Would you like to start a packaged drinking water plant? here is a complete guide to starting a packaged drinking water business with no money and no experience .
Ok, so we have provided you with a detailed example of a packaged drinking water business. plan template. We also took it a step further by analyzing and drafting a marketing plan for a trial drinking water plant, backed up by actionable guerrilla marketing ideas for prepackaged drinking water plants. In this article we will cover all the requirements for starting up a packaged drinking water installation. So put on your entrepreneurial hat and let’s get on with it.
Why Start a Packaged Drinking Water Plant?
The construction and operation of a packaged drinking water plant in the United States is an opportunity to produce a product that promotes environmental sustainability. But starting this business involves many processes that you cannot ignore.
First, you need to create a comprehensive business plan that defines the mission of your business, a description of your target customer, the state of the market, the way you plan to enter the market (marketing plan), the estimated budget for your business and the goals you want to achieve during the first or two years of work.
Having a business is very necessary, but note that a business plan needs research. You need to look at packaged drinking water installations in your area and identify the unmet customer needs that your company can meet.
Then you will need to choose a suitable name for your business. A fictitious brand name is a name that people use instead of their own to create a business. A business license may be required to legally do business in the state.
Also keep in mind that you will need to look for investors who will support your integrated drinking water business. Venture capitalists, angel investors, and bank loans can provide the start-up capital needed for bottle design, website, and bottle supplier partnerships. Also, don’t forget to design and design a logo and graphics for your factory.
Look for inspiration in the art you love or the shapes and colors that appeal to you. Once you have decided how to package your drinking water, you will need to find a supplier. For example, online bottle companies will provide you with descriptions and specifications regarding their bottles, including the price for buying and shipping items.
Read on as we walk you through the process of creating and launching a successful packaged aquatic plant drink in the United States.
Starting a packaged drinking water business. The complete guide
- Industry overview
Packaged water is one commodity that is consumed in all parts of the world. Reports show that the economic downturn has little to no impact on the consumption of packaged drinking water because it is a commodity that is as important as the air we breathe. It is known that enterprises in this industry purify and pack drinking water in plastic and glass bottles for consumption.
Packaged drinking water is properly sealed and labeled appropriately before being sold to the general public. We were able to note that the level of concentration in the bottled drinking water industry is modest, with the top four expected to generate 65.5% of the revenue.
Due to the heavy weight of industrial products and the relatively low unit price of packaged drinking water, it is generally accepted by large companies with great economies of scale and large transportation investment.
Although the packaging process is carried out as one of many activities within the Corporate Portfolios of International Food and Beverage Companies, the rest of the industry’s production is handled through small local players.
The reports say the industry is a thriving sector of the United States of America economy. and they generate over $ 5 billion annually from over 565 registered and licensed water companies. From our detailed research we were able to establish that the industry employs over 14,360 people. Experts predict an increase in water production at 4.0% per year.
Even though large fish in this industry account for more than market share, starting a small packaged drinking water business has minimal barriers to entry with low start-up capital. Many players in the packaged drinking water industry are small and medium-sized businesses that serve the local community.
A lot of factors that motivate aspiring entrepreneurs to dive into this business is that the amount required to start a business is not as good as other small businesses.
It is also very important to state that the target market for packaged drinking water covers people of all races, cultures, financial backgrounds and ages. This makes it easier for many entrepreneurs interested in business anytime they want; Barriers to entry are quite affordable, and any serious entrepreneur can comfortably raise start-up capital without collecting loans from a bank to build a successful plant.
Commencement of work on the analysis and analysis of the sales market for enterprises for the production of packaged drinking water
- Demography and psychography
It’s all about providing our customers with easy access to drinking water. Whether it’s purified, distilled, or natural spring water, your packaged drinking water business will keep your customers hydrated. We believe that starting your own packaged drinking water business can be a rewarding experience, allowing you to make money as well as helping your customers lead a healthy lifestyle.
Remember, this business is ideal for people who are passionate about their health and want to run a healthy lifestyle business. We believe that your ideal customers will typically be commercial businesses such as local grocery stores. However, some smaller companies sell directly to consumers or businesses.
