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Pure water business is becoming quite popular in the streets of Lagos and really a good water production business in Nigeria. If you are reading this, you probably want to learn how to start pure water business in Nigeria.
This is due to the fact that there exist in some parts of Nigeria lack of quality drinking water and a relatively expensive effort to establish a purification system for many homes, offices etc.
So the best (cost-saving) economical option is to buy from vendors (retailers) and this has succeeded in further increasing the popularity of the business.
Making sachet water production business in Nigeria one of the very profitable, but requires a good amount of money before you can start.
Why is the pure water business a very lucrative business?
The clean and affordable production of water is successful because of the following reasons:
1.) There is population
Nigeria is a nation with over 180 million people, yet clean, good and affordable drinking water is evidently a big major challenge and the plan to build your own water system can prove to be quite capital intensive.
Because of this, many people have bought the idea of buying pure sachet water for their homes, offices, hotels etc. to use. This has made clean water affordable to both individuals, small and medium businesses and several corporate organizations.
You see many water machines at banks and corporate companies when you go on visit. When you sit and wait, you get offered these waters as its one major drinking water in most households.
From the look of times, this trend will certainly not die soon as the demand for sustainable water has only increased. Additionally, pure water is a cheap and may be the best options for countless individuals.
2.) The market is not saturated
Truth is there are probably countless pure water businesses around, but there is still room for more as far as the business is concerned. Why? Because the demand for it ever increases. A lot of people in our current century now prefer to use pure water as their primary drinking source because it’s cheaper and easier to buy.
What you need to know about water bottling plant business plan
The smart layout of a pure water business plan should be done in two stages if you really want it to be a successful one. The two stages involved are:
- The planning stage and
- The action stage.
Each of these stages are super important and the success of your business is entirely dependent on it.
The planning stage of how to start pure water business
Do a feasibility study on sachet water production
I know one of the reasons of wanting to give this business a go is that you are probably seeing a need and a potential to make some extra income for yourself and your family. However, this is not enough reason to jump right into it without conducting a standard feasibility study. Not doing this and starting your business will leave out important details that will help the business and this usually leads to disaster.
Why is feasibility study so important to the success of a business?
In simple words, you’re trying to uncover the strength (advantages), weakness (disadvantages), opportunities (new and old), and threat (risks) of the business.
Your feasibility study should seek to:
- Identify your target consumer and their preferred taste of quality water
- The preferred packaging that appeals to the market targets
- The size the consumers need per pure water and so on.
At the end, of your feasibility studies, you should have described the full idea of most of the things people are looking for and are not getting (a space you need to enter by making it an entry point). This gives you the ideas you’ll need to incorporate into your pure water business.
1.) Choose wisely your water source
Not every kind of water is good for usage in a pure water factory and certainly not for human consumption. I know of a pure water factory, where there is a functioning borehole, yet they don’t make use of it.
When I asked them why they aren’t using it. They explained to me that the water is salty and they do not have the capacity to install the equipment that can do the job.
Instead, decided that buying external clean water can give them the end result that they needed.
So there is need to consider a water source before diving into the business of pure water. Ensure that you’re using the right water or the water that can give you the required end result.
If you cannot find a good water source in your preferred location, consider your options. You have to consider the cost and proximity. If they’re not favourable then reconsider your location.
The reason why this is so important is that water is the primary raw material and if that will consistently add more cost, it might have negative effects on your business.
2.) Design your building plan for pure water factory
Begin drafting design of your pure water factory. You can decide to use an existing building or build it from the ground. Either way you choose, you’ll need to design it according to the standard of a water factory.
A standard pure water factory design should include the following:
- Production unit
- Storage room
- Research laboratory
- Booking room
3.) Write down a business plan
After step 3, the next thing to do is to write your business plan. This is all about putting your business on paper. It must contain the cost for capital and recurrent expenditures, the business mission, a brief description, projected expenditures and the expected profit.
With a good business plan, you’ll be able to know all that the business needs to be successful and the time the business will begin to generate profit.
Another crucial point when it comes to the use of a business plan is that it provides you the option to evaluate your achievement when you start taking action and decide on steps you’re required to take next.
