of residents who are our first targets
• Engage in roadshows in targeted communities from time to time to sell our sachet water
• Advertise our products in community based newspapers, local TV and radio stations
• Leverage on the internet to promote our sachet water brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our sachet water production plant is a standard one that can favorably compete with other leading brands, we will still go ahead to intensify publicity for our product. We are going to explore all available means to promote Glittering® Sachet Water Production Company.

Glittering® Sachet Water Production Company has a long – term plan of going into bottled water production and distributing, which is why we will deliberately build our brand to be well accepted in Ikeja – Lagos State before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Glittering® Sachet Water Production Company;

• Sponsor relevant community programs
• Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our sachet water brand
• Engage in roadshows from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Ensure that our sachet water is well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized

12. Our Pricing Strategy

When it comes to pricing for sachet water, there are two sides to the coin. We are aware of the pricing trend in the sachet and bottled water production industry which is why we have decided to produce various sizes of sachet water.

In view of that, our prices will conform to what is obtainable in the industry but we will ensure that within the first 6 to 12 months our products are sold a little bit below the average price. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our water brand.

• Payment Options

The payment policy adopted by Glittering® Sachet Water Production Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation in Nigeria.

Here are the payment options that Glittering® Sachet Water Production Company will make available to her clients;

• Payment with cash
• Payment via online bank transfer
• Payment via mobile money

In view of the above, we have chosen banking platforms that will enable our clients pay us without any difficulty. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for members to pay for products purchased.

13. Startup Expenditure (Budget)

Starting a standard sachet water production company is capital intensive. The bulk of the startup capital will be spent on leasing or acquiring a facility and also in purchasing water purifying and packaging equipment. Asides from that, you are expected to purchase distribution trucks, pay of your employees and also pay utility bills.

These are the key areas where we will spend our startup capital;

• The Fee for registering the business in Nigeria – N15,000
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – N30,000
• Marketing promotion expenses for the grand opening of Glittering® Sachet Water Production Company – N15,000
• Cost for hiring Business Consultant – N20,000
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – N20,000
• Cost for payment of rent for 12 month and renovation inclusive – N250,000
• The cost for purchasing and installing water purifying machines – N250,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – N150,000
• The cost for start-up inventory (supply of well – branded sachets, water purifying chemicals and fueling et al) – N150,000
• The Cost for purchasing a distribution truck – N800,000
• Cost for store equipment (cash register, security, ventilation, signage) – N10,000
• The cost of launching a website – N25,000
• The cost for our opening party – N70,000
• Miscellaneous – N50,000

We would need an estimate of N2.5 million to successfully set up a medium scale but standard sachet water production business in Ikeja – Lagos, Nigeria.

Generating Startup Capital for Glittering® Sachet Water Production Company

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a standard sachet water production business.

Glittering® Sachet Water Production Company is a family business that is owned and financed by Mr. Bassey Hector and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about N500,000 ( Personal savings N400,000 and soft loan from family members N100,000 ) and we are at the final stages of obtaining a loan facility of N2 Million from our bank (micro – finance bank).

All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers they have, the capacity and competence of the employees, their investment strategy and their business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Glittering® Sachet Water Production Company is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our sachet water and other products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Glittering® Sachet Water Production Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and construction of standard sachet/bottled water plant: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members and friends: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Packaging and Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party/launching party planning: In Progress
• Establishing business relationship with vendors – wholesale suppliers: In Progress

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Water Purification and Bottling Business Plan Template

Published Mar.14, 2022

Updated Apr.24, 2024

By: Jakub Babkins

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Table of Content

Water purification and bottling business plan for starting your own business

Bottled water is one commodity consumed in all parts of the world, and of course, those in the business of producing bottled water are known to generate sales all year round if the company is well-managed. The economic downturn hardly affects the consumption of bottled water simply because it is a commodity that is as important as the air we breathe.

Production companies in the bottled water industry purify bottled water into plastic and glass bottles for consumption. The process involves use of a comprehensive business plan for bottled water and detailed franchise business planning .

If you plan on having a water purification and bottling business of your own, here is a purified drinking water business plan developed for Aqua Dreams. If you are confused about how to start a packaged drinking water business, this plan will provide you with all the details you need to know before going forward with your startup idea. 

The business plan for Aqua Dreams is as detailed as a business plan for Starbucks . Hence it is assured that it will answer all your questions regarding how to start a purified water business.

Executive Summary

2.1 the business.

Aqua Dreams will be a licensed and standard bottled water production company situated in an industrial area in Orleans, Massachusetts. We have been able to secure a long-term lease for a facility in a strategic location with an option of a long-term renewal on agreed terms and conditions favorable to us. The reason behind this successful execution is a well-thought-out water purification and bottling business plan .

2.2 Management of water purification and bottling business

While taking an entrepreneurial initiative, it is essential to ensure that all aspects of your business are coherent. Hence, you must prepare a unique bottled water business plan that helps you seek sufficient funding. 

Having said that, while writing a bottled water business proposal, you must analyze all the available resources. If you intend to raise loans, you should also study some business plans for banks because the process of getting loans can be exhaustive. 

2.3 Customers of water purification and bottling business

While thinking of how to start water bottle business, you must understand who your target market is. Including this detail in your water purification business plan will help you in subsequent planning. The recurring customers of Aqua Dreams are identified as:

• Restaurants and Canteens
• Event Planners

2.4 Business Target

Our vision is to establish a standard bottled water Production Company whose products will be sold in Orleans – Massachusetts, and throughout the United States of America and  Canada . There would be no compromise on the quality of the product, and complete transparency would be offered concerning our filtering processes.

Company Summary

3.1 company owner.

Aaron Finch will be the owner of Aqua Dreams. Aaron has strong leadership and organizational skills that he acquired while working at different water filtration plants since 2009. He graduated with a major in resource management from the University of Texas and researched this field ever since. He identified a lack of efficient purification systems in existing firms in the market and hence felt the need to introduce an innovative bottling water business plan.

3.2 Why the water purification and bottling business is being started

The bottled water production industry is profitable, and it is open for any aspiring entrepreneur to come in and establish their business. Aaron thought of coming up with a packaged drinking water business plan so that he doesn’t miss on any important aspect.

3.3 How the water purification and bottling business will be started

Step1: Planning for the business

Before setting up your business, looking into all the available resources and planning your way forward is essential. It gives you an idea of the availability of human resources and capital. If you are adding farm-related aspects to your business, it would be beneficial to also read out farmers market business plan before making a business plan for your startup.

Step2: Get Recognized

The next step is to be recognized by defining your business’s services and values. Having the proper business structure is very important to us at Aqua Dreams. Besides, producing healthy, portable, and well-packaged bottled water, we aim to impart perfect customer care service.

Step3: Offices 

The cooperate office of Aqua Dreams will be located in the industrial zone of Orleans. It will be a feasible location since it would grant easy access to resources. Consequently, the cost of acquiring production factors would be low. The market trends in this water purification business plan pdf can help you strategically choose your corporate office’s location. 

Step4: Online Presence

Living in an age of social media and digitalization, having a web presence is imperative for a company’s success. The website for Aqua Dreams would entail the company’s purification and bottling methods to educate the consumers about the sustainable processes we use.

Step5: Marketing

The last step is developing and executing a marketing plan to promote your services. In your business plan for bottled water , you must add marketing strategies that you will be using to reach out to the target customers. For diverse and unique advertisement ideas, research is imperative. You may need to visit several business operational models such as a liquor store business plan to gain an insight into the expectations of your target market.

Services of water purification and bottling business

Ideas to start your own bottled water business can be daunting and confusing. If you are new to the business and are unaware of the facilities to offer, you can refer to the services available at Aqua Dreams mentioned below:

• Bulk Purified water

The most preferred processes used for the purification process are reverse osmosis, deionization, and distillation. Aqua Dreams will use reverse osmosis systems as they remove up to 99% of organic substances and ions from the water. This process is discussed in detail in our water purification plant business plan.

• Still bottled water

This type of bottled water is the most often used to replace tap water. It has varying levels of dissolved minerals and does not contain added carbonation. In this bottling water business plan, we will list how much sales of this product were expected in a period lasting three years.

• Sparkling bottled water

Sparkling water, also known as seltzer, soda, or tonic water, is infused with carbon dioxide to create tons of bubbles and fizziness. It is often used as a healthy substitute for sugary sodas and other beverages because it is lower in calories and sugar. We will offer different flavors of the product to meet the expectations of our customers.

• Flavored bottled water

Flavored water is a beverage with added natural or artificial flavors, herbs, and sweeteners. Aqua Dreams will offer different options to its customers for a wider target market.

If you are new to the industry and are thinking how to start a water bottling plant, it is recommended that you go through this water bottling business plan pdf and learn about the technicalities involved.

Marketing Analysis of water purification and bottling business

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In this water bottling plant business plan, you will find a detailed marketing analysis conducted by Aqua Dreams. This is the perfect water purification business plan sample for your reference if you are confused about how to start a water purification business.

5.1 Market Trends

Research conducted by IBIS World shows that the level of concentration in the purified drinking water business is modest in the USA. The top four players are expected to generate 65.5 percent of revenue. The industry is responsible for the employment of well over 14,360 people. Experts project the bottled water production industry to grow at a 4.0 percent annual rate.

5.2 Marketing Segmentation

While analyzing how to start a water purification business, you must investigate your target audience. Market segmentation is vital to understanding the scope of your filtered water business. If you don’t know who you will be interacting with, you can refer to the customer groups of Aqua Dreams mentioned below:

Business plan for investors

5.2.1 hotels.

The minibars you see in your hotel rooms are usually stocked with bottled water of all kinds, let it be still, sparkling, or flavored. Hence, Aqua Dreams will be supplying bottled water to different hotels on a contractual basis. Since they place large orders, their revenue would be the main reason behind the success of our water purification business. 

5.2.2 Restaurants 

Since sparkling water is also often used in cocktails and other drinks to create a fizzy sensation, restaurants in the city will be the primary customer group for this specific product for Aqua Dreams. Our products will also assist them with their purification systems installed in the kitchens.

5.2.3 Event Planners

Nowadays, instead of serving water in glasses, it is preferred to offer bottled water to the guests. Hence event planners are expected to procure bottled water from us and provide it to the customers they are dealing with.

5.2.4 Retailers

Carbonated and fizzy drinks are loved by almost everyone these days, which can be bad for their health. Our flavored water, supplied to retailers nationwide is relatively less unhealthy and therefore we expect to have great sales of it.

5.3 Business Target

• Start a bottled water delivery service based on a courier services business plan
• Have a customer satisfaction score of 93%
• Capture 30% market share within the first year of business
• Install two new purification plants in the next five years of operations 

5.4 Product Pricing

Our prices will conform to what is obtainable in the industry. We have put in place those business strategies that will help us run on low profits for six months.

Marketing Strategy of water purification and bottling business

Regardless of whether you are thinking of having a bottled water company business plan or a water purifying business plan, you need to have an effective marketing strategy. It would help you stand out amidst competition and capture market share. 

Aqua Dreams will use a robust set of marketing and sales strategies mentioned in this water bottle business plan pdf. Hence it would be helpful for you to read it thoroughly if you are wondering how to start a packaged drinking water business.

6.1 Competitive Analysis

• The services at Aqua Dreams would be supervised by water purification experts who have insights worth 5+ years of experience.
• Sustainable practices such as environmentally friendly purification systems will be employed at Aqua Dreams.
• Calorie Check will be done thoroughly in our flavored bottled water.
• The introductory prices offered by Aqua Dreams would be lower than the market rates without compromising on the quality of services.

6.2 Sales Strategy

• Introduce our bottled water by sending introductory letters to hotels, water merchants, and restaurants.
• Advertise in local directories.
• Use social media platforms such as Facebook and Instagram for sponsored ads.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan of water purification and bottling business

The average cost involved in a bottled water production water business plan is similar to that in a donut shop business plan .

It is important to account for different kinds of costs to forecast financial returns accordingly. These costs also include the salaries of employees at the purification plants. To give you an idea of average salaries in the market, the salaries of our employees are quoted in this purified water business plan.

7.1 Company Staff

While thinking of water business ideas, the following are the positions you would essentially recruit for:

• 1 Plant Manager
• 1 Operations Manager
• 5 Production Assistants
• 1 Marketing Officer
• 3 Delivery Drivers
• 1 QA Engineer

7.2 Average Salary of Employees

Financial plan of water purification and bottling business.

A sole focus on increasing sales does not ensure that your business has become successful. For generating profits, you need to do a thorough analysis of your water company profile and estimate the operations’ capacity for your business accordingly.

In your financial plan, you must identify when and how to cover your investment amount with the earned profits. Moreover, you should evaluate the business projections and ratios to assess how the financial trajectory of your enterprise will go in the coming years. These assessments are important to highlight in your business plan for a water purification plant because they help investors decide whether to fund your bottled water startup or not. Besides, they help you direct your efforts to achieve your business goals.

If you don’t know how to conduct a financial analysis, you can refer to this water bottle business plan pdf.

Here we’re providing a business plan used by Aqua Dreams for you to use as a reference.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

• Is water bottling a profitable business?

A bottled water plant is profitable, provided a strategic business plan is in place. The average bottled water profit margin ranges between 25-30% for small and medium-scale water plants. It can be as high as 60% for large bottle production. Hence, the question “is bottled water business profitable” really depends on your scale of operations and management.

• How do I start a water purification business?

You can make a business plan and execute it in a set time frame. The most common mistake made when starting a new business is neglecting to write up a business plan. A good purified water business plan establishes a framework and a roadmap for your water purification business. If you try starting a bottled water business without a well-defined plan, your venture might not get successful.

• Is packaged drinking water business profitable?

The profit margin in the mineral water business is highly dependent on your products and location. This business can be profitable if you research what is in demand in the market and come with up unique sales ideas to let your customers know about you.

• How much does it cost to manufacture a bottle of water?

The cost of manufacturing a bottle of water differs from business to business based on the technology that is being used. Moreover, the scale and production level will also affect the cost incurred during manufacturing.

To get an idea of how you can cut costs, you can see a butcher shop business plan . It is generally assumed that mass production leads to lower manufacturing costs and in turn prices.

Download Water Purification and Bottling Business Plan Template in pdf

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Water Purification Business Plan Template & Guidebook

Are you interested in starting your own water purification company but unsure of where to start? We can help with our water purification business plan template and how-to manual. Everything you need to construct a thorough business plan is included in our expertly produced template and instruction manual, from market analysis and financial predictions to marketing strategy and operational frameworks. Your ambition of starting a profitable water purification company might become a reality with the help of our step-by-step process. With the help of our tried-and-true template and direction, you can confidently start the process of creating a successful water purifying company. Start now to join the ranks of prosperous water purifying business owners!

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Water Purification Business [11 Steps]
• 25 Catchy Water Purification Business Names:
• List of the Best Marketing Ideas For Your Water Purification Business:

How to Write a Water Purification Business Plan in 7 Steps:

1. describe the purpose of your water purification business..

The first step to writing your business plan is to describe the purpose of your water purification business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a water purification business:

At our water purification company, our mission is to provide clean and safe drinking water to households and businesses in our community. We are committed to using the latest technology and techniques to remove impurities and contaminants from water, making it safe and enjoyable to drink. We strive to be a trusted source of high-quality, purified water for our customers, and to provide exceptional customer service and support. We are dedicated to promoting healthy hydration and helping our customers improve their overall well-being through the consumption of clean, pure water.

2. Products & Services Offered by Your Water Purification Business.

The next step is to outline your products and services for your water purification business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your water purification business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your water purification business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your water purification business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

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4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a water purification business?

To run a water purification business, you'll need a range of equipment and supplies, as well as a few permits. Here's a quick rundown of what you'll need:

• A physical location for your business, such as a standalone office or a space within an existing building
• Equipment for purifying water, such as water filtration systems and reverse osmosis units
• A supply of water, either from a municipal source or a private well, to be purified
• Chemicals and other materials for treating the water and removing impurities
• Depending on your location and the services you offer, you may need to obtain a business license and other permits, such as a permit to operate a water purification business or a permit to use certain chemicals.

