While the pricing is higher for a smaller amount of cases you need to keep in mind that when starting a business you need to start small. Its quite understandable why the major economies of conglomerates are more suited to dominate such a line of business because of the bulk weight and the required complex transportation network. It will also allow you to see your label on an actual bottle and get feedback before you print pallet after pallet of your own personalized bottled water. You can even implement portable services by using a portable option of an osmosis system if you plan on changing locations often during the business launch. Therefore, doing things like drinking from plastic bottles, using plastic containers and food bags wont increase your risk of cancer. You are expected to choose a location that is easily accessible especially as it relates to your distribution network and supply of raw materials et al. Just like any business, market research based on demographics and psychographics is an essential step. Develop Iron-clad Competitive Strategies to Help You Win, 18. Hire Employees for your Technical and Manpower Needs, 16. The industry is responsible for the employment of well over 14,360 people. The truth is that if the taste and quality of your bottled water fluctuates, you are likely going to struggle to get your customers coming back; people usually go for products that are of good quality. You can also check up with your state or city to know if you will require a professional certification before you can be licensed to run your own bottled water production business. It is not so for sole proprietorships and partnerships. These are some of the basic insurance cover that you should consider purchasing if you want to start your own bottled water production business in the United States of America; When it comes to choosing a location for a bottled water business, there are key questions you should answer and key factors that must be considered. There are loads of factors that should be considered before choosing the option to follow. There is no denying that a bottled water business is a very lucrative type of work to get into. Dollars to start and brand a small scale bottle water production company in North America. Well be providing you with a guide that should help you hit the ground running. This is the key areas where you will spend your start up capital; Going by the report from the research and feasibility studies, you will need about 500,000 U.S. It is only the money that you invested into the limited liability company that will be at risk. As a matter of fact it is common to find bottled water production companies especially medium scale and small scale bottled water companies specially labeling their bottled water for specific occasions to meet the demand of their clients. Youll find a variety of different niches to choose from like flavoured, mineral, distilled, sparkling, PH-modified, and custom-sized bottled water. Expect to face mild or serious resistance from the government in the worst-case scenarios, such as economic downturn, laws, and new regulations. , Cost for water purifying, bottling and packaging equipment , Cost for store equipment (cash register, security, ventilation, signage) , The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) , Commercial Vehicle Operators Registration for distribution truck, Appropriate drivers licenses for drivers, Proof of ownership, proper identification and vehicle license, Depot, commissary or service support facility meets vending unit operation needs, Copy of license for the service support facility and/or a recent inspection report, Introduce your bottled water brand by sending introductory letters to residence, bottled water merchants and other stakeholders in your target and other cities, Open your bottled water production company with a party so as to capture the attention of residence who are your first targets, Engage in road show in targeted communities from time to time to sell your products, Advertise your products in community based newspapers, local TV and radio stations, List your business and products on yellow pages ads (local directories), Leverage on the internet to promote your bottled water brands, Place adverts on both print (community based newspapers and magazines) and electronic media platforms, Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote your bottled water brand, Install your Bill Boards on strategic locations all around major cities in the United States of America, Engage in road show from time to time in targeted communities, Distribute your fliers and handbills in target areas. With that you will be able to appeal to all your target market. Water is one of the most valuable resources humans have. "I want to start a bottled water company!" One creativity approach that is common is ensuring that their bottled water conforms to the appropriate PH level. When you decide to start your own bottled water business, you need to be quite aware of the regulations, risks, and responsibilities youre going to take on. If you decide to start your own bottled water production company in the United States, Canada, and Australia or in Europe, you are sure going to face some challenges and threats that are peculiar to similar business. You can expect costs for a license from the FDA and a permit from your state health department. There is hardly any industry or line of business anywhere in the world where there is no competition, as a matter of fact, it is competition that brings creativity and innovations in the business world. A standard water plant includes water borehole, effective water treatment and water purifying machines, water bottling machines, a mini lab and good drainage system. You will also need a permit from your state health department. In every industry, it isnt new that there are brands that are way ahead of others. The US has around 565 licensed bottled water producers and distributors across all the states. Given the heavy bulk