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Bottled Water Business Plan

water bottle supply business plan

Free Business Plan Template

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  • Fill in the blanks – Outline
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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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water bottle supply business plan

2. Business Overview

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

Business Description:

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

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

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

Mission Statement:

Business history:.

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

Future Goals

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

3. Market Analysis

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

Target market:

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

Market size and growth potential:

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

Competitive Analysis:

Market trends:.

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

Regulatory Environment:

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

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

4. Products And Services

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

Describe your products & services:

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

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

Describe the health benefits

Quality measures, additional services.

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

5. Sales And Marketing Strategies

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

Unique Selling Proposition (USP):

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

Pricing Strategy:

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

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

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

6. Operations Plan

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

Staffing & Training:

Operational process:, technologies & equipment:.

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

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

7. Management Team

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

Founders/CEO:

Key managers:.

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

Organizational structure:

Compensation plan:, advisors/consultants:.

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

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

8. Financial Plan

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

Profit & loss statement:

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

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

Financing Needs:

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

9. Appendix

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

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

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

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

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

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

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

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

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

How to get funding for your bottled water business?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

About the Author

water bottle supply business plan

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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Download Bottled Water Business Plan

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Bottled Water Business Plan Template

Written by Dave Lavinsky

bottle water business plan

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 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.

ClearRiver Bottled Water Company Pro Forma Projections

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

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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

How to Start a Bottled Water Business

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. 

bottled water industry size and growth

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.

bottled water industry Trends and Challenges

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/ ))

bottled water industry consumer spending

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.

bottled water business earnings forecast

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.

water bottle supply business plan

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.

bottled water business idea rating

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.

what to include in a 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.

types of business structures

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

water bottle supply business plan

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.

water bottle supply business plan

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. 

types of business financing

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.

types of business insurance

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

unique selling proposition

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.

water bottle supply business plan

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

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

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How to Start a Water Bottle Company? 10 strategies

Starting a water bottle company involves several steps, including conducting market research, creating a business plan, selecting your product, finding a supplier, packaging your water bottles, complying with regulations, setting up a website, and marketing your product.

Launching a water business involves a comprehensive approach that begins with a detailed market study to understand the target audience, competitors, and potential for growth.

Next, develop a business plan highlighting your business model, financial projections, and marketing strategies.

Choosing the type of water bottle – plastic, glass, metal, or biodegradable – will also dictate the suppliers and manufacturing process you’ll need.

Compliance with local and international health and safety regulations is crucial. Finally, setting up an engaging web presence and effective marketing campaigns will drive sales and brand awareness.

To launch a successful water bottle company, market research is fundamental. It will help you understand the demand, competition, and potential for growth in the market.

Next, a business plan is crucial, detailing your company’s mission, target audience, marketing strategy, and financial forecast. Choosing the water bottle type and finding a supplier to meet your needs is the next step.

From plastic to eco-friendly options, the choice will shape your company’s image. Regulatory compliance is a must for health and safety, while establishing a strong online presence and effective marketing strategy will drive your success.

10 Steps: Start a Water Bottle Company

Table of Contents

Key Takeaway

How To Start A Water Bottle Company

Five Facts About Start A Water Bottle Company

Understanding the water bottle industry.

Starting a water bottle company can be an exciting and rewarding venture. As with any business, it is essential to have a deep understanding of the industry you are entering.

In this section, we will delve into the water bottle industry, exploring current market trends and growth potential, as well as the increasing consumer demand for sustainable and eco-friendly products.

Current Market Trends And Growth Potential

  • The global water bottle market was valued at $xx billion in 2020 and is expected to reach $xx billion by 2027, growing at a cagr of xx% during the forecast period.
  • Rising health consciousness among consumers and the need for hydration on the go are the primary factors driving the market’s growth.
  • The increasing adoption of reusable and recyclable water bottles has gained momentum due to rising environmental concerns.
  • Innovative designs and advanced technologies are reshaping the industry, with features like built-in filters, temperature control, and smart functionalities becoming more common.
  • Collaborations with popular influencers and celebrities have played a significant role in driving brand awareness and market expansion.
  • Growing awareness of the dangers of single-use plastic bottles has led to a shift in consumer preferences towards sustainable alternatives.

Consumer Demand For Sustainable And Eco-Friendly Products

  • In recent years, there has been a significant shift in consumer preference towards sustainable and eco-friendly products, including water bottles.
  • Consumers are becoming more conscious of the environmental impact of single-use plastic bottles and are actively seeking reusable alternatives.
  • By offering eco-friendly options, you can tap into this growing market segment and attract environmentally conscious consumers.
  • Sustainable materials such as stainless steel, glass, and bpa-free plastics are gaining popularity for their durability and reduced environmental impact.
  • Providing clear information about the recyclability and sustainability of your water bottles will help build trust and loyalty among environmentally conscious consumers.
  • Highlighting your company’s commitment to sustainability through partnerships with environmental organizations or initiatives can further enhance your brand’s reputation.

By understanding the current market trends and recognizing the demand for sustainable and eco-friendly products, you can position your water bottle company for success in this thriving industry.

Stay tuned for the next section, where we will explore the key steps to set up your water bottle manufacturing and distribution processes.

Market Research And Analysis

Starting a water bottle company can be an exciting venture filled with opportunities and challenges.

Before diving into the production and marketing process, it is crucial to conduct thorough market research and analysis.

This step will help you identify your target audience, understand their preferences, analyze competitors, and discover unique selling points for your brand.

Identifying Target Audience And Their Preferences

Understanding your target audience is key to developing effective marketing strategies and creating products that meet their needs.

Here are some key points to consider:

  • Demographics: Identify the age, gender, location, and income level of your target audience.
  • Behavior and preferences: Dive deeper into their lifestyle, interests, and habits related to water consumption and bottle use.
  • Market segmentation: Identify specific segments within your target audience that have unique needs or preferences.
  • Surveys and feedback: Conduct surveys or analyze existing market data to gain insights into customer preferences.

Once you have a better understanding of your target audience, you can tailor your product features, branding, and marketing messages to resonate with them.

Competitor Analysis And Identifying Unique Selling Points

Analyzing your competitors can provide valuable insights into the market landscape and help you identify your water bottle company’s unique selling points.

Here are some important points to consider:

  • Identify direct and indirect competitors: Research companies that produce water bottles or offer alternative solutions for hydration on the market.
  • Analyze their offerings: Evaluate the features, materials, pricing, and branding strategies of your competitors’ products.
  • Identify gaps and opportunities: Look for areas where your competitors may be lacking or failing to address customer needs.
  • Differentiation: Identify unique selling points or features that will set your water bottle company apart from the competition.
  • Value proposition: Clearly define the value your products offer to customers and why they should choose your brand.

By conducting comprehensive competitor analysis, you can position your water bottle company in a way that highlights its distinctiveness and appeals to your target audience.

Remember, market research and analysis are ongoing processes that require continuous monitoring and adaptation.

As you gain more insights and gather feedback from customers, keep refining your strategies to stay ahead of the competition and meet your customers’ changing preferences.

With a strong foundation in market research, you’ll be well-equipped to start your water bottle company on the path to success.

Developing A Business Plan

Starting a water bottle company requires careful planning and consideration. Developing a business plan is an essential step in setting a clear direction for your venture.

This section will guide you through the process of defining business goals and objectives, as well as estimating startup costs and financial projections.

Defining Business Goals And Objectives

Setting clear goals and objectives is crucial for the success of any business.

Here are the key points to consider:

  • Identify your target market: Determine who your ideal customers are and understand their needs and preferences.
  • Define your unique selling proposition (usp): What sets your water bottle company apart from competitors? Highlight your competitive advantage and why customers should choose your products.
  • Establish short-term and long-term goals: Set specific and measurable objectives that align with your company’s vision. Break them down into manageable targets to track your progress effectively.

Estimating Startup Costs And Financial Projections

Before launching your water bottle company, it’s essential to estimate the costs involved and project your financial outlook.

Consider the following points:

  • Calculate startup costs: Include expenses such as product development, manufacturing, packaging, branding, marketing, and legal fees.
  • Determine funding sources: Explore various options, including personal savings, loans, investors, or crowdfunding, to secure the necessary capital.
  • Conduct a thorough market analysis: Assess the demand for water bottles, pricing trends, and potential competition to inform your sales projections.
  • Create a financial forecast: Develop a realistic projection of your company’s financial performance, including sales, expenses, and profitability, for at least the first three years.
  • Monitor and adjust: Regularly review your financial projections, comparing them to actual results. Make necessary adjustments to ensure your business remains on track.

Remember that developing a comprehensive business plan is a dynamic process. Continuously refine and adapt your goals and projections as you gain more insights and market data.

Starting a water bottle company can be a rewarding and profitable venture. By defining your goals and objectives, as well as estimating startup costs and financial projections, you will lay a solid foundation for success. Take the time to plan thoughtfully, and your efforts will pay off in the long run.

Product Development And Manufacturing

Starting a water bottle company can be an exciting venture, but it requires careful planning and execution. In this section, we will explore the crucial aspects of product development and manufacturing.

From designing innovative and high-quality water bottles to sourcing materials and finding reliable manufacturers, let’s dive into the world of creating a successful water bottle company.

Designing Innovative And High-Quality Water Bottles

When it comes to designing water bottles for your company, it is crucial to focus on innovation and quality.

Here are some key points to keep in mind:

  • Consider the target market: Understand the preferences and needs of your target audience. Are they interested in eco-friendly bottles or ones with advanced features?
  • Research the latest trends: Stay up-to-date with the market trends and identify opportunities for unique designs and functionalities.
  • Stand out with branding: Design a visually appealing and easily recognizable bottle that aligns with your brand’s identity.
  • Prioritize durability and functionality: Ensure that your bottles are durable, leak-proof, and easy to use, enhancing the overall user experience.
  • Test prototypes: Create prototypes of your designs and gather feedback from potential customers to fine-tune your product.

Sourcing Materials And Finding Reliable Manufacturers

Once you have your water bottle designs finalized, the next step is sourcing the materials and finding reliable manufacturers.

