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Making a Risk Management Plan for Your Business
It’s impossible to eliminate all business risk. Therefore, it’s essential for having a plan for its management. You’ll be developing one covering compliance, environmental, financial, operational and reputation risk management. These guidelines are for making a risk management plan for your business.
Developing Your Executive Summary
When you start the risk management plan with an executive summary, you’re breaking apart what it will be compromised of into easy to understand chunks. Even though this summary is the project’s high-level overview, the goal is describing the risk management plan’s approach and scope. In doing so, you’re informing all stakeholders regarding what to expect when they’re reviewing these plans so that they can set their expectations appropriately.
Who Are the Stakeholders and What Potential Problems Need Identifying?
During this phase of making the risk management plan, you’re going to need to have a team meeting. Every member of the team must be vocal regarding what they believe could be potential problems or risks. Stakeholders should also be involved in this meeting as well to help you collect ideas regarding what could become a potential risk. All who are participating should look at past projects, what went wrong, what is going wrong in current projects and what everyone hopes to achieve from what they learned from these experiences. During this session, you’ll be creating a sample risk management plan that begins to outline risk management standards and risk management strategies.
Evaluate the Potential Risks Identified
A myriad of internal and external sources can pose as risks including commercial, management and technical, for example. When you’re identifying what these potential risks are and have your list complete, the next step is organizing it according to importance and likelihood. Categorize each risk according to how it could impact your project. For example, does the risk threaten to throw off timelines or budgets? Using a risk breakdown structure is an effective way to help ensure all potential risks are effectively categorized and considered. Use of this risk management plan template keeps everything organized and paints a clear picture of everything you’re identifying.
Assign Ownership and Create Responses
It’s essential to ensure a team member is overseeing each potential risk. That way, they can jump into action should an issue occur. Those who are assigned a risk, as well as the project manager, should work as a team to develop responses before problems arise. That way, if there are issues, the person overseeing the risk can refer to the response that was predetermined.
Have a System for Monitoring
Having effective risk management companies plans includes having a system for monitoring. It’s not wise to develop a security risk management or compliance risk management plan, for example, without having a system for monitoring. What this means is there’s a system for monitoring in place to ensure risk doesn’t occur until the project is finished. In doing so, you’re ensuring no new risks will potentially surface. If one does, like during the IT risk management process, for example, your team will know how to react.
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Bottled Water Business Plan Template
Written by Dave Lavinsky
Bottled Water Business Plan
Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their bottled water production companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a bottled water business plan template step-by-step so you can create your plan today.
Download our Ultimate Business Plan Template here >
What Is a Business Plan?
A business plan provides a snapshot of your bottled water company as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.
Why You Need a Business Plan
If you’re looking to start a bottled water business, or grow your existing business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your bottled water company in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.
Sources of Funding for Bottled Water
With regards to funding, the main sources of funding for a bottled water company are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for bottled water businesses.
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.
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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Other Helpful Business Plan Articles & Templates
Home » Business ideas » Food Processing Industry » Bottled Water Production
How to Write a Bottled Water Production Business Plan [Sample Template]
Are you about starting a bottled water production business ? If YES, here is a complete sample bottled water production business plan template & feasibility report you can use for FREE . Starting a bottled water business is one of the best steps to take. This is especially so because of the level of profitability in the industry. One of the thing that you should look to do before getting your business started is to do some thorough ground work and write a business plan
A Sample Bottled Water Production Business Plan Template
1. industry overview.
Bottled water is one commodity that is consumed in all parts of the world and of course those that are in the business of producing bottled water are known to generate sales year in year out if the business is well – managed. As a matter of fact, economic downturn hardly affects the consumption of bottled water simple because it is a commodity that is as important as the air we breathe in.
Production companies in the bottled water industry basically purify and bottle water into plastic and glass bottles for consumption. The bottled water are properly capped and labeled accordingly before being sold to the general public. Companies in this industry usually have an assortment of water offerings, such as spring water, mineral water, sparkling water and flavored water in a range of sizes and prizes.
Players in this industry are also involved in the manufacturing of ice manufacturing. It is common to find big corporations who are into production of soft drinks and food and beverages engage in the production of bottled water.
Research conducted by IBIS World shows that in the united states of America, the level of concentration in the Bottled Water Production industry is modest, as the top four players are expected to generate 65.5 percent of revenue.
Given the heavy bulk weight of industry products and the relatively low value per unit sold, bottled water production is generally taken on by large companies with major economies of scale and heavy investments in transportation.
While the majority of bottled water production is performed as one of many activities within the corporate portfolios of international food and beverage companies, the remaining portion of the industry’s production is performed through small-sized local players.
The Bottled Water Production industry is a thriving sector of the economy of the United States of America and they generates a whooping sum of well over $5 billion annually from more than 565 registered and licensed bottle water production companies scattered all around the United States of America.
The industry is responsible for the employment of well over 14,360 people. Experts project the bottle water production industry to grow at a 4.0 percent annual rate. The Coca Cola Company, Nestle and Pepsi Co are the world leaders in the bottled water industry; they have the lion market share in the United States of America and in most countries of the world.
Despite the fact that there are big corporations who are into the production of bottled water, the fact remains that starting a small scale bottled water production business has minimal barriers to entry, with low start – up capital. Most players in the bottled water production industry are small- to medium-size establishments that cater to the local community.
With this kind of business, if you want to start on a small scale, you can choose to start servicing your local community. All you would need is contacts, packaging, networking and good marketing and customer service skills. However, if you intend starting it on a large scale, then you should consider spreading beyond your local community to state level and even national level.
Over and above, the bottled water production industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale servicing a community or you can chose to start on a large scale with several outlets in key cities all around the United States of America.
2. Executive Summary
Sparkles® Bottled Water Production Company is a licensed and standard bottled water production company that will be located in an industrial area in Bay – Orleans, Massachusetts. We have been able to secure a long term lease for a facility in a strategic location with an option of a long term renewal on an agreed terms and conditions that is favorable to us.
The facility has government approval for the kind of business we want to run and it is easily accessible and we are deliberate about that to facilitate easy movement of raw materials (plastics and bottles et al) and finished products (bottled waters).
We are in the bottled water production business to engage in purifying and bottling water, purifying and bottling carbonated water, labeling bottled water products, promoting bottled water brands, production bottled still water, production of bottled flavored water, production of bottled sparkling water and manufacturing ice et al.
We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our bottled water the opportunity to be part of the success story of Sparkles® Bottled Water Production Company.
We are aware that there are several big scale and small scale bottled water production companies scattered all around the United States and Canada whose products can be found in every nooks and crannies of The United States and Canada.
This is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business and also for us to be able offer much more than our competitors will be offering.
We ensured that our facility is easy to locate and we have mapped out plans to develop a wide distribution network for wholesalers all around Bay Orleans – Massachusetts and the United States of America.
Much more than producing healthy, portable and well packaged bottled water, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they visit purchase any of our bottled water and also to become our loyal customers and ambassadors.
Sparkles® Bottled Water Production Company will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our Depot / Plant. We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large the numbers of our customer base may grow to. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.
Sparkles® Bottled Water Production Company is family business that will be owned by Mark Harrison Clay and Family. Mark Harrison who is the Chief Executive Officer of the Company is Graduate of Micro Biology (B.Sc.) and he holds a Master’s Degree in Business Management (MBA).
He has well over 15 years of experience working in related industry as a senior manager prior to starting Sparkles® Bottled Water Production Company. He will be working with a team of professionals to build the business and grow it to enviably height.
3. Our Products and Services
Sparkles® Bottled Water Production Company is going to operate a standard and licensed bottled water production company whose products will not only be sold in Bay Orleans – Massachusetts but also throughout the United States of America.
We are in the bottled water production business to make profits and also to give our customers value for their money. These are some of the products that we will be offering;
- Purifying and bottling water
- Purifying and bottling carbonated water
- Labeling bottled water products
- Promoting bottled water brands
- Manufacturing ice
- Still water
- Flavored water
- Sparkling water
4. Our Mission and Vision Statement
- Our vision is to establish standard bottled water Production Company whose products will be not only be sold in Bay Orleans – Massachusetts, but also throughout the United States of America and Canada, and in other parts of the world.
- Our mission is to establish a standard and world class bottled water Production Company that in our own capacity will favorably compete with leaders in the industry such as Nestle Foods, The Coca Cola Company, and Pepsi Co et al.
- We want to build a bottled water production business that will be listed amongst the top 20 bottled water brands in the United States of America and Canada
Our Business Structure
Sparkles® Bottled Water Production Company is a business that is established with the aim of competing favorably with other leading bottled water brands in the industry. This is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
Plant Manager
Human Resources and Admin Manager
Merchandize Manager
Sales and Marketing Manager
- Information Technologist
- Accountants/Cashiers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for overseeing the smooth running of the bottled water production plant
- Part of the team that determines the quantity of bottled water that are to be produced
- Map out strategy that will lead to efficiency amongst workers in the plant
- Responsible for training, evaluation and assessment of plant workers
- Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that the plant meets the expected safety and health standard at all times.
