standard pure water business plan with 3 years financial analysis

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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Standard Pure Water Bottled Water Business Plan In Nigeria PDF & 2022 Financial Report

Our Updated sachet & Bottle water business plan is regularly updated to meet the current market prices and can also be used for loans and grants application. Setting up the ever profitable bottled/sachet water company can be very lucrative business in Nigeria since man need for water is almost infinite and contrary to what some might think, you can actually start a sachet & Bottle water business in Nigeria with capital ranging from 2.5 Million Naira for a small size company or above 10 Million Naira for a bigger production capacity. TABLE OF CONTENT 1.0 EXECUTIVE SUMMARY 1.1 OUR VISION: 1.2 MISSION 2.0 BUSINESS DESCRIPTION: 2.1 INDUSTRY DESCRIPTION: 2.3 REQUIREMENTS 2.4 BUSINESS RISK / MITIGATION 2.5 REQUIREMENT FOR ENTERING INTO THE BUSINESS 3.0 DEFINITION OF MARKET 3.1 MARKET SEGMENTATION 3.2 MAJOR COMPETITORS 3.3 COMPETITIVE ADVANTAGE 4.0 PRODUCT DESCRIPTION 4.1 EQUIPMENT/MACHINE 4.2 MAJOR RAW MATERIALS 4.3 PRODUCTION PROCESS 4.4 PRODUCT UNIQUENESS 5.0 ORGANIZATION AND MANAGEMENT: 5.1 ORGANIZATION STRUCTURE 5.3 STAFF SALARIES 6.0 MARKETING STRATEGIES 7.0 FINANCIAL MANAGEMENT/ANALYSIS CONCLUSION GET OUR BOTTLED / SACHET PURE WATER BUSINESS PLAN IN NIGERIA PDF, Call 09052016587 To place order, pay N10,000 to GTBank (Guaranty Trust Bank) Account Name – Jeweh Kelvin Account No – 0125961425 After payment text your name, your e-mail address & payment details to 09052016587 and immediately we will send a copy of the Bottled /Pure Water Business Plan in Nigeria (PDF) to your email box.

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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Energy Drink Production Business Plan [Sample Template]

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 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

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.

Finish Your Business Plan Today!

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.

Finish Your Bottled Water Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

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?

Don’t you wish there was a faster, easier way to finish your Bottled Water business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

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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

Sachet Pure Water Business Plan In Nigeria

July 28, 2020 by admin 7 Comments

Pure Water Business Plan In Nigeria – Pure Water/ Bottled water production Business Plan in Nigeria. Please note that this sachet and Bottle water business plan can be use get loan and grants and it is always updated.

Water sits at the heart of human health and the sustainability of our planet.

In Nigeria where there is no good and drinkable water the need for good and quality drinking water is very important to everyone. Everyone in the country need clean and drinkable water because of water borne disease that affect children and adults in the country. Everyone in the country do not think about the cost of water because the cost of water borne disease such as craw-craw, worm infection, water blindness, dysentery, diarrhea, typhoid fever, cholera and many more are far more expensive. That’s why it is important to go for clean water and such water it’s either sachet or bottled water.

Place an order to get YOUR Sachet/ Bottled water BUSINESS PLAN. To place an order pay N10,000

HOW TO ORDER FOR YOUR BOTTLED/ PURE WATER BUSINESS PLAN IN NIGERIA

pay N10,000 to

Account Name – Oliver Uwadia

Account No – 3094192129

After payment text your name, your e-mail address and bank teller number or your transfer reference number to 08107015636 and A Copy of our Sachet/ Bottled water Business Plan and Manual will be send to your email immediately after your payment has been confirmed.

Sachet water ( pure water) or Bottled water is among the most lucrative business in Nigeria, so if you want investors to consider your business, you have to have a clear and strong business plan regarding Sachet and Bottled water business in Nigeria. We done a lot of research from those who started with little amount and how lucrative it became we also research those who started with huge amount, we have put together a well comprehensive Sachet/ Bottled water business plan in Nigeria

Having a pure water production company you need a line of costumers such as Restaurant and many others

This a full business plan you get write a proposal with our business plan.For example you are a student and you were told to write a proposal on bottled water business proposal or write a feasibility study report on how to established a pure water business

How profitable is pure water business in Nigeria, when i hear some people asking this question i just smile because pure water business in Nigeria is so lucrative many who are in the business are making it big time.

Before starting your pure water business you have to put in place your pure water factory design get your building plan for pure water factory

Get our other business plan

Bakery In Nigeria Latest Edition feasibility studies proposal
Snacks Production In Nigeria PDF
Waste Recycling In Nigeria PDF
Cosmetics In Nigeria Latest Edition Feasibility
Standard Sachet Water In Nigeria With 3 Years Financial Analysis

We made a summary of sachet/ Bottled water business plan below. Take advantage of our latest edition and start your own Sachet pure/ Bottled water business with little or big amount.

TABLE OF CONTENT

1.0 EXECUTIVE SUMMARY

1.1 OUR VISION: Here your company vision statement

1.2 MISSION: here your company mission statement

2.0 BUSINESS DESCRIPTION: your business description

2.1 INDUSTRY DESCRIPTION: here you give a description regarding your business

2.3 REQUIREMENTS: here you share your requirement

2.4 BUSINESS RISK / MITIGATION: talk about the risk

2.5 REQUIREMENT FOR ENTERING INTO THE BUSINESS: here tell us what is required for going into the business

3.0 DEFINITION OF MARKET

3.1 MARKET SEGMENTATION: you need to know about your market

3.2 MAJOR COMPETITORS: those that are also in the business that would want your costumer

3.3 COMPETITIVE ADVANTAGE: Your strength that others don’t have

4.0 PRODUCT DESCRIPTION

4.1 EQUIPMENT/MACHINE: the machine that you are using

4.2 MAJOR RAW MATERIALS: see the Bottled / Pure Water Business to know what you need

4.3 PRODUCTION PROCESS: here you take how you can produce the Bottled / Pure Water

4.4 PRODUCT UNIQUENESS: get the Bottled / Pure Water Business plan you see what you are looking for

5.0 ORGANIZATION AND MANAGEMENT:

5.1 ORGANIZATION STRUCTURE: how is your company leadership is arrange

5.3 STAFF SALARIES: how much you pay your staff

6.0 MARKETING STRATEGIES: get the Bottled/ Pure Water Business plan and know how you can get it done

7.0 FINANCIAL MANAGEMENT/ANALYSIS

Everyone knows how important water is. We need water so that we can be able to live. Without water, not just any kind of water but clean water the body will suffer from dehydration and which will eventually lead to death. Water offer the means in which all biochemical reactions takes place for the evolution of biological system we discovered that water plays a major role in our lives.

Rumors has it that almost 80 percent of hospitals in the country do not have clean water for this reason the need to remove the entire undesirable elements and pathogens it may contain through treatment. We don’t know how true this rumors are but this shows that clean water in this country is very important.

Sachet/ pure and bottled water production Business Plan is necessary if you are ready to make it big time in the sachet pure water Business. you have to get the pure water business plan

Reasons You Should Start Bottled and Sachet Pure Water Production Business Company In Nigeria

1. The demand of Water cannot be taken for granted

Sachet Pure Water is very lucrative because the demands of water in our daily lives is very high, the high demand is essential and no matter who you are no matter your class everybody needs water to live.

2. Health Consciousness

Nigeria has come a long way when I comes to health awareness program, not quite long ago some Nigerians eat and drink the way they like without thinking about there health but now everyone wants to be healthy and the consciousness has grown. Everyone wants to be healthy on a daily bases because they are aware that to avoid sickness sure as typhoid, cancer, obesity and also live longer they need to drink and eat right. Because everyone is being careful of there health that is why the creating of bottled sachet pure water has become a lucrative business.

3. Poverty Rate

The rate of poor people in Nigeria are very high that is why the fastest selling products is sachet water also known as pure water . Rumor has that the government is trying and working to end the production and selling of sachet water, and any polythene bags.

Once the bill is passed there will be a sharp rise in the demand for bottled water in Nigeria, and that will increase the price of production and selling price. That’s why it is advisable for you to start now to put yourself in that position in case and rising advantage or opportunities come along.

PRODUCTION EQUIPMENT/MACHINES NEEDED for Bottle/Pure Water Business In Nigeria.

You Need “Automated Pump And Sealing Machine Water Sachet Machine”

You need an “Industrial Water Filters.”

You need an “Over Head Tanks/Plastic Storage Water Tanks”

You need “Micro Filters and Cup Filters”

You need a “Water Borehole”

You need an “Ultra Violet Lights”

THE RAW MATERIALS NEEDED FOR PURE WATER BUSINESS IN NIGERIA.

Nylon bags (Automated)

Packing bags.

HUMAN RESOURCES.

Production staff.

Administrative staff.

OTHER BUSINESS PLAN IN NIGERIA WITH RECENT UPDATE

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Pure Water Business Plan in Nigeria

April 24, 2020 by Business Plan Nigeria Leave a Comment

1) Executive Summary: The summary includes introduction, products, and services description, marketing and sales among others

Pure Water Business Plan in Nigeria: Water is the largest component in the body, water is very important, as it plays a very important role in the body, water plays a vital role for the development of the cells, tissues, it also helps the body systems to function normally, this is because the components of the body composed of about 60% of water, so you can imagine this earth without water.

This implies that water plays a very significant role on planet earth. Pure Water business is one of the most lucrative business in the country and even the world at large, water is sold in Nigeria as bottle or sachet, the one we know as pure water. so investing in such business is but a very wise decision to make.