; List of Niche Ideas in the Packaged Drinking Water Business
This business is not something you wake up one morning and decide to take a chance. You need to find out what actually has to do with it and what it takes to run such a business, and this can only be achieved through market research. This industry can be very confusing and exponential, so it is advisable that you do your research with a consultant or expert in the field.
The result of your research will determine the type of packaged drinking water to be produced; your location and your pricing strategy Some of the more common types of packaged drinking water from which you can choose a niche may include
- Artesian water installation
- Fluorinated water unit
- Ground water plant
- mineral water plant
- purified water plant
- soda water plant
- spring water plant
- sterile plant water
- well water plant
The level of competition in the packaged drinking water business
Research has shown that the global package Over the past few decades, drinking water sales have skyrocketed, reaching an estimate of about US $ 79 billion and a volume of over 214 million cubic meters in 2016. U.S. sales reportedly reached about 42 billion bottles of water in 2021, a slight decline from 2016 levels. Note that between 2090 and 2015, consumption more than quadrupled. Spring water and purified tap water are currently the world’s leading sellers.
Reports also showed that the United States was the second largest consumer market for packaged drinking water in the world, followed by Mexico, Indonesia, and Brazil. China surpassed the United States to take the lead in 2013.
In the United States, packaged drinking water and tap water are regulated by various federal agencies: the Food and Drug Administration (FDA) regulates packaged drinking water and the Environmental Protection Agency (EPA) regulates tap water quality.
The International Bottled Water Association (IBWA) is headquartered in Alexandria, Virginia. From 2070 (16 brands), over 2098 (50 brands) to 2012 (205 brands), the number of mineral water brands in the US has grown significantly.
List of famous water packaging companies
- The Coca Cola Company
- Nestle (Nestle Pure Life)
- Pepsi Co. (Aquafina)
- Fiji Water
- Evian
- Voss Artesian Water
- Perrier
- Smart water
- Arrowhead Mountain Spring Water
- Natural spring water Ice Mountain
- Natural spring water Deer Park
Economic analysis
You need to understand that packaged drinking water businesses make money by charging customers fees for handling and packaging drinking water. We believe that the growth potential of this business is virtually unlimited. Companies like Nestlé own large water treatment and treatment plants where they produce packaged drinking water for countless grocery stores and generate billions in profits every year. Most packaged drinking water plants start out as small to medium sized plants.
Keep in mind that you can grow your business at a fast pace by taking outside funding from a bank or venture capital firm. Maybe you can grow more organically from sales revenue. But note that leveraged growth (bank loans) has its benefits.
For example, your profits are likely to grow rapidly over time. Don’t forget that this can shorten the time it takes you to grow and achieve your income growth goals. However, it can also burden you with lenders who want to see overly optimistic profit targets.
Start a packaged drinking water business from scratch or buy a franchise
Many entrepreneurs would like to enter the packaged drinking water business starting from scratch rather than through a business franchise. But starting a packaged drinking water business is not easy, and many fail within the first year.
You should be aware that there are many factors to consider when buying or starting a business. We believe that by purchasing the lucrative bottled drinking water business you will shorten the time it takes to get your return on investment because you will benefit from proven work and existing customer base.
Also if you are looking for a reliable packaged drinking water business with a lot of support, you might want to consider buying a franchise. We believe that franchises offer proven business models, funding, marketing and technical support, including other services.
You will need to sell the franchisor’s equipment under the brand name and follow certain operating instructions. If you want more freedom and flexibility, you can work as an independent dealer. Even as an independent dealer, you can expect some vendors to offer you technical training and, in some cases, marketing support.
Potential Issues Associated with Starting a Packaged Drinking Water Business
Don’t think that starting this business will be relatively easy if you lack experience in this area, but if you are hardworking and willing to learn, it will surely be easier for you. Please note that the profit that you can make from this type of business depends to a large extent on your marketing and sales strategy. Here are some of the problems you may encounter:
- industry competition
- sectoral laws
- writing a good marketing plan
- getting the right place
- Finding skilled workers
- Drawing up a business plan
- Getting insurance
Starting a packaged drinking water business Legal aspect
- Best Legal Entity for Drinking Water Packaging Business
You must understand that any decision you make here will dictate the pace and success of your business, so that decision must include a number of considerations, including taxation, ownership, governance, capital structure and possible exit strategies, to name a few.
