Water production business plan
Reviews for the water production business plan ()
The main thing about the business plan for the production of water in the year
Opening water production: entering the market
Even a child knows that drinking water from the tap is harmful to health. That is why interest in such a product as clean drinking water is growing every day. The demand is especially high in large cities. It is there that there is a reason to plan the organization of a water purification and bottling business. Before opening the production of bottled water, it is recommended to analyze all available options for entering this business.
As a rule, businessmen who pay attention to the water business can be roughly divided into two categories: those who risk building a water production and delivery business from scratch, and those who prefer to start operating under wing of an already well-known company. Each of these options has advantages and disadvantages.
Opening up their own production and bottling of water is usually decided by businessmen with significant initial capital investments. Entrepreneurs experiencing a certain shortage of financial resources tend to the second option, which implies cooperation with a company already promoted in the market.
As the analysis of the drinking water market shows, the demand of buyers for this product is constantly growing, however, so far it concerns mainly large cities. The volume of the market for mineral and drinking water in Russia is about 25 billion liters per year. This means that every entrepreneur has a chance to occupy his own niche. The organization of production and sale of bottled water requires considerable start-up investments, and this must be taken into account when choosing a way to enter this business.
The most expensive is the production of a full cycle - from water extraction, purification and delivery to customers. In addition to developing his own well, the entrepreneur will have to invest in the construction of his own enterprise, which will deal with the purification and bottling of water. Moreover, the expected results of the project for the construction of a workshop for bottling drinking water do not always coincide with the real state of affairs. The return on investment for water filling and treatment machines is not that high and the risk of failure is very high.
Much lower costs are required if a businessman decides to act in cooperation with an existing company. In this case, two options are possible: dealership and franchising. By purchasing a franchise, an entrepreneur practically does not risk his own money. By investing in an already promoted business, a businessman gets the right to support, which is expressed in consultations, the opportunity to use the company's effective marketing ideas.
The easiest way to enter the business is dealership, that is, the sale of finished products. The peculiarity of the business is that a company engaged in the wholesale of mineral and drinking water sells goods to its dealers at a large discount. There are also options for buying and installing vending machines for the sale of artesian water. You will learn about all the intricacies of this type of business, including running a water sales company, by carefully reviewing an example of a business plan for the production of drinking water with ready-made calculations. As practice shows, it is a competent business project for water production that helps a businessman to achieve success, regardless of which option he chooses to enter the market.
Bottled water is in high demand. The business of extracting and selling it requires a fairly high initial investment, but the subsequent costs are relatively small. For the enterprise it is necessary to build an artesian well, as well as purchase equipment for the preparation and bottling of water.
Where to start?
The bottling business of drinking water from a well requires preliminary preparation, which includes:
- Investigation of soil aquifers. The depth of occurrence of artesian waters varies within 100-1000 m. The site for the object is selected based on the possible construction costs and logistics costs.
- Drawing up a business plan. At this stage, the market capacity, the preferences of potential buyers are investigated, possible risks, the amount of start-up capital, and so on are calculated.
- Official registration of the enterprise and obtaining permits.
- Purchase and installation of equipment.
- Marketing campaign. The consumer must learn about the very existence of a new product on the market and its advantages over competing offerings.
Water production as a business is directly dependent on local environmental conditions. Preliminary studies begin by examining general geological exploration maps. Areas of terrain with the smallest depth of occurrence of artesian waters are selected. At the same time, the structure of the soil should also ensure the minimum cost of construction work. So, whenever possible, areas with stony and waterlogged soils are excluded. It is necessary to select several sites at once, and then gradually narrow the list depending on:
- location of transport routes. Independent construction or modernization of access roads significantly increases the cost of implementing a business project;
- remoteness from settlements. Delivery of finished products to consumers should take place along the shortest route. Finally, it is difficult for the maintenance personnel themselves to reach a well located far from their residence and passenger transport routes;
- the location of other buildings. The selected plot may be already occupied or it will not be possible to lease it;
- the purpose of the land.
Please note: in accordance with the legal requirement, each site must be used depending on its category and purpose. In this case, you should pay attention to industrial lands.
Next, you need to personally inspect each site in order to stop at the final version. It is possible that during the search process it will be possible to purchase a finished well. After agreement with the owner of the land, it is necessary to conduct exploratory drilling and make a preliminary analysis of the fluid.
