Do you want to open a mineral water business? here is a complete guide to starting a mineral water business with no money or experience .
Ok, so we’ve provided you with a detailed example of a mineral water plant business plan template. We also took it a step further by analyzing and writing a sample mineral water marketing plan backed by actionable guerrilla marketing ideas for mineral water factories. In this article, we will go over all the requirements for starting a mineral water business. So put on your entrepreneur hat and let’s move on.
Why start a mineral water plant?
If you have a natural spring, well, or artesian spring on your property, you may need to consider starting a mineral water plant. Mineral water is said to be purified water enriched with minerals easily absorbed by the human body, such as iron, barium, and manganese.
Mineral water is usually extracted from natural resources such as drilled wells and springs, or it is mixed and treated with mineral salts to provide artificial enrichment. If the water contains less than 250 ppm dissolved solids, it is called natural mineral water.
No one can do without drinking water, so this business can easily become very profitable. However, while starting a business may seem simple enough, the fact that you intend to market your water source will put you under government scrutiny.
It is therefore important that you obtain a license for your source by first contacting the hydrogeologist and then submitting a statement with the accompanying hydrogeological report so that you do not have any problems with the official authorities.
Certain factors can affect the source of your water, including the water matrix, the location of the source, regional geography, local, state, and / or federal laws, and current supply and demand. Therefore, to ensure an efficient source development process, it is important to perform a preliminary analysis of the water you intend to market and to hire a hydrogeologist to assess the site early in the planning phase in order to whether a potential water source is safe.
In addition to doing an on-site assessment, it’s important to do your research and then write a comprehensive business plan to ensure your business is successful. The business plan should cover issues such as the type and size of the water facility you intend to install, how much it will cost you to start it, how much you intend to sell , when you think it will become profitable if you make your own. your own bottles, your marketing plan and the location of your business, among other things.
If you want to raise capital for others, it will do you a lot of good to have your business plan complete. You can use the services of a business planner to help you write a business plan, especially if you find that the technicalities can be overwhelming for a budding entrepreneur.
Starting a mineral water plant business. The Complete Guide
- Industry overview
Another factor that has spurred the boom in this industry is the growth of the tourism industry. Other factors include an increase in disposable income, an increase in population, and rapid urbanization and premiumization. According to the Bottled Water Producers Council, the bottled water market is growing steadily as most consumers do not trust the quality of the water provided in their municipalities.
People, regardless of their status, buy bottled water for use in their offices and at home, as this bottled water is considered to be free of pollutants and usually comes from protected and treated sources or wells. government oversight. Therefore, as the public water supply is still considered unsafe, the demand for bottled water is expected to continue to grow.
US consumption of bottled water per capita has increased dramatically in two decades, especially as Americans are now trying to lead healthier lives along with rising incomes. According to the Bottled Water Producers Council, there are more than 430 bottled water factories in the United States that produce more than 700 brands of different brands, as well as flavors.
While there are different distribution channels – commercial delivery, retail grocery, restaurant shopping, sale and home delivery of bottled water; Retail purchases represent the largest percentage of bottled water purchased.
In 2008, Americans drank more than 9 billion gallons of bottled water, averaging 30 gallons per person. Statistics show that Americans consume more bottled water than beer or milk. However, while most Americans prefer bottled drinking water, according to the Food and Water Watch report; nearly half of the bottled water sold to Americans comes from the tap.
China follows the United States as the second largest consumer of bottled water in the world, and while the growth in China is understandable given the lack of access to clean water in many regions, it is not so easy in the United States.
Launch of a market study for the sale of mineral water and feasibility studies
- Demography and psychography
The demographic and psychographic makeup of those in need of mineral water are those who want to lead healthy lives. This includes young people, middle-aged people and the elderly regardless of their class or status.
Therefore, if you want to define the demographics of your mineral water plant, you should strive to make it as comprehensive as possible.
List of niche business ideas you can specialize in
Consumption of mineral water is generally the symbol of a healthy lifestyle. This trend has become popular as most Americans are now aware of what they are consuming.
While there are not enough niches in this industry, it is important to note that if you intend to specialize in one or more niche areas, you should provide extensive research so as not to lose. time and resources on niche ideas that your target market won’t target.
