business plan for pure water company

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Water Purification and Bottling Business Plan Template

MAR.14, 2022

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:

5.2.1 Hotels

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

5.2.2 Restaurants 

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

5.2.3 Event Planners

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

5.2.4 Retailers

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

5.3 Business Target

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

5.4 Product Pricing

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

Marketing Strategy of water purification and bottling business

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

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

6.1 Competitive Analysis

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

6.2 Sales Strategy

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

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan of water purification and bottling business

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

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

7.1 Company Staff

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

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

7.2 Average Salary of Employees

Financial plan of water purification and bottling business.

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

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

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

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

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

• Is water bottling a profitable business?

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

• How do I start a water purification business?

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

• Is packaged drinking water business profitable?

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

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

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

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

Download Water Purification and Bottling Business Plan Template in pdf

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Water Purification Business Plan

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

For a simplified explanation of how deionization purifies water please see Section 3.5 (Technology).

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.

Based on a recent quotation received by US Filter for a typical portable DI exchange set-up for a 5-gallon per minute customer, the costs come to $590 for a total of 14.4 cu ft of regenerated resin. This amounts to $41 per cubic foot. A sales level of $25 million would translate into 610,000 cubic feet. Assuming that US Filter has as much as 90% of the market, 100% of the market for portable DI exchange in the Northern California states would total approximately 670,000 cu ft annually.

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

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

Hospital Dialysis Units and Stand alone Clinics:

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

Labs and pharmaceutical Manufacturers:

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

Electronic Manufacturers:

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

Machine Tools and Parts:

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

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

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

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

4.2 Target Market Segment Strategy

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

4.2.1 Market Trends

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

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

4.2.2 Market Needs

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

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

4.2.3 Market Growth

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

4.3 Service Business Analysis

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

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

4.3.1 Competition and Buying Patterns

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

4.3.2 Main Competitors

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

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

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

4.3.3 Business Participants

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

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

Strategy and Implementation Summary

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

5.1 Value Proposition

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

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

5.2 Competitive Edge

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

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

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

5.3 Marketing Strategy

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

5.3.1 Distribution Strategy

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

5.3.2 Positioning Statement

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

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

5.3.3 Pricing Strategy

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

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

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

5.3.4 Promotion Strategy

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

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

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

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

5.4 Sales Strategy

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

5.4.1 Sales Forecast

Sales Projections:

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

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

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

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

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

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

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

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

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

Variable Unit Costs:

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

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

Cost of replacing small amounts of lost resin.

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

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

Summary of Anion servicing costs:

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

Total for anion servicing: $10.74

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

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

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

Summary of Cation servicing costs:

• Resin replacement: $0.60.

Total: $8.78 for cation servicing.

Costs of servicing one cubic foot of mixed bed:

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

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

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

Tank Rental Income:

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

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

Tank Sales:

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

5.5 Strategic Alliances

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

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

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

6.1 Management Team

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

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

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

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

6.2 Personnel Plan

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

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

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

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

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

Financial Plan investor-ready personnel plan .">

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

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

7.1 Important Assumptions

Tax rate reflects the present sliding scale:

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

Inventory Turnover:

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

7.2 Break-even Analysis

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

7.3 Projected Profit and Loss

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

7.4 Projected Cash Flow

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

7.5 Projected Balance Sheet

The projected balance sheet for H20 Industries is presented below.

7.6 Business Ratios

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

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Bottled Water Business Plan Template

Written by Dave Lavinsky

Bottled Water Business Plan

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

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

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

Why You Need a Business Plan

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

Sources of Funding for Bottled Water

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

Finish Your Business Plan Today!

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

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

Executive Summary

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

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

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

Company Analysis

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

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

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

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

Include answers to question such as:

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

Industry Analysis

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

While this may seem unnecessary, it serves multiple purposes.

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

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

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

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

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

Customer Analysis

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

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

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

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

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

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Competitive Analysis

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

Direct competitors are other bottled water production companies. 

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

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

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

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

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

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

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

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

Marketing Plan

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

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

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

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

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

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

Operations Plan

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

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

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

Management Team

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

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

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

Financial Plan

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

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

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

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

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

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

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

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

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

Bottled Water Business Plan FAQs

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

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

Where Can I Download a Bottled Water Business Plan PDF?

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

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

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

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Bottled Water Business Plan

Free Business Plan Template

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• 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 Company Business Plan Template

Written by Dave Lavinsky

Bottled Water Business Plan

You’ve come to the right place to create your Bottled Water business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Bottled Water businesses.

Below is a template to help you create each section of your Bottled Water business plan.

Executive Summary

Business overview.

ClearRiver Bottled Water Company is a startup bottled water company located in Knoxville, Tennessee. The company is founded by Eileen Dursten, a local landowner with a series of fresh waterfalls and streams located on her thirty-acre property just outside the city of Knoxville. Eileen has been studying the concept of providing bottled water from an acceptable source of freshwater for some years. She recently had the water in three streams on her property tested for bacteria and parasitic evidence, and received a report that the water was highly-potable and acceptable for bottling. With this information, she’s decided to move forward to build the necessary infrastructure and office area to start her bottled water business.

ClearRiver Bottled Water Company will provide a unique, fresh and local source of water within each bottle, made especially for the communities within the Knoxville area. The brand name will become synonymous with “clean, crisp notes of the mountains” and it will be a distinctive product for consumers to purchase. ClearRiver Bottled Water Company will be the ultimate choice in Knoxville for fresh bottled water, while also offering the best pricing for local water in Knoxville.

Product Offering

The following are the products that ClearRiver Bottled Water Company will provide:

• Bottled water in consumer-sized containers: 12 ounce, 16 ounce and 24 ounce.
• Bottled water in 5-gallon and 7-gallon drum sizes to fit water dispensing machines.
• Flavored water (watermelon, peach, apple, lemon, and lime) in 16 ounce bottles.
• Carbonated water in 12 ounce, 16 ounce and 24 ounce sizes.

Customer Focus

ClearRiver Bottled Water Company will target all individuals within the greater Knoxville area and surrounding communities. In addition, they will also target companies who use water dispensing systems. They will also target party planners and event coordinators who will want large quantities of specialty water or custom-made belly bands on the bottles for weddings, anniversaries, etc. ClearRiver Bottled Water Company is committed to serving every customer in the best way possible, meeting requests for customized bottles or simply one bottle of water with courtesy.

Management Team

RiverClear Bottled Water Company will be owned and operated by Eileen Dursten, who will take the role of President. She has recruited John Matheson, a Senior Engineer, from the Jacksonville, Florida company, SwampWater, LLC.

John created the SwampWater brand and developed the water treatment and bottling systems to the 6M business it is today. He initiated robotic labeling and packaging in 2017 and has been at the forefront of business trends throughout his entire career of twenty-five years at SwampWater, LLC.

John’s role will be Senior Engineer and Vice President of the company. He is eager to be back in the Knoxville area, where his family resides, and is also eager to create another success with RiverClear Bottled Water.

Success Factors

ClearRiver Bottled Water Company will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified team at ClearRiver Bottled Water Company.
• Faultless system for treating and clarifying the pure local water of Knoxville prior to bottling.
• Unique flavoring and/or carbonation processes added to the product line that will appeal to all ages.
• Unique aspect of fresh water from the immediate area, as a “taste of home” product.
• ClearRiver Bottled Water Company will offer the best pricing in Knoxville for bottled water in comparison to other offerings. The customer, no matter whether a small concern or a large business, will receive modest pricing for superior products.

Financial Highlights

ClearRiver Bottled Water Company is seeking $200,000 in debt financing to launch its ClearRiver Bottled Water Company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:

• Office space build-out: $20,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph outlines the financial projections for ClearRiver Bottled Water Company.

Company Overview

Who is clearriver bottled water company.

ClearRiver Bottled Water Company is a newly established full-service water bottling company located in Knoxville, Tennessee. ClearRiver Bottled Water Company will be the most reliable, cost-effective, and efficient choice for bottled water in the city of Knoxville and the surrounding communities. ClearRiver Bottled Water Company will provide a comprehensive menu of pure local water, flavored waters, and carbonated water products for any customer to utilize. Their full-service approach includes a free water-tasting event in their bottling facility for those who would like to tour the bottling plant.

  Eileen Dursten and John Matheson will be able to provide a variety of bottled water for the residents and visitors of Knoxville. The team of professionals are highly qualified and experienced in water purification, bottling and marketing. ClearRiver Bottled Water Company is the perfect solution for those customers seeking the crisp, clear water that comes from natural streams within their local area. The best customer service will accompany that water, ensuring a seamless experience for all customers.

ClearRiver Bottled Water Company History

Since incorporation, ClearRiver Bottled Water Company has achieved the following milestones:

• Registered ClearRiver Bottled Water Company, LLC to transact business in the state of Tennessee.
• Has a contract in place at one of the office buildings, where Eileen Dursten will manage the staff within the 10,000 square foot office space.
• Reached out to numerous contacts to include RiverClear Bottled Water at corporate and private party events, in addition to distribution at grocery stores and convenience shops throughout the regional area.
• Began recruiting a staff of four employees for the bottling plant and 2 office personnel to handle filing, scheduling and mitigating errors.

ClearRiver Bottled Water Company Services

The following will be the services ClearRiver Bottled Water Company will provide:

Industry Analysis

• The bottled water industry is expected to grow over the next five years to over $12 billion in 2030.
• The growth will be driven by consumer demand for clean, notably pure and reliable water sources.
• The growth will be driven by the need for safe water in areas where unsafe water is often consumed, leading to illnesses.
• The growth will be driven by the demand of consumers seeking flavored and carbonated waters in lieu of sugary sodas and fruit juices.
• Costs will likely be reduced as prices are lowered for bottling processes through the use of robotics and other time-and-space saving bottling techniques.