Overall, running a water purification business requires a mix of equipment, supplies, and permits to ensure that you can provide high-quality, purified water to your customers.

5. Management & Organization of Your Water Purification Business.

The second part of your water purification business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your water purification business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Water Purification Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a water purification business varies based on many different variables, but below are a few different types of startup costs for a water purification business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your water purification business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your water purification business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your water purification business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Water Purification Business Plans:

Why do you need a business plan for a water purification business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your water purification business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your water purification business?)

To build a business plan for your water purification business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written water purification business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a water purification business plan yourself?

Yes, you can write a water purification business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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Water Purification Business Plan

Start your own water purification business plan

H2O Industries

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

H20 Industries, Inc. (H20 Industries) provides the service of ion exchange portable tanks. This is the process of purifying water for industrial purposes. H20 Industries will take advantage of an unsatisfied market need for segregated resin regeneration on a portable basis. The company will primarily focus its marketing strategies on offering segregated regeneration services to the untapped market of customers who require high-quality regeneration for their deionized (DI) water treatment facilities. The facility that H20 Industries will utilize is located in Newark, California and is already in limited production. Full production will begin at the end of September, with sales growing gradually to near capacity by the end of the first year, with very healthy gross sales in the first year, and increasing in the second and third years.

1.1 Objectives

The primary objectives are:

• To segment the market for portable regeneration service by stressing H20 Industries’s capability at providing segregated regeneration. The goal is to reach monthly sales of 1,710 cu ft of segregated resin by the end of the first year.
• To build up a dealership network of 15 knowledgeable and efficient water service companies who will represent H20 Industries in areas outside direct sales from the factory.
• To set up a bulk regeneration facility with a capacity of 40 cu ft daily, and sell its full capacity in the large general portable exchange service market through its own sales force, and through a dealership network.

1.2 Mission

H20 Industries’s mission is to segment the market for pure water by providing niche products to specialized industry sectors who are otherwise not properly serviced by large pure water suppliers. Segregating a customer’s H20 Industries resin and regenerating it on a portable tank basis to hospital dialysis units is an excellent example of such a niche product that stresses quality and service to users who are prepared to pay a premium price.

1.3 Keys to Success

H20 Industries’s primary keys to success are:

• Good quality control in the factory . Customers for high purity water business have a very low tolerance threshold for flaws.
• Fast response . In the case of most of H20 Industries’s customers, the cost of the water is not a major element in their over-all costs, but a very expensive shut-down could result due to poor or slow servicing.
• High-profile allegiances . Key to over-all company success is connected closely with success in achieving the goal of developing a dealership network of service-oriented water companies.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

H20 Industries took over a customer base and a small quantity of assets from a predecessor company. By moving to a new location with more space, and by designing an efficient productive capability, H20 Industries will be ready to aggressively penetrate the growing market for portable DI exchange by October 1999.

2.1 Company Ownership

H20 Industries was established in October 1998 through the purchase of the assets of Commercial Waters Systems, Inc. (CWSI). CWSI was an under-capitalized, cash flow-starved DI exchange tank service provider. Three hundred sixty of the shares of H20 Industries are owned by David R. Smith, vice president sales and applications of PROSYS, a large manufacturer and system designer of water treatment equipment. Five hundred sixty of the shares are owned by John Jones who is regional sales manager for DUFF. The remaining 200 shares are currently held by the daughter of the seller, but are expected to soon be transferred to the new owners.

Additional investors have expressed a willingness to invest. This would help bring in needed administrative expertise, while also increasing the equity base.

2.2 Start-up Summary

Assets of a former operating company were bought out and customers of the former company continue to be serviced by the purchasing company, H20 Industries, partly from continuing operations and partly from farming regeneration work out. However, this plan is being written as a start-up primarily because there are no reliable financial figures for prior years for comparison purposes, and partly because of the move to new facilities and the sizable investment in new plant and equipment involved. Due to certain misrepresentations by the seller, the agreed sales price is under protest. It is expected that the matter will be satisfactorily resolved by payment of a much reduced amount.

The chart and table below summarize the start-up requirements for H20 Industries.

2.3 Company Locations and Facilities

The facilities are located in a rented building on an industrial estate in Newark, California.

A description of the technology involved in the production can be found in section 3.5 (Technology). The following is a description of the production layout.

• City water is fed into the building and goes directly to a carbon filter tank to remove organic materials and chlorine.
• A centrifugal pump is installed, in the unlikely event that city water pressure falls below 40 pounds per square inch (psi).
• A hot water boiler is provided to supply hot water (100 degrees F) from part of the incoming city water. This water is needed for anion treatment due to the specific gravity of the caustic material.
• The heated water then passes through a cation and an anion filter tank.
• The deionized hot water goes to the caustic tank where it mixes with the caustic material used to regenerate at the anion pad.
• Part of the unheated incoming city water is deionized by passage through similar cation and anion tanks. These tanks, as well as the tanks deionizing the heated in-coming water, are regenerated automatically at night when production is shut down.
• Water, not H20 Industries, is used at the spent tank staging area to empty the incoming tanks into the separation cones, and more water (H20 Industries) goes to the cation regeneration pad for use in adduction as well as flushing of the regenerate.
• The rinse water, as well as the acid and caustic solutions, now pass into an 8,000-gallon blue tank where, with the help of compressed air for mixing, neutralization takes place to obtain the allowed Ph level.
• A 500-gallon neutralization tank and a 250-gallon polishing tank are provided prior to disposal of the waste water into the city sewer system.

Products and Services

The company is in the water purification business. H20 Industries is engaged in a specific branch of this business called “Service deionization.” Within this branch, the company plans to emphasize a further service specialization known as “segregated regeneration,” as opposed to “bulk regeneration.” This concept is explained in the following sections.

3.1 Product and Service Description

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The service products offered by H20 Industries are segregated as well as bulk regeneration of portable H20 Industries exchange tanks. The service is offered in three tank sizes of 3.6, 2.5, and 1.4 cubic feet (cu ft). In these sizes, the company will offer:

• Mixed bed (combination of anion and cation regenerated resin)
• Cation regenerated resin
• Anion regenerated resin
• Carbon (used for pre-filtering)

The application of portable deionized water is broad. Practically all industries using water in processing are potential accounts. Size of company is rarely a determining factor. There are applications in electronics and high pressure boilers where flow rates of several hundred gallons per minute are provided by portable exchange systems. The main unique benefits are:

• The client does not have to incur substantial capital costs to install an in-house deionization plant. This could run over $50,000. The company can merely rent the portable tanks (or buy them for approximately $1,200 each) and pay for the regeneration service when the tanks become depleted.
• The company also saves by not needing experienced technicians to maintain an in-house plant.
• Space is another important factor. An in-house H20 Industries capability requires a great deal of space, whereas a portable tank system using flexible hose connections can fit virtually anywhere in minimal space.
• Ease of installation. H20 Industries capability can be arranged virtually in a day and can be easily expanded to accommodate growth.
• There are no chemicals, nor regenerate waste to be handled or concerned with on-site..
• Flexibility in water quality provided. Resin types can be easily changed in tanks if water quality requirements change.
• Even locations that have their own in-house H20 Industries system often use portable DI as a back-up since a shut down can be very expensive.

Providing the service to a customer is simple, usually requiring only minimal equipment. H20 Industries is available from a large competitor, US Filter and a few small competitors, such as Fluid Solutions of Lowell, MA. However, none of the competition can provide segregated regeneration (See Competitive Analysis below).

3.2 Competitive Comparison

In the Northern California area, outside of a small company in Lowell which has to farm out its regeneration business to a “DI” company in Nevada, Simply Clean in Oregon, and a couple of independent Culligan agents, there is only the very large, fully-integrated US Filter (owner of Culligan) to compete with. This company, by virtue of its size and involvement in all fields of water treatment, is not suited to satisfying small users of DI, nor are they able to respond to niche needs. For example, US Filter cannot handle segregated resin. All resin treated by US Filter is regenerated on a bulk basis, which means that various customers’ depleted resin tanks are combined. This is not a problem for many users of DI, but the dialysis department of a hospital might well object to their resin being co-mingled with resin used in the metal plating industry. H20 Industries plans to specialize in portable segregated resin service. US Filter can try to service customers with a desire for segregated DI by promising to always supply tanks with new resin, however, there are technical problems with this.

US Filter’s prices for cation and anion regeneration are $31.25/cu ft and mixed bed $43.05/cu ft. H20 Industries’s prices for the same bulk regeneration are $32 and $43, respectively. The primary market thrust of H20 Industries’s sales will be the segregated regeneration which US Filter does not offer. This product sells at a premium ($57/cu ft and $63/cu ft, respectively). Some small players in the market offer regenerated resin (not segregated) in a price range of $63 to $80 per cu ft (mixed bed).

3.3 Sales Literature

Sales literature will be written and printed. A provision for this has been made in the projected sales and marketing expenses.

3.4 Fulfillment

The service provided by H20 Industries is the regeneration of ion exchange portable tanks. The tanks themselves are supplied to customers on either a monthly rental basis or offered for sale. These tanks, and any other hardware, are readily available from a number of suppliers. By virtue of the owners’ long involvement in the industry, they are fully knowledgeable of existing sources for all hardware, including resin, as well as the supply of the two major chemicals used in the process of regeneration. The only other variable cost of production is the salt used in the brine bath, this is also readily available from a number of suppliers.

3.5 Technology

Ion exchange is a major means of purifying water for industrial purposes. The degree of purity depends on the source of the water and it’s use. Companies, ranging from car washes to the pharmaceutical and semiconductor industries all need various amounts and degrees of purified water. Ion exchange is a chemical process by which ions, or ionic substances that are considered “undesirable” in water, are reduced or removed from water by use of ion exchangers or resins. Most ground water contains unwanted dissolved substances, such as calcium and magnesium, whose molecular structure contain charged ion particles.

The most common impurities with ions of a positive charge are: sodium, calcium, magnesium, potassium, iron, and manganese. These are called cations.  The unwanted dissolved substances having negative ion charges, known as anions, are: bicarbonate, chloride, carbonate, sulfate, nitrate, and bisilicate. When a substance separates into ions, each ion is now able to combine with another ion with opposite charge, even if that ion is from a totally different type of molecule. Substances only separate into ions when immersed in water molecules. For example, a molecule of hydrochloric acid is made up of a hydrogen atom and a chloride atom. Hydrochloric acid (HCL), when immersed in water, will split apart into one positively charged hydrogen cation (H+) and one negatively charged chloride anion (CL-). If sodium hydroxide (NaOH) were added to this solution, the NaOH would split into Na+ and OH-, which would combine with the opposite charges of the hydrochloric acid ions to form sodium chloride, better known as “table salt” (Na+CL-) and leftover hydrogen and hydroxide atoms (H+OH-). The field of deionization, known as DI for short, utilizes this natural phenomenon by designing a cation exchange resin which will substitute hydrogen atoms (H+) for virtually all of the other cations, and designing an anion exchange resin which will substitute hydroxyl ions (OH-) for virtually all of the other anions. By means of this process we end up with only H+ and OH- which is equivalent to H2O (water). By forming this demineralized water, we create water which is no longer a conductor. We can measure the purity using an ohm meter. Ohms measure resistance. The higher the ohm count, the lower the conductivity. H20 Industries is routinely formed to 18 mega ohms per centimeter, which is very close to zero conductivity (18.23 at 25 degrees Centigrade). Without giving lengthy chemical explanations, what happens in the process is as follows:

• City tap water is first passed through a carbon filter to remove chlorine, sand, and other unwanted substances. Sometimes, reverse osmosis and ultraviolet light are used to remove non-ionized substances, organic materials, etc., prior to the deionization stage.
• The water then passes into a specially-treated cation resin. This resin takes the form of small beads located inside a tank. The positively charged ions from the unwanted dissolved minerals will attach themselves to the resin. This happens because the resin contains an over-equilibrium abundance of hydrogen ions (H+) which are “bumped off” of the resin beads and replaced by the positively-charged, unwanted, in-coming cation ions. The “bumped off” free hydrogen ions then pair up with anions which are left in the water to form acids.
• The “de-cationized” water then passes to a tank of anion resin to catch the unwanted negatively charged ions that have dissolved in the water. Here, the anions and the anion portions of the acids attached to the hydrogen are attracted to, and held by, the positive sites on the anion exchange resin beads. They do this by kicking off the negative hydroxyl ions that were put on the beads (again in over-abundance). The leftover hydrogen portions of the acids (H+) now join the freed hydroxyl ions (OH-) to form water (H2O).
• If a very high degree of purity is called for, the water will next pass into what is called a “mixed bed” which normally contains resin in a ratio of one part cation resin to two to three parts anion. Steps 1-3 occur again here thus catching the last traces of unwanted ions of the dissolved substances.
• The tanks of resin will continue to purify the water flowing through them until the resin balls expand and their capacity to catch ions is depleted.
• The water flow must stop until the tanks are replaced with tanks containing regenerated resin.
• To regenerate the cation resin, a solution of acid is used to bombard the resin removing all the previously-caught positively-charged ions. Then the tank is flushed to remove any excess acid. The anion resin tank is also given a caustic solution to bombard the previously-caught negative ions. The anion resin is then flushed to remove any residual caustic solution.
• The tanks now contain regenerated resin and the ion exchange process can continue with the tap water turned on.

The regeneration process can take place at the location where the water is being purified, however, most users of H20 Industries do not install the expensive equipment to do this but simply arrange for a service provider, such as H20 Industries, to replace the tanks and perform the regeneration process off-site.

As high-tech industries, such as electronics, communications, and pharmaceuticals, continue to grow, there will almost certainly be increasing use of deionization technology and deionized water. As instrumentation and analysis procedures improve, controlling and monitoring the deionization process will be easier and more efficient, and this will, undoubtedly, help create new uses for deionization that have not yet appeared, as well as make H20 Industries more affordable to sectors now using other methods of purification. As more people in the water treatment industry become familiar with the DI process, the industry for H20 Industries and equipment will benefit.

3.6 Future Products and Services

In addition to bulk and segregated portable H20 Industries, the company plans to expand sales of filters and DI cartridges. These sales have been disregarded in this business plan, but they could become more significant in the future. These products lend themselves to mail order type sales, as they are small and lightweight. Cartridges are disposable items. H20 Industries also has plans to develop a reusable shipping container for its smallest (8″ x 18″) DI exchange tank so that this can also be shipped via UPS. This product will be marketed on a website, as well as through conventional direct mail and yellow page advertising.

In the future, a logical off-shoot of the DI business is reverse osmosis (R/O) used in conjunction with DI exchange tanks. The inclusion of R/O in front of the DI tanks will extend the capacity of an exchange tank by 1000%. This addition to the product line could become a substantial element of total company sales.

Reverse osmosis and electric reversing deionization are beginning to compete with exchange tank DI technology. H20 Industries plans to offer service contracts to maintain this equipment at the customer’s location. This equipment may to either sold or leased.

Market Analysis Summary how to do a market analysis for your business plan.">

The total market in Northern California for H20 Industries is between 670,000 and 925,000 cu ft of resin annually. H20 Industries’s total productive capacity will be only 36,400 cubic feet, or 3.9-5.4%. Since H20 Industries will have the unique capability of performing segregated regeneration, which is of special interest to the medical industry (dialysis, labs and pharmaceutical), the company will emphasize sales efforts in this segment for high purity H20 Industries. This segment is estimated at 167,000 cu ft annually. Next in terms of marketing emphasis will be the electronic (223,000 cu ft) and machine tool industries.

4.1 Market Segmentation

The market for H20 Industries encompasses many industries, and within them there is a wide range of purity needs. At the low end, a car wash might use H20 Industries in the final rinse only. Their need for purity might be only .5 Megohms (Ohms measure resistance). Water is only a good conductor because of the quantity of dissolved solids in the water. As the ion exchange process lowers the level of total dissolved solids (TDS) the resistance, measured in ohms, increases.

