Start-up Funding | |
Start-up Expenses to Fund | $22,350 |
Start-up Assets to Fund | $444,223 |
Total Funding Required | $466,573 |
Assets | |
Non-cash Assets from Start-up | $320,000 |
Cash Requirements from Start-up | $124,223 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $124,223 |
Total Assets | $444,223 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $21,354 |
Long-term Liabilities | $180,000 |
Accounts Payable (Outstanding Bills) | $61,409 |
Other Current Liabilities (interest-free) | $16,810 |
Total Liabilities | $279,573 |
Capital | |
Planned Investment | |
Jim Hunt | $56,000 |
Mike Pacek | $36,000 |
New Investors | $75,000 |
Other | $20,000 |
Additional Investment Requirement | $0 |
Total Planned Investment | $187,000 |
Loss at Start-up (Start-up Expenses) | ($22,350) |
Total Capital | $164,650 |
Total Capital and Liabilities | $444,223 |
Total Funding | $466,573 |
The facilities are located in a rented building on an industrial estate in Newark, California.
A description of the technology involved in the production can be found in section 3.5 (Technology). The following is a description of the production layout.
The company is in the water purification business. H20 Industries is engaged in a specific branch of this business called “Service deionization.” Within this branch, the company plans to emphasize a further service specialization known as “segregated regeneration,” as opposed to “bulk regeneration.” This concept is explained in the following sections.
The service products offered by H20 Industries are segregated as well as bulk regeneration of portable H20 Industries exchange tanks. The service is offered in three tank sizes of 3.6, 2.5, and 1.4 cubic feet (cu ft). In these sizes, the company will offer:
The application of portable deionized water is broad. Practically all industries using water in processing are potential accounts. Size of company is rarely a determining factor. There are applications in electronics and high pressure boilers where flow rates of several hundred gallons per minute are provided by portable exchange systems. The main unique benefits are:
Providing the service to a customer is simple, usually requiring only minimal equipment. H20 Industries is available from a large competitor, US Filter and a few small competitors, such as Fluid Solutions of Lowell, MA. However, none of the competition can provide segregated regeneration (See Competitive Analysis below).
In the Northern California area, outside of a small company in Lowell which has to farm out its regeneration business to a “DI” company in Nevada, Simply Clean in Oregon, and a couple of independent Culligan agents, there is only the very large, fully-integrated US Filter (owner of Culligan) to compete with. This company, by virtue of its size and involvement in all fields of water treatment, is not suited to satisfying small users of DI, nor are they able to respond to niche needs. For example, US Filter cannot handle segregated resin. All resin treated by US Filter is regenerated on a bulk basis, which means that various customers’ depleted resin tanks are combined. This is not a problem for many users of DI, but the dialysis department of a hospital might well object to their resin being co-mingled with resin used in the metal plating industry. H20 Industries plans to specialize in portable segregated resin service. US Filter can try to service customers with a desire for segregated DI by promising to always supply tanks with new resin, however, there are technical problems with this.
US Filter’s prices for cation and anion regeneration are $31.25/cu ft and mixed bed $43.05/cu ft. H20 Industries’s prices for the same bulk regeneration are $32 and $43, respectively. The primary market thrust of H20 Industries’s sales will be the segregated regeneration which US Filter does not offer. This product sells at a premium ($57/cu ft and $63/cu ft, respectively). Some small players in the market offer regenerated resin (not segregated) in a price range of $63 to $80 per cu ft (mixed bed).
Sales literature will be written and printed. A provision for this has been made in the projected sales and marketing expenses.
The service provided by H20 Industries is the regeneration of ion exchange portable tanks. The tanks themselves are supplied to customers on either a monthly rental basis or offered for sale. These tanks, and any other hardware, are readily available from a number of suppliers. By virtue of the owners’ long involvement in the industry, they are fully knowledgeable of existing sources for all hardware, including resin, as well as the supply of the two major chemicals used in the process of regeneration. The only other variable cost of production is the salt used in the brine bath, this is also readily available from a number of suppliers.
Ion exchange is a major means of purifying water for industrial purposes. The degree of purity depends on the source of the water and it’s use. Companies, ranging from car washes to the pharmaceutical and semiconductor industries all need various amounts and degrees of purified water. Ion exchange is a chemical process by which ions, or ionic substances that are considered “undesirable” in water, are reduced or removed from water by use of ion exchangers or resins. Most ground water contains unwanted dissolved substances, such as calcium and magnesium, whose molecular structure contain charged ion particles.
The most common impurities with ions of a positive charge are: sodium, calcium, magnesium, potassium, iron, and manganese. These are called cations. The unwanted dissolved substances having negative ion charges, known as anions, are: bicarbonate, chloride, carbonate, sulfate, nitrate, and bisilicate. When a substance separates into ions, each ion is now able to combine with another ion with opposite charge, even if that ion is from a totally different type of molecule. Substances only separate into ions when immersed in water molecules. For example, a molecule of hydrochloric acid is made up of a hydrogen atom and a chloride atom. Hydrochloric acid (HCL), when immersed in water, will split apart into one positively charged hydrogen cation (H+) and one negatively charged chloride anion (CL-). If sodium hydroxide (NaOH) were added to this solution, the NaOH would split into Na+ and OH-, which would combine with the opposite charges of the hydrochloric acid ions to form sodium chloride, better known as “table salt” (Na+CL-) and leftover hydrogen and hydroxide atoms (H+OH-). The field of deionization, known as DI for short, utilizes this natural phenomenon by designing a cation exchange resin which will substitute hydrogen atoms (H+) for virtually all of the other cations, and designing an anion exchange resin which will substitute hydroxyl ions (OH-) for virtually all of the other anions. By means of this process we end up with only H+ and OH- which is equivalent to H2O (water). By forming this demineralized water, we create water which is no longer a conductor. We can measure the purity using an ohm meter. Ohms measure resistance. The higher the ohm count, the lower the conductivity. H20 Industries is routinely formed to 18 mega ohms per centimeter, which is very close to zero conductivity (18.23 at 25 degrees Centigrade). Without giving lengthy chemical explanations, what happens in the process is as follows:
The regeneration process can take place at the location where the water is being purified, however, most users of H20 Industries do not install the expensive equipment to do this but simply arrange for a service provider, such as H20 Industries, to replace the tanks and perform the regeneration process off-site.
As high-tech industries, such as electronics, communications, and pharmaceuticals, continue to grow, there will almost certainly be increasing use of deionization technology and deionized water. As instrumentation and analysis procedures improve, controlling and monitoring the deionization process will be easier and more efficient, and this will, undoubtedly, help create new uses for deionization that have not yet appeared, as well as make H20 Industries more affordable to sectors now using other methods of purification. As more people in the water treatment industry become familiar with the DI process, the industry for H20 Industries and equipment will benefit.
In addition to bulk and segregated portable H20 Industries, the company plans to expand sales of filters and DI cartridges. These sales have been disregarded in this business plan, but they could become more significant in the future. These products lend themselves to mail order type sales, as they are small and lightweight. Cartridges are disposable items. H20 Industries also has plans to develop a reusable shipping container for its smallest (8″ x 18″) DI exchange tank so that this can also be shipped via UPS. This product will be marketed on a website, as well as through conventional direct mail and yellow page advertising.
In the future, a logical off-shoot of the DI business is reverse osmosis (R/O) used in conjunction with DI exchange tanks. The inclusion of R/O in front of the DI tanks will extend the capacity of an exchange tank by 1000%. This addition to the product line could become a substantial element of total company sales.
Reverse osmosis and electric reversing deionization are beginning to compete with exchange tank DI technology. H20 Industries plans to offer service contracts to maintain this equipment at the customer’s location. This equipment may to either sold or leased.
The total market in Northern California for H20 Industries is between 670,000 and 925,000 cu ft of resin annually. H20 Industries’s total productive capacity will be only 36,400 cubic feet, or 3.9-5.4%. Since H20 Industries will have the unique capability of performing segregated regeneration, which is of special interest to the medical industry (dialysis, labs and pharmaceutical), the company will emphasize sales efforts in this segment for high purity H20 Industries. This segment is estimated at 167,000 cu ft annually. Next in terms of marketing emphasis will be the electronic (223,000 cu ft) and machine tool industries.
The market for H20 Industries encompasses many industries, and within them there is a wide range of purity needs. At the low end, a car wash might use H20 Industries in the final rinse only. Their need for purity might be only .5 Megohms (Ohms measure resistance). Water is only a good conductor because of the quantity of dissolved solids in the water. As the ion exchange process lowers the level of total dissolved solids (TDS) the resistance, measured in ohms, increases.
A purity level of .5 Megohms is pure enough for a car wash final rinse cycle, but not even close to pure enough for a electronics wafer manufacturer. They would need 18 Megohms, at which point the water would be pure and incapable of acting as a conductor. Generally speaking, those sectors of the market that need the highest levels of purity are the customers for H20 Industries’s main niche product of segregated DI exchange service. This means that the resin coming back from the customer is never mixed with any other company’s resin. This is a very strong sales feature when dealing with dialysis units of a hospital, labs and pharmaceutical manufacturers, and electronics makers. These customers are happy to pay a premium over the price charged for bulk DI regeneration service because they do not want their resin co-mingled with resin coming from a metal plater or a car wash.
Quantifying the market for segregated portable H20 Industries is not easy. Unlike the market for used cars, metal furniture, or nearly every product one can think of, there are no readily-available statistics on the market for portable DI exchange. There is overwhelming agreement that US Filter has the commanding market share of DI exchange business, opinions range from 85 to 95% majority.
According to the publisher of ULTRAPURE WATER®, (May-June 1999 volume 16, number 5) US Filter had sales of $1 billion in 1990, and has grown to $5 billion in 1999. Portable DI exchange is only a small portion of their business. Sales in Northern California of only DI portable exchange is estimated at $25 million. This has been confirmed from several sources. Firstly, one of the owners of H20 Industries is a former employee of US Filter. In 1996, their DI exchange business reached $12 million. This was only 65% of the market. Then the company acquired Culligan, adding another $8 million in portable DI exchange business in Northern California, and bringing the total to $20 million. It is assumed that sales have grown to $25 million over the past several years.
The relationship between input water and DI exchange capacity is charted. Assuming in-coming water quality of 200 parts per million of TDS in the far left column, a 3.6 cu. ft tank of regenerated resin can handle 10,800 gallons. This means that an average user with a flow rate of 10 gallons per minute would use up a 3.6 cu ft tank in 2.57 days, or 1.4 cu ft per day. Assuming the salesman was accurate in his statement of 2,000 customers, this would work out to 840,000 cu ft of regenerated portable DI exchange business per year. This figure is somewhat greater than the figure of 610,000, however, the subject of this business plan, H20 Industries, will have a productive capacity of only 140 cu ft per day, which represents between 4.5% and 6.3% of the total market in Northern California.
Taking the midpoint estimate for the total Northern California market of 780,000 cu ft annually, these high purity users would represent a market 558,000 cu ft
Hospital Dialysis Units and Stand alone Clinics:
California lists 16 stand-alone dialysis clinics, many of whom have multiple locations with varying numbers of stations. Every dialysis clinic, as least in Michigan according to BESCO, use H20 Industries for polishing, after initially running the water through a reverse osmosis system. Hospitals also have dialysis units. In addition, there is blood analysis work which is normally done using “wet” analysis equipment that requires H20 Industries. Assume this sector represents only 10% of the high purity market, or 55,000 cu ft annually.
Labs and pharmaceutical Manufacturers:
A list of labs and pharmaceutical makers in Northern California contains 330 names. A sample calling indicated that some use no pure water, others use such small qualities (10 gals/months) that they buy the water from suppliers like Hubbard-Hall, already made up. Others use so much H20 Industries that they have their own built-in DI system. The rest who have flow rate needs of between one and 20 gallons per minute are in the range most economically serviced by portable DI exchange. Assume this to represent 20% of the 558,000, or 112,000 cu ft.
Electronic Manufacturers:
Semiconductor manufacturers and other makers of electronic components need pure water to flush with. As microprocessors use wafers of ever-decreasing size, the requirements for pure water to rinse with increase, as do various other additional micro filtering. A list of electronics manufacturers in Northern California names 189 makers. Assume this sector represents 40% of 558,000, or 223,000 cu ft.
Machine Tools and Parts:
This is one of the fasting growing sectors as more and more manufacturers conform to the ISO 9000 standard, which requires delivered parts to be clean (defined as rinsed thoroughly with water of one Megohm purity or better). This category includes a need for H20 Industries in machines consuming cutting oil, any machine with cooling systems, and other uses. Assume this sector represents 30% of 558,000, or 167,000 cu ft.
This sector of the market will represent the market for DI exchange water lower than one Megohm in purity. Assume that the following industries take up the remaining 30% of the total market. Some industries that would be included in this “other” category would be:
The chart and table below summarize the total market potential for the DI exchange services in Northern California.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Dialysis Units | 2% | 55,000 | 56,100 | 57,222 | 58,366 | 59,533 | 2.00% |
Labs and Pharmaceuticals | 5% | 112,000 | 117,600 | 123,480 | 129,654 | 136,137 | 5.00% |
Electronics Manufacturers | 0% | 223,000 | 223,000 | 223,000 | 223,000 | 223,000 | 0.00% |
Machine Tool and Parts | 7% | 167,000 | 178,690 | 191,198 | 204,582 | 218,903 | 7.00% |
Other | 10% | 222,000 | 244,200 | 268,620 | 295,482 | 325,030 | 10.00% |
Total | 5.43% | 779,000 | 819,590 | 863,520 | 911,084 | 962,603 | 5.43% |
The target markets that will receive the most attention will be the sectors which require the highest levels of pure water. This means the 70% of the market that wants quality of one Megohm or better. Within this sector, quantified as 558,000 cu ft annually, H20 Industries will emphasize those users wanting the top echelon of purity (18 Megohms).This sector of the market might be only one third of the 558,000, but even at one third (186,000), it totals more than 300% of H20 Industries’s total capacity, including its bulk portion.
One notable trend in industries is to out-source. Chief financial officers analyze the costs of producing something in-house versus the costs of farming it out. Water purification is no exception. Although many large users of H20 Industries will want to set up their own in-house capacity, the capital costs, the maintenance costs, and the costs of dealing with regenerate waste often make DI portable exchange a more economical solution. Down-sizing within a company with its own pure water manufacturing capability often will lead to a management decision to shut down their in-house plant and switch over to portable service.
Another trend is for more and more industries to need higher degrees of purity in their manufacturing process, which results in an ever-growing market for H20 Industries.
The reasoning behind the attention to the highest purity sector of the market is that H20 Industries is able to provide segregated DI exchange service. A customer’s in-coming tanks for regeneration are tagged, and after regeneration, the same resin is returned to the customer. This specialized service is a major selling feature over US Filter, who must co-mingle customers’ resin in a bulk regenerating facility. Also, bulk regeneration will not achieve the same deionization capacity as H20 Industries’s segregated method which utilizes more chemicals and longer regeneration times. A customer dealing with blood can easily be sold on segregated resin as he would not feel comfortable that his resin would be co-mingled with resin used in a totally different industry.
In addition to the feature mentioned above, H20 Industries will concentrate on those customers who place a premium on response speed and intensity of service. Again, mainly the higher quality users of H20 Industries exchange, where a shut-down would be very expensive, will demand the highest degree of quality available. Segregated exchange service from a smaller supplier is much more likely to satisfy than a huge conglomerate like US Filter where portable exchange can only be done on a bulk batching basis and represents only a small part of their overall business.
The market growth percentages used in the market analysis table were obtained from various articles appearing in ULTRAPURE WATER®, the definitive journal of high-purity water. Specific articles can be located from an index on their website, www.talloaks.com/.