Here’s what you need to consider:

  • Identify the right materials: Choose materials that are safe, durable, and eco-friendly, such as bpa-free plastic, stainless steel, or glass.
  • Conduct thorough research: Look for reputable suppliers who can provide high-quality materials at competitive prices. Consider factors like their reputation, certifications, and compliance with safety standards.
  • Evaluate manufacturing facilities: Visit and assess potential manufacturing facilities to ensure they have the necessary capabilities, equipment, and expertise to produce your water bottles.
  • Quality control measures: Discuss quality control processes with manufacturers to ensure the end products meet your specifications.
  • Establish strong partnerships: Build long-term relationships with your chosen manufacturers, fostering open communication and collaboration.

By focusing on innovative designs and partnering with reliable manufacturers, you can lay a solid foundation for your water bottle company.

Remember to prioritize quality, functionality, and customer satisfaction throughout the product development and manufacturing stages to create a successful and sought-after water bottle brand.

Marketing And Branding Strategies

A strong brand identity and message are crucial when starting a water bottle company. These elements not only differentiate your product from competitors but also resonate with your target audience.

Here are key points to consider:

  • Conduct thorough market research: Understand your target market’s preferences, needs, and desires. Identify gaps in the market and opportunities for differentiation.
  • Identify your brand values: Determine the values and principles that your company stands for. Align these values with your target audience’s interests.
  • Develop a unique brand name and logo: Choose a name and logo that are memorable and relevant to your brand. Ensure that they represent the essence of your company’s values and vision.
  • Craft a strong brand message: Create a concise and impactful message that communicates the benefits of your water bottles. This message should resonate with your target audience and highlight their pain points.
  • Maintain consistency across all channels: Ensure that your brand identity and message are consistent across various touchpoints, including your website, social media profiles, packaging, and marketing materials. Consistency fosters brand recognition and builds trust with consumers.
  • Use captivating visuals: Utilize appealing imagery and design elements that reflect your brand identity. Consistent visual branding helps consumers associate your products with your company.
  • Leverage storytelling: Tell the story behind your brand and communicate the unique qualities that set your water bottles apart. Engage consumers through storytelling that captivates and creates an emotional connection.

Implementing effective marketing campaigns and strategies:

Marketing plays a crucial role in establishing brand awareness, attracting potential customers, and driving sales.

Here are some key strategies to consider when starting a water bottle company:

  • Define your target audience: Clearly identify your target market based on demographics, interests, and behaviors. This will help you tailor your marketing efforts more effectively.
  • Build a robust online presence: Create a professional website that showcases your products and brand story. Utilize search engine optimization (seo) techniques to improve your website’s visibility and attract organic traffic. Develop engaging social media profiles to connect directly with your audience.
  • Utilize influencer marketing: Collaborate with influencers and bloggers who align with your brand values and target audience. Their endorsement can boost brand visibility and credibility.
  • Leverage content marketing: Create compelling and informative content that educates your audience about the benefits of using your water bottles. This can be in the form of blog posts, videos, podcasts, and social media posts.
  • Implement email marketing: Build an email list of interested customers and utilize targeted email campaigns to nurture relationships and promote your products.
  • Participate in events and sponsorships: Attend industry trade shows, festivals, and community events to showcase your brand and products. Consider sponsoring local sports teams or organizations relevant to your target market.
  • Offer promotions and giveaways: Entice potential customers by offering discounts, promotions, and giveaways. This can help generate buzz and attract new customers.
  • Monitor and analyze marketing efforts: Track the effectiveness of your marketing campaigns using analytics tools. Make data-driven decisions and optimize your strategies accordingly.

By focusing on creating a compelling brand identity and message and implementing effective marketing campaigns and strategies, you can successfully launch and grow your water bottle company.

Remember to stay consistent, engage your audience, and adapt your strategies based on customer feedback and market trends.

FAQ About Start A Water Bottle Company

How much does it cost to start a water bottle company.

Starting a water bottle company can cost anywhere from $10,000 to $100,000, depending on factors such as equipment, packaging, and marketing.

What Are The Key Steps To Start A Water Bottle Company?

To start a water bottle company, you’ll need to research your market, create a business plan, secure funding, obtain necessary permits, and find reliable suppliers for bottles and packaging materials.

How Can I Make My Water Bottle Company Stand Out?

To make your water bottle company stand out, focus on unique branding, sustainable packaging, high-quality and innovative designs, exceptional customer service, and effective marketing strategies.

What Regulations And Certifications Are Required For A Water Bottle Company?

Regulations and certifications required for a water bottle company include fda food packaging regulations, nsf/ansi certification for bottling facilities, and state-specific requirements for water bottling and labeling.

How Can I Market My Water Bottle Company Effectively?

You can market your water bottle company effectively by leveraging social media, partnering with influencers, attending trade shows, offering samples to potential customers, and highlighting the unique features of your product in your marketing campaigns.

Starting a water bottle company can be a challenging yet rewarding venture. By following the steps outlined in this blog post, you will have a solid foundation to launch your business successfully.

Remember to conduct thorough market research and identify your target audience to create a unique selling proposition for your brand.

Building strong partnerships with suppliers and manufacturers can help ensure a reliable supply chain for your products.

Developing a compelling branding strategy and an effective marketing plan will be crucial in attracting customers and promoting your water bottle company. Don’t forget to continuously monitor and adapt to market trends and consumer preferences to stay competitive.

As you embark on this journey, remember that dedication, perseverance, and a passion for sustainability can set your water bottle company apart from the rest. Good luck!

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A Touch of Business

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

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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.

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How to Start a Water Delivery Business

Bottled water delivery businesses offer fresh, delicious options for hydration. Whether for residential or commercial use, water is a vital part of good health and will be a bonus for family and employees.

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

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

Water Delivery Business Image

Start a water delivery business by following these 10 steps:

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

We have put together this simple guide to starting your water delivery 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 Water Delivery 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 water delivery business?

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

Costs will range, depending on the size and scope of the operation you are starting.


For most water delivery businesses, they start small as a subsidiary of a larger water bottling corporation. You will need to buy in to a water distributor, much like other franchised businesses.These costs can vary but are usually reasonable for entrepreneurs just starting out, as it is in the water company’s best interest to have as many smaller delivery businesses distributing their product. You will also need to:

  • Purchase a business license and insurance
  • Buy or lease a couple delivery trucks or vans
  • rent a storage space for inventory
  • initial advertisement and marketing blitz to build an name and, ultimately, a reputation

What are the ongoing expenses for a water delivery business?


Moving forward, your operational costs will include fleet maintenance, rental costs for business or storage space, employee salaries, and repair and replacement of water coolers.

Who is the target market?

Typically, the target market will split between commercial operations, such as retail businesses, restaurants and cafes, office buildings and complexes and businesses with laborers working in outside or hot conditions or residential customers who prefer bottled water to other residential options. All of these customers have the same needs in common though, as they want fresh, clean water to be available 24/7.

How does a water delivery business make money?


Customers buy monthly shipments of water, rent or buy water coolers and dispersion devices, and place special orders for water for one-off parties, large gatherings, and celebrations, such as weddings or corporate seminars.

Water is not incredibly expensive, so your earning comes from the contracts you’re able to agree upon with customers. Annual contracts for delivery ensure your business will garner revenue monthly. Typically, a business will want three to six 5 gallon bottles per month, depending on the size of their business. This will average around about $50 per monthly delivery. Larger businesses will want more accordingly and you may want to develop a sliding scale of employee/water ratios, with pricing in the favor of the customer, as the orders become larger. As mentioned previously, make sure you research what other delivery companies are charging and look to align with those figures.

How much profit can a water delivery business make?

Bottled water, as an industry, is more and more lucrative, especially considering the low overhead costs of extracting and bottling a natural resource. On average, the bottled water industry is making billions of dollars annually and is one of the fastest growing divisions of the beverage industry in the world. This is good news for water delivery businesses. A successful, medium sized delivery service will see annual profits in the $85,000 - 150,000 range.

How can you make your business more profitable?

When looking to expand your business, think outside the box, or jug, as it is. Promote the idea of a greener option; move away from the individual-sized water bottles and move customers towards the 5 gallon, refillable bottles. More and more customers are starting to realize the multitude of benefits from reducing plastic waste and reusing the larger containers. You may also want to promote the water cooler rental and purchase options more strongly. Water coolers aren’t just for office buildings anymore. Finally, consider offering the options of personalizing the labels on water bottles, large jugs and even water coolers. With today’s wrap services, virtually any logo or design can be placed on these products.

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 water delivery 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.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a water delivery 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 .

Certificate of Occupancy

A water delivery business is generally run out of a warehouse in which the water is stored. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

  • If you plan to lease a location :
  • It is generally the landlord’s responsibility to obtain a CO.
  • Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a water delivery business business.
  • After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
  • If you plan to purchase or build a location :
  • You will be responsible for obtaining a valid CO from a local government authority.
  • Review all building codes and zoning requirements for your business’ location to ensure your water delivery business will be in compliance and able to obtain a CO.

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.

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 water delivery business


Since the product itself is already well-known, customers will choose based on personal preference and taste, for the most part. This means your job becomes convincing them that you offer the best delivery services. Look for ways to make your business stand out from the crowd. Catchy slogans, mascots, bulk pricing, and regularly offered pricing specials can all be methods for gaining favorable approval from customers.

You will also want to explore your options for pushing your message either through social media and online content or through more traditional methods, such as billboards, signage and posters, flyers, or advertisements in newspapers and publications. Again, consider your target audience and promote where and how they communicate and live.

How to keep customers coming back

Your reputation for professionalism and quality service will be a key to your return clientele. Make sure your customers know you appreciate them and give specials or incentives now and then to remind them of your stellar business relationship.

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?


Virtually anyone can break into this industry, as the product almost always sells itself. If you are able to easily talk with customers, have the ability to lift heavy weights and can drive commercial trucks, you are exactly what this industry is looking for. Additionally, having retail or small business experience will give you a leg up on the competition.

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 water delivery business?

As the name implies, most of the day to day activities focus on water deliveries. Whether residential or commercial, you will be meeting customers and re-stocking their water supplies.

In addition, you will:

  • restock your own inventory
  • repair or replace customer water coolers
  • communicate and network with your water distribution parent company
  • develop marketing and advertising strategies
  • train new employees for working in the field or in the office

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

Much of the business of water delivery revolves around interactions with the customers. If you are comfortable talking to different individuals on a day to day basis, often in person or over the phone, you will enjoy the business. One must also be able to manage a small or growing business and be able to physically load and deliver some of the water bottles, at least initially, while starting up your business.

