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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. The 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.
Executive Summary
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 agreed terms and conditions favorable to us. The reason behind this successful execution is a well-thought-out water purification and bottling business plan.
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. If you intend to raise loans, you should also study some business plans for banks because 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. Including this detail in your water purification business plan will help you in subsequent planning. The recurring customers of Aqua Dreams are identified as:
- Hotels
- Restaurants and Canteens
- Event Planners
- Teenagers
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.
Company Summary
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 so that he doesn’t miss on any important aspect.
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. If you are adding farm-related aspects to your business, it would be beneficial to also read out farmers market business plan before making a business plan for your startup.
Step2: Get Recognized
Note
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. Besides, producing healthy, portable, and well-packaged bottled water, we aim to impart perfect customer care service.
Step3: Offices
The cooperate office of Aqua Dreams will be located in the industrial zone of Orleans. It will be a feasible location since it would grant easy access to resources. Consequently, the cost of acquiring production factors would be low. The market trends in 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.
Step5: Marketing
The last step is developing and executing a marketing plan to promote your services. In your business plan for bottled water, you must add marketing strategies that you will be using to reach out to the target customers. For diverse and unique advertisement ideas, research is imperative. You may need to visit several business operational models such as a liquor store business plan to gain an insight into the expectations of your target market.
| Start-up Expenses | |
| Legal | $114,400 |
| Consultants | $0 |
| Insurance | $22,200 |
| Rent | $31,600 |
| Research and Development | $10,000 |
| Expensed Equipment | $52,200 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $233,800 |
| Start-up Assets | $122,400 |
| Cash Required | $209,000 |
| Start-up Inventory | $39,000 |
| Other Current Assets | $122,000 |
| Long-term Assets | $287,000 |
| TOTAL ASSETS | $779,400 |
| Total Requirements | $1,013,200 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $233,800 |
| Start-up Assets to Fund | $779,400 |
| TOTAL FUNDING REQUIRED | $1,013,200 |
| Assets | |
| 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 |
| TOTAL ASSETS | $1,137,800 |
| Liabilities and Capital | |
| Liabilities | $19,200 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $58,100 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $77,300 |
| Capital | |
| Planned Investment | $1,013,200 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,013,200 |
| Loss at Start-up (Start-up Expenses) | $47,300 |
| TOTAL CAPITAL | $1,060,500 |
| TOTAL CAPITAL AND LIABILITIES | $1,137,800 |
| Total Funding | $1,013,200 |
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
This type of bottled water is the most often used to replace tap water. It has varying levels of dissolved minerals and does not contain added carbonation. In this bottling water business plan, we will list how much sales of this product were expected in a period lasting three years.
- 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 meet the expectations of our 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 are thinking how to start a water bottling plant, it is recommended that you go through this water bottling business plan pdf and 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. 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. If you don’t know who you will be interacting with, you can refer to the customer groups of Aqua Dreams mentioned below:
Business plan for investors
5.2.1 Hotels
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 water 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.
5.2.2 Restaurants
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. Our products will also assist them with their purification systems installed in the kitchens.
5.2.3 Event Planners
Nowadays, instead of serving water in glasses, it is preferred to offer bottled water to the guests. Hence event planners are expected to procure bottled water from us and provide it to the customers they are dealing with.
5.2.4 Retailers
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 therefore we expect to have great sales of it.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Hotels | 32% | 31,900 | 38,280 | 45,936 | 55,123 | 66,148 | 10.00% |
| Restaurants | 28% | 31,800 | 38,160 | 45,792 | 54,950 | 65,940 | 10.00% |
| Event Planners | 14% | 11,700 | 14,040 | 16,848 | 20,218 | 24,261 | 10.00% |
| Retailers | 26% | 21,300 | 25,560 | 30,672 | 36,806 | 44,168 | 11.00% |
| Total | 100% | 96,700 | 116,040 | 139,248 | 167,098 | 200,517 | 10% |
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 those 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.
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 in 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
| 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 |
| Sales | |||
| 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 |
| TOTAL SALES | $2,221,250.00 | $2,731,249.00 | $3,358,343.77 |
| 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 that in a donut shop business plan.
It is important to account for different kinds of costs to forecast financial returns accordingly. These costs also include the salaries of employees at the purification plants. To give you an idea of average salaries in the market, the salaries of our employees are quoted in this purified water business plan.