The industry for providing portable H20 Industries service is dominated by one very large company–US Filter. US Filter controls between 90 to 95% of the H20 Industries service business in Northern California. The company has grown from $1 billion to over $5 billion in the past six years, primarily through an acquisition binge. The company is now finalizing its sale to Vivendi’s Generale des Eaux water subsidiary which will result in combined sales of $12 billion, making it the largest water business in the world. Originally, US Filter’s primary focus was industrial and high purity water. Its acquisitions in other areas include drinking water, waste water, municipal water, and water supply.
Now, less than 20% of its activities relate to technologies and markets connected with high purity water. A much smaller percentage is connected with H20 Industries, and a still-smaller percentage concerned with DI exchange service. After their merger, the percentage will drop even further from 20% to eight percent. This situation has resulted in a growing dissatisfaction with US Filter’s services for H20 Industries exchange. Both owners of this project have been hearing complaints from US Filter customers for quite some time. This is not just a condition evident in Northern California, other sections of the country have noticed it and competitors to US Filter’s DI exchange business have started to grow.
Users of H20 Industries have had little choice in regards to their provider. It is regenerated on a bulk basis only, with no option for segregated regenerated resin (see section on Market Segmentation). Some small customers have obtained the DI exchange service through their local Culligan man or similar water serviceman who in turn obtains it from US Filter. The fact that some small players in the market can capture some of this DI exchange business from US Filter despite a higher price ($63-$80 per cu ft versus $40 per cu ft from US Filter) is a good indication of the importance that service plays in the buying decision. Rarely does the price of H20 Industries represent a significant variable production cost in a manufacturing process. Much more of a factor is worry about quality level and service response time.
In reaction to the service complaints of customers for US Filter’s DI exchange, a couple of small competitors have sprung up in Northern California. Fluid Solutions in Lowell is one such company. This company has been supplying customers with H20 Industries exchange although they have no regeneration facilities of their own. They merely service the customers and send the tanks to a regeneration facility of another DI exchange company in Pennsylvania.
The prices charged by all local companies to regenerate are between $63 and $80 per cu ft for mixed bed. They charge $20 to $30, depending on tank size, as a monthly rental charge.
The market in Northern California is ripe for growth in competitors to US Filter which does not provide segregated regeneration and whose regenerated resin, on a bulk batch basis, will not serve as high a flow rate as non-bulk regeneration.
Industry participants are varied, as there are several means of obtaining purified water. There are companies which design and engineer reverse osmosis equipment. This equipment has a sizable share of the water market at the end close to the municipal water inlet. Reverse osmosis (R/O), in conjunction with carbon filtering and ultraviolet light, is used (for example in dialysis) to bring the TDS down to a lower level. Ion exchange, either fixed or portable, is then used to polish away the remaining impurities. Other companies may supply e-cell equipment which deionizes electrically. This technology has not advanced sufficiently to compete with traditional H20 Industries but is still occasionally sold in conjunction with a R/O system as the e-cell can only handle small levels of TDS. Some industry participants are primarily engaged in water softening and water filtration for drinking and household purposes. These companies may also utilize green sand to remove iron and magnesium hardness derived from aging municipal piping systems.
In short, there is a full range of industry participants from the local Culligan service representative mainly involved in private households, to large companies involved in engineering, design, consulting, component manufacturing, waste water treatment, etc. With respect to the narrower market for H20 Industries, there are chemical companies who supply (by the gallon) H20 Industries to very small users. There are a few small companies engaged in DI exchange service who do this only as an adjunct to their main business, such as water softening, and who only act as a distributor of DI exchange regeneration facilities located outside of Northern California.
Besides direct sales effort to large users of H20 Industries, a major element of the company’s marketing efforts will be to develop a distributor network through existing local water service companies. These companies provide local water service to small companies and homes throughout Northern California. Most of their business takes the form of water filtering, water softening, reverse osmosis maintenance, swimming pool service, etc. The best of these will be recruited to add H20 Industries service to their product line.
H20 Industries will offer segregated resin regeneration to customers wanting the highest levels of water purity. Segregated regeneration is not offered by any other company in Northern California and indications are, based on present pre-start-up sales, that users of H20 Industries are willing to pay a substantial premium for it. It represents a form of peace of mind which dialysis units, laboratories, etc. feel is important.
The second most important value proposition is service response. When H20 Industries tanks need changing customers insist on, and will receive, an immediate response.
H20 Industries’s ability to segregate a customer’s resin and return it to him regenerated to the maximum limit, should put the company in a strong competitive position.
Approximately all of H20 Industries’s business will be directed at the portable service DI market. This market emphasis should quickly be noticed by users of H20 Industries, who at present rely on US Filter. US Filter’s product range growth through acquisition and buy-outs has de-emphasized the importance of its H20 Industries exchange service.
Hence, the two major aspects of the firm’s competitive advantage would be high quality segregated resin regeneration and fast service response. It will be important to stress these advantages in the sales literature.
H20 Industries’s marketing strategy will be to execute and communicate its value proposition of service and market segmentation advantage in providing segregated regeneration of customers’ resin.
Wherever H20 Industries cannot economically sell directly, due to distance or quantities, it will utilize a network of water service companies. These companies will be carefully chosen for their quality of service. An arrangement will be set up whereby the distributor will offer DI exchange service along with its other water services. The installations can easily be handled by them. They would tag the tanks and return and pick up from the H20 Industries plant. Being able to offer this service increases the image of the local water service company. It fosters a feeling a one-stop shopping. A 33% discount off the retail price should be adequate to satisfy the distributors.
H20 Industries’s ability to regenerate resin on a segregated basis, rather than only bulk, is a capability that should provide quick and easy entry into the user market where the highest water purity is needed. These users, blood analysis, hemodialysis units, and medical laboratories for example, are especially sensitive to contamination risks. Simply pointing out to these users that bulk regeneration involves the co-mingling of their resin with resin used in the metal-finishing and car wash industries usually is quite convincing. Segregated regeneration results in the further advantage of achieving a higher DI capacity per cubic foot as greater quantities of chemicals are used during a longer regeneration period.
The second most important position statement is H20 Industries’s concentration on the DI exchange business. This concentration will force H20 Industries to provide a higher level of service, and more quickly, too. It must be remembered that the cost for H20 Industries in the market for the highest level of water purity is not a significant cost element in the overall cost structure. However, a service shutdown, for quality or for service reasons, would be very costly to high technology users of H20 Industries.
In line with the conclusions drawn in the positioning statements, H20 Industries can charge a higher price for its segregated regenerated resin. There is virtually no competition for this product in the Northern California market.
Charging $63 per cubic foot (mixed bed), as used in the sales projections, is more than a 65% increase over the price for US Filter’s bulk resin price for mixed bed. H20 Industries is currently successfully charging in excess of $70 for this product. It is essential that H20 Industries place a premium price consistent with its superior product.
Wholesale prices have been established to encourage the quick formation of a dealership network. Dealers are afforded a 33% discount.
The main focus of promotion will be two-pronged: promotion to H20 Industries end users, and promotion to wholesalers.
Promotion to wholesalers should receive primary stress due to the extended reach made possible by the wholesaler network with its existing customer base. The sales force of these wholesale distributors needs to be educated on H20 Industries’s positioning statement so that they all understand the important sales advantages of segregated resin. Being able to offer DI exchange service to a distributor’s customer list is a great advantage to the distributor, and this fact needs to be clearly spelled out to them. Therefore, the H20 Industries relationship with a dealership network is one in which both sides benefit.
H20 Industries should strive to create a small-town, friendly relationship with its customers. Company brochures will show a map with all the H20 Industries locations, including each newly acquired distributor. The distributor trucks, as well as H20 Industries vehicles, would carry the H20 Industries logo, helping all to achieve name recognition. Cost savings would result through sharing literature, leads (by territory and/or industry), co-op marketing costs, and the sharing of technical expertise.
Direct marketing to customers within easy reach of H20 Industries should stress service. As a major supplier of resin stated: “US Filter is a huge concern that closes down at 5 P.M. on Friday.” Customers for H20 Industries need to feel that they can get service after hours, and even on a Saturday if need be. These customers feel much more comfortable dealing with an exchange service that is closer in size to the customer, and where the exchange service is an important portion of total sales revenue of the supplier. Prompt deliveries, trouble-free installations, good technical advise, etc. are main building blocks of the promotion strategy.
The sales strategy is to concentrate on that segment of the market most easily captured by the following sales feature: segregated regeneration of portable resin. In addition, the fastest way to reach the sales goal for the first several years is by actively working to develop a dealership network for H20 Industries.
Sales Projections:
Sales (July 1999) are running at less than 15% capacity monthly, exclusive of rental revenue. This approximates 285 cubic ft per month. The plant capacity will be 100 cu ft per day, on a one-shift basis. Based on the potential market outlined in the Marketing Section of this plan, growth in sales of regenerated segregated resin should reach 433 cu ft per month by October (equals 20 cu ft/day) which is this plan’s starting point, and growing steadily each month until 80 cu ft per day is reached (80% capacity) by the end of the first year. Total production of segregated resin is assumed to be split into equal quantities of anion, cation, and mixed bed.
Once the 80% capacity utilization level is reached (October 2000), unit sales will grow modestly in year two and year three. This growth can be achieved within the capacity limits of 100 cu ft daily (26,000 cu ft per annum) without increases in production labor. Further increases in segregated regeneration would require overtime labor charges. Also, for the projection purposes, direct unit costs for years two and three remain at the level of year one.
The bulk regeneration pad will have a capacity of 20 cu ft and can handle two batches during an eight-hour shift, totaling 40 cu ft/day. We will assume sales for bulk regeneration will grow at the rate of 5 cu ft/day in the first month reaching capacity of 40 cu ft/day after eight months. Sales are split between mixed bed (50%), 25% anion, and 25% cation. Sales of bulk resin will grow 15% each of the first three years. As the bulk regeneration, unlike the segregated regeneration, is not labor intensive, this 15% growth can be achieved without increases in production labor.
In projecting unit prices per ten cu ft. Prices will be assumed at:
The above prices will be reduced for dealers who will deliver and pick up at the factory to:
We will assume that 50% of all sales will go through dealers, so the unit price weighted average of the retail and dealer prices will be:
Variable Unit Costs:
The costs connected with one cubic foot of segregated anion treatment involve the cost of:
Cost of replacing small amounts of lost resin.
Experience indicates that with each regeneration it is necessary to replace approximately two percent of the resin. Anion resin costs $130 per cu ft. Cost is $2.60 per cu ft of anion serviced.
Summary of Anion servicing costs:
Total for anion servicing: $10.74
The costs connected with servicing one cubic foot of segregated cation treatment involve the cost of:
Experience indicates that in the process of regeneration about 2% of the resin needs to be replaced. Cation resin costs $30 per cu ft. Cost is $.60 per cu ft of cation serviced.
Summary of Cation servicing costs:
Total: $8.78 for cation servicing.
Costs of servicing one cubic foot of mixed bed:
A mixed bed tank is more time-consuming as it requires a separation stage prior to regeneration. City water (not DI) is mixed with salt. This solution is used to bathe the anion and cation resin in a cone until the two resins separate, at which point the cation and anion are treated in the regeneration stage in the same manner as the single bed anion and cation. One mixed bed contains twice as much anion as cation. This aspect results in a weighted cost of $10.09 per cu ft Salt consumption: every cubic foot of mixed bed needs 1.5 cu ft of brine solution. There are 7.48 gallons per cu ft This comes to 11 gallons of brine needs. A 22% salt solution in this quantity of water would amount to amount two pounds. Salt is supplied by Hubbard-Hall Inc. at $.095 per pound. Adding the cost of the two pounds of salt to the weighted average cost of $10.09 comes to $10.28.
Total cost of mixed bed serving: $10.28 per cu ft.
Tank Rental Income:
Because of the high costs of purchasing tanks, many new customers opt for renting tanks on a monthly basis. For purposes of these projections we will assume that:
Tank Sales:
It is assumed that those customers who do not opt to rent their tanks will already have their own tanks or will purchase tanks from H20 Industries. Sales of tanks is assumed at only five percent of the number of monthly rental tanks. Sales price is $1,200. Cost equals $450.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Unit Sales | |||
Segregated Anion Service 10 cu ft | 445 | 728 | 764 |
Segregated Cation Service 10 cu ft | 445 | 728 | 764 |
Segregated Mixed Bed 10 cu ft | 445 | 728 | 764 |
Bulk Regen 10 cu ft (MB) | 367 | 598 | 687 |
Bulk Regen 10 cu ft (Cat) | 183 | 299 | 344 |
Bulk Regen 10 cu ft (An) | 183 | 299 | 344 |
Tank Rentals (each 3.6 cu ft): | 1,436 | 2,347 | 2,546 |
Tank Sales: | 67 | 117 | 127 |
Other | 0 | 0 | 0 |
Total Unit Sales | 3,572 | 5,844 | 6,340 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Segregated Anion Service 10 cu ft | $476.00 | $476.00 | $476.00 |
Segregated Cation Service 10 cu ft | $476.00 | $476.00 | $476.00 |
Segregated Mixed Bed 10 cu ft | $526.00 | $526.00 | $526.00 |
Bulk Regen 10 cu ft (MB) | $359.00 | $359.00 | $359.00 |
Bulk Regen 10 cu ft (Cat) | $267.50 | $267.50 | $267.50 |
Bulk Regen 10 cu ft (An) | $267.50 | $267.50 | $267.50 |
Tank Rentals (each 3.6 cu ft): | $40.00 | $40.00 | $40.00 |
Tank Sales: | $1,200.00 | $1,200.00 | $1,200.00 |
Other | $0.00 | $0.00 | $0.00 |
Sales | |||
Segregated Anion Service 10 cu ft | $211,820 | $346,528 | $363,664 |
Segregated Cation Service 10 cu ft | $211,820 | $346,528 | $363,664 |
Segregated Mixed Bed 10 cu ft | $234,070 | $382,928 | $401,864 |
Bulk Regen 10 cu ft (MB) | $131,753 | $214,682 | $246,633 |
Bulk Regen 10 cu ft (Cat) | $49,080 | $79,983 | $92,020 |
Bulk Regen 10 cu ft (An) | $49,080 | $79,983 | $92,020 |
Tank Rentals (each 3.6 cu ft): | $57,440 | $93,880 | $101,840 |
Tank Sales: | $80,400 | $140,400 | $152,400 |
Other | $0 | $0 | $0 |
Total Sales | $1,025,462 | $1,684,911 | $1,814,105 |
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Segregated Anion Service 10 cu ft | $107.40 | $107.40 | $107.40 |
Segregated Cation Service 10 cu ft | $87.80 | $87.80 | $87.80 |
Segregated Mixed Bed 10 cu ft | $102.80 | $102.80 | $102.80 |
Bulk Regen 10 cu ft (MB) | $61.40 | $61.40 | $61.40 |
Bulk Regen 10 cu ft (Cat) | $69.50 | $69.50 | $69.50 |
Bulk Regen 10 cu ft (An) | $72.50 | $72.50 | $72.50 |
Tank Rentals (each 3.6 cu ft): | $0.00 | $0.00 | $0.00 |
Tank Sales: | $450.00 | $450.00 | $450.00 |
Other | $0.00 | $0.00 | $0.00 |
Direct Cost of Sales | |||
Segregated Anion Service 10 cu ft | $47,793 | $78,187 | $82,054 |
Segregated Cation Service 10 cu ft | $39,071 | $63,918 | $67,079 |
Segregated Mixed Bed 10 cu ft | $45,746 | $74,838 | $78,539 |
Bulk Regen 10 cu ft (MB) | $22,534 | $36,717 | $42,182 |
Bulk Regen 10 cu ft (Cat) | $12,752 | $20,781 | $23,908 |
Bulk Regen 10 cu ft (An) | $13,302 | $21,678 | $24,940 |
Tank Rentals (each 3.6 cu ft): | $0 | $0 | $0 |
Tank Sales: | $30,150 | $52,650 | $57,150 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $211,347 | $348,769 | $375,852 |
The relationship between dealerships and H20 Industries could be called a strategic alliance. These water service companies have an extensive customer base. Most of the customers have needs such as water softening, filtration, reverse osmosis maintenance, swimming pool maintenance, etc., however, many dealership customers have H20 Industries needs as well. At present, these water service companies must direct their customers to US Filter or supply the customer through US Filter. Forming a relationship between H20 Industries and these dealerships would quickly result in substantial sales increases for H20 Industries and would result in increased prestige and profits for the dealerships.
