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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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In this water bottling plant business plan, you will find a detailed marketing analysis conducted by Aqua Dreams. This is the perfect water purification business plan sample for your reference if you are confused about how to start a water purification business.
5.1 Market Trends
Research conducted by IBIS World shows that the level of concentration in the purified drinking water business is modest in the USA. The top four players are expected to generate 65.5 percent of revenue. The industry is responsible for the employment of well over 14,360 people. Experts project the bottled water production industry to grow at a 4.0 percent annual rate.
5.2 Marketing Segmentation
While analyzing how to start a water purification business, you must investigate your target audience. Market segmentation is vital to understanding the scope of your filtered water business. If you don’t know who you will be interacting with, you can refer to the customer groups of Aqua Dreams mentioned below:
5.2.1 Hotels
The minibars you see in your hotel rooms are usually stocked with bottled water of all kinds, let it be still, sparkling, or flavored. Hence, Aqua Dreams will be supplying bottled water to different hotels on a contractual basis. Since they place large orders, their revenue would be the main reason behind the success of our water purification business.
5.2.2 Restaurants
Since sparkling water is also often used in cocktails and other drinks to create a fizzy sensation, restaurants in the city will be the primary customer group for this specific product for Aqua Dreams. Our products will also assist them with their purification systems installed in the kitchens.
5.2.3 Event Planners
Nowadays, instead of serving water in glasses, it is preferred to offer bottled water to the guests. Hence event planners are expected to procure bottled water from us and provide it to the customers they are dealing with.
5.2.4 Retailers
Carbonated and fizzy drinks are loved by almost everyone these days, which can be bad for their health. Our flavored water, supplied to retailers nationwide is relatively less unhealthy and therefore we expect to have great sales of it.
5.3 Business Target
- Start a bottled water delivery service based on a courier services business plan
- Have a customer satisfaction score of 93%
- Capture 30% market share within the first year of business
- Install two new purification plants in the next five years of operations
5.4 Product Pricing
Our prices will conform to what is obtainable in the industry. We have put in place those business strategies that will help us run on low profits for six months.
Marketing Strategy of water purification and bottling business
Regardless of whether you are thinking of having a bottled water company business plan or a water purifying business plan, you need to have an effective marketing strategy. It would help you stand out amidst competition and capture market share.
Aqua Dreams will use a robust set of marketing and sales strategies mentioned in this water bottle business plan pdf. Hence it would be helpful for you to read it thoroughly if you are wondering how to start a packaged drinking water business.
6.1 Competitive Analysis
- The services at Aqua Dreams would be supervised by water purification experts who have insights worth 5+ years of experience.
- Sustainable practices such as environmentally friendly purification systems will be employed at Aqua Dreams.
- Calorie Check will be done thoroughly in our flavored bottled water.
- The introductory prices offered by Aqua Dreams would be lower than the market rates without compromising on the quality of services.
6.2 Sales Strategy
- Introduce our bottled water by sending introductory letters to hotels, water merchants, and restaurants.
- Advertise in local directories.
- Use social media platforms such as Facebook and Instagram for sponsored ads.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
Personnel plan of water purification and bottling business
The average cost involved in a bottled water production water business plan is similar to that in a donut shop business plan .
It is important to account for different kinds of costs to forecast financial returns accordingly. These costs also include the salaries of employees at the purification plants. To give you an idea of average salaries in the market, the salaries of our employees are quoted in this purified water business plan.
7.1 Company Staff
While thinking of water business ideas, the following are the positions you would essentially recruit for:
- 1 Plant Manager
- 1 Operations Manager
- 5 Production Assistants
- 1 Marketing Officer
- 3 Delivery Drivers
- 1 QA Engineer
7.2 Average Salary of Employees
Financial plan of water purification and bottling business.
A sole focus on increasing sales does not ensure that your business has become successful. For generating profits, you need to do a thorough analysis of your water company profile and estimate the operations’ capacity for your business accordingly.
In your financial plan, you must identify when and how to cover your investment amount with the earned profits. Moreover, you should evaluate the business projections and ratios to assess how the financial trajectory of your enterprise will go in the coming years. These assessments are important to highlight in your business plan for a water purification plant because they help investors decide whether to fund your bottled water startup or not. Besides, they help you direct your efforts to achieve your business goals.
If you don’t know how to conduct a financial analysis, you can refer to this water bottle business plan pdf.
Here we’re providing a business plan used by Aqua Dreams for you to use as a reference.
8.1 Important Assumptions
8.2 break-even analysis.
8.3 Projected Profit and Loss
8.3.1 profit monthly.
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
8.5 Projected Balance Sheet
8.6 business ratios.
- Is water bottling a profitable business?
A bottled water plant is profitable, provided a strategic business plan is in place. The average bottled water profit margin ranges between 25-30% for small and medium-scale water plants. It can be as high as 60% for large bottle production. Hence, the question “is bottled water business profitable” really depends on your scale of operations and management.
- How do I start a water purification business?
You can make a business plan and execute it in a set time frame. The most common mistake made when starting a new business is neglecting to write up a business plan. A good purified water business plan establishes a framework and a roadmap for your water purification business. If you try starting a bottled water business without a well-defined plan, your venture might not get successful.
- Is packaged drinking water business profitable?
The profit margin in the mineral water business is highly dependent on your products and location. This business can be profitable if you research what is in demand in the market and come with up unique sales ideas to let your customers know about you.
- How much does it cost to manufacture a bottle of water?
The cost of manufacturing a bottle of water differs from business to business based on the technology that is being used. Moreover, the scale and production level will also affect the cost incurred during manufacturing.
To get an idea of how you can cut costs, you can see a butcher shop business plan . It is generally assumed that mass production leads to lower manufacturing costs and in turn prices.
Download Water Purification and Bottling Business Plan Template in pdf
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Water Purification Business Plan for Package Drinking Water
- Last Updated: October 21, 2022
Bottled water remains one of the leading commodities people consume worldwide.
According to estimates, the Bottled Water segment’s revenue in 2022 will reach $302.50 billion. The market is expected to grow annually by 8.03% between 2022-2026.
This is simply because bottled water is an essential amenity, so of course, efficient water service companies will never be out of demand. In fact, package drinking companies will generate per-person revenues of $39.74 in 2022.
This article will be an excellent starting point to help you understand a water purification business plan . If you want to break into water purification services and achieve very healthy gross sales, read along.
Table of Content
- List of Water purification services
- Why to start a water purification business?
- Roles and responsibilities of Water Purification Business owner
- Water purification business plan template
- How to start a water purification business?
- Let Upper help you reach your client’s location on time
List of Water Purification Services
Creating ideas for a water purification business can take time and effort. You can refer to the list of services below if you are new to the industry and need clarification on what you can offer:
- Bulk Purified water – Purified water typically comes from reverse osmosis, deionization, or a combination of these methods.
- Still bottled water – Bottled still water is the leading alternative to tap water. It comes in a range of mineral concentrations.
- Sparkling bottled water – Making sparkling water involves adding carbon dioxide. People often use it as a healthy alternative because it has fewer calories and less sugar than other sodas.
