Pure Water / Bottled Water Business Plan in Nigeria & Feasibility Study
Pure Water / Bottled Water Business Plan in Nigeria – In this article, we are going to talk about the following:
- How to start a pure ware/ bottled water business in Nigeria.
- Why you should start the business in Nigeria.
- Sample Pure water/ bottled water business plan and feasibility study for loan applications, grant opportunities and competitions.
- Equipment / Machines you need in producing safe pure water / bottled water.
- Cost Analysis for starting the business.
Introduction to Pure Water/ Bottled Water Business in Nigeria
Water they say is life. Water is no doubt an essential part of human life, existence and sustenance on earth. Research shows that about 71% of the earth surface is covered with water and similarly 50-65% of the total human mass is also made up of water. Also the brain is mostly made up of water, bringing us to the conclusion that we cannot survive without water
There is hardly anything we can do independent of water; water plays a pivotal role in the existence of all human life on earth, so investing in water business as one of the most consumed commodity is paramount.
Water is the most consumed natural resources but research also shows that 1 out of 10 people in the world lack access to clean drinking water. So investing in the production of clean and portable table water is not just a way of making money but also a way of service to humanity. The provision of clean and portable water on the go for any average Nigerian is purpose for the start of such venture and the growing need of this commodity is another drive.
Extreme weather conditions due to global warming also has increased the general consumption of water all these and many more are the reasons for viability of this business.
Things Needed to Start up the Business
- Get a Business Place.
This is the first and the most important of all requirements needed to start up the pure water factory. You will need to consider your financial strength to do this. Do you have enough funds to buy a land, build a bungalow or lease a building? If yes then you can go on from here.
First you need to buy a land and build a bungalow or lease a bungalow and remodel it to your taste but preferably you need a building of your own. The price of the land varies based on the location of your business but I will advise that you don’t start out too expensive. Make sure the building is properly secured with a fence to avoid unauthorized access.
- Business Registration /Name Registration and Logo Creation
After securing the business location which will serve as your factory it is to think about registering the Business. Picking put a company name is not as easy as it sounds, there are millions of registered business in Nigeria and trust me when I say u need to take your time to pick out a name and register with the Corporate Affairs Commission to give you the right to run a business then create and trademark your company logo. This also helps to keep your business secured.
- Get a Tax Number
To avoid any unwanted embarrassment from the government you also need to go to a revenue office to get your Tax Identification Number (TIN). Be a patriotic Nigerian and pay your due tax for the benefit of your beloved nation.
- Sink a Borehole
This is the major raw material you need to start this business and you need an unlimited supply of it, so drilling a borehole on the property will help your business. You can get water all year round and at any time of the day. Borehole water is clean and reliable. So call up your engineer and have them start work immediately. The benefit is enormous. The price of doing this is dependent on the location of your business and the quality of the soil.
- Install an Over Head Tank
Despite the fact that you have unlimited supply of water it is still important to have at least an overhead tank for water storage. This storage unit is preferably the plastic storage tank to avoid dealing with rust in later years if you decide to make use of a metal storage unit.
- Install Water Distilling Machine Or Water Purification Unit
It is against regulations to package untreated water so you need to have a system that treats the borehole water and make it pure enough for immediate consumption. There are two (2) types of system
- Reverse osmosis distillation system
- Ultraviolet build system.
The best still remains the reverse osmosis distillation system because it boils that water to vapor and sends it to a condenser that cools it down and concerts it back to water leaving all impurities which have higher boiling point behind. This system is more reliable but expensive.
- NAFDAC Approval
Just like the manufacturing of any other consumable goods there is a regulatory body that supervises and regulates the manufacturing of these. I strongly suggest you get an approval from NAFDAC or else u may end up in jail or at the very least lose your company. Getting the NAFDAC approval number doesn’t take so much time and money.