The management of H20 Industries is made up of individual shareholders with extensive expertise in the water treatment industry, as well as commercial and financial background.
The management team is uniquely qualified to implement this business plan. The founders, John Jones and Dave Smith, have been active in the water treatment industry for years. John’s experience working with dealers in application engineering and sales has prepared him well to present the H20 Industries dealership to water service companies that he already knows. His years of calling on dealerships in all aspects of the water industry have allowed him a birds-eye view of the prevailing marketing and business practices.
Dave has been involved in the manufacturing sector of the water industry and is well respected and connected there. His training and certification as a Professional Engineer give him an advantage when consulting with customers and prospective customers.
The person planned for the position of general manager has wide-ranging experience in finance and manufacturing. He is a former vice president of Chase Manhattan Bank, team leader of a development bank (Saudi Industrial Development Fund), and founder/general manager of a factory which, after 10 years of profitable operations, was bought out in 1989.
The production manager is a chemical engineer by education and professional experience, and has demonstrated his know-how by successfully managing the production activity in the factory despite the challenges presented by the present incomplete production line.
Regeneration Personnel : A production manager must be a skilled chemical engineer with experience in water treatment applications. This person must be a hands-on individual supervising two assistants. The production manager will label the tanks as they are received to assure customer segregation and supervise the proper regeneration cycle, from separation through backwash, draw, flush, mix, and testing. The assistants will primarily be kept busy moving tanks from one stage in the regeneration cycle to the next, connecting the hosing, performing the chemical mix and draw according to the instructions of the production manager, adding salt to the brine tank, etc. The production manager is in place. One assistant is now in place. A second is needed.
An engineer/fitter is also needed to maintain the equipment and to make installations. This person is in place.
Sales and Marketing Personnel : It is planned that both owners will continue to maintain their present positions. These sales positions require them to move about the territory which provides an excellent source of knowledge of customers for H20 Industries. This information will be communicated to the sales and marketing manager who will spend his time calling and visiting potential H20 Industries users. He will be paid a base salary plus commissions. The commission will be higher for landing a new customer, and lower for repeat sales. The commission schedule will be constructed in such a way as to permit an annual total compensation that will encourage excellent sales results.
General and Administrative : An office manager is needed. Answering phones, primary contact with customers, incoming and outgoing mail, etc. He will be the main connection between the owners and the operations of the facility. Within six months, a part-time assistant will need to be added to keep pace with bookkeeping and management.
Delivery Personnel : One driver, who has additional responsibilities, is now in place. A second will need to be added after approximately four months.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Production Personnel | |||
Production Manager | $41,604 | $41,600 | $41,600 |
Assistant | $20,796 | $20,800 | $20,800 |
Assistant | $20,796 | $20,800 | $20,800 |
Engineer/fitter | $31,200 | $31,200 | $31,200 |
Drivers | $54,198 | $58,400 | $58,400 |
Other | $0 | $0 | $0 |
Subtotal | $168,594 | $172,800 | $172,800 |
Sales and Marketing Personnel | |||
Sales Manager (base) | $24,000 | $24,000 | $24,000 |
Sales Manager (commissions) | $38,660 | $51,000 | $60,000 |
Name or title | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Subtotal | $62,660 | $75,000 | $84,000 |
General and Administrative Personnel | |||
Office Manager | $39,996 | $40,000 | $40,000 |
Bookkeeper (part-time) | $9,100 | $15,600 | $15,600 |
Name or title | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Subtotal | $49,096 | $55,600 | $55,600 |
Other Personnel | |||
Name or Title | $0 | $0 | $0 |
Name or title | $0 | $0 | $0 |
Name or title | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Subtotal | $0 | $0 | $0 |
Total People | 9 | 9 | 9 |
Total Payroll | $280,350 | $303,400 | $312,400 |
As of August 1999, stockholder equity stood at $112,000. Additional infusion of equity from new shareholders will boost the equity capital.
To complete the necessary planned additions to plant and equipment, a 5-year term loan will be required from a financial institution. The projected cash-flow is sufficient to repay this loan in quarterly installments. This term loan should be sufficient to cover the increases in accounts receivable, as well as to support growth in inventory of rental tanks.
Tax rate reflects the present sliding scale:
Inventory Turnover:
Since this is a service business, the only inventory is that of chemicals and some resin, both of which do not need to be stored more than two weeks. Average is one week (inventory turnover rate of 48).
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 2.50% | 0.00% | 2.50% |
Other | 0 | 0 | 0 |
The following table and chart show the Monthly Units and Monthly Revenue Break-even calculations based on the Average Per-Unit Revenue, Average Per-Unit Variable Costs and the Estimated Monthly Fixed Costs, as drawn from the other financial tables in this plan.
Break-even Analysis | |
Monthly Units Break-even | 119 |
Monthly Revenue Break-even | $34,235 |
Assumptions: | |
Average Per-Unit Revenue | $287.08 |
Average Per-Unit Variable Cost | $59.17 |
Estimated Monthly Fixed Cost | $27,179 |
The following table and charts give the yearly projected profit and loss statement for H20 Industries. For a monthly analysis, please see attached appendix.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $1,025,462 | $1,684,911 | $1,814,105 |
Direct Cost of Sales | $211,347 | $348,769 | $375,852 |
Production Payroll | $168,594 | $172,800 | $172,800 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $379,941 | $521,569 | $548,652 |
Gross Margin | $645,521 | $1,163,342 | $1,265,453 |
Gross Margin % | 62.95% | 69.04% | 69.76% |
Operating Expenses | |||
Sales and Marketing Expenses | |||
Sales and Marketing Payroll | $62,660 | $75,000 | $84,000 |
Advertising/Promotion | $16,500 | $12,000 | $12,000 |
Travel | $3,600 | $6,000 | $6,000 |
Fuel/oil for Vehicles: | $11,520 | $12,000 | $12,500 |
Vehicle Repair: | $20,004 | $20,000 | $20,000 |
Uniforms | $1,200 | $1,200 | $1,200 |
Miscellaneous | $10,800 | $10,800 | $10,800 |
Total Sales and Marketing Expenses | $126,284 | $137,000 | $146,500 |
Sales and Marketing % | 12.31% | 8.13% | 8.08% |
General and Administrative Expenses | |||
General and Administrative Payroll | $49,096 | $55,600 | $55,600 |
Sales and Marketing and Other Expenses | $0 | $0 | $0 |
Depreciation | $36,000 | $36,000 | $36,000 |
Leased Equipment | $15,252 | $15,252 | $15,252 |
Utilities | $2,250 | $2,250 | $2,250 |
Insurance | $11,796 | $11,800 | $11,800 |
Business Liab. Insurance: | $12,000 | $12,000 | $12,000 |
Printing and Postage: | $3,600 | $3,600 | $3,600 |
Telephone Expenses: | $8,004 | $8,000 | $8,000 |
Auditing: | $2,400 | $2,400 | $2,400 |
Rent | $24,000 | $24,000 | $24,000 |
Payroll Taxes | $35,464 | $38,380 | $39,519 |
Other General and Administrative Expenses | $0 | $0 | $0 |
Total General and Administrative Expenses | $199,862 | $209,282 | $210,421 |
General and Administrative % | 19.49% | 12.42% | 11.60% |
Other Expenses: | |||
Other Payroll | $0 | $0 | $0 |
Consultants | $0 | $0 | $0 |
Contract/Consultants | $0 | $0 | $0 |
Total Other Expenses | $0 | $0 | $0 |
Other % | 0.00% | 0.00% | 0.00% |
Total Operating Expenses | $326,146 | $346,282 | $356,921 |
Profit Before Interest and Taxes | $319,375 | $817,060 | $908,533 |
EBITDA | $355,375 | $853,060 | $944,533 |
Interest Expense | $19,755 | $12,323 | $9,948 |
Taxes Incurred | ($4,643) | $0 | $22,465 |
Net Profit | $304,263 | $804,737 | $876,120 |
Net Profit/Sales | 29.67% | 47.76% | 48.29% |
Cash Flow is an intrinsic projection for H20 Industries. We must maintain a suitable cash balance in the bank in order to be successful. The chart and table below outline our basic cash flow assumptions.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $0 | $0 | $0 |
Cash from Receivables | $774,831 | $1,523,736 | $1,782,529 |
Subtotal Cash from Operations | $774,831 | $1,523,736 | $1,782,529 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $50,000 | $6,250 | $6,250 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $50,000 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $874,831 | $1,529,986 | $1,788,779 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $280,350 | $303,400 | $312,400 |
Bill Payments | $439,684 | $559,027 | $590,514 |
Subtotal Spent on Operations | $720,034 | $862,427 | $902,914 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $56,252 | $0 | $0 |
Other Liabilities Principal Repayment | $16,810 | $0 | $0 |
Long-term Liabilities Principal Repayment | $60,000 | $30,000 | $30,000 |
Purchase Other Current Assets | $63,450 | $10,350 | $9,450 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $916,546 | $902,777 | $942,364 |
Net Cash Flow | ($41,715) | $627,209 | $846,415 |
Cash Balance | $82,508 | $709,717 | $1,556,132 |
The projected balance sheet for H20 Industries is presented below.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $82,508 | $709,717 | $1,556,132 |
Accounts Receivable | $250,631 | $411,806 | $443,382 |
Inventory | $28,886 | $47,669 | $51,370 |
Other Current Assets | $103,450 | $113,800 | $123,250 |
Total Current Assets | $465,476 | $1,282,992 | $2,174,135 |
Long-term Assets | |||
Long-term Assets | $220,000 | $220,000 | $220,000 |
Accumulated Depreciation | $36,000 | $72,000 | $108,000 |
Total Long-term Assets | $184,000 | $148,000 | $112,000 |
Total Assets | $649,476 | $1,430,992 | $2,286,135 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $45,461 | $45,991 | $48,763 |
Current Borrowing | $15,102 | $21,352 | $27,602 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $60,563 | $67,343 | $76,365 |
Long-term Liabilities | $120,000 | $90,000 | $60,000 |
Total Liabilities | $180,563 | $157,343 | $136,365 |
Paid-in Capital | $187,000 | $187,000 | $187,000 |
Retained Earnings | ($22,350) | $281,913 | $1,086,650 |
Earnings | $304,263 | $804,737 | $876,120 |
Total Capital | $468,913 | $1,273,650 | $2,149,770 |
Total Liabilities and Capital | $649,476 | $1,430,992 | $2,286,135 |
Net Worth | $468,913 | $1,273,650 | $2,149,770 |
The following table gives standard business ratios for the water treatment equipment manufacturer industry, as determined by the Standard Industry Classification (SIC) Index code 3589. The last column, Industry Profile, presents specific information and important ratios for this industry.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 64.31% | 7.67% | 8.10% |
Percent of Total Assets | ||||
Accounts Receivable | 38.59% | 28.78% | 19.39% | 25.10% |
Inventory | 4.45% | 3.33% | 2.25% | 21.60% |
Other Current Assets | 15.93% | 7.95% | 5.39% | 25.80% |
Total Current Assets | 71.67% | 89.66% | 95.10% | 72.50% |
Long-term Assets | 28.33% | 10.34% | 4.90% | 27.50% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 9.32% | 4.71% | 3.34% | 35.50% |
Long-term Liabilities | 18.48% | 6.29% | 2.62% | 21.30% |
Total Liabilities | 27.80% | 11.00% | 5.96% | 56.80% |
Net Worth | 72.20% | 89.00% | 94.04% | 43.20% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 62.95% | 69.04% | 69.76% | 32.10% |
Selling, General & Administrative Expenses | 33.28% | 21.28% | 20.22% | 17.80% |
Advertising Expenses | 1.61% | 0.71% | 0.66% | 0.90% |
Profit Before Interest and Taxes | 31.14% | 48.49% | 50.08% | 3.40% |
Main Ratios | ||||
Current | 7.69 | 19.05 | 28.47 | 2.12 |
Quick | 7.21 | 18.34 | 27.80 | 1.20 |
Total Debt to Total Assets | 27.80% | 11.00% | 5.96% | 56.80% |
Pre-tax Return on Net Worth | 63.90% | 63.18% | 41.80% | 4.50% |
Pre-tax Return on Assets | 46.13% | 56.24% | 39.31% | 10.40% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 29.67% | 47.76% | 48.29% | n.a |
Return on Equity | 64.89% | 63.18% | 40.75% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 4.09 | 4.09 | 4.09 | n.a |
Collection Days | 56 | 72 | 86 | n.a |
Inventory Turnover | 10.91 | 9.11 | 7.59 | n.a |
Accounts Payable Turnover | 9.32 | 12.17 | 12.17 | n.a |
Payment Days | 31 | 30 | 29 | n.a |
Total Asset Turnover | 1.58 | 1.18 | 0.79 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.39 | 0.12 | 0.06 | n.a |
Current Liab. to Liab. | 0.34 | 0.43 | 0.56 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $404,913 | $1,215,650 | $2,097,770 | n.a |
Interest Coverage | 16.17 | 66.31 | 91.33 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.63 | 0.85 | 1.26 | n.a |
Current Debt/Total Assets | 9% | 5% | 3% | n.a |
Acid Test | 3.07 | 12.23 | 21.99 | n.a |
Sales/Net Worth | 2.19 | 1.32 | 0.84 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Unit Sales | |||||||||||||
Segregated Anion Service 10 cu ft | 0% | 14 | 19 | 23 | 27 | 31 | 35 | 40 | 44 | 48 | 52 | 56 | 57 |
Segregated Cation Service 10 cu ft | 0% | 14 | 19 | 23 | 27 | 31 | 35 | 40 | 44 | 48 | 52 | 56 | 57 |
Segregated Mixed Bed 10 cu ft | 0% | 14 | 19 | 23 | 27 | 31 | 35 | 40 | 44 | 48 | 52 | 56 | 57 |
Bulk Regen 10 cu ft (MB) | 0% | 5 | 11 | 16 | 22 | 26 | 33 | 38 | 43 | 43 | 43 | 43 | 43 |
Bulk Regen 10 cu ft (Cat) | 0% | 3 | 5 | 8 | 11 | 13 | 16 | 19 | 22 | 22 | 22 | 22 | 22 |
Bulk Regen 10 cu ft (An) | 0% | 3 | 5 | 8 | 11 | 13 | 16 | 19 | 22 | 22 | 22 | 22 | 22 |
Tank Rentals (each 3.6 cu ft): | 0% | 37 | 54 | 70 | 86 | 101 | 118 | 135 | 151 | 160 | 168 | 178 | 178 |
Tank Sales: | 0% | 2 | 2 | 3 | 4 | 5 | 5 | 7 | 7 | 8 | 8 | 8 | 8 |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total Unit Sales | 92 | 133 | 174 | 214 | 251 | 294 | 336 | 376 | 398 | 419 | 442 | 443 | |
Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Segregated Anion Service 10 cu ft | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | |
Segregated Cation Service 10 cu ft | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | |
Segregated Mixed Bed 10 cu ft | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | |
Bulk Regen 10 cu ft (MB) | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | |
Bulk Regen 10 cu ft (Cat) | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | |
Bulk Regen 10 cu ft (An) | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | |
Tank Rentals (each 3.6 cu ft): | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | |
Tank Sales: | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | |
