Wednesday, October 26, 2022

How to Start a Packaged Drinking Water Business

How to Start a Packaged Drinking Water Business

You might not realize it, but packaged drinking water is a $21 billion industry. And that’s just the domestic market. Overseas, it’s worth even more: The global packaged water market is estimated to be worth $50 billion by 2020. A drinking water business has a lot of advantages. It doesn’t take much capital to get started; you don’t need any special licenses or certifications; and because regulated standards are so stringent, there is very little competition in most markets. In this blog post, we’ll walk you through everything you need to know to start your own profitable packaged drinking water business.

What does it take to start a packaged drinking water business?

The short answer to this question is that you will need some capital, expertise (or the ability to quickly acquire it), and clean water. Let’s break each of these down: - Capital requirements - You will need to purchase the necessary equipment to bottle and distribute the water. Depending on the type of equipment you select and where you purchase it, it can cost anywhere from a few thousand dollars to well over $100,000. - Expertise or ability to quickly acquire it - You will need to have someone on your team that understands all of the regulations in your state or region. You will also need someone who can help you secure and maintain all of the necessary health department permits and certifications. - Clean water - You will need to source an adequate supply of pristine water. Depending on your location and the type of water you source (ground water, surface water, etc.), this could be a simple process or an extremely expensive one.

Which type of bottled water business is right for you?

There are two main ways you can go about starting a bottled water business: You can sell purified water or spring water. - Purified water - This is commonly referred to as “drinking water” in grocery stores and supermarkets. In most cases, purified water is municipal water that has been filtered and treated to exceed regulatory standards. The main advantage of this bottled water product is that it has a long shelf life and is readily available. The main disadvantage is that it’s not particularly high-value. - Spring water - This is water that comes from an underground source that flows naturally to the surface. It’s typically more expensive than purified water and has a shorter shelf life, but it has perceived health benefits that make it a more valuable product.

Selecting your location

Your state and local market conditions can have a significant impact on your bottled water business’s success. Some factors to consider include: The population density of your area, The volume of bottled water sales in your area, The number of competitors in your area, and The cost of your water source(s). - Population density - Your targeted customer base will likely determine your ideal population density. If your target customers are health-conscious, high-income individuals, you probably want to locate your business in a relatively dense area. On the other hand, if you want to target a lower-income demographic, you may want to locate your business in an area with lower population density. - Bottled water sales in your area - Bottled water sales can indicate how much demand there is for bottled water in your area. If sales are particularly high, you may want to consider another business opportunity. - Number of competitors in your area - While it may seem like there is plenty of room for everyone, bottled water is a fiercely competitive industry. When you are choosing a location for your business, you should try to assess the bottled water market for your specific location. - Cost of your water source(s) - Depending on how you source your water, it can be expensive. If you are looking to set up a ground water operation, it can cost anywhere from $10,000 to $40,000 per well. If you are looking at a surface water operation, it can cost up to $100,000 per treatment plant.

Decide on your product(s)

You will have to decide on what types of water you want to sell. You can sell one type of water or multiple types. Some bottled water products are: spring water, purified water, mineral water, sparkling water, still water, sparkling flavored water, flavored sparkling water, carbonated mineral water, and sparkling mineral water. You can also choose to sell a blend of two or more types of water. It will be up to you to decide how much of each type of water to blend together to make your bottled water product. Carbonated water is one type of bottled water that is often blended.

Build your team and determine your operational costs

You will need to hire a team that can help run your business. You may choose to do some of the work yourself, but it’s typically wiser to focus on sales and marketing. Here are some of the people you will need to employ: General manager - This person will be in charge of overseeing all aspects of the business. They will make sure your employees are trained, that the business is profitable, and that your business is following all applicable laws and regulations. Sales manager - This person will be in charge of your sales team. They will be responsible for managing your sales reps and making sure that they are meeting their sales goals. Marketing manager - This person will be in charge of your marketing team. They will be responsible for hiring your social media and marketing employees and making sure that they are meeting their marketing goals. Operational costs are the ongoing expenses of running your bottled water business. This can include things like office space, employee salaries and benefits, materials, utilities, insurance, sales and marketing expenses, etc.

Final Words: Starting a business is never easy

If you have always dreamed of owning your own business, now is the best time to start. In this day and age, it has never been easier to get your own business off the ground. You do not need to have a lot of money to start a business, and you do not even need a lot of experience. All you need is a good idea and the right amount of perseverance.

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