In recent times, due to the unavailability of clean drinkable water in some areas in Nigeria, venturing into bottled water or pure water business make business sense.
Water is one of the highest consumable in demand world over and its importance is beyond human imagination.
Pure water or bottled water is in high demand in homes, schools, institutions, offices, churches, hospitals, public gatherings, etc. As long as you can find humans there, water is needed. So, if you can meet with the demands of providing clean and affordable drinking water, this business idea is for you.
This is a business area that is profitable and sells everywhere in Nigeria. Therefore, if you are looking to venture into bottled water or pure water business, this article will guide you.
Pure Water Business In Nigeria
Pure water business has now become one of the common areas of investment because everyone drinks water. Aside from quenching thirst, it is affordable. Also, water is essential to life and important to the body. It moisturizes the tissue and other essential body systems such as blood, bones, brain, spinal cord, joints e.t.c.
In addition, water aids human digestion and helps in the metabolic reactions of food breakdown, flushes body toxins, removes waste, and regulate body temperature. Basically, water is life.
Bottled water or pure water business is portably packaging water in a bottle or sachet for human consumption. It is done through the process of water purification and portable packaging. The overall process includes different steps like setting up a factory and investing in purification equipment.
If you are an investor still confused about where to invest your money, you can never go wrong with bottled water or pure water business if you do your due diligence.
Moving forward, I will take you on the steps to successfully set up and run bottled water or pure water business in Nigeria.
Steps To Running A Pure Water Business In Nigeria
There are different processes involved in starting any business in Nigeria.
Business Plan And Feasibility Study
The first thing you do when starting a business is to have a clear plan and create a road map on how best to go. This is what a business plan does for you. A business plan is an imperative document to have at the initial stage of your business.
Preparing a business plan will help you gather information, gain insights, and push you to conduct a feasibility study. The results of your research will form the foundation of your business and help you make informed decisions.
Also, a business plan states the aims and objectives of the business and strategies of how they can be achieved. It involves doing market research and analysis, cost analysis, pricing structure, risk analysis, and future forecast. By doing all of these, it will be easy to source for funding from investors. As your business grows, you can tweak your plan because the business plan is a breathing document that can be modified.
Next is registering your business with the Corporate Affairs Commission (CAC). Here, you can do a business name registration, limited liability company, or any other type of registration that suits your business structure. Aside, you will need to register with other government regulators like NAFDAC and relevant authorities.
However, I understand that creating a business plan and doing a business registration in Nigeria could be a herculean task, which is why companies like ReDahlia can be your plug. ReDahlia will help you with your business registration and business structuring.
In running any business, capital is important. The bottled or pure water business is capital intensive depending on the scale you want to operate.
There are different cost elements you have to consider; the cost of land, erecting of building, borehole drilling, vans, distilling machine, tanks and other expensive equipment that are needed for the operation of the business.
If you want to run this business as a sole proprietor, you must have enough savings or assets you can convert to cash. Other ways to raise money will be to seek out soft loans from family and friends. Also, you can source for partners or investors to work with. You can as well take out bank loans or apply for available grants.
Build A Factory
To build a factory, you need land, and depending on your capital, you can lease or build your own factory. The building can be big or small but ensure to follow the standard factory layout for overall ease of production.
The layout includes a general office, water production room, storage material room, toilet, changing/cloakroom, and laboratory. Also, ensure that the production area is free from water and air pollution. You have to make sure that there’s the availability of constant power supply at the factory. The factory should be situated in a secure area with a good road network.
Also, in building a factory, you need to drill a borehole or partner with water corporation agencies. In the pure water business, water is a raw material for production and must be readily available.
Next, install an overhead tank and reservoir for back up. Then, set up plans for periodical water treatment. Also, you can also carry out a subsurface water analysis before establishing your factory as this can save costs during water treatment processes.
Water Purification systems
This is the process of removing undesirable chemicals, biological contaminants, suspended solids and gases from water. It is simply done to make water fit for drinking.
In bottled or pure water business, the water purification systems used are; full-scale distillation systems, ultraviolet sterilization or reverse osmosis depending on the startup capacity of the enterprise. These systems will be explained in the following paragraphs.
The distillation system is the most effective but expensive way of purification in water production. It involves boiling the water to produce vapour. It is a process of separating components or substances from a liquid mixture by using selective boiling and condensation.
Generally, it removes waterborne biological containments such as bacteria, viruses, organic and inorganic chemicals, heavy metals, volatile gasses, cysts e.t.c.
