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Bottled Water Business Plan

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

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

Free Business Plan Template

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

• Fill in the blanks – Outline
• Financial Tables

How to Write A Bottled Water Business Plan?

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

1. Executive Summary

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

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

Introduce your Business:

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

Market Opportunity:

Products and services:.

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

Marketing & Sales Strategies:

Financial highlights:, call to action:.

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

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2. Business Overview

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

Business Description:

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

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

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

Mission Statement:

Business history:.

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

Future Goals

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

3. Market Analysis

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

Target market:

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

Market size and growth potential:

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

Competitive Analysis:

Market trends:.

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

Regulatory Environment:

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

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

4. Products And Services

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

Describe your products & services:

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

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

Describe the health benefits

Quality measures, additional services.

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

5. Sales And Marketing Strategies

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

Unique Selling Proposition (USP):

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

Pricing Strategy:

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

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

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

6. Operations Plan

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

Staffing & Training:

Operational process:, technologies & equipment:.

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

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

7. Management Team

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

Founders/CEO:

Key managers:.

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

Organizational structure:

Compensation plan:, advisors/consultants:.

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

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

8. Financial Plan

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

Profit & loss statement:

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

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

Financing Needs:

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

9. Appendix

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

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

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

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

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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Bottled Water Business Plan Template

Written by Dave Lavinsky

Bottled Water Business Plan

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

Download our Ultimate Business Plan Template here >

What is a Bottled Water Business Plan?

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

Why You Need a Business Plan for a Bottled Water Facility

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

Sources of Funding for Bottled Water

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

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.

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Competitive Analysis

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

Direct competitors are other bottled water production companies. 

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

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

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

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

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

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

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

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

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

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

Bottled Water Business Plan FAQs

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

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

Where Can I Download a Bottled Water Business Plan PDF?

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

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

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

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

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Other Helpful Business Plan Articles & Templates

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

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Bottled Water Business

Back to All Business Ideas

How to Start a Bottled Water Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on April 13, 2022 Updated on May 7, 2024

Investment range

$6,550 - $15,100

Revenue potential

$130,000 - $416,000 p.a.

Time to build

1 – 3 months

Profit potential

$46,000 - $83,000 p.a.

Industry trend

You drink it every day, but you probably don’t think of water as a business. Well, maybe you should. Bottled water is a massive and fast-growing industry. Sugar-wary consumers increasingly view bottled water as a healthier choice than soft drinks, and safer than tap water. You could start your own bottled water company and tap into this booming market. Starting your own mineral water plant would cost a small fortune, so the smart move is to find a water producer that offers white labeling, which means they’ll let you put your label on their water.  

But before you start searching for water, you need to learn the ins and outs of starting a business. Fortunately, this step-by-step guide has all the entrepreneurial insights you need to start building bottled water success. 

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a bottled water business has pros and cons to consider before deciding if it’s right for you.

• Good money — Profit margins on bottled water are fairly high
• Flexibility — Run your business from home as a white label company
• Hot market — Demand for bottled water is strong
• Saturated market — Competition is fierce in the bottled water industry
• Partner needed — Finding a white label water company can be challenging

Bottled Water Industry Trends

Industry size and growth.

• Industry size and past growth — The global bottled water industry was worth $303 billion in 2022 and it’s been steadily growing.(( https://www.grandviewresearch.com/industry-analysis/bottled-water-market )) The US market share is worth $9.3 billion.(( https://www.ibisworld.com/united-states/market-research-reports/bottled-water-production-industry/ ))
• Growth forecast — The global bottled water industry is projected to grow at a CAGR of 5.4% annually by 2032 to reach more than half a trillion dollars.(( https://www.statista.com/outlook/cmo/non-alcoholic-drinks/bottled-water/worldwide ))
• Number of businesses — There are 476 bottled water production businesses in the US.(( https://www.ibisworld.com/united-states/market-research-reports/bottled-water-production-industry/ )) 
• Number of people employed — The US bottled water production industry employs 15,708 people.(( https://www.ibisworld.com/united-states/market-research-reports/bottled-water-production-industry/ )) 

Trends and Challenges

• Alkaline waters, which have a higher pH level than regular bottled water, are increasingly popular because they are thought to improve energy. The same is true for electrolyte-enhanced water.
• New to the market is hydrogen water, made with more hydrogen and thought to increase energy and endurance as well as to provide antioxidants. Though it’s new, it’s increasing in popularity quickly despite its higher price. 
• Plastic water bottles are piling up in landfills, leading to environmental concerns and increased governmental regulation. This has spurred manufacturers to look for alternative bottling. Many manufacturers are using recycled plastic, but some are moving to cans and paper cartons as better alternatives.
• Plastic bottle production in the United States requires about 17.6 million barrels of oil annually, which is of increasing concern due to the current energy situation.

Consumer Spending

• Average consumer spend — The average person in the US consumes about 46.5 gallons of bottled water per year.(( https://www.statista.com/statistics/183377/per-capita-consumption-of-bottled-water-in-the-us-since-1999/ )) 
• Potential customer base — A recent survey shows that 49 million Americans consume bottled water.(( https://tappwater.co/blogs/blog/how-many-people-consume-bottled-water-globally ))
• Average prices — Consumers tend to buy bottled water in bulk. The average price for a 24-bottle case is $6.99, while specialty waters sell for up to $15 or more. They are commanding a higher price due to the way they are presenting their water to consumers, creating the impression of more health benefits.(( https://bottledwater.org/bottled-water-prices-advertising/ ))

How Much Does It Cost to Start a Bottled Water Business?

Startup costs for a bottled water business range from $6,500 to $15,000. Your costs will depend on the minimum your manufacturer will allow you to order since the bulk of your startup costs are for your initial inventory. 

You could start your search for a manufacturer on this online platform .  

How Much Can You Earn From a Bottled Water Business?

The average price for a private-label specialty case of bottled water is about $10. You can either sell your water online on a site like Amazon, or you can try to find local stores that will stock your water. Your profit margin after manufacturing and packaging costs will be around 35%. 

In your first year or two, you might sell 250 cases a week, bringing in $130,000 in annual revenue. This would mean nearly $46,000 in profit, assuming that 35% margin. As your brand gains recognition and you get your products into grocery stores, sales could climb to 800 cases per week. At this stage, you’d rent out a distribution center and hire staff, reducing your margin to about 20%. With an annual revenue of $416,000, you’d still have a nice profit of more than $83,000.

What Barriers to Entry Are There?

There are a few barriers to entry for a bottled water business. Your biggest challenges will be:

• Finding a manufacturing partner
• Competition from established firms

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Step 2: hone your idea.

Now that you know what’s involved in starting a bottled water business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an Opportunity

Research bottled water businesses in your area to examine their products, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a spring water or sachet water company. Sachet water is pre-filtered water heat-sealed in plastic bags instead of bottles.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as mineral water or purified water.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Choose Your Product Line and Define the Product Range

Bottled water companies are legally allowed to offer:

• Mineral water from an underground source with naturally occurring trace minerals
• Spring water
• Well water, artesian well water 
• Purified water, or treated tap water 

You can choose any of those. Your key will be your labeling and how you brand your product. You could decide to offer vitamin or flavored water, but that would move you out of the bottled water category and into the soft drink category and would make production much more difficult. 

How Much Should You Charge for Bottled Water?

If you present your water as a high-end specialty water, you can charge about $10 per case. The key to this is in packaging and branding that creates the impression of a superior product. Using phrases like “natural spring water” and giving your bottles a confident, appealing design goes a long way. If you go to Amazon and search for bottled water, you’ll see many ways in which water is presented as high-end and commands prices as high as $15 or even $20. 

You should aim for a profit margin of about 35% after manufacturing and packaging costs.

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

Your target market will be broad, but it may tend to be a younger crowd. You can find them on sites like TikTok and Instagram, but you could also advertise on Facebook, LinkedIn, and beyond.  

Where? Choose a Location

When selecting a location for a bottled water company, the approach varies depending on whether you have a partner manufacturer or not:

• Water source — Prioritize a location near a high-quality, sustainable water source like a spring or well.
• Regulatory compliance — Ensure compliance with water extraction and bottling regulations.
• Market proximity — Choose a location close to your target market to reduce transportation costs.
• Infrastructure and accessibility — Look for adequate infrastructure for bottling and packaging, and good transportation links.
• Water source — The same priority for a sustainable, high-quality water source applies.
• Manufacturing facilities — You’ll need space for your own bottling and packaging facilities.
• Labor availability — Ensure access to a skilled workforce for various operational roles.
• Environmental and community impact — Assess and minimize environmental impact and build positive community relations.

In both scenarios, consider the local climate, the potential for natural disasters, and the legal and political environment. Future expansion possibilities and overall costs are also important factors.

Step 3: Brainstorm a Bottled Water Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “mineral water” or “spring water,” boosts SEO
• Name should allow for expansion, for example, “AquaSource Bottling” over “AquaSource Sparkling Water” or “Coconut Bay Water”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 280 unique bottled water brand name ideas here . If you want your business name to include specific keywords, you can also use our bottled water name generator. Just type in a few keywords, hit Generate, and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. However, once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Bottled Water Business Plan

Here are the key components of a business plan:

• Executive summary — A concise overview of your bottled water business, highlighting key points and objectives.
• Business overview — Detailed information about the bottled water industry, your company’s mission, and its structure
• Product and services — Explanation of the types of bottled water you offer, including any unique features or benefits
• Market analysis — Examination of the target market for bottled water, considering demographics, trends, and potential growth
• Competitive analysis — Assessment of other bottled water companies in the market, identifying strengths, weaknesses, opportunities, and threats
• Sales and marketing — Strategies for promoting and selling your bottled water, including distribution channels and advertising plans
• Management team — Introduction of key individuals involved in running the business, emphasizing their qualifications and roles
• Operations plan — Details on how your bottled water business will operate, covering production, quality control, and distribution
• Financial plan — Projections of your business’s financial performance, including income statements, balance sheets, and cash flow forecasts
• Appendix — Supplementary materials such as supporting documents, charts, and additional information to enhance the business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to bottled water businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your bottled water business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. An S Corp can be either a corporation or an LLC , which just needs to elect this structure for tax status. In an S Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online, or by mail/fax. Visit the IRS website to learn more. Keep in mind that, if you’ve chosen to be a sole proprietorship, you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans — This is the most common method but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a bottled water business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Bottled Water Business Licenses and Permits

Starting a bottled water business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your bottled water business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats — from marketing to sales to accounting — which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as LS Retail , Vend , or Retail Pro , to manage purchasing, inventory, and invoicing.

