Taking less water can result in tons of health complications. In essence, water is an essential natural gift that keeps us going.
To this, starting a water factory can be very lucrative. To start a profitable bottled water factory, it is cogent that you understand the market and production process.
There are different phases to the bottled water business. You might choose to stick with manufacturing alone or extend to distribution.
Anyway, you must know which water you sell to hydrate your customers. Maybe distilled, purified, or any other kind of water.
Good planning would help the rate of your returns. You should be expecting a 300% return on your investment. Let\’s start with the crucial step you need to consider.
Six Necessary Steps To Start A Profitable Bottled Water Factory
Consequently, avoiding key factors while embarking on the business can be very detrimental.
Check out these factors before starting up a bottled water factory.
Doing a thorough view of the market before jumping into it is necessary. It\’s more like knowing how deep a river is before diving into it.
After your questioning and research, make a list of your findings. This list must centre around customers\’ desires and maximizing profit.
While making your market research, keep in mind that most bottled water is a commodity product that requires large quantities. It is advised you make research for a wide market area.
Below is a list that can help in creating your research list.
- Who are my customers?
- Where are my customers?
- What is the estimated number of customers?
- Who are my competitors?
- What is the level of threat they pose?
- How do I make their customers mine?
Perform a feasibility study and complete your research by all means. You could hire an expert to make things easier and better.
Once you have achieved good research, you can move on to writing a business plan. Business plans are very important in raising capital and carrying staff along.
A proper business plan contains an Executive summary, Marketing plan, legal requirements, Staffing, and location analysis.
This step guides the challenges your factory will face and how you plan to solve them.
Where your business activities would take place are a major factor determining the business\’s success.
Factories are meant to be distant from settlements to prevent the circulation of harmful substances. When picking a location for your market, having that factor of a good site in view is important.
Nevertheless, the closer you are to the market, the better it becomes for sales. Closeness to the target market also reduces production costs in transportation.
Setting up your factory requires a lot of important materials. Depending on your capital, you might rent some and buy others. Materials also have degrees of strength and durability. Your capital should determine your choice.
Important equipment in a bottled water factory is storage tanks, delivery trucks, capping machines, Power generators, Bottle loaders, bottle fillers, conveyor belts, and a water purification unit.
A borehole would also be needed considering that NAFDAC requires a depth of 100 to 150 feet depending on the location and distance from the septic tank.
Employees are the backbone of any firm. A bottle water factory requires a noticeable amount. It is of utmost priority that skilled staff is employed to manage the equipment and push sales forward.
More so, not everyone might be an expert from inception, be ready to train some of your workers over the years.
Before the operation, seek a license. Regulations are also a big part of siting your factory. Production of consumable goods needs to be vetted by NAFDAC. They consider the location and production process before allowing your operation to continue.
It is also important to get permission from the food safety department f the Local government where your factory would be situated.
Lastly, every business in Nigeria must register under the Corporate Affairs Commission (CAC). Follow the regulation processes religiously to avoid bans and criminal charges.
There are many competitors in the bottled water business. It might take months before you start recording huge sales. In addition, it\’s one of the seasonal products in Nigeria. Your sales during the dry season might be far from what you make during the rainy seasons.
Success in the bottled water business requires focus and patience. Most importantly, it would help if you created ideas for reaching many people.