A purity level of .5 Megohms is pure enough for a car wash final rinse cycle, but not even close to pure enough for a electronics wafer manufacturer. They would need 18 Megohms, at which point the water would be pure and incapable of acting as a conductor. Generally speaking, those sectors of the market that need the highest levels of purity are the customers for H20 Industries’s main niche product of segregated DI exchange service. This means that the resin coming back from the customer is never mixed with any other company’s resin. This is a very strong sales feature when dealing with dialysis units of a hospital, labs and pharmaceutical manufacturers, and electronics makers. These customers are happy to pay a premium over the price charged for bulk DI regeneration service because they do not want their resin co-mingled with resin coming from a metal plater or a car wash.

Quantifying the market for segregated portable H20 Industries is not easy. Unlike the market for used cars, metal furniture, or nearly every product one can think of, there are no readily-available statistics on the market for portable DI exchange. There is overwhelming agreement that US Filter has the commanding market share of DI exchange business, opinions range from 85 to 95% majority.

According to the publisher of ULTRAPURE WATER®, (May-June 1999 volume 16, number 5) US Filter had sales of $1 billion in 1990, and has grown to $5 billion in 1999. Portable DI exchange is only a small portion of their business. Sales in Northern California of only DI portable exchange is estimated at $25 million. This has been confirmed from several sources. Firstly, one of the owners of H20 Industries is a former employee of US Filter. In 1996, their DI exchange business reached $12 million. This was only 65% of the market. Then the company acquired Culligan, adding another $8 million in portable DI exchange business in Northern California, and bringing the total to $20 million. It is assumed that sales have grown to $25 million over the past several years.

The relationship between input water and DI exchange capacity is charted. Assuming in-coming water quality of 200 parts per million of TDS in the far left column, a 3.6 cu. ft tank of regenerated resin can handle 10,800 gallons. This means that an average user with a flow rate of 10 gallons per minute would use up a 3.6 cu ft tank in 2.57 days, or 1.4 cu ft per day. Assuming the salesman was accurate in his statement of 2,000 customers, this would work out to 840,000 cu ft of regenerated portable DI exchange business per year. This figure is somewhat greater than the figure of 610,000, however, the subject of this business plan, H20 Industries, will have a productive capacity of only 140 cu ft per day, which represents between 4.5% and 6.3% of the total market in Northern California.

Taking the midpoint estimate for the total Northern California market of 780,000 cu ft annually, these high purity users would represent a market 558,000 cu ft

Hospital Dialysis Units and Stand alone Clinics:

California lists 16 stand-alone dialysis clinics, many of whom have multiple locations with varying numbers of stations. Every dialysis clinic, as least in Michigan according to BESCO, use H20 Industries for polishing, after initially running the water through a reverse osmosis system. Hospitals also have dialysis units. In addition, there is blood analysis work which is normally done using “wet” analysis equipment that requires H20 Industries. Assume this sector represents only 10% of the high purity market, or 55,000 cu ft annually.

Labs and pharmaceutical Manufacturers:

A list of labs and pharmaceutical makers in Northern California contains 330 names. A sample calling indicated that some use no pure water, others use such small qualities (10 gals/months) that they buy the water from suppliers like Hubbard-Hall, already made up. Others use so much H20 Industries that they have their own built-in DI system. The rest who have flow rate needs of between one and 20 gallons per minute are in the range most economically serviced by portable DI exchange. Assume this to represent 20% of the 558,000, or 112,000 cu ft.

Electronic Manufacturers:

Semiconductor manufacturers and other makers of electronic components need pure water to flush with. As microprocessors use wafers of ever-decreasing size, the requirements for pure water to rinse with increase, as do various other additional micro filtering. A list of electronics manufacturers in Northern California names 189 makers. Assume this sector represents 40% of 558,000, or 223,000 cu ft.

Machine Tools and Parts:

This is one of the fasting growing sectors as more and more manufacturers conform to the ISO 9000 standard, which requires delivered parts to be clean (defined as rinsed thoroughly with water of one Megohm purity or better). This category includes a need for H20 Industries in machines consuming cutting oil, any machine with cooling systems, and other uses. Assume this sector represents 30% of 558,000, or 167,000 cu ft.

This sector of the market will represent the market for DI exchange water lower than one Megohm in purity. Assume that the following industries take up the remaining 30% of the total market. Some industries that would be included in this “other” category would be:

• Car washes need H20 Industries for the final rinse
• Food and beverage industry would use it for improving taste and texture of baked goods, cutting and blending alcoholic beverages, dissolving food colors, etc.
• Cosmetics industry needs it for the production of shampoo, liquid soaps, cold creams, hand lotions, nail polish remover, permanent waving solutions, rubbing alcohol, and hydrogen peroxide.
• Electroplating industry utilizes H20 Industries in anodizing, electro-tinning, rinsing, rust proofing, and actual plating with various metals such as nickel, copper, silver, and chromium.
• Ceramics industry requires it to control pH in preparation of slips and glazes, rinsing clay pieces, producing enamel.
• Textile industry uses H20 Industries insteam irons and other steaming equipment, humidification systems, as well as rinsing, dying and bleaching processes.
• Railroad industry for high pressure boilers, cooling systems and storage batteries and for many applications where steam is used)
• Others, such as applications for grinding optical lenses, silvering solutions for mirrors, manufacturers of blueprint paper, manufacturers of ice, humidification of gas supplies to superchargers of high speed aeronautical engines, growing orchids, etc.

The chart and table below summarize the total market potential for the DI exchange services in Northern California.

4.2 Target Market Segment Strategy

The target markets that will receive the most attention will be the sectors which require the highest levels of pure water. This means the 70% of the market that wants quality of one Megohm or better. Within this sector, quantified as 558,000 cu ft annually, H20 Industries will emphasize those users wanting the top echelon of purity (18 Megohms).This sector of the market might be only one third of the 558,000, but even at one third (186,000), it totals more than 300% of H20 Industries’s total capacity, including its bulk portion.

4.2.1 Market Trends

One notable trend in industries is to out-source. Chief financial officers analyze the costs of producing something in-house versus the costs of farming it out. Water purification is no exception. Although many large users of H20 Industries will want to set up their own in-house capacity, the capital costs, the maintenance costs, and the costs of dealing with regenerate waste often make DI portable exchange a more economical solution. Down-sizing within a company with its own pure water manufacturing capability often will lead to a management decision to shut down their in-house plant and switch over to portable service.

Another trend is for more and more industries to need higher degrees of purity in their manufacturing process, which results in an ever-growing market for H20 Industries.

4.2.2 Market Needs

The reasoning behind the attention to the highest purity sector of the market is that H20 Industries is able to provide segregated DI exchange service. A customer’s in-coming tanks for regeneration are tagged, and after regeneration, the same resin is returned to the customer. This specialized service is a major selling feature over US Filter, who must co-mingle customers’ resin in a bulk regenerating facility. Also, bulk regeneration will not achieve the same deionization capacity as H20 Industries’s segregated method which utilizes more chemicals and longer regeneration times. A customer dealing with blood can easily be sold on segregated resin as he would not feel comfortable that his resin would be co-mingled with resin used in a totally different industry.

In addition to the feature mentioned above, H20 Industries will concentrate on those customers who place a premium on response speed and intensity of service. Again, mainly the higher quality users of H20 Industries exchange, where a shut-down would be very expensive, will demand the highest degree of quality available. Segregated exchange service from a smaller supplier is much more likely to satisfy than a huge conglomerate like US Filter where portable exchange can only be done on a bulk batching basis and represents only a small part of their overall business.

4.2.3 Market Growth

The market growth percentages used in the market analysis table were obtained from various articles appearing in ULTRAPURE WATER®, the definitive journal of high-purity water. Specific articles can be located from an index on their website, www.talloaks.com/.

4.3 Service Business Analysis

The industry for providing portable H20 Industries service is dominated by one very large company–US Filter. US Filter controls between 90 to 95% of the H20 Industries service business in Northern California. The company has grown from $1 billion to over $5 billion in the past six years, primarily through an acquisition binge. The company is now finalizing its sale to Vivendi’s Generale des Eaux water subsidiary which will result in combined sales of $12 billion, making it the largest water business in the world. Originally, US Filter’s primary focus was industrial and high purity water. Its acquisitions in other areas include drinking water, waste water, municipal water, and water supply.

Now, less than 20% of its activities relate to technologies and markets connected with high purity water. A much smaller percentage is connected with H20 Industries, and a still-smaller percentage concerned with DI exchange service. After their merger, the percentage will drop even further from 20% to eight percent. This situation has resulted in a growing dissatisfaction with US Filter’s services for H20 Industries exchange. Both owners of this project have been hearing complaints from US Filter customers for quite some time. This is not just a condition evident in Northern California, other sections of the country have noticed it and competitors to US Filter’s DI exchange business have started to grow.

4.3.1 Competition and Buying Patterns

Users of H20 Industries have had little choice in regards to their provider. It is regenerated on a bulk basis only, with no option for segregated regenerated resin (see section on Market Segmentation). Some small customers have obtained the DI exchange service through their local Culligan man or similar water serviceman who in turn obtains it from US Filter. The fact that some small players in the market can capture some of this DI exchange business from US Filter despite a higher price ($63-$80 per cu ft versus $40 per cu ft from US Filter) is a good indication of the importance that service plays in the buying decision. Rarely does the price of H20 Industries represent a significant variable production cost in a manufacturing process. Much more of a factor is worry about quality level and service response time.

4.3.2 Main Competitors

In reaction to the service complaints of customers for US Filter’s DI exchange, a couple of small competitors have sprung up in Northern California. Fluid Solutions in Lowell is one such company. This company has been supplying customers with H20 Industries exchange although they have no regeneration facilities of their own. They merely service the customers and send the tanks to a regeneration facility of another DI exchange company in Pennsylvania.

The prices charged by all local companies to regenerate are between $63 and $80 per cu ft for mixed bed. They charge $20 to $30, depending on tank size, as a monthly rental charge.

The market in Northern California is ripe for growth in competitors to US Filter which does not provide segregated regeneration and whose regenerated resin, on a bulk batch basis, will not serve as high a flow rate as non-bulk regeneration.

4.3.3 Business Participants

Industry participants are varied, as there are several means of obtaining purified water. There are companies which design and engineer reverse osmosis equipment. This equipment has a sizable share of the water market at the end close to the municipal water inlet. Reverse osmosis (R/O), in conjunction with carbon filtering and ultraviolet light, is used (for example in dialysis) to bring the TDS down to a lower level. Ion exchange, either fixed or portable, is then used to polish away the remaining impurities. Other companies may supply e-cell equipment which deionizes electrically. This technology has not advanced sufficiently to compete with traditional H20 Industries but is still occasionally sold in conjunction with a R/O system as the e-cell can only handle small levels of TDS. Some industry participants are primarily engaged in water softening and water filtration for drinking and household purposes. These companies may also utilize green sand to remove iron and magnesium hardness derived from aging municipal piping systems.

In short, there is a full range of industry participants from the local Culligan service representative mainly involved in private households, to large companies involved in engineering, design, consulting, component manufacturing, waste water treatment, etc. With respect to the narrower market for H20 Industries, there are chemical companies who supply (by the gallon) H20 Industries to very small users. There are a few small companies engaged in DI exchange service who do this only as an adjunct to their main business, such as water softening, and who only act as a distributor of DI exchange regeneration facilities located outside of Northern California.

Strategy and Implementation Summary

Besides direct sales effort to large users of H20 Industries, a major element of the company’s marketing efforts will be to develop a distributor network through existing local water service companies. These companies provide local water service to small companies and homes throughout Northern California. Most of their business takes the form of water filtering, water softening, reverse osmosis maintenance, swimming pool service, etc. The best of these will be recruited to add H20 Industries service to their product line.

5.1 Value Proposition

H20 Industries will offer segregated resin regeneration to customers wanting the highest levels of water purity. Segregated regeneration is not offered by any other company in Northern California and indications are, based on present pre-start-up sales, that users of H20 Industries are willing to pay a substantial premium for it. It represents a form of peace of mind which dialysis units, laboratories, etc. feel is important.

The second most important value proposition is service response. When H20 Industries tanks need changing customers insist on, and will receive, an immediate response.

5.2 Competitive Edge

H20 Industries’s ability to segregate a customer’s resin and return it to him regenerated to the maximum limit, should put the company in a strong competitive position.

Approximately all of H20 Industries’s business will be directed at the portable service DI market. This market emphasis should quickly be noticed by users of H20 Industries, who at present rely on US Filter. US Filter’s product range growth through acquisition and buy-outs has de-emphasized the importance of its H20 Industries exchange service.

Hence, the two major aspects of the firm’s competitive advantage would be high quality segregated resin regeneration and fast service response. It will be important to stress these advantages in the sales literature.

5.3 Marketing Strategy

H20 Industries’s marketing strategy will be to execute and communicate its value proposition of service and market segmentation advantage in providing segregated regeneration of customers’ resin.

5.3.1 Distribution Strategy

Wherever H20 Industries cannot economically sell directly, due to distance or quantities, it will utilize a network of water service companies. These companies will be carefully chosen for their quality of service. An arrangement will be set up whereby the distributor will offer DI exchange service along with its other water services. The installations can easily be handled by them. They would tag the tanks and return and pick up from the H20 Industries plant. Being able to offer this service increases the image of the local water service company. It fosters a feeling a one-stop shopping. A 33% discount off the retail price should be adequate to satisfy the distributors.

5.3.2 Positioning Statement

H20 Industries’s ability to regenerate resin on a segregated basis, rather than only bulk, is a capability that should provide quick and easy entry into the user market where the highest water purity is needed. These users, blood analysis, hemodialysis units, and medical laboratories for example, are especially sensitive to contamination risks. Simply pointing out to these users that bulk regeneration involves the co-mingling of their resin with resin used in the metal-finishing and car wash industries usually is quite convincing. Segregated regeneration results in the further advantage of achieving a higher DI capacity per cubic foot as greater quantities of chemicals are used during a longer regeneration period.

The second most important position statement is H20 Industries’s concentration on the DI exchange business. This concentration will force H20 Industries to provide a higher level of service, and more quickly, too. It must be remembered that the cost for H20 Industries in the market for the highest level of water purity is not a significant cost element in the overall cost structure. However, a service shutdown, for quality or for service reasons, would be very costly to high technology users of H20 Industries.

5.3.3 Pricing Strategy

In line with the conclusions drawn in the positioning statements, H20 Industries can charge a higher price for its segregated regenerated resin. There is virtually no competition for this product in the Northern California market.

Charging $63 per cubic foot (mixed bed), as used in the sales projections, is more than a 65% increase over the price for US Filter’s bulk resin price for mixed bed. H20 Industries is currently successfully charging in excess of $70 for this product. It is essential that H20 Industries place a premium price consistent with its superior product.

Wholesale prices have been established to encourage the quick formation of a dealership network. Dealers are afforded a 33% discount.

5.3.4 Promotion Strategy

The main focus of promotion will be two-pronged: promotion to H20 Industries end users, and promotion to wholesalers.

Promotion to wholesalers should receive primary stress due to the extended reach made possible by the wholesaler network with its existing customer base. The sales force of these wholesale distributors needs to be educated on H20 Industries’s positioning statement so that they all understand the important sales advantages of segregated resin. Being able to offer DI exchange service to a distributor’s customer list is a great advantage to the distributor, and this fact needs to be clearly spelled out to them. Therefore, the H20 Industries relationship with a dealership network is one in which both sides benefit.

H20 Industries should strive to create a small-town, friendly relationship with its customers. Company brochures will show a map with all the H20 Industries locations, including each newly acquired distributor. The distributor trucks, as well as H20 Industries vehicles, would carry the H20 Industries logo, helping all to achieve name recognition. Cost savings would result through sharing literature, leads (by territory and/or industry), co-op marketing costs, and the sharing of technical expertise.

Direct marketing to customers within easy reach of H20 Industries should stress service. As a major supplier of resin stated: “US Filter is a huge concern that closes down at 5 P.M. on Friday.” Customers for H20 Industries need to feel that they can get service after hours, and even on a Saturday if need be. These customers feel much more comfortable dealing with an exchange service that is closer in size to the customer, and where the exchange service is an important portion of total sales revenue of the supplier. Prompt deliveries, trouble-free installations, good technical advise, etc. are main building blocks of the promotion strategy.