• Popular web-based accounting programs for smaller businesses include Quickbooks , FreshBooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, people are unlikely to find your website unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Website & SEO — Optimize your website and online listings to increase visibility in search results, focusing on bottled water and hydration solutions.
• Engaging social media campaigns — Highlight the purity and source of your water on platforms like Instagram and Twitter to engage a health-conscious audience.
• Interactive website features — Develop an engaging website that educates visitors on the health benefits and sustainability efforts of your brand.
• Health and wellness blogging — Share content on the importance of hydration, water purity, and eco-friendly practices.
• Customer testimonials — Utilize positive feedback to build trust and encourage trial of your water.
• Hydration stations at events — Set up branded stations at local sports and wellness events to promote your product.
• Partnerships with fitness centers — Collaborate with gyms and yoga studios to supply your bottled water, reinforcing a healthy lifestyle image.
• Rewards program — Implement a program that rewards repeat purchases with discounts or other incentives.
• Targeted advertising campaigns — Reach health-conscious consumers and sustainability advocates through targeted digital ads.
• Influencer marketing — Work with health and wellness influencers to amplify the benefits of your water.
• Striking branding and packaging — Design distinctive labels and packaging that reflect the quality and values of your brand.
• Email marketing — Maintain engagement with your customer base through newsletters that provide hydration tips, company updates, and special promotions.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Today, customers are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your bottled water business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your bottled water business could be: 

• Refreshing natural spring water to live your healthiest life 
• Fortifying mineral water so you’re always at your best 
• Hydrogen water to give you an energy boost

You may not like to network or use personal connections for business gain but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a bottled water business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in bottled water for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in bottled water. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a bottled water business include:

• Distribution center workers — preparing bottled water for shipping
• General manager — ordering, accounting
• Marketing lead — SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Bottled Water Business — Start Making Money!

Ready to get in on the action? The bottled water industry is set to double, which means now is the perfect time to create your own bottled water brand. You can start for a relatively low investment if you can find a white-label manufacturer and make a nice return on that investment. You just have to come up with an identity for your water and design your packaging well, and you can bring in some good money.

Now that you understand the business, it’s time to hit the ground running and launch your bottled water business!

• Bottled Water Business FAQs

Yes, bottled water has good profit margins. Your key will be to brand your water in a way that is appealing to consumers. You also need to find a reliable manufacturer.

You can find a water company that will produce your water and packaging and put your own brand and label on it.

The United States is the country that buys the most bottled water in the world.

To increase the sales of your bottled water, focus on marketing and branding by highlighting the quality and unique features of your product. Target your advertising efforts to reach your desired market through various channels. Consider product placements and partnerships to increase visibility and availability. 

To distribute your bottled water effectively, consider selling through retail stores, online platforms, beverage distributors, direct sales at events and via subscriptions, and B2B partnerships with establishments like restaurants and gyms. This strategy broadens your market reach and simplifies logistics.

This business model is informative and beneficial for entrepreneurs. Many thanks for such a great help.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Bottled Water Business Name
• Create a Bottled Water Business Plan
• Register Your Business
• Register for Taxes
• Fund Your Business
• Apply for Bottled Water Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Bottled Water Business — Start Making Money!

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How to Start a Bottled Water Business

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

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

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

Start a bottled water business by following these 10 steps:

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

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

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

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

What will you name your business?

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

How much can you charge customers?

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

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

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

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

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

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

Want some help naming your bottled water business?

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

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

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

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

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

What are the ongoing expenses for a bottled water business?

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

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

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

Who is the target market?

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

How does a bottled water business make money?

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

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

How much profit can a bottled water business make?

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

How can you make your business more profitable?

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

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

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

STEP 2: Form a legal entity

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

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

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

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

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

STEP 3: Register for taxes

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

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

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

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

STEP 4: Open a business bank account & credit card

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

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

Open a business bank account

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

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

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

Get a business credit card

Getting a business credit card helps you:

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

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

STEP 5: Set up business accounting

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

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

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

Federal Business Licensing Requirements

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

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

State & Local Business Licensing Requirements

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

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

STEP 7: Get business insurance

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

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

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

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

STEP 8: Define your brand

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

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

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

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

How to promote & market a bottled water business

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

How to keep customers coming back

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

STEP 9: Create your business website

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

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

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

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

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

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

STEP 10: Set up your business phone system

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

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

Recommended Business Phone Service: Phone.com

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

Is this Business Right For You?

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

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

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

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

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

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

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

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

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

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

What is the growth potential for a bottled water business?

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

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

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

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

TRUiC's YouTube Channel

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

Take the Next Step

Find a business mentor.

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

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

Learn from other business owners

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

Resources to Help Women in Business

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

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

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

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

How and when to build a team

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

Useful Links

Industry opportunities.

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

Real World Examples

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

Further Reading

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

Have a Question? Leave a Comment!

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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Bottled Water Distribution Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Food Processing Industry » Bottled Water Production

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

Okay, so we have considered all the requirements for starting a water distribution business. We also took it further by analyzing and drafting a sample water distribution business marketing plan template backed up by actionable guerrilla marketing ideas for water distribution businesses. So let’s proceed to the business planning section.

A bottled water distribution business is one business that can cause an innovative entrepreneur to become very wealthy as it is one sure business that is very lucrative.

The demand for bottled water by consumers in the united states of America rose from the distrust of tap water due to the belief that chemical pollution even though in minute quantities from industrial and agricultural sources, has found its way to the water table.

Starting this kind of business will require the entrepreneur to decide if he wants to run the business like a franchise or as a fresh start-up and then have either one location or a series of locations.

Starting this kind of business would require the services of someone who is an expert and has adequate knowledge as regards the business, its industry and the environment you intend operating from. Such a person is usually a business consultant, who looks through your business concept and decides if the bottled water distribution business you intend going into is worth the efforts you intend putting into it – financially and otherwise.

Another important aspect that would need to be looked into is having a comprehensive business plan. The bottled water distribution business is one that is very competitive and as such would require great planning especially if you do not want the business to fail even before it has started.

While it might not however be easy to write a business plan, there are several options available such as hiring a business plan writer to write out a comprehensive business plan for you or going online to get free bottled water business plan templates to use as an aid in writing yours. Below is a sample bottled water distribution business plan template for you.

A Sample Bottled Water Distribution Business Plan Template

1. industry overview.

Consumption of bottled water has risen tremendously globally over the last decade and is bound to continue to rise according to research.

Bottled water have been known to be packaged in plastic or glass bottles and further categorization shows that bottled water that are sold are either regarded as still or sparkling. The sales volume of bottled water globally in liters is 181,608ml, with the value for U.S products standing at $6.61 billion.

The bottled water industry is growing at a very fast pace of between 8 and 10 percent annually, twice faster than that of other beverages.

As at 2003, the bottled water industry in the United States of America became the second largest commercial beverage in volume, surprisingly surpassing milk, coffee and beer. Bottled water is closely following behind carbonated soft drinks.

Even though there has been a rise in the consumption of bottled water globally, the slowest growth has been in Europe, while other continents like Asia and South America have seen a faster growth.

North America however stands ahead of the pack in bottled water consumption, with more Americans taking more bottled water than they would take milk or beer as 9 billion gallons of water was consumed as at 2008, making it an average of 30 gallons of water per person.

In certain parts of the United States of America, such as in California, a gallon of tap water costs 560 times more than a gallon of bottled water.

This is part of the strategy for bottled water manufacturers, who through advertising made bottled water more preferable for customers, thereby increasing its demand. This is however ironic as 48% of the bottled water manufactured in 2009 according to a report by Food and Water Watch, came from tap water.

The reason why there has been a surge for bottled water by consumers is due to the fact that most fear tap water even though on a state and federal level, tap water has been deemed 90 percent safe, a level higher than that accorded bottled water. Also, the bottled water industry although passes through regulations has more lenient rules than that of tap water.

Only 12 percent of the 30 billion bottled waters sold in the United States as at 2005 were recycled, which left close to 25 billion bottles to litter, landfill or be incinerated. The major reason is that recycled plastics can only be re-used in non-food products. This is worrisome especially as producing bottles for water yearly requires 17 million barrels of oil.

Even though the North Americans are leading the pack as regards bottled water global consumption, China has become number two, closely following behind. According to Zenith International, China which drank nearly eight billion liters of water in 2000; drank close to twenty one billion liters in 2009.

As at 2011, the global forecast in profits for the bottled water industry stood at $86 billion. This included waters such as sparkling unflavored water, sparkling flavored water, still unflavored water and still flavored water.

2. Executive Summary

Clear Gush Bottled Water Inc is a standard bottled water distribution business that is located in San Diego – California here in the United States of America in order to cater to all our various customers – domestically and business wise.

We intend to distribute a variety of bottled water – still flavored and unflavored bottled water, sparkling flavored and unflavored bottled water, mint flavored bottled water and fruit flavored bottled water. We however intend to offer other services in addition such as selling our franchise and consultancy services.

Our intention of starting Clear Gush Bottled Water Inc is to not only generate revenue and maximize profit but to also compete favorably against other leading bottled water businesses here in San Diego and the industry at large. In order to achieve this, we have laid down strategies and goals that will allow us always be ahead of our competitors.

Our bottled water distribution business is one that is strategically located and as such is very convenient for our customers and employees to get to. We have in place the best equipment and software that will allow us give the best service to our various customers, as we intend to ensure that we retain a high percentage of our customers.

We have purchased two bottled water distribution trucks that will deliver our products to all the varying customers that we have acquired. Our trucks are always in the best of conditions as we carry out maintenance checks before and after each trip. This is to ensure that there is no delay whatsoever for our various customers wherever they might be.

We understand the importance of a solid business structure and as such we are willing to go the extra mile to ensure that we get the finest professionals to work with us here at Clear Gush Bottled Water Inc. We are also going for professionals who are not only competent but understand our values and objectives as a company and are willing to ensure that they help us attain these goals.

We have gathered the best management team to help us build our company. We are proud to say that the various experiences that each member of the management team brings will ensure that our business becomes a force to be reckoned with not only here in San Diego but all over the industry here in the United States of America and even globally.

Our employees are important to us and we will ensure that they work in an environment that is conducive and easily accessible.

We will also ensure that we pay our employees very well and offer them other welfare and incentive packages that is better than what they are likely to get working for start-up competitors such as ours here in California. The reason we are paying our employees better is so as to keep them motivated and productive, thereby bringing immense benefits to the company.