The importance of water cannot be over emphasized even for consumption and for business and other purposes, but I’d be talking more on clean water, the kind of water that is good for drinking, clean water is actually consumed not only in Nigeria, but in Africa, since they are one of Millennial Development Goals (MDG), this is one reason why Africans can boast of clean water to consume.

What do we label as clean water? to me clean water has to have the following characteristics, these characteristics involves cleanness, it must be odorless, it must be tasteless, must not have color, a very clean water must not possess these characteristics, but the annoying part is that pure water in Nigeria have these characteristics and that is very annoying, that is where to make a stand in the business comes to play, as good and as lucrative the business is, one must produce good water to make you to be above your competitors, and once you make a name for yourself in this business you are ready to go, because when people know your water is very good, they’d always want to patronize you.

The Pure Water Business in Nigeria is very lucrative, but once you don’t know how to go about it as a business man, there is every possibility to run at loss, this is because the pure water business involves lots of money to start. So I’d always advice to always make your research and get the necessary information before starting up a pure water business plan in Nigeria.

This is the reason we took time to give a detailed article that contains real information needed to start a pure water business plan in Nigeria. These include

A Business plan:

This must involve everything you need to start up the business, that’s the reason for having a business plan, this plan must also involves strategies in the business, that is, how you want to go about starting up the pure water business whether its for a long period of time or for a short period of time, you’d also need to know the merits and demerits involved, plans to how to minimize risks that comes with this business, how to deal with major competitors, how the organization you are operating with is structured, things to know about, the goals on what you are operating for, to this ends, its always advised to seek professional business plans designers and that’s where we come in, we have a detailed business plan designed and this plan is done in a very simple way, a format that can be edited. so you can know what to invest and make your business grow.

Look for a good site for production : For you to start a business like pure water business production in Nigeria, you have to follow simple rules, that is you can not just start the production anywhere as this will always go against the rules and regulations of the National Agency for Food and Drug Administration and Control (NAFDAC). This is because people go about the the business the way they like, they just start it in the apartment and forget that water is very important because of its demands and as such they are always turned down from accrediting by the National Agency for Food and Drug Administration and Control (NAFDAC), make no mistake about it, without their approval, your pure water business in Nigeria is not going anywhere.

To get a reasonable site for the business, sites that are not situated in filling stations, or factories, especially factories that work with chemicals, where refuse are dumped, and even cemeteries. I always advice to get a land in town, but based on how costly getting a site in the main town can costs its still okay if you can get a site for the production just a little bit out of the main town, a site that will not consume transportation too much. we also always advise to build a bungalow with many rooms for the production, so you can have the following

A production room. First storage room to store raw materials : This is a room where raw materials for the productions are stored, this room should be well protected and well monitored. Second storage room for finished products : This is where the bags of the water that are waiting for distribution are stored, a second storage room should just be large enough, to store lots of water for distribution. Changing room : This is a room where staffs can dress up before they start working, or after they finished working, its normally a room where the workers have their lockers to change. Administrative room : This most times looks like an office is where all the paper works is carried out, it very important in any company. Toilet and bathroom : This is where staffs take the bath and ease themselves, this shouldn’t be anywhere near the main production room, or any storage rooms, it should be close to the changing rooms.

To have a niche or a name for your self, your business needs to be registered, and this is where corporate affairs commission comes in, not just the corporate affairs commission, because they are in charge of business registration in the country, you’d also need to register with the National Agency for Food and Drug Administration and Control (NAFDAC), now this is very simple all you need do, is get a unique name and logo for your business, the reason being that lots of people have lots of names already, so getting a unique name is very important, whether u are starting yours newly or working as a franchise. With your business registered, you have the right to take to court any individual or government that tempers with your business.

Equipment For Production:

I have listed below equipment needed to start up pure water business in Nigeria.

SINK A BOREHOLE: in fact this is the most important in this business, reasons being that you get lots of water especially when the borehole is deep into the ground to get clean water. Industrial Filter for Water: I always recommend the ultra violet bulb filtration method when starting the business, not for its effectiveness for its price, its the cheapest in the country and its what most pure water production companies use.

READ Catfish Business Plan

Another recommended one is the Reverse osmosis distillation, this very effective and more expensive, its another way to purify the water in the pure water production business, and it purifies it in a very high way, especially for the ones that are able to purchase it.

Machines that seals Automatically: They have different types of automatic sealing machines, so it all depends on you and the type you want, the machines basically is for sealing nylons, some machines have the ability to seal, cut, number and even bag, some are just for sealing and bagging can be done manually, so it depends on the number you want daily judging from the size of your business, some machines don’t seal a very huge amount amount daily, while some can. These machines are expensive because of their advantages, I mean what you are supposed to pay a staff for, your machines are doing it with effectiveness. A Truck is necessary: For the transporting or moving of the bags of the pure water you would need an efficient truck to take the bags of the water to your customers, that where a good truck comes to mind, because the more ground you cover the more money that’s made, trust me you don’t need a truck that wouldn’t get the water to all you customers on a daily basis. A Standby Generator: One of the biggest challenges we have in Nigeria is power, we can hardly boast of power for 6 hours in a day, for your production to be very effective, a good standby generator must be on ground and always be used, there is no need for government power, because it would hinder your production a great deal.

Staffs must be employed: I have listed below the areas man power are needed, the pure water business involves lots of money so it could be at risk if you employ the wrong staffs, not only the pure water business, any kind of business, trust me without man power, the business can not be very effective, so you’d need people that are serious, people that are ready to work to be employed to help you run your pure water production business in Nigeria. see below.

Also Read >>> Pharmacy Business plan In Nigeria

Production staffs : You’d need packagers maybe 3 or 4 in numbers, you’d also need one operator, give or take one cleaner. Marketing staff or staffs: this number depends on you, but you’d need a group of marketing staffs that would help to market the business. Administrative staffs : A manager and a cashier. For a start, the manager can take up the role of the cashier. Security staffs. Quality control and maintenance staff. This role can be taken up by a manger for a start if working on a tight budget.

The POS Machines : This helps to have less cash in the production house or office as the payments made through the POS will be in the bank automatically.

The surest way to make quick returns in the pure water business is having distributors register under your brand in the sense that you’d have to have a constant supply to them on a daily basis, pure water business in Nigeria is very lucrative, because its required on a daily basis, its not a seasonal business or a periodical business, its very expensive to set up, but this business is a sure means to recover on time since its cheap to purchase by everyone, both poor and rich, big and small alike.

The most reasonable stuff about this business is that there is a very big chance that one can recover and make more profits in time and the profits that comes with this business is far more than the amount you used to set it up, the reason is that people are in constant need of water for consumption, so putting more diligence to your business is key, the pure water production business has it’s advantages, disadvantages, competitors, dishonest staffs, customers wants and the rest, but you can overcome this huddle by being diligent, make sure your water is bigger and well packaged, have good relationship with your customers, by then they will spread words for your products and this will attracts more customers. Also always see that your staffs are in their best behaviors at all time.

2 ) Company Overview : this includes

Mission Statement
History and Current Status
Markets and Products
Keys to success

3) Product or Service description.

4) Industry and Market Analysis

Introduction
Industry analysis
Market analysis
Customer analysis
Competitor analysis
SWOT Analysis

5 ) Marketing Strategy

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

6 ) Operations

Operations Strategy
The scope of Operations
Operating Expenses

7 ) Development

Development Strategy
Development Timeline
Development Expenses

8) Management

Company Organization
Management Team
Administrative Expenses

9) Summary of Financials

Financial Assumptions
Financial Forecasts
Projected Cash Flow
Income Statements

iii. Balance sheet

Profit and loss
Profit Margin, chart etc
Financial Risks

10) Appendices

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

Financial Statements

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

Get your own Sample pure water business plan in Nigeria ! To place order, Pay N10,000 to:

Have you been dreaming of having your own pure water business, you can start now this is the time to try it out. Get your own Sample pure water business plan in Nigeria ! To place order, Pay N10,000 to:

BANK NAME: GUARANTY TRUST BANK (GTB)

ACCOUNT NAME: UWADIA JOSHUA UCHE

ACCOUNT NUMBER: 0137025869

BANK NAME: WEMA BANK

ACCOUNT NUMBER: 0245684926

After payment, send your full name, email address and topic (i.e. sachet water production business plan pdf) to 07030465171 . Your business plan will be sent to your email within 15 minutes.

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Bottled Water Business Plan

standard pure water business plan with 3 years financial analysis

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!

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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.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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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Here are The Steps to Start a Bottled Water Business

Main Sections In This Post Steps To Starting A Bottled Water Business Points to Consider Resources Knowledge Is Power Featured Video

This article provides a comprehensive guide to starting and running a bottled water business.

It includes a detailed step-by-step roadmap and valuable resources for the startup phase and ongoing operations. Save this page for future reference, and feel free to share it with others interested in the industry.

Let’s get started with the steps.

Steps to Starting a Bottled Water Business

Below are the steps to starting a bottled water business.

Each step is linked to a specific section, allowing you to jump to your desired section or scroll to follow the steps in order.

An Overview of What You’re Getting Into
Bottled Water Business Overview
Researching Your Bottled Water Business
Looking at Financials
Choosing A Business Location
Creating Your Mission Statement
Creating A Unique Selling Proposition (USP)
Choose a Bottled Water Business Name
Register Your Company
Create Your Corporate Identity
Writing a Business Plan
Banking Considerations
Getting the Funds for Your Operation
Software Setup
Business Insurance Considerations
Supplier Considerations
Physical Setup
Creating a Website
Create an External Support Team
Hiring Employees

1. An Overview of What You’re Getting Into

Is Starting a Bottled Water Business the Right Step for You?