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversee the smooth running of the daily office and factory activities.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Helps to ensure consistent quality of bottled water
- Responsible for the purchase of raw materials and packaging materials (bottles, and plastics et al)
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
Accountant/Cashier
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the store manager in an effective and timely manner
- Consistently stays abreast of any new information on Sparkles® Bottled Water Production Company products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Production Workers/Machine Operators:
- Responsible for purifying and bottling water
- Handles purifying and bottling carbonated water
- Handles labeling of bottled water products
- Promotes bottled water brands
- Responsible for the manufacturing of ice
- Responsible for the bottling of still water
- Responsible for the bottling of flavored water
- Responsible for the bottling of sparkling water
- Assists in packaging and loading bottled water into distribution trucks
- Any other duty as assigned by the restaurant manager.
Distribution Truck Drivers
- Assists in loading and unloading bottled water.
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assists the transport and logistics manager in planning their route according to a delivery schedule.
- Local-delivery drivers may be required to sell products or services to stores and businesses on their route, obtain signatures from recipients and collect cash.
- Transport finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
- Inspects vehicles for mechanical items and safety issues and perform preventative maintenance
- Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collects and verify delivery instructions
- Reports defects, accidents or violations
6. SWOT Analysis
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
Sparkles® Bottled Water Production Company employed the services of an expert HR and Business Analyst with bias in start – up business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Sparkles® Bottled Water Production Company;
Part of what is going to count as positives for Sparkles® Bottled Water Production Company is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.
So also, the wide varieties of bottled water in terms of flavor, packaging and size et al that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
A major weakness that may count against us is the fact that we are a new bottled water production company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like Nestle Foods, The Coca Cola Company and Pepsi Co et al are already determining the direction of the market both in the United States and in the global market.
- Opportunities:
The opportunities for bottled water production companies with a wide range of bottled water products are enormous. This is due to the fact that almost all Americans and people from all over the world can afford bottled water and they drink it regularly.
As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market for bottled water and also to create our own new market. We know that it is going to requires hard work, and we are determine to achieve it.
We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new bottled water production company in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with the trend in the bottled water production industry, you will quite agree that despite the fact that there are competitions in different stages of the industry. That is competitions amongst bigger corporations such as Pepsi Co, The Coca Cola Company and Nestle et al and also competitions amongst smaller and medium scale bottled water production companies.
Most bottled water company are leveraging on creativity in terms of packaging and marketing to continue to stay afloat in the industry. One creativity approach that is common is ensuring that their bottled water conforms to the appropriate PH – level.
As a matter of fact it is common to find bottled water production companies especially medium scale and small scale bottled water companies specially labeling their bottled water for specific occasions to meet the demand of their clients. For example, a client that is celebrating his or her birthday may strike an agreement with a bottled water company to specially label the bottled water that will be served in the occasion to conform with the occasion.
Lastly, another trend in the bottled water production industry is the adoption of eco – friendly approach towards the production and packaging of bottled water. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.
8. Our Target Market
When it comes to selling bottled water, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who resides in our target market locations.
In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in wholesale distribution and to retail bottled water to the following groups of people;
- Restaurants and Canteens
- Event Planners, Parties and Corporate Functions
- Corporate Executives
- Government Officials
- Business People
- Celebrities
- Military Men and Women
- Sports Men and Women
- Everybody in our target market location
Our Competitive Advantage
A close study of the bottled water production industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.
We are aware of the stiffer competition and we are well prepared to compete favorably with other bottled water production companies in Bay Orleans – Massachusetts and throughout the United States and Canada.
Sparkles® Bottled Water Production Company is launching a standard bottled water brand that will indeed become the preferred choice of residence of Bay Orleans – Massachusetts and every city where our bottled water will be retailed.
Part of what is going to count as competitive advantage for Sparkles® Bottled Water Production Company is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category ( startups bottled water companies ) in the bottled water industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Sparkles® Bottled Water Production Company is established with the aim of maximizing profits in the bottled water production industry in both the United States of America and Canada and we are going to go all the way to ensure that we do all it takes to sell a wide range of bottled water products to a wide range of customers.
Sparkles® Bottled Water Production Company will generate income by selling the following products;
10. Sales Forecast
One thing is certain when it comes to bottled water production business, if your bottled water are well – packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Bay Orleans – Massachusetts and every city where our bottled water will be sold and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.
We have been able to critically examine the bottled water production industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Bay Orleans – Massachusetts.
Below is the sales projection for Sparkles® Bottled Water Production Company, it is based on the location of our business and other factors as it relates to small scale and medium scale bottled water production company start – ups in the United States;
- First Fiscal Year-: $100,000
- Second Fiscal Year-: $250,000
- Third Fiscal Year-: $750,000
N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Sparkles® Bottled Water Production Company and also the kind of distilled drinks to produce, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in our target market locations.
We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for our products to favorable compete with other leading brands in the United States of America and Canada.
We hired experts who have good understanding of the bottled water production industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Bay Orleans – Massachusetts and other cities in the United States of America and Canada.
In other to continue to be in business and grow, we must continue to sell our products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals. In summary, Sparkles® Bottled Water Production Company will adopt the following sales and marketing approach to sell our distilled alcoholic drinks;
- Introduce our bottled water brand by sending introductory letters to residence, bottled water merchants and other stakeholders in Bay Orleans – Massachusetts and other cities both in the United States of America and Canada
- Open our bottled water production company with a party so as to capture the attention of residence who are our first targets
- Engage in road show in targeted communities from time to time to sell our products
- Advertise our products in community based newspapers, local TV and radio stations
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our bottled water brands
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Despite the fact that our bottled water production plant is a standard one with a wide range of bottled water products that can favorably compete with other leading brands, we will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Sparkles® Bottled Water Production Company.
Sparkles® Bottled Water Production Company has a long term plan of distributing our bottled water in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted in Bay – Orleans, Massachusetts before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Sparkles® Bottled Water Production Company;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our bottled water brand
- Install our Bill Boards on strategic locations all around major cities in the United States of America and Canada
- Engage in road show from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
- Ensure that our bottled water is well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.
12. Our Pricing Strategy
When it comes to pricing for products such as bottled watered, there are two sides to the coin. We are aware of the pricing trend in the bottled water production industry which is why we have decided to produce various sizes of bottled water.
In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various bottled water production brands in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our bottled water brands.
- Payment Options
At Sparkles® Bottled Water Production Company, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
- Payment via check (for wholesale distributors)
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.
13. Startup Expenditure (Budget)
- The Total Fee for Registering the Business in Massachusetts – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand opening of Sparkles® Bottled Water Production Company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- Cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
- Cost for construction of a standard bottled water production plant – $100,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ( $2,500 ).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for Start-up inventory (raw materials, bottles and packaging materials et al) – $80,000
- Storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- Cost for water purifying, bottling and packaging equipment – $100,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost of purchase of distribution vans – $100,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- The cost for our opening party – $10,000
- Miscellaneous – $10,000
We would need an estimate of $500,000 to successfully set up our bottled water production plant in Bay – Orleans, Massachusetts. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.
Generating Funding/Startup Capital for Sparkles® Bottled Water Production Company
Sparkles® Bottled Water Production Company is a family business that is owned and financed by Mark Harrison Clay and Family. They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Sparkles® Bottled Water Production Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our bottled water and other products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Sparkles® Bottled Water Production Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and construction of standard bottled water plant: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members and friends: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
More on Bottled Water Production
- Business Plans Handbook
- Business Plans - Volume 04
- Bottled Water Manufacturer Business Plan
Bottled Water Manufacturer
BUSINESS PLAN
SPARKLING HORIZON BOTTLED WATER
315 Fauborg Wichita, KS 67207
Sparkling Horizon Bottled Water's business plan contains valuable financial information. Check out the Projected Cash Flow tables for the first three years of operation. The plan's owner has also included a Projected Balance Sheet and a Projected Income Statement, both of which also contain helpful information for anyone interested in starting a bottled water business.
EXECUTIVE SUMMARY
Industry analysis, market overview, business description, product description, marketing strategy, operating plan, management and staffing, funds needed and their uses, financial statements.
Demand for bottled drinking water has been growing rapidly since the 1980s, increasing nearly 400% in the last decade according to the Council of Bottled Water Manufacturers, as a result of declining consumer confidence in the safety and quality of municipal water supplies.
Bottled Drinking Water
To take advantage of this expanding market for drinking water, Sparkling Horizon Bottled Water has been established to provide home and office delivery of bottled water to the Wichita area. After months of extensive industry and market research, the company has developed a solid business plan to enter the market for bottled water.
Sparkling Horizon will generate revenue as a result of the rental and sale of water coolers, as well as for the delivery of the three types of water:pure spring water, distilled drinking water, and purified drinking water in 5-gallon bottles.
Management Team
Chantal Fuzet is the owner and president of Sparkling Horizon, bringing years of experience in water bottling and delivery to the company. Her family has operated a thriving bottled water business in Paris for over 15 years, which she helped to run.
The company has applied for certification as a woman-owned business, which is in progress.
Two key managers have been retained to assist in the operation and expansion of the company: Jean Polsky will serve as the company's Operations Manager, and Robert Blanc will be the Route Driver, an extremely important position as the primary customer contact. In addition, two commission sales associates will be hired to secure new customers.
Manufacturing
Sparkling Horizon Bottled Water will be bottled by Rue Bottling of Decatur, Illinois, who will fill the 5-gallon bottles and store them until they are needed by Sparkling Horizon, as well as accepting empty bottles, cleaning them, and refilling them for reuse.
By using free trials to entice consumers to install their water coolers, Sparkling Horizon will quickly establish a customer base. The free trial offer will be advertised through a variety of media, and will be promoted at trade shows and mall events.