Finally, Clear Gush Bottled Water is established and run by our Chief Executive Officer, Mr. Ralia Odinga, who has a degree in Food Science Technology and several other certifications that are peculiar to the bottled water industry. Mr. Odinga has had several management stints in this industry and in various other companies and therefore will be bringing his experience to bear in order to ensure that the company attains its goals and objectives.

3. Our Products and Services

Gush Clear Bottled Water Inc intends to deal in the most popular varieties of bottled water for all our various customers either domestic or businesses from our permanent location here in San Diego – California.

However, because we intend to boost our revenue base and make our bottom line more solid, we will be engaging in activities that will generate more sources of income for us. Our intention is purely to make as much profit as we can to sustain our business as is within our ambition and permissible under the laws of the United States of America.

Below therefore are some of the products and services that we intend offering;

• Different varieties of bottled water (still flavored and unflavored bottled water, sparkling flavored and unflavored bottled water, mint flavored bottled water and fruit flavored bottled water)
• Consultancy and Advisory Services

4. Our Mission and Vision Statement

• Our vision as a business is to ensure that we adhere to international best practices in our bottled water distribution business. We intend to be known nationally for our quality products and to become the top 5 leading bottled water distribution business all over the United States of America by our 5 th year in business.
• To enable us achieve our vision, we have laid down plans, structures and processes in place that will allow us not only compete favorably against our competitors but allow us stand out in the industry, therefore becoming a force to be reckoned with.

Our Business Structure

Building the right business structure is very important to us and we intend to make sure that we get it right from the beginning by doing all we can to employ the best hands that are not only capable but have relevant experience to handle the various positions in our company and the  responsibilities that would come with these positions.

Our management team has the best brains in the industry who not only understand the business thoroughly but have workable ideas on how best to ensure that we attain the intended heights we want for our business. Our management team is also one that believes fully in our objectives and will ensure that not only are our philosophies communicated to the lower end staff but that they are implemented as well.

Because we intend to offer other services in addition to our core service, we will not be hiring the same number of employees as those companies just into bottled water distribution alone. The various employees that we intend to employ are those that will handle all the various tasks and responsibilities with as little supervision as is necessary here at Clear Gush Bottled Water Inc.

Therefore the business structure that we intend to build at Clear Gush Bottled Water Inc;

Chief Executive Officer

Facility Manager

Human Resources and Admin Manager

Logistics Manager

Accountant/Cashier

Marketing and Sales Team

Customer Service Executives

Security Guard

Truck Driver

5. Job Roles and Responsibilities

• Makes strategic decisions and policies that will affect the direction and growth of the company
• Recruits, selects and employs the management team and delegates responsibilities to them
• Ensures that the organizational vision is not only clearly communicated but also implemented as well
• Manages the facility on behalf of the company
• Carries out inspection on the facility and effects maintenance and repairs when and where necessary
• Ensures that the facility remains conducive at all times for employees
• In charge of ensuring that all the administrative functions of the company flow smoothly
• Sources for, interviews and recruits the right employees that will further enhance the goals and objectives of the company
• Conducts periodic employee performance appraisals in order to determine those employees who are working hard to further the goals of the company and reward them via promotion and incentives
• In charge of determining the right routes that will be used by drivers in getting to customers
• Takes orders from customer service executives and determine how best to ensure that they are duly delivered
• Ensures the smooth functioning of the delivery of products
• Prepares financial information, budgets, statements and reports on behalf of the company
• In charge of internal auditing as well as employee payroll
• Prepares tax documents and ensures that they are submitted to the right authorities
• Conducts market research in order to determine new target markets for the company
• Drafts effective marketing strategies to be used in generating revenue for the company
• Meets and negotiates with clients in order to meet up with the corporate sales goals of the company
• Answers inquiries, gives information and takes orders from customers on behalf of the company
• Remains updated about company policies as well as industry trends in order to be able to give accurate information to customers
• Keeps an updated but accurate customer database on behalf of the company
• Ensures that the premises remains free of trespassers by carrying at patrols around the premises at certain appointed times
• Monitors incoming and outgoing products and personnel and reports any suspicious activities
• Carries out any other duties as might be assigned by the management
• Ensures that the premises remains clean at all times for clients and employees
• Ensures that cleaning supplies are always in stock
• Carries out any other duties as assigned by the management
• Ensures that the correct number of bottled water are loaded and offloaded in line with documentation
• Uses the best routes that is reliable as well as fast while obeying traffic rules and regulations to ensure that customers get their products on time
• Carries out light maintenance on the truck and report major faults to the management

6. SWOT Analysis

Due to our desire to run a business that is not only of high standard but that will remain sustained for as long as we want, we engaged the services of a reputable business consultant here in San Diego – California who has a thorough knowledge of the business we intend going into to look through our business concept and determine if this is the business we are likely to succeed or fail at.

The business consultant having looked through our business concept carried out an analysis that identified our strengths and weaknesses, looked at what opportunities are available to us and also what threats we were likely to face when starting this business here in San Diego – California.

Therefore, below is a of the SWOT analysis that was conducted to show how Clear Gush Bottled Water Inc was likely to fare when starting this business;

The strengths that we possess going forward is the fact that we are offering our various customers exactly the kind of bottled water they would prefer. The accuracy in anticipating the needs of our customers came from the market research that we conducted that allowed us have a clear picture of what our customers want.

Our employees are those that are very competent and capable; they understand the business and know what needs to be done to ensure that we attain all our goals and objectives. Also, our customers receive excellent care from us thereby not only allowing us to have a valuable relationship with them but also allow us retain a large percentage of our customers.

Finally our Chief Executive Officer, Mr. Ralia Odinga is one with more than 15 years experience in the bottled water industry having worked in managerial capacities in several companies. He therefore knows what it takes to ensure that we attain all our intended goals and objectives.

As a new business, we have several weaknesses. We do not have the financial strength as an already established bottled water distribution company, neither do we have the staff strength that will see us quickly attaining all our goals and objectives. We have however put plans in place that will work on our weaknesses and allow them become our strength.

• Opportunities

More people understand the convenience of taking bottled water and as such there are several opportunities open to us especially in third world countries where there are several countries where their citizens cannot get access to clean drinking water.

Just like any other business, there are several threats that we face as a business and these threats are; having to deal with a strong competitor offering same services as our company.

Also, more people are turning to tap water as a substitute, because of the knowledge that tap water isn’t as bad as previously claimed. Another threat we would face is stringent governmental policies for players in the bottled water industry.

7. MARKET ANALYSIS

• Market Trends

The bottled water industry in the United States of America is one that has seen great innovation, high profit margins, fierce competitions and marketing promotions that are wide-spread.

The bottled water industry has continued to meet high consumer demands with different niches springing up and offering different varieties of bottled water such as still and sparkling, flavored and unflavored. This has seen the industry as at 2005 in the United States of America, have revenues that have reached $14.9 billion.

The various trends in the bottled water industry have included factors such as new product development, innovative and wide spread marketing efforts, packaging efforts and the emergence of new industries making forays into bottled water.

A cause for industry decline is likely to come from more customers increasing their knowledge about the origins of tap and bottled water.

Even though there are different arrays of bottled water products such as; bottled mineral water, purified water, spring water, distilled water, sparkling water, calcium enhanced water, artesian well water, fluoridated water, protein enhanced water, hyper-caffeinated water, mint flavored water, hydrating water, vitamin infused water, fruit flavored water, super  oxygenated water and cosmeceutical water; the leading source of revenue in the industry has always been the  unflavored water, which generates more than 88 percent of the total market share.

8. Our Target Market

Even though it is apparent that more than half of all Americans drink bottled water, it is not a given that we should base our target market on that without carrying out our own market research.

The market research we intend to conduct on our likely target customers will allow us understand those we intend to focus on and how best to draft the right marketing strategies that would allow us have a huge share of the overall market.

According to our market research, those that earned an income of $60,000 and above annually are more likely to be regular purchasers of bottled water. According to our demographics, women drink more bottled water especially the Millenials.

We therefore are in business here in San Diego – California to engage in wholesale and retail distribution of our bottled water to the following groups of people;

• Corporate Executives
• Restaurants
• Grocery stores
• Supermarkets
• Financial institutions

Our competitive advantage

Asides from the fact that we have established a business that is intended to make profit, another reason is that we intend to ensure that our bottled water company is recognized nationally and is one of the preferred brands for our various customers, thereby allowing us to stand out and compete favorably against our competitors, not only here in San Diego – California or even all over the United States of America but also globally as well.

With this in mind therefore, we have deliberately chosen several competitive strategies that will allow us compete favorably against our competitors.

First off, we are strategically located in the city of San Diego – California, which makes it very easy for our customers to get to us, allowing us therefore generate more sales than our competitors in other nearby locations. Also, our facility is one that is very conducive for our employees.

We have in our management team people with vast experience and who have the understanding of how best to ensure that our business becomes one that is a force to reckon with.  Everyone in our company sees themselves as  stakeholders and therefore takes all our customers very seriously by imbibing an excellent customer service culture that will see us retaining a large percentage of our customers.

Finally, our employees are well paid and have the best welfare and incentive packages which beat what other start-ups similar to ours are offering their employees. We understand that ensuring that our employees work in a conducive environment and also that they are well paid will allow them work hard and remain committed to ensuring that our corporate goals and objectives are attained.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Clear Gush Bottled Water Inc is a bottled water distribution company that has been established with the intentions of generating revenue and maximizing profit in the bottled water industry here in the United States of America by distributing bottled water to all its various customers both domestic and businesses.

We therefore intend to generate income for Clear Gush Bottled Water Inc by engaging in the following services;

10. Sales Forecast

Bottled water has come to be very popular and taken by almost everyone in the United States of America due to various reasons, which means that there will always be a high demand for bottled water.

According to research, San Diego is the city that has the highest number of people who purchase bottled water. This makes our location to be one that is very strategic and we are quite optimistic that we will not only generate enough revenue here at our location but that we will make enough profit within the first year of business.

In order for us to be able to arrive at the right forecast for our business, we carried out a market analysis of the bottled water industry so as to analyze our chances of making the intended profit within the first year of business. The sales forecast we came up with is dependent on several assumptions and data that was gathered from similar businesses such as ours here in San Diego – California.