Also, while large-scale mineral water plants find it easier to specialize in multiple niches due to the large scale of production and availability of resources, small-scale mineral water plants can only participate in a few. -a. Here are some of the niche ideas that some mineral water plants may specialize in. water:
- mineral water
- Still water
- flavored water
- Sparkling water
The level of competition in the mineral water industry
Level of competition in mineral water The industry is highly dependent on the size and location of the company, especially since it is an industry in which competition is usually national or international.
When it comes to a mineral water plant, this distance is definitely not a hindrance, especially when it comes to competition on a global scale, as customers trust the brand, especially when they feel they are getting something of the highest quality. No matter where your mineral water plant is located, you can always compete if you have a reliable distribution system.
Therefore, if you want to start your mineral water plant in the United States. In the United States, be aware that you will face not only local competitors, but also global competitors.
List of famous brands in the industry
There are well-known brands in every industry that serve as a guide for new companies to study them to find out what the weaknesses may be and how they can be exploited to their own advantage. Some of the well-known players in the mineral water industry have been around for a long time. time; others have deployed guerrilla marketing tactics to stand out, while others have become popular for their packaging and prices.
Some of the well known brands in the industry include;
- Spring in Poland
- Spring in a mountain valley
- Nestlé Pure Life
The consumption of mineral water has grown at such a rapid rate and has overtaken the soft drink market thanks to multinational companies such as Coca-Cola, Nestle, Pepsi, among others, which are looking to capture a significant market share. This growth trend observed in this sector proves that water will continue to dominate the beverage category and therefore provides entrepreneurs with the opportunities they need.
The United States is one of the largest consumers of bottled water in the world. The world has a global market share of over $ 50 billion, despite having reliable tap water. However, due to the fact that mineral water has been linked to medicinal benefits, some people choose to buy mineral water rather than take what comes from the tap.
Europe has seen the slowest growth, although Perrier and other commercial bottled waters have been around for centuries. In addition to North America, Asia and South America have experienced rapid growth.
Although there are different types of bottled water like mineral water, still water, sparkling water and flavored water; Still water is still the most popular type of bottled water, as it makes up the majority of the region’s stock.
Start a mineral water plant from scratch or buy a franchise
For any business you want to start, you will need to choose the best course of action for yourself: start a business from scratch or buy a franchise. While each option has its pros and cons, you should only choose the one that best meets your business needs.
If you are planning to start a mineral water plant from scratch, you should be prepared to handle several aspects of the business such as marketing, finance, management, etc. This can seem overwhelming for a new entrepreneur, which is why it is often advisable to develop a comprehensive business plan.
If you are determined to get started, buying a franchise may be your best bet; however, it is important that you treat the purchase of this franchise as you would any franchise, by doing thorough research.
The benefits of being a franchise include that you don’t have to worry about marketing and promotion, training and support; however, with a franchise system, you will not run a business under your own brand and be unable to make certain decisions on behalf of the business.
Threats and potential challenges you will face when starting a mineral water plant
Every business will face threats and challenges at any point in its start-up or operation, and therefore it is important that the entrepreneur is not only aware of this but also ready to overcome any obstacles that may arise.
However, it is important to note that although some threats and challenges can be easily resolved; Not everything can be, and when this happens, the entrepreneur must not only identify them, but also stay focused on achieving the intended goals and objectives of the business.
Some of the threats and challenges you are likely to face if you want to start a mineral water plant in the United States include: the need to deal with existing competition, tough government policies, the threat of a new competitor and an alternative consumer threat.
Set up a legal case for a mineral water company
- The best legal entity to use in this type of business
While each legal entity can have advantages and disadvantages that you should seriously weigh before choosing one, there are several attributes that can help you better decide which legal entity is best for your mineral water plant. Some of the attributes include: ease of customization, portability and control; tax matters, limitation of liability; and investor expectations.
Due to the degree of regulation of this type of company and the branch of its activity; it would be best if you started your business as a Limited Liability Company (LLC), S Corporation, or C Corporation. Even if there are other legal entities, such as sole proprietorships and partnerships, they will not be sufficient for the business you intend to do.
LLCs are known as hybrid legal entities due to the fact that they own most of the functions of other legal entities such as sole proprietorship, partnership, and corporation which is the reason why most entrepreneurs usually choose this as opposed to other legal entities.
For the purpose of this business, particularly if you do not wish to enter the public domain with your mineral water treatment plant, LLC will provide you with the flexibility, flat rate tax, and limited personal liability that is convenient for you. If you intend to become a public company, you may need to start with a company, which more formally requires you to use a lawyer.