Other | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |
Sales | |||||||||||||
Segregated Anion Service 10 cu ft | $6,807 | $8,806 | $10,805 | $12,804 | $14,804 | $16,803 | $18,802 | $20,801 | $22,800 | $24,800 | $26,799 | $26,989 | |
Segregated Cation Service 10 cu ft | $6,807 | $8,806 | $10,805 | $12,804 | $14,804 | $16,803 | $18,802 | $20,801 | $22,800 | $24,800 | $26,799 | $26,989 | |
Segregated Mixed Bed 10 cu ft | $7,364 | $9,731 | $11,940 | $14,149 | $16,359 | $18,568 | $20,777 | $22,986 | $25,195 | $27,405 | $29,614 | $29,982 | |
Bulk Regen 10 cu ft (MB) | $1,939 | $3,877 | $5,834 | $7,772 | $9,334 | $11,668 | $13,606 | $15,545 | $15,545 | $15,545 | $15,545 | $15,545 | |
Bulk Regen 10 cu ft (Cat) | $722 | $1,445 | $2,173 | $2,889 | $3,478 | $4,347 | $5,069 | $5,791 | $5,791 | $5,791 | $5,791 | $5,791 | |
Bulk Regen 10 cu ft (An) | $722 | $1,445 | $2,173 | $2,889 | $3,478 | $4,347 | $5,069 | $5,791 | $5,791 | $5,791 | $5,791 | $5,791 | |
Tank Rentals (each 3.6 cu ft): | $1,480 | $2,160 | $2,800 | $3,440 | $4,040 | $4,720 | $5,400 | $6,040 | $6,400 | $6,720 | $7,120 | $7,120 | |
Tank Sales: | $2,400 | $2,400 | $3,600 | $4,800 | $6,000 | $6,000 | $8,400 | $8,400 | $9,600 | $9,600 | $9,600 | $9,600 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Sales | $28,241 | $38,669 | $50,131 | $61,549 | $72,295 | $83,255 | $95,925 | $106,156 | $113,924 | $120,451 | $127,059 | $127,808 | |
Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Segregated Anion Service 10 cu ft | 0.00% | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 |
Segregated Cation Service 10 cu ft | 0.00% | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 |
Segregated Mixed Bed 10 cu ft | 0.00% | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 |
Bulk Regen 10 cu ft (MB) | 0.00% | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 |
Bulk Regen 10 cu ft (Cat) | 0.00% | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 |
Bulk Regen 10 cu ft (An) | 0.00% | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 |
Tank Rentals (each 3.6 cu ft): | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Tank Sales: | 0.00% | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 |
Other | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Direct Cost of Sales | |||||||||||||
Segregated Anion Service 10 cu ft | $1,536 | $1,987 | $2,438 | $2,889 | $3,340 | $3,791 | $4,242 | $4,693 | $5,144 | $5,596 | $6,047 | $6,090 | |
Segregated Cation Service 10 cu ft | $1,256 | $1,624 | $1,993 | $2,362 | $2,731 | $3,099 | $3,468 | $3,837 | $4,206 | $4,574 | $4,943 | $4,978 | |
Segregated Mixed Bed 10 cu ft | $1,439 | $1,902 | $2,334 | $2,765 | $3,197 | $3,629 | $4,061 | $4,492 | $4,924 | $5,356 | $5,788 | $5,860 | |
Bulk Regen 10 cu ft (MB) | $332 | $663 | $998 | $1,329 | $1,596 | $1,996 | $2,327 | $2,659 | $2,659 | $2,659 | $2,659 | $2,659 | |
Bulk Regen 10 cu ft (Cat) | $188 | $375 | $565 | $751 | $904 | $1,129 | $1,317 | $1,505 | $1,505 | $1,505 | $1,505 | $1,505 | |
Bulk Regen 10 cu ft (An) | $196 | $392 | $589 | $783 | $943 | $1,178 | $1,374 | $1,570 | $1,570 | $1,570 | $1,570 | $1,570 | |
Tank Rentals (each 3.6 cu ft): | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Tank Sales: | $900 | $900 | $1,350 | $1,800 | $2,250 | $2,250 | $3,150 | $3,150 | $3,600 | $3,600 | $3,600 | $3,600 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $5,846 | $7,843 | $10,266 | $12,679 | $14,960 | $17,072 | $19,939 | $21,906 | $23,607 | $24,859 | $26,110 | $26,260 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Production Personnel | |||||||||||||
Production Manager | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | |
Assistant | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | |
Assistant | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | |
Engineer/fitter | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | |
Drivers | $3,467 | $3,466 | $3,467 | $4,866 | $4,867 | $4,866 | $4,867 | $4,866 | $4,867 | $4,866 | $4,867 | $4,866 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $13,000 | $12,999 | $13,000 | $14,399 | $14,400 | $14,399 | $14,400 | $14,399 | $14,400 | $14,399 | $14,400 | $14,399 | |
Sales and Marketing Personnel | |||||||||||||
Sales Manager (base) | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Sales Manager (commissions) | $960 | $1,500 | $2,000 | $2,500 | $3,000 | $3,700 | $3,850 | $3,950 | $4,100 | $4,250 | $4,350 | $4,500 | |
Name or title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $2,960 | $3,500 | $4,000 | $4,500 | $5,000 | $5,700 | $5,850 | $5,950 | $6,100 | $6,250 | $6,350 | $6,500 | |
General and Administrative Personnel | |||||||||||||
Office Manager | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | |
Bookkeeper (part-time) | $0 | $0 | $0 | $0 | $0 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | |
Name or title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $4,633 | $4,633 | $4,633 | $4,633 | $4,633 | $4,633 | $4,633 | |
Other Personnel | |||||||||||||
Name or Title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Name or title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Name or title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total People | 7 | 7 | 7 | 7 | 8 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | |
Total Payroll | $19,293 | $19,832 | $20,333 | $22,232 | $22,733 | $24,732 | $24,883 | $24,982 | $25,133 | $25,282 | $25,383 | $25,532 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $28,241 | $38,669 | $50,131 | $61,549 | $72,295 | $83,255 | $95,925 | $106,156 | $113,924 | $120,451 | $127,059 | $127,808 | |
Direct Cost of Sales | $5,846 | $7,843 | $10,266 | $12,679 | $14,960 | $17,072 | $19,939 | $21,906 | $23,607 | $24,859 | $26,110 | $26,260 | |
Production Payroll | $13,000 | $12,999 | $13,000 | $14,399 | $14,400 | $14,399 | $14,400 | $14,399 | $14,400 | $14,399 | $14,400 | $14,399 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $18,846 | $20,842 | $23,266 | $27,078 | $29,360 | $31,471 | $34,339 | $36,305 | $38,007 | $39,258 | $40,510 | $40,659 | |
Gross Margin | $9,395 | $17,827 | $26,865 | $34,470 | $42,935 | $51,783 | $61,586 | $69,852 | $75,917 | $81,194 | $86,549 | $87,148 | |
Gross Margin % | 33.27% | 46.10% | 53.59% | 56.01% | 59.39% | 62.20% | 64.20% | 65.80% | 66.64% | 67.41% | 68.12% | 68.19% | |
Operating Expenses | |||||||||||||
Sales and Marketing Expenses | |||||||||||||
Sales and Marketing Payroll | $2,960 | $3,500 | $4,000 | $4,500 | $5,000 | $5,700 | $5,850 | $5,950 | $6,100 | $6,250 | $6,350 | $6,500 | |
Advertising/Promotion | $1,900 | $1,900 | $1,900 | $1,900 | $1,900 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
Travel | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Fuel/oil for Vehicles: | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | |
Vehicle Repair: | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | |
Uniforms | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Miscellaneous | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | |
Total Sales and Marketing Expenses | $8,787 | $9,327 | $9,827 | $10,327 | $10,827 | $10,627 | $10,777 | $10,877 | $11,027 | $11,177 | $11,277 | $11,427 | |
Sales and Marketing % | 31.11% | 24.12% | 19.60% | 16.78% | 14.98% | 12.76% | 11.23% | 10.25% | 9.68% | 9.28% | 8.88% | 8.94% | |
General and Administrative Expenses | |||||||||||||
General and Administrative Payroll | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $4,633 | $4,633 | $4,633 | $4,633 | $4,633 | $4,633 | $4,633 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
Leased Equipment | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | |
Utilities | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $100 | $100 | $100 | $100 | $100 | |
Insurance | $983 | $983 | $983 | $983 | $983 | $983 | $983 | $983 | $983 | $983 | $983 | $983 | |
Business Liab. Insurance: | $0 | $0 | $0 | $0 | $0 | $6,000 | $0 | $0 | $0 | $0 | $0 | $6,000 | |
Printing and Postage: | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Telephone Expenses: | $667 | $667 | $667 | $667 | $667 | $667 | $667 | $667 | $667 | $667 | $667 | $667 | |
Auditing: | $0 | $0 | $0 | $2,400 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Payroll Taxes | 13% | $2,441 | $2,509 | $2,572 | $2,812 | $2,876 | $3,129 | $3,148 | $3,160 | $3,179 | $3,198 | $3,211 | $3,230 |
Other General and Administrative Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total General and Administrative Expenses | $14,245 | $14,313 | $14,376 | $17,016 | $14,680 | $22,233 | $16,252 | $16,114 | $16,133 | $16,152 | $16,165 | $22,184 | |
General and Administrative % | 50.44% | 37.01% | 28.68% | 27.65% | 20.31% | 26.70% | 16.94% | 15.18% | 14.16% | 13.41% | 12.72% | 17.36% | |
Other Expenses: | |||||||||||||
Other Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Consultants | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Contract/Consultants | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
Total Operating Expenses | $23,032 | $23,640 | $24,203 | $27,343 | $25,507 | $32,860 | $27,029 | $26,991 | $27,160 | $27,329 | $27,442 | $33,611 | |
Profit Before Interest and Taxes | ($13,636) | ($5,812) | $2,662 | $7,127 | $17,428 | $18,924 | $34,558 | $42,860 | $48,756 | $53,864 | $59,107 | $53,538 | |
EBITDA | ($10,636) | ($2,812) | $5,662 | $10,127 | $20,428 | $21,924 | $37,558 | $45,860 | $51,756 | $56,864 | $62,107 | $56,538 | |
Interest Expense | $1,840 | $1,773 | $1,769 | $1,765 | $1,698 | $1,694 | $1,689 | $1,622 | $1,618 | $1,614 | $1,547 | $1,126 | |
Taxes Incurred | ($4,643) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($10,834) | ($7,586) | $893 | $5,362 | $15,730 | $17,230 | $32,868 | $41,238 | $47,138 | $52,251 | $57,560 | $52,412 | |
Net Profit/Sales | -38.36% | -19.62% | 1.78% | 8.71% | 21.76% | 20.70% | 34.26% | 38.85% | 41.38% | 43.38% | 45.30% | 41.01% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Cash from Receivables | $0 | $941 | $28,588 | $39,051 | $50,512 | $61,907 | $72,660 | $83,677 | $96,266 | $106,415 | $114,141 | $120,672 | |
Subtotal Cash from Operations | $0 | $941 | $28,588 | $39,051 | $50,512 | $61,907 | $72,660 | $83,677 | $96,266 | $106,415 | $114,141 | $120,672 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $50,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $50,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $100,000 | $941 | $28,588 | $39,051 | $50,512 | $61,907 | $72,660 | $83,677 | $96,266 | $106,415 | $114,141 | $120,672 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $19,293 | $19,832 | $20,333 | $22,232 | $22,733 | $24,732 | $24,883 | $24,982 | $25,133 | $25,282 | $25,383 | $25,532 | |
Bill Payments | $61,849 | $13,625 | $25,719 | $28,739 | $33,600 | $33,584 | $40,540 | $38,353 | $39,147 | $40,550 | $41,335 | $42,644 | |
Subtotal Spent on Operations | $81,142 | $33,457 | $46,052 | $50,971 | $56,333 | $58,316 | $65,423 | $63,335 | $64,280 | $65,832 | $66,718 | $68,176 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $521 | $521 | $521 | $521 | $521 | $521 | $521 | $521 | $521 | $521 | $521 | $50,521 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $16,810 | |
Long-term Liabilities Principal Repayment | $30,000 | $7,500 | $0 | $0 | $7,500 | $0 | $0 | $7,500 | $0 | $0 | $7,500 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $5,400 | $8,550 | $9,900 | $9,900 | $9,450 | $5,400 | $4,500 | $10,350 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $111,663 | $41,478 | $46,573 | $56,892 | $72,904 | $68,737 | $75,844 | $80,806 | $70,201 | $70,853 | $85,089 | $135,507 | |
Net Cash Flow | ($11,663) | ($40,537) | ($17,984) | ($17,840) | ($22,392) | ($6,830) | ($3,184) | $2,871 | $26,066 | $35,562 | $29,052 | ($14,836) | |
Cash Balance | $112,560 | $72,023 | $54,039 | $36,198 | $13,806 | $6,977 | $3,793 | $6,664 | $32,730 | $68,292 | $97,344 | $82,508 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $124,223 | $112,560 | $72,023 | $54,039 | $36,198 | $13,806 | $6,977 | $3,793 | $6,664 | $32,730 | $68,292 | $97,344 | $82,508 |
Accounts Receivable | $0 | $28,241 | $65,969 | $87,511 | $110,009 | $131,792 | $153,140 | $176,405 | $198,884 | $216,541 | $230,577 | $243,495 | $250,631 |
Inventory | $10,000 | $6,430 | $8,627 | $11,293 | $13,947 | $16,456 | $18,780 | $21,933 | $24,096 | $25,968 | $27,345 | $28,721 | $28,886 |
Other Current Assets | $90,000 | $40,000 | $40,000 | $40,000 | $45,400 | $53,950 | $63,850 | $73,750 | $83,200 | $88,600 | $93,100 | $103,450 | $103,450 |
Total Current Assets | $224,223 | $187,230 | $186,619 | $192,843 | $205,554 | $216,004 | $242,746 | $275,881 | $312,844 | $363,839 | $419,314 | $473,010 | $465,476 |
Long-term Assets | |||||||||||||
Long-term Assets | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 |
Accumulated Depreciation | $0 | $3,000 | $6,000 | $9,000 | $12,000 | $15,000 | $18,000 | $21,000 | $24,000 | $27,000 | $30,000 | $33,000 | $36,000 |
Total Long-term Assets | $220,000 | $217,000 | $214,000 | $211,000 | $208,000 | $205,000 | $202,000 | $199,000 | $196,000 | $193,000 | $190,000 | $187,000 | $184,000 |
Total Assets | $444,223 | $404,230 | $400,619 | $403,843 | $413,554 | $421,004 | $444,746 | $474,881 | $508,844 | $556,839 | $609,314 | $660,010 | $649,476 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $61,409 | $12,771 | $24,766 | $27,618 | $32,488 | $32,230 | $39,262 | $37,050 | $37,796 | $39,173 | $39,919 | $41,076 | $45,461 |
Current Borrowing | $21,354 | $70,833 | $70,312 | $69,791 | $69,270 | $68,749 | $68,228 | $67,707 | $67,186 | $66,665 | $66,144 | $65,623 | $15,102 |
Other Current Liabilities | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $0 |
Subtotal Current Liabilities | $99,573 | $100,414 | $111,888 | $114,219 | $118,568 | $117,789 | $124,300 | $121,567 | $121,792 | $122,648 | $122,873 | $123,509 | $60,563 |
Long-term Liabilities | $180,000 | $150,000 | $142,500 | $142,500 | $142,500 | $135,000 | $135,000 | $135,000 | $127,500 | $127,500 | $127,500 | $120,000 | $120,000 |
Total Liabilities | $279,573 | $250,414 | $254,388 | $256,719 | $261,068 | $252,789 | $259,300 | $256,567 | $249,292 | $250,148 | $250,373 | $243,509 | $180,563 |
Paid-in Capital | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 |
Retained Earnings | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) |
Earnings | $0 | ($10,834) | ($18,420) | ($17,527) | ($12,164) | $3,566 | $20,796 | $53,664 | $94,902 | $142,040 | $194,291 | $251,851 | $304,263 |
Total Capital | $164,650 | $153,816 | $146,230 | $147,123 | $152,486 | $168,216 | $185,446 | $218,314 | $259,552 | $306,690 | $358,941 | $416,501 | $468,913 |
Total Liabilities and Capital | $444,223 | $404,230 | $400,619 | $403,843 | $413,554 | $421,004 | $444,746 | $474,881 | $508,844 | $556,839 | $609,314 | $660,010 | $649,476 |
Net Worth | $164,650 | $153,816 | $146,230 | $147,123 | $152,486 | $168,216 | $185,446 | $218,314 | $259,552 | $306,690 | $358,941 | $416,501 | $468,913 |
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Main Sections In This Post Steps To Starting A Bottled Water Business Points to Consider Resources Knowledge Is Power Featured Video
This article provides a comprehensive guide to starting and running a bottled water business.