5.4 Sales Strategy

The sales strategy is to concentrate on that segment of the market most easily captured by the following sales feature: segregated regeneration of portable resin. In addition, the fastest way to reach the sales goal for the first several years is by actively working to develop a dealership network for H20 Industries.

5.4.1 Sales Forecast

Sales Projections:

Sales (July 1999) are running at less than 15% capacity monthly, exclusive of rental revenue. This approximates 285 cubic ft per month. The plant capacity will be 100 cu ft per day, on a one-shift basis. Based on the potential market outlined in the Marketing Section of this plan, growth in sales of regenerated segregated resin should reach 433 cu ft per month by October (equals 20 cu ft/day) which is this plan’s starting point, and growing steadily each month until 80 cu ft per day is reached (80% capacity) by the end of the first year. Total production of segregated resin is assumed to be split into equal quantities of anion, cation, and mixed bed.

Once the 80% capacity utilization level is reached (October 2000), unit sales will grow modestly in year two and year three. This growth can be achieved within the capacity limits of 100 cu ft daily (26,000 cu ft per annum) without increases in production labor. Further increases in segregated regeneration would require overtime labor charges. Also, for the projection purposes, direct unit costs for years two and three remain at the level of year one.

The bulk regeneration pad will have a capacity of 20 cu ft and can handle two batches during an eight-hour shift, totaling 40 cu ft/day. We will assume sales for bulk regeneration will grow at the rate of 5 cu ft/day in the first month reaching capacity of 40 cu ft/day after eight months. Sales are split between mixed bed (50%), 25% anion, and 25% cation. Sales of bulk resin will grow 15% each of the first three years. As the bulk regeneration, unlike the segregated regeneration, is not labor intensive, this 15% growth can be achieved without increases in production labor.

In projecting unit prices per ten cu ft. Prices will be assumed at:

• $630/10 cu ft for mixed bed (segregated)
• $570/10 cu ft for anion or cation (segregated)
• $430/10 cu ft for mixed bed (bulk)
• $320/10 cu ft for cation or anion (bulk)

The above prices will be reduced for dealers who will deliver and pick up at the factory to:

• $422/10 cu ft for mixed bed (segregated)
• $382/10 cu ft for anion or cation (segregated)
• $288/10 cu ft for mixed bed (bulk)
• $215/10 cu ft for cation or anion (bulk)

We will assume that 50% of all sales will go through dealers, so the unit price weighted average of the retail and dealer prices will be:

• $526/10 cu ft for mixed bed (segregated)
• $476/10 cu ft for anion or cation (segregated)
• $359/10 cu ft for mixed bed (bulk)
• $267.50/10 cu ft for cation or anion (bulk)

Variable Unit Costs:

The costs connected with one cubic foot of segregated anion treatment involve the cost of:

• City water.
• City sewer disposal.
• Cost of carbon filtering and converting city water to H20 Industries.
• Cost of heating water.
• Cost of Sodium Hydroxide.

Cost of replacing small amounts of lost resin.

• City water is supplied by Newark, at $2.70 per 100 cu ft, which works out to (7.48 gallons in one cubic foot) $0.0036 per gallon. It requires one gallon per minute for 45 minutes to regenerate one cubic foot of anion, which comes to 45 gallons. The slow rinse needs one gallon/minute for 20 minutes, and the fast rinse needs five gallons/min for 40 minutes. This comes to 220 gallons. Finally, testing takes another 12.5 gallons. Total water consumption per cubic foot of anion resin is 277.5 gallons, or $1.00.
• All water used eventually passes to the sewer which is metered at $2.45 per 100 cubic feet or $0.0032 per gallon. Cost per cubic foot of anion serviced is $0.91.
• Cost of carbon filtering and converting city surface-sourced water to H20 Industries is arrived at by assuming that one cu ft of regenerated resin has the capability of producing sufficient H20 Industries to regenerate five cu ft of spent resin. The costs of regenerating one cu ft of anion resin without H20 Industries costs are approximately $8.96. Dividing this amount by five comes to approximately $1.80 for the H20 Industries per gallon of anion resin serviced.
• Gas to heat incoming city water (average temp 40 degrees) up to 100 degrees goes by a formula (8.34 X number of gallons X temp rise) or 500.4 BTU’s per gallon. 277.5 gallons would need 138,610 BTU’s which, when divided by 104,000 BTU’s per thermal unit, comes to 1.3352 therms. One therm (assume G41 rate class) is billed at $.81 by Essexgas, so 1.3352 therms will cost $1.08.
• Sodium hydroxide is a caustic chemical supplied in a 55-gallon drum containing 50% solution. The regeneration process requires one drum to regenerate 12 anion tanks of each two cu ft. Therefore, one cubic foot of anion requires 2.2917 gallons, or .04167, of a drum. One 55-gallon drum costs $80.50 (Hubbard-Hall Inc.). Cost per cubic foot of anion servicing is $3.35.

Experience indicates that with each regeneration it is necessary to replace approximately two percent of the resin. Anion resin costs $130 per cu ft. Cost is $2.60 per cu ft of anion serviced.

Summary of Anion servicing costs:

• City Water: $1.00
• City Sewer: $0.91
• Carbon filtering and DI: $1.80.
• Gas to heat water: $1.08
• Sodium Hydroxide: $3.35
• Resin replacement: $2.60

Total for anion servicing: $10.74

The costs connected with servicing one cubic foot of segregated cation treatment involve the cost of:

• Cost of heating water (not needed for cation treatment).
• Cost of Hydrochloric acid.
• City water is supplied by Newark at $2.70 per 100 cubic feet which works out to (7.48 gallons in one cubic foot) $0.0036 per gallon. It requires one gallon per minute for 20 minutes to regenerate one cubic foot of cation, which comes to 20 gallons. The slow rinse needs one gallon/minute for 20 minutes, and the fast rinse needs five gallons/minute for 30 minutes. This comes to 170 gallons. Finally, testing takes another 12.5 gallons. Total water consumption per cubic foot of cation resin is 202.5 gallons, or $0.73.
• All water used eventually passes to the sewer, which is metered at $2.45 per 100 cubic feet, or $0.0032 per gallon. Cost per cubic foot of anion serviced is $0.66.
• Cost of carbon filtering and converting city water to H20 Industries is estimated at $1.46 per cu ft of cation serviced based on experience that one cu ft of regenerated cation resin has the ability to produce enough H20 Industries to regenerate five cu ft of cation resin. ($7.32 divided by five equals $1.46)
• No cost to heat water.
• Hydrochloric acid is supplied in 55-gallon drums containing 30% solution. The regeneration process requires two drums to regenerate 12 tanks of each two cubic feet, using an eight to ten percent solution. Therefore, one cubic foot of cation requires 4.6 gallons or .08363 of a drum. One 55 gallon drum costs $63.70 (Hubbard-Hall Inc.). Cost per cubic foot of anion servicing is $5.33.

Experience indicates that in the process of regeneration about 2% of the resin needs to be replaced. Cation resin costs $30 per cu ft. Cost is $.60 per cu ft of cation serviced.

Summary of Cation servicing costs:

• Resin replacement: $0.60.

Total: $8.78 for cation servicing.

Costs of servicing one cubic foot of mixed bed:

A mixed bed tank is more time-consuming as it requires a separation stage prior to regeneration. City water (not DI) is mixed with salt. This solution is used to bathe the anion and cation resin in a cone until the two resins separate, at which point the cation and anion are treated in the regeneration stage in the same manner as the single bed anion and cation. One mixed bed contains twice as much anion as cation. This aspect results in a weighted cost of $10.09 per cu ft Salt consumption: every cubic foot of mixed bed needs 1.5 cu ft of brine solution. There are 7.48 gallons per cu ft This comes to 11 gallons of brine needs. A 22% salt solution in this quantity of water would amount to amount two pounds. Salt is supplied by Hubbard-Hall Inc. at $.095 per pound. Adding the cost of the two pounds of salt to the weighted average cost of $10.09 comes to $10.28.

Total cost of mixed bed serving: $10.28 per cu ft.

• Bulk Regeneration Variable costs:
• Water. According to the spec sheet, 2,459 gallons are needed for 20 cu ft of mixed bed. At $0.0036 per gallon, this comes to $8.87, or $0.444 per cu ft of resin serviced.
• Sewer. Assuming all the water goes down the sewer with a minimal need for balancing chemicals, at $0.0032 per gallon, this comes to $0.4027 per cu ft of resin serviced.
• Per cu ft of mixed bed. $1.39 of acid and $1.10 of caustic soda.
• Salt. $0.07 per cu ft.
• H20 Industries and filtering/softening assume the same costs as in the production of segregated resin (i.e. $1.80 for anion and $1.46 for cation).
• Loss of resin. Assume two percent. At $130 for anion and $30 per cu ft of cation (ratio 2:3 cation to anion), a blended cost of $90 at two percent comes to $1.80 per cu ft.
• Heat for water. 3.2 therm at $.081 divided by 20 cu ft comes to $0.13 per cu ft.
• Total bulk mixed bed: $6.95, or $69.50 for 10 cu ft.

Tank Rental Income:

Because of the high costs of purchasing tanks, many new customers opt for renting tanks on a monthly basis. For purposes of these projections we will assume that:

• Dealership-generated sales resulting in tank rentals will be handled by them (i.e. ignored in these projections).
• Half of all directly-generated sales will involve rental tanks (i.e. total unit sales for October amount to 534 cu ft of which half will be dealer-generated. Total direct sales in October = 267 cu ft of which half (133 cu ft) will need rental tanks.
• Assume, for simplification of projections, all rentals will be in 12 inch tanks holding 3.6 cu ft with rental price of $40 per tank. October will see rental income of $1,480 (133 cu ft divided by 3.6 cu ft/tank times $40 rental per tank).

Tank Sales:

It is assumed that those customers who do not opt to rent their tanks will already have their own tanks or will purchase tanks from H20 Industries. Sales of tanks is assumed at only five percent of the number of monthly rental tanks. Sales price is $1,200. Cost equals $450.

5.5 Strategic Alliances

The relationship between dealerships and H20 Industries could be called a strategic alliance. These water service companies have an extensive customer base. Most of the customers have needs such as water softening, filtration, reverse osmosis maintenance, swimming pool maintenance, etc., however, many dealership customers have H20 Industries needs as well. At present, these water service companies must direct their customers to US Filter or supply the customer through US Filter. Forming a relationship between H20 Industries and these dealerships would quickly result in substantial sales increases for H20 Industries and would result in increased prestige and profits for the dealerships.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The management of H20 Industries is made up of individual shareholders with extensive expertise in the water treatment industry, as well as commercial and financial background.

6.1 Management Team

The management team is uniquely qualified to implement this business plan. The founders, John Jones and Dave Smith, have been active in the water treatment industry for years. John’s experience working with dealers in application engineering and sales has prepared him well to present the H20 Industries dealership to water service companies that he already knows. His years of calling on dealerships in all aspects of the water industry have allowed him a birds-eye view of the prevailing marketing and business practices.

Dave has been involved in the manufacturing sector of the water industry and is well respected and connected there. His training and certification as a Professional Engineer give him an advantage when consulting with customers and prospective customers.

The person planned for the position of general manager has wide-ranging experience in finance and manufacturing. He is a former vice president of Chase Manhattan Bank, team leader of a development bank (Saudi Industrial Development Fund), and founder/general manager of a factory which, after 10 years of profitable operations, was bought out in 1989.

The production manager is a chemical engineer by education and professional experience, and has demonstrated his know-how by successfully managing the production activity in the factory despite the challenges presented by the present incomplete production line.

6.2 Personnel Plan

Regeneration Personnel : A production manager must be a skilled chemical engineer with experience in water treatment applications. This person must be a hands-on individual supervising two assistants. The production manager will label the tanks as they are received to assure customer segregation and supervise the proper regeneration cycle, from separation through backwash, draw, flush, mix, and testing. The assistants will primarily be kept busy moving tanks from one stage in the regeneration cycle to the next, connecting the hosing, performing the chemical mix and draw according to the instructions of the production manager, adding salt to the brine tank, etc. The production manager is in place. One assistant is now in place. A second is needed.

An engineer/fitter is also needed to maintain the equipment and to make installations. This person is in place.

Sales and Marketing Personnel : It is planned that both owners will continue to maintain their present positions. These sales positions require them to move about the territory which provides an excellent source of knowledge of customers for H20 Industries. This information will be communicated to the sales and marketing manager who will spend his time calling and visiting potential H20 Industries users. He will be paid a base salary plus commissions. The commission will be higher for landing a new customer, and lower for repeat sales. The commission schedule will be constructed in such a way as to permit an annual total compensation that will encourage excellent sales results.

General and Administrative : An office manager is needed. Answering phones, primary contact with customers, incoming and outgoing mail, etc. He will be the main connection between the owners and the operations of the facility. Within six months, a part-time assistant will need to be added to keep pace with bookkeeping and management.

Delivery Personnel : One driver, who has additional responsibilities, is now in place. A second will need to be added after approximately four months.

Financial Plan investor-ready personnel plan .">

As of August 1999, stockholder equity stood at $112,000. Additional infusion of equity from new shareholders will boost the equity capital.

To complete the necessary planned additions to plant and equipment, a 5-year term loan will be required from a financial institution. The projected cash-flow is sufficient to repay this loan in quarterly installments. This term loan should be sufficient to cover the increases in accounts receivable, as well as to support growth in inventory of rental tanks.

7.1 Important Assumptions

Tax rate reflects the present sliding scale:

• $0 to $50,000 @ 15% Federal, plus 9.5% State tax
• $50 to $75,000 @ 25%
• $75 to $100,000 @ 34%
• $100 to $335,000 @ 39%
• $335,000 and up @ 34%

Inventory Turnover:

Since this is a service business, the only inventory is that of chemicals and some resin, both of which do not need to be stored more than two weeks. Average is one week (inventory turnover rate of 48).

7.2 Break-even Analysis

The following table and chart show the Monthly Units and Monthly Revenue Break-even calculations based on the Average Per-Unit Revenue, Average Per-Unit Variable Costs and the Estimated Monthly Fixed Costs, as drawn from the other financial tables in this plan.

7.3 Projected Profit and Loss

The following table and charts give the yearly projected profit and loss statement for H20 Industries. For a monthly analysis, please see attached appendix.

7.4 Projected Cash Flow

Cash Flow is an intrinsic projection for H20 Industries. We must maintain a suitable cash balance in the bank in order to be successful. The chart and table below outline our basic cash flow assumptions.

7.5 Projected Balance Sheet

The projected balance sheet for H20 Industries is presented below.

7.6 Business Ratios

The following table gives standard business ratios for the water treatment equipment manufacturer industry, as determined by the Standard Industry Classification (SIC) Index code 3589. The last column, Industry Profile, presents specific information and important ratios for this industry.

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Bottled Water Business Plan Template

Written by Dave Lavinsky

Bottled Water Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their bottled water production companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a bottled water business plan template step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Bottled Water Business Plan?

A business plan provides a snapshot of your bottled water company as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Bottled Water Facility

If you’re looking to start a bottled water business, or grow your existing business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your bottled water company in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Bottled Water

With regards to funding, the main sources of funding for a bottled water company are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for bottled water businesses.

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How to write a business plan for a bottled water company.

If you want to start a bottled water company or expand your current one, you need a business plan. Below we detail what should be included in each section of a business plan for a bottled water production company.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of bottled water company you are operating and the status. For example, are you a startup, do you have a bottled water business that you would like to grow, or are you operating a bottled water production company in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the bottled water industry. Discuss the type of bottled water business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of bottled water company you are operating.

For example, you might operate one of the following types of bottled water businesses:

• Purified or Distilled bottled water : this type of bottled water sells water that has been produced by distillation, deionization, or reverse osmosis.
• Sparkling bottled water: this type of bottled water contains carbon dioxide after the water has been treated. 
• Alkaline bottled waters: this type of bottled water includes increased hydrogen that causes greater hydration. Fitness enthusiasts are fans of this type of water as it provides more hydration than regular water. 