Discovering Your Passion

A key factor holds the key to success in the business world – and that factor is you! Your drive and passion are pivotal in determining the path to triumph.

Passion: The Fuel for Success

Passion is an accessory and a vital ingredient in your entrepreneurial journey.

Challenges become opportunities for creative solutions when your heart is passionate about your bottled water business.

Conversely, lacking passion may lead you to seek an escape route rather than face obstacles head-on.

Unveiling Your Entrepreneurial Zeal

How fervent is your desire to own and manage a business? Let’s explore an intriguing perspective:

Imagine a life free from restrictions and abundant financial resources that can sustain you indefinitely. In this scenario, your choices are boundless, unaffected by monetary considerations.

The Decisive Question

Would you choose to venture into the bottled water industry in this context? If your answer is a resounding yes, it reveals your passion for this enterprise and signifies that you are on the right path.

Exploring Alternative Paths

However, if your answer leans towards a negative response, it beckons another question: What alternative path captures your preferences and aspirations? Perhaps it’s worth considering pursuing that path instead.

The Heart of the Matter

In conclusion, the essence of success lies in your passion for the business you undertake. Embrace your passion, and let it guide you towards a fulfilling and prosperous bottled water venture.

For More, See How Passion Affects Your Business . Also, see, Considerations Before You Start Your Business to identify key points for a new business owner.

2. Gaining an Overview of Owning a Bottled Water Business

Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running your business.

Understanding the Bottled Water Business

A bottled water business revolves around providing a vital necessity – water. This enterprise involves sourcing, bottling, and distributing water to various customer bases, from grocery stores and convenience stores to offices and direct residential customers.

The daily operations for such a business are multifaceted. They include tasks such as quality assurance of the water, overseeing the bottling process, coordinating logistics for distribution, handling customer inquiries and orders, and performing administrative tasks, among others.

Keys to Success in a Bottled Water Business

Establishing a Loyal Customer Base

Building a solid customer base is essential for the longevity of the business.

This can be achieved through effective marketing strategies, superior products, and exceptional customer service. Additionally, engaging with customers to understand their preferences can help tailor your products to meet their needs.

Effective Staff Management

The smooth operation of a bottled water business largely relies on its staff, from those involved in sourcing and bottling water to those managing logistics and customer service.

Proper staff management includes training, motivation, and a conducive work environment.

Managing Cash Flow

Cash flow management is crucial in running any business, including a bottled water business.

It involves tracking all transactions, ensuring that income covers expenses, planning for future expenses, and maintaining an emergency fund.

Cost Management

Maintaining quality and customer service while minimizing costs is crucial for profitability.

This can be achieved by streamlining operations, investing in efficient equipment, and implementing cost-saving strategies without compromising product quality or customer service.

Adaptability to Change

The business landscape continually evolves with industry trends, business processes, or technology changes. Staying up-to-date on these changes and adapting your business operations is crucial for long-term success.

Revenue Fluctuations

Revenue in a bottled water business can fluctuate due to various factors, such as seasonal changes or market trends .

Proper planning and strategies can help manage these fluctuations.

Competitor Management

Dealing with competitors requires a solid understanding of the market, keeping track of competitor activities, and devising strategies to differentiate your products and services.

Meeting Customer Expectations

Meeting and exceeding customer expectations are integral to a bottled water business.

This involves offering high-quality water, providing excellent customer service, and ensuring timely delivery.

Regular customer feedback is an excellent way to understand their expectations and make necessary improvements.

With this customer-focused approach, your bottled water business can thrive and become a trusted provider in the industry.

b.) Bottled Water Business Models

Types of Bottled Water Business Setups and Their Business Models

Local Bottling Operations

These businesses source water locally, treat and bottle it, then distribute it within a particular region or community.

This model often operates on a small scale, emphasizing the local origin and quality of the water. The focus may be on home and office delivery, local retailers, or both.

Large-Scale Bottling Operations

These companies function on a national or even international scale. They source, treat, and bottle water in large quantities, distributing their products across wide geographic areas.

Products are typically sold through various retail outlets, including supermarkets, convenience stores, and online marketplaces.

Private Label Bottling

In this model, a company bottles water to be branded and sold by another business.

Large retailers or brands often use this setup to offer branded bottled water without investing in sourcing and bottling infrastructure.

Office and Home Delivery Services

These businesses specialize in delivering bottled water directly to homes and offices.

They may either bottle their water or distribute products from other manufacturers. This model emphasizes convenience and regular, recurring sales to a set customer base.

Franchise Bottled Water Business

This involves buying into an established bottled water brand and operating a branch of the business under the brand’s umbrella.

In this case, the franchisor sets the business model, often including established supply chains, brand recognition, and ongoing franchisor support.

Custom Bottle Design and Packaging

These businesses focus less on the water and more on unique bottle design and packaging.

This could include personalized labels for corporate events, weddings, or promotional activities. In this model, the emphasis is on added value through design and customization rather than the water product itself.

In conclusion, identifying a profitable and high-demand niche for your bottled water business from the beginning is essential.

Carefully consider each business model and choose one that aligns with your resources, interests, and the market’s needs.

Switching your model later can be more challenging so a thoughtful initial decision can set the stage for long-term success.

c.) Making Your Bottled Water Business stand out

Unique Branding

Create a unique and memorable brand to distinguish your bottled water business from competitors.

This could involve an eye-catching logo, a strong brand story, or a distinct voice that resonates with your target market.

High-Quality Product

By prioritizing the quality of your water — through rigorous purification processes, stringent quality checks, and certified sourcing — you can gain a reputation for excellence that sets you apart.

Exceptional Customer Service

Providing outstanding customer service can make your business stand out. This can include prompt deliveries, professional responses to inquiries and complaints, and friendly service at all touchpoints.

Sustainable Practices

With increasing awareness of environmental issues, adopting sustainable practices can differentiate your brand. This can range from eco-friendly packaging to responsible water-sourcing practices.

Community Involvement

Involvement in local community events, charitable causes, or sponsorships can help your bottled water business gain visibility and a positive reputation.

d.) Add on Ideas for a bottled water Business

Complementary Products

Offering additional products that complement bottled water can enhance your business’s appeal. This could include healthy snacks, reusable water bottles, water dispensers, or water purification systems.

Subscription Service

Consider a subscription model where customers receive regular water deliveries. This offers convenience for the customer and predictable recurring revenue for your business.

Custom Labeling

Provide custom labeling services for businesses or events. This allows companies to have their logo on bottles or individuals to personalize bottles for special occasions.

Bulk Discount Offers

Discounts for large purchases can attract larger clients, such as corporate offices or event organizers, to choose your services.

e.) Questions for Your Bottled Water Business

Bottled Water Business Model

Have you decided on a specific business model for your bottled water operation? Are you considering local bottling, large-scale operations, private-label bottling, or a franchise ?

Workforce Management

Do you plan to take on all business responsibilities, or do you intend to hire employees? What roles will be needed if hiring , and how will you find suitable candidates?

Management Considerations

Will you personally oversee your bottled water business, or do you plan to employ a manager to handle daily operations?

Partnerships and Investments

Are you considering bringing in business partners or seeking external investors? If so, how will you identify and approach potential collaborators?

Business Location

Do you intend to run your bottled water operation from a home office, or do you plan to operate from a commercial location? If choosing a commercial location, what factors will guide your site selection?

Operating Format

Are you considering a physical setup, like a brick-and-mortar store, or do you plan to operate mainly online? If considering an online operation, how will you handle logistics and distribution?

Future Growth

Have you given thought to your business growth strategy? What are your long-term goals for your bottled water business? How do you plan to scale up operations when the time is right?

Regulatory Compliance

Have you researched the regulations and compliance requirements for running a bottled water business in your region? How will you ensure ongoing compliance?

Market Analysis

Do you understand your target market and your competition? Have you done market research to guide your branding, marketing, and pricing decisions?

Financial Planning

Have you drawn up a detailed business plan, including financial projections? Do you clearly understand your startup costs, operating costs, and potential revenue?

Answering these questions will prepare you for the many facets of running a bottled water business and set you on the path to success.

f.) Pros and Cons of Owning a Bottled Water Business

The Benefits of Running a Bottled Water Business

Independence

Owning a bottled water business allows you to be your own boss. You can call the shots and run the business according to your vision.

Creative Freedom

You can be innovative with your products, branding, marketing, and overall business approach. This creative freedom can make the business more fulfilling.

Potential for High Revenue

Given the universal demand for clean water, a successful bottled water business can generate substantial income.

Flexible Work Hours

Once the business is successful and you have a competent team, you may have the flexibility to set your work hours.

Control Over Working Environment

As a business owner, you can create a working environment that aligns with your values and enhances productivity.

Contribution to Health and Wellbeing

The bottled water business contributes to the health and well-being of customers by providing clean, safe water, adding a sense of purpose to your enterprise.

The Challenges of Running a Bottled Water Business

Responsibility for Problems

As the owner, you shoulder the responsibility for any problems or challenges that arise in the business.

Irregular Income

You may not have a steady income, particularly during the start-up phase or during periods of fluctuation in the business.

Challenging Start-Up Phase

Getting the business off the ground can be difficult, with many simultaneous decisions and tasks.

Customer Acquisition and Retention

Gaining and keeping customers in a competitive market can be a significant challenge.

Extra Working Hours

You may have to work long hours during certain stages, which could affect your work-life balance.

Pressure to Succeed

Running a business comes with the pressure to succeed, which can be stressful.

Significant Initial Investment

Starting a bottled water business often requires a substantial financial investment for equipment, premises, and other startup costs.