- Flavored bottled water – Flavoured water is a beverage with additional natural or artificial flavors, herbs, and sweeteners. Water purification is vital to provide safe drinking water for your community.
Why to Start a Water Purification Business?
There are multiple reasons why water purification businesses are the need of the hour and why you must start one.
As per Fortune Business Insights , the global water purifier market is set to grow from $30.62 billion in 2022 to $50.66 billion by 2029. So it’s a growing market, and you can ride the wave by starting your own business.
By 2026, 36% of spending and 9% of volume consumption in the Bottled Water segment will be attributable to out-of-home consumption. That tells us that your services will always be in high demand.
Also, a growing number of consumers are concerned about their health and the environmental impacts of using untreated water from rivers or lakes. This is expected to drive further growth of the market for water purification services.
Roles and Responsibilities of Water Purification Business Owner
As a water purification business owner, here are your roles and responsibilities:
- Your top priority is recruiting, selecting, orienting, training, and counseling managers. Communicate values, assign roles, develop strategies and define primary objectives, monitor results, and create incentives.
- You’re also responsible for fixing your pricing strategy and signing business deals.
- Your employees will look up to you for providing direction to your water purification business.
- You also need to create, communicate, and implement the mission and vision statement of your organization.
- You’re the face of your organization, so you’ll sign the high-level documents.
- Finally, you’ll evaluate the success of your organization and be responsible for formulating profit-boosting strategies. As a small business owner, if you’re the one managing the water purification plant, these will be your added responsibilities:
- You’ll oversee the smooth running of your water purification (industrial) plants.
- As a water purification plant manager , you’ll need to ensure that all equipment is functional and focus on preventative maintenance and repairs.
- It’s your job to ensure that your plant meets the safety and hygiene standards at all times.
Water Purification Business Plan Template
A well-defined plan relies on market research and stresses quality. It also helps you secure funding and start-up assets, fulfill an unsatisfied market need, attract customers, monitor start-up expenses, and prevents very expensive shut down.
Here’s an elaborate water purification business plan template using which you can create your own business plan.
1. Executive and company summary
This executive summary aims to summarise the critical points of this comprehensive business plan, saving you time and preparing you for the upcoming content.
An executive summary for a company includes:
- The business opportunity – describes the need for your services.
- Services – tell how your business will serve the market.
- The target market – represents the customer base you will be targeting.
- Business model – how your services create, deliver, and capture value.
- Marketing plan and sales strategy – describe how you will market and sell your products to a potentially unsatisfied market.
- Discuss your competition and how you plan to gain market share – how can you differentiate yourself from your competitors, i.e., what do you offer to customers that nobody else can?
2. Services offered
The products and services section of your business plan should include a description of the products or services you are offering or plan to offer.
You should explain how your products and services will be priced and compare the products.
Your product and service section outlines your product or service, why your market needs it, and how it will compete with other businesses selling similar products and services.
3. Market analysis
Market analysis is about figuring out the needs of your target market, whether the existing products on the market meet those needs, and what competitors are doing to meet those needs.
You’ll also want to figure out how much people in your industry make per year, how fast the industry is growing or shrinking, and what kind of barriers exist for new players entering it, so you can decide if the environment is suitable for your business idea.
Essentially: Market analysis helps you determine if there’s an actual need for your product or service.
4. Human resources plan
The importance of a solid human resources plan cannot be overstated, especially in specialized industry sectors. A business needs the right people to do the jobs, and you need a solid plan to hire the right talent.
A well-executed human resources business plan will help you attract and retain talent, which is essential for any company looking to grow.
5. Financial Plan
A financial plan is not just a list of numbers and projections. It overviews your current business financials and the direction they are progressing in.
Your financial plan will help you set realistic expectations regarding the overall costs and success of your business. You are more likely to be prepared for any eventuality, whether a crisis or incredible growth if you know your financials inside and out.
6. Marketing strategy
Starting a business, ensuring quality service, and promoting operational efficiency are undoubtedly necessary. But you’ll struggle with reaching your ideal consumers if you don’t have actionable marketing and business strategies. To ensure your business thrives, create marketing strategies that increase brand visibility and keep bringing quality leads.
How to Start a Water Purification Business?
Follow these steps to start a water purification business:
1. Use the business plan template for your water purification business
A comprehensive plan is essential for new water purification business owners. This plan should include all aspects of the company, including start-up costs, funding, and day-to-day operations.
New business owners also need to be realistic about their goals and expectations. Finally, it’s essential to have a solid understanding of the competition.
Businesses with well-thought-out plans are more likely to succeed.
2. Form the legal entity
When starting your business, you must know what kind of liability exposure you want and your company goals. A sole proprietorship may be enough if you sell to limited consumers.
But a corporate organization or LLC may be better if you want more protection or to grow the business.
3. Obtain permissions and business licenses
If you’re looking to start a new business, it’s important to remember that specific licenses and permits are required by law. However, this varies depending on the type of water purification business you’re looking to start and where your business will be located.
Contact your local business licensing office or chamber of commerce to find out which permits and licenses you need.
4. Purchase equipment
The most critical elements of starting a water purification business are equipment, tools, and supplies.
You’ll need some things for everyday use, like wrenches and screwdrivers, but you’ll also need more specialized items, like meters or pumps. And remember your safety equipment. You’ll want to ensure you have all the protection you need when working with chemicals or other hazardous materials.
To ace this step, document everything you might need and research different suppliers that fulfill your requirements. You can also consider renting equipment you won’t regularly require; buying expensive equipment that you wouldn’t use frequently doesn’t make sense.
5. Market your services
Now that you’ve built your water purification business, it’s time to get it out there and start generating revenue. Your own sales force will prove most helpful here. Start with building a brand identity to stand apart from your competitors, reach monthly sales target, and keep sales growing gradually. This includes naming your business and creating a logo and color schemes to remain consistent across social media platforms. It is branding that helps you charge a premium price and stay afloat in economic downturn.
You can then work on creating a website for your business with all the details. Finally, it’s time to create a launch strategy for such a niche product—leverage word of mouth via friends and family, social media shout-outs, and influencer marketing. Advertising in local newspapers, paid ads on social media, yellow page ads (local directories), and more are also game changers for your high purity water business.
Let Upper Help You Reach Your Client’s Location on Time
Now that you know how to create an elaborate business plan, let’s discuss how you’ll fulfill all your orders.
With Upper’s route planning and optimization software , though, businesses like yours save 10 hours per week and get more deliveries done on time. You’ll get more done, and your customers will get all their fresh water right when needed.
With Upper, you’ll get the most efficient routes for your bottled water delivery.
- Your drivers can take advantage of the shortest routes as per specific constraints, driving preferences, time windows, and more, so you’ll always deliver on time.
- You can mark your shipments low, medium, or high as per priority. You can also add multiple stops and details such as service time, importance, or other notes for your drivers to manage their jobs better.
- Upper sends automatic notifications regarding the ETA of delivery to your customers to save your drivers from failed deliveries. It helps them get more deliveries done and ensures items safely reach the end customers.
Try the 7-day free trial today.
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The water purifier will cost around $2,500. The cost of installing new plumbing lines and connections will be $195. Water softener treatment will cost $1,500. The total cost comes to around $4,195 approximately.