In addition to explaining the type of bottled water business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, reaching X amount of clients served, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the bottled water industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the bottled water industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis sectio:

• How big is the bottled water industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your bottled water production business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: grocery stores, offices, schools, and gyms.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of bottled water company you operate. Clearly, gyms would respond to different marketing promotions than grocery stores, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other bottled water production companies. 

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes online retailers, sports drinks such as Gatorade and Vitamin Water, and protein shakes. You need to mention such competition as well.

With regards to direct competition, you want to describe the other bottled water businesses with which you compete. Most likely, your direct competitors will be bottled water businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What type of bottled water do they provide?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide bottled water that tastes differently than the competition?
• Will you provide a type of bottled water that your competitors don’t offer?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a bottled water production company, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of bottled water company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to bottled water, will you provide electrolytes, different flavors, vitamins, and any other health products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your bottled water company. Document your location and mention how the location will impact your success. For example, is your bottled water production business located in a busy retail district, an office setting, near gyms and fitness facilities, etc. Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your bottled water marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Billboards and bus benches
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your bottled water business, including cleaning equipment, taking inventory, ordering new bottles and labels, placing labels on bottles, bottling each bottled water, marketing and promotions, and communicating with clients and customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your Xth bottled water, or when you hope to reach $X in revenue. It could also be when you expect to expand your bottled water business to a new city or location.  

Management Team

To demonstrate your bottled water business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally you and/or your team members have direct experience in managing bottled water production companies. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a bottled water production business or marketing executive with experience in company branding and advertising.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you start with a small selection of bottled water flavors and types and expand to offer a wider selection of bottled water ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your bottled water production business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a bottled water business:

• Cost of inventory 
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your bottled water location lease or list of bottled water types you plan to sell.  

Putting together a business plan for your bottled water business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the bottled water industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful bottled water business.  

Bottled Water Business Plan FAQs

What is the easiest way to complete my bottled water business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete a business plan for a bottle water production company.

Where Can I Download a Bottled Water Business Plan PDF?

You can download our Bottled Water business plan PDF  here. This is a business plan template you can use in PDF format.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of water bottle business you are operating and the status; for example, are you a startup, do you have a water bottle business that you would like to grow, or are you operating a chain of water bottle businesses?

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Bottled Water Business Plan

Your bottled water business will give your clients plenty of hydration whether it uses; filtered, distilled, or natural spring water. Thus are you ready to hydrate people and start your business out of it? But before starting it you will need careful planning.

Need help writing a business plan for your bottled water business? You’re at the right place. Our bottled water business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Bottled Water Business Plan?

Writing a bottled water business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products and services:.

Highlight the bottled water services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of bottled water company you run and the name of it. You may specialize in one of the following bottled water businesses:

• Natural spring water
• Purified water
• Mineral water
• Artesian water
• Functional water
• Describe the legal structure of your bottled water company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established bottled water service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your bottled water company business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your products & services:

Mention the paralegal services your business will offer. This list may include services like,

• Single-serve bottles
• Multipack bottles
• Premium & specialty bottles
• Water filtration
• Water delivery services
• Customized bottles

Describe the health benefits

Quality measures, additional services.

In short, this section of your bottled water plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and your unique services. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your bottled water production business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your bottled water business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, technologies & equipment:.

Include the list of equipment and machinery required for bottled water, such as water treatment equipment, bottling equipment, quality control equipment, packaging & labeling equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your bottled water business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your bottled water business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your bottled water manufacturer business plan should only include relevant and important information supporting your plan’s main content.

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This sample bottled water business plan will provide an idea for writing a successful bottled water plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our bottled water business plan pdf .

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Frequently asked questions, why do you need a bottled water business plan.

A business plan is an essential tool for anyone looking to start or run a successful bottled water business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your bottled water company.

How to get funding for your bottled water business?

There are several ways to get funding for your bottled water business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your bottled water business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your bottled water business plan and outline your vision as you have in your mind.

What is the easiest way to write your bottled water business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any bottled water business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

Can a good bottled water business plan help me secure funding?

Indeed. A well-crafted bottled water business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

What's the importance of a marketing strategy in a bottled water business plan?

Marketing strategy is a key component of your bottled water business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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How to Start a Bottled Water Business

Bottled water businesses deal in the bottling and distributing of drinking water to consumers. Whether purified, distilled, or natural spring water, your bottled water business will supply your customers with ample hydration. Taking the steps to start your own bottled water business can be a satisfying experience that allows you to make money while also helping your customers achieve a healthy lifestyle. 

Learn how to start your own Bottled Water Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a bottled water business by following these 10 steps:

• Plan your Bottled Water Business
• Form your Bottled Water Business into a Legal Entity
• Register your Bottled Water Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Bottled Water Business
• Get the Necessary Permits & Licenses for your Bottled Water Business
• Get Bottled Water Business Insurance
• Define your Bottled Water Business Brand
• Create your Bottled Water Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your bottled water business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Bottled Water Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your bottled water business?

Business name generator, what are the costs involved in opening a bottled water business.

Costs for starting a water treatment plant include storage tanks, filling machines, water treatment machines, filters, conveyors, sealers, water sterilizers, water dispensers, bottle loaders, trucks, and employees to work in the plant.

Startup costs can range from $500,000 to $750,000 for a “bare bones” plant. However, some plants may require more capital, up to $1.5 million, or more, depending on the size of your operation.

You will also need a license from the U.S. Food And Drug Administration (FDA). You will also need a permit from your state health department.

Finally, you’ll need a dedicated bottle supplier, a water source, and employees to run your plant. This is a very labor-intensive job.

What are the ongoing expenses for a bottled water business?

Ongoing expenses are extensive. Maintenance on the plant can cost tens of thousands of dollars every year for a small plant, and as much (or more) every month for a medium to large-scale bottled water plant.

Utility costs can also be high, due to the process of purifying and bottling water.

Labor costs are also high, as most employees expect a full-time salary, plus benefits. Liability insurance, health insurance, unemployment insurance, 401(k) matching and administrative services, and worker’s compensation insurance can run tens of thousands of dollars per month.

Who is the target market?

Customers are usually commercial enterprises like local grocery stores. However, some small companies do sell directly to consumers or to businesses.

How does a bottled water business make money?

A bottled water business makes money by charging customers for processing and bottling potable water.

Bottled water has a high markup. If you are selling to grocery stores, you may be able to charge $1 to $2 per bottle, or a flat rate per truckload or pallet. Most companies make arrangements for regular shipments to establish themselves as “anchor customers.” You may or may not sell your products for a lower price to get these deals, but will generally increase revenue as a result.

How much profit can a bottled water business make?

Profits can range between 100% and 500%, or more.

How can you make your business more profitable?

Your business can become even more profitable by entering niche markets such as flavored bottled water, sparkling water, spring water, and mineral water. Some companies have specialty lines of water, which include flavored mineral water, flavored sparkling water, and sports drinks.

Finally, consider offering designer waters, seltzer waters and club soda, and flavored soda.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your bottled water business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Federal Business Licensing Requirements

The Food and Drug Administration (FDA) regulates bottled water. FDA regulations for bottled water include Good Manufacturing Practices (GMPs), standards of identity and labeling requirements.

A detailed description of regulation, licensing and labeling requirements can be found here .

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a bottled water business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Bottled Water Business needs and how much it will cost you by reading our guide Business Insurance for Bottled Water Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a bottled water business

Marketing and distribution is key in this business. Your target market should be grocers, vending machine companies and operators, stadiums, event locations, and other large-scale commercial enterprises and operations that need high volume bottled water supplies.

How to keep customers coming back

Make sure you deliver on your promises and be competitive on your pricing. This is a highly commoditized industry. Often, it’s the business that meets deadlines and has the lowest (or at least competitive) pricing that wins.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This business is perfect for individuals who are passionate about their health or are health conscious and want to run a business that promotes a healthy lifestyle.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a bottled water business?

The day-to-day operations of a plant depend largely on the type of plant you run.

There are many different ways to process bottled water. Spring water is one of the most common. It comes from an underground formation and flows naturally to the earth's surface. Purified drinking water is one that is processed to remove chlorine and other contaminants. Unless your plant processes public sources of water, like municipal drinking water, you are not usually required to disclose where you sourced it.

Natural sparkling water is naturally carbonated water from a spring or well. Mineral water comes from a spring and contains dissolved minerals like magnesium, calcium, sodium, potassium, and silica and bicarbonates. Finally, seltzer water is an FDA-regulated soft drink product.

The day-to-day operations include bringing in water from an outside source and bottling it. During this process, there are many intermediary steps, including sanitising containers, preparing bottles preparing and filtering the water, and setting up packaging protocols to ensure that the water is ready to be shipped.

What are some skills and experiences that will help you build a successful bottled water business?

You will need business experience, contacts in the industry, and a working understanding of how water is purified. No degrees are necessary but you may need special permitting and licensing from the government. Most owners and managers of a bottled water business have extensive management experience, especially in a related industry.

What is the growth potential for a bottled water business?

Growth potential is virtually unlimited. Companies like Nestle own massive water processing and treatment plants where they produce bottled water for countless grocery stores and make billions in profits every year.

Most bottled water plants start life as small or medium-sized plants.

You can grow your business at a rapid pace by taking on outside financing from a bank or venture capital firm. Or, you can grow more organically from sales profits. Growing through leverage (bank loans) has its advantages. For example, your profits are likely to climb quickly on momentum. This can shortcut the time it takes you to grow and meet your revenue growth targets. However, it can also saddle you with creditors who want to see target revenue and profit targets that are too optimistic.

Growing organically is prevents this from happening, but it also slows growth and might prevent you from growing beyond a certain size.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a bottled water business?

Spend time finding a sustainable water source for your operation. Your water source will greatly influence your profits. If you find a source that costs $3 to $5 per 1,000 liters, this is going to result in a higher profit than if you’re paying the same amount for 100 liters of water.

How and when to build a team

You must begin building a team immediately. A bottled water company cannot operate as a solo or one-person company. You will need at least 20 to 50 employees to start, and you should scale up within the first 3 years to at least 50 to 100 employees, or more.

Useful Links

Industry opportunities.

• International Bottled Water Association
• International Council of Bottled Water Associations
• Water to Go Franchise Opportunity

Real World Examples

• Lithia Spring Water
• The Mountain Valley Spring
• Arbor Spring Water

Further Reading

• How to Start a Bottled Water Production Company in 20 Steps
• Important Points to Think About Your Business Plan
• Licensing & Labeling in the Bottled Water Business
• Source Water Development

Have a Question? Leave a Comment!

Starting Bottled Water Business Plan (PDF)

The bottled water business industry has been steadily growing all across the world. This is due to a plethora of reasons which vary from place to place. For instance, big beverage companies have diversified into bottled water as one of their products over the years. Due to their wide reach it means bottled water has increasingly become more available than ever before. In some parts of the world the surge in mineral water businesses has been triggered by lack of access to clean and reliable water. Thus for drinking purposes or other related uses people there now prefer to use bottled water. Another interesting factor is global warming which has seen temperatures getting much higher in most parts of the world. This has resulted in the increased demand for commercially produced mineral water. Bottled water offers convenience and tends to taste better. Plus there is general perception that bottled water is safer. That is why starting a bottled water business can pay off immensely. All this is meant to show you that starting a bottled water business is a noble idea. This article will outline how to start a bottled water business, and the bottled water business plan (PDF, Word & Excel).

Market Research

The most important aspect you will look at here is finding out about existing players to draw insights from them. The market for bottled water is usually available anywhere but it is important to know of any competitors beforehand. Your focus will be to learn how they conduct their businesses paying particular attention to scale of operation, water sources, processing methods, target clients, pricing, marketing approaches and so on. Knowing these things will be central to your ultimate unique selling point. Things like packaging and pricing can put you over your competitors if well considered. As much as many players already exist and more are entering the bottled water business field, there is always a market segment that is unattended or insufficiently attended. Thus it essential to have a detailed mineral water business before you start.

Location, Premises And Equipment

In your choice of location of the purified water business, there are some considerations that you should make. Since any bottled water business entails the need to have a seamless distribution framework, it is a factor to consider. This means you must chose a location connected to strategic road networks for easy accessibility to clients and suppliers and the ultimate distribution of the bottled water. How secure is the location you are choosing – that is another important factor to consider. What about availability of water supply? Proximity to prospective clients, suppliers and human resources is also very vital. The mineral water business plan should include the costs of purchasing or leasing the premises.

The core thing you must work on from the onset is a water treatment plant. Some of the basic inclusions are bottling machines, filling machines, purification and treatment machines, labelling machines and a water source eg a borehole. The specific equipment you need will depend on the water purification methods you are going to use for your business. For example if you decide to purify water using reverse osmosis, that means you will require reverse osmosis machinery. Water storage tanks are also required. The costs of all the equipment should be catered for in your purified water business plan.

Types Of Bottled Water

There are different types of bottled water. In fact, there is still an evolution that is leading to the emergence of new types of bottled water. Your bottled water business plan should outline the type of water you are selling.

Mineral Water

This is water comprising of substantial amounts of dissolved minerals. Some of those minerals are calcium, sodium, and magnesium. Typically the water would have also gone through certain processes such as aeration or filtration. Note that there are strictly no chemical processes involved here. This water would have been sourced from some underground source. There must be ascertained and provable pollution-free qualities regarding the source. Most importantly, the water must have certain stipulated minerals in certain prescribed concentrations. That is what can earn it the label of ‘mineral water’.

Spring Water

This is water that would have been sourced from a spring. It is important to note that most of what is termed spring water is not from springs. It is usually a marketing gimmick and the water is often just tap water. Thus if you are going to sell spring water it must truly be from a spring. People often use ‘mineral water’ and ‘spring water’ interchangeably. This is because there are some similarities. Often time the distinction is that spring water is specifically sourced from a spring.

Purified Water

This is water that would have undergone a number of purification processes. These purification processes will be meant to get rid of chemical and solid contaminants. The original source of the water can be tap water or ground water. The common purification processes involved are filtration, reverse osmosis, and distillation, amongst others.

Sparkling Water

This can also be called soda water; it is also known as carbonated water. When you drink it feels as if you are drinking a fizzy drink. That is why some call it fizzy water. It is also commonly known as club soda. Sparkling water is a result of infusing water with carbon dioxide under pressure.

Flavoured Water

This is water that would have had natural or artificial flavors added to it. The flavors can be added as one or as a blend of several flavors. They are usually fruit flavors e.g. lemon, lime, orange, raspberry, mint, and blackberry, amongst others.

Staff And Management

This depends on the scale of operations and level of sophistication of your purified water business. Anything from 6 employees going up will do for a small-scale factory. The idea is there are pertinent areas that needed to be manned e.g. management, production, financial management, sales, distribution, and housekeeping amongst other areas. Your bottled water business plan should cater for the wages and employees of all your employees.

Customer Segmentation

Primary usage.

Customer segmentation for the bottled water production business is informed by several variables. For example, the primary usage of the bottled water can give an idea. Bottled water can be for everyday use, it can be sporting use, or it can be travel. These examples translate into customers segments with specific needs or preferences.

Type Of Bottled Water

Customer segments are also a function of the type of bottled water in question. For instance, in many places the most consumed type of bottled water is purified water. Consumption dynamics for the different types of bottled water helps you understand the customer segments.

Distribution Channel

People purchase their bottled water from different outlets. Maybe they purchase from supermarkets or shops. Zoning in on one you can know whether or not they buy in bulk. There will be much to learn about customer segments by looking into the various distribution channels.

Marketing Plan

Bottled water is the easiest to market. You just have to ensure your bottled water is properly branded. The best marketing strategy is to get your bottled water in front of as many people as possible. Avail it to commercial buildings, have it used at all sorts of events. You can target hospitality and catering outlets. Target wellness and fitness centres. Sporting events are also a strategic focus. Find ways to sell your purified water there or promote it through those locations. Sponsor worthy causes by donating free bottled water. Have it sold in supermarkets and shops. Consider traders especially street vendors, where applicable. These people can push your mineral water brand faster, far, and wide. In principle, have a wide distribution network so that people see your bottled water brand everywhere. Consider working with social media influencers and even celebrities if possible. Build a website and have active social media accounts to publicize your bottled water brand. Leverage on print and electronic media as well. A proper marketing strategy should be included in your bottled water business plan.