Customer Analysis

Demographic profile of target market.

ClearRiver Bottled Water Company will target individuals, companies, event planners, and party coordinators in Knoxville, Tennessee. They will target associations and city and state governmental entities who will want products that originate in the city or state.

Customer Segmentation

ClearRiver Bottled Water Company will primarily target the following customer profiles:

• They will target all individuals within the greater Knoxville area and surrounding communities.
• They will target companies who use water dispensing systems.
• They will target party planners and event coordinators who will want large quantities of specialty water or custom-made belly bands on the bottles for weddings, anniversaries, etc.
• They will target every customer, whether a small shop or a large enterprise and serve every customer with courtesy.

Competitive Analysis

Direct and indirect competitors.

ClearRiver Bottled Water Company will face competition from other companies with similar business profiles. A description of each competitor company is below.

Crystal Water Company

The Crystal Water Company, a direct competitor, is owned by a conglomerate, S & H Products, located in Dallas, Texas. Crystal Water is produced in Texas, bottled, and shipped to national distribution centers for delivery to individual chain markets, such as Walmart, Target, Safeway, and other companies that sell bottled water. Distribution is approximately 11 million bottles of water shipped monthly. The water is labeled as “pure” and carries no flavor or carbonation.

The S & H Products Company is owned and operated by the Stewart and Hart Family Trust, which has been in existence for over 75 years, selling and bottled water from a water purification system located on the family ranch.

Naturally Sweet Sparkling Water Company

The Naturally Sweet Sparkling Water Company is a direct competitor, in that the company bottles and ships water throughout Tennessee and surrounding areas. The water is carbonated, sweetened with a sugar product, and flavored artificially. No claims are made of “pure” or “local” water being used in the making of the bottled waters.

The Naturally Sweet Sparkling Water Company is owned by Hugh Grover, a businessman who started a grocery outlet in 1990 and saw the opportunity to move into bottled sparkling water when parents began to complain that their children were drinking too much soda. Hugh played with water flavors and carbonation levels until he found the perfect fit, then brought in a bottling company to replicate his efforts. His company targets individuals, companies, and private party planners across the state of Tennessee.

Grover’s Back Road Water

Grover’s Back Road Water was started in Tennessee in 1973 by Arnie Grover, a farmer who held thirty acres of prime dark dirt and planted it all in sweet corn and tobacco. Arnie saw the potential to add products to his farm sales; he developed an earthy water to replicate the very dark water of the farming communities in the Tennessee areas. Arnie targets young adults and older adults who favor unusual tastes and water that is reminiscent of old farmhouse water systems. Grover’s Back Road Water is found in bars, coffee shops, restaurants, and convenience stores within the outlying communities of Knoxville and is sold in single 16-ounce bottle sizes only. It is an “acquired taste” and consumers are often split on whether or not the earthy-flavored water is exceptional or not. The company has developed plans to increase production and introduce new flavors of water, but has not done so as yet.

Competitive Advantage

ClearRiver Bottled Water Company will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

ClearRiver Bottled Water Company will offer the unique value proposition to its clientele:

• Highly-qualified team of skilled employees who are able to provide a comprehensive menu of bottled waters, including flavored waters and carbonated waters.
• Fresh, pure water from local streams that is purified, filtered and bottled under the best conditions.
• Packaged and presented to appeal to all consumers.
• Pricing that is modest and lower than national brands of water.
• A “made at home” feel and look to the bottled water.

Promotions Strategy

The promotions strategy for ClearRiver Bottled Water Company is as follows:

Social Media Marketing

ClearRiver Bottled Water Company will use social media contacts provided by friends, family and local contacts to assist in sharing news about the launch of ClearRiver Bottled Water Company. The announcements will include free “water-tasting” parties at local malls and discounts on bottled water when the ClearRiver Bottled Water Truck is parked in the central area of Knoxville and offering giveaway prizes.

Professional Associations and Networking

ClearRiver Bottled Water Company will join associations and community groups to network and build relationships with area companies in Knoxville. Both Eileen Dursten and John Matheson will join groups and work to secure contracts for events or large-quantity orders.

Print Advertising

One week prior to the launch of ClearRiver Bottled Water Company, every home in Knoxville will receive a direct mail offer, including a discount on bottled water and an invitation to attend a free tasting in the Knoxville city square. Prizes will be distributed at that event to celebrate the launch.

Website/SEO Marketing

ClearRiver Bottled Water Company will utilize a website that is well-organized, informative, and complete. It will list all the services that ClearRiver Bottled Water Company is able to provide. The website will also list the contact information and the places where the bottled water can be purchased. SEO marketing tactics will be utilized so that anytime someone types in the Google or Bing search engine “bottled water company” or “bottled water near me”, ClearRiver Bottled Water Company will be listed at the top of the search results.

The pricing of ClearRiver Bottled Water Company will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.

Operations Plan

The following will be the operations plan for ClearRiver Bottled Water Company. Operation Functions:

• RiverClear Bottled Water Company is owned by Eileen Dursten, who will take the role of President. She will develop relationships with large accounts and work on product development with John Matheson.
• Eileen Dursten has recruited John Matheson, a Senior Engineer, from the Jacksonville, Florida company, SwampWater, LLC. John’s role will be Senior Engineer and Vice President of the company. John will oversee all water purification and treatment processes in addition to developing new products and managing staff members.
• Rocky Anderson will be the Operations & Maintenance Director for the facilities and the office. He will lead a team of two staff members who will clean, prepare, assist in filtration and other duties as assigned.
• Pamela Nygard will be the Office Manager, overseeing systems, scheduling and handling staff matters.

Milestones:

ClearRiver Bottled Water Company will have the following milestones completed in the next six months.

• 5/1/202X – Finalize contract to lease office space
• 5/15/202X – Finalize personnel and staff employment contracts for the ClearRiver Bottled Water Company
• 6/1/202X – Finalize distributor contracts for ClearRiver Bottled Water Company
• 6/15/202X – Begin networking at industry events
• – Begin moving into ClearRiver Bottled Water Company office
• – ClearRiver Bottled Water Company opens its office for business

ClearRiver Bottled Water Company will be owned and operated by Eileen Dursten. She recruited John Matheson, a former Senior Engineer, from the Jacksonville, Florida company, SwampWater, LLC.

Eileen Dursten, a local landowner with a series of fresh waterfalls and streams located on her thirty-acre property just outside the city of Knoxville. Eileen has been studying the concept of providing bottled water from an acceptable source of freshwater for some years. She recently had the water in three streams on her property tested for bacteria and parasitic evidence, and received a report that the water was highly-potable and acceptable for bottling. With this information, she’s decided to move forward to build the necessary infrastructure and office area to start her bottled water business.

John’s role will be Senior Engineer and Vice President of the company. John will oversee all water purification and treatment processes in addition to developing new products and managing staff members.

Financial Plan

Key revenue & costs.

The revenue drivers for ClearRiver Bottled Water Company are the fees they will charge to the customers for their products.

The cost drivers will be the overhead costs required in order to staff the company office. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.

Funding Requirements and Use of Funds

ClearRiver Bottled Water Company is seeking $200,000 in debt financing to launch its bottled water company..The funding will be dedicated towards securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Customers Per Month: 600 (30 corporate; 570 single-unit)
• Average Fees per Month: $27,000
• Office Lease per Year: $100,000

Financial Projections

Income statement, balance sheet, cash flow statement, bottled water business plan faqs, what is a bottled water company business plan.

A bottled water company business plan is a plan to start and/or grow your bottled water business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Bottled Water Company business plan using our Bottled Water Company Business Plan Template here .

What are the Main Types of Bottled Water Companies? 

There are a number of different kinds of bottled water companies , some examples include: Purified or Distilled bottled water, Sparkling bottled water, and Alkaline bottled waters.

How Do You Get Funding for Your Bottled Water Company?

Bottled Water companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Bottled Water Company?

Starting a bottled water company can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Bottled Water Business Plan - The first step in starting a business is to create a detailed bottled water business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your bottled water business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bottled water business is in compliance with local laws.

3. Register Your Bottled Water Business - Once you have chosen a legal structure, the next step is to register your bottled water business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your bottled water business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Bottled Water Equipment & Supplies - In order to start your bottled water business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bottled water business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful bottled water company:

• How to Start a Bottled Water Company

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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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!

Here are The Steps to Start a Bottled Water Business

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

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

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

Let’s get started with the steps.

Steps to Starting a Bottled Water Business

Below are the steps to starting a bottled water business.

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

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

1.  An Overview of What You’re Getting Into

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

Discovering Your Passion

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

Passion: The Fuel for Success

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

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

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

Unveiling Your Entrepreneurial Zeal

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

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

The Decisive Question

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

Exploring Alternative Paths

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

The Heart of the Matter

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

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

2. Gaining an Overview of Owning a Bottled Water Business

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

Understanding the Bottled Water Business

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

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

Keys to Success in a Bottled Water Business

Establishing a Loyal Customer Base

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

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

Effective Staff Management

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

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

Managing Cash Flow

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

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

Cost Management

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

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

Adaptability to Change

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

Revenue Fluctuations

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

Proper planning and strategies can help manage these fluctuations.