What is the growth potential for a water delivery business?

Clean water is quickly becoming an increasingly valuable commodity, with need and availability always driving prices higher. Therefore, the growth potential is quite expansive. There is always a danger of over saturation in a market but, since water is vital to survival, this seems unlikely in the near future.

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 water delivery business?


When just starting out, look to secure some annual contracts with some sizable businesses. The regular income will help to pad your investment. Look for residential customers, as well, although the larger parts of your business will usually be derived from commercial operations looking for clean, cold water for employees.

Consider these points, as well:

  • Will you supply more than one kind of water? i.e. spring, purified, or distilled
  • Do you service and/or sell water coolers?
  • How large of a delivery range will you operate within?
  • Will you deliver large and medium (1.5-5 gallon) bottles, small individual drinking bottles, or a mixture of all sizes?
  • Make sure you research the market you’re trying to break into and look for areas which need greater attention or are underrepresented with current water delivery services.

How and when to build a team


Building a team will rely on how fast your business grows. To start out, you will only need a few employees to handle inventory and invoices, deliveries and maintenance. You will most likely be able to manage much of the work with a two or three person team, in the beginning. And, when you do add employees, maximize your money by choosing individuals with an array of skills and abilities, so you will all be able to help out wherever needed.

Useful Links

Real world examples.

  • Bottled Water Delivery Service
  • Poland Spring Delivery

Have a Question? Leave a Comment!

How to Start a Small Water Bottle Business

  • Small Business
  • Setting Up a New Business
  • Steps for Starting a Small Business
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How to Start a Spring Water Business

How to run a cast concrete business, how to set up a natural spring bottling company.

  • How to Start a Wholesale Pecan Business
  • How to Start a Barbeque Business

Water business ideas include producing and selling bottled water in small or large containers, working as a distributor for a larger producer, or providing water delivery services. Consumers like bottled water because the bottles are pre-filled and easy to grab, pack and transport. According to the job experts on LinkedIn , the water bottle business profit margin is adequate, and you can start a business with a moderate investment.

How to Start a Bottled Water Business

There are approximately 565 licensed bottled water distributors and producers in the U.S., and the industry is steadily growing. The writers at Entrepreneurship in a Box explain that the best way to open a water bottle company is to buy a franchise or another bottled water business. If you find resources like those provided by Dealstream , you'll see that this investment can cost millions of dollars. Most people don't have that money to invest, so starting small is a more realistic option.

Competition requires market research to learn about demographics and narrow down a target audience. There are not a lot of niches in this industry since water needs to meet international standards. Still, you will find flavored, sparkling, distilled, custom-sized and pH-modified bottled water. The industry is heavily regulated to make it safe for human and animal consumption. You must either buy FDA-approved water purification technology or partner with a private label supplier.

Bottled Water Business Plan

The Tan Do Beverage website explains that it is possible to start a small bottled water company as a distribution affiliate for a prominent brand for $1,000 to $5,000. This path is an excellent way to learn about production, storage and distribution needs. Another option is to work with a private label bottled water brand. You need $50,000 or more and a strategy for success to start up your own company.

The business experts at Growthink detail a bottled water business plan to use as a guide. The plan includes an executive summary, type of bottled water, and analyses of the industry, potential customers and competition. You also need to develop a marketing campaign and an operations plan that looks at startup costs, everyday processes and long-term objectives. Other components of this business model include a financial plan and income statements. Download the website's bottled water business plan PDF for help with all this.

How to Sell Your Own Bottled Water Brand

The writers at Farmers Weekly explain that entrepreneurs can sell bottled water or their own natural mineral water or spring water. Natural mineral water has to be from a named groundwater source, of suitable quality, and be chemically stable. Spring water has to meet similar standards, but you likely need to treat it to meet regulatory requirements. Either option is then packaged into small glass bottles, cans, or plastic bottles.

Water must be bottled at the source, so you need to purchase or rent the appropriate extraction and bottling equipment. Local authorities partner with you during the process to ensure that strict safety guidelines are followed. The cost estimates for setting up a water source infrastructure, bottling plant, equipment and labeling is well over two million dollars, with added costs for transportation, staffing and marketing.

  • LinkedIn: How Lucrative Is Bottled Water Business?
  • Entrepreneurship in a Box: How to Start a Bottled Water Business
  • Dealstream: Bottled Water Businesses for Sale
  • Tan Do Beverage: How to Start a Bottled Water Company in 2021
  • Growthink: Bottled Water Business Plan Template
  • Farmer's Weekly: So You Want to Sell Bottled Water?

Danielle Smyth is a writer and content marketer from upstate New York. She has been writing on business-related topics for nearly 10 years. She owns her own content marketing agency, Wordsmyth Creative Content Marketing, and she works with a number of small businesses to develop B2B content for their websites, social media accounts, and marketing materials. In addition to this content, she has written business-related articles for sites like Sweet Frivolity, Alliance Worldwide Investigative Group, Bloom Co and Spent.

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

Nick

By Nick Cotter Updated Feb 02, 2024

water delivery business image

Business Steps:

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

Starting a water delivery business requires a thorough understanding of the market to ensure the service meets the needs of potential customers and stands out from competitors. A comprehensive market analysis will help identify opportunities for growth and areas of focus for your new venture. Here are some key steps to consider:

  • Research the demographics of your target area to understand the potential customer base, including age, income, and lifestyle preferences.
  • Analyze competitors by identifying other water delivery services in the region, evaluating their pricing, services, and market share.
  • Assess the demand for water delivery services, especially in locations with limited access to clean drinking water or where convenience is highly valued.
  • Examine potential partnerships with local businesses or organizations that could benefit from regular water delivery, such as offices, gyms, or health facilities.
  • Explore the legal and regulatory requirements for water delivery businesses in your area to ensure compliance and understand the potential barriers to entry.
  • Investigate the supply chain for sourcing water, including the cost, quality, and sustainability of the water sources available to you.

water delivery business image

Are Water Delivery businesses profitable?

Yes, water delivery businesses can be very profitable. Many water delivery businesses offer a variety of services that can generate substantial income, such as bulk water delivery, bottle water delivery, and filtered water delivery. Additionally, water delivery businesses often have repeat customers because of their convenience and quality of service.

Creating a comprehensive water delivery business plan is a critical step towards ensuring the success of your venture. It will serve as a roadmap that outlines your business goals, strategies, and processes. Below are key elements your business plan should include:

  • Executive Summary: Summarize your business concept, target market, unique selling propositions, and financial projections.
  • Market Analysis: Research and analyze your local market, identify your potential customer base, and understand your competition.
  • Organizational Structure: Define the management hierarchy, roles, responsibilities, and the operational workflow of your business.
  • Products and Services: Describe the types of water you'll offer (e.g., spring, purified, distilled) and any additional services such as subscription plans or emergency water supply.
  • Marketing and Sales Strategy: Develop a plan to reach your target customers, including advertising channels, pricing strategies, and sales tactics.
  • Financial Projections: Provide detailed forecasts for expenses, revenue, and profitability, including startup costs, operating costs, and break-even analysis.
  • Regulatory Compliance: Outline the necessary permits, licenses, and health standards required to legally operate your water delivery business.

How does a Water Delivery business make money?

A water delivery business typically makes money by charging customers a fee for delivering water to their home or business. This fee can vary depending on the size of the order, the distance of the delivery, and any additional fees associated with the delivery. The business may also charge a markup on the cost of the water they are delivering.

Creating a memorable and trustworthy water delivery brand is crucial for standing out in a competitive market and securing a loyal customer base. Your brand should reflect the quality of your product, your company values, and the unique benefits you offer. Below are some guidelines to help you develop a compelling brand for your water delivery business:

  • Identify your target market: Understand who your customers are, what they value, and how your brand can resonate with their lifestyles and preferences.
  • Create a unique brand name and logo: Choose a name that's easy to remember and a logo that's visually appealing and represents the essence of your product and service.
  • Define your brand personality: Decide if your brand will be friendly, professional, eco-conscious, luxurious, etc., and ensure all your branding materials communicate this effectively.
  • Develop a brand message: Craft a compelling message that tells your brand's story, highlights the benefits of your service, and differentiates you from competitors.
  • Consistency is key: Ensure that your brand's visual elements, messaging, and customer experience are consistent across all platforms and points of contact.
  • Focus on quality and sustainability: Emphasize the purity of your water and any sustainable practices in your operations to align with consumers' increasing environmental concerns.

How to come up with a name for your Water Delivery business?

Brainstorming is the best way to come up with a name for a water delivery business. Think of words that represent cleanliness and refreshment, such as Aqua, Refresh, or H20. Consider words that relate to your geographic area or the service you provide, such as the name of a local river or a phrase like "On-the-Go Hydration". Finally, make sure the name is easy to remember and pronounce, so your customers can easily order your product.

image of ZenBusiness logo

Formalizing your business registration is a crucial step in establishing your water delivery business, as it provides legal recognition and allows you to operate within the framework of the law. This process varies by location, but generally involves a few common steps. Follow this guidance to ensure your business is properly registered:

  • Choose a business structure (e.g., sole proprietorship, LLC, corporation) that best suits your needs and understand the implications for taxes and liability.
  • Register your business name with the appropriate local or state authorities to ensure it's unique and not already in use.
  • Obtain an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you plan to hire employees.
  • Apply for any necessary permits and licenses specific to water delivery services, which may include health department permits and water transport licenses.
  • Check with your local city or county clerk's office for additional business registration requirements, such as a general business license or zoning permits.
  • Register for state and local taxes, such as sales tax or payroll taxes, to ensure you are in compliance with tax laws.
  • Keep records of all registrations and renew them as required to maintain your business's legal standing.

Resources to help get you started:

Explore crucial materials designed for water delivery entrepreneurs, featuring publications, industry reports, newsletters, and more, to gain insights on market trends, operational best practices, and growth strategies:

  • International Bottled Water Association (IBWA) Publications: Offers reports, guides, and newsletters focused on the bottled water industry's best practices and market trends. Link .
  • Global Water Intelligence: Provides detailed reports and analyses on the global water market, including delivery services, with strategic insights for business development. Link .
  • Beverage Industry Magazine: Features articles, news, and case studies on the latest trends in the beverage world, including water delivery services. Link .
  • Water Delivery Solutions Blog: Offers advice on operational efficiency, customer service, and the technological innovations shaping the water delivery sector. Link .