Below therefore are the sales projections that was conducted on behalf of Clear Gush Bottled Water Inc based on certain assumptions and data;

• First Fiscal Year-: $700,000
• Second Fiscal Year-: $1,300,000
• Third Fiscal Year-: $2,500,000

N.B : It should be noted that the above sales projections were carried out based on what is obtainable in the bottled water industry and on the assumptions that more people won’t turn to alternatives (tap water) and that also there won’t be an arrival of a competitor within the stated period by which we have laid out our projections. The above amount might be lower or higher should there be any change in the assumptions used.

• Marketing Strategy and Sales Strategy

Marketing is a very important part of any business because it is an avenue for not only generating money but also raising the needed awareness for the business. Any serious entrepreneur usually sets aside an amount separately for marketing so that there won’t be any hindrances regarding the marketing campaigns for the business.

In view of this, we have endeavored to conduct a market research that will allow us understand who our target market is and how best to penetrate the market so that we can position our business to become leaders in the industry. Our market research made use of vital information and data that we garnered from similar businesses such as ours especially those already established and seemingly successful.

In order for us to craft strategies that will not only allow us gain a huge share of the market but also be able to compete favorably against our competitors, we hired the services of a reputable marketing consultant who not only understands the market but have had a fair share of success in helping companies such as ours be able to reach their corporate goals.

We have also empowered our sales and marketing team to ensure that the marketing strategies drafted for our business are very effective and will ensure that we are able to achieve our corporate sales goals. In summary, Clear Gush Bottled Water Inc intends to adopt the following strategies to sell its bottled water;

• Open our bottled water distribution company with a unique party that will generate interest and raise the right awareness for our business.
• Introduce our bottled water distribution business to various industry stakeholders not only here in San Diego – California but also all over the United States of America.
• Place adverts in local and national newspapers as well as on radio and television stations.
• Ensure that our business is listed in online directories and in yellow pages.
• Empower our sales and marketing team to engage in direct marketing and sales.
• Place adverts in popular websites and blogs in order to generate more sales for our business.

11. Publicity and Advertising Strategy

Having the right publicity and advertising strategies is very important for any business that wants to exist and sustain itself in whatever industry it starts in; and so, we intend to go all out to ensure that we publicize our bottled water distribution business to all those in our target market.

To this aim, we have hired the services of a reputable brand consultant based here in San Diego, who has a thorough understanding of the industry to help draft publicity and advertising strategies that will ensure that we gain a large share of the target market.

The platforms that we therefore intend to use in publicizing our bottled water distribution business are;

• Use our website and social media platforms such as Facebook, Twitter and Linkedin to vigorously promote our bottled water distribution business.
• Engage in and sponsor relevant community programs.
• Ensure that we place adverts in newspapers and magazines as well as on radio and television stations.
• Place bill boards in strategic locations all around California.
• Distribute handbills and fliers in various strategic locations.
• Ensure that we use colours and a logo that stand out for our distribution trucks.

12. Our Pricing Strategy

There are several factors that come into play when deciding what price to set for your products, and ours is no different. We will take several factors into consideration in determining what prices we will set for our products. The factors we would consider are; overhead costs, running costs, utility costs and what our competitors are offering.

In order however to attract more customers to our business, we intend to offer our customers a discount in the first three months of starting our business. After a thorough evaluation of this method, we are convinced that even though we might be making less profits, we would not be running totally at a loss.

• Payment Options

Due to the fact that we intend to offer various services to our different customers, we have rolled out various payment options that would suit their preferences and tastes. Therefore, below are the payment options that we intend to make available to all our various customers here at Clear Gush Bottled Water Inc;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via check
• Payment via Credit Card
• Payment via online payment portal
• Payment via bank draft

The above payment options were carefully chosen by us because we know that not only will it be convenient for our customers but for our business as well. The payment options that we have chosen will work smoothly to help us further attain our corporate goals.

13. Startup Expenditure (Budget)

The bottled water distribution business is one that is a bit capital intensive especially if one expects to run a standard business.

The start-up capital for our business will be spent on procuring delivery trucks, paying the salaries of employees for at least 6 months and also leasing and renovating a facility for use. Therefore the key areas where we intend to spend our start-up capital on are;

• Total fee for registering the business in the United States of America – $750
• Obtaining of licenses and permits, obtaining of accounting and customer database software as well as other legal expenses – $3,250
• Cost of hiring a business consultant – $3,000
• Insurance coverage (general liability, workers’ compensation and property liability) – $3,000
• Marketing promotion expenses for the grand opening of Clear Gush Bottled Water Inc as well as for general marketing activities – $4,000
• Cost of leasing a facility for at least 4 years and carrying out renovations – $150,000
• Operational expenses for the first 6 months (salaries of employees and payment of utility bills) – $150,000
• Cost of start-up inventory (raw materials, bottles and packaging labels) – $90,000
• Administrative expenses (stationeries, computers, printers, phones) – $10,000
• Storage hardware (racks and shelves) – $3,000
• Cost of purchasing at least two delivery trucks – $100,000
• Cost of launching a website – $500
• Cost of throwing a grand opening party – $5,000
• Miscellaneous – $7,500

N.B : From the above analysis, we would require an amount of $530,000 in order to successfully start and run our bottled water distribution business here in San Diego – California. The above capital will be used in procuring two delivery trucks, leasing a facility for a period of 4 years as well as paying the salaries of employees for at least 6 months.

Generating Funding/Startup Capital for Clear Gush Bottled Water Business

Clear Gush Bottled Water Inc is a business that is fully owned by and run by Mr. Ralia Odinga, a prominent business man and entrepreneur. Mr. Odinga is not looking for any external partner and as such has decided to limit the sourcing of his capital.

The major areas where we therefore intend to source for capital for our business is;

• Generate 40% of the start-up capital from sale of stocks and personal property
• Generate 60% from the commercial bank

N.B : We were able to generate the sum of $212,000 from the sale of Mr. Odinga’s stocks and personal property. We are at the final stages of obtaining the sum of $318,000 from the bank, to be repaid in 10 years at the rate of 4%. All documents and approving documents have been signed and we have been told that the amount will be credited to our business account by the end of the month.

14. Sustainability and Expansion Strategy

In order for a business to survive and expand, there are certain factors that it would need to take into consideration. Such factors are the business structure, its publicity strategies as well as its re-investment strategies.

Because we understand that a solid business structure allows for a smooth running of the business, we have endeavored to go the extra mile in ensuring that we get the right employees to handle the various positions in our business.

Our employees are not only capable and competent; they have the experience to ensure that our business becomes a force to be reckoned with nationally.

We know how vital publicity is to our business and due to this, we intend to draft the right publicity strategies that would communicate our brand positively to our customers and stakeholders. We have hired the services of a reputable brand consultant to help us draft effective publicity strategies that will allow us to favorably compete against our competitors.

So that we will not continually source for funds externally, we have set forth plans and processes that will ensure that we retain a percentage of our earnings right back into the business. This way we would be able to boost our bottom line and even repay our loans within the set period.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: 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
• Conducting feasibility studies: Completed
• Generating capital from family members: 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
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: 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/merchants: In Progress
• Purchase of trucks: Completed

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Water Purification and Bottling Business Plan Template

Mar.14, 2022

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Table of Content

Water purification and bottling business plan for starting your own business

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

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

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

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

Executive Summary

2.1 the business.

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

2.2 Management of water purification and bottling business

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

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

2.3 Customers of water purification and bottling business

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

• Restaurants and Canteens
• Event Planners

2.4 Business Target

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

Company Summary

3.1 company owner.

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

3.2 Why the water purification and bottling business is being started

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

3.3 How the water purification and bottling business will be started

Step1: Planning for the business

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

Step2: Get Recognized

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

Step3: Offices 

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

Step4: Online Presence

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

Step5: Marketing

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

Services of water purification and bottling business

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

• Bulk Purified water

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

• Still bottled water

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

• Sparkling bottled water

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

• Flavored bottled water

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

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

Marketing Analysis of water purification and bottling business

Excellent work.

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

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

5.1 Market Trends

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

5.2 Marketing Segmentation

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

Business plan for investors

5.2.1 hotels.

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

5.2.2 Restaurants 

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

5.2.3 Event Planners

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

5.2.4 Retailers

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

5.3 Business Target

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

5.4 Product Pricing

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

Marketing Strategy of water purification and bottling business

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

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

6.1 Competitive Analysis

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

6.2 Sales Strategy

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

6.3 Sales Monthly

6.4 sales yearly, 6.5 sales forecast, personnel plan of water purification and bottling business.

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

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

7.1 Company Staff

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

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

7.2 Average Salary of Employees

Financial plan of water purification and bottling business.

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

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

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

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

8.1 Important Assumptions

8.2 break-even analysis, 8.3 projected profit and loss, 8.3.1 profit monthly, 8.3.2 profit yearly, 8.3.3 gross margin monthly, 8.3.4 gross margin yearly, 8.4 projected cash flow, 8.5 projected balance sheet, 8.6 business ratios.

• Is water bottling a profitable business?

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

• How do I start a water purification business?

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

• Is packaged drinking water business profitable?

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

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

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

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

Download Water Purification and Bottling Business Plan Template in pdf

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Business Plan Template for Water Refilling Station

• Great for beginners
• Ready-to-use, fully customizable Subcategory
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Starting a water refilling station business can be a daunting task, but with the right plan in place, you can turn your entrepreneurial dreams into a reality. ClickUp's Business Plan Template for Water Refilling Station is here to guide you every step of the way!

This comprehensive template helps you create a solid business plan by:

• Outlining your strategy and goals, ensuring you stay on track
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• Developing financial projections that demonstrate the profitability of your venture
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Whether you're seeking investors or simply want a roadmap for success, ClickUp's Business Plan Template for Water Refilling Station has got you covered. Start planning your business journey today!

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A business plan template for a water refilling station can provide numerous benefits for entrepreneurs looking to start their business. Some of these benefits include:

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• Operational procedures: Entrepreneurs can use the template to define operational procedures, such as water purification processes, quality control measures, and inventory management, ensuring smooth operations.
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When starting a water refilling station business, having a solid business plan is crucial. ClickUp's Business Plan Template for Water Refilling Station provides all the essential elements to help you create a comprehensive and professional plan:

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If you're starting a water refilling station and need to create a business plan, follow these steps to effectively use the Business Plan Template in ClickUp:

1. Define your business concept and goals

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Use a Doc in ClickUp to brainstorm and outline your business concept and goals for your water refilling station.

2. Conduct market research

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Use the Table view in ClickUp to organize and analyze your market research data effectively.