weight of industry products and the relatively low value per unit sold, bottled water production is generally taken on by large companies with major economies of scale and heavy investments in transportation. The fact that the entry barrier for starting a small scale bottled water production business is low means that there is bound to be more players in the industry no matter the location you choose to start yours. In other to stay competitive in this industry, you must ensure that your bottled water is distributed and always available in outlets within your target market locations. Why Should You Include Drink Bottles in Your Promotional Strategy. Contact Dragan, How to Start a Successful Plumbing Business, Tablet and Business: Ways You Can Use a Tablet for Business. The Coca Cola Company, Nestle and Pepsi Co are the world leaders in the bottled water industry; they have the lion market share in the United States of America and in most countries of the world. So when you are drafting your marketing ideas and strategies for your bottled water production business, make sure that you outsmart what your competitors are offering. Sorry if I have crushed any dreams but we get this question so often that I had to address it. This is so because the amount required to set up a bottled water production plant is not a piecemeal. Then the boiling chamber will heat up to waters boiling point, and water evaporates into steam and rises up into the cooling system. Basically, there are no niche areas in the bottled water production industry simply because bottled water are expected to meet same standard in any part of the world hence the industry is strictly regulated. Choose a Catchy Business Name from the ideas Below, 11. All you need to do is to ensure that your bottled water is packaged is affordable and packaged in different sizes and of course different prices. Starting from scratch is better than purchasing a franchise because youll be able to control many variables that are going to affect your growth eventually. For the best experience on our site, be sure to turn on Javascript in your browser. Research conducted by IBIS World shows that in the United States of America, the level of concentration in the Bottled Water Production industry is modest, as the top four players are expected to generate 65.5 percent of revenue. it will give your target market options. So also part of the creativity and innovations that will keep you highly competitive is to ensure that you produce bottled water in different sizes, packages and flavors et al. Carrying out appraisals on a regular basis and training your employees will help you run your organization effectively. This is where local and small businesses can get a piece of the pie of the bottled water industry, in addition to dispenser-used bottled water. Although water distillers design may differ, note a typical water distiller features a boiling chamber, a cooling system, and a separate storage tank. Here is a list of bottled water franchise opportunities and that of mineral bottled water. Copyright 2022 Profitable Venture Magazine Ltd | All Rights Reserved | See About Us | Contact Us | Privacy Policy | Disclaimer. In essence, you must come up with creativity and innovations if you must carve out a market for yourself within the available market in your community, city, state or country. You can start your bottled water plant as limited liability company (LLC) and in future convert it to a C corporation or a S corporations especially when you have the plans of going public. For instance, maintenance of your plant can cost tens of thousands of dollars every year for a small plant, and even more for a medium to the large-scale bottled water plant. But if you just want to start a business with the aim of just making profits and you dont have the required finance and experience to build a business from the scratch, then it will pay you to buy the franchise of a successful brand in the bottled water production industry. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp), 10. Note that it will cost around $750,000 and up to $1.5 million or more to open a water bottling plant, depending on the size of the business. The truth is that, if your customers have the opportunity to buy a well packaged and cheap bottled water from your competitors, the possibility of losing them cant be ruled out. Even though the number of businesses joining the industry is increasing, the growth is constantly on the rise with minimum odds of stagnation. A water distiller is simply a machine that helps to purify water by removing more than 99.9% of contaminants, including chemicals, heavy metals, microorganisms, and sediment. However, if you intend starting it on a large scale, then you should consider spreading beyond your local community to state level and even national level. Before you can be permitted to operate a bottled water production company both in the United States of America and in other parts of the world (developed world most especially), you are expected to apply and obtain certain certification or permits as the case may be. Affordability, availability of labor and safety are also some of the factors that you should consider. Also, note that you will be expected to obtain a license from the U.S. Food and Drug Administration (FDA). First, you have to understand that Canada has one of the best municipal water systems in the world and no one really needs to buy water in plastic bottles. As a matter of fact, economic downturn hardly affects the consumption of bottled water simply because it is a commodity that is as important as the air we breathe in. Starting a bottled water company requires among other things: Chances are you are sitting in your home or office and you have none of those things. Experts project the bottle water production industry to grow at a 4.0 percent annual rate. If your intention of starting a bottled water production business is to grow beyond one city, if you want to have presence in key cities in the