The 5 Types of Filters are as follows:
- Mechanical Filters.
- Absorption Filters.
- Sequestration Filters.
- Ion Exchange Filters.
- Reverse Osmosis Filters.
Water treatment steps often used in water systems include:
- Coagulation.
- Flocculation.
- Sedimentation.
- Filtration.
- Disinfection.
A purification plant is a water system that treats or improves water quality by complying with the state board of health standards. The purification plant can be a stand-alone facility or a portion of a more extensive system.
Conclusion
Water purification for the bottled water industry is brimming with opportunities. The demand for convenience and high disposable income is driving the consumption of bottled water across the globe. However, you need a comprehensive plan for overall company success. A business plan will help you set realistic goals and expectations, and you can use this plan to get an edge over your competition.
To further grow your business, invest in robust route planning and scheduling software like Upper so that you can provide your services to your customers in time and ditch poor or slow servicing. Try the 7-day free trial today.
Rakesh Patel is the founder and CEO of Upper Route Planner. A subject matter expert in building simple solutions for day-to-day problems, Rakesh has been involved in technology for 30+ years. Looking to help delivery businesses eliminate on-field delivery challenges, Rakesh started Upper Route Planner with the ultimate goal of simplistic operations in mind.
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Water Purification Business Plan Template & Guidebook
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How to Write a Water Purification Business Plan in 7 Steps:
1. describe the purpose of your water purification business..
The first step to writing your business plan is to describe the purpose of your water purification business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.
It also helps to include a vision statement so that readers can understand what type of company you want to build.
At our water purification company, our mission is to provide clean and safe drinking water to households and businesses in our community. We are committed to using the latest technology and techniques to remove impurities and contaminants from water, making it safe and enjoyable to drink. We strive to be a trusted source of high-quality, purified water for our customers, and to provide exceptional customer service and support. We are dedicated to promoting healthy hydration and helping our customers improve their overall well-being through the consumption of clean, pure water.
2. What Types of Products and Services Does Your Water Purification Business Offer?
You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.
3. Devise Your Marketing Plan to Attract Customers.
Target market, customer base , product or service description, competitive analysis, marketing channels, 4. build your operational plan., what equipment, supplies, or permits are needed to run a water purification business.
To run a water purification business, you'll need a range of equipment and supplies, as well as a few permits. Here's a quick rundown of what you'll need:
5. Management & Organization of Your Water Purification Business.
6. startup expenses and capital needed for your water purification business..
Typically, expenses for your business can be broken into a few basic categories:
7. Financial Plan & Projections.
A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your water purification business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses.
Frequently Asked Questions About Water Purification Business Plans:
Why do you need a business plan for a water purification business, how to write a business plan for your water purification business), can you write a water purification business plan yourself, related business plans, multimedia business plan template & guidebook, fashion consultant business plan template & guidebook, dtg business plan template & guidebook, errand running business plan template & guidebook, crematory business plan template & guidebook, concrete pumping business plan template & guidebook, cigar lounge business plan template & guidebook, chrome plating business plan template & guidebook, cctv installation business plan template & guidebook.
How to Write a Water Purification Business Plan in 2023
Are you considering the idea of starting a water purification business? If yes, having an effective business plan is essential to turning your idea into a reality. A well-written business plan will identify the target market and provide a roadmap to guide you through the entire process of setting up and running a successful water purification business. It will also help you attract potential investors, set objectives, and allocate resources. In this article, you’ll learn about the important components of a water purification business plan and how to write one that will ensure your business is successful in 2023.
Why is a Water Purification Business Plan Important?
A water purification business plan is essential for any entrepreneur looking to get into the water purification industry. Without a proper plan, you’ll be flying blind without a clear goal or strategy in mind. A water purification business plan will not only help you secure the necessary funding to get your business off the ground, but it will also give you a roadmap to success by laying out regulations, forecasts, and strategies to ensure your business is profitable. Without a plan, you risk falling behind your competition and losing customers as a result. While it may take some extra time, in the beginning, to plan, the returns will be worth it in the long run.
How to write a Water Purification Business Plan
Writing a water purification business plan can be an intimidating task, but it is a necessary step in getting your business launched and off the ground. A good business plan should include a detailed analysis of the current market and the potential for growth, an understanding of the competition, and a plan for how you will differentiate yourself in the market. Here are the components you need to include in your water purification business plan:
- Executive Summary
- Company Description
- Market Analysis
- Products/Services
- Competition
- Operations
- Marketing Plan
- Financial Plan
- Financial Analysis
- Risk Management
- Exit Strategy
1. Executive Summary
A water purification business plan should always begin with an executive summary. An executive summary not only acts as the introduction to your business plan but also serves as a summary of the entire idea. The main objective of an executive summary is to draw the reader (oftentimes an investor) into the rest of your business plan.
Common elements of an executive summary include:
- Mission statement (learn more about how to write a good mission statement here)
- Proposed concept
- Execution
- A brief look at potential costs
- Expected return on investments
An executive summary is essential for those looking to get investors to fund their projects. Instead of having to comb through the entire water purification business plan to get all the information, they can instead just look through the executive summary. It should provide the reader with a clear overview of the business plan and include the project's key objectives and goals.
2. Company Description
This is the part of the water purification business plan where you fully introduce the company. Start this section with the name of the company you are opening, along with the location, contacts, and other relevant information. Also include the owner’s details and a brief description of their experience.
The second part of the company description should highlight the legal standing of the company and outline the company’s short and long-term goals. Provide a brief market study showing that you understand the trends in the regional water purification industry and why the company will succeed in this market.
3. Market Analysis
3.1 Industry Analysis
Water purification is a rapidly growing industry, driven by the need to provide safe drinking water for both residential and commercial customers. This section should provide an overview of the current market trends, the size of the industry, and how the industry is expected to grow in the future.
3.2 Competition Analysis
Identifying the competition in the water purification market is key. List and analyze the competitors in the market, their market share, and their strategies. Take a look at their pricing strategies, product offerings, and customer service.
3.3 Marketing Analysis
How will you position your water purification business? What strategies will you use to reach your target customer? Discuss your marketing plan and analyze the different channels you plan on utilizing to reach your customers. Additionally, outline any potential partnerships you plan on entering into to reach a wider audience.
4. Products/Services
When it comes to providing products or services for your water purification business, you need to have a clear understanding of what you’re offering. Whether you’re offering home water systems, industrial water systems, or both, you need to be able to clearly describe the features and benefits of each.
You also need to be able to provide pricing information for your products and services. Be sure to include any discounts or promotions you may be offering as well. Additionally, specify any warranties or guarantees you plan to offer.
Finally, you should include any special services you may offer such as installation, maintenance, or repair. Make sure you explain what sets your products and services apart from the competition. This will help investors and customers understand the value your business can provide.
5. Competition
When drafting a water purification business plan, you should consider the competition in the market. Research the area in which you plan to open your business, and look into existing companies that offer similar services. Take note of how long they’ve been in business, what their pricing structure is, what products or services they offer, and their customer reviews. All of this information will help you create a competitive edge for your business.
