Because bottled water is a necessity in line with breathing fresh air, economic downturns seldom have an impact on consumer demand for it. Bottled water is essentially purified by production businesses before being put into plastic or glass bottles for use.
Prior to sale to the general public, the bottled water is properly capped and labeled. The majority of businesses in this sector offer a variety of water options, including natural spring, filtered water, sparkling water, flavored water, and water in a variety of quantities and prices. Ice production is another activity that participants in this sector are engaged in. Bottled water production by large firms that also produce soft drinks, food, and beverages is rather frequent.
Retailers, restaurants, sports clubs, and hotels, among other significant business organizations, are some of the partners you should work with if you want to succeed in this line of work. This is essentially what most regular bottled water manufacturing companies that rely on to enhance sales and revenue generation.
Without a doubt, if all goes well, this is a very profitable profession that can earn one a millionaire. One product that is consumed around the world is bottled water, and producers of this product are widely recognized for making money year after year if their companies are run efficiently.
Follow these 10 steps to start a bottled water business:
1. Develop a Bottled Water Business Plan.
2. Create a legal entity for your bottled water company.
3. File taxes for your bottled water business.
4. Open a Business Credit Card and Bank Account
5. Create an accounting system for your bottled water company.
6. Get the Permits and Licenses You Need for Your Bottled Water Business
7. Obtain Business Insurance for Bottled Water
8. Define your company’s brand for bottled water
9. Make a website for your bottled water business
10. Install the business phone system.
STEP 1:
Make a business proposal.
For an entrepreneur to be successful, they must have a clear plan. You can use it to map out your company’s specifics and identify some unknowns. A few crucial subjects to think about are:
- What will the name of your business be?
- How much will the first and ongoing costs be?
- How much are clients allowed to pay?
- Who is your intended audience?
What will the name of your business be?
Choosing the ideal name is difficult and crucial.
You might choose to use a business name other than your personal name if you run a sole proprietorship.
How much does it cost to start a bottled water business?
Storage tanks, filling equipment, water treatment equipment, filters, conveyors, sealers, water sterilizers, water dispensers, bottle loaders, trucks, and labor costs are all part of the startup costs for a water treatment plant.
For a basic facility, startup expenses can vary from $500,000 to $750,000. Nevertheless, depending on the scale of your company, some plants can need more funding—up to $1.5 million or more.
Additionally, a license from the Food and Drug Administration is required (FDA). Additionally, a permission from the state health department is required. To run your plant, you will also require workers, a water source, and a specialized bottle supplier. This task requires a lot of labor.
How much are clients allowed to pay?
The cost of bottled water is high. If you are reselling to grocery shops, you might be allowed to charge a flat amount per shipment or pallet in addition to $1 to $2 per bottle. Most businesses set up recurring shipments in order to position themselves as anchor clients. To secure these bargains, you might or might not sell your things for less, but you’ll usually make more money as a result.
Who are the target audience?
Customers are typically business organizations like the neighborhood grocery store. However, some small firms do engage in direct commerce with customers or other enterprises.
What recurring costs are there for a bottled water company?
The ongoing costs are high. For a small facility, maintenance can cost tens of thousands of dollars annually, and for a medium- to large-scale bottled water plant, maintenance can cost as much as (or more) every month.
Due to the procedure of cleaning and bottling water, utility costs might also be very high. The majority of employees demand a full-time pay as well as benefits, which drives up labor costs. Tens of thousands of dollars can be spent each month on liability insurance, health insurance, unemployment insurance, 401(k) matching and administrative services, and worker’s compensation insurance.
How does a company that sells bottled water earn money?
Customers pay a fee for the processing and bottling of potable water, which is how bottled water businesses make their money.
How much money can a company that sells bottled water make?
Profits may be anything from 100% to 500% or more.
How can you increase the profitability of your company?
By tapping into specialty markets like flavored bottled water, sparkling water, spring water, and mineral water, your company can grow even more profitable. Specialty water lines are offered by some businesses, and these include sports drinks, flavored sparkling water, and flavored mineral water.
Finally, think about providing flavored soda, designer waters, seltzer waters, and club soda.
STEP 2:
Create a legal entity.
The sole proprietorship, partnership, limited liability company (LLC), and corporation are the four main types of business structures.
If your bottled water company is sued, creating a legal business entity, such as an LLC or corporation, shields you from being held held responsible.
STEP 3:
Sign up for taxes
Before starting a business, you must register for a number of state and federal taxes.