Starting a water delivery business involves several legal considerations to ensure compliance with local, state, and federal regulations. Acquiring the necessary licenses and permits is a critical step in legitimizing your business and avoiding costly fines. Here are the key actions you should take:

  • Research local business licensing requirements specific to water delivery services within your city or county clerk's office.
  • Obtain a general business license to operate legally within your state. This can typically be done through your state's business licensing agency.
  • Apply for a health department permit if your water delivery service handles potable water. This ensures that your business adheres to safe drinking water standards.
  • Check with the Environmental Protection Agency (EPA) or equivalent for any federal permits required, especially if your service involves sourcing and transporting water.
  • Secure a Commercial Driver's License (CDL) if delivering large quantities of water that require the operation of heavy vehicles.
  • Consider obtaining a sales tax permit if your state requires it for the sale of goods and services.
  • Ensure compliance with the Department of Transportation (DOT) regulations if your service involves the interstate transportation of water.

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

Depending on the geographical area and type of business, there may be different requirements for licenses or permits. Common licenses and permits required of a water delivery business may include a Business License, Sales Tax License, a resale permit, and an UPA or Universal Product Code. It is important to check with your local government for specific regulations for your area.

Opening a business bank account is a critical step in establishing your water delivery business's financial foundation. It separates your personal and business finances, providing clarity for accounting and tax purposes. Additionally, securing funding is essential if your initial capital isn't sufficient to cover startup costs like equipment, vehicles, and initial inventory. Here's how to approach these pivotal steps:

  • Research banks and credit unions that offer business accounts with low fees and good customer service. Consider banking features that will benefit your water delivery business, such as online banking, mobile deposits, and merchant services.
  • Prepare the necessary documentation to open a business bank account, which typically includes your business formation papers, Employer Identification Number (EIN), and personal identification.
  • Explore different funding options such as small business loans, lines of credit, investors, or crowdfunding platforms tailored to your business needs and repayment capabilities.
  • Create a solid business plan that clearly outlines your business model, market analysis, and financial projections to present to potential lenders or investors.
  • Consider applying for business credit cards to handle minor expenses and build your business credit history.

Setting the right price for your water delivery services is crucial for balancing customer satisfaction with profitability. Your pricing strategy should reflect the quality of your service, cover operational costs, and ensure competitiveness in the market. Here are some key points to consider when determining your pricing:

  • Cost Analysis: Calculate all costs involved in the delivery process including procurement, storage, transportation, and personnel. This will form the baseline for your pricing.
  • Market Rates: Research competitors' prices to ensure your rates are competitive. Adjust your pricing to offer better value without undercutting your business.
  • Value-Based Pricing: Consider the value you are providing to the customer, such as convenience and time saved, and price accordingly.
  • Volume Discounts: Offer discounts to customers who order in bulk or subscribe to regular delivery schedules to encourage larger orders and customer loyalty.
  • Dynamic Pricing: Implement a dynamic pricing strategy for peak times or in response to supply and demand fluctuations.
  • Transparent Pricing: Be clear about your pricing structure to build trust with customers. Include any additional fees like bottle deposits or delivery charges upfront.

What does it cost to start a Water Delivery business?

Initiating a water delivery 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 $46000 for launching such an business. Please note, not all of these costs may be necessary to start up your water delivery business.

Securing the right water delivery equipment and supplies is essential to ensure efficient service and customer satisfaction in your water delivery business. It's important to invest in reliable, quality equipment that will stand the test of time and keep your operations smooth. Here are some essentials you'll need to get started:

  • Water Delivery Vehicles: Choose appropriate vehicles such as water tank trucks or vans designed for water transport, ensuring they meet local health and safety standards.
  • Water Tanks and Dispensers: Acquire FDA-approved water storage tanks and dispensers that can maintain the purity and quality of the water during transport and delivery.
  • Bottles and Containers: Stock up on a variety of reusable water bottles and dispensing containers in various sizes to cater to different customer needs.
  • Pumps and Filtration Systems: Consider portable pumps and filtration systems to ensure that water can be delivered and dispensed efficiently and safely at the point of use.
  • Sanitization Supplies: Ensure a supply of sanitization products for equipment and containers to maintain hygiene standards.
  • Inventory Management System: Implement an inventory management system to keep track of supplies, equipment, and customer deliveries.
  • Maintenance Tools: Have a set of maintenance tools and spare parts handy for quick repairs to minimize downtime.

List of Software, Tools and Supplies Needed to Start a Water Delivery Business:

  • Computer or laptop
  • Internet access
  • Business software (accounting, invoicing, customer management)
  • Website design software
  • Water delivery vehicles
  • Refrigeration units for vehicles
  • Water storage containers/tanks
  • Water dispensing/delivery equipment
  • Water purification systems
  • Safety equipment (first aid kit, fire extinguishers, etc.)
  • Marketing materials (flyers, brochures, business cards, etc.)

Securing the right business insurance is a crucial step in establishing a water delivery service, ensuring that your business is protected against various risks and liabilities. Here's a guide to help you navigate the process of obtaining the necessary insurance policies that will provide the coverage you need.

  • Research Insurance Types: Determine which types of insurance are pertinent to your water delivery business, such as general liability insurance, commercial auto insurance, property insurance, and workers' compensation, if you have employees.
  • Consult with Professionals: Speak with insurance agents or brokers who specialize in commercial policies. They can provide personalized advice and help you find the best coverage options for your specific business needs.
  • Compare Quotes: Obtain quotes from multiple insurance providers to compare coverage and rates. Ensure that each quote reflects the same level of coverage so you can make an informed decision.
  • Review Policy Details: Carefully read the policy terms, including coverage limits, deductibles, and exclusions. Confirm that the policy meets any legal requirements your business may have and provides adequate protection.
  • Purchase and Monitor: After selecting the best insurance policy, proceed with the purchase. Keep in mind that as your business grows, your insurance needs may change. Regularly review and update your coverage to remain adequately insured.

With your water delivery business ready to hydrate your community, it's time to spread the word and attract customers. Effective marketing strategies can make the difference between a wellspring of success and a dry spell in business growth. Here are several key techniques to help you begin marketing your water delivery services:

  • Build a Strong Online Presence: Create a professional website and engage on social media platforms to reach potential customers in your service area.
  • Offer Promotions & Discounts: Attract new customers with introductory offers, referral discounts, or bundled service deals.
  • Local Advertising: Utilize local newspapers, radio stations, and community bulletin boards to advertise your services.
  • Partnerships: Collaborate with local businesses, gyms, and offices to provide them with regular water delivery, potentially offering them special rates.
  • Branding: Ensure your delivery vehicles and packaging are branded effectively to serve as mobile billboards, promoting your business everywhere they go.
  • Customer Reviews and Testimonials: Encourage satisfied customers to leave positive reviews online and use their testimonials in your marketing materials.
  • Direct Mail Campaigns: Send out flyers, brochures, or postcards to targeted neighborhoods, offering information and special promotions.

Expanding your water delivery business is crucial for long-term success and profitability. This involves diversifying your services, reaching new markets, and optimizing operations. Below are key strategies to help you grow your water delivery venture:

  • Invest in Marketing: Increase brand awareness through online advertising, social media campaigns, and local partnerships. A strong online presence can attract new customers.
  • Offer New Products: Introduce new products such as flavored or sparkling water to cater to diverse customer preferences and increase sales.
  • Upgrade Technology: Implement an online ordering system and customer relationship management (CRM) software to streamline operations and improve customer service.
  • Expand Delivery Area: Gradually increase your delivery radius or add new routes to serve more customers while ensuring the quality of service is maintained.
  • Focus on B2B Relationships: Establish contracts with offices, restaurants, and other businesses to create steady income streams.
  • Referral Programs: Encourage existing customers to refer new clients by offering discounts or free products for successful referrals.
  • Optimize Delivery Schedules: Analyze delivery routes for efficiency to reduce costs and improve delivery times.
  • Stay Compliant: Keep up with regulations and obtain necessary permits for expanded operations to avoid legal issues.

Business Plan for Investors

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Water Purification and Bottling Business Plan Template

MAR.14, 2022

Water Purification and Bottling Business Plan Template

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.

Water Purification and Bottling Business Plan - 3 Years Profit Forecast

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.

Water Purification and Bottling Business Plan - Startup Cost

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:

Water Purification and Bottling Business Plan - Marketing Segmentation

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

Water Purification and Bottling Business Plan - Sales Monthly

6.4 Sales Yearly

Water Purification and Bottling Business Plan - Sales Yearly

6.5 Sales Forecast

Water Purification and Bottling Business Plan - Unit Sales

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.

Water Purification and Bottling Business Plan - Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Water Purification and Bottling Business Plan - Profit Monthly

8.3.2 Profit Yearly

Water Purification and Bottling Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Water Purification and Bottling Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Water Purification and Bottling Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Water Purification and Bottling Business Plan - Project 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

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Get Your Water Suppliers Business Essentials Today!

Foster growth with 250+ time-saving, business-specific templates. Swift designs, easy tools, all in one place.

Embarking on Your Water Suppliers Business Journey

Starting a water suppliers business is an exhilarating venture that taps into the vital need for clean and accessible drinking water. The journey begins with a deep dive into the market, understanding the demands, and identifying your niche. Crafting a robust business plan is your roadmap to success, laying out your vision, goals, and strategies in detail. Next up, securing the necessary licenses and permits is crucial to operate legally and gain customer trust. Establishing relationships with reliable suppliers ensures a consistent flow of high-quality water to meet customer demands. Finally, creating a strong brand identity sets you apart in the competitive market, making your business memorable and trustworthy.

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Understanding the Challenges

When you're diving into the world of water supply businesses, the first thing you'll encounter is a pool of challenges. Regulatory compliance stands as the tallest hurdle, requiring thorough knowledge and adherence to local, state, and federal laws. Then there's the competition - not only do you have to distinguish yourself from other suppliers, but you also need to ensure your water quality is top-notch. Financing your venture is another critical aspect, as initial setups for purification systems and distribution networks can be hefty. Lastly, establishing a robust customer base demands exceptional marketing strategies and a commitment to excellent customer service.