Competitor Management

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

Meeting Customer Expectations

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

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

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

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

b.) Bottled Water Business Models

Types of Bottled Water Business Setups and Their Business Models

Local Bottling Operations

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

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

Large-Scale Bottling Operations

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

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

Private Label Bottling

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

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

Office and Home Delivery Services

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

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

Franchise Bottled Water Business

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

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

Custom Bottle Design and Packaging

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

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

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

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

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

c.) Making Your Bottled Water Business stand out

Unique Branding

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

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

High-Quality Product

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

Exceptional Customer Service

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

Sustainable Practices

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

Community Involvement

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

d.) Add on Ideas for a bottled water Business

Complementary Products

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

Subscription Service

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

Custom Labeling

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

Bulk Discount Offers

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

e.) Questions for Your Bottled Water Business

Bottled Water Business Model

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

Workforce Management

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

Management Considerations

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

Partnerships and Investments

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

Business Location

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

Operating Format

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

Future Growth

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

Regulatory Compliance

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

Market Analysis

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

Financial Planning

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

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

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

The Benefits of Running a Bottled Water Business

Independence

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

Creative Freedom

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

Potential for High Revenue

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

Flexible Work Hours

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

Control Over Working Environment

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

Contribution to Health and Wellbeing

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

The Challenges of Running a Bottled Water Business

Responsibility for Problems

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

Irregular Income

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

Challenging Start-Up Phase

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

Customer Acquisition and Retention

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

Extra Working Hours

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

Pressure to Succeed

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

Significant Initial Investment

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

Constant Change

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

Business Risks

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

Quality Control Challenges

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

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

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

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

3. Research

Bottled Water Business Research

Laying the Foundation: Informed Decision-Making

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

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

Seeking Wisdom: Learning from the Experts

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

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

Unveiling Priceless Wisdom: An Opportunity for Growth

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

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

Unlocking the Path: A Guide to Reaching Out

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

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

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

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

Target Audience

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

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

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

Target Market Ideas:

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

For more, see How To Understand Your Target Market.

4. Looking at Financials:

Startup Costs:

Accurate Estimation for a Smooth Launch

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

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

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

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

Comprehensive List and Research

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

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

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

Sales and Profit:

Key Factors for Success

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

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

Beyond Sales: Consideration of Expenses

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

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

Achieving Financial Success

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

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

For More, See Estimating Profitability and Revenue

Sample Financial Lists As a Starting Point

Sample Financial Lists for Your Bottled Water Business

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

Sample Startup Costs for a Bottled Water Business

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

Total Estimated Startup Costs: $84,500

Sample Monthly Expenses for a Bottled Water Business

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

Total Estimated Monthly Expenses: $11,000

Sample Sales and Profit Breakdown

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

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

Estimated Monthly Profit: $9,000

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

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

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

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

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

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

5. Choosing The Right Business Location

The Significance of Location for a Bottled Water Business

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

Demand and Competition Considerations

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

Balancing Demand, Competition, and Affordability

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

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

Exploring Different Options

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

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

Thorough Research and Careful Evaluation

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

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

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

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

6. Create Your Mission Statement

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

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

Examples of Mission Statements for a Bottled Water Business:

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

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

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

For more, see, How To Create a Mission Statement

7. Creating A Unique Selling Proposition (USP)

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

Examples of Unique Selling Propositions for a Bottled Water Business:

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

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

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

8. Choose a Business Name

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

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

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

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

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

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

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

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

For more, see the following articles:

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

9. Register Your Company

Ensuring Your Bottled Water Business is Legal

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

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

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

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

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

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

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

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

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

Registration:

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

Business Structures:

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

10. Create Your Corporate Identity

Corporate Identity for a Bottled Water Business

Establishing Your Brand’s Visual Presence

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

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

Consistency and Professionalism

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

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

Logo Design: Capturing Your Brand Essence

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

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

Branded Materials: Showcasing Your Unique Qualities

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

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

Impressing Customers: A Commitment to Excellence

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

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

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

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

11. Writing a Business Plan

The Importance of a Business Plan for a Bottled Water Business

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

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

Crafting a Vision for Success

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

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

Clarity and Guidance

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

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

Choosing the Right Approach

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

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

Adapting and Optimizing

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

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

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

A Fictitious Business Plan Example for a Bottled Water

PureSprings Bottled Water Business Plan

Executive Summary

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

Company Description

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

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

Organization and Management

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

Product Line and Services

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

Marketing and Sales Strategy

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

Funding Request

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

Financial Projections

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

Exit Strategy

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

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

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

12. Banking Considerations

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

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

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

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

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

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

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

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

13. Getting the Funds for Your Operation

Getting Funding for Your Bottled Water Business

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

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

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

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

See, Getting a Small Business Loan for more.

14. Software Setup

Software Considerations for Your Bottled Water Business

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

Here are some key points to consider:

1. Research Software Options

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

2. Demo, Reviews, and Forums

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

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

3. Expense Tracking and Financial Document Preparation

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

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

Software Options to Consider for Your Bottled Water Business:

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

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

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

Software Considerations for a Bottled Water Business.

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

15. Get The Right Business Insurance

Insurance Considerations for Your Bottled Water Business

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

1. Comprehensive Coverage

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

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

2. Professional Liability Insurance

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

3. Home-based Business Insurance

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

4. Consult an Insurance Broker

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

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

Concerns When Seeking Insurance for a Bottled Water Business:

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

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

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

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

16. Select Suppliers

Selecting Suppliers for Your Bottled Water Business

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

1. Reliability and Trustworthiness

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

2. Competitive Pricing

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

3. Stock Availability

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

4. Respectful and Mutually Beneficial Relationships

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

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

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

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

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

For More See, How To Choose a Supplier.

17. Physical Setup

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

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

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

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

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

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

Office Setup:

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

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

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

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

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

18. Creating a Website

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

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

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

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

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

19. Create an External Support Team

Building an External Support Team for Your Bottled Water Business

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

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

Engaging Professionals for Specific Needs

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

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

Building Professional Relationships

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

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

The Benefits of a Strong Support Team

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

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

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

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

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

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

20. Hiring Employees

Hiring Employees for Your Bottled Water Business

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

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

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

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

List of Job Positions for a Growing Bottled Water Business:

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

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

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

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

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

Points To Consider

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

Equipment for a Bottled Water Business

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

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

Always do your research and seek professional advice if necessary.

Marketing Considerations

Attracting Customers for Your Bottled Water Business

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

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

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

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

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

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

See our article How To Get Customers Through the Door

Building Business Partnerships for Your Bottled Water Business

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

Consider approaching the following businesses to explore collaboration opportunities:

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

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

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

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

Assessing Your Skills for Running a Bottled Water Business

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

Essential Skills for a Bottled Water Business Owner:

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

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

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

Expert Tips

Benefiting from Expert Tips to Enhance Your Skill Set

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

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

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

Valuable Resources for Your Bottled Water Business

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

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

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

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

Trends and Statistics

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

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

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

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

Bottled Water Associations

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

Write a neutral 40-word overview of

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

See the search results related to bottled water associations.

Top Bottled Water Business

Drawing Inspiration from Established Bottled Water Businesses

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

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

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

The Future of the Bottled Water Industry

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

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

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

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

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

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

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

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

See the latest bottled water prices.

Bottled Water Businesses for Sale

Considering the Purchase of an Established Bottled Water Business

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

The benefits of acquiring an established business include:

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

However, there are also potential disadvantages to consider:

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

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

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

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

Franchise Opportunities Related to a Bottled Water

Considering the Purchase of a Bottled Water Franchise

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

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

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

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

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

Knowledge Is Power if You Use It!

Harnessing the Power of Knowledge for Your Bottled Water Business

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

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

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

A Day in the Life

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

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

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

Bottled Water Business Owners Interviews

Gaining Valuable Insights from Interviews with Bottled Water Industry Business Owners

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

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

Bottled Water Publications

Staying Informed with Publications in the Bottled Water Industry

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

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

See the search results for Bottled Water publications.

Bottled Water Forums

Engaging in Bottled Water Forums for Industry Insights

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

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

See the latest search results related to Bottled Water forums.

Enhancing Skills and Industry Knowledge through Bottled Water Production Courses

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

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

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

Bottled Water Blogs

Gaining Insights and Industry Updates through Bottled Water Blogs

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

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

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

Staying Current with Bottled Water Industry News

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

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

Bottled Water News

Gaining Valuable Tips and Insights from Bottled Water Industry Videos

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

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

See the links to YouTube Videos Below.

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

Starting a Water Refilling Station Business

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

Privacy Overview

How to Start a Profitable Bottled Water Business [11 Steps]

By Nick Cotter Updated Feb 05, 2024

Business Steps:

1. perform market analysis., 2. draft a bottled water business plan., 3. develop a bottled water brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for bottled water., 6. open a business bank account and secure funding as needed., 7. set pricing for bottled water services., 8. acquire bottled water equipment and supplies., 9. obtain business insurance for bottled water, if required., 10. begin marketing your bottled water services., 11. expand your bottled water business..

Starting a bottled water business requires a thorough understanding of the market to identify your potential customers, competitors, and overall demand. A solid market analysis will guide your business strategy and help you carve out a niche in the competitive landscape. Consider these key points while performing your market analysis:

• Examine the current market size for bottled water in your target region and project its growth rate.
• Analyze the key players in the bottled water industry, including large corporations and small local brands, to understand their market share, products, and pricing strategies.
• Identify your target demographic by considering factors like age, income level, lifestyle, and buying habits, and understand what drives their purchasing decisions.
• Research consumer trends and preferences, such as the demand for flavored, mineral, spring, or purified water, and the growing interest in eco-friendly packaging.
• Assess the legal and regulatory environment, including health standards, labeling requirements, and environmental regulations that may affect your business operations.
• Explore the distribution channels used by existing bottled water companies, such as retail stores, online platforms, and direct delivery services.
• Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to determine your potential competitive advantage in the market.