You must register for an EIN in order to sign up for taxes. Really simple and cost-free!
Taxes for small businesses
Your choices for how your firm will be taxed may vary depending on the business form you select. For instance, some LLCs might benefit from S company tax treatment (S corp).
STEP 4:
Open a company credit card and bank account.
For the safeguarding of individual assets, it is crucial to use special company banking and credit accounts.
Your personal assets—your home, vehicle, and other valuables—are at danger if your firm is sued if your individual and company accounts are combined. This is known as “piercing your corporation veil” in business law.
Additionally, understanding how to establish corporate credit can assist you in obtaining loans, credit cards, and other funding under your company’s name rather of your own, as well as get better terms and credit limits.
Open a bank account for your company.
Establishing a company bank account is necessary for several reasons, including:
- separation of your personal assets from those of your business is a requirement for individual asset protection.
- simplifies bookkeeping and tax filing.
Establish net 30 accounts.
Net 30 account are used to create and maintain business credit and to boost cash flow. Businesses use a net 30 account to purchase items and pay off the entire balance within a 30-day period.
The major commercial credit bureaus receive reports from several net 30 credit providers (Dun & Bradstreet, Experian Business, and Equifax Business Credit). In order to be eligible for credit cards and other lines of credit, firms must first establish their company credit.
Purchase a business credit card.
Having a company credit card is beneficial since it:
- Put all of your company’s expenses in one location to help you distinguish between personal and corporate spending.
- Create a credit history for your business, which will be helpful if you ever need to acquire capital.
STEP 5:
Create a business accounting system
Understanding your business’s financial performance depends on keeping track of all of your expenses and revenue sources. Maintaining precise and thorough records also makes submitting your yearly taxes much simpler.
STEP 6:
Obtain the relevant licenses and permits
Heavy fines and even the closure of your business may come from failing to obtain the required permissions and licenses.
Requirements for Federal Business Licenses
Bottled water is subject to Food and Drug Administration (FDA) regulation. Good Manufacturing Practices (GMPs), standards of identification, and labeling requirements are all covered by FDA rules for bottled water.
Requirements for State and Local Business Licensing
Operating a bottled water business may require obtaining specific state permits and licenses. By going to the SBA’s reference to state licenses and permits, you can find out more about the licensing requirements in your state.
STEP 7:
Obtain commercial insurance
Similar to how a business needs licenses and permits to function legally and safely, insurance is also necessary. The financial stability of your business is safeguarded by business insurance in the case of a covered loss.
For various business kinds with various risks, there are many insurance policy types. If you’re not sure what hazards your company might encounter, start with general liability insurance. It’s a wonderful place to start for your company because this is the coverage that small businesses require the most frequently.
STEP 8:
Establish your brand
Your firm’s brand is what it stands for and how the public views your organization. Your company will stand out from rivals with a powerful brand.
How to market and advertise a bottled water company
In this industry, distribution and marketing are crucial. Grocers, vending machine firms and operators, stadiums, event venues, and other sizable commercial activities that require big volume bottled water supply should be your target market.
How to get new clients?
Make sure you follow through on your commitments, and keep your prices fair. This sector of the economy is very commoditized. The company that fulfills deadlines and offers the lowest (or at least competitive) pricing frequently prevails.
STEP 9:
Make a website for your business.
The next stage is to build a website for your company after creating your brand and designing your logo.
Although developing a website is a crucial first step, some people might worry that they can’t do it since they have no prior website-building knowledge. Although this would have been a valid concern in 2015, online technology has advanced significantly in recent years, greatly simplifying the lives of small business owners.
The following are the major justifications for not delaying the creation of your website:
- All reputable companies have websites, period. When it comes to putting your business online, it makes no difference what size it is or what industry it is in.
- Social media profiles for businesses on sites like Facebook or LinkedIn are not a substitute for a website that you control for your company.
- Making a simple website is now quite easy thanks to website builder tools like the GoDaddy Website Builder. To build a website you’re pleased of, you don’t need to pay a web developer or designer.
STEP 10:
Set up the phone system for your business.
One of the easiest ways to maintain privacy and separation between your personal and professional lives is to set up a business phone. Not only that, but it also enables you automate your business, provides it respectability, and makes it simpler for potential clients to find and get in touch with you.
Entrepreneurs that wish to install a company phone system can choose from a wide range of services. The best businesses have been examined and ranked according to their cost, features, and usability. To choose the best phone service for your small company, read our analysis of the Best Business Phone Systems 2022.