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Finding Your Niche

How to start with a bang? Find your niche. The water supply industry is vast, encompassing everything from bottled water to agricultural irrigation services. Identifying where your interests and the market's needs align can give you a competitive edge. Maybe there's a demand for sustainable, eco-friendly water sourcing in your area, or perhaps specialty mineral waters could be your golden ticket. Whatever it is, honing in on that niche will help set your business apart from the rest and provide clear direction for all your efforts moving forward.

bowl filled with food

Securing Licenses and Permits

Navigating the regulatory landscape isn't just about knowing the rules; it's about securing the right licenses and permits to operate legally. This process requires patience and attention to detail. Every location has its unique set of requirements, so it's crucial to research thoroughly and perhaps even consult with legal experts specializing in environmental law. Failure to comply can result in hefty fines or even shutdowns, making this step non-negotiable. It's not just about jumping through hoops; it's about laying a solid foundation for your business operations.

Laying Out Your Business Plan

A comprehensive business plan isn't just your roadmap; it's your pitch to potential investors and partners. Here, clarity and precision are key. You'll need to outline everything from market analysis and marketing strategies to operational plans and financial projections. This document should reflect how well you understand the industry and how prepared you are to tackle its challenges head-on. Remember, a convincing business plan can open doors to funding opportunities and partnerships that can propel your business forward.

food in bowl

Funding Your Venture

Finding the right funding mix is pivotal for getting your water supply business off the ground. Whether it's through personal savings, loans from financial institutions, or investments from angel investors, each source comes with its pros and cons. Carefully evaluate what works best for your situation while considering risk factors and repayment terms. Securing adequate funding not only covers initial setup costs but also ensures operational liquidity during the early stages of your business. It's about finding balance - enough capital to launch effectively without overburdening the business with debt.

Boost campaigns with 250+ editable templates. Save, reuse, and wield design tools for business growth.

Building an Effective Team

Your team can make or break your business - that's how crucial this step is. From technicians who ensure water quality meets standards, to marketing mavens who sell your brand story effectively; every role is vital. Recruit individuals who not only possess technical skills but also share your vision for providing quality water solutions. Cultivating a strong company culture around shared values can drive motivation and innovation within your team. Remember, building an effective team is not just about filling positions; it's about weaving together strengths that complement each other.

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Marketing Your Services

In today's digitally-driven market, having a solid online presence is non-negotiable for businesses aiming for success. Utilizing social media platforms not only helps in building brand awareness but also engages potential customers directly. SEO optimization ensures that when people search for water supply services in their area, your business pops up first. Traditional methods like community involvement or sponsoring events shouldn't be overlooked either as they build local trust and recognition. Strategic marketing drives visibility which in turn propels sales - remember this mantra well.

Utilizing Desygner for Your Branding Needs

In building your brand identity, never underestimate the power of visually appealing designs - from logos to marketing materials; they tell stories more than words ever could. That's where tools like Desygner come into play offering an intuitive platform for creating professional-grade designs without needing expertise in graphic design. Whether it's customizing templates or creating something unique from scratch, Desygner empowers you to craft visual content that resonates with your target audience effectively enhancing brand recognition and loyalty among customers., Leveraging such tools can streamline your marketing efforts significantly making branding less daunting more dynamic.

Concluding Thoughts on Launching Your Water Suppliers Business

Starting a water suppliers business is a journey filled with excitement, challenges, and immense potential for success. The road to establishing a thriving business in this essential industry involves careful planning, dedication, and an unwavering commitment to delivering quality and value to your customers. While the process may seem daunting at first, the rewards of creating a sustainable and profitable business can be incredibly fulfilling.

To ensure a smooth start and sustainable growth for your water suppliers business, consider these key steps:

  • Conduct thorough market research to understand demand and competition.
  • Create a solid business plan outlining your goals, strategies, and financial projections.
  • Secure the necessary licenses and permits to operate legally.
  • Choose a reliable source of clean, safe water.
  • Invest in high-quality water purification and bottling equipment.
  • Develop strong relationships with distributors and retailers.
  • Focus on branding and marketing to build a robust presence in the market.
  • Leverage tools like Desygner for your marketing materials to create professional designs effortlessly.

In today's competitive landscape, differentiating your brand through effective marketing strategies is crucial. Utilizing intuitive design tools can significantly enhance your branding efforts, enabling you to connect with your audience more effectively. Design plays a pivotal role in how potential customers perceive your brand, making it an indispensable aspect of your marketing strategy.

To kickstart your ventures into effective branding and marketing as you embark on this exciting journey of starting a water suppliers business, signing up at Desygner could offer you the seamless support needed. It's not just about supplying water; it's about building a brand that resonates with quality, trust, and innovation. Begin crafting your success story today!

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StartupBiz Global

Starting Bottled Water Business Plan (PDF)

Bottled Water Business Plan

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)

bottled water business plan pdf

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 5

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

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I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

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Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

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The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

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I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

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!

bottled water business proposal

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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Water Purification Business Plan for Package Drinking Water

Rakesh Patel

  • Last Updated: November 7, 2023

Water purification business plan

  • With a growing number of consumers, the water purification industry has opportunities for entrepreneurs to drive further growth.
  • Starting a water purification business, your top priority should be recruiting, selecting, orienting, training, and counseling employees.
  • Also, it is important to comply with regulations and invest in quality equipment to ensure the safety and purity of the water distribution.

Bottled water remains one of the leading commodities people consume worldwide.

According to estimates, the Bottled Water segment’s revenue in 2022 will reach $302.50 billion. The market is expected to grow annually by 8.03% between 2022-2026.

This is simply because bottled water is an essential amenity, so of course, efficient water service companies will never be out of demand. In fact, package drinking companies will generate per-person revenues of $39.74 in 2022. 

This article will be an excellent starting point to help you understand a water purification business plan . If you want to break into water purification services and achieve very healthy gross sales, read along.

Table of Content

  • List of Water purification services
  • Why to start a water purification business?
  • Roles and responsibilities of Water Purification Business owner
  • Water purification business plan template
  • How to start a water purification business?
  • Let Upper help you reach your client’s location on time

List of Water Purification Services

Creating ideas for a water purification business can take time and effort. You can refer to the list of services below if you are new to the industry and need clarification on what you can offer: 

  • Bulk Purified water – Purified water typically comes from reverse osmosis, deionization, or a combination of these methods.
  • Still bottled water – Bottled still water is the leading alternative to tap water. It comes in a range of mineral concentrations.
  • Sparkling bottled water – Making sparkling water involves adding carbon dioxide. People often use it as a healthy alternative because it has fewer calories and less sugar than other sodas.
  • Flavored bottled water – Flavoured water is a beverage with additional natural or artificial flavors, herbs, and sweeteners. Water purification is vital to provide safe drinking water for your community. 

Why to Start a Water Purification Business?

There are multiple reasons why water purification businesses are the need of the hour and why you must start one. 

As per Fortune Business Insights , the global water purifier market is set to grow from $30.62 billion in 2022 to $50.66 billion by 2029. So it’s a growing market, and you can ride the wave by starting your own business.

By 2026, 36% of spending and 9% of volume consumption in the Bottled Water segment will be attributable to out-of-home consumption. That tells us that your services will always be in high demand. 

Also, a growing number of consumers are concerned about their health and the environmental impacts of using untreated water from rivers or lakes. This is expected to drive further growth of the market for water purification services.

Roles and Responsibilities of Water Purification Business Owner

As a water purification business owner, here are your roles and responsibilities: 

  • Your top priority is recruiting, selecting, orienting, training, and counseling managers. Communicate values, assign roles, develop strategies and define primary objectives, monitor results, and create incentives. 
  • You’re also responsible for fixing your pricing strategy and signing business deals.
  • Your employees will look up to you for providing direction to your water purification business.
  • You also need to create, communicate, and implement the mission and vision statement of your organization.
  • You’re the face of your organization, so you’ll sign the high-level documents.
  • Finally, you’ll evaluate the success of your organization and be responsible for formulating profit-boosting strategies. As a small business owner, if you’re the one managing the water purification plant, these will be your added responsibilities: 
  • You’ll oversee the smooth running of your water purification (industrial) plants. 
  • As a water purification plant manager , you’ll need to ensure that all equipment is functional and focus on preventative maintenance and repairs.
  • It’s your job to ensure that your plant meets the safety and hygiene standards at all times. 

Water Purification Business Plan Template

A well-defined plan relies on market research and stresses quality. It also helps you secure funding and start-up assets, fulfill an unsatisfied market need, attract customers, monitor start-up expenses, and prevents very expensive shut down. 

Here’s an elaborate water purification business plan template using which you can create your own business plan.

1. Executive and company summary 

This executive summary aims to summarise the critical points of this comprehensive business plan, saving you time and preparing you for the upcoming content.

An executive summary for a company includes:

  • The business opportunity – describes the need for your services.
  • Services – tell how your business will serve the market.
  • The target market – represents the customer base you will be targeting.
  • Business model – how your services create, deliver, and capture value.
  • Marketing plan and sales strategy – describe how you will market and sell your products to a potentially unsatisfied market.
  • Discuss your competition and how you plan to gain market share – how can you differentiate yourself from your competitors, i.e., what do you offer to customers that nobody else can?

2. Services offered 

The products and services section of your business plan should include a description of the products or services you are offering or plan to offer. 

You should explain how your products and services will be priced and compare the products.

Your product and service section outlines your product or service, why your market needs it, and how it will compete with other businesses selling similar products and services.

3. Market analysis 

Market analysis for water purification business plan

Market analysis is about figuring out the needs of your target market, whether the existing products on the market meet those needs, and what competitors are doing to meet those needs.

You’ll also want to figure out how much people in your industry make per year, how fast the industry is growing or shrinking, and what kind of barriers exist for new players entering it, so you can decide if the environment is suitable for your business idea.

Essentially: Market analysis helps you determine if there’s an actual need for your product or service.

4. Human resources plan 

The importance of a solid human resources plan cannot be overstated, especially in specialized industry sectors. A business needs the right people to do the jobs, and you need a solid plan to hire the right talent.

A well-executed human resources business plan will help you attract and retain talent, which is essential for any company looking to grow.

5. Financial Plan 

A financial plan is not just a list of numbers and projections. It overviews your current business financials and the direction they are progressing in.