It includes a detailed step-by-step roadmap and valuable resources for the startup phase and ongoing operations. Save this page for future reference, and feel free to share it with others interested in the industry.
Let’s get started with the steps.
Below are the steps to starting a bottled water business.
Each step is linked to a specific section, allowing you to jump to your desired section or scroll to follow the steps in order.
Is Starting a Bottled Water Business the Right Step for You?
Discovering Your Passion
A key factor holds the key to success in the business world – and that factor is you! Your drive and passion are pivotal in determining the path to triumph.
Passion: The Fuel for Success
Passion is an accessory and a vital ingredient in your entrepreneurial journey.
Challenges become opportunities for creative solutions when your heart is passionate about your bottled water business.
Conversely, lacking passion may lead you to seek an escape route rather than face obstacles head-on.
Unveiling Your Entrepreneurial Zeal
How fervent is your desire to own and manage a business? Let’s explore an intriguing perspective:
Imagine a life free from restrictions and abundant financial resources that can sustain you indefinitely. In this scenario, your choices are boundless, unaffected by monetary considerations.
The Decisive Question
Would you choose to venture into the bottled water industry in this context? If your answer is a resounding yes, it reveals your passion for this enterprise and signifies that you are on the right path.
Exploring Alternative Paths
However, if your answer leans towards a negative response, it beckons another question: What alternative path captures your preferences and aspirations? Perhaps it’s worth considering pursuing that path instead.
The Heart of the Matter
In conclusion, the essence of success lies in your passion for the business you undertake. Embrace your passion, and let it guide you towards a fulfilling and prosperous bottled water venture.
For More, See How Passion Affects Your Business . Also, see, Considerations Before You Start Your Business to identify key points for a new business owner.
Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running your business.
Understanding the Bottled Water Business
A bottled water business revolves around providing a vital necessity – water. This enterprise involves sourcing, bottling, and distributing water to various customer bases, from grocery stores and convenience stores to offices and direct residential customers.
The daily operations for such a business are multifaceted. They include tasks such as quality assurance of the water, overseeing the bottling process, coordinating logistics for distribution, handling customer inquiries and orders, and performing administrative tasks, among others.
Keys to Success in a Bottled Water Business
Establishing a Loyal Customer Base
Building a solid customer base is essential for the longevity of the business.
This can be achieved through effective marketing strategies, superior products, and exceptional customer service. Additionally, engaging with customers to understand their preferences can help tailor your products to meet their needs.
Effective Staff Management
The smooth operation of a bottled water business largely relies on its staff, from those involved in sourcing and bottling water to those managing logistics and customer service.
Proper staff management includes training, motivation, and a conducive work environment.
Managing Cash Flow
Cash flow management is crucial in running any business, including a bottled water business.
It involves tracking all transactions, ensuring that income covers expenses, planning for future expenses, and maintaining an emergency fund.
Cost Management
Maintaining quality and customer service while minimizing costs is crucial for profitability.
This can be achieved by streamlining operations, investing in efficient equipment, and implementing cost-saving strategies without compromising product quality or customer service.
Adaptability to Change
The business landscape continually evolves with industry trends, business processes, or technology changes. Staying up-to-date on these changes and adapting your business operations is crucial for long-term success.
Revenue Fluctuations
Revenue in a bottled water business can fluctuate due to various factors, such as seasonal changes or market trends.
Proper planning and strategies can help manage these fluctuations.
Competitor Management
Dealing with competitors requires a solid understanding of the market, keeping track of competitor activities, and devising strategies to differentiate your products and services.
Meeting Customer Expectations
Meeting and exceeding customer expectations are integral to a bottled water business.
This involves offering high-quality water, providing excellent customer service, and ensuring timely delivery.
Regular customer feedback is an excellent way to understand their expectations and make necessary improvements.
With this customer-focused approach, your bottled water business can thrive and become a trusted provider in the industry.
Types of Bottled Water Business Setups and Their Business Models
Local Bottling Operations
These businesses source water locally, treat and bottle it, then distribute it within a particular region or community.
This model often operates on a small scale, emphasizing the local origin and quality of the water. The focus may be on home and office delivery, local retailers, or both.
Large-Scale Bottling Operations
These companies function on a national or even international scale. They source, treat, and bottle water in large quantities, distributing their products across wide geographic areas.
Products are typically sold through various retail outlets, including supermarkets, convenience stores, and online marketplaces.
Private Label Bottling
In this model, a company bottles water to be branded and sold by another business.
Large retailers or brands often use this setup to offer branded bottled water without investing in sourcing and bottling infrastructure.
Office and Home Delivery Services
These businesses specialize in delivering bottled water directly to homes and offices.
They may either bottle their water or distribute products from other manufacturers. This model emphasizes convenience and regular, recurring sales to a set customer base.
Franchise Bottled Water Business
This involves buying into an established bottled water brand and operating a branch of the business under the brand’s umbrella.
In this case, the franchisor sets the business model, often including established supply chains, brand recognition, and ongoing franchisor support.
Custom Bottle Design and Packaging
These businesses focus less on the water and more on unique bottle design and packaging.
This could include personalized labels for corporate events, weddings, or promotional activities. In this model, the emphasis is on added value through design and customization rather than the water product itself.
In conclusion, identifying a profitable and high-demand niche for your bottled water business from the beginning is essential.
Carefully consider each business model and choose one that aligns with your resources, interests, and the market’s needs.
Switching your model later can be more challenging so a thoughtful initial decision can set the stage for long-term success.
Unique Branding
Create a unique and memorable brand to distinguish your bottled water business from competitors.
This could involve an eye-catching logo, a strong brand story, or a distinct voice that resonates with your target market.
High-Quality Product
By prioritizing the quality of your water — through rigorous purification processes, stringent quality checks, and certified sourcing — you can gain a reputation for excellence that sets you apart.
Exceptional Customer Service
Providing outstanding customer service can make your business stand out. This can include prompt deliveries, professional responses to inquiries and complaints, and friendly service at all touchpoints.
Sustainable Practices
With increasing awareness of environmental issues, adopting sustainable practices can differentiate your brand. This can range from eco-friendly packaging to responsible water-sourcing practices.
Community Involvement
Involvement in local community events, charitable causes, or sponsorships can help your bottled water business gain visibility and a positive reputation.
Complementary Products
Offering additional products that complement bottled water can enhance your business’s appeal. This could include healthy snacks, reusable water bottles, water dispensers, or water purification systems.
Subscription Service
Consider a subscription model where customers receive regular water deliveries. This offers convenience for the customer and predictable recurring revenue for your business.
Custom Labeling
Provide custom labeling services for businesses or events. This allows companies to have their logo on bottles or individuals to personalize bottles for special occasions.
Bulk Discount Offers
Discounts for large purchases can attract larger clients, such as corporate offices or event organizers, to choose your services.
e.) Questions for Your Bottled Water Business
Bottled Water Business Model
Have you decided on a specific business model for your bottled water operation? Are you considering local bottling, large-scale operations, private-label bottling, or a franchise?
Workforce Management
Do you plan to take on all business responsibilities, or do you intend to hire employees? What roles will be needed if hiring, and how will you find suitable candidates?
Management Considerations
Will you personally oversee your bottled water business, or do you plan to employ a manager to handle daily operations?
Partnerships and Investments
Are you considering bringing in business partners or seeking external investors? If so, how will you identify and approach potential collaborators?
Business Location
Do you intend to run your bottled water operation from a home office, or do you plan to operate from a commercial location? If choosing a commercial location, what factors will guide your site selection?
Operating Format
Are you considering a physical setup, like a brick-and-mortar store, or do you plan to operate mainly online? If considering an online operation, how will you handle logistics and distribution?
Future Growth
Have you given thought to your business growth strategy? What are your long-term goals for your bottled water business? How do you plan to scale up operations when the time is right?
Regulatory Compliance
Have you researched the regulations and compliance requirements for running a bottled water business in your region? How will you ensure ongoing compliance?
Market Analysis
Do you understand your target market and your competition? Have you done market research to guide your branding, marketing, and pricing decisions?
Financial Planning
Have you drawn up a detailed business plan, including financial projections? Do you clearly understand your startup costs, operating costs, and potential revenue?
Answering these questions will prepare you for the many facets of running a bottled water business and set you on the path to success.
The Benefits of Running a Bottled Water Business
Independence
Owning a bottled water business allows you to be your own boss. You can call the shots and run the business according to your vision.
Creative Freedom
You can be innovative with your products, branding, marketing, and overall business approach. This creative freedom can make the business more fulfilling.
Potential for High Revenue
Given the universal demand for clean water, a successful bottled water business can generate substantial income.
Flexible Work Hours
Once the business is successful and you have a competent team, you may have the flexibility to set your work hours.
Control Over Working Environment
As a business owner, you can create a working environment that aligns with your values and enhances productivity.
Contribution to Health and Wellbeing
The bottled water business contributes to the health and well-being of customers by providing clean, safe water, adding a sense of purpose to your enterprise.
The Challenges of Running a Bottled Water Business
Responsibility for Problems
As the owner, you shoulder the responsibility for any problems or challenges that arise in the business.
Irregular Income
You may not have a steady income, particularly during the start-up phase or during periods of fluctuation in the business.
Challenging Start-Up Phase
Getting the business off the ground can be difficult, with many simultaneous decisions and tasks.
Customer Acquisition and Retention
Gaining and keeping customers in a competitive market can be a significant challenge.
Extra Working Hours
You may have to work long hours during certain stages, which could affect your work-life balance.
Pressure to Succeed
Running a business comes with the pressure to succeed, which can be stressful.
Significant Initial Investment
Starting a bottled water business often requires a substantial financial investment for equipment, premises, and other startup costs.
Constant Change
In business, change is inevitable, whether it’s market trends, customer preferences, or industry regulations. Adapting to these changes can be challenging.
Business Risks
Running a bottled water business, like any business, carries risks. These could range from financial losses and regulatory issues to market competition and unforeseen circumstances like natural disasters.
Quality Control Challenges
Ensuring consistent water quality can be challenging but is essential for the reputation and success of the business.
In conclusion, owning and running a bottled water business has rewards and challenges.
Careful planning, diligent management, and a willingness to adapt can help you navigate these factors for a successful enterprise.
For more, see Pros and Cons of Starting a Small Business.
Bottled Water Business Research
Laying the Foundation: Informed Decision-Making
Before diving into any business endeavor, conducting comprehensive research is paramount.
Equipping yourself with quality information is vital to understanding the industry’s difficulties, lest you find yourself caught off guard.
Seeking Wisdom: Learning from the Experts
One valuable avenue to acquire the best insights is tapping into the knowledge of seasoned individuals in the bottled water business.
These industry experts are qualified to provide reliable information, becoming a valuable resource for your research.
Unveiling Priceless Wisdom: An Opportunity for Growth
Interacting with experienced professionals offers an invaluable opportunity to glean insights and wisdom from their years of knowledge and expertise.
The time spent with them can prove invaluable in shaping your understanding and decision-making process.
Unlocking the Path: A Guide to Reaching Out
To assist you in connecting with the right individuals and approaching them respectfully and non-threateningly, I have crafted an article brimming with ideas and strategies.
While the complete steps extend beyond this post, I strongly urge you to read the article by following the link below.
It will provide you with a comprehensive understanding of what lies ahead in your bottled water business journey.
See An Inside Look Into the Business You Want To Start for all the details.
Understanding your target audience in the bottled water business is crucial for reaping various benefits.
Knowing your target market allows you to tailor your offers to appeal to customers’ preferences, ensuring they find your products and services enticing.
Moreover, understanding your audience allows you to provide offerings that align with their interests, further enhancing customer satisfaction.
Target Market Ideas:
For more, see How To Understand Your Target Market.
Startup Costs:
Accurate Estimation for a Smooth Launch
To ensure a smooth and successful launch of your bottled water business, it is essential to gain an overview of the startup costs involved.
Accurate estimation plays a pivotal role, as underestimating can lead to financial shortfalls that hinder your business opening, while overestimating can make your venture appear risky.
The size of your operation, chosen location, employment decisions, equipment purchases, and rental agreements all impact your costs.
For more detailed information, refer to my article on Estimating Startup Costs.
Comprehensive List and Research
Compile a comprehensive list of necessary items for your startup. Then, diligently research the prices associated with each item.
Be thorough in your investigation, as you may encounter additional expenses during your research phase.
This comprehensive estimation will ensure a more accurate assessment of your startup costs.
Sales and Profit:
Key Factors for Success
The success of your bottled water business relies on several factors when it comes to sales and profitability.
These factors include the popularity and demand for your products and services and the effectiveness of your marketing strategies in reaching the right target audience.
Beyond Sales: Consideration of Expenses
When assessing profitability, it is essential to consider the profit per sale and various expenses that impact your bottom line.
This includes rent, payroll, and other overhead costs associated with running your business.
Achieving Financial Success
To achieve financial success, your monthly sales must cover your expenses and provide sufficient profit to sustain your business.
Additionally, it is important to ensure that your sales generate enough revenue to cover your monthly expenses and allow for salary payments, ensuring the long-term viability of your bottled water business.
For More, See Estimating Profitability and Revenue
Sample Financial Lists As a Starting Point
Sample Financial Lists for Your Bottled Water Business
Below are three sample financial lists designed to give you a general idea of the expenses and revenues you might expect when starting and running a bottled water production business in the USA.
Sample Startup Costs for a Bottled Water Business
Total Estimated Startup Costs: $84,500
Sample Monthly Expenses for a Bottled Water Business
Total Estimated Monthly Expenses: $11,000
Sample Sales and Profit Breakdown
Assuming a sales price of $1 per bottle ( premium branded ), selling 20,000 bottles per month:
Estimated Monthly Profit: $9,000
Remember, these figures are fictional examples that provide a broad sense of the financial aspects of running a bottled water business.
