You are in the right place if you seek for a business idea. Pure water business is one of the most profitable business considering the high demand of clean water.
According to reports, the production of sachet water in Nigeria started in the late 90s and today the advancement in scientific technology has made sachet water production one of the fastest growing industries in the country.
So many individuals and corporate bodies in Nigeria now engage in pure water packaging in polythene sachets of about 50-60 cl. which they sell to the public.
Water is one of the highest consumable in demand world over and its importance is beyond human imagination.
As long as you can find humans there, water in demand. So, if you can meet with the demands of providing clean and affordable drinking water, this business idea is for you.
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.
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.
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.
Moving forward, I will take you on the steps to successfully set up and run bottled water or pure water business in Nigeria.
Steps On How to start Pure Water Business:
1. Business plan
There is no need for elaborate feasibility study and report since the demand/market is available and on the increase.
What is required is a business plan to help establish from the onset the financing of the project – the amount of money needed.
Business plan becomes imperative at this stage because it determines the level of funding required and where it is coming from.
The level of pure water business can range from using a two-bedroom flat to blocks of flats, depending on which category you are investing in.
2. Business Registration
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.
Every business also must register with the relevant tax authority (Federal Inland Revenue or the State Internal Revenue).
Alternatively, you can obtain a license from another well-established pure water company in a different part of the country if NAFDAC registration proves difficult, prolonged or you want to operate in relatively low scale and do not want to go through NAFDAC protocol.
3. A befitting place for business (factory site)
You must either lease a suitable accommodation, with access to the market or put up a suitable accommodation.
There might be trade-off between access to the market and cost of acquisition. The bottom line is profitability.
However, other facilities must be in place, such as security of the factory, power, access road, etc.
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 as stated earlier.
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.
READ: HOW TO START A POS BUSINESS IN NIGERIA
4. WATER PURIFICATION
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.
You may install the full-scale distillation system or the ultra violet sterilization bulbs process depending on the start-up capacity of the enterprise.
The cost of acquisition of distillation equipment may run into millions of naira.
The actual cost cannot be estimated with certainty and must be researched upon as it is going to be part of the expenditure included in the business plan.
5. Factory Equipment and Materials
You will also need to buy some necessary equipment when starting a pure water business in Nigeria.
Ensure to buy what you can afford and rent the rest till you can buy them. Work within your budget.
Here are the things you will need to kick start your journey as a Pure water business owner:
- Printed nylon sachets – N470/kg
- Packaging bags – N3200/Bundle
- Water micron filters – N250/one
- Micron filter casing – N3500/one
- Treatment materials (Activated carbon, Hydrolytes, Brim, Calcite, Sand, Gravel) – N64,000
- Soap for monthly tank cleaning maintenance – N450
- Diesel – N190/litre
- Fuel – N140/litre
- Drums, buckets and plastic baskets – N400/one
- Overalls, crocs, disposable hand gloves and hair nets – N7200
- Borehole system – N100,000
- Overhead tanks (2) – N40,000
- Water filtration + Treatment charging – N250,000
- 20 KVA generator – N700,000 to N1,200,000
- Pumps, valves and pipes – N150,000
- UV sterilizing unit (55 Watts) – N23,000
- Reverse osmosis unit (optional, 2000L) – N2,500,000
- Ozone generator – N450,000
- Automatic filling/sealing machine – N650,000
- Delivery truck (most popular is the Mitsubishi Canter) – N1,200,000
6. Recruitment
Recruit staff, ranging from operators of the machines, packagers, a cleaner, driver, one sales staff, one security personnel and a supervisor. This will ensure the specific positions are properly manned.
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.
7. Marketing Strategy
To stand tall in the midst of the existing competitive market, a good marketing strategy must be put in place in the pure water business.
Also, your business brand, quality of services, and customer satisfaction goal must be unique.
This is where we need advance mode of market projection irrespective of the scale of the business. Make contacts immediately with retailers who are going to sell the water.
Always establish their credit worthiness before granting credit, otherwise they can send you out of the business.
CONCLUSION
Starting a pure water business in Nigeria is very lucrative and will require passion, hard-work and keen level of preparation anchored on consistency.
This is only a guide, the size of the organization determines the scale of operations, the investment in cash, human capital and machines.
Also, make customer service and satisfaction your utmost priority.
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. I believe with this detailed but succinct excerpt, the only step to take is to trade your knowledge on pragmatic moves.