The Best Bottled Drinking Water Entity Business is an LLC. A Limited Liability Company (LLC) is an unincorporated entity in which one or more persons, referred to as “members”, have limited liability for the debts and claims of the business, even if they are involved in the management …
Nowadays, the world as a whole understands the importance of starting your own business as an LLC. This legal entity has great flexibility in structuring the management of your business through an LLC governing document known as an “operating agreement.”
The benefits of setting up an LLC usually outweigh any perceived disadvantages and are generally not available to Property and general partnerships. It is also advisable that you consult with an experienced attorney and accountant when preparing your business plan to ensure that your facts and figures are accurate and lawful. because you should avoid creating loopholes
Catchy Business Name for Ideas Packaged Drinking Water Plant
- Mineral plant
- Clean Water Hill Factory
- Alright waters
- Clean well
- Wateria
- Dirt Free
- Water active
- Water wave
- Europa plant
- Life safe aquatic plant
- bring clean
- foresight
- Ecopure
- Germ Away
- water hug
- Neat life
- Pure blend
- white moon plant
- Pure first
- Water star
Insurance policies
The importance of water in our daily activities cannot be quantified. Water is a valuable natural resource entrusted to the packaged drinking water industry. When you start doing this business, be prepared to face many problems, ranging from ruptured main water pipelines to water quality and purification problems.
In many cases, water supply systems are being pushed to their limits by growing urban populations. Keep in mind that these complex risks require specific coverage unique to this class of business, and may include:
- General liability insurance
- Domestic marine insurance
- Property insurance
- Workers’ compensation insurance
- Commercial auto insurance
- Umbrella liability insurance
- Bonds
Intellectual property protection
You should be aware that competition in this industry is alarming, even though very few big players control the industry. Experts believe that intellectual property rights are required by the packaged drinking water industry to protect trademarks and patents.
But we advise you to learn the basics of patenting and protecting any ideas and procedures that you may have developed. It should also include your slogan, logo, and other marketing designs. You should know that without proper protection, your ideas could be developed by someone else, which could jeopardize your business.
It is also very important that you learn more about trademarks, copyrights, and other laws of packaged drinking water. Meet with an expert in your industry.
We also recommend that you register your trademark as it helps protect the results you create. It is also important to note that proper protection of your trademark and patent can lead to successful brand development and a significant increase in the value of your company or product in the industry. We believe that another way to protect your patents and trademarks in the packaged drinking water industry is to sign labor contracts with your key employees.
Do you need professional certification to run a packaged drinking water plant?
Believe it or not, professional certifications are very important in this business as they indicate the level of knowledge and experience demonstrated by the certified person and are a profitable benchmark in the industry. The professional certification required for a packaged drinking water business may include
- professional certification of water quality
- certified water treatment specialist
- chief water specialist
- certified water specialist
- certificate of a specialist in the operation of wastewater treatment plants
- certified water technologist
List of Legal Documents Required for Packaging Drinking Water Plant
Obtaining all the legal paperwork required to run a packaged drinking water installation is critical to the success of your business. You must make sure that you request and receive all possible paperwork to avoid drama that could damage your business’s image and vision.
- Federal Business Licensing Requirements
The Food and Drug Administration (FDA) regulates packaged drinking water. FDA regulations for packaged drinking water include Good Manufacturing Practices (GMP), identification standards, and labeling requirements.
- Local business licensing requirements
Certain government approvals and licenses may be required to conduct packaged drinking water business. Many businesses in the United States need to collect sales tax on the goods or services they provide. Possible documents required for a successful business without delays:
- business license
- labor agreements
- federal license
- state license
- Local license
- Proof of insurance
- The right to protect intellectual property
- Federal tax identification number
Financing Your Packaged Drinking Water Business
The goal of this industry is to produce drinking water and make it available to consumers. Even in a market as crowded as this business, you can still take action if you have significant financial resources and creativity in the branding and packaging industry.