Approaches For Bottled Water Business

Regarding bottled water there two types of service providers, namely, large-scale and small or medium scale. The large scale ones tend to be companies already established like Coca Cola as an example. This can be an approach to take i.e. starting large-scale but this is not a smart move because it is costly. Most preferably you must start small or medium scale by targeting reasonably-sized markets e.g. small towns. Then depending on the performance of the bottled water business you scale up operations in due course. In order to push sales there is a unique strategy one can use for their bottled water. You can always have an eye out for big events such entertainment or corporate events. You go ahead and pitch up an idea to supply them with custom-labelled bottled water. Many people will jump onto that since it would give an exclusive flare to an event. In terms of sales you can also enter working agreements with big clients such as food outlets, hospitality spots (e.g. hotels, spars) and so on. This will be strategic in that you guarantee a steady and consistent flow of repeat purchases.

Do not be hesitant to start a mineral water business because it is not that difficult to start one. The demand for bottled water is very high and will always be so you can always carve out your own niche. Just adhere to strict codes of quality assurance and integrity – do not be one of those frauds who package unsafe water as bottled water yet it is neither treated nor purified. It is wise to take insurance cover and to make sure you have all the required certification or licenses that might be mandatory. Find out about this from local authorities, health inspection boards, environmental agencies and the like. Packaging and pricing are crucial but to top it off you must have a robust and active marketing strategy using all available channels.

Pre-Written Bottled Water Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the bottled water manufacturing business, we encourage you to purchase our well-researched and comprehensive bottled water business plan. We introduced the business plans after discovering that many were venturing into the purified water business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global mineral water business plan will make it easier for you to launch and run your water bottling plant business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a packaged water business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the purified water business.

Uses of the Mineral Water Business Plan (PDF, Word And Excel)

The bottled water business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your bottled water business
• As a mineral water business proposal
• Assessing profitability of the bottled water business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Bottled Water Business Plan (PDF, Word And Excel)

The business plan for purified water includes, but not limited to:

• Marketing Strategy
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Industry Analysis
• Market Analysis
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the bottled water business fail, so that you can avoid their mistakes
• Ways to raise capital to start your bottled water business

The purified water business plan package consists of 4 files

• Bottled Water Business Plan – PDF file (Comprehensive Version – 101 Pages)
• Bottled Water Business Plan – Editable Word File (Comprehensive Version – 101 Pages)
• Bottled Water Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 48 pages)
• Bottled Water Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Bottled Water Business Plan (PDF)

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I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Get the Bottled Water Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

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Full Guide On How To Start A Pure Water Business In Nigeria

Pure water is a commodity highly consumed by millions of Nigerians daily. With the daily high consumption rate of the product, it can be an attractive investment opportunity for anyone looking to start a pure water business in Nigeria.

In Nigeria, the clean water business is popular due to the ever-increasing population and the government’s incapacity to provide safe and inexpensive drinking water.

Due to the scarcity of clean drinking water in some regions of Nigeria, establishing a pure water factory makes good commercial sense. The clean water industry in Nigeria is tremendously profitable, but it takes a substantial investment.

If you wish to start a pure water business in Nigeria, I can tell you that you will earn a profit if you set up your business correctly and use a smart marketing approach.

Table of Contents

What You Need To start a pure water business in Nigeria

Like any other business, some important things need to be considered before starting a pure water business in Nigeria. The market today is very filled with lots of competing producers and sellers.

However, you will not lose interest because of these figures; rather, they will provide you with a challenge to be the leading brand in the business. The following is a step-by-step instruction on starting a pure water business in Nigeria.

Have A Business Plan

Your business plan is a written document containing all of the information about how you want to start a business and your operational goals and strategies. You must carefully develop your company strategy and how you intend to attain your business goals.

A solid business plan specifies the company’s goals and objectives and tactics for achieving them. It entails market research and analysis, cost analysis, price structure, risk analysis, and forecasting of the future. It will be simple to get funding from investors if you do all of these things.

The business plan is a document that can be amended, you may alter it as your company expands. You might employ a professional consultant to assist you in writing your plan.

Get Funding

Capital is essential in the operation of any firm. Depending on the size you intend to operate, the bottled or pure water company is capital intensive.

Other cost elements to consider are the cost of land, building construction, borehole drilling, vans, distillation machines, tanks, and other costly equipment necessary for running the firm.

If you wish to start a pure water business in Nigeria, you must have sufficient funds or assets to convert to cash. Other options for raising funds include soliciting soft loans from family and friends. Learn to pitch your business to investors , it will help you when seeking funding.

Register The Business With NAFDAC

To start a pure water business in Nigeria, you must first register your company. Every food and drug company, including alcoholic beverages, must be registered under the necessary government agency.

The National Agency for Food and Drug Administration and Control (NAFDAC) monitors the quality of packaged water in Nigeria. It monitors and controls the production, importation, and distribution of food, pharmaceuticals, cosmetics, medical equipment, chemicals, detergents, medical services, and consumables.

Obtaining NAFDAC clearance is a progressive procedure that might take longer if the process is not completed appropriately. You may also register for the certificate and inspection on NAFDAC .

Starting a pure water business will also require some legal processes. You can read on the legal requirements to start a business in Nigeria for more information.

Find A Suitable Location

To start a pure water business in Nigeria, you must create a factory. This means you’ll need to acquire land, and depending on your cash, you’ll be able to lease or build your factory. The structure might be large or small, but it must adhere to the typical industrial design for ease of production.

A general office, a water production room, a storage material room, a restroom, a changing/cloakroom, and a laboratory are all part of the plan. Additionally, make certain that the producing location is free of water and air pollution. You must ensure a steady power supply available at the factory. The factory should be located in a safe region with an adequate road network.

You must either drill a borehole or collaborate with water-producing corporate organizations. Water is a raw material used in the pure water industry and must be readily available.

Get Necessary Facilities In Place 

If you want to establish a pure water-producing firm, you’ll need an overhead tank and a reservoir for backup. Then, make preparations for routine water treatment. Water treatment is key when you plan to start a pure water business in Nigeria. Therefore I’ll go through how to set up a water treatment system.

Install A Water Treatment System

This is the removal of unwanted chemicals, biological pollutants, suspended particles, and gasses from water. It is done to make water safe to drink.

When you plan to start a pure water business in Nigeria, consider that the water purification techniques employed are full-scale distillation systems, Ultraviolet sterilization, or reverse Osmosis, depending on the enterprise’s startup capacity. I’ll go over these systems in more depth.

• Distillation

The distillation system is the most effective and expensive way to purify water production. It involves boiling water to produce vapor. It removes organic matter such as viruses, organic and inorganic chemicals, germs, etc.

• Reverse Osmosis (RO)

Reverse Osmosis is another filtration technology to consider when you want to start a pure water business in Nigeria. This water purification method uses a partially permeable membrane to remove ions and undesirable compounds from drinking water.

It may also be used to cleanse drinking and cooking water by removing microorganisms from it.

• Ultraviolet Water Purification

Ultraviolet light purification is a practical, non-chemical form of water purification. It is a safe and effective disinfectant used in residential and industrial water systems. It is not enough to purify drinking water, so it is combined with reversible osmosis systems to provide complete purification.

Recruitment

Suppose you are planning to start a pure water business in Nigeria. In that case, you already know that you cannot do the work alone; you need to get involved with other people, which is why hiring is important to start a pure water business in Nigeria.

Learning the pros and cons of outsourcing in business is needed here. You need to employ machine operators, cleaners, drivers, heads of departments, security guards, managers, and cashiers.

Since water cannot be without use, you need to have customers far and wide like friends and acquaintances, student hostels, restaurants, pharmacists, street vendors, shopkeepers, and market stalls.

Other Resources you Need to Start a Pure Water Business in Nigeria

Automatic sealing machine.

It is essential to have a sealing machine to start a pure water business in Nigeria. This is used to pack and seal all types of liquids without glasses. It may be used to seal water, wine, and other liquids. Depending on your manufacturing capability, you can begin with one, two, or three.

Nylons And Bottles 

It is important to have these when you plan to start a pure water business in Nigeria, as they will carry the logo and name of your company.

It is wise for you to consider having an alternative power supply source. One challenge of starting a pure water factory in Nigeria is electricity.

Other equipment needed in the pure water factory business include;

• Packaging nylons
• Water micro filters and cartridges
• Drums, buckets, and plastic baskets
• Disposable hand gloves

Ensure you wash your tank every month; you can outsource contract staff to help with the washing.

5 Cons Of The Pure Water Business

Every business has drawbacks, but conducting thorough market research ahead of time can help you overcome any obstacles.

I’ll go over some of the issues you can encounter if you start a pure water business in Nigeria:

Failure to Make Sales on Time

The water manufactured has an expiry date, and as the deadline approaches, consumers will no longer want to purchase such pure water.

Fluctuation in Production Costs

Prices of materials such as nylon and petroleum might arise at any time, whereas the price of clean water remains constant. This will increase the cost of production and reduce profit.

Maintenance

If you look closely, you will find that most vehicles utilized for pure water distribution are in poor condition. This is because of the stress and usage they are subjected to. You must maintain the car and have a skilled technician who will maintain the vehicle regularly.

You must also maintain the various devices and equipment utilized in manufacturing, such as generators, sealing, and pumping machines.

High competition

Competition in the water industry is very high. Even your consumers will receive items from other manufacturers at some time for various reasons.

To ensure that your items are always sold in the market daily, always treat your employees with respect.

When starting a pure water factory in Nigeria, one effective technique is to offer your products in areas with heavy traffic and movement. For example, you may seek a meal canteen that provides water daily.

Inadequate supply of electricity

The current state of power in the nation does not encourage starting a pure water business in Nigeria. And as a result, you’ll need to acquire two sources of power. This adds to the operating costs since pure water production requires continuous illumination. It is prudent to utilize a decent generator that will not cause you headaches once the power company seizes the light.

Starting a clean water company in Nigeria is highly profitable. Still, it will take enthusiasm, hard work, and a large amount of beginning cash due to land, buildings, cars, machinery, and registration costs.

You can rent a location for your sachet water manufacturing company. As a result, if you are eligible for a grant, please take advantage of the chance and submit your business idea.

We offer helpful tips on business and career opportunities in our community .  Feel free to join us today.  If you’d like business and entrepreneurship tips that let you flourish, subscribe to insightpreneur . You won’t believe the value you’ll get.

About Author

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Judah Itah is an Educationist, a Certified Digital marketer, and a Copy/Content Writer. Although he loves writing and teaching Mathematics, his hobbies are reading, traveling, and music.

How Public Review/Positive Reviews Influence Business Growth and Development

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Interestingly

Good day, Please may i know prices of these machines

We can’t boldly give you prices of these machines but we’d suggest you check Jumia, Amazon or Konga.

I am so impressed with these tips. I found it useful for me in case I want to start pure water business. God bless you. I will be happy if other important information to flourish in the business is still giving to me in the nearest future.

Hi, Mr. Onifade.

I’m glad you found the article helpful. If you want to flourish in the business, you can read our article on Starting Small and Earning Big for Business Owners.

How do I get a person to help me draft the business plan

Interesting… What about staff training.

God bless u, so helpful to me.

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Standard Sachet or Pure Water and Bottled Water Business Plan

Starting and running a bottled or sachet water company is a very lucrative business in Nigeria, and you can start with a starting capital of 5.5 million Naira for a small company or above 50 million Naira for a medium-sized company.

Though many successful pure water or bottled water companies have been started without a formal business plan, the importance of a well-researched and well-written business plan cannot be overemphasised. It can be an essential factor in starting and growing your pure or sachet water and bottled water businesses, and it also serves as a road map to your destination. If one of your aims is to obtain a loan from the bank or any financial institution or from investors, our sachet and bottled water business plan is what you need to obtain that fund. Our pure water or bottled water business plan sells your company to the world and to potential investors, and it also gives you direction on how to position your business strategically.

From the table of contents to the financial tables, our business plan covers the grey areas. How can you make your executive summary stand out? How much detail is appropriate when outlining your marketing strategy? What is the best way to present the financial projections? We touched on all the major parts and professionally formatted the sachet water business plan the way it should be.

Our bottled water business plan is full of insight and industry secrets to make sure your pure water business is successful. If you are working on raising funds and you need a business plan, this completed editable MS Word and document package for a pure water or bottled water business plan, as well as the financial analysis for three years, is what you need. Please follow the instructions below to learn how to access this comprehensive and standard business plan. Also, the text of the business plan is formatted with a fully automated table of contents.

At www.UtibeEtim.com, we are professional business plan writers, and we have decided to package a professional pure water business plan to help aspiring or existing business owners that are interested in sourcing for funds from bank loans, private investors, business grants, and other business plan competitions.

Writing a professional pure water business plan can be very technical and demanding, and it also requires a lot of research. We have done the dirty work for you. It’s going to save you time, energy, and money.

The complete pure water business plan and bottled water is in Word Doc format, and the financial analysis is in Excel format so that you can edit it to suit your needs.

Let me give you an idea of what you should expect from the business plan:

1)      Table of Contents

2) The summary gives an overview of the pure water business and bottled water. It talks about products and services, marketing, and sales, among other things.

3)      Company Overview : this includes

• Mission Statement
• History and Current Status
• Markets and Products
• Keys to success
• Cost summary

4)      Product description .

5)      Industry and Market Analysis

• Introduction
• Industry analysis
• Market analysis
• Customer analysis
• Competitor analysis
• SWOT Analysis

6)      Marketing Strategy

• Target Market Strategy
• Product/Service Strategy
• Pricing Strategy
• Distribution Strategy
• Advertising and Promotion Strategy
• Sales Strategy
• Marketing and sales Forecasts

7)      Operations

• Operations Strategy
• Scope of Operations
• Operating Expenses

8)      Development

• Development Strategy
• Development Timeline
• Development Expenses

9)      Management

• Company Organization
• Management Team
• Administrative Expenses

10)   Summary of Financials

• Financial Assumptions
• Financial Forecasts
• Projected Cash Flow
• Income statement

iii.      Balance sheet

• Profit and loss
• Profit Margin, chart etc
• Financial Risks

11)   Appendices

Support for Product/Service Description (e.g., diagrams, pictures, etc.)

Support for Marketing and Sales Plan

Support for Development Plan

Support for Operations Plan

Resumes of Management Team

Financial Statements

• Income Statement [3 years]
• Balance Sheets [3 years]
• Cash Flow Statements [3 years]
• Ratio Analysis [3 years]
• Other supporting financial statements

What is the cost of the sachet/bottled water business plan?

Well if I say N30,000 , it worth it but I won’t give you for that amount and not even N20,000.

What about N15,000 ? I won’t still give you that amount. But for a LIMITED TIME I will give you for N10,000

To access this standard pure water business plan, pay N10,000 into any of the accounts below:

You can pay into any of the following accounts:

Account Name:   Etimate   Global Services Account Number: 1150007557 Bank: Skye Bank or

Account Name: Utibe Etim Account Number: 0007852498 Bank: GTB or Account Name: Utibe Etim Account Number: 2012483183 Bank: UBA

AFTER PAYMENT: Please text or email your name, phone number, payment details and your email address to 07031542324 or [email protected] and your sachet/bottled water business plan will be sent to you

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A FEASIBILITY STUDY BUSINESS PROPOSAL PLAN ON SACHET WATER PRODUCTION IN ABUJA, NIGERIA. DEVELOPED BY BRITECH PLUS+ ENTERPRISES FOR KINNBAD INVESTMENT PLC

2020, Britech Plus+ Enterprises

Water has been identified to be very important to human existence because it is very necessary for survival. Water ranked second to oxygen. A reliable supply of clean wholesome water is crucial in an attempt to promote healthy living amongst the inhabitants of a well-defined geographical region. In an attempt to proffer solution to water problem, it was estimated that 1.2 billion people around the world does not have access to clean safe water and about 2.5 billion people are not provide with adequate sanitation (Third world water forum, 2003). Majority of the affected people that lack access to clean safe water and adequate sanitation are located in the developing countries because the standard industrialized global model for safe water delivery and sanitation technology is not affordable.