The marketing budget of $25,000 will enable the company to quickly capture a large percent of the potential market. All funding for marketing activities will be generated from the business as earnings from operations, not from start-up capital, and is based on a standard 5% of first-year sales.
The market for bottled drinking water has been growing rapidly since the 1980s, increasing nearly 400% in the last decade according to the Council of Bottled Water Manufacturers, as a result of declining consumer confidence in the safety and quality of municipal water supplies. This nationwide trend is also evident in the Greater Wichita area, where Sparkling Horizon intends to operate.
In response, individuals and businesses are purchasing bottled drinking water for use in their homes and offices. Free of contaminants and government-monitored, bottled waters are derived from protected springs or wells or are produced by purifying and processing water from public water supplies. Consumer demand for bottled water is expected to continue to increase, as water supplies worldwide are deemed undrinkable or unhealthy.
According to a survey conducted by E-Works in 1988, more than 60% of consumers questioned about their purchase of bottled waters claimed "taste" was the primary reason for buying bottled water. Other reasons cited were safety and concerns about "too many chemicals in tap water."
Growth Rate
The bottled water industry as a whole has been growing at a rate of 12-15% annually since the mid-1980s. Bottled water sales increased 15.8% from February 1993 to February 1994, indicating a market rebound from the single digit growth of the late 1980s. From 1990-1995, demand for home delivery of bottled water is expected to be approximately 10.2%, with commercial distribution growing at a rate of 8.5% per year, according to the Report on World Bottled Water, 1991.
Industry Size
By far, the most popular type of water is non-sparkling water; in 1990 sales of non-sparkling water were $1,489,000,000, according to the Report on World Bottled Water Manufacturing, 1991. Total bottled water sales were $2,222,000,000, including both domestic sparkling and imported drinking waters.
Total sales of bottled water increased by more than 13% from 1989 to 1990, and have doubled in the last five years.
In terms of gallons sold, there were 1,753,300,000 gallons of non-sparkling water sold in the U. S. alone during 1990, with that number increasing to approximately.
Consumption
Per capita consumption of bottled water in the U.S. is also increasing dramatically, rising from 4.5 gallons per person in 1985 to 8.0 gallons per person just five years later, in 1990.
Approximately 1 out of every 6 households currently consumes non-sparkling bottled water as a source of drinking water. In addition, only 1% of the water being brought into a household is used for drinking; the rest is used for washing, bathing, etc.
Delivery of Water
The Council of Bottled Water Manufacturers divides the distribution channels for bottled water into: retail grocery, commercial delivery, home delivery, restaurant purchase, and vending.
While retail purchase accounts for the largest percentage of bottled water purchases (41.5%), 21.3% of sales are made through commercial delivery of water and 21.4% are through home delivery sales. The percentage of the industry that relies on water deliveries for its water is 42.7%, the largest percentage of all.
In the U.S., the average price for a 5-gallon delivered bottle of water is $5.29. An informal poll of local Wichita distributors showed that the average price in the area was also approximately $5.00 per bottle, which is what Sparkling Horizon intends to charge.
After water and delivery costs of $1.80, each bottle generates $3.49 in profit per unit for the company.
Sparkling Horizon will purchase coolers at a cost of $202.00 and rent them to customers for a fee of $10.00 per month. In just 21 months, each rented cooler will be paid for and generating profit long-term for the company.
The Council of Bottled Water Manufacturers reports that there are approximately 430 bottling facilities in the U.S., producing more than 700 different brand labels.
Following the devastating floods of 1993, water supplies in the Wichita area are still suspect, leading many residents to turn to bottled water for health reasons. However, even before the massive flooding, demand for bottled drinking water was growing.
Potential Customers
Because delivered bottled water is relatively inexpensive, virtually any household can afford to have a water cooler in their home.
The cost to rent a cooler is $10 per month, and an average household drinks 20 gallons per month (4-5 bottles), with a total monthly cost of approximately $30.
Size of the Market
The size of the non-sparkling bottled water market for the Wichita area is approximately 16,871,019 gallons per year, assuming a population size of 2,444,099 in the Wichita area (according to the 1990 Census).
The value of the local water market is approximately $13,177,220, as of 1990.
Competition
There are currently 13 bottled water distributors listed in the Wichita Yellow Pages, however only 7 companies are actively engaged in home and office delivery of drinking water. The other 6 companies are equipment sales representatives.
The 3 largest competitors are:
- Crystal Water
- Rain Man Water
- Hello! Water
However, these firms, in total, control just 5% of the potential market for bottled water, according to the local Small Business Administration office. In fact, all have stated by phone that they constantly have more orders for coolers and water delivery than they can handle, indicating strong demand for bottled water that has overrun the capacity of companies already in the market.
Sparkling Horizon Bottled Water is a regional distributor of bottled waters for use in conjunction with rented company water coolers.
Corporate Structure
Sparkling Horizon Bottled Water was established in 1995 as a Kansas corporation. Chantal Fuzet owns 100% of the stock of the company.
The trade name Sparkling Horizon is in the process of being registered, and the product logo is being finalized for imprinting on the bottles.
Spring, distilled, and purified drinking waters will be bottled by a Southern Illinois bottler who will fill the 5-gallon bottles labeled with the Sparkling Horizon logo. The refillable bottles will be collected from customers when empty and returned to the bottler bi-weekly for cleaning and refilling.
Personal Investment
Chantal Fuzet has already invested over $15,000 of her personal funds during the last year in order to thoroughly research the U.S. bottled water industry and verify demand within the local Wichita market through attendance at industry conventions and trade shows (which included attendance and travel expenses). Funds have also been invested in association memberships, logo and label creation, and professional consulting fees in order to incorporate, register the trademark, and finalize the company business plan.
Sparkling Horizon offers home and office delivery of drinking waters, as well as water cooler rentals, under the Sparkling Horizon label.
Drinking Water
The company offers three types of water in 5 gallon refillable bottles:
Pure spring water
Pure spring water is collected from protected springs and wells and contains no contaminants or additives. Consequently, it is considered to have the best taste of all drinking waters.
Distilled Water
Distilled water is produced by vaporizing water and then allowing it to condense, thereby leaving behind any dissolved minerals present in the original water.
Purified Drinking Water
Water is purified by a process of reverse osmosis, where the water is forced under pressure through membranes which remove 90% of the dissolved minerals.
Water is delivered in 5-gallon bottles made of plastic. Sparkling Horizonis the only water company in the Wichita area to offer a special new handle that makes lifting and refilling bottles much easier. Eventually, the company intends to offer smaller 2- and 3-gallon bottles of water.
Water Cooler Rentals
Sparkling Horizon will offer a variety of water coolers for rent to its customer base, including standard floor models or counter top models offering choices of cold water only, hot and cold, or room temperature and cold water dispensing.
Advantages of Water Delivery
While many consumers choose to purchase bottled water at the grocery store in small 1- or 2- gallon bottles, home and office delivery of water is increasing in popularity for several reasons:
Convenience —instead of having to lug heavy, bulky bottles all the way from the grocery store home, delivery personnel bring longer-lasting, 5-gallon bottles right inside homes and offices.
Customer service —if there is ever a problem with the water cooler, Sparkling Horizon arrives quickly to replace it, taking the faulty cooler back to the warehouse for repairs.
Monthly billing —instead of weekly trips to the grocery store, customers receive a single monthly bill based on the quantity of bottles consumed.
Home vs. Office Delivery
Sparkling Horizon anticipates that approximately 50% of its deliveries will be to homes and 50% to offices.
In order to effectively and quickly build its customer base, Sparkling Horizon intends to aggressively promote its free trial program, offering new customers the use of a company cooler for a period of 30 days free of charge and includes two free bottles of water.
In addition, the company will implement a variety of other marketing methods to complement and build on the free trial offer. Since the competition has failed to utilize other marketing methods beyond the free trials, Sparkling Horizon will quickly achieve a competitive advantage.
Marketing Methods
Free trials.
Through research done by the company, this marketing approach has been found to be extremely effective in enticing consumers to try bottled water and to become used to having a cooler nearby. Once the cooler is in place, the majority of customers find it most convenient to leave it there and order additional bottles of water from the company that provided the cooler.
Sparkling Horizon will contact free trial customers two weeks after the cooler has been placed in their home or office, when the two free bottles of water have most likely been emptied, and offer them an incentive to commit to a cooler rental agreement before the 30-day free trial is actually over. The incentive may involve free bottles of water or a reduced fee for water.
The cost to deliver and place the cooler is minimal, by comparison to the advantage of having a customer essentially locked in to having water delivered by the same company that is renting the cooler to them.
Advertising
Sparkling Horizon intends to advertise its free trial offers by way of radio ads (secured through cross-promotion deals or barter arrangements), door hangers, and ads in coupon packages. Existing competitors do not currently invest in advertising, leaving the market wide open to Sparkling Horizon.
Direct Mail
Post cards offering a 30-day free trial will also be mailed to homes and businesses in selected zip codes within Wichita.
Trade and Consumer Shows
Attendance and exhibits at local home and mall shows is also planned, to keep the Sparkling Horizon Bottled Water name constantly in front of consumers.
The company will also place coolers in public places frequented by health conscious consumers, such as pharmacies and hospitals.
An annual marketing budget of $25,000 has been established for the first year of operation, based on a calculation of 10% of first year sales of $247,928. This funding will be generated from profitable operation of the business and not from the start-up capital.