Your financial plan will help you set realistic expectations regarding the overall costs and success of your business. You are more likely to be prepared for any eventuality, whether a crisis or incredible growth if you know your financials inside and out.

6. Marketing strategy

Starting a business, ensuring quality service, and promoting operational efficiency are undoubtedly necessary. But you’ll struggle with reaching your ideal consumers if you don’t have actionable marketing and business strategies. To ensure your business thrives, create marketing strategies that increase brand visibility and keep bringing quality leads. 

How to Start a Water Purification Business? 

Follow these steps to start a water purification business: 

1. Use the business plan template for your water purification business

A comprehensive plan is essential for new water purification business owners. This plan should include all aspects of the company, including start-up costs, funding, and day-to-day operations. 

New business owners also need to be realistic about their goals and expectations. Finally, it’s essential to have a solid understanding of the competition.

Businesses with well-thought-out plans are more likely to succeed.

2. Form the legal entity

When starting your business, you must know what kind of liability exposure you want and your company goals. A sole proprietorship may be enough if you sell to limited consumers. 

But a corporate organization or LLC may be better if you want more protection or to grow the business.

3. Obtain permissions and business licenses

Obtain permissions and business licenses

If you’re looking to start a new business, it’s important to remember that specific licenses and permits are required by law. However, this varies depending on the type of water purification business you’re looking to start and where your business will be located.

Contact your local business licensing office or chamber of commerce to find out which permits and licenses you need.

4. Purchase equipment

The most critical elements of starting a water purification business are equipment, tools, and supplies.

You’ll need some things for everyday use, like wrenches and screwdrivers, but you’ll also need more specialized items, like meters or pumps. And remember your safety equipment. You’ll want to ensure you have all the protection you need when working with chemicals or other hazardous materials. 

To ace this step, document everything you might need and research different suppliers that fulfill your requirements. You can also consider renting equipment you won’t regularly require; buying expensive equipment that you wouldn’t use frequently doesn’t make sense.

5. Market your services

Now that you’ve built your water purification business, it’s time to get it out there and start generating revenue. Your own sales force will prove most helpful here. Start with building a brand identity to stand apart from your competitors, reach monthly sales target, and keep sales growing gradually. This includes naming your business and creating a logo and color schemes to remain consistent across social media platforms. It is branding that helps you charge a premium price and stay afloat in economic downturn.

You can then work on creating a website for your business with all the details. Finally, it’s time to create a launch strategy for such a niche product—leverage word of mouth via friends and family, social media shout-outs, and influencer marketing. Advertising in local newspapers, paid ads on social media, yellow page ads (local directories), and more are also game changers for your high purity water business.

Let Upper Help You Reach Your Client’s Location on Time 

Now that you know how to create an elaborate business plan, let’s discuss how you’ll fulfill all your orders. 

With Upper’s route planning and optimization software , though, businesses like yours save 10 hours per week and get more deliveries done on time. You’ll get more done, and your customers will get all their fresh water right when needed.

With Upper, you’ll get the most efficient routes for your bottled water delivery.

  • Your drivers can take advantage of the shortest routes as per specific constraints, driving preferences, time windows, and more, so you’ll always deliver on time.
  • You can mark your shipments low, medium, or high as per priority. You can also add multiple stops and details such as service time, importance, or other notes for your drivers to manage their jobs better.
  • Upper sends automatic notifications regarding the ETA of delivery to your customers to save your drivers from failed deliveries. It helps them get more deliveries done and ensures items safely reach the end customers.

Try the 7 days free trial today. 

Upper Route Planner

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The water purifier will cost around $2,500. The cost of installing new plumbing lines and connections will be $195. Water softener treatment will cost $1,500. The total cost comes to around $4,195 approximately.

The 5 Types of Filters are as follows:

  • Mechanical Filters.
  • Absorption Filters.
  • Sequestration Filters.
  • Ion Exchange Filters.
  • Reverse Osmosis Filters.

Water treatment steps often used in water systems include:

  • Coagulation.
  • Flocculation.
  • Sedimentation.
  • Filtration.
  • Disinfection.

A purification plant is a water system that treats or improves water quality by complying with the state board of health standards. The purification plant can be a stand-alone facility or a portion of a more extensive system.

Conclusion 

Water purification for the bottled water industry is brimming with opportunities. The demand for convenience and high disposable income is driving the consumption of bottled water across the globe. However, you need a comprehensive plan for overall company success. A business plan will help you set realistic goals and expectations, and you can use this plan to get an edge over your competition.

To further grow your business, invest in robust route planning and scheduling software like Upper so that you can provide your services to your customers in time and ditch poor or slow servicing. Try the 7 days free trial today. 

Rakesh Patel

Rakesh Patel, author of two defining books on reverse geotagging, is a trusted authority in routing and logistics. His innovative solutions at Upper Route Planner have simplified logistics for businesses across the board. A thought leader in the field, Rakesh's insights are shaping the future of modern-day logistics, making him your go-to expert for all things route optimization. Read more.

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ProfitableVenture

Water Supply Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Food Processing Industry » Water Purification & Refill Station

Do you want to start a water supply company and need to write a plan? If YES, here is a sample water supply business plan template & feasibility report . 

Water is one of the commodities in our world that doesn’t have any substitute. If you want to take a bath; you use water. If you want to quench your thirst; you need water. If you want to fix a meal; you need water. The need for water could go on and on.

This points to the fact that clean water is as important as the air we breathe and it will continue to be in demand globally. The essence of going into any business is to solve a problem . Thus going into the water supply business would surely help you solve the challenges of people who don’t have access to clean water.

If you are certain that starting a water supply business is what you truly want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan ; a detailed blueprint of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing.

Here is a sample water supply business plan template that will help you to successfully write yours without stressing yourself.

A Sample Water Supply Business Plan Template

1. industry overview.

Water is an essential commodity in all ramifications of life and as such the Public Health Department ensures that all water supply businesses meet certain health and safety standards. It’s important to note that if the water in a community is contaminated; it can result to epidemic in that community.

You will be required to obtain a license before you are permitted to drill a bore hole for your water supply business. This measure is guard against people drilling boreholes in places that are prone to earthquakes and tremors or places that have sanitary issues.

Your choice of location would be supervised and screened before you can be issued the permission to go ahead. Establishments in the water supply business sell water as a public utility to households, businesses and public entities throughout the united states.

Water supply businesses have performed well over the decade. Population growth, as well as occurrence of drought and other hostile weather conditions, have indeed increased demand for water supplied by industry operators .

Going forward, per capita water consumption is projected to decline, as increasing concerns regarding water conservation drive policy aimed at reducing consumption. Nonetheless, while per capita consumption rates are expected to depreciate, cumulative water consumption is projected to expand as the population and economy grow.

The Water Supply and Irrigation Systems industry is a thriving sector of the economy of the United States of America and they generate over $79 billion annually from more than 62,187 registered and licensed water supply and irrigation companies in the country.

The industry is responsible for the employment of over 244,122 people. Experts project the Water Supply and Irrigation Systems industry to grow at a 0.8 percent annual rate between 2013 and 2018. American Water Works Company Inc. has the lion share of the available market in the United States.

A recent report published by IBISWorld shows that the Water Supply and Irrigation Systems industry has performed well over the past five years.

Despite more efficient use of water, population growth, drought and other adverse weather conditions have increased demand for water supplied by industry operators. In addition, economic growth has expanded water demand from both downstream commercial and industrial customers.

Increased business activity has increased the amount of water demanded from retailers, restaurants and other commercial customers. Growth in manufacturing and other industrial activities, which often require copious amounts of water, have also increased demand for water.

The report further shows that over the past five years, the Water Supply & Irrigation Systems in the US industry has grown by 0.8 percent to reach revenue of $79bn in 2018. In the same timeframe, the number of businesses has grown by 1.5 percent and the number of employees has grown by 1.6 percent.

In summary, water supply business is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale servicing a community or you can choose to start on a large scale with several outlets in key cities in the United States of America.

2. Executive Summary

Mark Warren® Water Supply, Inc. is a licensed water supply company that will be located in a residential area, 5 miles away from First Avenue – Cherry Creek, Denver, USA.

We have been able to secure a facility in a strategic location, with an option of long – term renewal on an agreed terms and conditions that are favorable to us. The facility has government approval for the kind of business we want to run and it is easily accessible.

We are in the water supply business to sale and supply treated water to residential apartment, offices, construction sites and industrial plants. We are also in business to make profits and at the same time to give our customers value for their money.

We are aware that there are several water supply, water purification businesses and even water refill stations scattered all around Cherry Creek – Denver which is why we spent time and resources to conduct our feasibility studies and market survey.

We ensured that our facility is easy to locate and we have mapped out plans to develop a wide supply network for offices, construction sites and manufacturing plants all around Cherry Creek – Denver and neighboring cities.

Much more than selling and supplying purified and treated 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 with our services.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they are. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.

Mark Warren® Water Supply, Inc. is owned and managed by Mark Warren. Mark Warren who is the Manager of the Company has a Degree in Water Resources from Denver State University. He has over 14 years’ experience working in related industry as a senior manager prior to starting Mark Warren® Water Supply, Inc. He will be working with a team of experienced employees to build the business .

3. Our Products and Services

We are in the water supply business to sale and supply treated water to households, offices, construction sites and industrial plants via our hygienic water supply tankers and we are going to do all that is permitted by the law in the United States of America to achieve our business goals and objectives.

4. Our Mission and Vision Statement

  • Mark Warren® Water Supply, Inc. has one vision and the vision is to become ‘the go to’ company when it comes to water supply business in the whole of Cherry Creek – Denver.
  • Our mission is to establish a standard water supply business with robust distribution network that cuts across the whole of Cherry Creek – Denver. We want to build a business that will survive from one generation to another.

Our Business Structure

Mark Warren® Water Supply, Inc. is established with the aim of competing favorably with other leading water supply brands in the industry and in future to also open our distribution channels across key cities in the United States of America.

This is why we will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will make sure that we only employ 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 stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. For now, we will contract the maintenance of our water tankers and pumping machines to a service provider, we don’t intend to maintain a very large overhead from the onset.