Constant Change

In business, change is inevitable, whether it’s market trends, customer preferences, or industry regulations. Adapting to these changes can be challenging.

Business Risks

Running a bottled water business, like any business, carries risks. These could range from financial losses and regulatory issues to market competition and unforeseen circumstances like natural disasters.

Quality Control Challenges

Ensuring consistent water quality can be challenging but is essential for the reputation and success of the business.

In conclusion, owning and running a bottled water business has rewards and challenges.

Careful planning, diligent management, and a willingness to adapt can help you navigate these factors for a successful enterprise.

For more, see Pros and Cons of Starting a Small Business.

3. Research

Bottled Water Business Research

Laying the Foundation: Informed Decision-Making

Before diving into any business endeavor, conducting comprehensive research is paramount.

Equipping yourself with quality information is vital to understanding the industry’s difficulties, lest you find yourself caught off guard.

Seeking Wisdom: Learning from the Experts

One valuable avenue to acquire the best insights is tapping into the knowledge of seasoned individuals in the bottled water business.

These industry experts are qualified to provide reliable information, becoming a valuable resource for your research.

Unveiling Priceless Wisdom: An Opportunity for Growth

Interacting with experienced professionals offers an invaluable opportunity to glean insights and wisdom from their years of knowledge and expertise.

The time spent with them can prove invaluable in shaping your understanding and decision-making process.

Unlocking the Path: A Guide to Reaching Out

To assist you in connecting with the right individuals and approaching them respectfully and non-threateningly, I have crafted an article brimming with ideas and strategies.

While the complete steps extend beyond this post, I strongly urge you to read the article by following the link below.

It will provide you with a comprehensive understanding of what lies ahead in your bottled water business journey.

See An Inside Look Into the Business You Want To Start for all the details.

Target Audience

Understanding your target audience in the bottled water business is crucial for reaping various benefits.

Knowing your target market allows you to tailor your offers to appeal to customers’ preferences, ensuring they find your products and services enticing.

Moreover, understanding your audience allows you to provide offerings that align with their interests, further enhancing customer satisfaction.

Target Market Ideas:

Health-conscious individuals seeking hydration solutions
Fitness enthusiasts and athletes in need of convenient, refreshing beverages
Eco-conscious consumers looking for sustainable packaging and environmentally friendly options
Busy professionals seeking on-the-go hydration solutions
Parents and caregivers looking for healthy beverage choices for their families
Outdoor adventurers and travelers in need of portable water options.
Hospitality industry (hotels, resorts, restaurants) requiring bottled water for guests
Retail stores and supermarkets looking to stock quality bottled water products
Corporate offices and workplaces in need of hydration options for employees
Event organizers and caterers requiring bulk bottled water for events
Wholesale customers seeking bottled water for resale or distribution.

For more, see How To Understand Your Target Market.

4. Looking at Financials:

Startup Costs:

Accurate Estimation for a Smooth Launch

To ensure a smooth and successful launch of your bottled water business, it is essential to gain an overview of the startup costs involved.

Accurate estimation plays a pivotal role, as underestimating can lead to financial shortfalls that hinder your business opening, while overestimating can make your venture appear risky.

The size of your operation, chosen location, employment decisions, equipment purchases, and rental agreements all impact your costs.

For more detailed information, refer to my article on Estimating Startup Costs.

Comprehensive List and Research

Compile a comprehensive list of necessary items for your startup. Then, diligently research the prices associated with each item.

Be thorough in your investigation, as you may encounter additional expenses during your research phase.

This comprehensive estimation will ensure a more accurate assessment of your startup costs.

Sales and Profit:

Key Factors for Success

The success of your bottled water business relies on several factors when it comes to sales and profitability.

These factors include the popularity and demand for your products and services and the effectiveness of your marketing strategies in reaching the right target audience.

Beyond Sales: Consideration of Expenses

When assessing profitability, it is essential to consider the profit per sale and various expenses that impact your bottom line.

This includes rent, payroll , and other overhead costs associated with running your business.

Achieving Financial Success

To achieve financial success, your monthly sales must cover your expenses and provide sufficient profit to sustain your business.

Additionally, it is important to ensure that your sales generate enough revenue to cover your monthly expenses and allow for salary payments, ensuring the long-term viability of your bottled water business.

For More, See Estimating Profitability and Revenue

Sample Financial Lists As a Starting Point

Sample Financial Lists for Your Bottled Water Business

Below are three sample financial lists designed to give you a general idea of the expenses and revenues you might expect when starting and running a bottled water production business in the USA.

Sample Startup Costs for a Bottled Water Business

Water Sourcing Rights: $5,000
Bottling Equipment: $50,000
Water Purification System: $20,000
Warehouse Lease (first month + deposit): $4,000
Business Licenses and Permits: $500
Insurance: $1,000
Branding and Marketing Materials: $2,000
Website Development: $2,000

Total Estimated Startup Costs: $84,500

Sample Monthly Expenses for a Bottled Water Business

Warehouse Lease: $2,000
Utilities (water, electricity): $800
Staff Salaries: $6,000
Insurance: $200
Marketing and Advertising: $1,000
Equipment Maintenance: $500
Miscellaneous Expenses: $500

Total Estimated Monthly Expenses: $11,000

Sample Sales and Profit Breakdown

Assuming a sales price of $1 per bottle ( premium branded ), selling 20,000 bottles per month:

Total Sales: $20,000
Less Monthly Expenses: $11,000

Estimated Monthly Profit: $9,000

Remember, these figures are fictional examples that provide a broad sense of the financial aspects of running a bottled water business.

Adjusting these costs and revenue projections can significantly affect the success of your business.

A small shift in profit per bottle sold can make a huge difference when dealing with high-volume sales.

Also, remember that many new businesses take time to become profitable as they build a customer base, establish a reputation, and optimize operations.

Your specific costs, expenses, and profits will vary based on numerous factors.

It’s essential to do thorough research and consider seeking professional advice when calculating your business’s startup costs, ongoing expenses, and potential revenues and profits.

5. Choosing The Right Business Location

The Significance of Location for a Bottled Water Business

Choosing the right location for your bottled water business can determine its success or failure.

Demand and Competition Considerations

Operating in an area without product demand will inevitably lead to failure even before your business takes off. Conversely, setting up in an area saturated with competition can make it challenging to gain market share.

Balancing Demand, Competition, and Affordability

Ideally, you should aim for a location that strikes a balance between having sufficient demand for your bottled water products and facing an acceptable level of competition.

Additionally, affordability is a crucial aspect to consider. While operating in a highly populated area can offer more exposure, you must ensure that the extra expenses associated with it do not outweigh the potential profitability.

Exploring Different Options

Consider operating your business from home, especially if your model is primarily online or does not require extensive personal customer interaction.

Starting from home can be a cost-effective option initially, and as your business expands, you can evaluate the need to transition to a commercial location.

Thorough Research and Careful Evaluation

Choosing the right location is critical to achieving success for your bottled water business.

Conduct thorough research, analyze the local market, and evaluate demand, competition, and affordability.

It is essential to approach this decision carefully and gather all the necessary information to make an informed choice.

For more about business locations, see Choosing The Best Location for Your Business.

6. Create Your Mission Statement

A mission statement is a valuable tool for identifying the core purpose of your bottled water business.

It serves as a guiding principle to keep you focused and reminds you of the main benefit you aim to provide to your customers and community.

Examples of Mission Statements for a Bottled Water Business:

“Our mission is to deliver pure, refreshing hydration to promote healthy lifestyles and contribute to environmental sustainability.”
“We are dedicated to providing premium-quality bottled water that nourishes and energizes our customers, while actively promoting responsible water usage and conservation.”
“At our bottled water company, our mission is to ensure access to safe and clean drinking water, enriching lives and supporting community wellness initiatives.”
“We strive to be the trusted provider of premium bottled water, offering exceptional purity, taste, and convenience while reducing our ecological footprint through sustainable practices.”
“Our mission is to hydrate and inspire, delivering the highest standard of purified bottled water while empowering individuals to embrace healthy hydration habits and make a positive impact on the environment.”

Note : These are fictional examples meant to illustrate the essence of mission statements for a bottled water business.

A real mission statement should be crafted to align with your business’s specific values and goals.

For more, see, How To Create a Mission Statement

7. Creating A Unique Selling Proposition (USP)

A Unique Selling Proposition (USP) plays a crucial role in identifying and creating a distinct offering that sets your bottled water business apart from competitors.

Examples of Unique Selling Propositions for a Bottled Water Business:

“Our bottled water stands out with its exceptional mineral composition, providing a truly refreshing and revitalizing experience.”
“We differentiate ourselves by offering sustainably sourced bottled water, contributing to environmental conservation and promoting a greener future.”
“Our infused bottled water line combines natural flavors with premium water, offering a unique and indulgent taste experience.”
“We pride ourselves on our innovative packaging design that enhances convenience and portability, making our bottled water the perfect companion for active lifestyles.”
“Our commitment to social impact sets us apart, as we donate a percentage of every bottle sold to provide clean drinking water to communities in need.”

Note: These are fictional examples intended to demonstrate the concept of a Unique Selling Proposition for a bottled water business.

Developing a USP that aligns with your specific business goals, target market, and competitive landscape is important.

8. Choose a Business Name

When selecting a name for your bottled water business, it’s crucial to aim for something captivating and fitting.

Opt for an easily pronounceable and memorable name, as it will likely remain with your company for the long term. Additionally, securing a matching domain name for your online presence is essential.

Conduct thorough research to ensure another business does not already register the desired name.