The goal is to come up with a unique value proposition that sets you apart from the competition. Think about what makes your business different and why customers might choose you over the competition. Consider offering different product or service options, different pricing structures, or a loyalty program. If you can offer something that no one else is offering, you’ll have a better chance of succeeding.
6. Operations
For a water purification business to be successful, it is important to have a plan for the operational aspects of the business. This includes determining the types of services to offer, pricing models, and customer service policies. It is also important to consider the regulatory and licensing requirements for your business, as well as the safety and health regulations that should be adhered to.
Additionally, you should consider the type of equipment needed for the business, the cost of purchasing and maintaining it, and the best way to store and transport it. You should also determine the best way to market your services and how to manage customer inquiries and complaints. Finally, you should consider the necessary permits, licenses, and insurance that are needed to operate a water purification business.
7. Marketing Plan
A successful water purification business requires a comprehensive and well-thought-out marketing plan. Start by researching the competition to understand their strengths and weaknesses and how you can differentiate yourself. You should also assess the current market trends to ensure that your business is well-positioned to capitalize on any potential opportunities.
Next, you should decide on which channels you will use to promote your business. You might focus on digital marketing, such as website design, SEO, email campaigns, and social media. You could also opt for traditional methods, such as print advertising, radio, and TV. Consider the advantages and disadvantages of each channel before deciding which one is best for you.
Finally, you should plan your budget for each marketing activity. Your budget should reflect the goals of your business and how much you can realistically spend. Once your budget is finalized, you should begin researching the best tools and techniques for each marketing channel. This will ensure that your marketing plan is successful and that your business is properly positioned to succeed.
8. Financial Plan
The financial plan for your water purification business should be comprehensive. Include a detailed budget that accounts for all of your expenses, such as the cost of equipment, supplies, labor, and the projected revenue. Include a timeline of when expenses and revenue need to be fulfilled.
You should also include financial statements that project the future of your business. This includes a balance sheet, income statement, and cash flow statement. These statements will help you and investors understand the financial health of your business and how it will grow in the future.
Finally, consider how you plan to raise capital. This should include a description of any loans you will seek, and if you plan to seek angel investors or venture capital, have a plan for how you will approach them. This will help investors understand your financial plan, and give them an idea of how their money will be used.
9. Financial Analysis
When writing a water purification business plan, financial analysis is key. Investors want to know that your business model is feasible and sustainable. This means you have to do some digging into the finances of your business to present a convincing case.
Start by creating a budget for the first couple of years of the business. This should include your costs for operations, labor, and materials. You should also include estimated sales and profits for the business. This will give investors a good idea of the potential of the business.
Next, you should prepare an income statement and cash flow. This will show investors how much money you need to make and how much money you’re likely to have at any given time. You should also include a balance sheet, which will show your assets, liabilities, and net worth.
Finally, you should include a break-even analysis. This will show investors how long it will take before your business starts to make a profit. This will also show investors how much you’ll need to invest in the business to get it started.
By providing detailed financial analysis, you’ll show investors that your water purification business is worth investing in.
10. Risk Management
Risk management is an integral part of any business plan and this should be no different for your water purification business. Make sure to identify potential risks to your business, such as natural disasters, government regulations, and financial losses.
It’s also important to include contingencies for each risk. For example, if an area is prone to flooding, you should have a plan in place to quickly and efficiently respond to any water damage. You should also consider having a contingency plan for any government regulations or laws that could affect your business.
Be sure to also consider the financial risks associated with your business. Estimate your potential losses and create a firm budget that will help you to stay on track. Having a detailed risk management plan in your business plan will show potential investors that you’re prepared for any potential risks.
11. Exit Strategy
A good exit strategy can make all the difference between success and failure. When it comes to a water purification business, a successful exit strategy should include a plan for selling the business, and a plan for winding it down.
First, consider potential buyers. Make sure you have a list of potential buyers, as well as a clear understanding of what they are looking for in a business like yours. Knowing who your potential buyers are and what they are looking for will help you craft an exit strategy that is tailored to their needs.
When planning to sell, it’s essential to consider the legal and financial implications involved. Make sure you have a strong legal team to help you through the process and an accountant to help you with the financial aspects.
Finally, if you plan to wind down the business, it’s important to consider what you’ll need to do to ensure that your clients are taken care of. This may include putting processes in place to handle customer inquiries or to transfer client accounts to other water purification companies. Whatever you choose to do, make sure you have a plan in place that clearly outlines how you will handle the closure of the business.
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Home » Business ideas » Food Processing Industry » Water Purification & Refill Station
How to Write a Water Purification Plant Business Plan [Sample Template]
Are you about starting a water purification plant? If YES, here is a complete sample water purification plant business plan template & feasibility report you can use for FREE . Okay, so we have considered all the requirements for starting a water purification plant .
We also took it further by analyzing and drafting a sample water purification plant marketing plan template backed up by actionable guerrilla marketing ideas for water purification plants. So let’s proceed to the business planning section .
Why Start a Water Purification Plant?
The need for clean water will continue to exist as long as human beings exist. Water is one of the commodities in our world that doesn’t have any substitute. If you want to take a bathe, you use water; if you want to quench your thirst, you need water, if you want to fix a meal, you need water. The need for water could go on and on. This points to the fact that clean drinkable water is as important as the air we breathe.
The essence of going into any form of business should be basically to fill in a need or solve a problem. Therefore, going into the water purification business would surely help you solve the challenges of people who don’t have access to clean water.
Water purification is all about removing particles, color and odor from water meant for consumption. One good thing about the water purification plant business is that it is less expensive to start and maintain. You don’t need a comprehensive business plan from a business school before you get started.
If you are sure you want to do this type of business after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan. The truth is that it is one thing to have a fantastic idea cum business plan, it is entirely another thing for the business plan to translate to money.
You can hardly run this type of business alone especially if you want to operate a standard water purification plant business. Below is a sample water purification plant business plan template that will help you successfully write yours with little or no stress.
A Sample Water Purification Plant Business Plan Template
1. industry overview.
Water is an essential commodity in life and as such The Public Health Department ensures that all water purification plants meet certain health and safety standards. It is important to note that if the water in a community is contaminated; it can result to an epidemic in that community.
A water purification plant must enforce strict hygiene standards and the environment must be clean at all times if they want to continue to be in business. A breech of these measures might result in the Public Health Department shutting down the business.
Be sure that all the storage tanks and delivery tankers undergo routine cleaning and chlorination. You can visit your Public Health Department to know more about health measures to adopt in your water purification plant.
It is important to state that you would be required to obtain a license before you are permitted to drill a bore hole for your water purification plant. This measure is put in place to guide against people drilling bore holes in places that are prone to earth quakes and tremors or places that have sanitary issues. Your choice of location would be supervised and screened before you can be issued the permission to go ahead and install your water purification plant.
Establishments in the water purification line of business sell water as a public utility to households, businesses and public entities throughout the united states. Water purification plant business has performed well over the decade. Population growth, as well as occurrence of drought and other hostile weather conditions, have indeed increased demand for water supplied by industry operators.
Nonetheless, while per capita consumption rates are expected to depreciate, cumulative water consumption is projected to expand as the population and economy grow.