But as soon as the business grows and stabilizes, we will assemble our own in-house maintenance team. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)

Water supply business Manager

  • Sales and Marketing Officers
  • Accountants/Cashiers
  • Pump Operators

Water Tanker Drivers

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
  • 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 water supply business
  • Maps out strategy that will lead to efficiency amongst workers
  • Responsible for training, evaluation and assessment of workers
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Ensures that the water supply business meets the expected safety, hygiene and health standard at all times.
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction for new team members

Sales and Marketing Manager

  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • 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
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps 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
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Pump Operators:

  • Responsible for selling and refilling water for customers as requested
  • Ensures that the pumps are performing and dispensing treated water as required
  • Assists in filling water tankers as requested
  • Handles any other duty as assigned by the water supply business manager
  • Assists in loading and unloading treated water.
  • Keeps a record of vehicle inspections and make sure the water tanker / truck is equipped with safety equipment
  • Assists the water refill station manager in planning their route according to a delivery schedule.
  • Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
  • Complies with water tanker / truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
  • Collects and verifies delivery instructions
  • Reports defects, accidents or violations
  • Responsible for handling core services that revolve around tanks, water containers and reservoirs cleaning, parking lot sweeping, snowplowing, drain, duct and gutter cleaning , parking lot and driveway washing, equipment cleaning and maintenance
  • Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
  • Ensures that toiletries and supplies don’t run out of stock
  • Handles any other duty as assigned by the water refill station manager.

6. SWOT Analysis

As a business, 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 equipped to confront our threats.

Because of our quest for excellence when it comes to running a standard water supply business, Mark Warren® Water Supply, Inc. employed the services of an expert HR and Business Analyst with bias in startup 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 Mark Warren® Water Supply, Inc.;

Part of what is going to count as positives for Mark Warren® Water Supply, Inc. is the vast experience of our management team , we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon with the shortest time possible.

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

A major weakness that may count against us is the fact that we are a new water supply business in Cherry Creek – Denver and we don’t have the financial capacity to compete with American Water Works Company Inc. when it comes to economies of scale and controlling national distribution network.

  • Opportunities:

The opportunities for water supply businesses are enormous due to the fact that water is an essential commodity that we use on a daily basis.

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

One of the major threats that we are likely going to face is drought. Other threats that may likely confront us are unfavorable government legislature and the arrival of a new water supply business and water refill station in same location where ours is located.

7. MARKET ANALYSIS

  • Market Trends

The need for clean and drinkable water will continue to exist as long as human exist. Water is one of the commodities in our world that doesn’t have any substitute. If you want to take a bath; you use water. If you want to quench your thirst; you need water.

If you want to fix a meal; you need water. This points to the fact that clean and drinkable water is as important as the air we breathe in and it will continue to be in demand globally.

A large percentage of water supplied for irrigation is not sourced from public water supply systems. However, irrigation activity only accounts for less than 5.0 percent of industry revenue. As the price of agricultural products rises, farmers tend to demand more water for irrigation, which benefits industry operators.

The agricultural price index is anticipated to fall in 2018, presenting the industry with a potential threat. As a matter of fact, households represent the largest source of revenue for the Water Supply and Irrigation Systems industry. As the number of households rises, so does demand for water from residential customers, benefiting industry operators.

The number of households is expected to expand in 2018, presenting an opportunity for the industry. Lastly, another trend in water supply business is the adoption of eco – friendly approach towards the treatment and supply of water. As a matter of fact, the industry’s adoption of eco-friendly practices will persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.

8. Our Target Market

When it comes to selling and supplying treated 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 that resides in our target market locations. We are in business to engage in sale and supply of treated water to the following groups of people;

  • Construction sites
  • Industrial Plants
  • Laundries and Laundromats
  • Restaurants and Canteens

Our competitive advantage

We are aware of the stiff competition and we are prepared to compete favorably with other water supply business in Cherry Creek – Denver and throughout the United States of America where we intend opening outlets of our water refill stations.

Some of the things that is going to count as competitive advantage for Mark Warren® Water Supply, Inc. is the vast experience of our management team , we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the 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

Mark Warren® Water Supply, Inc. is established with the aim of maximizing profits in the water supply business in the United States of America and we are going to go all the way to ensure that we do all it takes to sell and supply our treated water to a wide range of customers.

In essence, Mark Warren® Water Supply, Inc. will generate income by selling and supplying treated and purified water.

10. Sales Forecast

One thing is certain when it comes to water supply business, if your water is properly treated and your water tanker hygienic and if your water supply business is centrally positioned and easily accessible, you will always attract customers.

We are well positioned to take on the available market in Cherry Creek – Denver and every city where we intend opening outlets and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.

We have been able to examine the water supply business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Mark Warren® Water Supply, Inc., it is based on the location of our business and other factors as it relates to small and medium scale water supply business startups in the United States;

  • First Fiscal Year: $125,000
  • Second Fiscal Year: $240,000
  • Third Fiscal Year: $500,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be drought and there won’t be any major competitor offering same products 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

Prior to choosing a location for Mark Warren® Water Supply, Inc., we conducted a thorough market survey and feasibility studies in order for us 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 number of customers we want to attract per time and also for our treated water to favorable compete with other leading brands in the industry.

We hired experts who have good understanding of the water supply business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Cherry Creek – Denver.

In summary, Mark Warren® Water Supply, Inc. will adopt the following sales and marketing approach to sell our treated and purified water;

  • Introduce our water supply business by sending introductory letters to residence, offices, laundries and laundromats, industrial plants, construction sites and other stakeholders in Cherry Creek – Denver
  • Engage in roadshow in targeted communities from time to time to sell our brand
  • Advertise our water supply business 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 water supply business
  • Engage in direct marketing and sales
  • Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Regardless of the fact that our water supply business is licensed and centrally located in a location that has good human and vehicular traffic, we will still go ahead to intensify publicity for all our product and brand.

Mark Warren® Water Supply, Inc. has a long – term plan of opening our water supply business – outlets in various locations all around the United States of America which is why we will deliberately build our brand to be well accepted in Cherry Creek – Denver before venturing out.

Here are the platforms we intend leveraging on to promote and advertise Mark Warren® Water Supply, Inc.;

  • 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 water supply business brand
  • Install our billboards in strategic locations all around major locations in Cherry Creek – Denver
  • Engage in roadshow 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 treated and purified water
  • Ensure that all our staff members wear our customized clothes, and all our official cars, water tankers and water storage facilities are well branded.

12. Our Pricing Strategy

We are aware of the pricing trend in the water refill line of business which is why we have decided to have various sizes of gallons and water tankers.

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 treated water are sold and supply a little bit below the average price 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 water supply business.

  • Payment Options

The payment policy adopted by Mark Warren® Water Supply, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Mark Warren® Water Supply, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for the purchase of our treated and purified water without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients.

13. Startup Expenditure (Budget)

A water supply business requires reasonable startup capital hence an entrepreneur would have to pool cash together or welcome investors to partner with you. Although the capital needed to set up a water plant might not be much, but the running capital of the business is always the real deal.

You would need capital to purchase water tankers and also to fuel and maintain your water tankers. These are the key areas where we will spend our startup capital in setting up Mark Warren® Water Supply, Inc.;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) as well as accounting services (CRM software, Payroll software, P.O.S machines and other software- $2,300.
  • Marketing promotion expenses 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.
  • The cost for hiring business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $50,600.
  • The cost for drilling borehole and constructing water treatment channel – $80,000.
  • 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) – $50,000
  • The cost for start-up inventory (Storage Tanks, Gallons, Funnels with Filters, Granular Activated Carbon, Magnetic Flow Meter, Pressure Tank with Pump, Automatic Wash with Stainless Steel Jackets, Water Purifier, Chlorine etc) – $80,000
  • The cost for store equipment ( cash register , security, ventilation, signage) – $3,750
  • The cost of purchase of water supply tankers/trucks – $50,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
  • The cost for building and hosting a website – $600
  • Miscellaneous – $5,000

We would need an estimate of two hundred and fifty thousand Dollars ($250,000) to successfully set up our water supply business in Cherry Creek – Denver.

Generating Funds/Startup Capital for Mark Warren® Water Supply, Inc.

Mark Warren® Water Supply, Inc. is a private business that is owned and financed by Mark Warren. He has decided to restrict the sourcing of the startup capital to 3 major sources.

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

N.B: We have been able to generate about $50,000 ( Personal savings $30,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

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

One of our major goals of starting Mark Warren® Water Supply, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail (supply) our purified water 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.

Mark Warren® Water Supply, Inc. 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.

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 water supply business: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members and friends: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of Storage Tanks, Gallons, Funnels with Filters, Granular Activated Carbon, Magnetic Flow Meter, Pressure Tank with Pump, Automatic Wash with Stainless Steel Jackets, Water Purifier, Chlorine and other required approved chemicals for water purification, preservation, computers, 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
  • Purchase of water tankers – Completed
  • Establishing business relationship with vendors – construction contractors and other key stakeholders: In Progress

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How to Start Packaged Drinking Water Business ?

Market of bottled water business today in india , steps involved in packaged drinking water production, steps to start a bottled water business, fssai license for packaged drinking water, fssai license permissions for packed drinking water, promotions and market of bottled water business today in india, challenges of bottled water business, packed bottled water business overview.

Water is available throughout the globe but how much of the available water is fit for drinking? We all rely on a water supplier (either the government water board or an external supplier) for consuming purified water. Unpurified water is highly dangerous as it may contain chemical impurities, bacteria, and dust. Naturally, available water must undergo a treatment process to ensure it has the right PH balance and only required minerals. With the consumption of water increases due to the growing population, it is quite imperative that the world would require a greater number of water purification units. This is where the bottled water business players are benefitting from.

Bottled water business comprises purifying the water, bottling them for consumption and selling them. Bottled water is extremely convenient to carry especially for employees, travelers, and students. It keeps them hydrated irrespective of their proximity to the water supply.

Bottled water can be made of spring water, mountain water or normal water. Spring and mountain water are referred to as mineral water. Flavored drinking water is a new trend in the bottled water industry.

Do you want to start top Business Ideas with Less Investment and contact us at StartupYo as we provide entire Guidance to start your own water Bottle Business with less Investment?

Read More: How To Start PET Bottle Manufacturing Business ?

Economic conditions do not affect consumption of water as it is something, we all can’t survive without. According to a survey, the global bottled water market was valued at USD 17.0 billion in 2014 and is estimated to reach USD 280.0 billion by 2020. The bottled water industry is growing at 8.5% CAGR from 2015 to 2020. Packaged water business contributes to 18% of the total beverage sales in the world.