Adjusting these costs and revenue projections can significantly affect the success of your business.
A small shift in profit per bottle sold can make a huge difference when dealing with high-volume sales.
Also, remember that many new businesses take time to become profitable as they build a customer base, establish a reputation, and optimize operations.
Your specific costs, expenses, and profits will vary based on numerous factors.
It’s essential to do thorough research and consider seeking professional advice when calculating your business’s startup costs, ongoing expenses, and potential revenues and profits.
The Significance of Location for a Bottled Water Business
Choosing the right location for your bottled water business can determine its success or failure.
Demand and Competition Considerations
Operating in an area without product demand will inevitably lead to failure even before your business takes off. Conversely, setting up in an area saturated with competition can make it challenging to gain market share.
Balancing Demand, Competition, and Affordability
Ideally, you should aim for a location that strikes a balance between having sufficient demand for your bottled water products and facing an acceptable level of competition.
Additionally, affordability is a crucial aspect to consider. While operating in a highly populated area can offer more exposure, you must ensure that the extra expenses associated with it do not outweigh the potential profitability.
Exploring Different Options
Consider operating your business from home, especially if your model is primarily online or does not require extensive personal customer interaction.
Starting from home can be a cost-effective option initially, and as your business expands, you can evaluate the need to transition to a commercial location.
Thorough Research and Careful Evaluation
Choosing the right location is critical to achieving success for your bottled water business.
Conduct thorough research, analyze the local market, and evaluate demand, competition, and affordability.
It is essential to approach this decision carefully and gather all the necessary information to make an informed choice.
For more about business locations, see Choosing The Best Location for Your Business.
A mission statement is a valuable tool for identifying the core purpose of your bottled water business.
It serves as a guiding principle to keep you focused and reminds you of the main benefit you aim to provide to your customers and community.
Examples of Mission Statements for a Bottled Water Business:
Note : These are fictional examples meant to illustrate the essence of mission statements for a bottled water business.
A real mission statement should be crafted to align with your business’s specific values and goals.
For more, see, How To Create a Mission Statement
A Unique Selling Proposition (USP) plays a crucial role in identifying and creating a distinct offering that sets your bottled water business apart from competitors.
Examples of Unique Selling Propositions for a Bottled Water Business:
Note: These are fictional examples intended to demonstrate the concept of a Unique Selling Proposition for a bottled water business.
Developing a USP that aligns with your specific business goals, target market, and competitive landscape is important.
When selecting a name for your bottled water business, it’s crucial to aim for something captivating and fitting.
Opt for an easily pronounceable and memorable name, as it will likely remain with your company for the long term. Additionally, securing a matching domain name for your online presence is essential.
Conduct thorough research to ensure another business does not already register the desired name.
Here are 30 creative ideas to inspire your original bottled water business name:
Remember, these are just ideas to spark your creativity and assist in developing an original business name for your bottled water venture.
Ensure the chosen name aligns with your brand identity and resonates with your target audience.
Conduct proper research and consider consulting professionals to ensure legal availability and trademark considerations for your business name.
For more, see the following articles:
Ensuring Your Bottled Water Business is Legal
Operating a legal business is essential for compliance, protection, and overall success. Here are key points to consider:
Seek Professional Guidance: Consulting with legal and tax professionals is crucial to ensure compliance with laws and regulations. They can also assist in determining the best business setup for tax benefits and liability protection.
Common Types of Registrations: When starting a bottled water business, you may need to consider various registrations, including:
Permits and Licenses: As a bottled water business, you may need to obtain specific permits and licenses to ensure compliance and consumer safety. Some examples include:
Compliance with Regulations: Ensure adherence to industry-specific regulations such as the FDA’s Current Good Manufacturing Practices (cGMP) for bottled water production and labeling requirements.
Remember, laws and requirements may vary based on location, so consulting with professionals familiar with the bottled water industry and local regulations is crucial.
Complying with legal obligations helps protect your business, ensures consumer trust, and positions you for long-term success.
Registration:
Business Structures:
Corporate Identity for a Bottled Water Business
Establishing Your Brand’s Visual Presence
A Corporate Identity (Corporate ID) plays a vital role in representing your bottled water business.
It encompasses elements that establish your brand’s visual presence, including your logo, business cards, website, business sign, stationery, and promotional items.
Consistency and Professionalism
Maintaining a consistent and professional design across these components is essential to leave a lasting impression on new and existing customers.
A strong and cohesive corporate identity conveys professionalism and helps build brand recognition and trust.
Logo Design: Capturing Your Brand Essence
As a key component of your corporate identity, your logo should capture the essence of your bottled water business.
It should reflect your brand’s values, evoke a sense of quality and purity, and resonate with your target audience.
Branded Materials: Showcasing Your Unique Qualities
From business cards to promotional items, each element of your corporate identity should showcase your brand’s unique qualities.
Whether it’s the design of your water bottle labels, the layout of your website, or the appearance of your business signage, consistency and attention to detail are crucial.
Impressing Customers: A Commitment to Excellence
A well-designed corporate identity demonstrates your commitment to excellence and professionalism. It helps create a positive and memorable impression on customers, fostering brand loyalty and encouraging repeat business.
Remember, a strong corporate identity is an investment in building your brand’s reputation and standing out in the competitive bottled water industry.
Seek professional design services or consult branding experts to ensure your corporate identity aligns with your brand values and effectively represents your business.
You can see our page for an overview of your logo , business cards , website , and business sign , or see A Complete Introduction to Corporate Identity Packages.
The Importance of a Business Plan for a Bottled Water Business
A business plan is a critical document for a bottled water business. It serves multiple purposes, such as acquiring funding and attracting investors.
Moreover, it acts as a roadmap to keep you on track during the startup phase and while your business is in full operation.
Crafting a Vision for Success
Writing a business plan requires time and effort as it involves creating a vision of what your bottled water business will be like once it’s operational.
Careful planning and thoughtful consideration of details are necessary to articulate your vision effectively.
Clarity and Guidance
Completing a well-crafted business plan is worthwhile because it clearly explains what is needed to start and operate your business successfully.
It serves as a guide to help you navigate the challenges and make informed decisions.
Choosing the Right Approach
When creating your business plan, you have various options available. You can start from scratch, enlist the services of a professional, utilize a template, or leverage business plan software.
Regardless of the chosen approach, active participation is essential to ensure your plan is distinctive and effectively communicates the nature of your bottled water business and management strategies.
Adapting and Optimizing
Recognizing that your business plan can evolve and be optimized as you gain experience and insights is important.
Periodically reviewing the document and making necessary adjustments to reflect changes in your business or operations is advisable.
Remember, a well-crafted and adaptable business plan is a valuable tool that can contribute to the success of your bottled water business.
A Fictitious Business Plan Example for a Bottled Water
PureSprings Bottled Water Business Plan
Executive Summary
PureSprings will offer high-quality, naturally sourced bottled water. Based in a region with abundant natural springs, we are uniquely positioned to cater to the demands of health-conscious consumers.
Company Description
PureSprings is a startup set to operate from a moderate-size bottling plant. We focus on sustainability, drawing water from local springs and packaging it in eco-friendly bottles.
Our target market comprises individuals and businesses seeking quality bottled water. With the continuous growth in the bottled water market, we anticipate steady demand for our products.
Organization and Management
PureSprings’ team will be spearheaded by the founder and CEO. Other team members will include a Production Manager, Marketing and Sales Manager, and an Accounting Manager.
Product Line and Services
Our product line includes natural spring water packaged in various sizes to meet consumer needs. Over time, we may introduce flavored water options.
Marketing and Sales Strategy
We’ll focus on marketing the health and sustainability aspects of our products. Our strategy will involve direct sales and partnerships with local and national retail stores.
Funding Request
We’re seeking an investment of $84,500, projected as the startup cost, to cover equipment purchase, water rights procurement, and initial marketing.
Financial Projections
In the first month, we anticipate selling 20,000 bottles, which gives us monthly revenue of $20,000. With estimated monthly expenses of around $11,000, we project a monthly profit of $9,000.
Exit Strategy
Once PureSprings achieves sustainable growth, we may explore franchising, expansion into new regions, or a potential acquisition by a larger beverage company.
Remember that this is a hypothetical business plan, and the figures are illustrative. Real-world business plans should be based on comprehensive market research and professional financial advice.
For information on creating your business plan, see, How to Write a Business Plan.
Consider selecting a local bank that specializes in serving bottled water business owners.
Opening a dedicated business account clearly separates your business expenses and personal spending.
This separation simplifies expense tracking, facilitates efficient bookkeeping, and provides documentation in the event of a tax audit.
Establishing a professional relationship with your banker is beneficial. They can offer valuable advice and financial services and expedite application processes.
Additionally, explore applying for a merchant account or similar setup to accept credit and debit card payments. This enables convenient payment options for your customers, enhancing their satisfaction and boosting sales.
Remember, choosing a bank that understands the specific needs of your bottled water business can streamline your financial operations and contribute to the overall success of your venture.
Research and compare banking options, seek recommendations from fellow business owners and consider the level of personalized service and relevant financial solutions when making your decision.
For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.
Getting Funding for Your Bottled Water Business
If you need financial support to start and operate your bottled water business, there are various funding options available. Here are some key considerations and tips to help you navigate the process:
Secure funding for your bottled water business requires thorough preparation, a well-crafted business plan, and effective communication of your vision and potential.
Research your options, seek professional advice, and diligently compile the necessary documents to increase your chances of obtaining the funds to launch and grow your business successfully.
See, Getting a Small Business Loan for more.
Software Considerations for Your Bottled Water Business
Selecting the right software is crucial for efficient operations when setting up your bottled water business.
Here are some key points to consider:
1. Research Software Options
Thoroughly research the available software solutions. Implementing a program from scratch is often easier than switching to a new system after your data is already in another program.
2. Demo, Reviews, and Forums
Look for software providers that offer demos or trials. This allows you to evaluate the software’s features and user-friendliness.
Additionally, explore reviews and forums to gather insights from other user’s experiences with the software.
3. Expense Tracking and Financial Document Preparation
Consider software options that track expenses and prepare financial documents for tax filing.
Consulting with your bookkeeper or accountant can provide valuable guidance in choosing the right accounting software that aligns with your business needs.
Software Options to Consider for Your Bottled Water Business:
Remember to evaluate each software option based on its suitability for your business requirements, scalability, user-friendliness, and compatibility with existing systems.
Consider seeking recommendations from industry peers and consulting software providers for customized solutions tailored to your bottled water business.
Software Considerations for a Bottled Water Business.
Check out Google’s latest search results for software packages for a bottled water business.
Insurance Considerations for Your Bottled Water Business
Incidents can occur unexpectedly, making having the right insurance coverage essential before any activities occur at your bottled water business. Here are key considerations to keep in mind:
1. Comprehensive Coverage
Consider insurance policies that provide comprehensive coverage to protect various aspects of your business, including:
2. Professional Liability Insurance
Consider obtaining professional liability insurance, also known as errors and omissions insurance. This coverage protects you against potential lawsuits resulting from errors, negligence, or professional misconduct.
3. Home-based Business Insurance
If you plan to operate or manage your bottled water business from your home, inform your home insurance agent. Operating a business from home may impact your existing home insurance policy, and you may need additional coverage.
4. Consult an Insurance Broker
Working with a competent insurance broker is advisable to navigate the complexities of insurance and ensure you have sufficient coverage.
They can guide you in understanding your risks, selecting appropriate policies, and obtaining competitive rates.
Concerns When Seeking Insurance for a Bottled Water Business:
Remember, securing the right insurance coverage is vital to safeguarding your bottled water business.
Assess your specific risks, consult with insurance professionals, and review policies carefully to ensure comprehensive protection against potential losses.
For more, see What to Know About Business Insurance . You can also browse the latest Google search results for bottled water business insurance .
Selecting Suppliers for Your Bottled Water Business
Developing strong relationships with reliable suppliers is crucial for the success of your bottled water business. Consider the following factors when selecting suppliers:
1. Reliability and Trustworthiness
Choose suppliers who are dependable and trustworthy. They should consistently deliver high-quality products and meet agreed-upon deadlines to ensure smooth operations.
2. Competitive Pricing
Look for suppliers who offer competitive prices. This lets you pass on cost savings to your customers, making your bottled water products more attractive and increasing your profit margin.
3. Stock Availability
Ensure your suppliers can consistently provide the necessary stock to meet the demands of your business. Prompt and reliable deliveries are essential to avoid any production or inventory management disruptions.
4. Respectful and Mutually Beneficial Relationships
Treat your suppliers with respect and fairness. Building a mutually beneficial relationship involves ensuring they also benefit financially.
This can foster long-term partnerships and open communication, leading to improved collaboration and shared success.
Remember, selecting the right suppliers is crucial for maintaining a reliable and efficient supply chain for your bottled water business.
Research and evaluate potential suppliers based on their reputation, product quality, pricing, and ability to meet your requirements.
Strong supplier relationships can contribute to your business’s overall growth and sustainability.
For More See, How To Choose a Supplier.
A bottled water business’s physical setup/layout is crucial for efficient operations. The layout should prioritize functionality and convenience, allowing for smooth workflow and easy access to equipment and storage areas.
Consider factors such as production space, storage capacity, labeling stations, quality control areas, and shipping logistics.
An optimized layout ensures streamlined processes, enhances productivity, and promotes a safe working environment.
Setting up appropriate signage is essential for a bottled water business. In addition to installing a prominent main business sign, it is important to place signs in relevant locations, including parking lots, exits, and special areas.
Well-designed signs play a crucial role in directing people, providing clear instructions, and enhancing the overall professionalism of your operation.
Effective signage helps customers navigate your premises easily and creates a positive impression of your business.
Office Setup:
Managing your bottled water business requires dedicated time in the office. An organized office setup is key to maximizing productivity.
Ensure your office has essential tools, including computers, printers, telephones, filing systems, and comfortable furniture.
Create an efficient workspace that allows for effective communication, easy access to important documents, and a comfortable environment for administrative tasks.
A well-equipped and organized office supports smooth business operations, facilitates efficient decision-making, and enables effective management of your bottled water business.
See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.
Having a website for your bottled water business offers numerous benefits. It is a powerful online presence, allowing customers to easily find and learn about your products and services.
A well-designed website showcases your brand, promotes credibility, and builds trust with potential customers. It provides a platform to showcase product information, pricing, and customer testimonials.
Additionally, a website enables online ordering and delivery options, expanding your customer reach.
It also facilitates effective communication, allowing customers to contact you directly, boosting customer engagement, and driving business growth in the digital landscape.
For more, see How to Build a Website for Your Business .
Building an External Support Team for Your Bottled Water Business
An external support team of professionals is a valuable resource for your bottled water business. These experts provide valuable advice and services without being on your payroll.
While some professionals may already be part of your network, it’s important to recognize their significance and consider expanding your team.
Engaging Professionals for Specific Needs
Depending on your specific needs, you can engage professionals per project, contractual, or hourly. This allows you to access their expertise without the need for full-time employment.
Consider professionals such as an accountant, a lawyer, a financial advisor, a marketing specialist, technical advisors, and consultants.
Building Professional Relationships
Building professional relationships takes time and effort. Continually work on expanding your network and nurturing these connections.
As your business grows, you can benefit from the support and expertise of your trusted external team.
The Benefits of a Strong Support Team
A strong external support team ensures you have access to the necessary expertise and guidance when needed.
These professionals can assist with financial matters, legal compliance, marketing strategies, and technical challenges.
You can confidently make informed decisions and navigate challenges by leveraging your knowledge and skills.
Remember, developing a strong support team is an ongoing process. Regularly assess your business needs and seek professionals who align with your goals and values.