- Getting an Automatic Sealing Machine
Depending on the kind of sealing machine you get it could improve your capacity to produce to a high degree, some of these automatic sealers can seal as much as 18,000-20,000 seals per 8hours. Having more than one automatic sealing machine will definitely help boosting your production which will in turn satisfy much more clients and puts you at the apex of production.
- Man Power
Just like setting up any other kind of production center or factory the need for man power cannot be over emphasized. At every point of production you need people incharge from security to vehicle, automated machines, packaging, transportation or administrative duties. People must man these several departments and units to ensure the smooth running of the factory. While employing one thing that should be looked out for is hardworking.
- Stable Source of Alternative Power
Considering the state of the nation’s public power supply it is paramount that an alternative power supply is made available to ensure that work goes on uninterrupted during work hours, this is to say that u need a form of stand by generator set that can power all the equipment without challenge Since all the equipment in use are electrically driven. Note also that constant availability of fuel is also important.
- Packaging and Distribution
Before people get an experience of the content of a product their first point of contact is with the packaging. Ensure quality packaging which counts as people move your product from one location to another they should never be worried of the durability of you product and its packaging. Also ensure that there is effective distribution channels.
- Quality Control
There has to be some form of internal quality control unit that checks for the effectiveness of the workers and that ensures that the quality of the product remains the way it should. Most people will drop quality when they get enough customers for one reason or the other, it is important you keep the standard of your products. This builds a high level of trust between you and the customer which will in turn bring in more patronage and Ofcus more money. Always keep a direct link between you and the consumer and distributors, questions like this should be asked often.
- How would you rate your product?
- In what way can we improve?
- Do you have any complaints whatsoever about our products?
- Questions like this keeps your consumers happy and ultimately keeps you in business, creating a place of advantage for you.
Having all these set up and with no security will make u a prey to predatory elements. Secure your factory from all unauthorized persons. Securing your equipment keeps you in business much longer. Safe guard your machineries and equipment from theft and damage.
You must ensure that daily, weekly or monthly maintenance takes place on your machineries to ensure smooth running of the factory, satisfied customers and more money in the bank.
Cost Analysis for pure water / bottled water business in Nigeria
- Factory – dependent on location
- Business registration – type of business name registration
- Borehole drilling – N300,000 – N400,000
- Automatic sealing machine – N350,000 – N450,000
- Distilling machine (osmosis distillation) N5,000,000 – N7,000,000
- Truck for distribution – N1,000,000 -N 2,000,000
- Generator – depends on the make, model, capacity or size
- Machine operator
- Security guard (24/7)
- Administrator /cashier/accountant
- Quality control Officer/maintenance manager.
Reason why the pure water / bottled water business is Lucrative in Nigeria.
- Water is consumed daily by all whether rich or poor, old or young, male or female. Everyone needs water daily and so the more the demand increases there are more chances daily from making good money from that unlimited consumer base.
- The public water supply is rather disappointing and the need for clean and accessible table water is of the increase.
- Pure water is not expensive anyone on the street can afford it.
- The extreme weather condition of this region that is also getting worse because of the ozone layer depletion has increased the intake of water basically increasing the market for pure water manufacturers.
- The initial cost of starting the business is nothing compared to the gain that will be made in later years. The lump sum of starting the business is only spent once and from then on its all smiles to the bank.
Get our pure water / bottled water business plan here. This business plan and feasibility study can be used to apply for bank loan, grant opportunities and entrepreneur business plans like The Government Enterprise and Empowerment Program (GEEP),The Made in Nigeria Business Challenge (MINC), The Tony Elumelu Entrepreneurial Program (TEEP), YouWin programme, etc. This pure water / bottled water business plan includes the following features:
- Executive Summary (Your vision & mission)
- Business description (industry description,requirements,business risk & mitigation, requirement for entering the business)
- Definition of the Market (market segmentation, major competitors, competition advantage)
- Product description (equipment/machine, major raw materials,production process)
- Organization structure (staff salaries, etc)
- Financial management / Analysis
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