Drinking water contained in a glass or plastic container
is referred to as bottled water. The containment impacts on the environment
depending on the materials used to produce the bottles.
The water is collected and processed from natural spring
or other water sources. The water is then purified for drinking by removing
harmful agents.
There are two types of mineral water carbonated and none
carbonated. Although companies that produce bottled water have a wide range of
designs, shapes and sizes they favor three sizes.
The bottled water is produced small, medium or large. The
very large containers are usually made for water dispensers. Water bottling
companies are highly profitable and provide an essential service to a teeming
population.
Why Start
a Bottled Water Business
There are many reasons why entrepreneurs decide to
establish a water bottling business. Untreated water leads to many health
issues caused by micro organisms in the water.
They cause dangerous illnesses such ad dysentery,
diarrhea, typhoid and other serious health conditions. To combat such illnesses
people need to drink treated water thus creating a profitable industry.
This is especially true in African countries because of
poor infrastructure, water treatment or supply. Small and medium bottled water
companies fill this huge market making lots of profit.
Other reasons why bottled water is so popular is the high
demand. Apart from home use, bottled water is common at many occasions. You
find them at weddings, birthday, meetings and anniversaries.
Bottled water is more environmental friendly than sachet
water. Companies that engage in bottled water get high returns on their
investment.
The equipment used to produce bottled water is basic and
easy to operate. Apart from the huge profit potential of the business you
contribute to the development of the country by creating job opportunities.
Challenges
Startup costs for a bottle water production plant is
huge. You need adequate funding and loans from banks. The reason is because you
need funds for equipment's, leasing a property, permits, staff wages, and
company registration.
The running cost, maintenance cost, training,
transportation and handling is high. Staff wages, backup power generation add
to the cost of operations.
There is stiff competition in the bottled water business.
You need lots of marketing to reach potential customers. Acquiring appropriate
licensing and permits is a bit challenging and the business is location based.
How to
Start Bottled Water Company
Feasibility
Study
You need to carry out a feasibility study on your host community.
What are your competitors doing that your can do different. This is a question
you need to answer before setting up your factory.
Other considerations in your study are cost of leasing,
locating your business, staff wages and sourcing your product. Add a business
plan to your feasibility study to get a bigger picture.
Write a comprehensive business plan centered on
producing, water sources, equipment, storage and marketing. Fashion out a strong
operational strategy, management team and follow all legal requirements
Registration
Register your business as a limited liability company and
get a tax identification number. Go to the corporate affairs commission in your
country and choose a business name.
To operate a
bottled water company, your product will undergo rigorous testing and certification.
The regulatory agency need to know that there are no harmful agents in your
water.
Once you pass screening the product is giving an
identification number and subject to yearly tests and reviews. Find out what is
applicable in your country.
Every country has its rules and regulations binding the
business. Without proper compliance to the rules your factory will be shutdown.
Cost
of Operating a Bottled Water Business
The size of your business, machinery, number of staff
determines how much you put into the enterprise. The cost involves, leasing or
buying property, construction, transportation and scale of production.
You can outsource the bottles and concentrate on purifying
and packaging the water or produce the bottles yourself. Find out the different
equipment and manufacturers before settling on a machine.
Things to consider before selecting equipment are availability
of spare parts, and durability. Other things are cost of the equipment either locally
fabricated or imported.
Location
The location you choose depends on the availability of
water. The source of your water supply could be a natural spring or borehole.
Before committing to a location study the water level
table in the area and the kind of water available. This is very important to
the success of your enterprise.
The location
should be close to your customers to reduce huge transportation and warehousing
costs.
Haulage
To transport your products you need a heavy duty truck.
This is because bottled water is very heavy and requires lots of handling.
Trucks used to
supply bottled water are expensive rugged and should be durable. Water bottling
companies without a means of transportation are not competitive and could fail.
Outsource your Bottles to Suppliers
Outsourcing your bottle supply reduces the cost of buying
and operating your own machinery. Startup companies are up and running quicker
by outsourcing the bottles.
However as you grow consider making the bottles onsite.
Small Bottled water companies prefer plastic bottles because they are easier to
produce and handle. The bottles you use need to followed approved standards.
Staff
You need staff to run your bottled water business. The kinds
of staff you need are trained machine operators, laborers, packagers, security,
accountant and drivers. You also need sales representatives and a marketing
team.
Equipment
Bottled water equipment is locally fabricated or
imported. There are many brand names and designs that carry out the same functions.
To start your
bottled water business you need huge storage tanks, electric pumping machine to
transport your water from the borehole. Other equipments include conveyors,
water treatment plants, filler, and sealers.
You will also need water dispensers, distribution trucks
and bottle loaders.
Marketing
Bottled water business requires serious marketing to
attract customers. This is because of the huge number of brand names available
in the market.
Use newspaper advertisement and community based activities
to advertise your products. Create brand awareness through a product launch and
approach retailers.
Create a unique identity and design for your products.
Use lots of outdoor advertising and give your product a memorable name.
Do door sales and engage commission based sales
representatives. Let your host community know your brand and they will come.
Conclusion
Bottled water business is very profitable but it needs
lots of funding. You need good equipment, location, trained staff and huge
source of water.
Carry out effective marketing, get appropriate
operational permit and develop a good transportation system.
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