Are bottled water businesses profitable?

Yes, bottled water businesses can be highly profitable. Many bottled water companies have seen significant increases in sales and profits in recent years as more people become aware of the health benefits of drinking quality water. Additionally, bottled water businesses may benefit from reduced operating costs due to the lack of large-scale infrastructure and production investments required for other beverage types.

Starting a bottled water business requires a well-thought-out plan to navigate the competitive landscape and regulatory requirements. A comprehensive business plan is essential for securing funding, understanding your market, and mapping out strategies for growth. Here are the key elements to include in your bottled water business plan:

• Executive Summary: Briefly summarize your business concept, the problem you're solving, your target market, and financial projections.
• Company Description: Detail your business's mission, goals, and the unique factors that will make your bottled water brand stand out.
• Market Analysis: Research and describe your target audience, industry trends, and competitive landscape.
• Organizational Structure: Outline your company's management team, roles, and experiences that contribute to the business's success.
• Product Line: Describe the types of bottled water you'll offer, including any unique features or benefits.
• Marketing and Sales Strategy: Explain how you plan to attract and retain customers, including branding, pricing, and sales channels.
• Operational Plan: Detail the production process, equipment needed, supply chain logistics, and facility requirements.
• Financial Projections: Offer realistic financial forecasts including start-up costs, profit and loss, cash flow, and balance sheet projections.

How does a bottled water business make money?

Bottled water businesses typically make money by selling water in bottles to customers. This type of business could target a variety of people such as athletes and gym-goers who need to hydrate throughout the day, busy professionals who don't have access to clean drinking water, or people going on hikes in the wilderness. By targeting a specific demographic, bottled water businesses can make money by selling their product to the right consumers. As an example, a 11 Steps To Starting a Successful Spice Business could target health-conscious individuals looking for natural ingredients and flavors to enhance their meals.

Developing a bottled water brand is crucial to differentiate your product in a competitive market. Your brand should resonate with your target audience and encapsulate your company's values and unique selling proposition. Consider the following steps to create a compelling brand identity:

• Define your brand's mission and vision to guide your branding decisions and communicate your company's purpose.
• Research your target market to understand your customers' preferences and create a brand that appeals to them.
• Select a brand name that is memorable, easy to pronounce, and reflects the essence of your product.
• Design a logo and packaging that stand out on shelves and align with your brand's image, ensuring it's also functional and sustainable.
• Create a compelling brand story that connects emotionally with consumers and highlights the purity and source of your water.
• Develop a marketing strategy that leverages social media, collaborations, and influencer partnerships to increase brand awareness.
• Ensure your branding is consistent across all platforms, from your labels and website to your advertising and social media profiles.

How to come up with a name for your bottled water business?

Naming your bottled water business is an important part of establishing your brand in the marketplace. When coming up with a name, you should think of something creative and memorable that reflects the qualities of your product. Consider using words that denote purity, naturalness, and health, such as “Fresh” or “Natural.” Additionally, make sure the name is easy to pronounce and understand, so potential customers don’t have to struggle to remember or pronounce it. Finally, use a name that stands out from the competition so you can be sure to make an impression.

Formalizing your business registration is a critical step in establishing a legitimate bottled water business. This process lays the foundation for your operations, allowing you to conduct business legally, hire employees, and handle financial matters properly. Here's what you need to do:

• Choose a Business Name: Select a unique and memorable name for your bottled water business, ensuring it's not already in use by checking with your local business registry.
• Decide on a Business Structure: Determine whether you'll operate as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Consider legal liability, taxation, and administrative complexity in your decision.
• Register Your Business: File the necessary paperwork with your state's secretary of state office or equivalent. This may include articles of incorporation for corporations or articles of organization for LLCs.
• Obtain an EIN: Apply for an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan to hire employees.
• Register for Taxes: Register with state and federal agencies to handle sales tax, payroll tax, and any other applicable taxes.
• Obtain Necessary Permits and Licenses: Secure all required local, state, and federal permits and licenses, including those specific to water bottling and distribution.
• Register Your Trademarks: Protect your brand and product names by registering trademarks with the United States Patent and Trademark Office (USPTO) if necessary.

Resources to help get you started:

Access vital resources designed for bottled water entrepreneurs featuring market trends, operational best practices, and strategic growth advice:

• Beverage Industry Magazine : Offers insights into beverage market trends, including bottled water, with articles on marketing, production, and distribution. Website .
• IBWA (International Bottled Water Association) : Provides comprehensive industry reports, best practices guides, and regulatory updates for bottled water businesses. Website .
• Mintel Reports : Features detailed market research reports on the bottled water industry, including consumer trends and competitive analysis. Website .
• Beverage Daily Newsletter : Daily updates on the beverage industry, including significant movements within the bottled water sector. Website .
• Euromonitor International : Offers global strategic market analysis, which includes the bottled water industry's growth forecasts, competitive landscapes, and consumer trends. Website .

Starting a bottled water business requires adherence to various regulations to ensure product safety and compliance with local, state, and federal laws. Before beginning operations, it is crucial to acquire the necessary licenses and permits. Here’s a guide to help you navigate this process:

• Research local zoning regulations to ensure your business location is approved for bottled water production.
• Obtain a business license from your city or county government, which is essential for operating legally.
• Apply for a water bottling permit from the state health department, which will require demonstrating that your water meets safety standards.
• Register with the Food and Drug Administration (FDA) as a food facility, since bottled water is regulated as a food product.
• Ensure you have the proper labeling permits that comply with the FDA's requirements for bottled water, including nutritional labeling and claims.
• Check if you need a permit for water rights or water extraction from your local water authority, especially if you source water from a natural spring or well.
• Consider obtaining organic or other special certifications if your bottled water meets specific criteria, which might require additional permits or inspections.

What licenses and permits are needed to run a bottled water business?

In order to start and run a bottled water business, you will need to obtain several licenses and permits. Depending on the state or country your business is located in, some of the necessary licenses and permits may include a general business license, a food handlers license, a manufacturing license, and an occupational health license. In addition, you may need to obtain approval from your local zoning board as well as any other applicable local agencies. Finally, if you plan to sell your products outside of your state or country, you may need to obtain additional licensing and permits from those jurisdictions.

Opening a business bank account is a critical step for managing your finances and legitimizing your bottled water business. Alongside, securing the necessary funding will ensure that you have the financial resources to cover startup costs, production, and marketing. Follow these guidelines to set up your financial foundation:

• Research banks that offer business banking services and compare their fees, services, and customer support to find the best fit for your company’s needs.
• Prepare the required documentation, such as your business registration, EIN (Employer Identification Number), and personal identification, to open a business bank account.
• Consider applying for a business credit card to help track business expenses and build your company's credit history.
• Explore various funding options like small business loans, investors, crowdfunding, or grants specifically designed for startups or the beverage industry.
• Create a detailed business plan that outlines your financial projections and growth strategy to present to potential lenders or investors.
• Understand the terms and conditions of any funding you accept to ensure it aligns with your business goals and financial capabilities.

Setting the right price for your bottled water services is crucial for balancing customer satisfaction and your business's profitability. In determining your pricing strategy, consider factors like production costs, market demand, competition, and perceived value. Follow these guidelines to establish an effective pricing strategy:

• Cost Analysis: Calculate the total cost of producing your bottled water, including sourcing, filtration, bottling, packaging, and distribution, to determine the minimum price per unit.
• Competitive Pricing: Research the prices of competitors and position your product accordingly. You can choose to match, undercut, or exceed these prices based on your brand positioning and target market.
• Value-based Pricing: Consider the unique selling points (USPs) of your bottled water, such as mineral content or eco-friendly packaging, to justify a premium price if applicable.
• Volume Discounts: Offer discounts for bulk purchases to encourage larger orders and attract distributors or retailers.
• Dynamic Pricing: Be prepared to adjust prices in response to market trends, seasonal demand, and promotional activities.

What does it cost to start a bottled water business?

Initiating a bottled water business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $71500 for launching such an business. Please note, not all of these costs may be necessary to start up your bottled water business.

Starting a bottled water business entails ensuring that you have the right equipment and supplies to produce, bottle, and distribute your product efficiently. The following is a list of essential items and considerations to keep in mind when acquiring your bottled water equipment and supplies:

• Water Source: Secure a reliable water source, such as a well or a natural spring, and ensure it meets safety standards.
• Filtration System: Invest in a robust water filtration and purification system to guarantee the quality of your water.
• Bottling Machine: Choose an appropriate bottling machine that can handle your production volume, whether it's automated or manual.
• Washing and Rinsing Equipment: Acquire equipment for washing and rinsing your bottles to maintain hygiene and safety standards.
• Labeling and Packaging Supplies: Obtain labeling machines and materials, as well as packaging equipment to present and protect your product.
• Quality Control Tools: Implement quality control measures with the necessary tools to monitor the consistency and safety of your water.
• Storage Facilities: Ensure you have adequate storage for both raw materials and the finished product, adhering to appropriate conditions.
• Delivery System: Set up a reliable delivery system, which may include acquiring a fleet of delivery vehicles.

