Top 10 Tips for Buying Bottled Water for Sale

Are you interested in starting a bottled water business, but would you rather buy an existing or abandoned bottling plant than start a new one from scratch? Here are ten tips to get you started.

The bottled water business has continued to grow over the years. Many companies make millions of dollars a year selling packaged bottled water as many people choose to drink bottled water because it is considered to be safer and healthier to consume and contains many minerals. and less bacteria.

A bottling plant is a place where water is treated and packaged for sale and distribution. Buying an existing plumbing plant can help you save on the costs of starting a bottled water business, but as a newcomer to the bottled water business, there are high chances that you don’t know what to look out for when you want to buy your factory. for bottled water production, so I decided to list some of the important things to look out for when buying a bottled water distillery.

Top 10 Tips for Buying a Bottled Water Business

1. Perform legal due diligence. Before purchasing a bottled water facility, it is important to do a thorough investigation and get as much information as possible about the business. One of the things you need to know is why the owner is selling and if there are any legal issues.

2. Find out what are the conditions of assets and machines

… It is important for you to know the condition of machines and equipment in order to determine their current condition.

For example, you need to know when machines were purchased, how they were maintained, and whether or not certain equipment was obsolete. You may need to hire a mechanical engineer or someone with extensive experience with these machines to help you complete the inspection.

3. Explore the water source -: Have you ever bought a bottle of water that seemed to taste bad and smell bad ? I bet it would be very difficult to convince you to try another bottle of the same brand. Your bottled water business is only as good as the source of water you are using, so if you are purchasing an existing water business, it is important to research the source. water to determine if it is clean and healthy.

4. Determine the cost of installation

… You also need to know how much to install and what price to pay. You can do this by getting a list of all available assets and equipment and then determining their market value.

Remember, you are buying used equipment, so you have to take depreciation and wear into account. You can query company records to give you an idea of ​​the net book value of each piece of equipment, then take stock of how much you have to pay for what you buy.

5. Determine the production capacity … Another thing to consider is the production capacity of the plant. If you plan to produce 500 cans of bottled water per day, it does not make sense for you to switch to a 200 cans per day bottling plant. It is therefore important to determine the number of boxes of water that a plant can produce per day.

6 Concerns related to environmental zoning

-: Another smart step to take is to visit the environmental authority to see if there are any regulatory or area laws that violate the business. You need to hide the questions in order to find out if you are allowed to have a bottled water factory in the area.

7. Outstanding Debt … You should also conduct a thorough investigation to determine whether the business is in debt or not. Since you will be purchasing a lot of equipment, you need to make sure that the equipment has not been purchased in installments and that some unpaid debts are still outstanding.

You should also make sure that none of the assets you buy have been used as collateral for the loan. You should also know if all taxes and fees have been paid on time.

8. Work environment

-: Another reasonable measure to take is to carefully check the environment in which the plant is located and determine whether this working environment is safe and whether there are any hazardous situations to be avoided. You should also make sure that all safety rules and regulations are strictly followed.

9. Seller help -: To be on the safe side, you should ask the salesperson to stay awhile to offer help and help you learn the ropes. While it may cost you money in consulting fees, it will provide you with some form of after-sales protection and support …

10. Employees, suppliers and competitors:

… Finally, you should be able to chat with some of the former owner’s staff. Talking to employees will give you an idea of ​​how the business is conducted and also give you an idea of ​​potential danger signs to watch out for. It would also help to know who your competition will be.

If a seller goes out of business due to fierce competition, you need to know how to better prepare for a deal with the competition when you start your business. You may want to look at the company’s previous financial statements to determine if the business was otherwise profitable.

It doesn’t make sense for you to spend thousands of dollars to buy existing water. The bottling plant only finds out that bottled water is not profitable in the area because people prefer to drink tap water. You should also talk to your existing suppliers and customers to see if they would be willing to hang out with you once you take over the business.

You can bookmark this page