3. Develop your operational and financial strategies

In this step, outline the operational and financial strategies you'll implement to run a successful water refilling station. Define your pricing structure, distribution channels, marketing tactics, and operational processes. Additionally, project your financials including start-up costs, revenue forecasts, and profitability analysis.

Create custom fields in ClickUp to track and analyze your operational and financial strategies in your business plan.

4. Review and refine your business plan

Once you've completed the initial draft of your business plan, take the time to review and refine it. Ensure that all sections are comprehensive, cohesive, and aligned with your overall objectives. Seek feedback from mentors, advisors, or industry experts to strengthen your plan and make necessary revisions.

Set a recurring task in ClickUp to regularly review and update your business plan to reflect any changes or updates to your water refilling station.

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Now you can take advantage of the full potential of this template to create a solid business plan:

• Use the Topics View to organize your business plan into different sections such as Executive Summary, Market Analysis, Financial Projections, and Operational Procedures
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• The Timeline View will provide a visual representation of your business plan's timeline, allowing you to set deadlines and milestones
• The Business Plan View will give you a comprehensive overview of your entire business plan, allowing you to easily navigate between sections
• The Getting Started Guide View will provide step-by-step instructions on how to use the template and fill out each section
• Utilize the custom fields, such as Reference, Approved, and Section, to add additional information and track the status of each section
• Collaborate with team members and stakeholders to gather input, feedback, and revisions
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Water Purification Business Plan

Start your own water purification business plan

H2O Industries

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

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

1.1 Objectives

The primary objectives are:

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

1.2 Mission

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

1.3 Keys to Success

H20 Industries’s primary keys to success are:

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

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

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

2.1 Company Ownership

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

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

2.2 Start-up Summary

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

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

2.3 Company Locations and Facilities

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

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

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

Products and Services

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

3.1 Product and Service Description

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

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

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

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

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

3.2 Competitive Comparison

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

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

3.3 Sales Literature

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

3.4 Fulfillment

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

3.5 Technology

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

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

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

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

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

3.6 Future Products and Services

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

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

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

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

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

4.1 Market Segmentation

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

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

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

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

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

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

Hospital Dialysis Units and Stand alone Clinics:

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

Labs and pharmaceutical Manufacturers:

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

Electronic Manufacturers:

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

Machine Tools and Parts:

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

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

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

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

4.2 Target Market Segment Strategy

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

4.2.1 Market Trends

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

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

4.2.2 Market Needs

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

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

4.2.3 Market Growth

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

4.3 Service Business Analysis

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

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

4.3.1 Competition and Buying Patterns

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

4.3.2 Main Competitors

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

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

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

4.3.3 Business Participants

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

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

Strategy and Implementation Summary

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

5.1 Value Proposition

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

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

5.2 Competitive Edge

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

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

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

5.3 Marketing Strategy

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

5.3.1 Distribution Strategy

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

5.3.2 Positioning Statement

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

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

5.3.3 Pricing Strategy

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

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

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

5.3.4 Promotion Strategy

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

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

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

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

5.4 Sales Strategy

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

5.4.1 Sales Forecast

Sales Projections:

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

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

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

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

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

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

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

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

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

Variable Unit Costs:

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

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

Cost of replacing small amounts of lost resin.

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

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

Summary of Anion servicing costs:

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

Total for anion servicing: $10.74

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

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

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

Summary of Cation servicing costs:

• Resin replacement: $0.60.

Total: $8.78 for cation servicing.

Costs of servicing one cubic foot of mixed bed:

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

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

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

Tank Rental Income:

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

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

Tank Sales:

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

5.5 Strategic Alliances

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

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

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

6.1 Management Team

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

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

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

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

6.2 Personnel Plan

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

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

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

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

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

Financial Plan investor-ready personnel plan .">

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

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

7.1 Important Assumptions

Tax rate reflects the present sliding scale:

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

Inventory Turnover:

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

7.2 Break-even Analysis

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

7.3 Projected Profit and Loss

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

7.4 Projected Cash Flow

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

7.5 Projected Balance Sheet

The projected balance sheet for H20 Industries is presented below.

7.6 Business Ratios

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

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11 May 2021

Water bottling plant business, starting a water bottling plant in nigeria.

By Taiwo Olowu, ACA

Table of Contents

Introduction

Water is an essential part of man’s existence, without water there will be no life. Every human consumes water and needs it to carry on the activities of life. Nigeria is a blessed nation with a large population and rich natural resources. Water is abundantly available and there exists a high demand for water by the rising population.

Setting up a bottled water production plant in Nigeria is a very good investment and highly lucrative as there exists an opportunity to meet the increasing demand for water and make some profits. In Nigeria today, there exist lots of bottled water producing companies, however, because the demand for water is very high and insatiable there is still space in the market to be penetrated by new companies.

The bottled water market already has existing companies and competition, however, there is no threat of new entrants. New companies can easily penetrate the market as there are no entry or exit barriers. There is high demand for clean and pure drinkable water in Nigeria and this demand increases as the population increases. There exists a great profit potential in the bottled water market that’s the reason most top organizations producing soft drinks also venture into producing bottled water.

Starting a Bottling Plant Business in Nigeria

Every business has some basic necessities that must be put in place in order to have a good start. Similarly, there are things one needs to take care of and put in place when one wants to start a bottling plant business. The following should be acquired or provided for before commencing a bottle plant business:

Market Study

• Have a business plan
• Business registration

Source for Capital

Choose a location, get necessary equipment, acquire knowledge, recruitment, get a website.

Appropriate knowledge of the market or industry one desires to enter is needed to enable one compete successfully and survive in the market. One must understand the competition in the market, the market structure, the consumers’ preferences, the opportunities and threats existing in the market and the relevant government policies to the market/industry.

A perfect understanding of the competitors in a market will help one to better strategize in a bid to perform better than the competitors and secure some market share. The bottling industry has many competitors in existence, however, with the right strategy and plan one will successfully enter the market, compete and withstand its competitors in the market.

Business Plan

A business plan is a formal written document which contains the goals of a business, how it intends to achieve those goals and the time-frame allotted to achieving the goals. You will need to draw up a business plan, wherein you state clearly your business concept, your financial forecast, the financial requirements (capital), your current business position among others.

The business plan of a bottled water business will state in details the financial projections of the business. It shows the amount of funding required and how the funds will be sourced.

Registration and Licenses

It is important for every business to register with the Corporate Affairs Commission (CAC) and obtain all relevant licenses before it commences operation. This gives the business  legal recognition and opportunity to access and benefit from government grants and funds applicable to such types of businesses.

In starting a bottled water business, one needs to register the business with the CAC as a limited liability company. The bottled water business as part of foods and beverages must obtain license from the National Agency for Food and Drug Administration and Control (NAFDAC). After registering with CAC, one needs to start processing NAFDAC registration. This will require strict adherence to the safety regulations set out by the agency. As part of the process, your facility will be inspected as well as the type of machines you use and your production process to ensure it does not default on any standard.

The bottled water business needs to also be registered with the relevant tax authority (Federal Inland Revenue or the State Internal Revenue). You will need to also obtain a license from the State health departments to construct a water production plant within the states.

The startup capital needed for a bottled water business depends on the scale you want to start operating in. Where one does not have sufficient capital, one can start small and then grow the business into a larger scale as time goes on. Water which is the main raw material needed for the bottled water business is a free gift of nature and abundant in supply. The major expenses to be made will be for the purchase of equipment and the  location of the site.

There are so many sources of capital available to businesses. You can decide to obtain a loan from the bank, get an investor, apply for government grants or a business incubator. As a startup business, you can explore any of the following options in sourcing of capital:

• Personal investment

You can start up your business with your personal savings. As a business owner, you should be the first investor in your business. You can either invest with your cash or with collateral on your assets. Investors and banks will be more convinced of your long-term commitment to the business when they see that you have a stake in it.

Love money is money borrowed from friends and family. Such money referred to as ‘patient capital’ will be repaid later as the business profit increases.

• Venture capital

In a venture capital arrangement, investors provide to startup companies and small businesses that are believed to have long-term growth potential with the required financing of the business.

Generally, angels are wealthy individuals or retired company executives directly invest in small businesses owned by others. Most times, these angels are leaders in various fields who on addition to the money invested into the business contribute their experience, network of contacts and their technical/managerial knowledge

• Business incubators

The focus of business incubators/accelerators is in the high-tech sector where they provide support for businesses in various stages of development.

• Government grants and subsidies

Grants and subsidies are provided by government agencies for various sectors. Most times, governments provide grants and subsidies to sectors they feel are underdeveloped or not developed at all. The essence of the grants is to encourage businesses to come into the industry and grow the sector of the economy.

The most commonly used sources of funding  small and medium-sized firm are the bank loans. Banks will require a personal guarantee from the startups that they can be able to back the loan obtained. A business has to have a sound track record an excellent credit rating to be able to secure loans from banks.

The location of a business is very important. It is essential to locate a business close to its source of raw materials, its suppliers, and electricity among others. This will help reduce operational cost of the business. For a bottled water business, the major raw material which is water is readily available and free. However, in order to minimize cost one should consider locating the business closer to the suppliers and where electricity is constant so the profits can be maximized.

It should be noted that water is an essential commodity and the demand for water can never be saturated or exhausted. There will always exist a portion of the market where one can explore and capture  oneself. People demand for bottled water both in rural and urban areas. The demand for bottled water would however be higher in the city than in the villages as most villagers may not be able to afford to buy bottled water.

When choosing a location for your bottled water business, you should also consider things like the security of the factory, power, access to road, and so on. Your factory can either be leased/rented or bought depending on the capital at your disposal. The location should however be one with enough space to accommodate all the needed plants and machineries, management office, borehole, store for empty bottles & finished products and parking space for vehicles.

Your facility should not be located far from town, if possible, it should be located in town, as long as the law permits and it would not lead to environmental disruption or pollution. It would be easier to make deliveries and to make your product readily accessible to customers when you situate your facility in the middle of the town.

The equipment needed for a bottled water business are:

• Trucks to be used in delivering finished products
• Alternate power supply
• Online batch number printer
• Office equipments
• Fire extinquishers

To succeed in any business, one needs to be well acquainted with and understand the basic principles of the business and how the business works. To survive in the bottled water business industry, you need to have the basic knowledge about the bottled water production process, how you can make improvements on what is obtainable in firms in the industry, how to stand out among competitors and also how to grab opportunities as they arise in the industry. You have to be at alert to changes in the business environment and adapt quickly to those changes. Also your policies need to be flexible enough to accommodate changes in the environment as they occur.