List of software, tools and supplies needed to start a bottled water business:

• Bottled Water – approximately $0.50 to $1 per bottle
• Water Filtration System – approximately $1,000 to $3,000
• Water Testing Equipment – approximately $150 to $300
• Manual Bottle Filler – approximately $500 to $750
• Labeling Machine – approximately $500 to $1,000
• Bottles – approximately 50 cents to one dollar each
• Caps and other Sealing Products – approximately 10 cents per item
• Water Delivery Vehicle – Approximately ranging from $15,000 for a used truck to over 30,000 for a new one.
• Packaging and Shipping Supply Costs - Approximately from a few cents per label or envelope up to several dollars for boxes.
• Marketing and Advertising Costs - Approximately varies depending on the type of advertising you choose.

Securing the right business insurance is an essential step in protecting your bottled water business from potential risks and liabilities. It's important to understand the various types of insurance available and to determine which ones are required or recommended for your specific business needs. Below are some guidelines to help you navigate the process:

• General Liability Insurance: This coverage can protect your business from claims involving bodily injuries and property damage resulting from your products or operations.
• Product Liability Insurance: Essential for bottled water businesses, this insurance covers legal fees and damages if your product is found to have caused harm to a consumer.
• Commercial Property Insurance: This protects your business premises, equipment, and inventory in case of fire, theft, or other covered disasters.
• Workers’ Compensation Insurance: If you have employees, most states require you to carry this insurance to cover medical costs and lost wages for work-related injuries or illnesses.
• Commercial Auto Insurance: If your business involves delivery or transportation, this insurance covers vehicles used for business purposes.
• Business Interruption Insurance: In the event of a disaster or unexpected event that disrupts operations, this insurance can help cover lost income.

Consult with an insurance agent who specializes in commercial policies to ensure you have comprehensive coverage tailored to your business needs.

Marketing is a crucial step in the success of your bottled water business, as it helps to create brand awareness and attract customers. A well-planned marketing strategy can set you apart from competitors and build a loyal customer base. Here are some effective strategies to market your bottled water services:

• Develop a Brand Identity: Create a compelling logo, slogan, and brand story that resonate with your target audience and differentiate your product in the market.
• Online Presence: Build a professional website and utilize social media platforms to engage with customers and promote your bottled water.
• Content Marketing: Share informative content about the benefits of your water, hydration tips, and sustainability practices to educate and attract customers.
• Local Partnerships: Partner with local businesses, gyms, and events to showcase your product and gain exposure.
• Advertising: Invest in both online and offline advertising, such as PPC ads, radio spots, and local newspapers to reach a wider audience.
• Customer Referral Programs: Encourage word-of-mouth marketing by offering incentives for customers who refer new clients.
• Product Sampling: Distribute free samples at high traffic locations to let potential customers taste the quality of your water firsthand.

Once your bottled water business is up and running, it's time to think about expansion. Growing your business can involve a variety of strategies from increasing your product line to reaching new markets. Here are some key steps to consider:

• Introduce New Products: Consider adding flavored, sparkling, or mineral-enhanced water options to attract a broader customer base.
• Upgrade Production Capacity: Invest in more advanced bottling and purification equipment to increase output and efficiency.
• Expand Distribution Networks: Partner with more retailers, or explore online sales channels to widen your market reach.
• Pursue Bulk Sales: Target businesses, schools, and event organizers for bulk sales opportunities.
• Engage in Marketing Campaigns: Increase brand awareness through social media, influencer partnerships, and traditional advertising.
• Export Internationally: Research and comply with international trade regulations to start exporting your bottled water.
• Focus on Sustainability: Emphasize eco-friendly packaging and practices to appeal to environmentally conscious consumers.
• Franchise Your Business: If your brand is strong, consider franchising to allow others to open locations under your business model.

Bottled Water Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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

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

Starting a bottled water business is one of the best steps to take. This is especially so because of the level of profitability in the industry. One of the thing that you should look to do before getting your business started is to do some thorough ground work and write a business plan

A Sample Bottled Water Production Business Plan Template

1. industry overview.

Bottled water is one commodity that is consumed in all parts of the world and of course those that are in the business of producing bottled water are known to generate sales year in year out if the business is well – managed. As a matter of fact, economic downturn hardly affects the consumption of bottled water simple because it is a commodity that is as important as the air we breathe in.

Production companies in the bottled water industry basically purify and bottle water into plastic and glass bottles for consumption.

The bottled water are properly capped and labeled accordingly before being sold to the general public. Companies in this industry usually have an assortment of water offerings, such as spring water, mineral water, sparkling water and flavored water in a range of sizes and prizes.

Players in this industry are also involved in the manufacturing of ice manufacturing. It is common to find big corporations who are into production of soft drinks and food and beverages engage in the production of bottled water. Research conducted by IBIS World shows that in the united states of America, the level of concentration in the Bottled Water Production industry is modest, as the top four players are expected to generate 65.5 percent of revenue.

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

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

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

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

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

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

Over and above, the bottled water production industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale servicing a community or you can chose to start on a large scale with several outlets in key cities all around the United States of America.

2. Executive Summary

Sparkles® Bottled Water Production Company is a licensed and standard bottled water production company that will be located in an industrial area in Bay – 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 an agreed terms and conditions that is favorable to us.

The facility has government approval for the kind of business we want to run and it is easily accessible and we are deliberate about that to facilitate easy movement of raw materials (plastics and bottles et al) and finished products (bottled waters).

We are in the bottled water production business to engage in purifying and bottling water, purifying and bottling carbonated water, labeling bottled water products, promoting bottled water brands, production bottled still water, production of bottled flavored water, production of bottled sparkling water and manufacturing ice et al.

We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our bottled water the opportunity to be part of the success story of Sparkles® Bottled Water Production Company.

We are aware that there are several big scale and small scale bottled water production companies scattered all around the United States and Canada whose products can be found in every nooks and crannies of The United States and Canada.

This is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business and also for us to be able offer much more than our competitors will be offering.

We ensured that our facility is easy to locate and we have mapped out plans to develop a wide distribution network for wholesalers all around Bay Orleans – Massachusetts and the United States of America.

Much more than producing healthy, portable and well packaged bottled water, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit purchase any of our bottled water and also to become our loyal customers and ambassadors.

Sparkles® Bottled Water Production Company will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our Depot / Plant. We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large the numbers of our customer base may grow to.

We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.

Sparkles® Bottled Water Production Company is family business that will be owned by Mark Harrison Clay and Family. Mark Harrison who is the Chief Executive Officer of the Company is Graduate of Micro Biology (B.Sc.) and he holds a Master’s Degree in Business Management (MBA).

He has well over 15 years of experience working in related industry as a senior manager prior to starting Sparkles® Bottled Water Production Company. He will be working with a team of professionals to build the business and grow it to enviably height.

3. Our Products and Services

Sparkles® Bottled Water Production Company is going to operate a standard and licensed bottled water production company whose products will not only be sold in Bay Orleans – Massachusetts but also throughout the United States of America.

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

• Purifying and bottling water
• Purifying and bottling carbonated water
• Labeling bottled water products
• Promoting bottled water brands
• Manufacturing ice
• Still water
• Flavored water
• Sparkling water

4. Our Mission and Vision Statement

• Our vision is to establish standard bottled water Production Company whose products will be not only be sold in Bay Orleans – Massachusetts, but also throughout the United States of America and Canada, and in other parts of the world.
• Our mission is to establish a standard and world class bottled water Production Company that in our own capacity will favorably compete with leaders in the industry such as Nestle Foods, The Coca Cola Company, and Pepsi Co et al.
• We want to build a bottled water production business that will be listed amongst the top 20 bottled water brands in the United States of America and Canada

Our Business Structure

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

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

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

• Chief Executive Officer (Owner)

Plant Manager

Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

• Information Technologist
• Accountants/Cashiers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for overseeing the smooth running of the bottled water production plant
• Part of the team that determines the quantity of bottled water that are to be produced
• Map out strategy that will lead to efficiency amongst workers in the plant
• Responsible for training, evaluation and assessment of plant workers
• Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Ensures that the plant meets the expected safety and health standard at all times.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversee the smooth running of the daily office and factory activities.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of bottled water
• Responsible for the purchase of raw materials and packaging materials (bottles, and plastics et al)
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Accountant/Cashier

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

Client Service Executive

• Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the store manager in an effective and timely manner
• Consistently stays abreast of any new information on Sparkles® Bottled Water Production Company products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

Production Workers/Machine Operators:

• Responsible for purifying and bottling water
• Handles purifying and bottling carbonated water
• Handles labeling of bottled water products
• Promotes bottled water brands
• Responsible for the manufacturing of ice
• Responsible for the bottling of still water
• Responsible for the bottling of flavored water
• Responsible for the bottling of sparkling water
• Assists in packaging and loading bottled water into distribution trucks
• Any other duty as assigned by the restaurant manager.

Distribution Truck Drivers

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

6. SWOT Analysis

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

Sparkles® Bottled Water Production Company employed the services of an expert HR and Business Analyst with bias in start – up business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

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

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

So also, the wide varieties of bottled water in terms of flavor, packaging and size et al that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

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

• Opportunities:

The opportunities for bottled water production companies with a wide range of bottled water products are enormous. This is due to the fact that almost all Americans and people from all over the world can afford bottled water and they drink it regularly.

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

We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power.

Another threat that may likely confront us is the arrival of a new bottled water production company in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

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

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

As a matter of fact it is common to find bottled water production companies especially medium scale and small scale bottled water companies specially labeling their bottled water for specific occasions to meet the demand of their clients. For example, a client that is celebrating his or her birthday may strike an agreement with a bottled water company to specially label the bottled water that will be served in the occasion to conform with the occasion.