This will surely attract your own fair share of the existing market. Funding is a major determinant of the world of packaged drinking water. Ways to finance packaged drinking water A company may include:
- funds from personal savings
- obtaining loans from families and friends
- investors
- Getting loans for small business
- Obtaining microloans
- Attracting an angel investor
Choosing a Suitable Location for Your Packaged Drinking Water Plant
The location of your business will also determine the success and failure of your plant. There are many factors to consider when choosing the right location, both business and legal. From a business perspective, challenges include having adequate space in the premises for current and future operations; Are the utility systems (electrical and plumbing) adequate for operations and waste disposal; and is there sufficient office and storage space?
Also note that there are many legal considerations that need to be weighed, including land use and zoning requirements for parking; the legality of a commercial enterprise on the premises; loading and unloading; and compatibility with local waste management systems.
We believe that there are also factors for the acquisition of premises. If the premises are to be rented out, the third party landlord must match the nature of the business. Also, the landlord may need a long term lease. Will the long term lease match your vision and growth?
Do you have the option to leave your lease if your business needs a change before the lease expires? Do you have an opportunity to extend your lease on favorable terms ? Keep in mind that these factors only highlight the myriad of challenges that most profitable businesses face when choosing a location to operate. We suggest you get professional help in making this decision.
Launch of a packaged drinking water business. Technical and personnel requirements
First of all, you should know that the FDA allows you to choose between two sources of groundwater water and public water supply. If you choose an accessible groundwater source, it will need to be inspected and certified sanitary to meet FDA requirements.
In addition to a constant and reliable source of water, you will need bottles, disinfecting equipment, and bottling equipment. , packaging and labeling materials. Sophisticated systems that will load empty bottles onto a conveyor, rinse, disinfect, fill, seal and label them are available from several companies. Also, if you intend to deliver your product to buyers, also consider the type and number of delivery trucks required.
We also believe you will need business experience, industry contacts, and a practical understanding of how water is handled and packaged. Please be aware that no degrees are required, but you may need special licensing from the government.
Many packaged drinking water business owners and managers have extensive management experience, especially in related industries. Remember, plant start-up costs include tanks, filling machines, water treatment machines, filters, conveyors, sealants, water sterilizers, water dispensers, bottle loaders, trucks, and employees to operate the plant. …
Depending on the size of the business, start-up costs can range from $ 500,000 to $ 750,000. But some businesses may require more capital, up to $ 1.5 million. USA or more, depending on the volume of your business.
We strongly recommend that you take the time to find a sustainable water source for your work. Your water source will greatly affect your bottom line. Packaged drinking water has a high mark-up. If you sell to grocery stores, you can charge between $ 1 and $ 2 per bottle or flat rate per truck or pallet. Many companies negotiate regular deliveries to establish themselves as “anchor customers”.
You may or may not sell your products at a lower price to get these deals, but will generally increase your revenue as a result. You must start building your team immediately. A packaged drinking water company cannot operate as a standalone company or a one-man company, you need 20 to 50 employees to get started, and you need to increase the number of employees to 50-100 or more in the first 3 years …
Manufacturing process including packaged drink Aquatic plant
The process of packaging water can be very confusing, but it starts first with racks of empty bottles collected from homes or elsewhere. When they collect the bottles, they are checked for cleanliness and placed in blue racks. Immediately, the racks arrive at the filling line, the bottles are visually checked again and each bottle is analyzed for foreign matter.
Once the bottle passes these checks, it is loaded onto the washer conveyor. After that, the next step is to check the bottles for leaks or cracks. You can do this with a leak tester. A leak tester creates a vacuum on each bottle and then makes sure that no air is trapped in the bottle. If not, the bottle is tested and moved forward to fill.