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Requirements And Cost Of Starting A Pure Water Factory In Nigeria

Starting a pure water Factory in Nigeria can be very profitable if the proper procedures are followed.

Nigerians consume a lot of pure water, and manufacturing them is an often lucrative business—A pure water Factory deals in manufacturing sachet waters and distributing them to consumers.

Opening a pure water business in Nigeria doesn’t come easy, as it is capital intensive and requires more analysis, planning, and good strategies before you think of opening one.

If you choose a pure water business as a business choice, you have made the right decision, and you are now expected to take the required steps. There are several requirements needed in starting a pure water business in Nigeria.

In this article, we have put together the processes of starting your pure water factory And ensure to follow all the steps promptly.

Starting A Pure Water Factory In Nigeria

Here are steps to follow to set up a pure water factory in Nigeria:

1. Create A Business Plan:

Your business starts here. You will need a simple business plan to help you map out the strategies to run your business successfully.

Before creating a business plan for your pure water business, you have to conduct good market research; you should keep in mind that pure waters are commodities that require high sales and profits for you; it is, therefore, essential to analyze the needed details that you will leverage on.

Your business plan should answer questions like the competition, the target market, expenses, marketing, and satisfying your customers.

Your business plan should intend how you are going to make your business more profitable. So you will need to map out a good business plan before starting a pure water business (Factory).

2. Choose A Location:

Choosing a location requires a careful decision. When selecting a site for your pure water business, keep in mind that the area should be accessible and not only being accessible but instead in a location that is hygienic because it is a consumable product that requires environmental neatness.

Hence, take note of these hygienic requirements when searching for a place for your business.

If you are building a pure water Factory, ensure that the constructions are well-built; let it be sizable to fit the required purpose. And note, If your capital isn’t enough to buy land and to build a pure water Factory, you may decide to rent a space, ensure that it has the needed tendency to occupy the size of the business.

When building a Factory or leasing space, it should have a layout like a production room, packaging room, Finished goods store, Packaging materials store, changing room, and administrative room.

3. Register Your Business:

Every legit business needs to follow the correct procedure by registering their company. However, you need to register your Factory with the Corporate Affairs Commission (CAC) and NAFDAC.

As the law have it in Nigeria, every business under Food and drugs must be registered with the government regulating Food and drugs, and it will be necessary to follow the procedures to get approved by this agency. Get all the needed licenses to start operating as a pure water business in Nigeria.

4. Purchase The Equipment Needed To Start A Pure Water Business:

Here are some of the equipment needed:

1. Automated sealing machine2. Borehole installing a machine3. Packaging bags 4. Printed nylon sachets 5. Overhead tanks 6. Distiller 7. Water micron filters 8. Treatment materials 9. Beiling machine 10. Delivery truck 11. 20kVA Soundproof Generator

These are some of the equipment to consider; approach other pure water owners to know more about getting equipment from reliable sources.

5. Employ Workers:

Employ workers who know how to operate machines, and make sure your workers handle their tasks. Some of the workers needed range from operators, cleaners, drivers, security personals, supervisors, packaging, and marketing personnel.

6. Marketing:

This is an essential aspect of every business. When implementing your marketing strategy, you should know your target market.

Market your sachet waters to groceries, supermarkets, pharmacies and be competitive on your pricing if you want to retain your customers.

Cost Of Starting A Pure Water Factory In Nigeria

Based on the requirements discussed above on starting a pure water Factory, it all ranges and depends on many factors like the required equipment and materials, number of employees, business registration, cost of land and construction or leasing, and primarily based on location.

You should budget around $50,000 to start a pure water factory in Nigeria successfully. And keep in mind that you might spend less or more depending on the size and location.

Business Plan

Pure Water / Bottled Water Business Plan in Nigeria & Feasibility Study

by BusinessPlan 28 Comments

Pure Water / Bottled Water Business Plan in Nigeria – In this article, we are going to talk about the following:

How to start a Pure water business in Nigeria.

How Profitable is Pure Water Business in Nigeria?

Cost Analysis for starting the business.

Equipment / Machines you need in producing safe pure water / bottled water.

How to write a feasibility study report on how to established a pure water business.

Sample Pure water/ bottled water business plan in Nigeria / feasibility study

To order your pure water business plan, pay N10,000 to:

BANK NAME: FIRST BANK PLC

ACCOUNT NAME:  CHIBUZOR TOCHI ONYEMENAM

ACCOUNT NUMBER: 3066880122

After payment, send your name, email address and “Pure Water / Bottled Water Business Plan in Nigeria” to  07033378184

Introduction to Pure Water/ Bottled Water Business in Nigeria

Water they say is life. Water is no doubt an essential part of human life, existence and sustenance on earth. Research shows that about 71% of the earth surface is covered with water and similarly 50-65% of the total human mass is also made up of water. Also the brain is mostly made up of water, bringing us to the conclusion that we cannot survive without water

There is hardly anything we can do independent of water; water plays a pivotal role in the existence of all human life on earth, so investing in water business as one of the most consumed commodity is paramount.

Water is the most consumed natural resources but research also shows that 1 out of 10 people in the world lack access to clean drinking water. So investing in the production of clean and portable table water is not just a way of making money but also a way of service to humanity. The provision of clean and portable water on the go for any average Nigerian is purpose for the start of such venture and the growing need of this commodity is another drive.

Extreme weather conditions due to global warming also has increased the general consumption of water all these and many more are the reasons for viability of this business.

Also Read: How to Start Pure Water Business in Nigeria

How to Start a Pure Water Business in Nigeria.

• Get a Business Place.

This is the first and the most important of all requirements needed to start up the pure water factory. You will need to consider your financial strength to do this. Do you have enough funds to buy a land, build a bungalow or lease a building? If yes then you can go on from here.

First you need to buy a land and build a bungalow or lease a bungalow and remodel it to your taste but preferably you need a building of your own. The price of the land varies based on the location of your business but I will advise that you don’t start out too expensive. Make sure the building is properly secured with a fence to avoid unauthorized access.

• Business Registration /Name Registration and Logo Creation

After securing the business location which will serve as your factory it is to think about registering the Business. Picking put a company name is not as easy as it sounds, there are millions of registered business in Nigeria and trust me when I say u need to take your time to pick out a name and register with the Corporate Affairs Commission to give you the right to run a business then create and trademark your company logo. This also helps to keep your business secured.

• Get a Tax Number

To avoid any unwanted embarrassment from the government you also need to go to a revenue office to get your Tax Identification Number (TIN). Be a patriotic Nigerian and pay your due tax for the benefit of your beloved nation.

• Sink a Borehole

This is the major raw material you need to start this business and you need an unlimited supply of it, so drilling a borehole on the property will help your business. You can get water all year round and at any time of the day. Borehole water is clean and reliable. So call up your engineer and have them start work immediately. The benefit is enormous. The price of doing this is dependent on the location of your business and the quality of the soil.

• Install an Over Head Tank

Despite the fact that you have unlimited supply of water it is still important to have at least an overhead tank for water storage. This storage unit is preferably the plastic storage tank to avoid dealing with rust in later years if you decide to make use of a metal storage unit.

• Install Water Distilling Machine Or Water Purification Unit

It is against regulations to package untreated water so you need to have a system that treats the borehole water and make it pure enough for immediate consumption. There are two (2) types of system

• Reverse osmosis distillation system
• Ultraviolet build system.

The best still remains the reverse osmosis distillation system because it boils that water to vapor and sends it to a condenser that cools it down and concerts it back to water leaving all impurities which have higher boiling point behind. This system is more reliable but expensive.

• NAFDAC Approval

Just like the manufacturing of any other consumable goods there is a regulatory body that supervises and regulates the manufacturing of these. I strongly suggest you get an approval from NAFDAC or else u may end up in jail or at the very least lose your company. Getting the NAFDAC approval number doesn’t take so much time and money.

• Getting an Automatic Sealing Machine

Depending on the kind of sealing machine you get it could improve your capacity to produce to a high degree, some of these automatic sealers can seal as much as 18,000-20,000 seals per 8hours. Having more than one automatic sealing machine will definitely help boosting your production which will in turn satisfy much more clients and puts you at the apex of production.

Just like setting up any other kind of production center or factory the need for man power cannot be over emphasized. At every point of production you need people incharge from security to vehicle, automated machines, packaging, transportation or administrative duties. People must man these several departments and units to ensure the smooth running of the factory. While employing one thing that should be looked out for is hardworking.

• Stable Source of Alternative Power

Considering the state of the nation’s public power supply it is paramount that an alternative power supply is made available to ensure that work goes on uninterrupted during work hours,  this is to say that u need a form of stand by generator set that can power all the equipment without challenge Since all the equipment in use are electrically driven. Note also that constant availability of fuel is also important.

• Packaging and Distribution

Before people get an experience of the content of a product their first point of contact is with the packaging. Ensure quality packaging which counts as people move your product from one location to another they should never be worried of the durability of you product and its packaging. Also ensure that there is effective distribution channels.

• Quality Control

There has to be some form of internal quality control unit that checks for the effectiveness of the workers and that ensures that the quality of the product remains the way it should. Most people will drop quality when they get enough customers for one reason or the other, it is important you keep the standard of your products. This builds a high level of trust between you and the customer which will in turn bring in more patronage and Ofcus more money. Always keep a direct link between you and the consumer and distributors, questions like this should be asked often.

• How would you rate your product?
• In what way can we improve?
• Do you have any complaints whatsoever about our products?
• Questions like this keeps your consumers happy and ultimately keeps you in business, creating a place of advantage for you.

Having all these set up and with no security will make u a prey to predatory elements. Secure your factory from all unauthorized persons. Securing your equipment keeps you in business much longer. Safe guard your machineries and equipment from theft and damage.

• Maintenance

You must ensure that daily, weekly or monthly maintenance takes place on your machineries to ensure smooth running of the factory, satisfied customers and more money in the bank.

• Water is consumed daily by all whether rich or poor, old or young, male or female. Everyone needs water daily and so the more the demand increases there are more chances daily from making good money from that unlimited consumer base.
• The public water supply is rather disappointing and the need for clean and accessible table water is of the increase.
• Pure water is not expensive anyone on the street can afford it.
• The extreme weather condition of this region that is also getting worse because of the ozone layer depletion has increased the intake of water basically increasing the market for pure water manufacturers.
• The initial cost of starting the business is nothing compared to the gain that will be made in later years. The lump sum of starting the business is only spent once and from then on its all smiles to the bank.

Also Read: Pure Water / Bottled Water Production in Nigeria

Cost Analysis for pure water / bottled water business in Nigeria

• Factory – dependent on location
• Business registration – type of business name registration
• Borehole drilling – N300,000 – N400,000
• Automatic sealing machine – N350,000 – N450,000
• Distilling machine (osmosis distillation) N5,000,000 – N7,000,000
• Truck for distribution – N1,000,000 -N 2,000,000
• Generator – depends on the make, model, capacity or size
• Machine operator
• Security guard (24/7)
• Administrator /cashier/accountant
• Quality control Officer/maintenance manager.
• Satchet Water Packaging Machines
• Shrink Wrapping Machine
• Ozone Generator 3 Grams
• Data Coding machine
• Steam Shrink Labelling Machine
• Pre-Water Treatment Set (4Ton)
• Water Rising, Filling and Capping Machine (Monobloc 8,8,3) 3000BPH
• Complete Reverse Osmosis System with 2 Tons Tank
• Pet Blowing Machine

How to write a feasibility study report on how to established a pure water business

When writing a feasibility study report on establishing a pure water business, you will have to look at the following features in comparison to your desired pure water factor:

• Nearness to your targeted consumers.
• Nearness to selling point/ market.
• Power supply within  your desired business environment.
• Cost of land or lease within your desired business environment.
• Underground water body within your pure water site.
• How much capital you have to start the business.
• Building plan for pure water factory

Get our pure water / bottled water business plan here. This business plan and feasibility study can be used to apply for bank loan, grant opportunities and entrepreneur business plans like The Government Enterprise and Empowerment Program (GEEP),The Made in Nigeria Business Challenge (MINC), The Tony Elumelu Entrepreneurial Program (TEEP), YouWin programme, etc. This pure water / bottled water business plan includes the following features:

• Executive Summary (Your vision & mission)
• Business description (industry description,requirements,business risk & mitigation, requirement for entering the business)
• Definition of the Market (market segmentation, major competitors, competition advantage)
• Product description (equipment/machine, major raw materials,production process)
• Organization structure (staff salaries, etc)
• Financial management / Analysis

To place order, pay N10,000 to:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NUMBER: 0044056891

Pure Water / Bottled Water Business Plan in Nigeria & Feasibility Study © www.businessplan.com.ng

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Hi can i get the hard copy from you and pay you one on one

Hi Maria. You definitely can get the hard copy for this business plan. Are you in Abuja? Call me on 07033378184, lets talk.

I am about to go for an interview for pure water factory, how can you help me with the modern setups of the company ?

Good day,Maria. I found your write up rather rich and impressive. However,I want to know if you have a plan for small scale production of pure water,that doesn’t require much start up capital. A plan that can be executed with a startup capital of between #1,000,000 and #1,500,000. Your quick response will be appreciated. Thanks.

Hello Daniel, Yes we can give you a business plan which covers your startup capital

Hi Daniel, I am looking to start with between #5M – #10M. Do you customize the plan to reflect the startup capital? Thanks

Hello, About your inquiry in respect to starting a pure water factory between #5M – #10M, we can write you a customized business plan for you. Reach us via our phone number 07033378184. Thank you

Is the N10,000 all that is needed for the business proposal to having the hard copy handy without any other charges?

Hi Daniel, For that amount, the soft copy of that business plan will be sent to your email as a Microsoft word attachment.

Hi, I need a hard copy like one of the other reviewer said can you do a small am out plan for some one to start up in the pure water factory here in Benin. Like 1.5-# 2m. And can I get the hard copy with detail information. Thanks…

I need a soft copy of this business proposal. Where is ur office located? I prefer a cash on delivery rather than payt to a bank acct. If am able to meet you in your office, I get d soft copy and pay instantly Regards

Call us at 07033378184

Hi, I need a hard copy of this business plan that can be use to set up a business within the range of 4-5m a customized one

I need to know whether here in Uganda I can access you and whether you could use the US for computation. Andrew

Hi, for a starter who can’t afford N5m-N7m for reverse osmosis system, what is the cost estimate of the ultraviolet water treatment alternative?

Secondly, what is the time estimate for NAFDAC approval after full payment?

The time estimate for nafdac approval is 6months the fee is around 30k but you can expect to pay higher due to corrupt individuals

Good day, I deeply appreciate the information, I feel like I am ready except that I am expecting a grant I applied for this year. Once, it is approved, I will definitely contact you for further guidance. Thanks for your help

Hi, am in Anambra state. How may i get a customised hard copy of the business plan in Nnewi, to pay on delivery.

Am an water engineer.. We install pure water factory and water treatment with quality borehole drilling.. Pls whatassp us for full details..

i need a 7,000000 pure water business proposal for loan/grant.

what about if someone has the proposal at hand and no money to execute the project how is he going to go about it?

Hi, I need a 4m water production business plan for loan. How do I get a hard copy of it? I’m in Nsukka, to pay on delivery.

Hello. Please I need a bottled-water company business proposal in the range of 7-10million for every thing plus workers For Abuja. Can you make this?

sir good piece of information please do you have an office in lagos.

Good day, please I’m in Onitsha and needs a business plan for pure water/bottled water business for 10mm to pay on delivery. How does it go?

good writeup

hello, i will need a business plan for pure water/bottled water business. i will like to get a copy and hard copy as well. Please this is my email address [email protected]

Hello how can i get d softcopy on pdf Business Proposal on pure water and table water company

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This sachet & Pure water  business plan  is regularly updated and can also be used to obtain loans and grants etc.