Competitive Advantage
Sparkling Horizon will quickly establish itself in the Wichita market as a top quality provider of bottled water. The company will do this by emphasizing superior customer service in all aspects of the company operations.
One major component of ensuring that customers are delighted with Sparkling Horizon's products and service, is the appointment of a talented and outgoing route delivery person who is responsible for monitoring customer satisfaction and for pursuing new business. Part sales person and part delivery person, Robert Blanc has been hired for this important role at Sparkling Horizon.
Spring, distilled, and purified drinking waters are bottled by Rue Bottling of Decatur, Illinois, who will fill the 5-gallon bottles labeled with the Sparkling Horizon logo. The plastic, refillable bottles will be collected from customers when empty and returned to the bottler bi-weekly for cleaning and refilling.
Plastic is preferred as the bottle packaging because it is lightweight, unbreakable, and inexpensive to produce and ship.
The company will operate from approximately 2,600 sq. ft. of warehouse space in Wichita county, with a portion of that space being set aside for office space. Sparkling Horizon is currently working with county officials to identify and negotiate the lease on an appropriate site.
It is expected that the route delivery person will make approximately 40 deliveries per day, or 400 per month. One delivery person will be needed at the start and an additional delivery person will be added when the number of monthly deliveries exceeds 1,600, which is anticipated at the end of the fourth month of business.
Through Sparkling Horizon's agreement with Rue Bottling, Rue's product liability insurance will cover any such claims against Sparkling Horizon. Sparkling Horizon will also carry its own insurance, including a $ 1 million umbrella liability policy.
Future Plans For Bottling
Once Sparkling Horizon achieves a customer base of 3,000 or deliveries of 12,000 bottles per month, the company will begin to investigate investing in equipment to bottle water in-house. An investment of approximately $200,000 would be needed in order to purchase the bottling equipment.
Chantal Fuzet has been involved in the water industry virtually all her life. From an early age, she sold and delivered ice and water to local residents for her family's water business in Paris. This experience familiarized her with all aspects of production, delivery, marketing, accounting, and collections.
Since moving to Wichita, Ms. Fuzet has carefully researched the opportunity to start a similar bottled water business in the area.
Chantal Fuzet
In addition to developing a strategy for entering the market by purchasing needed equipment and supplies, Ms. Fuzet has already identified a bottler who will bottle and store water for Sparkling Horizon and has invested personal funds to trademark the name and logo associated with "Sparkling Horizon Bottled Water."
Ms. Fuzet will continue to manage all strategic planning, marketing planning, staffing, and accounting activities for Sparkling Horizon, building on her experience in the bottled water industry.
Her involvement in the Council of Bottled Water Manufacturers will keep her well-informed of market changes and opportunities. As a member of the U.S. Women Business Owners Council, Ms. Fuzet has the opportunity to network with and learn from successful women business owners in the Wichita area and on a national basis.
The Kansas Department of Commerce is in the process of certifying Sparkling Horizon Bottled Water as a woman-owned business.
Ms. Fuzet has secured commitments from two experienced and talented individuals who will be responsible for daily operations and for delivery of the water.
Jean Polsky will assume responsibility for training sales representatives and route delivery personnel, implementing the company's marketing plan, and delivering coolers as needed to new customers. Robert Blanc will become the company's primary route delivery person, serving as the key link between Sparkling Horizon and its customers.
Jean Polsky
Jean Polsky has counseled small businesses for several years as an independent consultant, on issues related to operations, marketing, and training. Mr. Polsky intends to apply the experience he has gained in his work with clients to Sparkling Horizon. This knowledge of training, marketing, and operations is directly applicable to Ms. Fuzet's new business.
Robert Blanc
Robert Blanc has worked for several companies during his career, using his knowledge of employee management, operations, and machine repair to succeed in each position. Because of his outgoing personality, talented management style, and interest in working hands-on within a smaller company, Mr. Blanc has been invited to join the Sparkling Horizon management team. His initial responsibilities will consist of cooler delivery and customer interaction in order to build the company's customer base quickly.
Sales Staff
Sparkling Horizon will hire two commissioned sales people who will focus on placing new water coolers in offices and homes. In return for each new placement, the sales person will receive an amount equal to the first and last month's rent on the cooler in payment, after the customer has completed the free trial period and has committed to cooler rental. It is expected that sales people should be able to make at least $80-90 per day, based on placing just 4 coolers.
In order to start and establish Sparkling Horizon Bottled Water as a leading supplier of quality bottled drinking waters, funding is required in the amount of $93,500 and will be utilized as follows:
Capitalization plan
Assumptions
- Bottle and cooler by month
- Selling price of $5.29 per delivered bottle
- Cooler rental of $10.00 per month
- Cost of sales of $1.80 per delivered bottle
- Payroll expenses assume 1 route driver from January to May and a 2nd driver from the end of May through December
- Payroll taxes: FICA - 7.65%, SUTA -4.00%, FUTA - 0.80%
- Vehicle gas costs of $25 per day per truck
- Vehicle lease costs assume a $20,500 van financed at 9% for a 5 year term, with a $6,000 down payment
- Loan of $78,500 financed at 9% for 7 years
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How to Start a Bottled Water Business
Bottled water businesses deal in the bottling and distributing of drinking water to consumers. Whether purified, distilled, or natural spring water, your bottled water business will supply your customers with ample hydration. Taking the steps to start your own bottled water business can be a satisfying experience that allows you to make money while also helping your customers achieve a healthy lifestyle.
Ready to form your LLC? Check out the Top LLC Formation Services .
Learn how to start your own Bottled Water Business and whether it is the right fit for you.
Start a bottled water business by following these 10 steps:
- Plan your Bottled Water Business
- Form your Bottled Water Business into a Legal Entity
- Register your Bottled Water Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Bottled Water Business
- Get the Necessary Permits & Licenses for your Bottled Water Business
- Get Bottled Water Business Insurance
- Define your Bottled Water Business Brand
- Create your Bottled Water Business Website
- Set up your Business Phone System
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your bottled water business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas .
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
How much can you charge customers?
What will you name your business.
Luckily we have done a lot of this research for you.
What are the costs involved in opening a bottled water business?
Costs for starting a water treatment plant include storage tanks, filling machines, water treatment machines, filters, conveyors, sealers, water sterilizers, water dispensers, bottle loaders, trucks, and employees to work in the plant.
Startup costs can range from $500,000 to $750,000 for a “bare bones” plant. However, some plants may require more capital, up to $1.5 million, or more, depending on the size of your operation.
You will also need a license from the U.S. Food And Drug Administration (FDA). You will also need a permit from your state health department.
Finally, you’ll need a dedicated bottle supplier, a water source, and employees to run your plant. This is a very labor-intensive job.
What are the ongoing expenses for a bottled water business?
Ongoing expenses are extensive. Maintenance on the plant can cost tens of thousands of dollars every year for a small plant, and as much (or more) every month for a medium to large-scale bottled water plant.
Utility costs can also be high, due to the process of purifying and bottling water.
Labor costs are also high, as most employees expect a full-time salary, plus benefits. Liability insurance, health insurance, unemployment insurance, 401(k) matching and administrative services, and worker’s compensation insurance can run tens of thousands of dollars per month.
Who is the target market?
Customers are usually commercial enterprises like local grocery stores. However, some small companies do sell directly to consumers or to businesses.
How does a bottled water business make money?
A bottled water business makes money by charging customers for processing and bottling potable water.
Bottled water has a high markup. If you are selling to grocery stores, you may be able to charge $1 to $2 per bottle, or a flat rate per truckload or pallet. Most companies make arrangements for regular shipments to establish themselves as “anchor customers.” You may or may not sell your products for a lower price to get these deals, but will generally increase revenue as a result.
How much profit can a bottled water business make?
Profits can range between 100% and 500%, or more.
How can you make your business more profitable?
Your business can become even more profitable by entering niche markets such as flavored bottled water, sparkling water, spring water, and mineral water. Some companies have specialty lines of water, which include flavored mineral water, flavored sparkling water, and sports drinks.
Finally, consider offering designer waters, seltzer waters and club soda, and flavored soda.
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Bottled Water Business Name Generator
If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
When registering a business name , we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability .
It's very important to secure your domain name before someone else does.
Find a Domain Now
Powered by godaddy.com, step 2: form a legal entity.
The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your bottled water business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Have a Professional Service Form your LLC for You
Two such reliable services:
You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
- Sole Proprietorship vs LLC
- LLC vs Corporation
- LLC vs S Corp
- How to Start an S Corp
- S Corp vs C Corp
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 .
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
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.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended : Read our best net 30 vendors , guide and start building business credit.
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 Divvy and build your business credit quickly.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
Federal Business Licensing Requirements
The Food and Drug Administration (FDA) regulates bottled water. FDA regulations for bottled water include Good Manufacturing Practices (GMPs), standards of identity and labeling requirements.
A detailed description of regulation, licensing and labeling requirements can be found here .
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a bottled water business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources .
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.
Learn more about General Liability Insurance .
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.
Recommended: Learn what business insurance for your Bottled Water Business will cost.
Business Insurance for Bottled Water Business
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.
Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a bottled water business
Marketing and distribution is key in this business. Your target market should be grocers, vending machine companies and operators, stadiums, event locations, and other large-scale commercial enterprises and operations that need high volume bottled water supplies.
How to keep customers coming back
Make sure you deliver on your promises and be competitive on your pricing. This is a highly commoditized industry. Often, it’s the business that meets deadlines and has the lowest (or at least competitive) pricing that wins.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
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.