Reverse Osmosis (RO)
This is another water purification process which uses a partially permeable membrane to remove ions, unwanted molecules and larger particles from drinking water.
It removes bacteria from water and can be used for purification of drinking and cooking water. Also, it’s used in industrial processes and the production of potable water.
Ultraviolet Water Purification
UV Light purification is a purely physical, chemical-free type of water purification. It is a safe and effective disinfection method used in residential and industrial water systems. Although not totally enough for drinking water purification, it is often combined with reverse osmosis systems to provide complete purification.
This is one of the most important things to also consider in running bottled water or pure water factory. A truck is for the distribution of the processed and packaged water to retailers and end-users.
In buying a truck, you have to factor durability and fuel consumption rate. Be sure to buy a good truck that won’t break down in the middle of the road all the time. You don’t want to be constantly repairing your truck as it will impact your business.
For instance, you can buy a fairly used or a new one depending on your budget. Just ensure you won’t have to always visit the mechanic all the time.
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Some other equipment you need to run your pure water business includes:
- Automatic Sealing Machine; This is used to pack and seal all kinds of liquid without gases. It can be used to seal water, wine, vinegar, e.t.c. You can start with one, two, or three depending on your production capacity.
- Nylons and bottles; This must be printed with your company logos
- Packaging nylons
- Water micro filters and cartridges
- Drums, buckets and plastic baskets
- Overalls, disposable hand gloves, and hairnet
- Water storage tanks
- Bottling line
The effectiveness of this business is somewhat dependent on human resources. One man cannot singlehandedly run bottled water or pure water business. The scale of operation will determine the number of employees you need.
So, to run a pure water business, you need to recruit competent personnel like; manager/supervisor, customer service attendant, driver, accountant, machine operators, packaging officers, cleaner, security, and sales personnel.
The operation manager ensures the smooth running of the facility and coordinates the other personnel. He/she designs the growth and profit strategy for the sustainability of the business.
The machine operator operates the production machine and other equipment involved in the production process.
Drivers are responsible for transporting the packaged water to wholesale and retail customers.
Packaging officers pack and bag already sealed water. They are responsible for arranging the water into sections for easier distribution.
The customer service attendant serves as the link between the consumers and the company. They interact with the customers and inform them of the various services the company offers.
The sales personnel distribute and sell packaged water on behalf of the company. They look out for new customers and ensures the company makes as much profit as possible.
Cleaners/Security are semi-skilled employees who are responsible for the cleanliness and safety of the company facilities.
To beat the already existing competition, a good marketing strategy is essential to thrive in the pure water business. Also, your business brand, quality of services, and customer satisfaction goal must be unique.
So, create a website and social media pages where you showcase consumer testimonials and your delivery services. You can also invest in radio and television advertisements as long as you can afford the cost. Ensure to have your logo, physical business location, name, and other identification numbers printed on the sachet, bottles, and van.
Also, you can engage in periodical market research to know the trends and gaps in the market. Have a customer retention plan and understand that in bottled water or pure water business, anybody can be your customer – everyone drinks water.
Also, reward loyal customers; offer discounts that won’t hurt your business to customers and distributors for large scale purchases.
Get NAFDAC Approval
This is the final step before full operations and production begins. The National Agency for Food and Drug Administration And Control (NAFDAC) ensure quality check in packaged water production in Nigeria. It controls and regulate the manufacturing, importation, and distribution of food, drugs, cosmetics, medical devices, chemicals, detergents, medical services and consumable.
Due to the sensitivity of bottled water and pure water business to human health, the NAFDAC also regulates their activity and ensures water production companies follow the quality control guidelines. Some of the requirement involves the building design, facilities, distribution, standard operating procedure (SOP) which must be strictly adhered to.
Getting the NAFDAC approval is a gradual process and can take more time if the process is not properly done. Also, you can visit www.nafac.gov.org and register for the certificate and inspection.
The competition in bottled water and pure water business is stiff. Therefore, you must be on top of your game at all times to succeed. You must adhere and follow regulations, and observe routine maintenance of the factory equipment.
Also, make customer service and satisfaction your most important practice. Like every other business idea we discuss here, success is not guaranteed by just opening the business. You have to work hard and be determined.
Do you currently run bottled water or pure water business? Are you planning to venture into the bottled water or pure water business? We will like to hear your thoughts in the comments.
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