Once you’re done with your business plan, you’ll need to move to the next step.
4.) Raise the needed capital
Money answers all things. Now that you know and understand these, you’ll then need to begin to raising the capital required to transit the business from “idea stage” to “working business stage”. There are several ways you can use to raise capital. A few of them are highlighted below:
- Family and friends
- Bank loan
- Crowd funding
- Find investors
- Angel investors
- Personal Savings
- SME’s Loans and Grants
- Private investors
If you have drawn out a business plan, finding investors becomes very easy. All you need to do is to present your well detailed business plan and once they’re satisfied, then they will be interested in investing in the business.
5.) Design your pure water sachet
I have seen and known a pure water company who has one of the best water and yet very few people patronize it. Why? Because their sachet holds no beauty anyone can desire.
When you want to buy, the sachet design will discourage you and make you think it’s the same way with the content.
This happens too many a time. You’ll need to come up with something unique, different and very attractive. In fact, your design goes a long way in convincing people to buy your product; the fancier it is, the more likely it is to attract and convert “first time consumers” to “long term customers”.
Take time to come up with a design that appeals to the eyes and can draw a crowd.
Action stage of how to start pure water business
1.) Build your factory
You’ll need to employ an expert to help you build a great water factory for your business. Putting all the necessary things in place to ensure it’s done according to standards. It might cost more than anticipated but it’s worth every penny. After construction, your factory will stand the test of time.
In fact, one major criterion the licensing agencies look at before giving you license to operate is the building. Your production unit must be big enough that can accommodate all the machines you’ll be using and really hygienic.
2.) Get the right equipment
Equipment is what you’ll need to turn your water into a finished product that sells in the market. The equipment you’ll use will determine the amount of the pure water sachet you can produce in a day.
Some of the equipment you’ll need to use in your pure water plan includes:
- Distillation system
This easy and cost effective method of water purification used in the pure water business. This system works on all types of incoming water and that’s what makes it more effective than the carbon filters and reverse osmosis water filter for homes.
So what makes the distillation system better than others? Well, this form of the system can:
- Remove virtually all contaminants
- The distillation method is not dependent on water pressure, temperature, chlorine, PH to work
- Purification of water is at 99.9% even when it contains bacteria or parasite in it.
The UV sterilizer and Ozone distillation system are some of the best machines you can use.
- Remove osmosis distillation system
One of the widely used and easiest system to install in the pure water industry in Nigeria.
It’s end result is a high level of purity and also a perfect system to use in a pure water factory.
- Ultraviolet bulb
This is another popular system used in Nigeria. It purifies water but not at a level that is quite different than the ones discussed above can do.
- Get an automatic sealing machine
After purification, you’ll want the result to make in a way it can be easily distributed.
This is where the sealing machine will come into play. The machine will seal the water in the water leather according to specification inputted.
For instance, if you want the water to come out in a 50cl size, you set that and once the water is at the required level, the machine will automatically seal it and push it out where you can package it.
Sealing machines have a limited number it can seal every day, you’ll have to check to know the capacity before buying one.
3.) Install the equipment
By now you should have secured your pure water location, the building in place and purchased every of the required equipment. Now it’s high time to begin the process of installing the equipment. You may not be able to do it by yourself.
But the good thing part is that in most of the places where you purchase the equipment, the company will send in a representative that’ll help in the installation of the equipment.
To be a safer side, I recommend you ask the company to know beforehand if they offer this service or not. The great news is this: if they don’t offer such service, they’ll always connect you with someone who does.
4.) Get the necessary license
Before going into full production, you’ll need to get the required license and permit.
The first type of license you’ll need to start is with NAFDAC where they’ll come to your factory to inspect the premises and ensure that your pure water business is in line with the best practices and policy.
Once everything is okay, they’ll give you the required license. Next up, you’ll need to proceed to the state to ensure that you have obtained their own license and permit.
After this, you’re to register to get your own trademark. This is what many tend to overlook because they think it’s not important. But if you want to protect your brand, you’ll need it.
Once you have your approval and all the licenses, you’ll need to move to the next step.
5.) Hire the right set of personnel
For your business to move, you’ll need to hire the right personnel that’ll assist you with the production and distribution.