Collaborating with trusted experts contributes to the success and growth of your bottled water business.
For more, see, Building a Team of Professional Advisors for Your Business.
Hiring Employees for Your Bottled Water Business
At the initial stages of operating your bottled water business, you may consider handling all tasks yourself to avoid the expense of hiring employees.
This approach can be manageable and cost-effective, especially during the startup phase.
However, as your business grows, you may find it challenging to handle all aspects of management and operations alone.
Hiring employees can greatly improve productivity and allow you to focus on strategic decision-making.
List of Job Positions for a Growing Bottled Water Business:
The following are job positions or outsourced services you may want to consider as your bottled water business grows and becomes successful:
Remember, as your bottled water business grows, the workload increases and specialized roles become necessary for smooth operations and continued success.
Evaluate your specific business needs and consider hiring employees or outsourcing services to support your expanding operations effectively.
For more, see, How and When to Hire a New Employee.
A List of Equipment and Supplies to Consider for a Bottled Water Business:
Equipment for a Bottled Water Business
This list gives a general idea of the equipment required for a bottled water business, but your specific needs may vary depending on your business model and local regulations.
Always do your research and seek professional advice if necessary.
Attracting Customers for Your Bottled Water Business
In the bottled water industry, customers are vital for the success of your business. Initially, it can be challenging to attract customers as your operation is new and awareness is limited.
Building a good reputation over time will make it easier to attract customers. With experience and a solid reputation, you can leverage your marketing efforts more effectively.
Marketing your bottled water business is an ongoing process that requires continuous investment. Consider it as a means to raise awareness and capture opportunities whenever they arise.
Investing in effective marketing techniques directly impacts your revenue generation. By implementing strategic marketing campaigns, you can reach your target audience, create brand awareness, and drive customer engagement.
Remember, effective marketing is essential to establish your presence in the market and attract customers to your bottled water business.
Continuously refine your marketing strategies, adapt to changing consumer needs, and seize opportunities to promote your products and services.
See our article How To Get Customers Through the Door
Building Business Partnerships for Your Bottled Water Business
Creating partnerships with other businesses can be a valuable strategy to attract new customers to your bottled water business.
Consider approaching the following businesses to explore collaboration opportunities:
When approaching potential partners, emphasize the mutual benefits of collaboration. Consider offering referral fees, co-marketing opportunities, or exclusive promotions to incentivize referrals and strengthen the partnership.
Building strategic partnerships can extend your reach and attract new customers to your bottled water business.
Seek out businesses whose clientele aligns with your target market, and explore creative ways to collaborate and foster mutually beneficial relationships.
Assessing Your Skills for Running a Bottled Water Business
Evaluating your skill set is important to determine if you have the necessary abilities to run a successful bottled water business. Recognizing your strengths and weaknesses allows you to focus on areas that require improvement or consideration for delegation. Remember, if you lack an essential skill, you can learn it or hire someone with expertise in that area.
Essential Skills for a Bottled Water Business Owner:
Remember, as a bottled water business owner, continuously developing and honing these essential skills will contribute to your business’s success and growth.
Seek opportunities for learning and improvement while considering delegating tasks where necessary.
Benefiting from Expert Tips to Enhance Your Skill Set
Exploring expert tips is invaluable for skill improvement, whether an expert or a novice.
You can discover more efficient approaches and gain fresh perspectives as an expert. As a novice, you can gather numerous tips to enhance your skills and expand your knowledge base.
See the latest search results for expert bottled water tips to gain tips and insights.
Valuable Resources for Your Bottled Water Business
In this section, you will find a compilation of resources that provide access to the latest and most relevant information in the bottled water industry.
These resources are beneficial during the startup phase and when your business is fully operational.
By utilizing these resources, you can gain a deeper understanding of the industry, stay updated on industry trends, and access valuable tips for enhancing your business practices.
They serve as a valuable knowledge base for your growth and success in the bottled water industry.
Gaining Insights from Industry Trends and Statistics in the Bottled Water Business
Examining industry trends and statistics offers valuable insights for a bottled water business. It provides a deeper understanding of market dynamics, consumer preferences, and emerging opportunities.
You can make informed decisions, adapt strategies, and position your business for success in a dynamic marketplace by staying informed.
See the latest search results for trends and statistics related to the bottled water industry.
Use a professional American writing style. Use simple words. Add Industry Keywords if Appropriate.
Write a neutral 40-word overview of
Trade associations offer numerous advantages, including staying informed about industry news and accessing networking opportunities. These benefits are particularly evident when associations organize events.
See the search results related to bottled water associations.
Drawing Inspiration from Established Bottled Water Businesses
Examining established bottled water businesses can spark ideas and insights to identify untapped opportunities within the industry.
It allows you to uncover unique offerings or identify areas for improvement in your business that may have been overlooked. Learning from successful businesses helps shape your own strategies and differentiate your brand.
See the latest search results for the top bottled water businesses.
Unveiling Future Opportunities: Researching the Future of the Bottled Water Industry
Researching the future of the bottled water industry offers significant benefits for aspiring business owners.
It allows you to gain insights into emerging trends, consumer demands, and technological advancements, enabling you to make informed decisions and position your business for long-term success.
See the search results for the future of the bottled water industry.
Gaining Price Insights: Researching Industry Prices for Starting a Bottled Water Business
Researching industry prices provides valuable benefits when launching a bottled water business.
It allows you to understand market pricing trends, determine competitive pricing strategies, and ensure your pricing is competitive while maintaining profitability.
This knowledge helps you make informed decisions and set appropriate product pricing.
See the latest bottled water prices.
Considering the Purchase of an Established Bottled Water Business
Exploring the option of buying an existing bottled water business offers both advantages and disadvantages.
The benefits of acquiring an established business include:
However, there are also potential disadvantages to consider:
Even if you don’t find an exact match for a bottled water business for sale, it’s worth exploring similar opportunities within the industry.
Researching available options can provide valuable insights and inform your decision-making process.
Businesses for sale: See the latest results for a bottled water business and others related to this business model.
Considering the Purchase of a Bottled Water Franchise
Exploring the option of buying a bottled water franchise offers both advantages and disadvantages. It’s important to carefully evaluate these factors before starting a business.
Additionally, while exploring franchise opportunities, you may discover related options in the bottled water industry that you hadn’t considered.
Even if you don’t find an exact match for a bottled water business franchise, you can explore franchise opportunities within the same industry using the provided link.
See the latest search results for franchise opportunities related to this industry.
Harnessing the Power of Knowledge for Your Bottled Water Business
Acquiring knowledge is a powerful tool when effectively utilized in your bottled water business. The internet offers a wealth of information about your industry.
Following the links in the following sections, you can access valuable resources to support your research, guide you through the startup phase, and enhance your business operations.
Stay informed, leverage the available information, and empower your journey to success in the bottled water industry.
Insights into the Day-to-Day Life of a Bottled Water Business Owner
Gain valuable tips and insights from industry professionals to understand what to expect in a typical day as a bottled water business owner. This resource provides an overview of the daily responsibilities and operations, offering practical guidance for success in the industry.
See the search results related to a day in the life of bottled water business owners.
Gaining Valuable Insights from Interviews with Bottled Water Industry Business Owners
Take the time to explore this section, where interviews with experienced business owners in the bottled water industry provide essential information and insights. Look into different perspectives to gain a deeper understanding of the industry and valuable insights into what to expect.
See the search results related to interviews of bottled water business owners.
Staying Informed with Publications in the Bottled Water Industry
Publications serve as a valuable resource to stay updated with the latest information about the bottled water business.
Explore these publications to access industry news, trends, insights, and best practices, ensuring you stay informed and ahead of the curve.
See the search results for Bottled Water publications.
Engaging in Bottled Water Forums for Industry Insights
Participating in bottled water forums allows one to join relevant discussions and connect with industry peers.
By actively engaging in these forums, you can foster relationships, gain customer perspectives, and gather valuable insights contributing to your business understanding and growth.
See the latest search results related to Bottled Water forums.
Enhancing Skills and Industry Knowledge through Bottled Water Production Courses
Enroll in courses related to bottled water production to enhance your skillset and stay updated with industry advancements.
These courses offer valuable learning opportunities to improve your capabilities and remain knowledgeable and current in the industry.
See the latest courses related to bottled water production and our management articles to provide insights and tips on managing Your business.
Gaining Insights and Industry Updates through Bottled Water Blogs
Subscribing to bottled water blogs offers a valuable source of ideas and industry updates.
By subscribing to multiple blogs and curating the ones that provide value, you create a collection of resources that deliver a constant flow of relevant information to support your business endeavors.
Look at the latest search results for bottled water production blogs to follow.
Staying Current with Bottled Water Industry News
Stay updated with the latest bottled water industry events by following industry news.
Set up alerts to receive notifications whenever new developments are covered by the media, ensuring you stay informed and well-informed.
Bottled Water News
Gaining Valuable Tips and Insights from Bottled Water Industry Videos
Explore videos about the bottled water industry to access helpful tips and insights.
Additionally, take advantage of related videos suggested by YouTube, as they often cover topics you may not have previously considered, expanding your knowledge and understanding.
See the links to YouTube Videos Below.
Starting a Water Refilling Station Business
For More Business Ideas, See our Collection of Business Ideas.
Starting a bottled water company can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful bottled water company.
Importantly, a critical step in starting a bottled water company is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .
Download our Ultimate Business Plan Template here
The first step to starting a bottled water company is to choose your business’ name.
This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own bottled water business:
One of the most important steps in starting a water company is to develop your bottled water business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise money for your business.
Your business plan should include the following sections:
3. choose the legal structure for your bottled water company.
Next you need to choose a legal structure for your bottled water company and register it and your business name with the Secretary of State in each state where you operate your business.
Below are the five most common legal structures:
A sole proprietorship is a business entity in which the owner of the bottled water company and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.
A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to open a bottled water company together. The partners share in the profits and losses of the business.
The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.
A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a bottled water company include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.
A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a bottled water company is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.
An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.
Once you register your bottled water company, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.
In developing your bottled water company business plan , you might have determined that you need to raise funding to launch your business.
If so, the main sources of funding for a bottled water company to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a bottled water company that they believe has high potential for growth.
There are a few things to consider when looking for a location for your bottled water company. Firstly, you’ll need to find a production and storage space that is big enough to store all of your bottles and equipment. If you’re bottling spring water, you’ll also want to find a location that has easy access to a spring. For most other water types, you will need enough land to drill a well, unless you plan to enhance public tap water. Additionally, you’ll want to choose a space that is close to a transportation hub, so you can easily distribute bottled water.
Once you’ve found the perfect location for your bottled water company, there are a few things to consider when designing your space. You will need a substantial amount of room for the machinery involved in bottling water. It’s also a good idea to include a room dedicated to shipping and receiving.
Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).
Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.
Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.
It is important to establish a bank account in your bottled water company’s name. This process is fairly simple and involves the following steps:
You should get a business credit card for your bottled water company to help you separate personal and business expenses.
You can either apply for a business credit card through your bank or apply for one through a credit card company.
When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.
Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.
The licenses and permits you need to launch a bottled water company will vary depending on your location. However, some common licenses and permits include a business license, a license from the FDA, and a permit from your state health department. Make sure to research the specific licenses and permits required for your business, and contact your local government agency for more information.
The type of insurance you need to operate a bottled water company will vary depending on the state in which you reside.
Types of business insurance policies that you should consider for your bottled water company include:
Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs.
To launch a bottled water company, you will need:
Marketing materials will be required to attract and retain customers to your bottled water company.
The key marketing materials you will need are as follows:
The software you need to run a bottled water company is:
You are now ready to open your bottled water company. If you followed the steps above, you should be in a great position to build a successful bottled water business. Below are answers to frequently asked questions that might further help you with how to start a spring water business.
Don’t you wish there was a faster, easier way to finish your bottled water company business plan?
With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
Where can i download a bottled water business plan pdf.
You can download our Bottled Water business plan PDF here. This is a business plan template you can use in PDF format.
Starting a bottled water company is not hard but it does take some effort and planning. The most important part is making sure you have a good product that people will want to buy.
There are a few ways that you can open a water bottling plant with no experience. You can start by researching the bottled water industry and learning about the different types of water that are available, the production process, and the marketing and distribution channels that are used in the industry. You can also research the different ways that you can get your bottled water into stores and learn about similar companies to find out what works best in your area. By getting a few years of experience under your belt before starting a bottled water company, you will be able to avoid making some common mistakes during this time in order to save money.
The most profitable bottled water company is the one that can provide the best quality of water at a low price. At present, natural spring water is the most popular and profitable type of bottled water.
The cost of starting a bottled water company can range from $500,000 to $1.5 million, depending on the size and type of company you want to start. Some costs involved in this business are facility cost, label design and purchase, water testing, water treatment machines , marketing materials, transportation costs of the product to distributors or retailers.
The ongoing expenses for a bottled water company typically include the cost of bottles, labels, labor, and shipping. Further, the cost of maintenance on your water treatment machines can be high. The cost of warehousing or transportation may also be incorporated into the ongoing expenses calculation.
A water bottling company makes money by charging a premium for their product. The cost of water is often lower than the cost of producing and delivering the water, so companies can make a profit by charging more for bottled water than it costs to produce. Additionally, bottled water businesses can also sell advertising space on their bottles, which brings in additional revenue.
Yes, bottled water businesses are profitable, but the profit margins vary depending on the company. The main benefit of owning a bottled water company is that the product is not perishable, so it can be stored and sold for a higher price than other types of drinks. People are increasingly choosing to drink water from bottles over tap water. This is due in part to the perception that bottled water is healthy drinking water , but also because of the many different flavors and brands of bottled water available.
Bottled water companies fail because of the high price of the product and the environmental concerns associated with it. Some bottled water plants also fail because they are unable to convince the public that their product is worth the price.
Starting a water refilling station can be a great way to make a substantial income. But, it can also be a daunting prospect if you're not prepared. With the right planning, however, you can create a successful business that serves your customers' needs and helps your business goals become a reality! The #1 Water Refilling Station Business Plan Template & Guidebook is the perfect resource to help you get started, with comprehensive instructions on how to develop a comprehensive plan for your business. With step-by-step guidance and tools, this guidebook will give you the resources you need to find success in the water refilling station industry.
Get worry-free services and support to launch your business starting at $0 plus state fees.
1. describe the purpose of your water refilling station business..
The first step to writing your business plan is to describe the purpose of your water refilling station business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.
It also helps to include a vision statement so that readers can understand what type of company you want to build.
Here is an example of a purpose mission statement for a water refilling station business:
The mission of [name of business] is to provide the highest-quality water refilling services to our valued customers through ethical and innovative practices, utilizing the finest-grade resources, and striving for environmental sustainability in everything we do.
The next step is to outline your products and services for your water refilling station business.
When you think about the products and services that you offer, it's helpful to ask yourself the following questions:
You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.
If you don't have a marketing plan for your water refilling station business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals.
A good marketing plan for your water refilling station business includes the following elements:
Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations.
In it, you should list:
The second part of your water refilling station business plan is to develop a management and organization section.
This section will cover all of the following:
This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.
Typically, expenses for your business can be broken into a few basic categories:
Startup Costs
Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a water refilling station business varies based on many different variables, but below are a few different types of startup costs for a water refilling station business.
Running & Operating Costs
Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.
Marketing & Sales Expenses
You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your water refilling station business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.
A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your water refilling station business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses.
Here are some steps you can follow to devise a financial plan for your water refilling station business plan:
Why do you need a business plan for a water refilling station business.
A business plan for a water refilling station business is needed to provide an outline of the goals and objectives of the business. It also provides a detailed review of the financial projections, operational strategies, competitive landscape, target market, and potential risks associated with the business. A well-constructed business plan helps guide the growth of the business and enables entrepreneurs to secure necessary financing or investments.