Here are 30 creative ideas to inspire your original bottled water business name:

AquaPure Springs
CrystalWave Refresh
PureFlow Oasis
AquaViva Delight
AquaGlow Hydration
Nature’s Elixir
AquaZen Wellness
AquaWave Harmony
CrystalClear Aqua
HydrateHaven
AquaEssence Revive
AquaQuench Oasis
RefreshStream
PureSource Springs
AquaBliss Nourish
AquaJade Oasis
VitalFlow Hydration
AquaCrisp Revitalize
AquaPure Delight
RefreshMist
AquaBloom Springs
AquaZest Rejuvenate
AquaPeak Revive
PureDrop Oasis
AquaLuxe Hydration
RefreshRipple
AquaVigor Wellness
AquaDream Springs

Remember, these are just ideas to spark your creativity and assist in developing an original business name for your bottled water venture.

Ensure the chosen name aligns with your brand identity and resonates with your target audience.

Conduct proper research and consider consulting professionals to ensure legal availability and trademark considerations for your business name.

For more, see the following articles:

How To Register a Business Name
Registering a Domain Name For Your Business

9. Register Your Company

Ensuring Your Bottled Water Business is Legal

Operating a legal business is essential for compliance, protection, and overall success. Here are key points to consider:

Seek Professional Guidance: Consulting with legal and tax professionals is crucial to ensure compliance with laws and regulations. They can also assist in determining the best business setup for tax benefits and liability protection.

Common Types of Registrations: When starting a bottled water business, you may need to consider various registrations, including:

Business Entity Registration: Registering your business entity (e.g., LLC, corporation) with the appropriate state authorities.
Employer Identification Number (EIN): Obtaining an EIN from the IRS for tax purposes and hiring employees.
State and Local Registrations: Registering for state and local permits, such as sales tax permits, to comply with specific requirements.

Permits and Licenses: As a bottled water business, you may need to obtain specific permits and licenses to ensure compliance and consumer safety. Some examples include:

Food Establishment Permit: Obtaining a permit to operate as a food establishment, as bottled water is considered a food product.
Bottled Water Plant License: Obtaining a license from relevant health and regulatory agencies to operate a bottled water production facility.
Water Source Permits: You may need permits for water extraction or usage depending on your water source.

Compliance with Regulations: Ensure adherence to industry-specific regulations such as the FDA’s Current Good Manufacturing Practices (cGMP) for bottled water production and labeling requirements.

Remember, laws and requirements may vary based on location, so consulting with professionals familiar with the bottled water industry and local regulations is crucial.

Complying with legal obligations helps protect your business, ensures consumer trust, and positions you for long-term success.

Registration:

How to Register Your Business
How To Register a DBA
How to Register a Trademark
How to Get a Business License

Business Structures:

How to Choose a Business Structure
Pros & Cons of a Sole Proprietorship
How To Form an LLC
How To Register a Business Partnership
How To Form a Corporation
How To Choose a Business Registration Service

10. Create Your Corporate Identity

Corporate Identity for a Bottled Water Business

Establishing Your Brand’s Visual Presence

A Corporate Identity (Corporate ID) plays a vital role in representing your bottled water business.

It encompasses elements that establish your brand’s visual presence, including your logo, business cards, website, business sign, stationery, and promotional items.

Consistency and Professionalism

Maintaining a consistent and professional design across these components is essential to leave a lasting impression on new and existing customers.

A strong and cohesive corporate identity conveys professionalism and helps build brand recognition and trust.

Logo Design: Capturing Your Brand Essence

As a key component of your corporate identity, your logo should capture the essence of your bottled water business.

It should reflect your brand’s values, evoke a sense of quality and purity, and resonate with your target audience.

Branded Materials: Showcasing Your Unique Qualities

From business cards to promotional items, each element of your corporate identity should showcase your brand’s unique qualities.

Whether it’s the design of your water bottle labels, the layout of your website, or the appearance of your business signage, consistency and attention to detail are crucial.

Impressing Customers: A Commitment to Excellence

A well-designed corporate identity demonstrates your commitment to excellence and professionalism. It helps create a positive and memorable impression on customers, fostering brand loyalty and encouraging repeat business.

Remember, a strong corporate identity is an investment in building your brand’s reputation and standing out in the competitive bottled water industry.

Seek professional design services or consult branding experts to ensure your corporate identity aligns with your brand values and effectively represents your business.

You can see our page for an overview of your logo , business cards , website , and business sign , or see A Complete Introduction to Corporate Identity Packages.

11. Writing a Business Plan

The Importance of a Business Plan for a Bottled Water Business

A business plan is a critical document for a bottled water business. It serves multiple purposes, such as acquiring funding and attracting investors.

Moreover, it acts as a roadmap to keep you on track during the startup phase and while your business is in full operation.

Crafting a Vision for Success

Writing a business plan requires time and effort as it involves creating a vision of what your bottled water business will be like once it’s operational.

Careful planning and thoughtful consideration of details are necessary to articulate your vision effectively.

Clarity and Guidance

Completing a well-crafted business plan is worthwhile because it clearly explains what is needed to start and operate your business successfully.

It serves as a guide to help you navigate the challenges and make informed decisions.

Choosing the Right Approach

When creating your business plan, you have various options available. You can start from scratch, enlist the services of a professional, utilize a template, or leverage business plan software.

Regardless of the chosen approach, active participation is essential to ensure your plan is distinctive and effectively communicates the nature of your bottled water business and management strategies.

Adapting and Optimizing

Recognizing that your business plan can evolve and be optimized as you gain experience and insights is important.

Periodically reviewing the document and making necessary adjustments to reflect changes in your business or operations is advisable.

Remember, a well-crafted and adaptable business plan is a valuable tool that can contribute to the success of your bottled water business.

A Fictitious Business Plan Example for a Bottled Water

PureSprings Bottled Water Business Plan

Executive Summary

PureSprings will offer high-quality, naturally sourced bottled water. Based in a region with abundant natural springs, we are uniquely positioned to cater to the demands of health-conscious consumers.

Company Description

PureSprings is a startup set to operate from a moderate-size bottling plant. We focus on sustainability, drawing water from local springs and packaging it in eco-friendly bottles.

Our target market comprises individuals and businesses seeking quality bottled water. With the continuous growth in the bottled water market, we anticipate steady demand for our products.

Organization and Management

PureSprings’ team will be spearheaded by the founder and CEO. Other team members will include a Production Manager, Marketing and Sales Manager, and an Accounting Manager.

Product Line and Services

Our product line includes natural spring water packaged in various sizes to meet consumer needs. Over time, we may introduce flavored water options.

Marketing and Sales Strategy

We’ll focus on marketing the health and sustainability aspects of our products. Our strategy will involve direct sales and partnerships with local and national retail stores.

Funding Request

We’re seeking an investment of $84,500, projected as the startup cost, to cover equipment purchase, water rights procurement, and initial marketing.

Financial Projections

In the first month, we anticipate selling 20,000 bottles, which gives us monthly revenue of $20,000. With estimated monthly expenses of around $11,000, we project a monthly profit of $9,000.

Exit Strategy

Once PureSprings achieves sustainable growth, we may explore franchising, expansion into new regions, or a potential acquisition by a larger beverage company.

Remember that this is a hypothetical business plan, and the figures are illustrative. Real-world business plans should be based on comprehensive market research and professional financial advice.

For information on creating your business plan, see, How to Write a Business Plan.

12. Banking Considerations

Consider selecting a local bank that specializes in serving bottled water business owners.

Opening a dedicated business account clearly separates your business expenses and personal spending.

This separation simplifies expense tracking, facilitates efficient bookkeeping, and provides documentation in the event of a tax audit.

Establishing a professional relationship with your banker is beneficial. They can offer valuable advice and financial services and expedite application processes.

Additionally, explore applying for a merchant account or similar setup to accept credit and debit card payments. This enables convenient payment options for your customers, enhancing their satisfaction and boosting sales.

Remember, choosing a bank that understands the specific needs of your bottled water business can streamline your financial operations and contribute to the overall success of your venture.

Research and compare banking options, seek recommendations from fellow business owners and consider the level of personalized service and relevant financial solutions when making your decision.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

13. Getting the Funds for Your Operation

Getting Funding for Your Bottled Water Business

If you need financial support to start and operate your bottled water business, there are various funding options available. Here are some key considerations and tips to help you navigate the process:

Explore Funding Options: Funding sources for your business may include traditional lenders, private loans, investors, or even selling any assets you may have. Research each option thoroughly to determine which aligns best with your needs and preferences.
Highlight your industry expertise and demonstrate a solid understanding of the bottled water market.
Emphasize the unique selling points of your business, such as quality, sustainability, or target market focus.
Provide a realistic and well-structured financial plan, including startup costs, revenue projections, and expected returns.
Business plan detailing your objectives, market analysis, and financial projections.
Personal and business financial statements, including tax returns and bank statements.
Legal documents such as licenses, permits, and registrations.
Collateral information, if applicable.

Secure funding for your bottled water business requires thorough preparation, a well-crafted business plan, and effective communication of your vision and potential.

Research your options, seek professional advice, and diligently compile the necessary documents to increase your chances of obtaining the funds to launch and grow your business successfully.

See, Getting a Small Business Loan for more.

14. Software Setup

Software Considerations for Your Bottled Water Business

Selecting the right software is crucial for efficient operations when setting up your bottled water business.

Here are some key points to consider:

1. Research Software Options

Thoroughly research the available software solutions. Implementing a program from scratch is often easier than switching to a new system after your data is already in another program.

2. Demo, Reviews, and Forums

Look for software providers that offer demos or trials. This allows you to evaluate the software’s features and user-friendliness.

Additionally, explore reviews and forums to gather insights from other user’s experiences with the software.