Attractive business name ideas suitable for mineral water plant
One thing that you need to have before applying for a business license is the correct company name. The correct company name is very important because it can attract customers for your business, especially if it is unique and easy to pronounce.
Make sure you choose multiple names so that whatever you intend to use is used by others. can easily have a backup name in place. Some of the catchy trade names that you can use for your mineral water plant include:
- Spring lily
- Sweet spring
- Ever Mineral Water
- Swan mineral water
When opening a business in the United States of America, it is important that you make an effort to acquire the right coverage for yourself, the business, and your employees. According to the study, most of those who do not make adequate plans to purchase insurance policies for their business generally find it difficult to keep their doors open, especially after being struck by a natural disaster.
Therefore, if you don’t want your entire investment to be wasted, it is best to hire the services of an insurance agent to help you choose the right insurance policies for your business. Therefore, some insurance policies to take into account when purchasing a mineral water plant include:
- General liability insurance
- Workers’ compensation insurance
- Commercial Property Insurance
- Health insurance
- General disability insurance
- Car insurance
- Group insurance for business owners
- Mechanical failure
- Accident insurance
- Product Liability Insurance
- Professional liability insurance
Protection of intellectual property / registered trademark
The mineral water factory is not a unique activity as it involves the bottling of treated water for sale; however, those who add flavor to their water may wish to seek intellectual property protection to prevent their concept from being stolen from their competitors; otherwise, it is not necessary to request an IPP.
Do i need professional certification to operate a mineral water plant?
Mineral Water The industry is highly regulated and any entrepreneur wishing to start a business in this sector will need to comply with certain industry standards before obtaining a business license. This does not mean, however, that you will need some type of professional certification before you can run a business as long as you have the start-up capital and qualify.
That doesn’t mean, however, that you can’t get professional certifications that can help you run your business better if you want to.
List of legal documents you need to use vegetable mineral water
When opening a business in the United States of America, there is a list of legal documents that should be in place if you want to run your business legally. While some legal documents may differ depending on the type of business you run, some documents will still remain the same.
If, however, you are not sure what legal documents you will need to operate your mineral water plant, you should hire a lawyer to help you. Some of the legal documents you will need to operate your mineral water plant include:
- Registration certificate
- Operating Agreement for LLC
- Business plan
- Insurance policy
- Food permit processor certificate
- Business license and permit
- Hiring contract
- Employer Identification Number (EIN)
- Federal Tax Identification Number (TIN)
Financing of a mineral water production plant
Whatever scale you are looking for to start your mineral water business, one thing is for sure is that you will need some start-up capital that will allow you to start and run your business at a level where the business can generate its own income.
However, finding sources of start-up capital is not an easy task for any entrepreneur, so it is often advisable that every entrepreneur has a comprehensive business plan that will allow them to easily convince potential investors or financial institutions. can implement their business idea.
Some financing options to consider when starting your mineral water plant in the United States include:
- Obtain a portion of the start-up capital from personal savings and sell stocks
- Finding a low rate loan from family and friends
- Loan application at a financial institution
- Orientation of a venture capitalist or investor towards start-up capital
Choose a suitable location for your mineral water plant
One of the important decisions that you will make when considering starting a business is the location of your mineral water plant. Many entrepreneurs made the mistake of not doing a thorough research on their location and ended up wasting resources and ended up shutting down their businesses before they even started.
Since this type of business is highly regulated, you can’t just start your mineral water plant without going through an assessment. If the water source is located, for example, in your home, the area must be what the FDA deems safe before you can market the water.
If the area where your source is located has not been zoned, you will not be able to obtain a commercial license. Make sure the area is zoned, or you will get a conditional use permit after proving that your mineral water plant will not interfere with normal neighborhood activities.
If you don’t understand the dynamics of choosing a location, be sure to hire the services of a real estate agent to draw all the conclusions for you so that you don’t waste time and effort in a place where you will not be allowed to operate your business.
Creation of a mineral water company Technical and personal data
When starting a mineral water plant, it is important that you decide exactly on the type and size of water plant you plan to start, as this will let you know how much you will need to get started. a business, and therefore start-up capital that you should be careful of when researching sources. If a neighboring competitor started their game with a certain amount, this should give you an idea of your starting capital, and not necessarily the exact amount you need to start your own mineral water plant.
The first step in bringing your business idea to life is to first complete an online assessment before receiving your license application. Depending on the location of your planned water installation; Your permit application may be rejected, especially if it is in an area that has not been zoned for a mineral water plant.
