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. 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.
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 an agreed terms and conditions favorable to us. The reason behind it is a well-thought-out water purification and bottling business plan.
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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 because it is required by business plans for banks, and 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 and assess it in your water purification business plan. 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.
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 because we want to give our customers value for their money apart from making profits.
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. For example, farmers market business plan is labor extensive, but a more technical water purification business.
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. Much more than producing healthy, portable, and well packaged bottled water, our customer care is going to be second to none.
The cooperate office of Aqua Dreams will be located in the industrial zone of Orleans. It will be feasible for the management to have access to resources, and the cost of acquiring production factors would be low. 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.
The last step is developing and executing a marketing plan to promote your services. To make your business plan bottled water successful, you must employ marketing strategies to add coherence to your business objectives. For example, if you are using a liquor store business plan, you might have goals related to the number of stores you aim to set up in the following months.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$233,800|
|Other Current Assets||$122,000|
|Start-up Expenses to Fund||$233,800|
|Start-up Assets to Fund||$779,400|
|TOTAL FUNDING REQUIRED||$1,013,200|
|Non-cash Assets from Start-up||$940,800|
|Cash Requirements from Start-up||$112,000|
|Additional Cash Raised||$50,000|
|Cash Balance on Starting Date||$35,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$58,100|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,013,200|
|Loss at Start-up (Start-up Expenses)||$47,300|
|TOTAL CAPITAL AND LIABILITIES||$1,137,800|
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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
Bottled still water is the most often used to replace tap water. Water has varying levels of dissolved minerals and does not contain added carbonation. One of the critical products mentioned in this bottling water business plan.
- 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 attract 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 thinking how to start a water bottling plant, it is recommended that you go over this water bottling business plan pdf to 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, as 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. You can refer to the customer groups of Aqua Dreams mentioned below:
Business Plan for Investors
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 waters 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.
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. We will also assist with purification systems installed in the kitchens.
5.2.3 Event Planners
Nowadays, instead of serving water in glasses, it is preferred that bottled water is offered to the guests. Hence event planners are expected to procure bottled water from us and provide it to the customers they are dealing with.
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 the way to go!
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
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 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.
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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 on 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
|Unit Sales||Year 1||Year 2||Year 3|
|Bulk Purified Water||8,500||9,010||9,551|
|Still Bottled Water||9,250||9,805||10,393|
|Sparkling Bottled Water||6,500||6,890||7,303|
|Flavoured Bottled Water||7,500||7,950||8,427|
|TOTAL UNIT SALES||31,750||33,655||35,674|
|Unit Prices||Year 1||Year 2||Year 3|
|Bulk Purified Water||$60.00||$69.60||$80.74|
|Still Bottled Water||$75.00||$87.00||$100.92|
|Sparkling Bottled Water||$70.00||$81.20||$94.19|
|Flavoured Bottled Water||$75.00||$87.00||$100.92|
|Bulk Purified Water||$510,000.00||$627,096.00||$771,077.24|
|Still Bottled Water||$693,750.00||$853,035.00||$1,048,891.84|
|Sparkling Bottled Water||$455,000.00||$559,468.00||$687,921.85|
|Flavoured Bottled Water||$562,500.00||$691,650.00||$850,452.84|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Bulk Purified Water||$15.00||$16.50||$17.33|
|Still Bottled Water||$15.00||$16.50||$17.33|
|Sparkling Bottled Water||$20.00||$22.00||$23.10|
|Flavoured Bottled Water||$15.00||$16.50||$17.33|
|Direct Cost of Sales|
|Bulk Purified Water||$127,500.00||$148,665.00||$165,464.15|
|Still Bottled Water||$138,750.00||$161,782.50||$180,063.92|
|Sparkling Bottled Water||$130,000.00||$151,580.00||$168,708.54|
|Flavoured Bottled Water||$112,500.00||$131,175.00||$145,997.78|
|Subtotal Direct Cost of Sales||$508,750.00||$593,202.50||$660,234.38|
Personnel plan of water purification and bottling business
The average cost involved in a bottled water production water business plan is similar to a donut shop business plan. It is important to account for different kinds of costs to forecast financial returns accordingly. These costs include the salaried employees at the purification plants, which can be high and are quoted in the purified water business plan.
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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
|Year 1||Year 2||Year 3|
Financial Plan of water purification and bottling business
A sole focus on increasing sales does not ensure that your business has become successful and yields profits. It would help if you did a thorough analysis of your water company profile and estimated 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, it would help analyze your yearly expenses to determine the possibilities of reaching an economy of scale. This is an important thing to highlight in your business plan for water purification plant because this helps investors decide whether to fund your bottled water startup.
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
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|Average Per-Unit Revenue||$231.00|
|Average Per-Unit Variable Cost||$0.62|
|Estimated Monthly Fixed Cost||$163,800|
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8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$508,750||$593,203||$660,234|
|TOTAL COST OF SALES||$508,750||$593,203||$660,234|
|Gross Margin %||77.10%||78.28%||80.34%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$538,200||$578,350||$628,290|
|Profit Before Interest and Taxes||$1,174,300||$1,559,697||$2,069,819|
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
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$22,000||$23,760||$25,661|
|SUBTOTAL CASH FROM OPERATIONS||$73,000||$79,570||$85,936|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$74,000||$79,000||$85,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$69,000||$70,000||$76,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.08%||74.89%||75.00%||75.00%|
|Pre-tax Return on Assets||96.30%||101.12%||106.17%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.56%||34.60%||35.67%||N.A.|
|Return on Equity||55.80%||57.53%||59.31%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
1. 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.
2. How do I start a water purification business?
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 bottled water business without a well-defined plan, your venture will be handicapped from the outset
3. Is packaged drinking water business profitable?
The profit margin in the mineral water business is highly dependent. If you sell 500-ml, 1-liter, and 5-liter jars, the average profit will be 10-15%. However, if you sell 5-liter jars, the average yield will be around 30-40%
4. How much does it cost to manufacture a bottle of water?
Cost of manufacturing differs from business to business. For instance, a bottled water business cost will be different from that mentioned in a butcher shop business plan. The average plastic bottle of water costs $1.29.
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