The Water Supply and Irrigation Systems industry that water purification plant is a part of is a thriving sector of the economy of the United States of America and they generate over $73 billion annually from more than 48,738 registered and licensed water supply and irrigation systems companies scattered all around the United States of America.
The industry is responsible for the employment of over 232,714 people. Experts project the Water Supply and Irrigation Systems industry to grow at a 1,3 percent annual rate within the next 5 years. American Water Works Company Inc. has the lion market share of the available market in the United States of America.
In summary, water purification plant business is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale servicing a community or you can choose to start on a large scale with several outlets in key cities all around the United States of America.
2. Executive Summary
Pascal Windsor® Water Purification Plant, Inc. is a licensed and standard water purification company that will be located in a residential area, 5 miles away from Phillips Avenue – Sioux Falls, South Dakota, USA. We have been able to secure a long-term lease for a facility in a strategic location on a major road 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.
We are in the water purification plant business to engage in the sale and supply of treated water to residential apartments, offices and industrial plants. 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 water the opportunity to be part of the success story of Pascal Windsor® Water Purification Plant, Inc.
We are aware that there are several large and small scale water purification plants and even water refill stations scattered all around Sioux – South Dakota which 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 supply network for offices and manufacturing plants all around Sioux – South Dakota and neighboring cities.
Much more than selling and supplying purified and treated water, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they purchase water from us.
We have a CRM software that will enable us manage a one-on-one relationship with our customers no matter how large the number 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.
Pascal Windsor® Water Purification Plant, Inc. is family business that will be owned and managed by Pascal Windsor and his immediate family members. Pascal Windsor who is the Manager of the Company has a Degree in Water Resources from South Dakota State University.
He has well over 10 years of experience working in related industry as a senior manager prior to starting Pascal Windsor® Water Purification Plant, Inc. He will be working with a team of experienced employees (family members inclusive) to build the business and grow it to an enviable height.
3. Our Products and Services
Pascal Windsor® Water Purification Plant, Inc. is going to operate a standard and licensed water purification plant in Sioux – South Dakota.
We are in the water purification plant line of business to supply treated water to households, offices and industrial plants via hygienic water tankers and we are going to do all that is permitted by the law in the United States of America to achieve our business goals and objectives.
4. Our Mission and Vision Statement
- Our vision is to establish a standard water purification plant in Sioux – South Dakota and in other cities throughout the United States of America that will become the number one choice for households, offices and industrial plants.
- Our mission is to establish a standard and world class water purification plant that will favorably compete with leaders in the industry. We want to build a water purification plant business that will be listed amongst the top 10 water purification plants in the United States of America.
Our Business Structure
Pascal Windsor® Water Purification Plant, Inc. is a business that is established with the aim of competing favorably with other leading water purification plants in the industry and also to open our outlets all across key cities in the United States of America.
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 our stake holders. 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)
Water Purification Plant Manager
- Sales and Marketing Officers
- Accountants/Cashiers
- Pump Operators
Water Tanker Drivers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- 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 signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for overseeing the smooth running of the water purification plant
- Maps out strategy that will lead to efficiency amongst workers
- Responsible for training, evaluation and assessment of workers
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
- Ensures that the water purification plant meets the expected safety, hygiene and health standard at all times.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- 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 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
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Pump Operators:
- Responsible for selling and refilling water for customers as requested
- Ensures that the pumps are performing and dispensing treated water as required
- Assists in filling water tankers with water as requested
- Handles any other duty as assigned by the water purification plant manager
- 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 water tanker/truck is equipped with safety equipment
- Assists the water refill station manager in planning their route according to a delivery schedule
- Local-delivery drivers may be required to sell products to households and businesses on their route, obtain signatures from recipients and collect cash
- Inspects vehicles for mechanical and safety issues and perform preventative maintenance
- Complies with water tanker/truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collects and verifies delivery instructions
- Reports defects, accidents or violations
- Responsible for handling core services that revolve around tanks, water containers and reservoirs cleaning, parking lot sweeping, snowplowing, drain, duct and gutter cleaning, parking lot and driveway washing and other related cleaning services
- Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the water refill station manager
6. SWOT Analysis
We are quite aware that there are several water purification plants and water refill stations in Sioux – South Dakota which is why we are following the due process of establishing a business so as to compete favorable with them. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Because of our quest for excellence, Pascal Windsor® Water Purification Plant, Inc. employed the services of an expert HR and Business Analyst with bias in startup businesses 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 Pascal Windsor® Water Purification Plant, Inc.;
Part of what is going to count as positives for Pascal Windsor® Water Purification Plant, Inc. is the vast experience of our management team, we have people on board who are highly experienced and understand how to grow a business from the scratch to becoming a national phenomenon. So also, the location of our water purification plant, our large distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
A major weakness that may count against us is the fact that we are a new water purification plant in Sioux – South Dakota 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 American Water Works Company Inc. and co are already determining the direction of the market all across the United States America.
- Opportunities:
The opportunities for water purification plants and any water related business are enormous. This is due to the fact that water is an essential commodity that we use on a daily basis for different purposes. As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our water purification plant in the right location to be able to take advantage of the existing market and also to create our own new market.
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 . Another threat that may likely confront us is the arrival of a new water purification plant and water refill station in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
It is known fact that water is a fundamental need for our existence. It is something we all cannot do without. The need for clean water will continue to exist as long as human beings exist. Water is one of the commodities in our world that doesn’t have any substitute. This points to the fact that clean water is as important as the air we breathe.
If you are up-to-date with water purification plant business, you will quite agree that you would not necessarily need aggressive marketing skills to be able to market your water business. People that need your water will most likely look for ways to get to your water refill station.
The reason why you would need to market your water purification plant is to let people know about your water purification plant and to create general awareness. Schools, public facilities, homes and even companies are places where your water might be needed. This is especially when their existing water supply system fails or is under repairs and general maintenance.
Lastly, another trend in water purification plant line of business is the adoption of eco – friendly approach towards the treatment and supply of water. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.
8. Our Target Market
When it comes to selling treated water, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those 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 sale and supply of treated water to the following groups of people;
- Industrial Plants
- Laundries and Laundromats
- Restaurants and Canteens
- Event Planners, Parties and Corporate Functions
- Corporate Executives
- Government Officials
- Business People
- Everybody in our target market location
Our Competitive Advantage
A close study of the water purification plant business 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 competition and we are well prepared to compete favorably with other water purification plants in Sioux – South Dakota and throughout the United States of America where we intend opening outlets of our water refill stations.
Part of what is going to count as competitive advantage for Pascal Windsor® Water Purification Plant, Inc. is the vast experience of our management team; we have people on board who are highly experienced and understand how to grow business from the scratch to becoming a national phenomenon.
So also, the location of our water purification plant, our large distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Pascal Windsor® Water Purification Plant, Inc. is established with the aim of maximizing profits in the water purification plant line of business in the United States of America and we are going to go all the way to ensure that we do all it takes to sell and supply our treated water to a wide range of customers.
In essence, Pascal Windsor® Water Purification Plant, Inc. will generate income by selling and supplying treated and purified water.
10. Sales Forecast
One thing is certain when it comes to water purification plant business, if your water is well – treated and your water tanker hygienic and if your water purification plant is centrally positioned and easily accessible, you will always attract customers cum sales that will translate to revenue generation for the business.