You can seek the help of professionals in the field and consultants to assist you in setting up your bottled water factory. You can also attend seminars, trainings, workshops and symposiums to learn more about the bottled water business and gain expertise.

You will need to recruit some staff to assist you in your bottled water production business. Staff to be employed include: operators to operate/man the machines, packagers to package the bottled water, cleaners to keep the environment clean and hygienic, drivers to drive the trucks, sales personnel to manage sales of the package water, security personnel to secure the premises and a supervisor to supervise the production process and the staff.

The staff you hire should be well skilled and experienced for the roles you put them. They must possess adequate technical knowledge on how to operate equipment at the plant for effective output.

Marketing is an integral part of the success of any business. Any business that does not engage in marketing cannot survive in its industry. Marketing involve carrying out activities that makes your business more visible to your target audience. You can market your business through word of mouth, referral, social media advertising, Google advert etc.

To make your bottled water more visible to consumers, you need to engage in aggressive advertisement and distribution. Advertise your product on television, radio, give free samples of your product to people to create awareness. Aggressively distribute your bottled water to different corners of the city/country, display your bottled water in supermarkets/shops, you can also go from door to door to introduce your water to people.

You need to come up with the best strategy to adopt to penetrate the market and gain ground. One way you can penetrate and generate sales is through supermarkets, eateries, restaurants, schools, hospitals, offices, relaxation centers, big shops and stores. Approach hospitals and supermarkets around you with a proposal to be their official distributor of bottled water. You must have a strong plan of the promotional activities you will engage in to positively influence the consumers’ behavior because the water industry is full of stiff competition.

You need to plan for a very strong distribution network so your product can penetrate and get to the reach of all consumers both the farthest and nearest ones. You also need to have a unique and neat packaging that will attract consumers and pull them towards your product. Most importantly, your bottled water has to be of top quality and clean because that is what will keep consumers coming back to you and purchasing your product.

We are in a digital age, where most activities are done through the use of modern technology. You need to create a website for your business to give it more online awareness and to attract online customers. One benefit of creating a website is that it attracts a large volume of traffic to your business. Your website will contain pictures and information about the kind of products you offer to the public. Owning a website makes it easy for other business organizations in need of your oroduct to contact you and make bookings. Also, people can visit your website at any time to place their orders and you keep making sales without physical contact or connection.

We have discussed the basic to start a bottle water business including having  business plan, raising funds, marketing and market study

To learn more how we can help you achieve your vision on starting a business like this, please reach us now on 08023200801, email [email protected] or send us a detailed request by completing our enquiry form

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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

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

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

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

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

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

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

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

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

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

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

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

Call us at 07033378184

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

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

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

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

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

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

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

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

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

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

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

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

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

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

good writeup

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

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

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

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

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

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

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

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

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

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

The high demand for pure water by Nigerians is one reason for its profitability.

Lack of good and clean water also contributed to pure water profitability.

The sellers make nothing less than a 40% return on investment during this business.

The high profit margin of the pure water business mainly depends on factors like the company’s size, production costs, and selling price.

This also affects how profitable a pure water business in Nigeria is.

Small-scale pure water businesses can open you up to money making.

Those in charge of pure water retail sales also make money from it.

Steps to Starting Pure Water Business in Nigeria

Here are the steps to start a profitable pure water business in Nigeria:

1. Study the Market

Study the pure water market to learn how it works before diving into it.

Research your target audiences, location, competitions, and purchasing power.

Learn the strategies in business so you can be able to make money.

2. Business Plan

Write a business plan that includes your target audiences, business goals, budget, and all the marketing strategies you discovered at the research stage.

A good business plan plays the role of a guard in achieving your business goals and growing your business.

3. Fulfill the Legal Requirement

You need to meet specific regulatory standards before you can officially run a pure water production business in Nigeria.

Ensure you visit the body’s office in charge of the license guiding safe water production in Nigeria to get the permits and licenses.

One of those bodies is NAFDAC.

4. Choose a Good Location

Choosing a suitable location plays a significant role in your pure water business.

While doing this, ensure to target the right audiences and avoid setting up your business anywhere you see.

Yes, we know everyone buys sachet water, but there are locations where you can make more significant sales.

Always target those locations.

5. Choose a Reliable Water Source

For a pure water production business, choose a reliable water source e and a suitable treatment procedure for your product.

You wouldn’t want people to give a bad review of your product.

Install a good water treatment plant to help.

Purify your sachet of water.

6. Packaging and Branding

The importance of packaging and branding must be considered in this context.

Build a mind-blowing brand identity.

Again, let your product packaging speak for itself and attract more customers to your brand for patronage.

7. Marketing and Promotion

After you’ve done everything necessary to build a fantastic pure water brand, it’s time to market your product and getting people out.

Know about the amazing product you have put in place.

Use different marketing channels to create awareness and drive sales.

Create an Instagram account, website, and Facebook page for your business and market your product hard.

If you want to increase your pure water production profitability, follow these steps:

• Cut down on production cost.
• Use sound and quality equipment to avoid wastage.
• Buy all your raw materials in bulk at a cheaper rate.
• Target rich audiences so you can sell at a high price and make a profit.
• Spread your distribution network.
• Do not joke about marketing.
• Always advertise your brand so people can get to know about your business.

Equipment Needed for Pure Water Business

To start a pure water business, you will need these equipments:

• Raw water storage tanks.
• Submersible pumping machine.
• Surface pumping machine.
• Water treatment plant.
• Packaging machine.
• Generator to provide backup power in case of power outages.
• PVC pipes and plumbing fittings.
• Water testing equipment.
• Personal protective equipment (PPE).

Cost of Starting a Pure Water Business in Nigeria

The cost of starting a pure water business in Nigeria today depends mainly on the business size. You can start hawking pure water with as low as ₦1000 to ₦2000.

If you want to open a shop selling in bulk to retail sellers and users, budget around ₦100,000 to ₦500,000.

Small-scale pure water production startup capital should be around ₦2,000,000 and above.

Large-scale pure water business startup capital will cost around ₦5,000,000 and above.

These cost a lot because they involve the purchase of high-quality machinery and vehicles for product supply.

Cost of Setting up a Pure Water Factory in Nigeria

The cost of setting up a pure water factory in Nigeria depends on several factors, including the size and scale of the factory, the type of equipment used, and the location of the factory.

A typical pure water factory in Nigeria can cost between ₦10 million and ₦50 million to set up.

Here is a breakdown of some of the key costs involved in setting up a pure water factory in Nigeria:

1. Land and Rent

The cost of land and rent will vary depending on the location of the factory.

Choose a location that is close to an excellent water source and has easy access to transportation.

2. Building

The cost of building a pure water factory will also vary depending on the size and scale of the factory.

A typical pure water factory will need to have enough space for the water treatment plant, packaging area, and storage facilities.

3. Equipment

The cost of equipment is one of the biggest expenses involved in setting up a pure water factory.

The type of equipment that you need will depend on the size and scale of your business, but some of the essential equipment includes water treatment plant, packaging machine, generator, PVC pipes and plumbing fittings, water testing equipment, and personal protective equipment (PPE).

Other costs involved in setting up a pure water factory include permits and licenses, utilities, marketing and advertising, and labor costs.

Risk in Pure Water Business

The pure water business, also known as the sachet water business, is a popular and lucrative business in many developing countries, including Nigeria.

However, like any business, it is not without its risks.

Here are some of the key risks in the pure water business:

1. Water Quality

The most important risk in the pure water business is the risk of producing and selling water that is not safe to drink.

This can happen because of several factors, including:

• Using a contaminated water source.
• Improper water treatment procedures.
• Poor hygiene practices.
• Damaged packaging.

Consumption of contaminated water can lead to a variety of waterborne diseases, including cholera, typhoid, and diarrhea.

This can damage the reputation of the business and lead to financial losses because of lawsuits and product recalls.

2. Competition

The pure water business is highly competitive, with many small and large producers vying for market share.

This can make it difficult for new businesses to enter the market and for established businesses to maintain their profitability.

3. Government Regulations

The pure water business is subject to several government regulations, including those related to water quality, sanitation, and packaging.

Failure to comply with these regulations can lead to fines, penalties, and even closure of the business.

4. Economic Conditions

Economic downturns can lead to a decrease in demand for pure water, as people cut back on discretionary spending.

This can hurt the profitability of pure water businesses.

Other risks in the pure water business include equipment failure, power outages, theft, and vandalism.

Pure water business owners can mitigate these risks by:

• Investing in high-quality water treatment equipment and procedures.
• Implementing strict hygiene practices.
• Using high-quality packaging materials.
• Regularly testing their water quality.
• Getting all permits and licenses.
• Complying with all government regulations.
• Purchasing insurance to cover against unexpected losses.

Building a pure water business in Nigeria is a favorable venture once you have everything in place.

With all we’ve discussed so far, we believe you understand some things about the business and the steps to get things done.

If you want to sell pure water wholesale, locate the companies you want to sell their product, rent a shop in a good place, purchase a good freezer, and start your business.

Both pure water hawkers and direct consumers will always troop in, especially if your water is always cold.

READ ⇒  71 Legit Ways to Earn Money in Nigeria (Online and Offline)

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Water Delivery Business Plan Template & Guidebook

Ready to launch your own water delivery company but uncertain of where to start? Look nowhere else! Everything you require to write a thorough business plan and launch your venture is included in our water delivery business plan template and instruction manual. Our template and handbook offer a step-by-step process for starting an own water delivery business, including everything from market research and financial predictions to marketing strategies and operational plans. With the help of our tried-and-true template and knowledgeable advice, you can confidently make your idea a reality. Why then wait? Create your business plan for water delivery right away!

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

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

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

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

The first step to writing your business plan is to describe the purpose of your water delivery 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 delivery business:

At our water delivery company, our mission is to provide convenient and reliable access to clean, fresh drinking water for households and businesses in our community. We are committed to using the highest-quality sources and filtration methods to ensure that our water is safe and enjoyable to drink. We strive to be a go-to source for our customers' water needs, offering flexible delivery options and exceptional customer service. We are dedicated to making it easy and convenient for our customers to stay hydrated and healthy, without having to worry about the quality or safety of their drinking water.

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

The next step is to outline your products and services for your water delivery 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 delivery 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 delivery 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 delivery 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 delivery business?