3. Expense Tracking and Financial Document Preparation

Consider software options that track expenses and prepare financial documents for tax filing.

Consulting with your bookkeeper or accountant can provide valuable guidance in choosing the right accounting software that aligns with your business needs.

Software Options to Consider for Your Bottled Water Business:

Inventory Management Software
Customer Relationship Management (CRM) Software
Route Planning and Delivery Management Software
Accounting Software
Quality Control and Compliance Software

Remember to evaluate each software option based on its suitability for your business requirements, scalability, user-friendliness, and compatibility with existing systems.

Consider seeking recommendations from industry peers and consulting software providers for customized solutions tailored to your bottled water business.

Software Considerations for a Bottled Water Business.

Check out Google’s latest search results for software packages for a bottled water business.

15. Get The Right Business Insurance

Insurance Considerations for Your Bottled Water Business

Incidents can occur unexpectedly, making having the right insurance coverage essential before any activities occur at your bottled water business. Here are key considerations to keep in mind:

1. Comprehensive Coverage

Consider insurance policies that provide comprehensive coverage to protect various aspects of your business, including:

Customer and Public Liability: Coverage for accidents or injuries to customers or the public on your premises.
Workers’ Compensation: Protection for employees in case of work-related injuries or illnesses.
Property Insurance: Safeguarding your physical assets, such as equipment, inventory, and facilities.
Product Liability: Coverage for any harm or damage caused by your bottled water products.

2. Professional Liability Insurance

Consider obtaining professional liability insurance, also known as errors and omissions insurance. This coverage protects you against potential lawsuits resulting from errors, negligence, or professional misconduct.

3. Home-based Business Insurance

If you plan to operate or manage your bottled water business from your home, inform your home insurance agent. Operating a business from home may impact your existing home insurance policy, and you may need additional coverage.

4. Consult an Insurance Broker

Working with a competent insurance broker is advisable to navigate the complexities of insurance and ensure you have sufficient coverage.

They can guide you in understanding your risks, selecting appropriate policies, and obtaining competitive rates.

Concerns When Seeking Insurance for a Bottled Water Business:

Adequate coverage for customer and public liability risks
Proper protection for employees through workers’ compensation
Protection for your physical assets, including equipment and inventory
Coverage for potential product liability claims
Understanding any implications on existing home insurance policies for home-based businesses

Remember, securing the right insurance coverage is vital to safeguarding your bottled water business.

Assess your specific risks, consult with insurance professionals, and review policies carefully to ensure comprehensive protection against potential losses.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for bottled water business insurance .

16. Select Suppliers

Selecting Suppliers for Your Bottled Water Business

Developing strong relationships with reliable suppliers is crucial for the success of your bottled water business. Consider the following factors when selecting suppliers:

1. Reliability and Trustworthiness

Choose suppliers who are dependable and trustworthy. They should consistently deliver high-quality products and meet agreed-upon deadlines to ensure smooth operations.

2. Competitive Pricing

Look for suppliers who offer competitive prices. This lets you pass on cost savings to your customers, making your bottled water products more attractive and increasing your profit margin.

3. Stock Availability

Ensure your suppliers can consistently provide the necessary stock to meet the demands of your business. Prompt and reliable deliveries are essential to avoid any production or inventory management disruptions.

4. Respectful and Mutually Beneficial Relationships

Treat your suppliers with respect and fairness. Building a mutually beneficial relationship involves ensuring they also benefit financially.

This can foster long-term partnerships and open communication, leading to improved collaboration and shared success.

Remember, selecting the right suppliers is crucial for maintaining a reliable and efficient supply chain for your bottled water business.

Research and evaluate potential suppliers based on their reputation, product quality, pricing, and ability to meet your requirements.

Strong supplier relationships can contribute to your business’s overall growth and sustainability.

For More See, How To Choose a Supplier.

17. Physical Setup

A bottled water business’s physical setup/layout is crucial for efficient operations. The layout should prioritize functionality and convenience, allowing for smooth workflow and easy access to equipment and storage areas.

Consider factors such as production space, storage capacity, labeling stations, quality control areas, and shipping logistics.

An optimized layout ensures streamlined processes, enhances productivity, and promotes a safe working environment.

Setting up appropriate signage is essential for a bottled water business. In addition to installing a prominent main business sign, it is important to place signs in relevant locations, including parking lots, exits, and special areas.

Well-designed signs play a crucial role in directing people, providing clear instructions, and enhancing the overall professionalism of your operation.

Effective signage helps customers navigate your premises easily and creates a positive impression of your business.

Office Setup:

Managing your bottled water business requires dedicated time in the office. An organized office setup is key to maximizing productivity.

Ensure your office has essential tools, including computers, printers, telephones, filing systems, and comfortable furniture.

Create an efficient workspace that allows for effective communication, easy access to important documents, and a comfortable environment for administrative tasks.

A well-equipped and organized office supports smooth business operations, facilitates efficient decision-making, and enables effective management of your bottled water business.

See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

18. Creating a Website

Having a website for your bottled water business offers numerous benefits. It is a powerful online presence, allowing customers to easily find and learn about your products and services.

A well-designed website showcases your brand, promotes credibility, and builds trust with potential customers. It provides a platform to showcase product information, pricing, and customer testimonials.

Additionally, a website enables online ordering and delivery options, expanding your customer reach.

It also facilitates effective communication, allowing customers to contact you directly, boosting customer engagement, and driving business growth in the digital landscape.

For more, see How to Build a Website for Your Business .

19. Create an External Support Team

Building an External Support Team for Your Bottled Water Business

An external support team of professionals is a valuable resource for your bottled water business. These experts provide valuable advice and services without being on your payroll.

While some professionals may already be part of your network, it’s important to recognize their significance and consider expanding your team.

Engaging Professionals for Specific Needs

Depending on your specific needs, you can engage professionals per project, contractual, or hourly. This allows you to access their expertise without the need for full-time employment.

Consider professionals such as an accountant, a lawyer, a financial advisor, a marketing specialist, technical advisors, and consultants.

Building Professional Relationships

Building professional relationships takes time and effort. Continually work on expanding your network and nurturing these connections.

As your business grows, you can benefit from the support and expertise of your trusted external team.

The Benefits of a Strong Support Team

A strong external support team ensures you have access to the necessary expertise and guidance when needed.

These professionals can assist with financial matters, legal compliance, marketing strategies, and technical challenges.

You can confidently make informed decisions and navigate challenges by leveraging your knowledge and skills.

Remember, developing a strong support team is an ongoing process. Regularly assess your business needs and seek professionals who align with your goals and values.

Collaborating with trusted experts contributes to the success and growth of your bottled water business.

For more, see, Building a Team of Professional Advisors for Your Business.

20. Hiring Employees

Hiring Employees for Your Bottled Water Business

At the initial stages of operating your bottled water business, you may consider handling all tasks yourself to avoid the expense of hiring employees.

This approach can be manageable and cost-effective, especially during the startup phase.

However, as your business grows, you may find it challenging to handle all aspects of management and operations alone.

Hiring employees can greatly improve productivity and allow you to focus on strategic decision-making.

List of Job Positions for a Growing Bottled Water Business:

The following are job positions or outsourced services you may want to consider as your bottled water business grows and becomes successful:

Production Staff: Responsible for bottling, labeling, and quality control processes.
Delivery Drivers: Ensuring timely and efficient delivery of bottled water to customers.
Sales Representatives: Building customer relationships, acquiring new accounts, and increasing sales.
Marketing Specialist: Developing and implementing marketing strategies to promote your brand and products.
Warehouse Manager: Overseeing inventory management, stock rotation, and efficient storage practices.
Customer Service Representative: Handling customer inquiries, resolving issues, and maintaining customer satisfaction.
Financial Manager or Bookkeeper: Managing financial records, accounts payable/receivable, and financial analysis.
Maintenance Technician: Ensuring proper functioning and maintenance of equipment and machinery.
Administrative Assistant: Providing administrative support, managing schedules, and organizing documentation.

Remember, as your bottled water business grows, the workload increases and specialized roles become necessary for smooth operations and continued success.

Evaluate your specific business needs and consider hiring employees or outsourcing services to support your expanding operations effectively.

For more, see, How and When to Hire a New Employee.

Points To Consider

A List of Equipment and Supplies to Consider for a Bottled Water Business:

Equipment for a Bottled Water Business

Water Source: You will need access to a water source, such as a well or natural spring.
Water Purification Systems: To ensure the water is safe for consumption, a purification system that may include filtration, UV sterilization, and reverse osmosis equipment is required.
Bottling Equipment: This includes washing, filling, capping, and labeling machines.
Water Testing Kits: To consistently ensure the water’s quality and safety.
Storage Tanks: For holding the purified water before it’s bottled.
Conveyor Belts: These help move bottles from one station to another during bottling.
Packaging Equipment: You’ll need equipment for packaging bottles into packs or crates for distribution.
Pallet Jacks: These are necessary for moving larger quantities of packaged water around your facility.
Delivery Vehicles: Depending on the size and reach of your business, you might need trucks or vans for distribution.
Cooling and Heating Systems: Depending on your location, you might need to control the temperature in your storage areas.
Office Equipment: Computers, printers, and other office equipment for managing orders, inventory, and other administrative tasks.
Waste Management Systems: Equipment for managing waste and maintaining cleanliness in the production area.

This list gives a general idea of the equipment required for a bottled water business, but your specific needs may vary depending on your business model and local regulations.

Always do your research and seek professional advice if necessary.

Marketing Considerations

Attracting Customers for Your Bottled Water Business

In the bottled water industry, customers are vital for the success of your business. Initially, it can be challenging to attract customers as your operation is new and awareness is limited.