We are well positioned to take on the available market in Sioux – South Dakota and every city where we intend opening outlets and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the water purification plant line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Sioux – South Dakota.
- First Fiscal Year: $120,000
- Second Fiscal Year: $250,000
- Third Fiscal Year: $550,000
N.B : This projection was 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
Prior to choosing a location for Pascal Windsor® Water Purification Plant, Inc., we conducted a thorough market survey and feasibility studies in order for to penetrate the available market in our target market location. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the water purification plant line of business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Sioux – South Dakota and other cities in the United States of America where we intend opening outlets of our water purification plant.
In other to continue to be in business and grow, we must continue to sell our treated and purified water 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, Pascal Windsor® Water Purification Plant, Inc. will adopt the following sales and marketing approach to sell our treated and purified water;
- Introduce our water purification plant by sending introductory letters to residents, offices, laundries and laundromats, industrial plants, event planners and other stakeholders in Sioux – South Dakota and other cities both in the United States of America
- Open our water purification plant with a party so as to capture the attention of residents who are our first targets
- Engage in roadshows in targeted communities from time to time to sell our brand
- Advertise our water purification plant in community based newspapers, local TV and radio stations
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our water purification plant
- 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 water purification plant is a standard and licensed one and centrally located in a location that has good human and vehicular traffic, we will still go ahead to intensify publicity for all our product and brand.
Pascal Windsor® Water Purification Plant, Inc. has a long – term plan of opening our water purification plants in various locations all around the United States of America which is why we will deliberately build our brand to be well accepted in Sioux – South Dakota before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for selling our product but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Pascal Windsor® Water Purification Plant, Inc.;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, et al to promote our water purification plant brand
- Install our billboards in strategic locations all around major locations in Sioux – South Dakota
- Engage in roadshows from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our treated and purified water
- Ensure that all our staff members wear our customized clothes, and all our official cars and water tankers and water storage facilities are customized and well branded.
12. Our Pricing Strategy
When it comes to placing prices for products such as treated water, there are two sides to the coin. We are aware of the pricing trend in the water refill line of business which is why we have decided to have various sizes of gallons and water tankers.
In view of that, our prices will conform to what is obtainable in the industry but we will ensure that within the first 6 to 12 months, our treated water will be sold a little bit below the average price in the industry. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our water purification brand
- Payment Options
The payment policy adopted by Pascal Windsor® Water Purification Plant, Inc. is all inclusive because we are aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Pascal Windsor® Water Purification Plant, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our clients make payment for the purchase of our treated and purified water without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our treated water.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a water purification plant; it might differ in other countries due to the value of their money.
These are the key areas where we will spend our startup capital in setting up Pascal Windsor® Water Purification Plant, Inc.;
- The total fee for registering the business in the United States of America – $750
- Legal expenses for obtaining licenses (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) as well as accounting services (CRM software, Payroll software, P.O.S machines and other software- $2,300
- Marketing promotion expenses for the grand opening of Pascal Windsor® Water Purification Plant, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580
- The cost for hiring business consultant (including writing business plan) – $2,500
- The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $2,400
- Cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $50,600
- Cost for construction of a standard water purification plant (drilling borehole and water treatment channel inclusive) – $80,000
- Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 )
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $50,000
- The cost for start-up inventory (Storage Tanks, Gallons, Funnels with Filters, Granular Activated Carbon, Magnetic Flow Meter, Pressure Tank with Pump, Automatic Wash with Stainless Steel Jackets, Water Purifier, Chlorine and other required approved chemicals for water purification and preservation et al) – $80,000
- Cost for store equipment (cash register, security, ventilation, signage) – $3,750
- Cost of purchase of water supply tankers/trucks – $50,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
- The cost for building and hosting a website – $600
- The cost for our opening party – $5,000
- Miscellaneous – $5,000
We would need an estimate of two hundred and fifty thousand Dollars ( $250,000 ) to successfully set up our water purification plant in Sioux – South Dakota.
Generating Startup Capital for Pascal Windsor® Water Purification Plant, Inc.
Pascal Windsor® Water Purification Plant, Inc. is a private business that is solely owned and financed by Pascal Windsor and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $50,000 ( Personal savings $30,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Pascal Windsor® Water Purification Plant, Inc. 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 purified water a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Pascal Windsor® Water Purification Plant, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and construction of standard water purification 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
- Graphics Design and Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed Storage Tanks, Gallons, Funnels with Filters, Granular Activated Carbon, Magnetic Flow Meter, Pressure Tank with Pump, Automatic Wash with Stainless Steel Jackets, Water Purifier, Chlorine and other required approved chemicals for water purification, preservation, computers, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party planning: In Progress
- Purchase of water tankers – Completed
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Water Purification Business Plan
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H2O Industries
Strategy and implementation summary.
Besides direct sales effort to large users of H20 Industries, a major element of the company’s marketing efforts will be to develop a distributor network through existing local water service companies. These companies provide local water service to small companies and homes throughout Northern California. Most of their business takes the form of water filtering, water softening, reverse osmosis maintenance, swimming pool service, etc. The best of these will be recruited to add H20 Industries service to their product line.
5.1 Value Proposition
H20 Industries will offer segregated resin regeneration to customers wanting the highest levels of water purity. Segregated regeneration is not offered by any other company in Northern California and indications are, based on present pre-start-up sales, that users of H20 Industries are willing to pay a substantial premium for it. It represents a form of peace of mind which dialysis units, laboratories, etc. feel is important.
The second most important value proposition is service response. When H20 Industries tanks need changing customers insist on, and will receive, an immediate response.
5.2 Competitive Edge
H20 Industries’s ability to segregate a customer’s resin and return it to him regenerated to the maximum limit, should put the company in a strong competitive position.
Approximately all of H20 Industries’s business will be directed at the portable service DI market. This market emphasis should quickly be noticed by users of H20 Industries, who at present rely on US Filter. US Filter’s product range growth through acquisition and buy-outs has de-emphasized the importance of its H20 Industries exchange service.
Hence, the two major aspects of the firm’s competitive advantage would be high quality segregated resin regeneration and fast service response. It will be important to stress these advantages in the sales literature.
5.3 Marketing Strategy
H20 Industries’s marketing strategy will be to execute and communicate its value proposition of service and market segmentation advantage in providing segregated regeneration of customers’ resin.
5.3.1 Distribution Strategy
Wherever H20 Industries cannot economically sell directly, due to distance or quantities, it will utilize a network of water service companies. These companies will be carefully chosen for their quality of service. An arrangement will be set up whereby the distributor will offer DI exchange service along with its other water services. The installations can easily be handled by them. They would tag the tanks and return and pick up from the H20 Industries plant. Being able to offer this service increases the image of the local water service company. It fosters a feeling a one-stop shopping. A 33% discount off the retail price should be adequate to satisfy the distributors.