To run a water delivery 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
• A fleet of vehicles, such as trucks or vans, for transporting water to customer's homes or businesses
• Water tanks and other equipment for storing and delivering water
• A supply of water, either bottled or from a municipal water source
• 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 delivery business or a permit to transport water.

Overall, running a water delivery business requires a mix of equipment, supplies, and permits to ensure that you can provide clean and reliable water to your customers.

5. Management & Organization of Your Water Delivery Business.

The second part of your water delivery 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 delivery 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 Delivery 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 delivery business varies based on many different variables, but below are a few different types of startup costs for a water delivery 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 delivery 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 delivery 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 delivery 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 Delivery Business Plans:

Why do you need a business plan for a water delivery 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 delivery 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 delivery business?)

To build a business plan for your water delivery 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 delivery 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 delivery business plan yourself?

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

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

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

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

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Our Business Plan 2020–25

To help us create our plan we contacted hundreds of thousands of current customers, businesses, independent experts, regulators (like Ofwat), and many young people who might be customers themselves one day.

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Water is essential to every aspect of our lives.

We drink it, cook with it and use it to clean. It grows the food we need, helps generate the energy we use, and goes into the creation of everything we own. But our water supply faces big challenges. The population of the South East is growing fast, and climate change will bring droughts and more extreme weather. It’s a future of more people needing water and wastewater services, with less water to go around.

The vital nature of water, and the need to keep it flowing far into the future is what we mean by  Water for Life . And it’s why we need to start acting now for the challenges ahead. We’re committed to improving the South East’s precious water environment and we take our environmental duties very seriously. We’ve come a long way since our transformation programme started in 2017 – and we’re going further each day. View our  our investment areas map. On this map you’ll find an overview of our investment plans for 2020–25, which show our course of action for the years ahead. 

You can also read the full suite of documents submitted to our regulator below:

Revised business plan.

IAP Action Tracker Executive summary Board Statements Technical Annex 1 – Engaging Customers Technical Annex 2 – Affordability and vulnerability Technical Annex 3 – Delivering Outcomes for Customers Technical Annex 4 – Securing Long Term Resilience Technical Annex 5 – Targets, Controls, Markets and Innovation Technical Annex 6 – Securing Cost Efficiency Technical Annex 7 – Aligning Risk and Return Technical Annex 8 – Accounting for Past Delivery Technical Annex 9 – Securing Confidence and Assurance Technical Annex 10 - IAP actions summary

Models and Data

Bill Waterfall Model PR19 Financial Model BPT FM Mapping tool Data Tables commentary Business Plan data tables Revenue adjustments feeder model RCV adjustments feeder model Totex menu WRFIM update

Representations

Securing Confidence and Assurance Executive Summary Delivering Outcomes for Customers Additional Representations Resilience Action Plan Targeted Controls Markets and Innovation Securing Cost Efficiency

Technical Annexes

Materiality threshold supporting calculation

SRN PR19 draft determinations Company representation pro forma

Tables and Models

DD Financial model SRN ST DD DD business plan commentary DD developer services commentary DD developer Services Data Tables DD outcomes Commentary DD Representations Data PR19 Business plan data tables

Resilience Action Plan

Securing Long-term Resilience

Drainage and Waste Water Management Plan

Drainage and Wastewater Management Plans (DWMPs) Southern Water DWMP Delivery Programme

Cover Contents Navigating our plan Chapter 1 – Executive Summary Chapter 2 – Trust, Confidence and Assurance Chapter 3 – Our Ambition Chapter 4 – Customer and Stakeholder Engagement and Participation Chapter 5 – Future Customer Engagement and Participation Strategy Chapter 6 – Outcomes, Performance Commitments and Outcome Delivery Incentives Chapter 7 – Delivering resilience in the round Chapter 8 – Helping customers who need our support Chapter 9 – Great Customer Service Chapter 10 – Innovation Chapter 11 – Wholesale Water Chapter 12 – Wholesale Wastewater Chapter 13 – Retail Controls Chapter 14 – Wholesale Cost Efficiency Chapter 15 – Direct Procurement for Customers Chapter 16 – Risk, Return and Financeability Chapter 17 - Accounting for Past Delivery

Our Business Plan 2020–25 has been produced to be concise, clear and sufficiently detailed in all aspects, but by the very nature of its complexity, requires a lot of supporting evidence to be robust and fully detailed. This further level of evidence and detail is provided in the form of a number of supporting appendices and data tables.

Recognising that it is not in the best interest of our customers or the wider public interest to make all of the contents of these supporting documents public, we have, in the versions of some of the supporting documents published here, made a small number of redactions of information that is either confidential, commercially sensitive, and/or otherwise identified as sensitive for reasons of national security and the requirements of the Security and Emergency Measures (Licensed Water Suppliers) Direction.

TA.0.1 Navigating our Plan TA.2.1 Statements of Board Assurance TA.2.2 Board engagement and challenge TA.2.3 PR19 Assurance Framework TA.2.4 Trust and transparency YouGov full report TA.2.4 Trust and transparency TA.2.5 Meeting our Statutory and Licence obligations  TA.2.6 Legal Instruments (WINEP and DWI Notices) TA.2.7 Letters of Assurance TA.4.1 Customer engagement methodology and findings TA.4.2 Summary of supporting customer insight   TA.4.3 Triangulation of customer priorities TA.4.5 CCG Challenge Log TA.5.1 Future Customer Engagement & Participation principles TA.5.2 Future Customer Engagement & Participation Examples TA.5.3 Future Customer Engagement Strategy (CCG - June '18) TA.6.1 Our approach to PCs and ODIs TA.6.2 Our package of PCs and ODIs TA.6.3 Rationale for AMP6 amendments and discontinuations TA.7.1 Understanding Operational risk and resilience TA.7.2 Corporate risks: Ethical business practices and modern compliance framework  TA.7.3 Understanding risks: High level risk summary table TA.7.4 Demonstrating our Resilience TA.7.5 Investing in our people TA.7.6 Measuring improvements through our performance commitments TA.7.7 Optioneering and Estimating  TA.7.8 Benchmarking Resilience and best practice  TA.8.1 Tackling affordability and vulnerability  TA.9.1 Delivering Great Customer Service TA.10.1 Innovation: Supporting Evidence TA.10.2 Understanding best-practice Innovation TA.11.1 Water AMP7 Comparative Industry Performance Assessment  TA.11.2 Water Horizons - Southern Waters Long Term Asset Management Strategy TA.11.3 Regional Water Grid TA.11.4 Water Resource Bid Assessment Framework TA.11.5 Havant Thicket Reservoir Resilience Project TA.11.WN01 Business Case - Supply Demand Balance TA.11.WN02 Business Case - Nitrate TA.11.WN03 Business Case - Water Treatment TA.11.WN04 Water Networks TA.11.WN05 Service Reservoirs TA.11.WR01 Business Case - Raw Water Pumping TA.11.WR02 Business Case - Impounding Reservoirs TA.11.WR03 Catchment Management Solutions TA.12.WW01 Business Case - Wastewater Treatment TA.12.WW02 Business Case - Network Pumping Stations TA.12.WW03 Business Case - Outfall, CSOs and Detention Tanks TA.12.WW04 Business Case - Sewers and Rising Mains TA.12.WW05 Business Case - Wastewater Growth TA.12.WW06 Business Case - Wastewater Environmental Programme TA.12.WW07 Business Case - Flooding and Pollution Strategies TA.12.1 Wastewater AMP7 Comparative Industry Performance Assessment  TA.12.2 Response to February 2018 feedback in initial bio-resources allocation proposals TA.12.3 Mott MacDonalds PR19 Bio-resources RCV Allocation TA.12.BR01 Business Case - Bioresources Treatment and Growth TA.12.MG01 Business Case - M&G Fleet TA.12.MG02 Business Case - M&G Data and Information Technology TA.12.MG03 Business Case - M&G Buildings TA.12.MG04 Business Case - M&G Research and Development TA.12.MG05 Business Case - Central Costs and PR24 TA.13.1 Doubtful debt and debt management TA.13.2 Management of gaps sites and voids TA.14.1 Cost Adjustment Claim 1 - Bathing Water TA.14.2 Cost Adjustment Claim 2 - Thanet Groundwater Protection Scheme TA.14.3 Cost Adjustment Claim 3 - Growth - Whitfield TA.14.4 Bottom-up Cost Estimation TA.14.5 PR19 Approach to Optioneering  TA.14.6 Oxera Report: Estimate of RPE and frontier shift TA.14.7 Top-down econometric analysis (Botex) TA.15.1 Direct Procurement for Customers TA.16.1 Our approach, evidence and assurance of Financial Resilience TA.16.2 Changes to Capital Structure TA.16.3 Oxera RORE modelling TA.17.1 Performance Commitment Forecasting IAP-pro-forma-6 Southern Water presentation pro-forma Southern Water presentation pro-forma guidance tables

For the latest versions of data tables, commentary and associated data models, see IAP response above.

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9 places to nosh on bagels in southern Maine

From old-school spots to foodie favorites, there's a 'hole' lot to try.

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Bread and bagels at The Works Cafe in downtown Portland. Photo by Aimsel Ponti

From New York-style boiled bagels to Montreal-inspired wood-fired ones, there’s lots of great bagels in southern Maine and several shops have the accolades to back that up.

In 2023, Bon Appetit named bagels from Rose Foods and Rover Bagel among the best in the country.

Two years before that,  Food & Wine Magazine put Rover, Forage and Scratch Baking Co. on its list of best bagels in the U.S.

Whether you like yours toasted with cream cheese or as the bread for your breakfast sandwich, you can find plenty of styles and flavors from Biddeford to Brunswick.

BEACH BAGELS

The offerings at Beach Bagels include a French toast and marble bagel, and the cream cheese menu comprises spreads like strawberry, olive and honey walnut. Along with breakfast sandwiches, Beach Bagels has hearty breakfast options like omelets and pancakes. Best of all, you’re steps away from a beach stroll. Just don’t let the seagulls steal your bagel. Advertisement

WHEN: 7 a.m. to 3 p.m. daily WHERE: 34 Old Orchard St., Old Orchard Beach. beachbagels.yolasite.com ______________

Dutchman’s opened in 2022 as a pop-up housed at Nomad pizza in Brunswick’s Fort Andross building. It’s since become a permanent fixture there and uses the pizzeria’s wood-fired ovens to bake its bagels. The hand-shaped, honey-boiled bagels come in plain, roasted garlic, poppy and a bagel-of-the-day flavor.