The number will ultimately depend on your production and distribution capacity. However, even when you have a huge capacity, you may need to hire a few people to start with and as the business grows, you can hire more people.
So what kind of experts will you hire when starting the business? Here are the people you’ll need to start your pure water business with:
- Operators: you’ll need at least two people who’ll handle the machines during production
- Sales manager: This person will ensure that your product gets to the doorsteps of your customers
- Car/bus/truck driver: the person that will drive the truck/car/bus during the distribution of the product.
- Two loaders: those that’ll be responsible for loading and offloading the product
- An account: To help you with tracking your sales and keeping a good financial record is good. An accountant will help you with that.
As the business grows, you can then proceed to create more rooms for distributors, more drivers, operators etc.
5.) Market your pure water business
Without marketing, no one will know your pure water is in the market. For the product to get quick recognition, try giving food vendors and grocery stores some free samples (maybe a bag or two).
This way, people will get a feel of the product and begin to ask for more.
For example, A woman who recently began her water production business decided to bring it to the church and gave each member one bag for free. She repeated the process three times and in less than a month, she got more returning customers than she earlier planned.
Yours might not be the church it could be during at your work place, an occasion, among friends and family etc.
Other methods you can use to market your pure water business in Nigeria include:
- Word of mouth: you can tell people about the new product in town, they’ll definitely look for it.
- Buy GSM Database and Send the numbers an SMS telling them about your products and where to find it.
- Produce and distribute colourful flyers to ensure you spread the message.
- Use social media to reach out to more audience and make more sales
- Offer discounts occasionally
6.) Begin Your pure water distribution
At this stage, you must have gotten some clients. Now what you must begin to do is to start distributing your product in locations where people can access it.
Since this is a fresh business, ensure that all that your product does not run out of stock. Scenarios caused by this are among the many things that make customers shy away from your product and a competitor can easily take advantage of it.
Challenges of pure water business in Nigeria
1.) It is Capital intensive
Even though a pure water business is a lucrative business in Nigeria, it is capital intensive. This single problem discourages a lot of people from trying out this business.
2.) Competition can be fierce
Competition can be hot as many companies are created every day. Beating such competition will require hard work, consistency, and advertising, rewarding loyal customers, innovation, and marketing.
More tips on how to start pure water business in Nigeria
1.) Make your taste unique
With many pure water businesses, trying to be different is all that it takes to make a difference. One way of doing this is carving out a unique taste that is quite different from any other pure water in the market. This is one reason Eva water became unique in Nigeria and was welcomed into the market.
Having that uniqueness will put your water in high demand by people. However, before releasing it, you’ll need to conduct a survey to see what your potential customers will think of it.
2.) Make the sachet attractive
A beautiful sachet is your number one selling point. No matter how great your product is, poor packaging will convince your potential customers otherwise (you really don’t want this now, do you?).
Your packaging should be simple and attractive. Include things that’ll ensure that it sends a straight message to your customers.
Great packaging attracts and will definatelyl sell your product the more.\
3.) Ensure the name is easy, short and can be remembered
One basic thing about business is the name. When people remember it, they tend to go for it if that’s the product they’re going for.
Giving your business a name that can be easily remembered will go a long way in maki ng the product popular( as people can easily tell others about it without thinking for eternity when trying to recollect the name).
Anyone who’s going to buy pure water will always remember the name of your own first.
4.) Be Open To feedbacks always
Feedbacks or consumers reviews are important in determining the success of any business. You may be working on assumption thinking all is well with your product or service, but it’s only through the customer feedback you get to truly know if all is well or not..
You can receive feedbacks from time to time through mails, social media or phone calls to get to know the loopholes you’ll need to cover before it becomes a big crack.
As good, clean, cheap and quality drinking water becomes increasingly difficult to get, most people will continue to demand the use of pure water.
Those that will begin the business of pure water are the ones that’ll benefit from the increasing demand for pure drinking water.
However, with so much competition, getting the right equipment, personals, and effective marketing is what will give you the competitive edge.
Hope you enjoyed our guide on how to start pure water business in Nigeria. Feel free to comment, like and share.