5.3.2 Positioning Statement
H20 Industries’s ability to regenerate resin on a segregated basis, rather than only bulk, is a capability that should provide quick and easy entry into the user market where the highest water purity is needed. These users, blood analysis, hemodialysis units, and medical laboratories for example, are especially sensitive to contamination risks. Simply pointing out to these users that bulk regeneration involves the co-mingling of their resin with resin used in the metal-finishing and car wash industries usually is quite convincing. Segregated regeneration results in the further advantage of achieving a higher DI capacity per cubic foot as greater quantities of chemicals are used during a longer regeneration period.
The second most important position statement is H20 Industries’s concentration on the DI exchange business. This concentration will force H20 Industries to provide a higher level of service, and more quickly, too. It must be remembered that the cost for H20 Industries in the market for the highest level of water purity is not a significant cost element in the overall cost structure. However, a service shutdown, for quality or for service reasons, would be very costly to high technology users of H20 Industries.
5.3.3 Pricing Strategy
In line with the conclusions drawn in the positioning statements, H20 Industries can charge a higher price for its segregated regenerated resin. There is virtually no competition for this product in the Northern California market.
Charging $63 per cubic foot (mixed bed), as used in the sales projections, is more than a 65% increase over the price for US Filter’s bulk resin price for mixed bed. H20 Industries is currently successfully charging in excess of $70 for this product. It is essential that H20 Industries place a premium price consistent with its superior product.
Wholesale prices have been established to encourage the quick formation of a dealership network. Dealers are afforded a 33% discount.
5.3.4 Promotion Strategy
The main focus of promotion will be two-pronged: promotion to H20 Industries end users, and promotion to wholesalers.
Promotion to wholesalers should receive primary stress due to the extended reach made possible by the wholesaler network with its existing customer base. The sales force of these wholesale distributors needs to be educated on H20 Industries’s positioning statement so that they all understand the important sales advantages of segregated resin. Being able to offer DI exchange service to a distributor’s customer list is a great advantage to the distributor, and this fact needs to be clearly spelled out to them. Therefore, the H20 Industries relationship with a dealership network is one in which both sides benefit.
H20 Industries should strive to create a small-town, friendly relationship with its customers. Company brochures will show a map with all the H20 Industries locations, including each newly acquired distributor. The distributor trucks, as well as H20 Industries vehicles, would carry the H20 Industries logo, helping all to achieve name recognition. Cost savings would result through sharing literature, leads (by territory and/or industry), co-op marketing costs, and the sharing of technical expertise.
Direct marketing to customers within easy reach of H20 Industries should stress service. As a major supplier of resin stated: “US Filter is a huge concern that closes down at 5 P.M. on Friday.” Customers for H20 Industries need to feel that they can get service after hours, and even on a Saturday if need be. These customers feel much more comfortable dealing with an exchange service that is closer in size to the customer, and where the exchange service is an important portion of total sales revenue of the supplier. Prompt deliveries, trouble-free installations, good technical advise, etc. are main building blocks of the promotion strategy.
5.4 Sales Strategy
The sales strategy is to concentrate on that segment of the market most easily captured by the following sales feature: segregated regeneration of portable resin. In addition, the fastest way to reach the sales goal for the first several years is by actively working to develop a dealership network for H20 Industries.
5.4.1 Sales Forecast
Sales Projections:
Sales (July 1999) are running at less than 15% capacity monthly, exclusive of rental revenue. This approximates 285 cubic ft per month. The plant capacity will be 100 cu ft per day, on a one-shift basis. Based on the potential market outlined in the Marketing Section of this plan, growth in sales of regenerated segregated resin should reach 433 cu ft per month by October (equals 20 cu ft/day) which is this plan’s starting point, and growing steadily each month until 80 cu ft per day is reached (80% capacity) by the end of the first year. Total production of segregated resin is assumed to be split into equal quantities of anion, cation, and mixed bed.
Once the 80% capacity utilization level is reached (October 2000), unit sales will grow modestly in year two and year three. This growth can be achieved within the capacity limits of 100 cu ft daily (26,000 cu ft per annum) without increases in production labor. Further increases in segregated regeneration would require overtime labor charges. Also, for the projection purposes, direct unit costs for years two and three remain at the level of year one.
The bulk regeneration pad will have a capacity of 20 cu ft and can handle two batches during an eight-hour shift, totaling 40 cu ft/day. We will assume sales for bulk regeneration will grow at the rate of 5 cu ft/day in the first month reaching capacity of 40 cu ft/day after eight months. Sales are split between mixed bed (50%), 25% anion, and 25% cation. Sales of bulk resin will grow 15% each of the first three years. As the bulk regeneration, unlike the segregated regeneration, is not labor intensive, this 15% growth can be achieved without increases in production labor.
In projecting unit prices per ten cu ft. Prices will be assumed at:
- $630/10 cu ft for mixed bed (segregated)
- $570/10 cu ft for anion or cation (segregated)
- $430/10 cu ft for mixed bed (bulk)
- $320/10 cu ft for cation or anion (bulk)
The above prices will be reduced for dealers who will deliver and pick up at the factory to:
- $422/10 cu ft for mixed bed (segregated)
- $382/10 cu ft for anion or cation (segregated)
- $288/10 cu ft for mixed bed (bulk)
- $215/10 cu ft for cation or anion (bulk)
We will assume that 50% of all sales will go through dealers, so the unit price weighted average of the retail and dealer prices will be:
- $526/10 cu ft for mixed bed (segregated)
- $476/10 cu ft for anion or cation (segregated)
- $359/10 cu ft for mixed bed (bulk)
- $267.50/10 cu ft for cation or anion (bulk)
Variable Unit Costs:
The costs connected with one cubic foot of segregated anion treatment involve the cost of:
- City water.
- City sewer disposal.
- Cost of carbon filtering and converting city water to H20 Industries.
- Cost of heating water.
- Cost of Sodium Hydroxide.
Cost of replacing small amounts of lost resin.
- City water is supplied by Newark, at $2.70 per 100 cu ft, which works out to (7.48 gallons in one cubic foot) $0.0036 per gallon. It requires one gallon per minute for 45 minutes to regenerate one cubic foot of anion, which comes to 45 gallons. The slow rinse needs one gallon/minute for 20 minutes, and the fast rinse needs five gallons/min for 40 minutes. This comes to 220 gallons. Finally, testing takes another 12.5 gallons. Total water consumption per cubic foot of anion resin is 277.5 gallons, or $1.00.
- All water used eventually passes to the sewer which is metered at $2.45 per 100 cubic feet or $0.0032 per gallon. Cost per cubic foot of anion serviced is $0.91.
- Cost of carbon filtering and converting city surface-sourced water to H20 Industries is arrived at by assuming that one cu ft of regenerated resin has the capability of producing sufficient H20 Industries to regenerate five cu ft of spent resin. The costs of regenerating one cu ft of anion resin without H20 Industries costs are approximately $8.96. Dividing this amount by five comes to approximately $1.80 for the H20 Industries per gallon of anion resin serviced.
- Gas to heat incoming city water (average temp 40 degrees) up to 100 degrees goes by a formula (8.34 X number of gallons X temp rise) or 500.4 BTU’s per gallon. 277.5 gallons would need 138,610 BTU’s which, when divided by 104,000 BTU’s per thermal unit, comes to 1.3352 therms. One therm (assume G41 rate class) is billed at $.81 by Essexgas, so 1.3352 therms will cost $1.08.