Building a good reputation over time will make it easier to attract customers. With experience and a solid reputation, you can leverage your marketing efforts more effectively.

Marketing your bottled water business is an ongoing process that requires continuous investment. Consider it as a means to raise awareness and capture opportunities whenever they arise.

Investing in effective marketing techniques directly impacts your revenue generation. By implementing strategic marketing campaigns, you can reach your target audience, create brand awareness, and drive customer engagement.

Remember, effective marketing is essential to establish your presence in the market and attract customers to your bottled water business.

Continuously refine your marketing strategies, adapt to changing consumer needs, and seize opportunities to promote your products and services.

See our article How To Get Customers Through the Door

Building Business Partnerships for Your Bottled Water Business

Creating partnerships with other businesses can be a valuable strategy to attract new customers to your bottled water business.

Consider approaching the following businesses to explore collaboration opportunities:

Fitness Centers: Partner with gyms, health clubs, or fitness studios to provide bottled water for their members and offer special promotions or discounts to encourage referrals.
Offices and Workplaces: Establish relationships with local businesses and corporate offices to supply bottled water for employees, meetings, and events. In return, offer referral incentives and customized branding options.
Cafes and Restaurants: Collaborate with cafes, restaurants, and food establishments to offer bottled water as a beverage menu. Provide promotional materials and incentives to encourage them to refer customers to your business.
Event Planners: Forge connections with event planning companies and wedding planners to supply bottled water for their events. Consider offering customized branding options and referral bonuses for each successful event referral.
Health and Wellness Practitioners: Partner with healthcare professionals, nutritionists, and wellness practitioners who promote hydration and healthy lifestyles. Offer educational materials and referral incentives to support their clients’ hydration needs.

When approaching potential partners, emphasize the mutual benefits of collaboration. Consider offering referral fees, co-marketing opportunities, or exclusive promotions to incentivize referrals and strengthen the partnership.

Building strategic partnerships can extend your reach and attract new customers to your bottled water business.

Seek out businesses whose clientele aligns with your target market, and explore creative ways to collaborate and foster mutually beneficial relationships.

Assessing Your Skills for Running a Bottled Water Business

Evaluating your skill set is important to determine if you have the necessary abilities to run a successful bottled water business. Recognizing your strengths and weaknesses allows you to focus on areas that require improvement or consideration for delegation. Remember, if you lack an essential skill, you can learn it or hire someone with expertise in that area.

Essential Skills for a Bottled Water Business Owner:

Entrepreneurial Mindset: Demonstrating a proactive, innovative, and growth-oriented approach to business.
Industry Knowledge: Understanding the bottled water industry, trends, regulations, and consumer preferences.
Business Planning: Developing comprehensive business plans, setting goals, and creating strategies for growth.
Financial Management: Proficiently managing finances, budgeting, tracking expenses, and analyzing financial performance.
Marketing and Sales: Effectively promoting your brand, developing marketing strategies, and driving sales.
Operations Management: Overseeing production processes, inventory management, quality control, and logistics.
Customer Service: Providing excellent customer experiences, addressing inquiries, and resolving issues promptly.
Communication Skills: Articulating ideas clearly, negotiating contracts, and maintaining strong relationships with stakeholders.
Problem-Solving : Identifying challenges, evaluating options, and making informed decisions to overcome obstacles.
Adaptability: Embracing change, navigating market dynamics, and adjusting business strategies as needed.

Remember, as a bottled water business owner, continuously developing and honing these essential skills will contribute to your business’s success and growth.

Seek opportunities for learning and improvement while considering delegating tasks where necessary.

Expert Tips

Benefiting from Expert Tips to Enhance Your Skill Set

Exploring expert tips is invaluable for skill improvement, whether an expert or a novice.

You can discover more efficient approaches and gain fresh perspectives as an expert. As a novice, you can gather numerous tips to enhance your skills and expand your knowledge base.

See the latest search results for expert bottled water tips to gain tips and insights.

Valuable Resources for Your Bottled Water Business

In this section, you will find a compilation of resources that provide access to the latest and most relevant information in the bottled water industry.

These resources are beneficial during the startup phase and when your business is fully operational.

By utilizing these resources, you can gain a deeper understanding of the industry, stay updated on industry trends, and access valuable tips for enhancing your business practices.

They serve as a valuable knowledge base for your growth and success in the bottled water industry.

Trends and Statistics

Gaining Insights from Industry Trends and Statistics in the Bottled Water Business

Examining industry trends and statistics offers valuable insights for a bottled water business. It provides a deeper understanding of market dynamics, consumer preferences, and emerging opportunities.

You can make informed decisions, adapt strategies, and position your business for success in a dynamic marketplace by staying informed.

See the latest search results for trends and statistics related to the bottled water industry.

Bottled Water Associations

Use a professional American writing style. Use simple words. Add Industry Keywords if Appropriate.

Write a neutral 40-word overview of

Trade associations offer numerous advantages, including staying informed about industry news and accessing networking opportunities. These benefits are particularly evident when associations organize events.

See the search results related to bottled water associations.

Top Bottled Water Business

Drawing Inspiration from Established Bottled Water Businesses

Examining established bottled water businesses can spark ideas and insights to identify untapped opportunities within the industry.

It allows you to uncover unique offerings or identify areas for improvement in your business that may have been overlooked. Learning from successful businesses helps shape your own strategies and differentiate your brand.

See the latest search results for the top bottled water businesses.

The Future of the Bottled Water Industry

Unveiling Future Opportunities: Researching the Future of the Bottled Water Industry

Researching the future of the bottled water industry offers significant benefits for aspiring business owners.

It allows you to gain insights into emerging trends, consumer demands, and technological advancements, enabling you to make informed decisions and position your business for long-term success.

See the search results for the future of the bottled water industry.

Gaining Price Insights: Researching Industry Prices for Starting a Bottled Water Business

Researching industry prices provides valuable benefits when launching a bottled water business.

It allows you to understand market pricing trends, determine competitive pricing strategies, and ensure your pricing is competitive while maintaining profitability.

This knowledge helps you make informed decisions and set appropriate product pricing.

See the latest bottled water prices.

Bottled Water Businesses for Sale

Considering the Purchase of an Established Bottled Water Business

Exploring the option of buying an existing bottled water business offers both advantages and disadvantages.

The benefits of acquiring an established business include:

Immediate Revenue: Start earning revenue from the day you take over the business.
Skip the Startup Phase: Bypass the challenges and uncertainties of starting from scratch.
Proven Success: The business has a track record of success, and you know it works.
Financial Insights: Access information on revenue, profit, and expenses before deciding.
Existing Customer Base: Benefit from an established customer base, saving time and effort in acquiring new customers.
Established Reputation: The business has already built a reputation in the market, which can be advantageous.

However, there are also potential disadvantages to consider:

Higher Cost: Purchasing an established business often involves paying a premium due to its goodwill and existing customer base.
Customer Retention : If you intend to make significant changes to the business, there is a risk of losing customers accustomed to the previous operations.
Inherited Reputation: When acquiring a business, you also inherit its existing reputation, which may include both positive and negative aspects.

Even if you don’t find an exact match for a bottled water business for sale, it’s worth exploring similar opportunities within the industry.

Researching available options can provide valuable insights and inform your decision-making process.

Businesses for sale: See the latest results for a bottled water business and others related to this business model.

Franchise Opportunities Related to a Bottled Water

Considering the Purchase of a Bottled Water Franchise

Exploring the option of buying a bottled water franchise offers both advantages and disadvantages. It’s important to carefully evaluate these factors before starting a business.

Additionally, while exploring franchise opportunities, you may discover related options in the bottled water industry that you hadn’t considered.

Proven Business Model: Follow the established plan provided by the corporate office, leveraging their expertise and experience.
Established Reputation and Marketing: Benefit from the franchise’s existing reputation and marketing efforts, giving your business a head start.
Comprehensive Knowledge: Gain thorough insights into every aspect of the business before getting involved.
Corporate Support: Receive ongoing support and guidance from the corporate office to navigate business challenges.
Cost: Purchasing a franchise can involve significant upfront expenses, including fees and other financial obligations.
Limited Autonomy: Major changes require approval from the corporate office, limiting your freedom to make independent decisions.
Approved Products and Services: Operate strictly within the framework of approved products and services defined by the franchise agreement.
Operational Restrictions: Adhere to the operational guidelines and restrictions outlined in the franchise agreement.
Ongoing Franchise Fees: Pay regular franchise fees for your ongoing financial obligations.

Even if you don’t find an exact match for a bottled water business franchise, you can explore franchise opportunities within the same industry using the provided link.

See the latest search results for franchise opportunities related to this industry.

Knowledge Is Power if You Use It!

Harnessing the Power of Knowledge for Your Bottled Water Business

Acquiring knowledge is a powerful tool when effectively utilized in your bottled water business. The internet offers a wealth of information about your industry.

Following the links in the following sections, you can access valuable resources to support your research, guide you through the startup phase, and enhance your business operations.

Stay informed, leverage the available information, and empower your journey to success in the bottled water industry.

A Day in the Life

Insights into the Day-to-Day Life of a Bottled Water Business Owner

Gain valuable tips and insights from industry professionals to understand what to expect in a typical day as a bottled water business owner. This resource provides an overview of the daily responsibilities and operations, offering practical guidance for success in the industry.

See the search results related to a day in the life of bottled water business owners.

Bottled Water Business Owners Interviews

Gaining Valuable Insights from Interviews with Bottled Water Industry Business Owners

Take the time to explore this section, where interviews with experienced business owners in the bottled water industry provide essential information and insights. Look into different perspectives to gain a deeper understanding of the industry and valuable insights into what to expect.