Books you Must Read

Water business wiz: quick success tips.

Drinkable water must be tasteless, odorless and colorless. However, some minerals and salts can be added to enhance its taste. Steps involved in packaged drinking water production depend on the quality of source water. Quality of source water determines the treatment required. Treated water must be bottled in sterilized bottles with a label containing the details of expiry, composition, quantity, price, etc. A fully-automatic plant or a semi-automatic plant can be installed depending on the production capacity.

Conduct a feasibility study and analyze market trends A feasibility study is required for an entrepreneur to understand the requirements, determine the pricing strategy and define a marketing strategy that can make the product survive the market. A thorough market analysis can give valuable insights to untapped market places and opportunities or even enhancements to bottled water.

Register the Business Register a business name. It helps in identification in the market, gaining trust from customers and avoiding competitors misusing your market value.

Write a business plan Business plan for bottled water business can make business execution easy and also win funds for you. Business plan for bottled water must have sections like an executive summary, vision, missions, potential market, market analysis, promotion, and marketing, staffing, capital and return estimations.

Obtain necessary permits and licenses After registering the business, permits, and licenses on establishing a water plant, procuring water, selling them and certifying the safety of water is required. Absence of any the permits or licenses might invoke serious actions from the government and may even result in shut down of the company.

Find a suitable location Choose a location strategically by considering factors like a water source, transportation distance to the market, availability, and affordability of a space large enough to set up huge water tanks and most importantly continuous power supply. Ensure that the location selected has enough space for transporting water tankers.

Find a good water source A good water source is essential to the success of the business. The source of water could be boring well water, surface water, seawater, municipal supply or other sources in which treatment is possible.

Identify Bottle Suppliers The cost of bottles purchased for filling water is one of the major costs incurred in bottled water business. So, to gain good profit margins, focus on minimizing the expenditure on bottles. Find a supplier who provides bottles for an acceptable price with satisfactory quality.

Procure Machinery The machinery for bottled water business depends on the scale on which you would like to produce. The common machinery required is a generator, tanks, bottle filling, labeling and sealing machines, testing tools, treatment machines, filters and water purifying chemicals. To ensure safety and hygiene, the bottles must first be washed and sterilized. This is can be done manually using warm water for small scale water plant units but must be automated for medium and large-scale units.

Hire Your Staff and Start Operations Bottling water business involves many activities and might have complex processes depending on the method used for purification of water. Minimum staffing for bottled water business includes a trained professional for water testing, machine operators, sales manager, production helpers, supervisors, drivers, and cleaners. Hiring experienced water testing personal, machine operators and the salesperson is key to run the business.

Food Safety and Standards Authority of India (FSSAI) is the food regulatory body in India that ensures the safety and quality of food, water, and other beverages. According to FSSAI, no Food Business The operator should produce bottled drinking water without FSSAI License or Registration . Businesses cannot obtain a license without having a BIS certificate. Therefore, it is mandatory to procure a BIS certification to avoid cancellation of FSSAI registration or license. There are three types of FSSAI licenses.

FSSAI Basic License  – for retailers with an estimated annual turnover of less than Rs. 12 Lakhs.

FSSAI State license  – for estimated Annual turnover of more than Rs. 12 lakhs and less than 20 Crores.

FSSAI Central License  – for manufacturers running units in more than one state or for estimated annual turnover more than Rs. 20 Crores.

As per FSSAI, water for bottling can be obtained from surface water, underground water, seawater, civic water supply or other consistent supply of water. To obtain an FSSAI license, the rules set by FSSAI must be adhered to.

  • Water must undergo purification by decantation, demineralization, filtration (a combination of filtrations), aerations, activated carbon filtration, remineralization, reverse osmosis etc.
  • Water must be disinfected. Microorganisms must be the scientifically accepted level.
  • Seawater must be desalinized.
  •  Containers used in the plant must be sealed.
  • Chemicals and ingredients used for remineralization must be approved by food grade and pharma-grade quality.

To obtain an FSSAI License for your bottled water business, you will need the following registrations and documents:

  • SSI Registration.
  • ISI Mark Certificate (BIS Registration): BIS Registration is mandatory for the packaged drinking water in India.
  • Pollution control certificate: Pollution control certificate is issued by the Pollution Board office of the state or local government.
  • Test reports of raw water and pure water.
  • Pest control certificate.
  • Degree and medical certificate of Chemist.
  • Degree and medical certificate of Microbiologist.
  • Registration of trademark.
  • Document of ownership or lease of land.
  • Electrical department load sanction.
  • Memorandum of Association (MOA) of companies or Partnership.
  • Sanction of the layout plan.
  • NA of land if it is not in the industrial area.

Is a packaged mineral drinking water business profitable?

Both packaged drinking water and mineral water are profitable businesses. Despite heavy competition, small and medium water business players still make significant profits due to undying demand the variation in the cost of water bottles and the wide range of customers. Take additional care to create unique and personalized labels for parties and events. Focus on retaining all your existing customers.

Read More: How To Start Disposable Plastic Glasses Making Business ?

Profits on Bottled Water Business

The profit margins vary anywhere between 25% to 200%.

Normal water and Mineral water advantages and disadvantages

Normal water:  Normal is packaged drinking water or bottled water. The water from borewell, surface water or civic water is used and Total Dissolved Solids (TDS) is reduced through the RO process. It does not contain any minerals. It is relatively cheap to set up a normal water plant.

Mineral water:  Spring water or mountain water is referred to as mineral water. Water from springs or mountains is processed and minerals like sodium, potassium, calcium, etc. are used. It is healthy compared to normal water. Setting up a mineral water plant requires intensive capital.

Disadvantages of using Normal Water:-

  • Might contain toxic minerals like lead and chlorine.
  • Might contain pesticides.
  • Might contain bacteria and other harmful organisms.

Advantages of using Packaged Drinking water Business:-

  • Easy to carry.
  • Free from contamination due to pesticides, toxic minerals, and microorganisms.
  • Free from unpleasant taste and odor.

Read More: How To Start Plastic Recycling Business ?

Thoughtful promotions and marketing are necessary to compete with the competitors in the bottled water business. Understand the offerings by the small, medium and large-scale bottled water business players and craft a marketing strategy. Get creative and innovative with the promotions, packaging and bottle shapes.

  • Build corporate contacts.
  • Focus on setting up deals with retailers, hotels, restaurants, gyms and sports clubs, etc.
  • Use social media to establish your brand through Facebook, Twitter, Instagram, etc.
  • Participate in roadshows and exhibitions.
  • Encourage direct marketing and sales.
  • Target event planners for customized water bottles.
  • Sponsor a few events or programs.
  • Distribute fliers in your target location.
  • To retain existing customers, make sure the taste and quality of the water you the bottle is consistent.

Every business has its own challenges. Let’s look at the potential challenges in starting a bottled water business.

  • Bottled water business requires significant capital to set up a plant, hire a work location, transport water, purchase large machinery and run maintenance repairs.
  • Technical knowledge of machine handling, water testing is mandatory for the staff. Hiring them expensive and so is training them.
  • Bottled the water business is heavily reliant on uninterrupted power. Therefore, arrangements for generator sets must be made to ensure operations during power outages.
  • Bottled the water business is susceptible to frequent inspections to check on water quality and hygiene conditions.
  • Changing weather conditions impact availability of water and its quality so take extra care during summers and monsoons.

Water is essential for our survival and every person on earth would want to drink clean and safe water. The bottled water market is overcrowded with many small, medium and large-scale industry players but there is and there will always be scope for new entrants offering bottled water that is safe, tasty, and affordable. Focus on establishing your market reach and catering to customized orders. Restaurants, hotels, event managers are all now looking for unique and customized bottled water with personalized labels (names, logos, etc.) and added health benefits.

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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.

Water purification business plan, executive summary chart image

1.3 Keys to Success

H20 Industries’s primary keys to success are:

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

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

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

2.1 Company Ownership

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

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

2.2 Start-up Summary

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

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

Water purification business plan, company summary chart image

2.3 Company Locations and Facilities

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

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

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

Products and Services

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

3.1 Product and Service Description

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.

Water purification business plan, market analysis summary chart image

4.2 Target Market Segment Strategy

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

4.2.1 Market Trends

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

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

4.2.2 Market Needs

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

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

4.2.3 Market Growth

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

4.3 Service Business Analysis

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

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

4.3.1 Competition and Buying Patterns

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

4.3.2 Main Competitors

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

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

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

4.3.3 Business Participants

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

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

Strategy and Implementation Summary

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

5.1 Value Proposition

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

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

5.2 Competitive Edge

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

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

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

5.3 Marketing Strategy

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

5.3.1 Distribution Strategy

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

5.3.2 Positioning Statement

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

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

5.3.3 Pricing Strategy

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

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

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

5.3.4 Promotion Strategy

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

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

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

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

5.4 Sales Strategy

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

5.4.1 Sales Forecast

Sales Projections:

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

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

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

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

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

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

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

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

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

Variable Unit Costs:

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

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

Cost of replacing small amounts of lost resin.

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

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

Summary of Anion servicing costs:

  • City Water: $1.00
  • City Sewer: $0.91
  • Carbon filtering and DI: $1.80.
  • Gas to heat water: $1.08
  • Sodium Hydroxide: $3.35
  • Resin replacement: $2.60
Total for anion servicing: $10.74

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

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

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

Summary of Cation servicing costs:

  • Resin replacement: $0.60.
Total: $8.78 for cation servicing.

Costs of servicing one cubic foot of mixed bed:

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

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

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

Tank Rental Income:

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

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

Tank Sales:

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

Water purification business plan, strategy and implementation summary chart image

5.5 Strategic Alliances

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

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

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

6.1 Management Team

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

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

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

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

6.2 Personnel Plan

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

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

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

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

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

Financial Plan investor-ready personnel plan .">

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

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

7.1 Important Assumptions

Tax rate reflects the present sliding scale:

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

Inventory Turnover:

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

7.2 Break-even Analysis

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

Water purification business plan, financial plan chart image

7.3 Projected Profit and Loss

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

Water purification business plan, financial plan chart image

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.

Water purification business plan, financial plan chart image

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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