Bottled / Pure Water Business Plan In Nigeria  –

The need for good quality drinking water packaged in a healthy condition cannot be overemphasized.

The pure water production business is very lucrative that is what you often hear, I’m not disputing that but do you know that many are also failing in this business.?

According to reports, the production of sachet water in Nigeria started in the late 90s and today the advancement in scientific technology has made sachet water production one of the fastest-growing industries in the country. So many individuals and corporate bodies in Nigeria now engage in packaging water in polythene sachets of about 50-60 cl. which they sell to the public.

Bottled / Pure Water Business Plan In Nigeria

To enable interested investors and business-minded persons to take advantage of the money opportunities in the Bottled water business in Nigeria , we at NaijaCEO have packaged a comprehensive  Pure Water Business Plan In Nigeria .

TABLE OF CONTENTS FOR THE   Bottled / Pure Water Business Plan In Nigeria

Executive Summary:

 LiaonCEM Pure water company is a water bottled company located in Lagos Nigeria.

This business proposal projects sales, personal changes balance, and the nature of our expansion over the course of the next two years of business with aim of social welfare work providing free services in any natural disasters situation.

This project includes million funding sought which will be instrumental in helping us to achieve our blended value objectives (financial as well as social).

Our company will be beneficial for ourselves but as same is it for our community.

 This proposed project presents an investment opportunity for establishing a bottled water plant for providing pure drinking water.

The proposed product line will consist of bottles of 250 ml and 1.5 to 6 litres. In the initial phase of the project, only 250ml and1.5 to 6 litres bottles will be introduced in the local market and 20

To provide clean and healthy water in every home and become a larger market leader in bottled water business Nigeria.

To provide the highest quality product keeping in mind all aspects including freshness, purity, and safety and making it easily available for consumers at very affordable prices in the market. The company aims to maintain the taste and quality of products so that the end-user can get a natural taste of the water.

GET YOUR  BOTTLED / SACHET PURE WATER BUSINESS PLAN IN NIGERIA  for N10,000 only.

PS: Price For a Personalized Bottled / Pure Water Business Plan In Nigeria PDF Latest differ from an already written one.

How To Start A Pure Water Business In Nigeria

1. craft a bottled / pure water business plan:.

You will need to craft a Business plan first, this will help you organise your business very well, and help you to be able to raise money from the bank or from any institution. Our Pure Business P{an in Nigeria Pdf Doc, can be helpful to you

2. Purchasing Land And Building The Factory: N5 Million – N8 Million

To start a pure water business in Nigeria, you need land, and depending on your capital, you can lease or build your own factory. Note that building can be big or small, it all depends on your budget, but ensure to follow the standard factory layout for overall ease of production. Your factory layout should include a general office, water production room, storage material room, toilet, changing/cloakroom, and laboratory.

In addition, you have to ensure that the production area is free from water and air pollution. You have to make sure that there’s a constant power supply at the factory. The factory should be situated in a secure area with a good road network. Note that you will need to drill a borehole or partner with water corporation agencies.

3. Business Registration: N500,000

Next is registering your business with the Corporate Affairs Commission (CAC). Here, you can do a business name registration, register as a  Limited Liability Company , or any other type of registration that suits your business structure. Registering your business name or company with the Corporate Affairs Commission can cost you as low as N10, 000 or as high as N100, 000.

You will also need to obtain NAFDAC approval to be able to make and sell your sachet water to the general public. NAFDAC approval for your water business means your water is fit for drinking. Start by going to the NAFDAC office to obtain and fill the relevant forms.

4. Secure Funding

In running any business, capital is important. The bottled or pure water business is capital intensive depending on the scale you want to operate.

There are different cost elements you have to consider; the cost of land, erecting of building, borehole drilling, vans, distilling machine, tanks and other expensive equipment that are needed for the operation of the business.

If you want to run this business as a sole proprietor, you must have enough savings or assets you can convert to cash. Other ways to raise money will be to seek out soft loans from family and friends. Also, you can source for partners or  investors  to work with. You can as well take out bank loans or apply for available grants.

5. Truck/Van

This is one of the most important things to also consider in running bottled water or pure water factory. A truck is for the distribution of processed and packaged water to retailers and end-users.

In buying a truck, you have to factor in durability and fuel consumption rate. Be sure to buy a good truck that won’t break down in the middle of the road all the time. You don’t want to be constantly repairing your truck as it will impact your business.

For instance, you can buy a fairly used or a new one depending on your budget. Just ensure you won’t have to always visit the mechanic all the time.

Pure Water Business Plan In Nigeria is compulsory If you are to make it big in the business Reasons Why You Should Start a  Pure water  /  Bottled Water Business Company

1.  Profit margin is very high ( Bottled / Pure Water Business Plan In Nigeria )

Water, which is the most important raw material for bottled water production is readily available for free. Once a borehole is drilled and set up, you will have a steady supply of water.

2. Huge Market Demand For ( bottled water in Nigeria. )

Due to growing awareness in health consciousness, there is a growing increase in health consciousness now, as people are being watchful of what they eat and drink; so as to avoid ailments such as typhoid, cancer, obesity and also live longer. Thus creating a corresponding need for bottled water. 3, Water personally has a un marched market demand

thus Water is always in demand because it is indispensable and everybody needs water to live. That’s the reason why the ( Bottle / Pure Water Business In Nigeria  is very lucrative.

4. Very Low Competition

There is little competition in ( Bottled / Pure Water Business especially here In Nigeria ) so you might want to consider going into the business now. Nobody has really taken the pure water business in Nigeria to the next level.

5.  You will create employment for people The way toward delivering bottled water isn’t an assignment for one individual alone. You will have to employ people individuals that will assist you with errands like cleaning the holders, operating the machines and so forth.

To access funds and more from banks a comprehensive Bottled Water / Pure Water Business Plan In Nigeria must be drafted carefully.

PRODUCTION EQUIPMENTS/MACHINES NEEDED for Pure Water Business Plan In Nigeria.

Automated form and seal machine water sachet machine.

Industrial water filters.

Overhead tanks/Plastic storage water tanks

Microfilters and Cup filters

Water borehole

Ultra Violet lights.

PRODUCTION MATERIALS NEEDED for  Pure Water Business Plan In Nigeria .

Nylon bags (Automated)

Packing bags.

HUMAN RESOURCES.

Production staff.

Administrative staff.

Pure Water/Bottled & Sachet Water Business Plan In Nigeria PDF – Sample Template

STARTUP CAPITAL REQUIREMENT for Pure Water Business Plan In Nigeria.

The starting up procedures for sachet water and bottled water production business in Nigeria relies upon the scale you intend to begin with.

The cost of setting up a small scale sachet/bottle water production outfit is quite different from that of medium and large scale business outfits.

For instance: You can start a small scale sachet/bottled water production business with about 5million Naira and with an average production capacity of 1000bags per shift you are sure to make at least One million Naira every month minus expenses.

While the medium and large scale sachet/bottled water production will require a start-up capital of between 10-20million Naira and are also sure to make at least a 2-3million Naira on monthly basis.

But let’s do a Breakdown Analysis of the Pure Water Business Considering your interests, this is a bit of an expo on what your potential daily/weekly/monthly profits looks like;

Based on the Market analysis, the current sachet water prices are as follows;

Consumer price: N120/150 – 1 bag (20 sachet),

Retail price: N83, which is N500 – 6 bags,

For Bulk prices: N70 – 50 bags = N3500

Let’s say your daily production target is 500 bags:

Daily = N83 * 500 bags = N41, 500

Weekly = N41,500 * 6 days = N249,000

Monthly = N41,500 * 26 working days = N1, 079,000

This is excluding expenses such as maintenance, operation, labour, and transportation costs, but the cost of producing one bag of sachet water is estimated below;

1kg of printed nylon produces 25 bags, which means 20kg gives you 20 bags = N9400

Total profit after production: N41,500 – N9400 = N32,100

Potential startup costs

N8, 000,000 (This is excluding Land and building capital)

Hurry now, Get Your Complete Bottled/Purewater Business Plan in Nigeria Document.  To place an order, pay N10,000 to

FCMB (FIRST CITY MONUMENT BANK) Account Name – LiaonCEM Solutions Account No – 7500479010

After payment text, your name and your e-mail address to 08122230861 on WhatsApp or text and you’ll receive your BAKERY BUSINESS PLAN IN NIGERIA PDF / FEASIBILITY STUDY.

It will be sent to your email address after your payment has been confirmed. (Soft copy only)

Ready To Start Your Pure Water/Bottled Water Business In Nigeria Or Africa?

Maybe you dream of opening your own Pure Water/Bottled Water Business, but you’re still working out the details of how to make that dream a reality. Well we are the leading Business consulting firm in Nigeria and can help you make the process much easier contact us with 08122230861

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Micah Erumaka

About Micah Erumaka

Micah Erumaka is the Founder of LiaonCEM solutions which owns NaijaCEO. He is an Internet Entrepreneur and a content creator. After the failure of his first company at age 18 he started NaijaCEO to help entrepreneurs with the information they need in operating a successful business in Africa

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How to Start Pure Water Business in Nigeria (Earn ₦1m Monthly)

Do you want to read the PDF plan to start a pure water business in Nigeria, equipment needed, setup cost, risks and problems?

If YES, then this is the only post to read.

You’re on the right track if you’re considering establishing a pure water business in Nigeria.

The sachet and table water business, no matter the size, is one of the most in-demand businesses in Nigeria at the moment.

Everywhere you enter today, you will see people selling pure water, which we also know as sachet water, as written on the nylon.

Pure water business in Nigeria is of diverse sizes based on your budget.

Some hawk pure water around the streets, highways, marketplaces, while some sell at shops and pure water production factories.

The high demand for pure water by Nigerians is one reason for its profitability.

Lack of good and clean water also contributed to pure water profitability.

The sellers make nothing less than a 40% return on investment during this business.

The high profit margin of the pure water business mainly depends on factors like the company’s size, production costs, and selling price.

This also affects how profitable a pure water business in Nigeria is.

Small-scale pure water businesses can open you up to money making.

Those in charge of pure water retail sales also make money from it.

Steps to Starting Pure Water Business in Nigeria

Here are the steps to start a profitable pure water business in Nigeria:

1. Study the Market

Study the pure water market to learn how it works before diving into it.

Research your target audiences, location, competitions, and purchasing power.

Learn the strategies in business so you can be able to make money.

2. Business Plan

Write a business plan that includes your target audiences, business goals, budget, and all the marketing strategies you discovered at the research stage.

A good business plan plays the role of a guard in achieving your business goals and growing your business.

3. Fulfill the Legal Requirement

You need to meet specific regulatory standards before you can officially run a pure water production business in Nigeria.

Ensure you visit the body’s office in charge of the license guiding safe water production in Nigeria to get the permits and licenses.

One of those bodies is NAFDAC.

4. Choose a Good Location

Choosing a suitable location plays a significant role in your pure water business.

While doing this, ensure to target the right audiences and avoid setting up your business anywhere you see.

Yes, we know everyone buys sachet water, but there are locations where you can make more significant sales.

Always target those locations.

5. Choose a Reliable Water Source

For a pure water production business, choose a reliable water source e and a suitable treatment procedure for your product.

You wouldn’t want people to give a bad review of your product.

Install a good water treatment plant to help.

Purify your sachet of water.

6. Packaging and Branding

The importance of packaging and branding must be considered in this context.

Build a mind-blowing brand identity.

Again, let your product packaging speak for itself and attract more customers to your brand for patronage.

7. Marketing and Promotion

After you’ve done everything necessary to build a fantastic pure water brand, it’s time to market your product and getting people out.

Know about the amazing product you have put in place.

Use different marketing channels to create awareness and drive sales.

Create an Instagram account, website, and Facebook page for your business and market your product hard.

If you want to increase your pure water production profitability, follow these steps:

• Cut down on production cost.
• Use sound and quality equipment to avoid wastage.
• Buy all your raw materials in bulk at a cheaper rate.
• Target rich audiences so you can sell at a high price and make a profit.
• Spread your distribution network.
• Do not joke about marketing.
• Always advertise your brand so people can get to know about your business.

Equipment Needed for Pure Water Business

To start a pure water business, you will need these equipments:

• Raw water storage tanks.
• Submersible pumping machine.
• Surface pumping machine.
• Water treatment plant.
• Packaging machine.
• Generator to provide backup power in case of power outages.
• PVC pipes and plumbing fittings.
• Water testing equipment.
• Personal protective equipment (PPE).

Cost of Starting a Pure Water Business in Nigeria

The cost of starting a pure water business in Nigeria today depends mainly on the business size. You can start hawking pure water with as low as ₦1000 to ₦2000.

If you want to open a shop selling in bulk to retail sellers and users, budget around ₦100,000 to ₦500,000.

Small-scale pure water production startup capital should be around ₦2,000,000 and above.

Large-scale pure water business startup capital will cost around ₦5,000,000 and above.

These cost a lot because they involve the purchase of high-quality machinery and vehicles for product supply.

Cost of Setting up a Pure Water Factory in Nigeria

The cost of setting up a pure water factory in Nigeria depends on several factors, including the size and scale of the factory, the type of equipment used, and the location of the factory.

A typical pure water factory in Nigeria can cost between ₦10 million and ₦50 million to set up.

Here is a breakdown of some of the key costs involved in setting up a pure water factory in Nigeria:

1. Land and Rent

The cost of land and rent will vary depending on the location of the factory.

Choose a location that is close to an excellent water source and has easy access to transportation.

2. Building

The cost of building a pure water factory will also vary depending on the size and scale of the factory.

A typical pure water factory will need to have enough space for the water treatment plant, packaging area, and storage facilities.

3. Equipment

The cost of equipment is one of the biggest expenses involved in setting up a pure water factory.

The type of equipment that you need will depend on the size and scale of your business, but some of the essential equipment includes water treatment plant, packaging machine, generator, PVC pipes and plumbing fittings, water testing equipment, and personal protective equipment (PPE).

Other costs involved in setting up a pure water factory include permits and licenses, utilities, marketing and advertising, and labor costs.

Risk in Pure Water Business

The pure water business, also known as the sachet water business, is a popular and lucrative business in many developing countries, including Nigeria.

However, like any business, it is not without its risks.

Here are some of the key risks in the pure water business:

1. Water Quality

The most important risk in the pure water business is the risk of producing and selling water that is not safe to drink.

This can happen because of several factors, including:

• Using a contaminated water source.
• Improper water treatment procedures.
• Poor hygiene practices.
• Damaged packaging.

Consumption of contaminated water can lead to a variety of waterborne diseases, including cholera, typhoid, and diarrhea.

This can damage the reputation of the business and lead to financial losses because of lawsuits and product recalls.

2. Competition

The pure water business is highly competitive, with many small and large producers vying for market share.

This can make it difficult for new businesses to enter the market and for established businesses to maintain their profitability.

3. Government Regulations

The pure water business is subject to several government regulations, including those related to water quality, sanitation, and packaging.

Failure to comply with these regulations can lead to fines, penalties, and even closure of the business.

4. Economic Conditions

Economic downturns can lead to a decrease in demand for pure water, as people cut back on discretionary spending.

This can hurt the profitability of pure water businesses.

Other risks in the pure water business include equipment failure, power outages, theft, and vandalism.

Pure water business owners can mitigate these risks by:

• Investing in high-quality water treatment equipment and procedures.
• Implementing strict hygiene practices.
• Using high-quality packaging materials.
• Regularly testing their water quality.
• Getting all permits and licenses.
• Complying with all government regulations.
• Purchasing insurance to cover against unexpected losses.

Building a pure water business in Nigeria is a favorable venture once you have everything in place.

With all we’ve discussed so far, we believe you understand some things about the business and the steps to get things done.

If you want to sell pure water wholesale, locate the companies you want to sell their product, rent a shop in a good place, purchase a good freezer, and start your business.

Both pure water hawkers and direct consumers will always troop in, especially if your water is always cold.

READ ⇒  71 Legit Ways to Earn Money in Nigeria (Online and Offline)

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