As soon as the bottles enter the bottle washer, they go through the washing process. The machine is controlled by computers and basically washes each bottle for about two minutes in a washing solution at 130 degrees. At this point, the bottles are then rinsed and disinfected with an ozone solution (ozone is about 1500 more powerful than chlorine) and finally the bottles are rinsed again with water for the finished product.
Thereafter, the bottles are inverted and transferred to the filler. Timers and pneumatic valves ensure each bottle is properly filled, capped and time / date coded – all without touching the human hand. Finally, the bottles end up in the racking area, where they are reinserted into the blue racks, which are loaded onto trucks or collected for distribution.
Starting a Packaged Drinking Water Business Marketing Plan
- Marketing Strategies for the Packaged Drinking Water Business
Marketing and distribution are key in this business. Remember, your target market should be grocery stores, vending machine companies and operators, stadiums, event venues, and other large businesses and businesses that require large volumes of packaged drinking water. Lack of marketing experience can sometimes be overcome with persistence and innovation – two key characteristics of successful marketing of a drinking water packaging services business.
- Social media monitoring
The reports say that using social media as a marketing tool is one of the most successful and newest waves to hit the small business community. Combined with a functional company website, social media attracts new customers and turns them into brand advocates.
Don’t forget that you should be especially alert to potential negative brand comments on social media sites. Please note that to counter negative social media; you will have to monitor your brands’ online presence and engage in conversation, redirecting negative conversations to more positive topics.
Rebranding is a deliberate marketing technique designed to achieve long-term results. In the packaged drinking water service industry, brands are tied to specific stages in the life of a business. But if your business grows, you will inevitably outgrow your brand, and it is time to prepare for a comprehensive rebranding.
But first, consider all your options if you are confident you have the skills required to do it. Before you introduce a new brand to your clients, we recommend consulting with a professional marketing firm.
- Flawless Marketing Ethics
Winners in the packaged drinking water business
Before you start analyzing the best ways to beat your competitors, you need to find out who your competitors are by doing your local competition research. We strongly encourage you to find out who your competitors are by searching online directories and searching your local Yellow Pages.
If there are several competitors in the same industry (that is, it is impossible to describe each of them). 1) then demonstrate the number of businesses that are competing with you and why your business will provide customers with higher quality or cheaper services / products than your competitors. Several strategies for winning your competitors in this industry include
- Inexpensive focus
This strategy is similar to the cost leadership strategy. it just focuses on a niche market. Instead of selling a product to the entire population, it is sold to a specific segment of the population. The goal of this strategy is to become the cheapest supplier in this segment.
- Focus of differentiation
This strategy is similar to the minimal one. A cost focusing strategy also focuses on a specific subset of the market. But instead of promoting a product or service as being the cheapest, they are marketed as unique in some way.
- Cost leadership
This strategy is always used by large companies that can obtain products cheaply through economies of scale. They then turn around and sell those low-cost products to customers, adding a minimum mark-up to keep the price low. We believe that the idea behind this strategy is to become the cheapest provider of goods or services so that your competitors will have a hard time competing with you. Because this strategy requires economies of scale, it is poorly suited for most small businesses.
- Differentiation
Knowing what your customers want gives you an edge over your competitors because your competitors simply cannot offer what you have to offer. But to develop unique products and services, you often have to invest heavily in research and development that many small businesses simply cannot afford. Companies that depend on differentiation should be careful not to develop easily imitated offerings, because this can destroy uniqueness.
Strategies to Boost Your Packaged Drinking Water Brand Awareness and Build a Corporate Identity
Many experts have come a long way to explain the importance of brand awareness. It makes your business what it is and attracts customers for you. We believe that the best way to achieve brand awareness is to show yourself to the target market, and this is the only reason why it is important to have a meaningful marketing plan in order to reach them.
We strongly recommend that you use a variety of print and electronic media. Keep in mind that it is better and more economical to use the internet and social media platforms to promote your company, and besides, it is quite effective and widespread. Some of the qualities you need to use are listed below;
- Dedication to your customers
- Creative problem solving and quick decision making
- Patience and knowledge
- People skills
- Business and financial management skills
- Work and ethics