Using our website building guides , the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
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.
Start a Bottled Water Business in your State
- Connecticut
- District of Columbia
- Massachusetts
- Mississippi
- New Hampshire
- North Carolina
- North Dakota
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
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Welcome to the Startup Savant podcast , where we interview real startup founders at every stage of the entrepreneurial journey, from launch to scale.
Is this Business Right For You?
This business is perfect for individuals who are passionate about their health or are health conscious and want to run a business that promotes a healthy lifestyle.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
Entrepreneurship Quiz
What happens during a typical day at a bottled water business?
The day-to-day operations of a plant depend largely on the type of plant you run.
There are many different ways to process bottled water. Spring water is one of the most common. It comes from an underground formation and flows naturally to the earth's surface. Purified drinking water is one that is processed to remove chlorine and other contaminants. Unless your plant processes public sources of water, like municipal drinking water, you are not usually required to disclose where you sourced it.
Natural sparkling water is naturally carbonated water from a spring or well. Mineral water comes from a spring and contains dissolved minerals like magnesium, calcium, sodium, potassium, and silica and bicarbonates. Finally, seltzer water is an FDA-regulated soft drink product.
The day-to-day operations include bringing in water from an outside source and bottling it. During this process, there are many intermediary steps, including sanitising containers, preparing bottles preparing and filtering the water, and setting up packaging protocols to ensure that the water is ready to be shipped.
What are some skills and experiences that will help you build a successful bottled water business?
You will need business experience, contacts in the industry, and a working understanding of how water is purified. No degrees are necessary but you may need special permitting and licensing from the government. Most owners and managers of a bottled water business have extensive management experience, especially in a related industry.
What is the growth potential for a bottled water business?
Growth potential is virtually unlimited. Companies like Nestle own massive water processing and treatment plants where they produce bottled water for countless grocery stores and make billions in profits every year.
Most bottled water plants start life as small or medium-sized plants.
You can grow your business at a rapid pace by taking on outside financing from a bank or venture capital firm. Or, you can grow more organically from sales profits. Growing through leverage (bank loans) has its advantages. For example, your profits are likely to climb quickly on momentum. This can shortcut the time it takes you to grow and meet your revenue growth targets. However, it can also saddle you with creditors who want to see target revenue and profit targets that are too optimistic.
Growing organically is prevents this from happening, but it also slows growth and might prevent you from growing beyond a certain size.
TRUiC's YouTube Channel
For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.
Take the Next Step
Find a business mentor.
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a bottled water business?
Spend time finding a sustainable water source for your operation. Your water source will greatly influence your profits. If you find a source that costs $3 to $5 per 1,000 liters, this is going to result in a higher profit than if you’re paying the same amount for 100 liters of water.
How and when to build a team
You must begin building a team immediately. A bottled water company cannot operate as a solo or one-person company. You will need at least 20 to 50 employees to start, and you should scale up within the first 3 years to at least 50 to 100 employees, or more.
Get more ideas with our Business Ideas Generator .
Check out our How to Start a Business page.
Sign up at the Business Center to access useful tools for your business.
Useful Links
Industry opportunities.
- International Bottled Water Association
- International Council of Bottled Water Associations
- Water to Go Franchise Opportunity
Real World Examples
- Lithia Spring Water
- The Mountain Valley Spring
- Arbor Spring Water
Further Reading
- How to Start a Bottled Water Production Company in 20 Steps
- Important Points to Think About Your Business Plan
- Licensing & Labeling in the Bottled Water Business
- Source Water Development
Related Business Ideas
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Coffee Roasting Business
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Microbrewery
Water Refilling Business
Water Delivery Business
Have a question leave a comment.
The World's Leading Business Plan Template Directory
Bottled Water Business Plan Template [Updated 2023]
I. executive summary.
This Section's Contents
Business Overview
Products served, customer focus, management team, success factors, financial highlights.
[Company Name], located in [insert location here] is a new bottled water company that focuses on providing high-quality, filtered bottled water. The company uses proprietary technology to filter its water and provide the best tasting water in the industry. The company also plans to distribute their bottled water to retail locations throughout the United States.
[Company Name] will provide a variety of different types of bottled water. Products will include mineral water, spring water, purified water, sparkling water, artesian well water and alkaline water.
Products are focused on providing healthy and nutritious beverage options for an individual to achieve maximum hydration.
[Company Name] will primarily serve the residents within a 5 to 10-mile radius of our location. The demographics of these residents are as follows:
- 195,203 residents
- Average income of $46,000
- 49.3% married
- 40.5% in Mgt./Professional occupations
- Median age: 43 years
[Company Name] is led by [Founder’s Name], a local dietician who runs a private practice in [location]. She has studied nutrition, diet, and exercise and has been running a successful practice for over 20 years. She has written books, journal articles, and presented at numerous health conferences. [Founder] has studied the effects of properly bottled water for health benefits and has developed a proprietary system for filtering water while maintaining all of the crucial vitamins and minerals of well and tap water.
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The company will be providing a valuable product to those seeking the most beneficial water source for their active lifestyles.
- The company is in a high-volume area that is near to hospitals, schools, gyms, and recreation centers.
- The management team has a track record of success in the nutrition industry and is a proven expert in the field.
- The pricing model is formulated to be slightly higher than the competition as it is a higher-quality product, but low enough that customers will perceive value when consuming.
- [Company Name] will be sold in most grocery stores and convenience stores.
[Company Name] is seeking total funding of $225,000 to open its bottled water manufacturing and distribution company.
- Factory design/build-out: $100,000
- Equipment and supplies: $75,000
- Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Comments are closed.
Bottled Water Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
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- Sample bottled water factory building plan for succeeding
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Bottled water is drinking water that has been packaged in glass or plastic bottles, and it can be distilled water, spring water, or mineral water. Bottled water is available in two varieties: carbonated water and noncarbonated water . Your bottled water business, whether purified, distilled or natural spring water, will keep your customers hydrated.
Do you want to begin a bottled water manufacturing company? If you answered yes, here is a guide on how to write a bottled water factory building plan . It is without a doubt a very lucrative industry that can make one a millionaire if everything falls into place. Bottled water is a commodity consumed throughout the world, and those in the business of producing bottled water generate sales year after year if the business is well–managed.
Reasons you should have a bottled water factory building plan
Bottled water comes in a variety of sizes, from small single-serving bottles to larger ones. Now, establishing a bottled water factory is probably one of the best business decisions you can make, especially if you plan to do business in a populated country. For those skeptical about this business, here are some reasons you should build a bottled water factory building plan .
Water is in high demand in the market
Water is always in demand because it is essential to life, and everyone requires it. The economic downturn has little effect on bottled water consumption because it is a commodity as important as the air we breathe. Bottled water production companies essentially purify bottled water before packaging it in plastic and glass bottles for consumption. That is why the business is very profitable.
A growing awareness of the importance of health consciousness
People are becoming more health-conscious as they watch what they eat and drink to avoid diseases like typhoid, cancer, and obesity and live longer. Therefore, there is a greater demand for bottled water, particularly bottled mineral water.
The profit margin is extremely high
Water, the most important raw material used in bottled water production, is widely available for free. You will have an endless supply of water once a borehole is drilled and set up. Other manufacturing materials can be purchased on the market or outsourced (bottles and labels ).
Create employment opportunities for people
Producing bottled water is not one that a single person can complete. You will need to hire people to assist you with tasks such as cleaning the containers, operating the machines, distributing the bottled water, loading distribution trucks or vans, and so on.
If you can’t afford to start your own bottled water company , you can still profit from the booming industry by starting a bottled water delivery service from home.
Sample business plan template for bottled water factory building
When writing your bottled water factory building plan , be conservative regarding income generation and sales projections. It is preferable to be on the safe side, so when calculating your future income, use the lower range figures rather than the upper range.
A well-thought-out plan is essential for achieving success as an entrepreneur. It will assist you in mapping out the specifics of your business and uncovering some unknowns. Here are a few things to consider:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
What will you name your business?
Suppose you don’t know how to create a detailed bottled water factory building plan . In that case, you can hire a business consultant who has experience creating business plans for many businesses.
Aside from serving as a guide, your business plan can also request a loan from a bank if you need one in the future. So, to avoid rejection, you will need to invest in a good business plan.
Take your time researching the industry to ensure that your bottling business plan is complete and without gaps.
It is widely assumed that by carefully following the steps outlined in the sample, in no time at all, you’ll be well on your way to producing an excellent bottled water business plan.
What are the costs of starting a bottled water business?
Storage tanks, water treatment machines, filling machines, filters, conveyors, sealers, water dispensers, water sterilizers, trucks, bottle loaders, and employees to work in the plant are all costs for starting a water treatment plant.
You will also need a Food and Drug Administration license in the United States (FDA). A permit from your state’s health department is also required.
Finally, you’ll need a water source, dedicated bottle supplier, and employees to run your plant. It is a very time-consuming job.
What is the ongoing cost for a bottled water factory?
The ongoing costs are substantial. Maintenance on a small plant can cost tens of thousands of dollars per year, and a medium to large-scale bottled water plant can cost as much (or more) per month. Utility costs can also be high because of the purification and bottling of water.
Labor costs are also high because most employees expect to be paid a full-time salary plus benefits. Liability insurance, health insurance, unemployment insurance, administrative services, and worker’s compensation insurance can all run into the tens of thousands of dollars per month.