United States and Canada, then starting your bottled water production company from the scratch is your best option. The bulk of the start up capital will be sent on leasing or acquiring a facility and also in purchasing water purifying, bottling, and packaging equipment. Ensure that your bottled water are well branded and that all your staff members wear your customized clothes, and all your official. Part of what you need to focus on in this line of business is how to build a standard water purification and packaging plant, a robust distribution networks, branding and of course how to maintain your machinery and equipment and to take care of your overhead before your business breakeven. Start small, build the foundation of your business and work up to the full truckload orders of bottled water. Decide Whether to Buy a Franchise or Start from Scratch, 6. No, there is no evidence to prove that anyone can get cancer from using plastics. These businesses are known to make money by charging customers for processing and bottling potable water. You wouldn't start a car dealership by calling up Toyota and asking for the best price you could get on 100 Camrys. "I have this great idea." Despite the fact that bottled water are consumed by all and sundry, it is important to choose a location that will give your economy of scales; a location that will give leverage to favorably compete in the industry as a new entrant and also to make reasonable profits et al. My point is before you go requesting quotes for thousands or tens of thousands of bottles do some more research as to where you are going to sell these bottles. When it comes to starting a bottled water production company, then you should make plans to build a standard water plant. This is going to be your key to defining the price and type of packaging you should use to appeal to the broadest sector of the market. It is very important to reward excellent performance in your organization; it will go a long way to encourage healthy competition in your organization. For example, setting up an LLC protects you from personal liability. As regard acquiring a facility, if you have the required finance, it is to your advantage to acquire a property or lease a facility to be used for your bottled water production plant; it usually gives you the freedom to design the facility the way you want to it to be and install safety gadgets as you so desire. The store will not work correctly in the case when cookies are disabled. Have it in mind that no educational degrees are necessary but you may require special permitting and licensing from the government. In addition, good and healthy drinking water tends to be available on demand in public taps and homes. Or, you can grow more organically from sales profits. These are some key factors that you should also consider when drafting your business plan; You are expected to write about the concept of your business, descriptions of your company, your companys vision statement, and mission statement, where your company will be located, your management team, your investment philosophy and perhaps why people should patronize your products or services. Do you want your driveway to look like this? The location of the business is going to determine a lot of those variables since the regulations and laws related to bottled water production differ from one country to another. If you are considering starting a large bottle water production company with several distribution networks servicing several cities, then you should look towards budgeting well over 5 million United States dollars. The meetings could be daily, once in a week, twice a week or once in a month. Proof of ownership, proper identification and vehicle license et al. The truth is that if there are fluctuations in the supply of your brand of bottled water, customers can choose to shift allegiance and settle for other options available. Basically, starting a standard bottled water production company is indeed a capital intensive business. Position your Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing your products. Companies in this industry usually have an assortment of water offerings, such as spring water, mineral water, sparkling water and flavored water in a range of sizes and prizes. One of the good things about competition is the fact that it helps one sit up and rise up to the challenges there are. The bottled water business is a daunting business to get into without having a clear framework or plan to follow. The bottled water are properly capped and labeled accordingly before being sold to the general public. You will need about $500,000 U.S. Have it in mind that the initial cost of opening a bottled water business will include storage tanks, filling machines, water treatment machines, filters, conveyors, sealers, water sterilizers, water dispensers, bottle loaders, trucks, and employees to work in the plant. According to the reports made by IBIS World, the United States the top 4 major companies are expected to generate 65% of the revenue, leaving a fair portion to smaller businesses. Lastly, ensure that you offer your customers incentives if you want to retain them and of course continue to generate repeated sales from them and also to attract new customers. Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. It's great that you are motivated and have ideas but be practical in your approach. Stop, you aren't going to start a bottled water company. For instance, in Toronto, Canada, some of the requirements for bottled water production business include business and liability insurance, a Commercial Vehicle Operators Registration for the truck, a food and drinks handler certificate, appropriate drivers licenses for distribution drivers, assistants licenses for assistants, and a health inspection. The easiest way to get into the bottled water business is by purchasing a franchise. With this kind of business, if you want to start on a small scale, you can choose to start servicing your local community.