See the search results related to interviews of bottled water business owners.

Bottled Water Publications

Staying Informed with Publications in the Bottled Water Industry

Publications serve as a valuable resource to stay updated with the latest information about the bottled water business.

Explore these publications to access industry news, trends, insights, and best practices, ensuring you stay informed and ahead of the curve.

See the search results for Bottled Water publications.

Bottled Water Forums

Engaging in Bottled Water Forums for Industry Insights

Participating in bottled water forums allows one to join relevant discussions and connect with industry peers.

By actively engaging in these forums, you can foster relationships, gain customer perspectives, and gather valuable insights contributing to your business understanding and growth.

See the latest search results related to Bottled Water forums.

Enhancing Skills and Industry Knowledge through Bottled Water Production Courses

Enroll in courses related to bottled water production to enhance your skillset and stay updated with industry advancements.

These courses offer valuable learning opportunities to improve your capabilities and remain knowledgeable and current in the industry.

See the latest courses related to bottled water production and our management articles to provide insights and tips on managing Your business.

Bottled Water Blogs

Gaining Insights and Industry Updates through Bottled Water Blogs

Subscribing to bottled water blogs offers a valuable source of ideas and industry updates.

By subscribing to multiple blogs and curating the ones that provide value, you create a collection of resources that deliver a constant flow of relevant information to support your business endeavors.

Look at the latest search results for bottled water production blogs to follow.

Staying Current with Bottled Water Industry News

Stay updated with the latest bottled water industry events by following industry news.

Set up alerts to receive notifications whenever new developments are covered by the media, ensuring you stay informed and well-informed.

Bottled Water News

Gaining Valuable Tips and Insights from Bottled Water Industry Videos

Explore videos about the bottled water industry to access helpful tips and insights.

Additionally, take advantage of related videos suggested by YouTube, as they often cover topics you may not have previously considered, expanding your knowledge and understanding.

See the links to YouTube Videos Below.

Videos related to starting a bottled water business can be found here.

Starting a Water Refilling Station Business

For More Business Ideas, See our Collection of Business Ideas.

Privacy Overview

Sachet Water and Bottled Water Business Plan with 3 Years Financial Analysis

Looking for a solid sachet water and bottled water business plan for your new or existing enterprise?

Download this sachet water and bottled water business plan, which you can download to present to NIRSAL, BOI, BOA, and other investors.

Starting a bottled/sachet water company is a very viable business in Nigeria. Startup Capital runs between 2 Million Naira for a small size company or above 10 Million Naira for an enterprise scaling from its smaller size and looking to serve a larger market

Writing a professional business plan can get strenuous and technical. It requires a lot of research and esoteric knowledge. Don’t worry, We have done the heavy lifting for you.

HOW A SACHET WATER/BOTTLE WATER STANDARD BUSINESS PLAN LOOKS LIKE

1) Table of Contents

2) Executive Summary for Bottled Water Business

3) Company Overview : this includes

About the company
Mission Statement
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 for Pure Water and Bottled Water Market

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) Management

Company Organization
Management Team
Administrative Expenses

9) Summary of Financials

Financial Assumptions
Financial Forecasts
Projected Cash Flow
Income statement for the sachet and bottled water company for 3 years
Balance Sheet
Ratio Analysis [3 years]

HOW PROFITABLE IS BOTTLED WATER BUSINESS IN NIGERIA

In Nigeria, where a growing population and increasing awareness of health and wellness have led to a surge in demand for safe drinking water, the bottled water business presents a promising opportunity. However, like any venture, success in this industry requires a nuanced understanding of various factors that can influence profitability.

Rising Demand for Clean Water: Nigeria, like many countries, has witnessed a heightened awareness of the importance of clean and safe drinking water. With concerns about waterborne diseases and a growing urban population, the demand for convenient, packaged water has surged. This increasing demand provides a fertile ground for entrepreneurs entering the bottled water business.
Market Dynamics and Competition: The bottled water market in Nigeria is dynamic and competitive. Numerous brands vie for consumer attention and loyalty. The level of competition can impact pricing strategies, but it also creates opportunities for innovative branding, unique packaging, and differentiating product offerings.
Quality Assurance and Regulatory Compliance: The cornerstone of success in the bottled water business is maintaining high-quality standards. Adherence to local and international quality and safety regulations is non-negotiable. Investments in advanced purification processes, regular quality testing, and compliance with regulatory standards not only ensure consumer trust but also contribute to long-term profitability.
Logistics and Distribution: Efficient logistics and distribution are critical in a country as vast as Nigeria. Establishing a reliable distribution network that ensures the timely and cost-effective delivery of bottled water from production facilities to retail outlets is essential. Effective supply chain management can positively impact profit margins.
Production Costs and Economies of Scale: Managing production costs is pivotal to profitability. Costs associated with water sourcing, purification, bottling, and packaging must be optimized. Economies of scale can be achieved through increased production volume, leading to lower unit costs and enhanced competitiveness.
Marketing and Branding Strategies: Building a strong brand presence is vital in a market where consumer choices are influenced by trust and familiarity. Effective marketing strategies that highlight the purity, source, and health benefits of the bottled water can set a brand apart. Additionally, understanding and catering to local preferences can be a key driver of success.
Consumer Education and Health Trends: Educating consumers about the benefits of consuming bottled water and tapping into health and wellness trends can create a positive brand image. With a growing middle class in Nigeria, consumers are increasingly willing to spend on products that align with their health-conscious lifestyles.
Sustainability Practices: Embracing sustainability practices, including eco-friendly packaging and responsible water sourcing, can resonate well with environmentally conscious consumers. It not only addresses social responsibility but also positions the brand favorably in the eyes of an environmentally aware market.

Conclusion:

The bottled water business in Nigeria holds significant promise, driven by a surging demand for safe and convenient drinking water. However, navigating the competitive landscape requires careful consideration of various factors, including quality assurance, effective distribution, and strategic branding. Entrepreneurs who invest in understanding the market dynamics, prioritize quality, and adapt to changing consumer preferences stand to capitalize on the profitability potential of the bottled water industry in Nigeria.

BUSINESS PLAN AND FEASIBILITY STUDY SAMPLE FOR BOTTLED WATER

1.0. Executive Summary

The demand for pure water, both sachet and bottled water are on the rise daily. The increase in population is greatly influencing the demand and consumption of pure and bottled water. Facts have stated that the increase in population alongside the poor management of water resources has made access to clean water very difficult. This has given rise to private investors in water production in Nigeria.

For most events, corporate and personal, table water takes the lead. Though the consumption of sachet water is lower compared to table water, it still takes the lead on water sold in Nigeria by 75%.

In-depth research has been made on the water business in Nigeria and it is on this research that this business plan is built.

2.0. About the Company

Levi Water produces and supplies sachet and bottled water in Nigeria. Managed by the Ogbonna’s family, the company has fifteen man staff strength – this cuts across the production, packaging, distribution, delivery, staking and accounting of the water produced.

3.0. Vision Statement

To be a renowned and trusted water producing company in Nigeria, especially in Abia State

4.0. Mission Statement

To produce clean and revitalizing water in a very hygienic environment with the best practices

5.0. Ownership of Enterprise

Levi Water is solely owned and managed by the Ogbonna’s family

6.0. Legal Status

Levi Water is a registered business with the Nigerian government and is working on getting NAFDAC approval as soon as possible.

7.0. Location and Facility

Levi Water is located in Abia State.

8.0. Production/Service

Levi Water produces sachet and table water while also engaging in wholesale and retail sales of the water produced.

Business Strategy

To be the first point of call for drinking water needs for the public
To provide delivery services with little or no charge. This depends on the distance to be covered during delivery
To have a mobile shop that would offer our product to an individual who due to distance or other activities cannot come to make purchases in shops

Key Success Factors

Primarily focused on individuals who need water eg students, working class, and families
Our decision-making, diligence, promptness, and trustworthiness speaks volume for the business
We are proactive in meeting our client needs and keeping them satisfied. This stands out

How To Download The Sachet Water and Bottled Water Business Plan Template

Above is a part of the sachet water and bottled water business plan template in Nigeria. If you want the complete business plan with the full financial plan, calculations and more, follow the procedures to download it.

Pay the sum of N8000 ( Eight thousand naira only) to the account detail below: Bank: GTBank Name: Oyewole Abidemi (I am putting my name and not our company account so you know we are real people and you can trust us) Ac/No: 0238933625 Type: Saving

Thereafter, send us your email address through text message to +234 701 754 2853 . The text must contain the title of the business plan you want and also your email address. Immediately after the confirmation of your payment, we will send the sachet water and bottled water business plan in Nigeria to your email address where you can easily download it.

Dr. Abi Demi is a skilled technical writer and author with specialties in the martech and fintech space. Featured on Tekedia, Coin Review, Business Insider, Fintechna, Cryptocoin.news, Date 360 and several other sterling online publications, Demi is an astute technical writer that specializes in finance, marketing and technology - with over 500 published pieces across the internet ecosystem. Contact Abi Demi - [email protected]

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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?

Form an LLC in your state!

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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Water Purification Business Plan

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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.

Water purification business plan, executive summary chart image

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.

Water purification business plan, company summary chart image

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.

Water purification business plan, market analysis summary chart image

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.

Water purification business plan, strategy and implementation summary chart image

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.

Water purification business plan, financial plan chart image

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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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 anion: $7.25, or $72.50 for 10 cu ft. Total bulk cation $6.14, or $61.40 for 10 cu ft.
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1. Executive Summary

Introduce your Business:

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Market size and growth potential:

Competitive Analysis:

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