Who is the target customer market?
Because every live human will require potable drinking water at various points during the day, the target market is all-encompassing. However, your major target will be the most mobile sector of the population who are continuously on the move, whether at work or simply relaxing in the park, such as corporate participants, athletes, the military, shoppers, pedestrians, and so on. Because of their work or schedule, it is assumed that they will always demand water for replenishment.
Besides, customers are typically commercial enterprises, such as local grocery stores. Some small businesses, however, sell directly to consumers or businesses.
How much money can you charge your customers?
Bottled water has a high markup. You might charge $1 to $2 per bottle or a flat rate per truckload or pallet if you sell to supermarkets. Most businesses arrange for regular shipments to establish themselves as “anchor customers.” You may or may not sell your products at a lower price to get these deals, but your revenue will increase.
How to increase the profitability of your company
Entering niche markets such as flavored bottled water, sparkling water , spring water, and mineral water can help your business grow even more profitably. Some companies offer flavored mineral water, flavored sparkling water, and sports drinks as specialty water lines.
Finally, consider offering designer waters, seltzer waters and club soda, and flavored soda. Tan Do is a healthy fruit juice and coffee company operating in Vietnam, providing the best quality beverage to consumers at competitive prices.
Choosing the right name is both important and difficult. If you run a sole proprietorship, use a business name other than your own.
When registering your business name, we recommend doing the following research:
- Your state’s business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It is critical to register your domain name before someone else does.
Which options for payment?
The availability of multiple payment channels ensures your customers are not concerned about how they will be billed. The channels you should provide include POS, cash payments, cheque receipts, mobile money transfers, and so on.
How about startup funding?
Funding for this business will come from the following sources: personal savings, which will cover half of the startup costs; another source of funding will be debt financing, which will get from a reputable bank. It will cover the remaining half of the funds required to launch this business.
This sample business plan outlines the essential elements of a good bottled water and mineral business plan template. If you stick to the format, you will create a solid bottled water factory building plan that will perfectly reflect your business and win you that loan you so desperately need.
Tips for running it successfully
As the CEO of a bottled water manufacturing company, it is your responsibility to steer the company in the right direction. It would be beneficial to schedule office meetings to discuss challenges, feedback, projections, and relevant issues. Meetings could take place on a daily, weekly, biweekly, or monthly basis. The bottom line is that your organization should hold regular meetings.
Conducting regular appraisals and training your employees will assist you in running your organization effectively. Encourage your employees to pursue certifications in their various areas of specialization; it will benefit your organization’s profile and the individuals. You can choose to sponsor all or some of the certifications.
Locate a long-term water source for your business. Your water source will have a significant impact on your profits. If you can find a source that costs $3 to $5 per 1,000 liters, you will make more money than if you pay the same amount for 100 liters of water.
Finally, it would help if you remained open to suggestions from members of your team and clients. It is critical to recognize and reward exceptional performance in your organization; this will encourage healthy competition.
You can easily start a commercial bottling business if you have a detailed bottled water factory building plan . The task is simple because it comprises doing the same thing every day. It is also not capital intensive. Hope you will succeed!
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Bottled Water Business Plan
If you are starting a bottled water company, it is likely that you will need a business plan at some point. The experts at Pro Business Plans have extensive experience preparing plans for investment and strategy. This article provides information on what is included in a bottled water business plan and its structure.
There are several things to consider when creating a bottled water company that investors will consider when analyzing the profitability of your company. Among the most important include the area of your target location, market positioning, and supply chain. Some bottled water companies seek positioning by appealing to the premium/luxury segment of the market, whereas others target the price sensitive demographics or tap into philanthropic initiatives in order to strengthen its strategy.
Business Model
The business model for a bottled water company encompasses many elements from the market positioning ( value proposition ) to your approach of getting the bottled water into the stores of your customers. The key to building a great business model is to make everything synonymous, while still being profitable. If your brand targets philanthropy , such as donating water for each bottle sold, then it should communicate this through the brand and advertisements. If on the other hand, you’re targeting a low budget market, it may make more sense to focus on the cheapest sourcing options and have no promotions that will increase your overhead expenses.
Value Proposition
There are an exceptionally large amount of competitors within the bottled water industry that are essentially selling a free commodity in most countries. Granted in some economies, bottled water is a necessity, much of the Western world has these resources readily available at no cost. Therefore, finding some unique value proposition to drive your market positioning is crucial to accomplish long-term positioning success. If you can manage to finagle your way into the store, you must also follow-up with persuading consumers to buy your product.
Operations Plan
The operations section of the business model incorporates the entire supply chain from procurement to distribution and sales. The nature of the supply chain will influence your company’s profitability. Bottling the water from some premium source that is either rare or claims to have a higher degree of ‘purity’ would increase the costs considerably. Using premium packaging like glass or a thicker plastic will also increase the costs, but to the benefit of increased visibility. Whatever your value proposition, the supply chain must reflect it accordingly.
- Marketing Plan
When it comes to bottled water that appears to anyone but the price sensitive market, the market strategy is critical to success. Your company must find a way to communicate the quality of the brand including the source, packaging, and lifestyle that it communicates. Premium bottled water is not just about good taste, it is about a lifestyle of luxury and status that accommodates driving a premium vehicle or living in a luxury apartment. Similarly, other positioning is about lifestyle from philanthropy to family and conservativism. Each component of your marketing strategy from public relations to in-store promotions should reflect the lifestyle that you’re seeking to build for your customers and brand.
Market Positioning
When it comes to effective brand positioning, few things are more important in the bottled water industry (outside of the price sensitive market). Research has suggested that many consumers can be loyal to a beverage aside from any intrinsic difference that beverage may have from its competitors. Therefore, it makes sense to focus on the positioning in a way that builds brand loyalty and communicating these points in the bottled water business plan.
Promotion Strategy
The promotions for a bottled water company depend upon several factors including the overall strategy of the positioning and where the brand will be sold. Most decisions for bottled water are made at the isle, so many brands will invest into in-store displays that communicate the positioning of the brand and convey its identity in a way that outperforms most other companies. Some bottled water companies go so far as to implement an influencer marketing campaign or public relations that attempts to establish a lifestyle around their brand.
Financial Projections
The financial forecasts for a bottled water company are generally based upon several points including the assumptions as drivers into the revenue projections and a detailed budget breakdown associated with the expenses. The most effective way to perform these projections is to base them off the historical operating performance that your company already generates. For instance, it may asses the historical performance and how an injection of funds will influence the performance of the company in terms of both revenue and expenses.
Revenue Projections
There are several methods of preparing the revenue projections for your business. Among the more popular methods is either using the historical performance of your company or analyzing similar bottled water companies and how their revenue projections are impacted. If you are launching a new company, however, be careful to not be overly optimistic and expect that your sales will rival existing companies as it can take some time to establish a consumer base that your competitors will likely already have.
Budget Forecasts
The budget will be most important if your company is requesting financing from banks or investors . Both parties will want to understand exactly where the money that they are contributing is going in terms of what expenses and assets will serve as the primary drivers for the capital contribution. Investors generally like to see that the money is being used for expansion and ideally being allocated towards assets rather than operating capital, as such is a lower risk and can easily be liquidated in your business underperforms. However, it is important to be honest and conservative when forming the budget request.
What is Included in Our Custom Bottled Water Business Plan?
- SWOT Analysis
- Competitive Analysis
- Profitability Analysis
- Personnel Plan
- Organizational Chart
- Company Valuation
- Executive Summary
- Company Description
- Keys to Success
- Three Year Objectives
- Product or Service Description
- Market Research
- Fundraising Support
- 12 Month & 3 Year Profit & Loss
- 3 Year Balance Sheet
- 12 Month & 3 Year Sales Forecast
- 12 Month & 3 Year Cash Flows
- Break-Even Analysis
- Financial Ratio Analysis
- Management Team
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Business Plan For Water Bottling Company Paperback – April 7, 2020
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The workbook will guide you through the process you need to follow. It tells you the questions that you need to consider, the numbers you need (and how to get them), and supporting documents you need to gather.
The main purpose of a business plan is to aid YOU in running YOUR business. So the workbook has been designed for you to write the information in and refer back to as needed. If you need to supply your Business Plan to another party, such as a bank if you’re looking for finance, then it’s simple to type up the various sections for a professional document.
Running your own business is both a challenging and daunting prospect. With a well-thought-out business plan in place (anticipating the challenges you’ll face AND the solutions) it will be much less daunting and much more exciting.
- Print length 30 pages
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Starting Bottled Water Business Plan (PDF)
The bottled water business industry has been steadily growing all across the world. This is due to a plethora of reasons which vary from place to place. For instance, big beverage companies have diversified into bottled water as one of their products over the years. Due to their wide reach it means bottled water has increasingly become more available than ever before. In some parts of the world the surge in mineral water businesses has been triggered by lack of access to clean and reliable water. Thus for drinking purposes or other related uses people there now prefer to use bottled water. Another interesting factor is global warming which has seen temperatures getting much higher in most parts of the world. This has resulted in the increased demand for commercially produced mineral water. Bottled water offers convenience and tends to taste better. Plus there is general perception that bottled water is safer. That is why starting a bottled water business can pay off immensely. All this is meant to show you that starting a bottled water business is a noble idea. This article will outline how to start a bottled water business, and the bottled water business plan (PDF, Word & Excel).