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
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Plant Manager | $40,000 | $44,000 | $48,400 |
| Operations Manager | $32,000 | $35,200 | $38,720 |
| Production Assistants | $172,000 | $189,200 | $208,120 |
| Marketing Officer | $25,000 | $27,500 | $30,250 |
| Delivery Drivers | $65,000 | $71,500 | $78,650 |
| QA Engineer | $25,000 | $27,500 | $30,250 |
| Total Salaries | $359,000 | $394,900 | $434,390 |
Financial Plan of water purification and bottling business
A sole focus on increasing sales does not ensure that your business has become successful. For generating profits, you need to do a thorough analysis of your water company profile and estimate 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, you should evaluate the business projections and ratios to assess how the financial trajectory of your enterprise will go in the coming years. These assessments are important to highlight in your business plan for a water purification plant because they help investors decide whether to fund your bottled water startup or not. Besides, they help you direct your efforts to achieve your business goals.
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
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.20% | 8.26% |
| Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
| Tax Rate | 24.03% | 24.21% | 24.60% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5340 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $231.00 |
| Average Per-Unit Variable Cost | $0.62 |
| Estimated Monthly Fixed Cost | $163,800 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $2,221,250 | $2,731,249 | $3,358,344 |
| Direct Cost of Sales | $508,750 | $593,203 | $660,234 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $508,750 | $593,203 | $660,234 |
| Gross Margin | $1,712,500 | $2,138,047 | $2,698,109 |
| Gross Margin % | 77.10% | 78.28% | 80.34% |
| Expenses | |||
| Payroll | $359,000 | $394,900 | $434,390 |
| Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
| Depreciation | $2,300 | $2,350 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $2,900 | $3,000 | $3,200 |
| Payroll Taxes | $24,000 | $25,000 | $27,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $538,200 | $578,350 | $628,290 |
| Profit Before Interest and Taxes | $1,174,300 | $1,559,697 | $2,069,819 |
| EBITDA | $1,174,300 | $1,559,697 | $2,069,819 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $234,860 | $311,939 | $413,964 |
| Net Profit | $939,440 | $1,247,757 | $1,655,856 |
| Net Profit/Sales | 42.29% | 45.68% | 49.31% |
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 Sales | $51,000 | $55,080 | $59,486 |
| 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 | |||
| Cash Spending | $42,000 | $42,000 | $45,000 |
| Bill Payments | $27,000 | $28,000 | $31,000 |
| 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 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $69,000 | $74,520 | $80,482 |
| Net Cash Flow | $21,000 | $23,000 | $25,000 |
| Cash Balance | $27,000 | $30,000 | $33,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $24,000 | $26,880 | $30,213 |
| Inventory | $4,300 | $4,816 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $282,000 | $315,840 | $355,004 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
| TOTAL LONG-TERM ASSETS | $24,400 | $27,328 | $30,744 |
| TOTAL ASSETS | $294,000 | $329,280 | $370,440 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,700 | $20,944 | $23,541 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,000 | $21,280 | $23,919 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,000 | $16,800 | $18,883 |
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $53,000 | $57,770 | $63,547 |
| Earnings | $193,400 | $210,806 | $231,887 |
| TOTAL CAPITAL | $285,000 | $310,650 | $341,715 |
| TOTAL LIABILITIES AND CAPITAL | $300,000 | $329,280 | $370,440 |
| Net Worth | $293,400 | $319,806 | $351,787 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
| Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
| Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
| Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
| NET WORTH | 100.45% | 101.25% | 102.19% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
| Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.8 | 34.645 | 33 |
| 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. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
| Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQ
- 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 and management.
- How do I start a water purification business?
You can make a business plan and execute it in a set time frame. 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 a bottled water business without a well-defined plan, your venture might not get successful.
- Is packaged drinking water business profitable?
The profit margin in the mineral water business is highly dependent on your products and location. This business can be profitable if you research what is in demand in the market and come with up unique sales ideas to let your customers know about you.
- How much does it cost to manufacture a bottle of water?
The cost of manufacturing a bottle of water differs from business to business based on the technology that is being used. Moreover, the scale and production level will also affect the cost incurred during manufacturing.
To get an idea of how you can cut costs, you can see a butcher shop business plan. It is generally assumed that mass production leads to lower manufacturing costs and in turn prices.
Download Water Purification and Bottling Business Plan Template in pdf
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