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

8. Our Target Market

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

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

• Restaurants and Canteens
• Event Planners, Parties and Corporate Functions
• Corporate Executives
• Government Officials
• Business People
• Celebrities
• Military Men and Women
• Sports Men and Women
• Everybody in our target market location

Our Competitive Advantage

A close study of the bottled water production industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with other bottled water production companies in Bay Orleans – Massachusetts and throughout the United States and Canada.

Sparkles® Bottled Water Production Company is launching a standard bottled water brand that will indeed become the preferred choice of residence of Bay Orleans – Massachusetts and every city where our bottled water will be retailed.

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

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

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

9. SALES AND MARKETING STRATEGY

• Sources of Income

Sparkles® Bottled Water Production Company is established with the aim of maximizing profits in the bottled water production industry in both the United States of America and Canada and we are going to go all the way to ensure that we do all it takes to sell a wide range of bottled water products to a wide range of customers.

Sparkles® Bottled Water Production Company will generate income by selling the following products;

10. Sales Forecast

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

We are well positioned to take on the available market in Bay Orleans – Massachusetts and every city where our bottled water will be sold and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

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

Below is the sales projection for Sparkles® Bottled Water Production Company, it is based on the location of our business and other factors as it relates to small scale and medium scale bottled water production company start – ups in the United States;

• First Fiscal Year-: $100,000
• Second Fiscal Year-: $250,000
• Third Fiscal Year-: $750,000

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

• Marketing Strategy and Sales Strategy

Before choosing a location for Sparkles® Bottled Water Production Company and also the kind of distilled drinks to produce, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in our target market locations.

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

We hired experts who have good understanding of the bottled water production industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Bay Orleans – Massachusetts and other cities in the United States of America and Canada.

In other to continue to be in business and grow, we must continue to sell our products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, Sparkles® Bottled Water Production Company will adopt the following sales and marketing approach to sell our distilled alcoholic drinks;

• Introduce our bottled water brand by sending introductory letters to residence, bottled water merchants and other stakeholders in Bay Orleans – Massachusetts and other cities both in the United States of America and Canada
• Open our bottled water production company with a party so as to capture the attention of residence who are our first targets
• Engage in road show in targeted communities from time to time to sell our products
• Advertise our products in community based newspapers, local TV and radio stations
• List our business and products on yellow pages ads  (local directories)
• Leverage on the internet to promote our bottled water brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our bottled water production plant is a standard one with a wide range of bottled water products that can favorably compete with other leading brands, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Sparkles® Bottled Water Production Company.

Sparkles® Bottled Water Production Company has a long term plan of distributing our bottled water in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted in Bay – Orleans, Massachusetts before venturing out.

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

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our bottled water brand
• Install our Bill Boards on strategic locations all around major cities in the United States of America and Canada
• Engage in road show from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
• Ensure that our bottled water is well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.

12. Our Pricing Strategy

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

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various bottled water production brands in the United States of America.

We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our bottled water brands.

• Payment Options

At Sparkles® Bottled Water Production Company, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money
• Payment via check (for wholesale distributors)

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

• The Total Fee for Registering the Business in Massachusetts – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Sparkles® Bottled Water Production Company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• Cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for construction of a standard bottled water production plant – $100,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for Start-up inventory (raw materials, bottles and packaging materials et al) – $80,000
• Storage hardware (bins, rack, shelves, food case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• Cost for water purifying, bottling and packaging equipment – $100,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase of distribution vans – $100,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our opening party – $10,000
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our bottled water production plant in Bay – Orleans, Massachusetts. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.

Generating Funding/Startup Capital for Sparkles® Bottled Water Production Company

Sparkles® Bottled Water Production Company is a family business that is owned and financed by Mark Harrison Clay and Family. They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

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

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

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

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

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

Check List/Milestone

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

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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 March 13, 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 everyday, but you probably don’t think of water as a business. Well, maybe you should. Bottled water is a massive and fast-growing industry, set to more than double by 2028. 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 $240 billion in 2021 after more than 10% growth the previous year.(( https://www.grandviewresearch.com/industry-analysis/bottled-water-market ))
• Growth forecast – The global bottled water industry is projected to more than double by 2028 to reach more than half a trillion dollars. 
• Number of businesses – In 2021, 703 bottled water production businesses were operating in the US.(( https://www.ibisworld.com/united-states/market-research-reports/bottled-water-production-industry/ )) 
• Number of people employed – In 2021, the US bottled water production industry employed 17,383 people. 

Trends and challenges

Trends in the bottled water industry include:

• 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. 

Challenges in the bottled water industry include:

• Plastic water bottles are piling up in landfills, leading to environmental concerns and increased governmental regulation, spurring 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 annually requires about 17.6 million barrels of oil, which is of increasing concern due to the current energy situation.

Consumer spending

• Average consumer spend – The average person in the US consumes about 45 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 – In 2018, about 20% of Americans consumed mostly bottled water.
• 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 at this online platform .  

How much can you earn from a bottled water business?

The average price for a private labeled 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 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? Determine your products

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 this Step By Step profit margin calculator to determine your mark-up 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, 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

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

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 ex: “AquaSource Bottling” over “AquaSource Sparkling Water” or “Coconut Bay Water”
• Avoid location-based names that 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 and 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. 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

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• 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, 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 Corp – 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 Corp – An S-Corporation 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 need to elect to be an S-Corp 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

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

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 or fax: visit the IRS website to learn more. Keep in mind, 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 strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as 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 option, 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 for 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.

They are unlikely to find your website, however, 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. 

For your bottled water business, the marketing strategy should focus on establishing a strong brand presence, highlighting your commitment to purity and sustainability, and connecting with health-conscious consumers. Here’s a marketing blueprint tailored to boost your brand’s image and engage your target market.

Digital Presence and Online Marketing

• Engaging Social Media Campaigns: Utilize platforms like Instagram and Twitter to highlight the purity and source of your water.
• SEO for E-commerce: Optimize your online shop for organic searches related to bottled water and hydration solutions.
• Interactive Website Features: Develop an engaging website that educates visitors on the health benefits and sustainability efforts of your brand.

Content Marketing and Engagement

• Health and Wellness Blogging: Share articles and posts on the importance of hydration, water purity, and eco-friendly practices in the water industry.
• Customer Testimonials: Leverage positive customer feedback to build trust and encourage new customers to try your water.

Experiential and In-Person Engagements

• Hydration Stations at Events: Set up branded hydration stations at local sports and wellness events to promote your water.
• Product Sampling: Offer free samples at supermarkets, gyms, and health fairs to introduce people to the taste and quality of your water.

Collaborations and Community

• Partnerships with Fitness Centers: Partner with gyms and yoga studios to provide your bottled water, aligning your brand with a healthy lifestyle.
• Community Initiatives: Support local health and sustainability initiatives to demonstrate your brand’s commitment to community wellness.

Customer Relationship and Loyalty Programs

• Rewards Program: Implement a program that incentivizes repeat purchases with discounts or rewards.
• Referral Incentives: Encourage current customers to refer friends and family with benefits for both parties.

Promotions and Advertising

• Targeted Advertising Campaigns: Use targeted ads to reach health-conscious consumers and those interested in sustainability.
• Influencer Marketing: Collaborate with health and wellness influencers to promote the benefits of choosing your bottled water brand.

Kickstart Marketing

• Striking Branding and Packaging: Design eye-catching labels and packaging that communicate the quality and values of your brand.
• Point-of-Sale Displays: Create compelling point-of-sale displays in stores to attract attention and drive purchases.
• Email Marketing: Keep in touch with your customer base through newsletters that offer hydration tips, company news, and special offers.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today 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 – prepare 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. 

When it comes to distribution channels for selling your bottled water, consider a combination of options to reach a wider customer base. This can include:

• Retail stores: Approach grocery stores, convenience stores, health food stores, or local markets to stock your bottled water on their shelves.
• Online platforms: Utilize e-commerce platforms such as your own website, Amazon, or other online marketplaces to sell your product directly to customers.
• Distributors: Partner with beverage distributors who specialize in the distribution of bottled beverages. They can help you reach a broader network of retailers and handle logistics.
• Direct sales: Sell your bottled water at events, festivals, farmers’ markets, or through direct-to-consumer channels, such as home delivery or subscription services.
• B2B sales: Explore partnerships with restaurants, cafes, offices, or gyms to supply your bottled water as part of their offerings.

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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Starting Bottled Water Business Plan (PDF)

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

Market Research

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

Location, Premises And Equipment

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

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

Types Of Bottled Water

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

Mineral Water

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

Spring Water

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

Purified Water

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

Sparkling Water

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

Flavoured Water

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

Staff And Management

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

Customer Segmentation

Primary usage.

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

Type Of Bottled Water

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

Distribution Channel

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

Marketing Plan

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

Approaches For Bottled Water Business

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

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

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

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

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

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

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

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

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

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

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

The purified water business plan package consists of 4 files

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

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

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

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

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

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

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

We wish you the best in your bottled water business! Check out our collection of business plans  , and more business ideas .

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

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

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

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

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

Table of Contents

What You Need To start a pure water business in Nigeria

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

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

Have A Business Plan

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

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

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

Get Funding

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

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

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

Register The Business With NAFDAC

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

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

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

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

Find A Suitable Location

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

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

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

Get Necessary Facilities In Place 

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

Install A Water Treatment System

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

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

• Distillation

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

• Reverse Osmosis (RO)

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

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

• Ultraviolet Water Purification

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

Recruitment

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

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

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

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

Automatic sealing machine.