Market Research
The most important aspect you will look at here is finding out about existing players to draw insights from them. The market for bottled water is usually available anywhere but it is important to know of any competitors beforehand. Your focus will be to learn how they conduct their businesses paying particular attention to scale of operation, water sources, processing methods, target clients, pricing, marketing approaches and so on. Knowing these things will be central to your ultimate unique selling point. Things like packaging and pricing can put you over your competitors if well considered. As much as many players already exist and more are entering the bottled water business field, there is always a market segment that is unattended or insufficiently attended. Thus it essential to have a detailed mineral water business before you start.
Location, Premises And Equipment
In your choice of location of the purified water business, there are some considerations that you should make. Since any bottled water business entails the need to have a seamless distribution framework, it is a factor to consider. This means you must chose a location connected to strategic road networks for easy accessibility to clients and suppliers and the ultimate distribution of the bottled water. How secure is the location you are choosing – that is another important factor to consider. What about availability of water supply? Proximity to prospective clients, suppliers and human resources is also very vital. The mineral water business plan should include the costs of purchasing or leasing the premises.
The core thing you must work on from the onset is a water treatment plant. Some of the basic inclusions are bottling machines, filling machines, purification and treatment machines, labelling machines and a water source eg a borehole. The specific equipment you need will depend on the water purification methods you are going to use for your business. For example if you decide to purify water using reverse osmosis, that means you will require reverse osmosis machinery. Water storage tanks are also required. The costs of all the equipment should be catered for in your purified water business plan.
Types Of Bottled Water
There are different types of bottled water. In fact, there is still an evolution that is leading to the emergence of new types of bottled water. Your bottled water business plan should outline the type of water you are selling.
Mineral Water
This is water comprising of substantial amounts of dissolved minerals. Some of those minerals are calcium, sodium, and magnesium. Typically the water would have also gone through certain processes such as aeration or filtration. Note that there are strictly no chemical processes involved here. This water would have been sourced from some underground source. There must be ascertained and provable pollution-free qualities regarding the source. Most importantly, the water must have certain stipulated minerals in certain prescribed concentrations. That is what can earn it the label of ‘mineral water’.
Spring Water
This is water that would have been sourced from a spring. It is important to note that most of what is termed spring water is not from springs. It is usually a marketing gimmick and the water is often just tap water. Thus if you are going to sell spring water it must truly be from a spring. People often use ‘mineral water’ and ‘spring water’ interchangeably. This is because there are some similarities. Often time the distinction is that spring water is specifically sourced from a spring.
Purified Water
This is water that would have undergone a number of purification processes. These purification processes will be meant to get rid of chemical and solid contaminants. The original source of the water can be tap water or ground water. The common purification processes involved are filtration, reverse osmosis, and distillation, amongst others.
Sparkling Water
This can also be called soda water; it is also known as carbonated water. When you drink it feels as if you are drinking a fizzy drink. That is why some call it fizzy water. It is also commonly known as club soda. Sparkling water is a result of infusing water with carbon dioxide under pressure.
Flavoured Water
This is water that would have had natural or artificial flavors added to it. The flavors can be added as one or as a blend of several flavors. They are usually fruit flavors e.g. lemon, lime, orange, raspberry, mint, and blackberry, amongst others.
Staff And Management
This depends on the scale of operations and level of sophistication of your purified water business. Anything from 6 employees going up will do for a small-scale factory. The idea is there are pertinent areas that needed to be manned e.g. management, production, financial management, sales, distribution, and housekeeping amongst other areas. Your bottled water business plan should cater for the wages and employees of all your employees.
Customer Segmentation
Primary usage.
Customer segmentation for the bottled water production business is informed by several variables. For example, the primary usage of the bottled water can give an idea. Bottled water can be for everyday use, it can be sporting use, or it can be travel. These examples translate into customers segments with specific needs or preferences.
Type Of Bottled Water
Customer segments are also a function of the type of bottled water in question. For instance, in many places the most consumed type of bottled water is purified water. Consumption dynamics for the different types of bottled water helps you understand the customer segments.
Distribution Channel
People purchase their bottled water from different outlets. Maybe they purchase from supermarkets or shops. Zoning in on one you can know whether or not they buy in bulk. There will be much to learn about customer segments by looking into the various distribution channels.
Marketing Plan
Bottled water is the easiest to market. You just have to ensure your bottled water is properly branded. The best marketing strategy is to get your bottled water in front of as many people as possible. Avail it to commercial buildings, have it used at all sorts of events. You can target hospitality and catering outlets. Target wellness and fitness centres. Sporting events are also a strategic focus. Find ways to sell your purified water there or promote it through those locations. Sponsor worthy causes by donating free bottled water. Have it sold in supermarkets and shops. Consider traders especially street vendors, where applicable. These people can push your mineral water brand faster, far, and wide. In principle, have a wide distribution network so that people see your bottled water brand everywhere. Consider working with social media influencers and even celebrities if possible. Build a website and have active social media accounts to publicize your bottled water brand. Leverage on print and electronic media as well. A proper marketing strategy should be included in your bottled water business plan.
Approaches For Bottled Water Business
Regarding bottled water there two types of service providers, namely, large-scale and small or medium scale. The large scale ones tend to be companies already established like Coca Cola as an example. This can be an approach to take i.e. starting large-scale but this is not a smart move because it is costly. Most preferably you must start small or medium scale by targeting reasonably-sized markets e.g. small towns. Then depending on the performance of the bottled water business you scale up operations in due course. In order to push sales there is a unique strategy one can use for their bottled water. You can always have an eye out for big events such entertainment or corporate events. You go ahead and pitch up an idea to supply them with custom-labelled bottled water. Many people will jump onto that since it would give an exclusive flare to an event. In terms of sales you can also enter working agreements with big clients such as food outlets, hospitality spots (e.g. hotels, spars) and so on. This will be strategic in that you guarantee a steady and consistent flow of repeat purchases.
Do not be hesitant to start a mineral water business because it is not that difficult to start one. The demand for bottled water is very high and will always be so you can always carve out your own niche. Just adhere to strict codes of quality assurance and integrity – do not be one of those frauds who package unsafe water as bottled water yet it is neither treated nor purified. It is wise to take insurance cover and to make sure you have all the required certification or licenses that might be mandatory. Find out about this from local authorities, health inspection boards, environmental agencies and the like. Packaging and pricing are crucial but to top it off you must have a robust and active marketing strategy using all available channels.
Pre-Written Bottled Water Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements
For an in-depth analysis of the bottled water manufacturing business, we encourage you to purchase our well-researched and comprehensive bottled water business plan. We introduced the business plans after discovering that many were venturing into the purified water business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.
The StartupBiz Global mineral water business plan will make it easier for you to launch and run your water bottling plant business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. This is a complete business plan for a packaged water business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the purified water business.
Uses of the Mineral Water Business Plan (PDF, Word And Excel)
The bottled water business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your bottled water business
- As a mineral water business proposal
- Assessing profitability of the bottled water business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Bottled Water Business Plan (PDF, Word And Excel)
The business plan for purified water includes, but not limited to:
- Marketing Strategy
- Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
- Industry Analysis
- Market Analysis
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Operational Strategy
- Why some people in the bottled water business fail, so that you can avoid their mistakes
- Ways to raise capital to start your bottled water business
The purified water business plan package consists of 4 files
- Bottled Water Business Plan – PDF file (Comprehensive Version – 101 Pages)
- Bottled Water Business Plan – Editable Word File (Comprehensive Version – 101 Pages)
- Bottled Water Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 48 pages)
- Bottled Water Business Plan Automated Financial Statements – (Editable Excel File)
The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the costs, salaries etc, and all the other financial statements will automatically adjust to reflect the change.
Click below to download the Contents Page of the Bottled Water Business Plan (PDF)
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Get the Bottled Water Business Plan (PDF, Word And Excel)
Click Buy Now below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!
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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 and Bottling Business Plan Template
MAR.14, 2022
Water purification and bottling business plan for starting your own business
Bottled water is one commodity consumed in all parts of the world, and of course, those in the business of producing bottled water are known to generate sales all year round if the company is well-managed. The economic downturn hardly affects the consumption of bottled water simply because it is a commodity that is as important as the air we breathe.
Production companies in the bottled water industry purify bottled water into plastic and glass bottles for consumption. The process involves use of a comprehensive business plan for bottled water and detailed franchise business planning .
If you plan on having a water purification and bottling business of your own, here is a purified drinking water business plan developed for Aqua Dreams. If you are confused about how to start a packaged drinking water business, this plan will provide you with all the details you need to know before going forward with your startup idea.
The business plan for Aqua Dreams is as detailed as a business plan for Starbucks . Hence it is assured that it will answer all your questions regarding how to start a purified water business.
Executive Summary
2.1 the business.
Aqua Dreams will be a licensed and standard bottled water production company situated in an industrial area in Orleans, Massachusetts. We have been able to secure a long-term lease for a facility in a strategic location with an option of a long-term renewal on agreed terms and conditions favorable to us. The reason behind this successful execution is a well-thought-out water purification and bottling business plan .
2.2 Management of water purification and bottling business
While taking an entrepreneurial initiative, it is essential to ensure that all aspects of your business are coherent. Hence, you must prepare a unique bottled water business plan that helps you seek sufficient funding.
Having said that, while writing a bottled water business proposal, you must analyze all the available resources. If you intend to raise loans, you should also study some business plans for banks because the process of getting loans can be exhaustive.