- Sodium hydroxide is a caustic chemical supplied in a 55-gallon drum containing 50% solution. The regeneration process requires one drum to regenerate 12 anion tanks of each two cu ft. Therefore, one cubic foot of anion requires 2.2917 gallons, or .04167, of a drum. One 55-gallon drum costs $80.50 (Hubbard-Hall Inc.). Cost per cubic foot of anion servicing is $3.35.
Experience indicates that with each regeneration it is necessary to replace approximately two percent of the resin. Anion resin costs $130 per cu ft. Cost is $2.60 per cu ft of anion serviced.
Summary of Anion servicing costs:
- City Water: $1.00
- City Sewer: $0.91
- Carbon filtering and DI: $1.80.
- Gas to heat water: $1.08
- Sodium Hydroxide: $3.35
- Resin replacement: $2.60
Total for anion servicing: $10.74
The costs connected with servicing one cubic foot of segregated cation treatment involve the cost of:
- Cost of heating water (not needed for cation treatment).
- Cost of Hydrochloric acid.
- City water is supplied by Newark at $2.70 per 100 cubic feet which works out to (7.48 gallons in one cubic foot) $0.0036 per gallon. It requires one gallon per minute for 20 minutes to regenerate one cubic foot of cation, which comes to 20 gallons. The slow rinse needs one gallon/minute for 20 minutes, and the fast rinse needs five gallons/minute for 30 minutes. This comes to 170 gallons. Finally, testing takes another 12.5 gallons. Total water consumption per cubic foot of cation resin is 202.5 gallons, or $0.73.
- All water used eventually passes to the sewer, which is metered at $2.45 per 100 cubic feet, or $0.0032 per gallon. Cost per cubic foot of anion serviced is $0.66.
- Cost of carbon filtering and converting city water to H20 Industries is estimated at $1.46 per cu ft of cation serviced based on experience that one cu ft of regenerated cation resin has the ability to produce enough H20 Industries to regenerate five cu ft of cation resin. ($7.32 divided by five equals $1.46)
- No cost to heat water.
- Hydrochloric acid is supplied in 55-gallon drums containing 30% solution. The regeneration process requires two drums to regenerate 12 tanks of each two cubic feet, using an eight to ten percent solution. Therefore, one cubic foot of cation requires 4.6 gallons or .08363 of a drum. One 55 gallon drum costs $63.70 (Hubbard-Hall Inc.). Cost per cubic foot of anion servicing is $5.33.
Experience indicates that in the process of regeneration about 2% of the resin needs to be replaced. Cation resin costs $30 per cu ft. Cost is $.60 per cu ft of cation serviced.
Summary of Cation servicing costs:
- Resin replacement: $0.60.
Total: $8.78 for cation servicing.
Costs of servicing one cubic foot of mixed bed:
A mixed bed tank is more time-consuming as it requires a separation stage prior to regeneration. City water (not DI) is mixed with salt. This solution is used to bathe the anion and cation resin in a cone until the two resins separate, at which point the cation and anion are treated in the regeneration stage in the same manner as the single bed anion and cation. One mixed bed contains twice as much anion as cation. This aspect results in a weighted cost of $10.09 per cu ft Salt consumption: every cubic foot of mixed bed needs 1.5 cu ft of brine solution. There are 7.48 gallons per cu ft This comes to 11 gallons of brine needs. A 22% salt solution in this quantity of water would amount to amount two pounds. Salt is supplied by Hubbard-Hall Inc. at $.095 per pound. Adding the cost of the two pounds of salt to the weighted average cost of $10.09 comes to $10.28.
Total cost of mixed bed serving: $10.28 per cu ft.
- Bulk Regeneration Variable costs:
- Water. According to the spec sheet, 2,459 gallons are needed for 20 cu ft of mixed bed. At $0.0036 per gallon, this comes to $8.87, or $0.444 per cu ft of resin serviced.
- Sewer. Assuming all the water goes down the sewer with a minimal need for balancing chemicals, at $0.0032 per gallon, this comes to $0.4027 per cu ft of resin serviced.
- Per cu ft of mixed bed. $1.39 of acid and $1.10 of caustic soda.
- Salt. $0.07 per cu ft.
- H20 Industries and filtering/softening assume the same costs as in the production of segregated resin (i.e. $1.80 for anion and $1.46 for cation).
- Loss of resin. Assume two percent. At $130 for anion and $30 per cu ft of cation (ratio 2:3 cation to anion), a blended cost of $90 at two percent comes to $1.80 per cu ft.
- Heat for water. 3.2 therm at $.081 divided by 20 cu ft comes to $0.13 per cu ft.
- Total bulk mixed bed: $6.95, or $69.50 for 10 cu ft.
Tank Rental Income:
Because of the high costs of purchasing tanks, many new customers opt for renting tanks on a monthly basis. For purposes of these projections we will assume that:
- Dealership-generated sales resulting in tank rentals will be handled by them (i.e. ignored in these projections).
- Half of all directly-generated sales will involve rental tanks (i.e. total unit sales for October amount to 534 cu ft of which half will be dealer-generated. Total direct sales in October = 267 cu ft of which half (133 cu ft) will need rental tanks.
- Assume, for simplification of projections, all rentals will be in 12 inch tanks holding 3.6 cu ft with rental price of $40 per tank. October will see rental income of $1,480 (133 cu ft divided by 3.6 cu ft/tank times $40 rental per tank).
Tank Sales:
It is assumed that those customers who do not opt to rent their tanks will already have their own tanks or will purchase tanks from H20 Industries. Sales of tanks is assumed at only five percent of the number of monthly rental tanks. Sales price is $1,200. Cost equals $450.
5.5 Strategic Alliances
The relationship between dealerships and H20 Industries could be called a strategic alliance. These water service companies have an extensive customer base. Most of the customers have needs such as water softening, filtration, reverse osmosis maintenance, swimming pool maintenance, etc., however, many dealership customers have H20 Industries needs as well. At present, these water service companies must direct their customers to US Filter or supply the customer through US Filter. Forming a relationship between H20 Industries and these dealerships would quickly result in substantial sales increases for H20 Industries and would result in increased prestige and profits for the dealerships.
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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.
Water Purification Business Plan Template A well-defined plan relies on market research and stresses quality. It also helps you secure funding and start-up assets, fulfill an unsatisfied market need, attract customers, monitor start-up expenses, and prevents very expensive shut down.
How to Write a Water Purification Business Plan in 7 Steps: 1. Describe the Purpose of Your Water Purification Business. The first step to writing your business plan is to describe the purpose of your water purification business. This includes describing why you are starting this type of business, and what problems it will solve for customers.
How to Write a Water Purification Business Plan in 2023 | by Pro Business Plans | Jan, 2023 | Medium Write Sign up Sign In 500 Apologies, but something went wrong on our end. Refresh the...
In summary, water purification plant business is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale servicing a community or you can choose to start on a large scale with several outlets in key cities all around the United States of America. 2.
Start your own water purification business plan H2O Industries Strategy and Implementation Summary Besides direct sales effort to large users of H20 Industries, a major element of the company’s marketing efforts will be to develop a distributor network through existing local water service companies.