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

Nylons And Bottles 

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

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

Other equipment needed in the pure water factory business include;

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

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

5 Cons Of The Pure Water Business

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

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

Failure to Make Sales on Time

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

Fluctuation in Production Costs

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

Maintenance

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

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

High competition

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

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

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

Inadequate supply of electricity

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

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

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

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

About Author

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

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Interestingly

Good day, Please may i know prices of these machines

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

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

Hi, Mr. Onifade.

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

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

Interesting… What about staff training.

God bless u, so helpful to me.

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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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Do your shopping with us at Shangisha/magodo End of ashiru shittu . Awesome grace plaza Magodo phase2

excellent site merci

this is interesting, i like it

Please, where is your location

can I start a mini pure water business with the mini handy portable sealing machine in sealing my pure water sachet?

this is very good

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• > Europe
• > Russia
• > Moscow

Is Moscow Tap Water Safe To Drink?

Yes! Generally Safe to Drink*

Table of Contents

Can you drink tap water in moscow.

Yes, tap water is drinkable.

Tap Safe includes data from many publicly available sources, including the WHO (World Health Organization), CDC (Center for Disease Control), and user submitted databases, but unfortunately there's not enough data about Moscow.

To see user submitted ratings of the water quality for Russia, see the "User Submitted Ratings" box on this page.

Moscow Russia, tap water is safe for drinking . Treatment plants use sodium hypochlorite , which is more reliable than chlorine. A regular inspection ensures people who drink it won’t be ill. The water leaves the treatment plant is safe to drink . However, locals tend to boil water before drinking. Nowadays, many Russian drinks filtered water . Their concerns will be the residential pipeline in the place they live or stay.

The Mosvodokanal (Water services company), the state group that monitors the drinking water in Moscow, confirms that water is clean . The company produces high-quality drinking water and a safe sewage system to 14.2 million inhabitants of the Moscow capital. Also, according to specialists, tap water in Moscow meets all the requirements that have been recommended by Russia’s chief state sanitary inspector. They deny many stories created by the various aqua filters. But if you have a sensitive stomach as tourists, we advise that you only consume bottled water.

Source of Water in Moscow, Russia

Tap water from Moscow, Russia , comes from surface water and groundwater. The three primary sources originate from the Moskva river , Volga river , and Vazuzskoye Hydrotechnical System.

The Moskva river supplies up to 60% of the capital needs of water. While the Volga river provides 40% of the water supply in Moscow, the Vazuzskoye serve as a reserve source incase of water crisis or contamination on the two prime surface water source.

Treatment and sanitation start with coagulation . This method includes the addition of compounds that improve the clumping of fines into larger floc so that they can easily separate from the water. Then they exposed water to UV light that known to kill bacteria and now will pass through water filtration of sand a natural way to filter water without chemical compounds.

Moscow Tap Water

The famous Moscow tap water supplied by the authorities contained high levels of pesticides, etc. These levels have been regularly overcharged and sometimes unknowingly overcharged in some areas. You can imagine that when this happens, you could be suffering from long-term health problems. The average life expectancy in Moscow is around eighty or ninety years. These figures do not include the death rate from illnesses, which, unfortunately, almost one-third of the population suffers from Moscow.

Recently some companies have started selling packaged Moscow tap water at various price ranges so that people can easily buy a bottle and take it with them to their home. It seems that the people of Moscow have become much more interested in these bottles, and many believe they are safer than the local bottled water from the supermarket or the vast range of similar brands sold in stores across the globe. Yet they are pretty useless and even more expensive than the ordinary local supermarket brands. Many believe that these brand-name companies are only making money from their consumers by deceiving them. However, it is also worth remembering that the destination Moscow tap water does not come from any such reliable suppliers and is certainly not free of harmful chemicals.

It is essential to realize that not all bottled water from Europe or anywhere else in the world is safe to drink. If you are traveling to Moscow, you should ensure that you have a fully qualified professional inspect the water before you drink. The same applies if you stay at a hotel in the city, as many hotels often have a plumbing problem. If your drinking water is contaminated, you may have absolutely no choice but to leave the hotel and find somewhere else to stay. In the past, I have personally seen people who have lived for months in a small town without any water supply and were forced to use a simple tap water filter to bring some life back into their lives. Moscow’s people indeed face difficult times, but the fact remains that they need our help more than ever to keep their city clean and healthy.

Water in Moscow

Water in Moscow is something that people take for granted, but the fact is that there are no hotel amenities in the city that can be called genuinely luxurious. While there are plenty of posh cafes scattered throughout the city and a plethora of excellent eating and drinking options, you will have to get your drinking water from a faucet at the end of the day, a tap or bottled one. This can be a pain because even if you go on a perfect vacation, you might still not be able to take along your water bottle, so here are some other things that you should make sure to pack before you travel to Russia. Your water supply!

Water is essential when you are visiting any country, let alone one as unique as Russia. As such, you will want to get a hold of bottled water while you are there, and at many of the hotels, you will also find a water filter attached to the tap. This way, you can have clean and safe water without having to worry about getting sick from water that may not necessarily be from a tap that you drink. It is also an excellent idea to have an ice cooler with you, to keep refreshments for yourself and any friends or family you may meet. If you stay in a guest house, try to get a refrigerator, too – cold drinks are a must!

There are also plenty of hotels in Moscow that offer Wi-Fi internet access, so make sure to bring this along with you, too. A hotel water purifier may seem like a small thing to have on hand, but you never know when you might need it, especially in the heat and humidity that the region has to deal with. In addition to taking these precautions, there are other hotel amenities that you can find in many of the more excellent hotels in Moscow and more budget hotels. For example, many cheaper hotels will offer you hot tubs, which are incredibly relaxing and enjoyable after a hard day at work. You can even get a “couple” package so that you can enjoy a romantic evening together after returning home from a long day of work.

Moscow Bottled Water

The Moscow Bottled Water is now one of the leading brands of Russian bottled water. It has its unique name and brand identity due to the strict control of production. Only the best quality minerals, herbs, and plants are used to produce every bottle of this Moscow bottled water. This brand is known all over the world for its quality of water.

The Moscow Italian Wine has also become a famous brand among people across the world. Its unique name was based on two words -” Moscow” and “Italian wine.” It was created by the legendary Russian writer Alexey Pshchinin. Since one day, he put the words “Moscow Italian Wine” in the bottle of his famous Russian brand and started selling it to customers across the world. It is considered one of the finest Russian wines that are available.

Murano Italian Wine is one of the top-selling brands that has a vast number of fans. It has been a part of the Russian retail market since 1960 when it began as a small business. It has expanded its brand name to sell various products such as wine, mineral water, fruits, and confectionery. Due to its huge success, the company now produces different types of Russian wines, chocolates, juices, and Cologne from its vast inventories. Now it is available in almost all parts of the world, even in some parts of the United States.

Moscow Drinking Water

Do you want to know about the quality of Moscow drinking water? Are you worried that you are not getting enough of it? Then you need to know what the quality of Moscow’s drinking water is. It would be best if you also found out what you can do to stop it from happening to you and ensure that your family’s health is not in danger. Here are some tips to help you with this:

The first thing that you should know is that there are different kinds of purification methods used for the purest drinking water. There are many different ones. Even if you live in one of the most developed cities globally, you still have to be aware that you have to deal with the pollution in your city. The water that comes from the tap may be clean, but you have to contend with many impurities when you mix it with municipal water. Therefore, you need to make sure that you purchase a good filtration system that will allow you to drink safe water without worrying about the quality.

Moreover, you need to know that some water purification plants have been known to produce horrible drinking water. There have even been cases when people end up getting ill because they drink contaminated water. In addition to this, you also need to make sure that the government has approved the water filter you buy. Without this, you might end up with a machine that will give you nothing but a few contaminants.

Moscow Water Supply

Moscow is one of the largest cities in Russia and the capital of the Russian Federation. The city was developed as a steam mining center during the Golden Ages of the 17th century. Today, the city is one of the fastest-growing cities in Russia, with over 6 million. The Moscow water supply has long been a problem because of water pipes’ issues in the city. However, it has become much better today as a result of technological advances.

Water is essential to life in the city, and it is also crucial for the health of its inhabitants. Moscow has always had an inadequate water supply record, which has been the case since the Revolution. However, the situation has changed today, and Moscow has one of the world’s best water supply systems. Water is also distributed to all of the apartment complexes and townhouses before being distributed to individual homes. It is also brought in on trucks and trains from the city’s main water supplies.

Water is a valuable commodity, and the city does not want to see any cut in its water supply. Therefore, when a new water line is installed, it is done with great care and attention. When the water supply is affected due to natural calamities like floods and earthquakes, Moscow gets involved more than other cities. However, it does not affect the city’s general population, as the people of Moscow can drink from any tap no matter where they are located. Also, as long as there is sunlight in the city, water in bottles will be available for the general public.

Moscow Water Quality

Moscow has a lot of industrial, commercial, and residential growth going on. Since these areas are populated with people, a lot of waste is being created that needs to be handled. Moscow water quality is improving slowly but surely, and it is expected that it will be better in the future. Water is an essential commodity, and everyone needs it to survive. Moscow is just a small city. The population is still growing, so the need for good water quality will not be quickly replaced as it did in the past. Nevertheless, there are some methods you can use to ensure that you are drinking at least what is considered to be good quality water.

If you have friends or relatives living in a city known for poor water quality, you may want to think about helping them out by donating your share to a charity that gives clean water to residents. Many charities give away free water to people who cannot afford to buy bottled water, although this does little good if the water source is unreliable. You could also try contacting your city to see if they have any programs that allow you to help out. They often need people to run surveys and provide information about their water supply quality, although the government does not usually support these kinds of programs.