2.3 Customers of water purification and bottling business
While thinking of how to start water bottle business, you must understand who your target market is. Including this detail in your water purification business plan will help you in subsequent planning. The recurring customers of Aqua Dreams are identified as:
- Restaurants and Canteens
- Event Planners
2.4 Business Target
Our vision is to establish a standard bottled water Production Company whose products will be sold in Orleans – Massachusetts, and throughout the United States of America and Canada . There would be no compromise on the quality of the product, and complete transparency would be offered concerning our filtering processes.
Company Summary
3.1 company owner.
Aaron Finch will be the owner of Aqua Dreams. Aaron has strong leadership and organizational skills that he acquired while working at different water filtration plants since 2009. He graduated with a major in resource management from the University of Texas and researched this field ever since. He identified a lack of efficient purification systems in existing firms in the market and hence felt the need to introduce an innovative bottling water business plan.
3.2 Why the water purification and bottling business is being started
The bottled water production industry is profitable, and it is open for any aspiring entrepreneur to come in and establish their business. Aaron thought of coming up with a packaged drinking water business plan so that he doesn’t miss on any important aspect.
3.3 How the water purification and bottling business will be started
Step1: Planning for the business
Before setting up your business, looking into all the available resources and planning your way forward is essential. It gives you an idea of the availability of human resources and capital. If you are adding farm-related aspects to your business, it would be beneficial to also read out farmers market business plan before making a business plan for your startup.
Step2: Get Recognized
The next step is to be recognized by defining your business’s services and values. Having the proper business structure is very important to us at Aqua Dreams. Besides, producing healthy, portable, and well-packaged bottled water, we aim to impart perfect customer care service.
Step3: Offices
The cooperate office of Aqua Dreams will be located in the industrial zone of Orleans. It will be a feasible location since it would grant easy access to resources. Consequently, the cost of acquiring production factors would be low. The market trends in this water purification business plan pdf can help you strategically choose your corporate office’s location.
Step4: Online Presence
Living in an age of social media and digitalization, having a web presence is imperative for a company’s success. The website for Aqua Dreams would entail the company’s purification and bottling methods to educate the consumers about the sustainable processes we use.
Step5: Marketing
The last step is developing and executing a marketing plan to promote your services. In your business plan for bottled water , you must add marketing strategies that you will be using to reach out to the target customers. For diverse and unique advertisement ideas, research is imperative. You may need to visit several business operational models such as a liquor store business plan to gain an insight into the expectations of your target market.
Services of water purification and bottling business
Ideas to start your own bottled water business can be daunting and confusing. If you are new to the business and are unaware of the facilities to offer, you can refer to the services available at Aqua Dreams mentioned below:
- Bulk Purified water
The most preferred processes used for the purification process are reverse osmosis, deionization, and distillation. Aqua Dreams will use reverse osmosis systems as they remove up to 99% of organic substances and ions from the water. This process is discussed in detail in our water purification plant business plan.
- Still bottled water
This type of bottled water is the most often used to replace tap water. It has varying levels of dissolved minerals and does not contain added carbonation. In this bottling water business plan, we will list how much sales of this product were expected in a period lasting three years.
- Sparkling bottled water
Sparkling water, also known as seltzer, soda, or tonic water, is infused with carbon dioxide to create tons of bubbles and fizziness. It is often used as a healthy substitute for sugary sodas and other beverages because it is lower in calories and sugar. We will offer different flavors of the product to meet the expectations of our customers.
- Flavored bottled water
Flavored water is a beverage with added natural or artificial flavors, herbs, and sweeteners. Aqua Dreams will offer different options to its customers for a wider target market.
If you are new to the industry and are thinking how to start a water bottling plant, it is recommended that you go through this water bottling business plan pdf and learn about the technicalities involved.
Marketing Analysis of water purification and bottling business
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excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!
In this water bottling plant business plan, you will find a detailed marketing analysis conducted by Aqua Dreams. This is the perfect water purification business plan sample for your reference if you are confused about how to start a water purification business.
5.1 Market Trends
Research conducted by IBIS World shows that the level of concentration in the purified drinking water business is modest in the USA. The top four players are expected to generate 65.5 percent of revenue. The industry is responsible for the employment of well over 14,360 people. Experts project the bottled water production industry to grow at a 4.0 percent annual rate.
5.2 Marketing Segmentation
While analyzing how to start a water purification business, you must investigate your target audience. Market segmentation is vital to understanding the scope of your filtered water business. If you don’t know who you will be interacting with, you can refer to the customer groups of Aqua Dreams mentioned below:
5.2.1 Hotels
The minibars you see in your hotel rooms are usually stocked with bottled water of all kinds, let it be still, sparkling, or flavored. Hence, Aqua Dreams will be supplying bottled water to different hotels on a contractual basis. Since they place large orders, their revenue would be the main reason behind the success of our water purification business.
5.2.2 Restaurants
Since sparkling water is also often used in cocktails and other drinks to create a fizzy sensation, restaurants in the city will be the primary customer group for this specific product for Aqua Dreams. Our products will also assist them with their purification systems installed in the kitchens.
5.2.3 Event Planners
Nowadays, instead of serving water in glasses, it is preferred to offer bottled water to the guests. Hence event planners are expected to procure bottled water from us and provide it to the customers they are dealing with.
5.2.4 Retailers
Carbonated and fizzy drinks are loved by almost everyone these days, which can be bad for their health. Our flavored water, supplied to retailers nationwide is relatively less unhealthy and therefore we expect to have great sales of it.
5.3 Business Target
- Start a bottled water delivery service based on a courier services business plan
- Have a customer satisfaction score of 93%
- Capture 30% market share within the first year of business
- Install two new purification plants in the next five years of operations
5.4 Product Pricing
Our prices will conform to what is obtainable in the industry. We have put in place those business strategies that will help us run on low profits for six months.
Marketing Strategy of water purification and bottling business
Regardless of whether you are thinking of having a bottled water company business plan or a water purifying business plan, you need to have an effective marketing strategy. It would help you stand out amidst competition and capture market share.
Aqua Dreams will use a robust set of marketing and sales strategies mentioned in this water bottle business plan pdf. Hence it would be helpful for you to read it thoroughly if you are wondering how to start a packaged drinking water business.
6.1 Competitive Analysis
- The services at Aqua Dreams would be supervised by water purification experts who have insights worth 5+ years of experience.
- Sustainable practices such as environmentally friendly purification systems will be employed at Aqua Dreams.
- Calorie Check will be done thoroughly in our flavored bottled water.
- The introductory prices offered by Aqua Dreams would be lower than the market rates without compromising on the quality of services.
6.2 Sales Strategy
- Introduce our bottled water by sending introductory letters to hotels, water merchants, and restaurants.
- Advertise in local directories.
- Use social media platforms such as Facebook and Instagram for sponsored ads.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
Personnel plan of water purification and bottling business
The average cost involved in a bottled water production water business plan is similar to that in a donut shop business plan .
It is important to account for different kinds of costs to forecast financial returns accordingly. These costs also include the salaries of employees at the purification plants. To give you an idea of average salaries in the market, the salaries of our employees are quoted in this purified water business plan.
7.1 Company Staff
While thinking of water business ideas, the following are the positions you would essentially recruit for:
- 1 Plant Manager
- 1 Operations Manager
- 5 Production Assistants
- 1 Marketing Officer
- 3 Delivery Drivers
- 1 QA Engineer
7.2 Average Salary of Employees
Financial plan of water purification and bottling business.
A sole focus on increasing sales does not ensure that your business has become successful. For generating profits, you need to do a thorough analysis of your water company profile and estimate the operations’ capacity for your business accordingly.
In your financial plan, you must identify when and how to cover your investment amount with the earned profits. Moreover, you should evaluate the business projections and ratios to assess how the financial trajectory of your enterprise will go in the coming years. These assessments are important to highlight in your business plan for a water purification plant because they help investors decide whether to fund your bottled water startup or not. Besides, they help you direct your efforts to achieve your business goals.
If you don’t know how to conduct a financial analysis, you can refer to this water bottle business plan pdf.
Here we’re providing a business plan used by Aqua Dreams for you to use as a reference.
8.1 Important Assumptions
8.2 break-even analysis.
8.3 Projected Profit and Loss
8.3.1 profit monthly.
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
8.5 Projected Balance Sheet
8.6 business ratios.
- Is water bottling a profitable business?
A bottled water plant is profitable, provided a strategic business plan is in place. The average bottled water profit margin ranges between 25-30% for small and medium-scale water plants. It can be as high as 60% for large bottle production. Hence, the question “is bottled water business profitable” really depends on your scale of operations and management.
- How do I start a water purification business?
You can make a business plan and execute it in a set time frame. The most common mistake made when starting a new business is neglecting to write up a business plan. A good purified water business plan establishes a framework and a roadmap for your water purification business. If you try starting a bottled water business without a well-defined plan, your venture might not get successful.
- Is packaged drinking water business profitable?
The profit margin in the mineral water business is highly dependent on your products and location. This business can be profitable if you research what is in demand in the market and come with up unique sales ideas to let your customers know about you.
- How much does it cost to manufacture a bottle of water?
The cost of manufacturing a bottle of water differs from business to business based on the technology that is being used. Moreover, the scale and production level will also affect the cost incurred during manufacturing.
To get an idea of how you can cut costs, you can see a butcher shop business plan . It is generally assumed that mass production leads to lower manufacturing costs and in turn prices.
Download Water Purification and Bottling Business Plan Template in pdf
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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