The bottle you plan to offer to your target market is 200ml, 500ml, 1 liter, 2 liters, 5 liters and 20 liters and the quantity will determine the type of mineral water production facility you plan to install. that you must include; process tanks, alum, sand filter, reverse osmosis unit, micron filters, chlorination tanks, activated carbon filter, ozone generator, ultraviolet disinfection system, electronic chlorine dispenser, electronic alum dispenser, flushing automatic, filling and capping, reservoirs to collect water (raw and purified), pipeline, shrinking machine, microbiological instruments Administratively, you need computers, telephones, filing cabinets,
Building a solid business structure is very important, especially if you intend to force your business to achieve all of its goals and objectives. Make sure the staff you hire are not only experienced and knowledgeable, but also aligned with your goals and vision.
Some of the ones you should be looking for include; Managing Director (Owner), Marketing & Sales Director, Logistics Manager, Accountant, Driver, Customer Service Representative, Administrative and Human Resources Manager
So, the number of people you will need to successfully use your mineral in a water supply plant should be at least 8 people.
Service process in a mineral water plant
The process, which begins in a mineral water plant, begins with collecting the raw water in tanks for treatment. Water is mixed with alum to coagulate insoluble substances or heavy metals.Once the water has been coagulated, it is allowed to settle and then reverse osmosis is used to remove impurities.
The supernatant water then enters the chlorination tank where the chlorine gas is used for evaporation. disinfect the water. The water is filtered through sand so that undissolved impurities can be trapped, after which it is then passed through carbon filters to remove color and odor, as well as dechlorination.
The water passes through a series of micro-charges, as well as an ultraviolet disinfection system, before being packaged. The packaging bottles are rinsed, filled and then capped with a machine.
Start-up of the mineral water production plant Marketing plan
- Marketing ideas and strategies
No business plan is complete without a strategy for how the company’s products and services grab the attention of the intended target market. Marketing may seem like a very simple business, but it is one of the trickiest parts of running a business because if not all marketing ideas and strategies align with the overall goals and objectives of the business, they will inevitably prove to be very ineffective in the short and long term.
This is why a business plan is very necessary, because it allows the entrepreneur to have an idea of the marketing goals and objectives to be defined so that the strategies and ideas formed correspond to the marketing objectives set. as general objectives of the company. A well thought out marketing idea will allow a business to understand its target market.
However, the complexity of this type of business means that it would be best to hire the services of a reputable marketing agency that not only has a deep understanding of the market, but has made significant strides in helping similar businesses. to achieve their goals and objectives.
You can also hire an in-house marketing and sales team and make sure that the strategies you develop help the company achieve its goals. Below are some ideas and marketing strategies that are suitable for your mineral water plant.
- Use the services of a professional to design and build a website that you can use to promote your products
- Give your marketing and sales manager the means to physically market your products
- Use your social media platforms like Facebook, Twitter, Linkedin and Instagram to promote your business
- Install notice boards in strategic places to inform your mineral water plant
- Showcase your products to multiple industry stakeholders
- Advertise in local and national newspapers, magazines, radio and television. stations
Strategies to increase your brand awareness and create a corporate identity
Any entrepreneur who is serious about running a successful business knows how important it is to promote the business in order not only to create a unique body of personality for the business, but also to build awareness of your brand.
The absence of any kind of advertising strategy would mean a slow rotation of the products and services offered by the entrepreneur, and therefore a longer period of time to achieve the desired goals and objectives of the business.
In order to find the right strategies that will increase your brand awareness and create a corporate identity, it is best to research the intended target market carefully to determine what they want and then find out how you can meet their needs.
Due to the huge market for mineral water, if you intend to use a low level promotion strategy; you are unlikely to be noticed by your target market and therefore to stand out you will need the services of a promotion and advertising agency experienced and knowledgeable about your type of business to help you. Make sure any strategies you create align with your business goals and objectives.
Below are some strategies you can use to improve your brand and create a corporate identity for your target market;
- Be sure to advertise in local and national newspapers, magazines, and radio and TV stations.
- Encourage your customers to focus on the flavor of your water to create a corporate identity for your business
- Make sure you take the necessary precautions when it comes to packaging the bottles
- Try to position your bottled water as an unhealthy drink solution
- Place billboards in strategic places to promote your product
- Participate and sponsor relevant programs in the community