You can help improve the quality of the water in your home by installing a kitchen countertop filter that takes out the contaminants. There are many types of filters available, and you may find that the simplest ones will work best in your house. Some of these filters remove just a few particles, leaving the tap water’s essential minerals and vitamins. This may help overcome the mineral deficiencies.

Moscow Water Treatment

Moscow water treatment equipment has become a prevalent method of filtration and purification among the Moscow residents. Many people are starting to use these systems to filter their water and be confident that their water is clean enough for consumption by their families. The systems are becoming more popular as more people realize what they have been doing by allowing city water to pollute their drinking water. This has caused many health problems for many Russian citizens. City water cannot be deemed healthy when it contains such contaminants as pesticides, lead, benzene, bacteria, radioactive isotopes, synthetic drugs, and other harmful chemicals. Even the water from wells used for personal consumption must be filtered or cleaned at the source to be deemed safe for drinking.

The main reason these systems are getting more popular is that they are cost-effective and produce far healthier water than what you can get from your tap. There is a wide range of water treatment equipment available on the market today, ranging from portable units that can be kept in apartments and houses and huge water softening machines that can be installed in water pipes throughout a city. These systems’ prices depend on many factors, such as the size of the system, the kind of filter used, and the number of filter stages that need to be installed in the water purification equipment.

The water quality that comes out of your tap can sometimes depend on whether you have installed the correct type of water treatment equipment. If you suspect that your water supply contains any impurities such as lead, it would be wise to contact a water purifier that can help to remove the traces of this toxic metal. Once you have made your purchase, it would be a good idea to read about the brand and model you are using to make the most of your investment. Water purifiers have become an essential part of our lives, and it is crucial to know precisely what you are purchasing to make sure that you are getting a quality product.

Other links:

• Moscow, Russia Travel Guide by N.G.
• 17 Top Tourist Attractions in Moscow
• https://www.lonelyplanet.com/russia/moscow/health

What do people in Moscow think about the tap water?

While brushing your teeth with it is OK, assume that tap water isn’t safe to drink. Stick to bottled water, boil water for 10 minutes or use water purification tablets or a filter.

The estimated price of bottled water

$0.56 in USD (1.5-liter)

USER SUBMITTED RATINGS

• Drinking Water Pollution and Inaccessibility 40% Moderate
• Water Pollution 49% Moderate
• Drinking Water Quality and Accessibility 61% High
• Water Quality 50% Moderate

The above data is comprised of subjective, user submitted opinions about the water quality and pollution in Moscow, measured on a scale from 0% (lowest) to 100% (highest).

Related FAQS

• Best Water to Drink
• Lead in Drinking Water
• PFAS in Drinking Water
• Nitrates in Drinking Water
• Bacteria in Drinking Water
• Best Water Dispensers

Always take extra precautions, the water may be safe to drink when it leaves the sewage treatment plant but it may pick up pollutants during its way to your tap. We advise that you ask locals or hotel staff about the water quality. Also, note that different cities have different water mineral contents.

Sources and Resources

Sources cited, additional resources, traveller's notes.

While brushing your teeth with it is OK, assume that tap water isn't safe to drink. Stick to bottled water, boil water for 10 minutes or use water purification tablets or a filter.

Current Weather in Moscow

Some of the convenience stores in moscow.

• Eliseyevskiy
• Pyaterochka
• Mini Market
• EUROSPAR Express
• Food Market
• АВ Daily
• Planeta Vkusa
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• Гастроном â„– 1
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Estimated Price of Bottled Water

Check tap water safety for nearby destinations.

• Dolgoprudnyy
• Krasnogorsk
• Dzerzhinskiy
• Ivanteyevka
• Shchelkovo (Shchyolkovo)
• Staraya Kupavna
• Elektrougli
• Losino-Petrovskiy
• Krasnoznamensk
• Elektrostal'
• Krasnoarmeysk
• Chernogolovka
• Beloozerskiy
• Solnechnogorsk
• Pavlovskiy Posad
• Sergiyev Posad
• Elektrogorsk
• Voskresensk

Check tap water safety for other cities in Russia

• Al'met'yevsk
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• Aleksandrovsk-Sakhalinskiy
• Alekseyevka

Check tap water safety for other countries in Europe

• Bosnia and Herzegovina
• Czech Republic
• Faroe Islands
• Isle of Man
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• Netherlands
• New Caledonia
• North Macedonia
• South Georgia And South Sandwich Islands
• Switzerland
• United Kingdom
• Vatican City

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99 Cents Only to close all 371 stores and wind down its business

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99 Cents Only Stores will close all 371 of its stores and wind down its business operations after more than four decades, the City of Commerce discount chain announced Thursday.

“This was an extremely difficult decision and is not the outcome we expected or hoped to achieve,” interim Chief Executive Mike Simoncic said in a statement. “Unfortunately, the last several years have presented significant and lasting challenges in the retail environment.”

He cited multiple factors, including the “unprecedented impact” of the COVID-19 pandemic, shifting consumer demand, persistent inflationary pressures and rising levels of shrink — an industry term that refers to loss of inventory attributed to reasons such as shoplifting, employee theft and administrative errors.

Combined, those issues “have greatly hindered the company’s ability to operate,” Simoncic said.

99 Cents Only has stores in California, Arizona, Nevada and Texas and has about 14,000 employees. The privately held company said it had reached an agreement with Hilco Global to liquidate all of its merchandise and dispose of fixtures, furnishings and equipment at its stores. Sales are expected to begin Friday.

Hilco Real Estate is managing the sale of the company’s real estate assets, which are owned or leased.

99 Cents Only may turn into 99 cents mostly

Chain is expected to announce some items won’t stay under $1.

Sept. 5, 2008

The announcement by 99 Cents Only reflects a larger weakness in the dollar-store category, said Brad Thomas, equity research analyst at KeyBanc Capital Markets.

Dollar Tree, a Chesapeake, Va., retailer, announced last month that it was closing 600 of its Family Dollar stores this year and an additional 370 in the next few years, he noted.

“It’s been trying times for many, many retailers,” he said. “What’s interesting is that what started out as a boon to retailers in the pandemic, with all those stimulus checks, quickly turned into a very troublesome time.”

Rising wages, inflation and higher losses due to shrinkage have reduced profits for retailers in a deep-discount sector where margins are already extremely low.

99 Cents Only, with its large base of California stores, has been under particular wage pressure, he said. And it’s at a disadvantage compared with larger chains such as market leader Dollar General, which has a store count close to 20,000 — “a sales base and a store base that is multiple times larger than 99 Cents,” Thomas said.

Last week, Bloomberg reported that 99 Cents Only was considering a bankruptcy filing as it contended with a liquidity shortfall.

Founded in Los Angeles in 1982 by David Gold , 99 Cents Only popularized the single-price retail concept. At the time, dollar stores were seen as dumping grounds for undesirable products, but the Gold family made the stores bright and well-organized, with good-quality merchandise including groceries and household supplies.

“It was an instant success,” Howard Gold, one of David Gold’s sons, recalled Friday; he and his three siblings all worked at 99 Cents Only. “People thought it was government-subsidized because they couldn’t believe the prices.”

For years, it remained one of the few true “dollar” stores, with items priced at 99 cents or less or grouped to sell for a total of 99 cents.

That changed in 2008 when, faced with fast-rising inflation, soaring food and fuel prices, and a higher minimum wage, 99 Cents Only announced that it was straying from its long-standing price strategy.

Three years later, the company announced that it had agreed to be sold in a deal valued at about $1.6 billion, as investors eyed dollar stores that had grown in popularity during the Great Recession. In 2013, Howard Gold and the rest of the family management team departed the company.

Today, with stores scattered around Los Angeles County — among them in Hollywood, Silver Lake, Mid-Wilshire, Santa Monica, Thai Town, North Hollywood and Glendale — the closure of 99 Cents Only will leave a number of large vacant properties in prime locations.

“It’s very sad on many levels, and I’ll just leave it at that,” Gold, now retired and living in Studio City, said of the decision to close the chain his father built.

Other major retailers have also announced store closures in the region lately, including REI in Santa Monica , Macy’s in Simi Valley and several Rite Aid locations .

99 Cents Only did not respond to requests for comment.

Nicolas Kolesnikow, a retired teacher who lives in Westchester, said he was shocked to hear the chain was going out of business. He shops at a 99 Cents Only about four blocks from his house several times a week.

“It’s almost like a corner store for me,” said Kolesnikow, 82.

He might stop by and pick up milk if he runs out, and for longer trips will buy household items and produce such as tomatoes, cucumbers and cilantro before visiting a traditional supermarket with a larger selection.

Kolesnikow said he noticed that some products had become much more expensive in the last year, though there were still bargains.

“I found their prices were working their way up to regular prices,” he said, “and there were fewer shoppers.”

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Andrea Chang is a wealth reporter for the Los Angeles Times. She was previously a Column One editor, the deputy Food editor and an assistant Business editor, and has covered beats including technology and retail. Chang joined the paper in 2007 after graduating from the Medill School of Journalism at Northwestern University. She grew up in Cupertino, Calif.

Laurence Darmiento covers wealth and dealmakers in Southern California for the Los Angeles Times. He joined the paper in 2015 as an assistant business editor and has overseen finance, real estate and Washington business coverage. Darmiento previously had been the managing editor of the Los Angeles Business Journal and was a reporter for the Los Angeles Daily News and other outlets. A New York native, he is an alumnus of Cornell University.

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