WHEN: 8 a.m. to 1 p.m. Thursday to Sunday WHERE: Fort Andross, 14 Maine St., Brunswick. dutchmans.me ______________

FORAGE MARKET

Making bagels at Forage Market involves a two-day aging process. The bagels are naturally leavened with wild yeast starter and baked next to a hardwood fire. There are usually five flavors available, including sesame and garlic. Breakfast sandwiches (including vegan options) are available. Forage also has a location in Lewiston. Advertisement

WHEN: 7 a.m. to 1 p.m. Monday to Friday, 8 a.m. to 1 p.m. Saturday and Sunday WHERE: 123 Washington Ave., Portland. foragemarket.com _____________

MISTER BAGEL

There are 10 or so Mister Bagel locations in Maine, including South Portland and Falmouth. It all began with the Portland location, which was the first bagel shop to open in Maine. The late Rick Hartglass started Mister Bagel in 1977, and it is still a family business. Music fans will appreciate the breakfast sandwich menu, which includes The David Bowie (bacon, egg and American cheese), the Jimmy Buffett (egg with roast beef and cheddar) and The Lady Gaga (avocado, salt and pepper, with or without egg).

WHEN: 6:30 a.m. to noon Monday to Friday, 7 a.m. to noon Saturday and Sunday WHERE: 599 Forest Ave., Portland. misterbagelforestave.com ______________

At Rose Foods, the menu varies depending on the day, but there are usually six to eight flavors available. For example, should you pop in on a Friday, you’ll find a poppy and onion bialy (a cousin of the bagel that is not boiled). Rose Foods also makes a number of bagel sandwiches, including the Classic Nova with Nova lox and the Classic Whitefish. Advertisement

WHEN: 7 a.m. to 2 p.m. daily WHERE: 428 Forest Ave., Portland. rosefoods.me

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ROVER BAGEL

At Rover Bagel, you’ll find wood-fired plain, poppy, sea salt, sesame and everything bagels available most of the time, and the spread game here is strong with cream cheese options like lemon-thyme-honey cream and chili-garlic.

WHEN: 7 a.m. to 1 p.m. Wednesday to Friday, 8 a.m. to 1 p.m. Saturday, 8 a.m. to noon Sunday WHERE: 10 West Point Lane Suite 10-204, Biddeford (Pepperell Mill). roverbagel.com

______________ Advertisement

SCRATCH BAKING CO.

You haven’t lived until you’ve experienced the line of devoted fans waiting for Scratch Baking Co. to open, especially on weekend mornings. Along with the popular Maine sea salt, plain and other everyday flavors, Scratch has a daily special bagel. There’s honeyed rosemary on Wednesday and jalapeno cheddar on Thursday. Scratch is also famous, at least to locals, for its P-Cheese spread. It’s a pimento cheese recipe made with cheddar, mayo, roasted red peppers and seasoning and was passed down to co-owner and head baker Allison Reid by her grandmother, Mern.

WHEN: 7 a.m. to 1 p.m. Wednesday to Saturday, 7 a.m. to noon Sunday WHERE: 416 Preble St., South Portland. scratchbakingco.com ___________

THE MAINE BAGEL

The Maine Bagel is a drive-thru with several breakfast and other kinds of sandwiches available. With a bagel list that features egg and bialy among the standards, the family-owned spot is the perfect place to stop on your way to Pine Point Beach. The Maine Bagel really shines with a dozen kinds of cream cheese spreads, including raisin-walnut, lox, strawberry, cranberry-nut and bacon-chive.

WHEN: 6:30 a.m. to 2 p.m. Tuesday to Friday, 7 a.m. to 1 p.m. Saturday. WHERE: 117 Route 1, Scarborough. themainebagel.com Advertisement

THE WORKS CAFE

The Works Cafe is an institution on the edge of the Portland’s Old Port. It opened in 1990 as Bagel Works before it changed its name in 2002. The original shop in this regional chain opened in Manchester, Vermont, in 1988, and there are 11 locations around New England, though just the one in Maine. Gone are the ’90s-era banana-walnut bagels and cold pizza cream cheese, but The Works Cafe is still a reliable place to grab a salt, multigrain or cinnamon raisin bagel, among others. The menu also has bowls, sandwiches and smoothies.

WHEN: 6 a.m. to 7 p.m. daily WHERE: 15 Temple St., Portland. workscafe.com

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Global / English

• News Release
• Sustainability
• Japanese Version

Progress Report on Field Testing of Collecting Plastic Containers for Personal and Home Care Products Using a Local Government Collection Route

Aiming to Reduce Costs and Secure Sufficient Material to Recycle

From April 2023 to March 2024, Kao Corporation worked with general recycling business Nakadai Co. Ltd. to conduct field testing for recycling plastic packaging used for personal and home care products in the Japanese city of Satsumasendai, Kagoshima Prefecture. The one-year program, targeting approximately 1,300 households in the city, collected the packaging using the city’s existing recycling route. Recycling of PET plastic beverage bottles via local government routes for recyclables is already well established, but this field-testing scheme for personal and home care product plastic containers is the first of its kind * . Several similar programs now in effect aim to find answers to the issues experienced in field testing of obtaining sufficient quantities of materials to recycle and reducing the cost of collection to set up a sustainable collection system. Field testing in Satsumasendai is being conducted as part of the Circular Park Kyushu project for a sustainable future and has been incorporated into the city’s SDGs Innovation Trial Support Project. Results of field testing and prospects for the future are described below.

• * According to Kao data as of April 2023.
• News Release from April 2023 Field Testing of a New Collection Scheme in Japan Using Local Government Collection Route to Achieve Horizontal Recycling of Plastic Containers for Personal and Home Care Products

Used plastic containers left in a collection box (left) are stored at a city-owned collection point (right), from where Nakadai collects them once a week for quantity and quality analysis

Description of the Field Testing

Satsumasendai City currently collects recyclables (washed and dried plastic containers for personal and home care products, food packaging and colored food trays) once or twice a month. To facilitate participation, all plastic packaging for personal and home care products, with the exception of tubes, is collected and can be left at local collection points where consumers already drop off other recyclables.

Items Evaluated and Results Obtained

• Ensuring a stable, sufficient supply of containers as a source of materials A total of 715kg of plastic containers was collected from 1,300 households.
• Ensuring quality of recyclables for re-use Only 3% of the total packaging collected was deemed ineligible, and around 90% was high-quality material that had been washed and dried. It is expected that 98% of the material collected will be of acceptable quality suitable for recycling.
• Reducing collection costs to make the scheme sustainable This field-testing scheme has been incorporated into Satsumasendai City’s SDGs Innovation Trial Support Project, which is providing support in the form of coordination with personnel and making available more collection points. Collection costs are shouldered by Kao and Nakadai.

Participants’ Comments

To identify issues with the collection scheme during the field-testing period and gain insights into what could increase motivation to take part, participants were asked to reply to a questionnaire. While respondents agreed that the scheme was valuable in terms of reducing the burden on the environment and making good use of resources, many of them found the requirement to sort, wash, dry and take used packaging to a collection point burdensome. In particular, since the packaging was only collected once every two weeks, respondents brought up the issue of needing to store the containers at home until collection time or felt that it was more convenient to be able to drop them off at supermarkets, etc. any time, pointing to the need for improvement in this area.

Looking to the Future

With these field-testing results in mind, Kao and Circular Park Kyushu, working together with Satsumasendai City, will implement a new scheme for one year, from April 2024 to March 2025, reflecting the insights gained from the questionnaire. Under the new scheme, the plan is to use supermarkets in Satsumasendai as collection points for used packaging. Analysis work and other tasks, conducted so far by Nakadai, will be taken over by Circular Park Kyushu in conjunction with the start of operations by Circular Park Kyushu Co., Ltd. in Satsumasendai. Collection frequency, previously twice a month, will be greatly expanded, which is expected to increase the volume of used containers collected. Collection costs within the scheme as a whole will continue to be studied by the parties involved. In April 2019, the Kao Group established the Kirei Lifestyle Plan, an ESG strategy. Since 2021, the Kao Group has been promoting the Kao Group Mid-term Plan with its vision of “protecting future lives” and “sustainability as the only path.” This field testing for collecting plastic containers addresses one of the Kirei Lifestyle Plan’s leadership actions of achieving “zero waste.” Through this field testing, Kao will continue to examine recycling schemes to expand self-directed participation by stakeholders in each step of the recycling process, from sorting and collection to transport and recycling. The company aims to gain the understanding and support of consumers in particular as active participants in resource circularity, from product selection and use to sorting, collection and recycling of packaging. The Kao Group will continue to integrate its ESG strategy into its management practices, develop its business, provide better products and services for consumers and society, and work toward its purpose, “to realize a Kirei world in which all life lives in harmony.”

• * This news release is a translation of a Japanese-language news release dated April 11, 2024.

About the Kirei Lifestyle Plan

Over the past 130 years, Kao has worked to improve people’s lives and help them realize more sustainable lifestyles—a Kirei Lifestyle. The Japanese word ‘kirei’ describes something that is clean, well-ordered and beautiful, all at the same time. The Kao Group established its ESG strategy, the Kirei Lifestyle Plan in April 2019, which is designed to deliver the vision of a gentler and more sustainable way of living. By 2030, Kao aims to empower at least 1 billion people, to enjoy more beautiful lives and have 100% of its products leave a full lifecycle environmental footprint that science says our natural world can safely absorb. Please visit the Kao sustainability website for more information.

Kao creates high-value-added products and services that provide care and enrichment for the life of all people and the planet. Through its portfolio of over 20 leading brands such as Attack , Bioré , Goldwell , Jergens , John Frieda , Kanebo , Laurier , Merries, and Molton Brown , Kao is part of the everyday lives of people in Asia, Oceania, North America, and Europe. Combined with its chemical business, which contributes to a wide range of industries, Kao generates about 1,530 billion yen in annual sales. Kao employs about 34,300 people worldwide and has 137 years of history in innovation. Please visit the Kao Group website for updated information.

Media inquiries should be directed to:

Public Relations Kao Corporation

• [email protected]

Related Information

Announcing a Roadmap for Reaching Plastic Packaging Net Zero Waste by 2040 and Negative Waste by 2050

Kao launches new ESG Strategy “Kirei Lifestyle Plan” to support consumer lifestyle changes

Kao’s New Challenges for the Future: Accelerating Purposeful Business Commitment with ESG

Kao sustainability website

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