Business plan for drinking water production includes analysis:
- promising areas of activity - office maintenance, sales of products through retail chains, work with budgetary institutions, for example, schools or hospitals, etc.;
- local market - the presence of competitors, the shortcomings of their strategy, a potentially monopoly position in certain areas;
- goals, objectives, development strategy - the enterprise should gain a foothold only within a single settlement, the entire region, perhaps there are prospects for entering the international market (in particular, if a source with unique healing properties is being developed);
- the amount of start-up capital - it consists of the costs of registering an enterprise, construction work, the acquisition and installation of equipment, wages, rental payments up to the beginning profit;
- approximate self-recovery periods;
- potential risks - the likelihood of natural disasters, errors in initial planning, unexpected changes in the external environment (prohibition, restriction or change in the rules of certain types of activities, the use of a site for federal projects, etc.);
- exit strategies - if the enterprise fails, it is necessary to sell the existing equipment with minimal losses, and also provide for the possibility of returning borrowed funds.
This business plan was developed to substantiate the financial and economic efficiency and technical feasibility of the investment project "Production of clean drinking water". The company plans to carry out production, bottling, storage and delivery of drinking water.
The main product is drinking water, bottled in polycarbonate bottles with a capacity of 18.9 liters. Drinking water has a mineralization level of 100-500 mg / l and is recommended both for drinking and for preparing food and drinks. Products must comply with GOST R 52109-2021 "Drinking water, packaged in containers. General technical conditions ".
The project provides maximum costs for equipment, personnel and product promotion. In real conditions, each owner optimizes them in his own way. In addition, all calculations were made for an enterprise operating in a city with a population of more than 500 thousand people; for other conditions, appropriate amendments must be made. All equipment, vehicles, computer programs and consumables used in the described processes meet all modern requirements in quality and are recommended for use.
The source is water from artesian wells and springs (possibly tap water), which goes through three stages of purification. The technological process uses high quality consumables. The filling is carried out on the equipment of one of the largest Russian companies - JSC "Novosibirskprodmash". The water is bottled in 19 liters (5 gallon) bottles, which are sold free of charge to retail outlets, customers' homes and offices. For the convenience of using 19-liter bottles, additional special equipment is offered: coolers and pumps of various models. The company plans to carry out production, bottling, storage and delivery of drinking water.
The main product is drinking water, bottled in polycarbonate bottles with a capacity of 18.9 liters. Drinking water has a mineralization level of 100-500 mg / l and is recommended both for drinking and for preparing food and drinks.
Products must comply with GOST R 52109-2021 “Drinking water, packaged in containers. General technical conditions "and GOST R 51074-97" Food products.
Unlike table and mineral waters, which do not have clear criteria for assigning waters to this category (except for the parameter of total mineralization), for drinking bottled waters, regulatory documentation has been developed that clearly regulates the composition and allows to classify bottled water as "Drinking water of the first category ”and“ Drinking water of the highest category ”. Currently, the main requirements for the quality and safety of drinking bottled water are determined by two regulatory documents:
Marketing Strategy for the Development of a Clean Drinking Water Business
Organize an effective system for the production of clean drinking water for further implementation in all regions of the country.
The main products will be:
The extended business plan includes a financial model for bottling water in Excel format.
The business plan was developed taking into account the practice of project appraisal in Russian banks, as well as taking into account the requirements of investors and entrepreneurship support funds in the Russian Federation. It will make it possible to substantiate management decisions on investing in the creation and development of water bottling, predict its financial results and assess risks.
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A person consumes 1.5 - 2 liters of water per day, not counting the water that is used to prepare food. Interest in their own health, caused by pressure from the media, the occurrence of any diseases and other factors, makes people switch to the consumption of purified drinking water. In order to start a business in this direction, you need a good bottled water bottling business plan.
- Formation of your own concept based on the analysis of the market environment.
- Attraction of investment.
- Finding a place for the plant.
- Search for contractors who will be engaged in construction, installation, etc.
- Project approval in the appropriate authorities.
- Attracting personnel.
- Purchase and installation of equipment and technology.
- Development and launch of an advertising campaign.
Feedback on the business plan "Expansion of the dairy plant"
Received a loan of 150 million rubles. at Sberbank to open an additional production line. The document was drawn up quickly, taking into account all the requirements of the bank. As a result, the loan was approved for the full amount.
Feedback on the business plan "Production of drinking water"
We attracted private investments in the amount of 40 million rubles. to start water production. The business plan was drawn up extremely competently: with the justification of each of the items of income and expenses, calculations for investments.
Feedback on the business plan "Production of eggs, pork and beef"
Thank your team for a job well done! The business plan you developed for Rosselkhozbank was eventually adopted. The financial model meets the requirements of the bank and is quite understandable. I liked the overall business plan too ...
g. Novosibirsk JSC "Siberian Compound"
A person needs clean water every day and a good business can be built on this. The business plan for water production describes the main aspects of the formation of the case, the features of the technological process and interaction with the inspection authorities, as well as calculations based on the indicators of current activities and project efficiency.
The production capacity of the facility will be about 250 - 300 thousand bottles per year, which is determined by the capabilities of the equipment purchased for the plant. Both individuals and legal entities will become consumers, sales will be carried out both directly and through retail chains.
Payback - about 3 - 4 years.
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