It is important to seek help from experts, such as a business consultant, an accountant, or a lawyer, who can provide advice and guidance on setting up a business and writing a business plan. Additionally, it might also be helpful to speak to experienced entrepreneurs in the industry to learn about any potential pitfalls associated with water refilling stations.
Writing a business plan for a water refilling station requires research and analysis. It is best to consult a professional business consultant who has experience in the industry and knowledge of the financial and operational aspects of running a business. They can help create an effective and comprehensive plan that includes market analysis, financial projections, operational processes, marketing plans, and other key components to ensure success.
We're newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.
Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.
From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.
Thinking of starting a water company? You're in the right place! ClickUp's Business Plan Template for Water Companies is here to guide you through every step of the process, from defining your mission to projecting your financials.
With this template, you'll be able to:
Don't navigate the waters of entrepreneurship alone. Dive into our Business Plan Template for Water Companies and make a splash in the industry today!
When water companies and entrepreneurs in the water industry use the Business Plan Template for Water Companies, they can enjoy a range of benefits, including:
ClickUp’s Business Plan Template for Water Companies provides a comprehensive framework to help water companies and entrepreneurs in the water industry create a strong business plan. Here are the main elements of this template:
If you're in the water industry and need to create a business plan, look no further than the Business Plan Template for Water Companies in ClickUp. Follow these five steps to get started:
Start by clearly defining your business concept and goals. What is the unique selling proposition of your water company? Are you focused on providing clean drinking water to rural areas or offering sustainable water solutions for commercial clients? Clearly define your target market, revenue streams, and growth objectives.
Use the Goals feature in ClickUp to set and track your business goals, ensuring that you stay focused and motivated throughout the process.
To build a successful business plan, you need to have a deep understanding of the market you're entering. Research your target market, including customer demographics, competitors, and industry trends. Identify any gaps or opportunities in the market that your water company can capitalize on.
Use the Table view in ClickUp to organize and analyze your market research data, ensuring that you have a comprehensive understanding of the industry landscape.
A strong marketing strategy is essential for attracting customers and growing your water company. Determine the best channels to reach your target audience, whether it's through digital marketing, partnerships with local organizations, or attending industry conferences. Outline your pricing strategy, promotional activities, and customer acquisition plan.
Use the Board view in ClickUp to visually plan and manage your marketing strategy, ensuring that you have a clear overview of all your marketing initiatives.
A solid financial plan is crucial for the success of your water company. Estimate your startup costs, monthly expenses, and projected revenue. Consider factors such as equipment and infrastructure costs, employee salaries, and ongoing operational expenses. Determine how you will fund your business and create realistic financial projections for the next few years.
Use the Gantt chart in ClickUp to create a timeline for your financial plan, outlining key milestones and financial goals that you want to achieve.
Once your business plan is in place, it's important to continuously monitor and adjust your strategies as needed. Regularly review your financial performance, marketing efforts, and customer feedback to identify areas of improvement and make necessary adjustments. Stay agile and adaptable to market changes and industry trends to ensure the long-term success of your water company.
Use the Dashboards feature in ClickUp to track key performance indicators (KPIs) and get a holistic view of your business's progress, allowing you to make data-driven decisions and optimize your strategies accordingly.
Water companies and entrepreneurs in the water industry can use the ClickUp Business Plan Template to streamline the process of creating a comprehensive business plan that covers all aspects of their operations.
First, hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you'd like this template applied.
Next, invite relevant members or guests to your Workspace to start collaborating.
Now you can take advantage of the full potential of this template to create a solid business plan:
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BREAKING NEWS
74-year-old man reported missing in rich creek, traveling over labor day weekend have a back-up plan for cancellations and delays, and be patient.
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FILE - Vehicles move slowly in south-bound lanes, left, of Interstate Route 93, in Boston, on July 3, 2024. (AP Photo/Steven Senne, File)
Many children have gone back to school in the U.S., and the days are getting shorter, but there is still one more excuse to use the swimsuits and beach towels before packing them up: Labor Day .
Airports, highways, beaches and theme parks are expected to be packed for the long holiday weekend as a lot Americans mark the unofficial end of summer the same way they celebrated the season’s unofficial start: by traveling .
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The Transportation Security Administration anticipates screening more than 17 million people between Thursday and next Wednesday — a record for the Labor Day period.
AAA says bookings for domestic travel are running 9% higher than last year for the holiday weekend, while international trips are down 4%.
American Airlines plans to have its largest Labor Day weekend operation ever and expects a 14% increase in passengers compared to last year.
If you are traveling to get a last blast of summer, here is a rundown of what you need to know.
Why Labor Day?
“Not everyone travels for Labor Day, not compared to July 4th or Thanksgiving — those are the most popular ones," says Aixa Diaz, a spokesperson for AAA. “But certainly Labor Day offers people a way to get away for a final weekend of the summer. You've got people who are either taking the three-day weekend or perhaps taking off the whole week before Labor Day.”
What are prices like?
Motorists are getting a break on gasoline compared with last year. The nationwide average was recently $3.44 per gallon, compared to $3.86 a year ago, according to AAA.
For electric vehicles, the average price for a kilowatt of power at an L2 commercial charging station is about 34 cents. The average is under 25 cents in Kansas and Missouri but tops 40 cents in several states, including New Hampshire, Tennessee and Kentucky. Hawaii is the costliest, at 56 cents.
Average airfares in July were down 7.1% from June and 2.8% from July 2023, according to the government's consumer price index. The trend appears to be accelerating as the peak summer-vacation season comes to an end.
“Now we're falling into that traditional fall season when demand slumps, and you’re also seeing that in airfares,” said Steve Hafner , CEO of the travel metasearch site Kayak. “Airfares are down from the summer about 26% already, and they’re down even from the previous fall, about 4%.”
When is the best time to hit the road?
If you plan to start your drive on the Thursday or Friday before Labor Day, you will be sharing the road with commuters. You might want to leave before morning rush hour or even in the evening to avoid jams.
Transportation-data provider INRIX says the worst time to travel by car on Thursday will be between 1 p.m. and 7:30 p.m., and on Friday between 2 p.m. and 6 p.m. That flips on Saturday, when you'll want to avoid driving between 8 a.m. and 11 a.m.
For the return trip, pretty much all day Monday — from 11 a.m. to 8 p.m. — will be a slog, according to INRIX.
And watch out for risky drivers. New data from Arity, part of insurance giant Allstate , indicates that speeding over 80 mph is up 83% and “very high speeding” — faster than 100 mph — is up more than 50%.
In a surprising twist, however, Arity says distracted driving has dropped on the last three Labor Days.
When will airports be busiest?
Friday, according to the TSA. The agency expects to screen 2.86 million people that day. While an impressive number, it would not even rank in the top 15 days in TSA's history. The single-day record of 3.01 million was set on July 7, the Sunday after Independence Day.
TSA says it has enough screeners to keep the time it takes to get through regular lines to 30 minutes or less and to no more than 10 minutes for PreCheck lines.
American Airlines says Thursday and Friday will be its busiest days, with 6,400 flights per day, followed by Labor Day itself, when the carrier has 6,300 scheduled flights.
What should I do if my flight is delayed or canceled?
First, check your itinerary before leaving for the airport. It’s better to be stuck at home than stranded at the airport.
If your flight is canceled, the airline might automatically rebook you. That might not be the best option.
“Get on the phone (to the airline's help center), get in front of an agent, reach out to the airline via social media if you have to, but find out what the other options are,” says Julian Kheel, the founder and CEO of Points Path, a browser extension that lets users compare fares with deals available using frequent-flyer points. “You can almost always find another option that may work better than the one offered by the airline.”
Kheel said agents at the airport have more leeway to help, but they might be inundated if there are many canceled flights. DIY rebooking on the airline website or app might be faster, he said.
Phone tip: Some experts say if the airline has international help numbers, call one of those to get through more quickly than on the U.S. line.
What about refunds and reimbursement?
Airlines are required to provide refunds — including for extra fees paid — to passengers whose flights are canceled for any reason. However, they are not required to pay cash compensation, and no major U.S. airlines do. Only Alaska, Southwest and JetBlue even promise travel vouchers if the cancellation is their fault.
If you’re stuck overnight, ask the airline about covering the costs of a hotel, meals and ground transportation. All major U.S. airlines except Frontier promise to help with all three for “controllable” disruptions, according to the Transportation Department’s airline-policy dashboard . However, those commitments don't apply to cancellations caused by weather.
Keep receipts for all out-of-pocket expenses in case you can file a claim later.
A few final tips
— Leave early. Everything will take longer than you expect, including getting through airport security. If you plan to park at the airport, make sure there will be spaces available when you arrive — many airports now post that information online.
— Watch the weather. Even if skies are clear at home, there could be storms at your flight's destination or along your road route. Have a backup route.
— Be nice. Flight cancellations and bumper-to-bumper traffic are frustrating, but you won't be the only one who is stuck. Customer-service agents are busy during peak travel periods, so it's important to be patient and respectful while they try to help you.
Koenig reported from Dallas. Business Writer Wyatte Grantham-Philips in New York and video journalist Rick Gentilo in Washington contributed to this report.
Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
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Central Coast Council will be carrying out essential water network upgrades in the Avoca Lagoon area on Thursday 29 August 2024. The planned water outage will commence at approximately 5:00 AM, with water service expected to be restored by early evening if the works proceed as scheduled.
Residents are advised to collect enough water to meet their consumption and hygiene needs before the interruption begins. Water can be stored in jugs, buckets, and bathtubs. Toilets can be flushed by tipping water from a bucket into the bowl during this time.
IT IS IMPORTANT THAT ALL INTERNAL AND EXTERNAL TAPS ARE CLOSED DURING THE PERIOD OF INTERRUPTION.
After restoration of supply, residents are advised to run the front tap (generally located near the water meter serving your property) until water becomes clear. Internal taps should then be checked for water quality prior to use. These steps are particularly important to carry out before using any hot water services, washing machines, dishwashers or other water using devices.
These upgrades are part of the ongoing installation of a new trunk main that travels under Avoca Lagoon. This is the first of two planned water outages, with the second scheduled for later this year.
This work is crucial to improving the water infrastructure in the area, ensuring that the local water service is reliable and capable of meeting future demands.
We apologise for the inconvenience this may cause and appreciate your understanding as we work to improve the water infrastructure in your local area.
An alternative water supply will be provided for residents and will be available at Kiana Street North Avoca. Please bring your own bottles and buckets.
ENDS
Curated By : Business Desk
Local News Desk
Last Updated: August 26, 2024, 12:39 IST
Delhi, India
The IRDAI is an autonomous statutory body under the Ministry of Finance.
Insurance regulator IRDAI has asked companies to develop strategies to provide affordable insurance products to achieve the target of insurance for all by 2047. The move is significant as high health insurance premiums are leading many elderly people to opt out of insurance due to cost.
Insurance councils held the ‘Insurance for All’ vision meeting in Mumbai on Friday and Saturday to lay the foundation for the vision of insurance for all by 2047. A key focus was on defining the concept of ‘insurance for all’ and developing mechanisms to measure and monitor progress.
One of the ideas discussed at the meeting was to increase the diversity of providers, who will in turn, offer a wide range of insurance products, thereby increasing competition and reducing prices. Another idea was to expand insurance distribution channels to make it more accessible, especially in underserved areas.
Companies pointed out that using insurtech can streamline operations, reduce administrative costs and improve efficiency. These savings can then be passed on to consumers in the form of lower premiums. Participants said strengthening the government insurance plan is critical to making insurance more affordable.
The IRDAI is an autonomous statutory body under the Ministry of Finance, Government of India, tasked with regulating and licensing the insurance and reinsurance industry in India. It was established by the Insurance Regulatory and Development Authority Act, 1999, an Act of Parliament passed by the Government of India. The authority’s headquarters are in Hyderabad, Telangana, where it moved from Delhi in 2001.
The lRDAI has directed health insurers to develop special policies tailored to the needs of the elderly and set up special channels to address their complaints and claims. With effect from April 1, the IRDAI has removed the age limit for taking out health insurance policies. 65 years was previously the age limit for taking out new health insurance policies.
The IRDAI is a ten-member body comprising the chairman and five full-time and four part-time members appointed by the Government of India.
(Reuters) – The White House on Thursday unveiled a plan to beef up cybersecurity in the nation’s water sector, an extension of its efforts to thwart attacks against critical infrastructure including electricity and natural gas pipeline operators.
Senior administration officials said water facilities use automation and electronic networks that are vulnerable to cyberattacks, which could include producing unsafe water, stopping water flow to consumers, and damaging infrastructure.
The administration’s plan will push for the adoption of new technologies that offer early detection of cyber threats, improve response to such incidents, and provide the sharing of such data with the U.S. government.
Cybersecurity has been a major focus for the Biden administration following a spate of high-profile cyber breaches that crippled American companies and government agencies, including a ransomware incident that disrupted gasoline supplies.
Last year, hackers broke into the computer system of a facility that treats water for about 15,000 people near Tampa, Florida, and sought to add a dangerous level of additive to the water supply.
In July, President Joe Biden signed a national security memorandum to create “performance controls” for cybersecurity in the country’s most critical companies. He warned that if the U.S. ended up in a “real shooting war” with a “major power” it could be the result of a significant cyberattack on the United States, highlighting what Washington sees as a growing threat posed by hackers from Russia, China, Iran and North Korea.
The latest water sector initiative will be carried out in coordination with the U.S. Environmental Protection Agency and the Water Sector Coordinating Council. The EPA will invite water utilities to a pilot program, but participation will be voluntary, the officials said.
Appeals court backs insurer in family intellectual property fight, oregon roofer cited for exposing workers to fall hazards, acting n.j. governor, also a comp attorney, signs bill raising contingency fees, halliburton confirms cyberattack on systems, torrential rains, floods wreak havoc in bangladesh, jetstar hit with class action over failed covid refunds, croatian insurers’ premiums up 13%, ohio pension fund receives $31.6 million to ensure solvency through 2051, new jersey to forgive $100 million in medical debt.
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Writing a bottled water business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and ...
Step 3: Brainstorm a Bottled Water Business Name. Here are some ideas for brainstorming your business name: Short, unique, and catchy names tend to stand out. Names that are easy to say and spell tend to do better. Name should be relevant to your product or service offerings.
The cost for hiring business consultant (including writing business plan) - $2,500. The cost for insurance (general liability, theft, workers' compensation and property casualty) coverage at a total premium - $2,400. The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $50,600.
Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a bottled water production company, your marketing plan should include the following: Product: In the product section, you should reiterate the type of bottled water company that you documented in your Company Analysis.
This is a complete business plan for a packaged water business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the purified water business. Uses of the Mineral Water Business Plan (PDF, Word And Excel) The bottled water business plan can be used for many purposes including:
A bottled water plant is profitable, provided a strategic business plan is in place. The average bottled water profit margin ranges between 25-30% for small and medium-scale water plants. It can be as high as 60% for large bottle production.
1. Use the business plan template for your water purification business. A comprehensive plan is essential for new water purification business owners. This plan should include all aspects of the company, including start-up costs, funding, and day-to-day operations. New business owners also need to be realistic about their goals and expectations.
A bottled water business plan is a strategic document that outlines the objectives, strategies, and operational details of starting and running a bottled water venture. It serves as a roadmap ...
Cost for construction of a standard water refill station (drilling borehole and water treatment channel inclusive) - $100,000. Other start-up expenses including stationery ( $500) and phone and utility deposits ( $2,500 ). Operational cost for the first 3 months (salaries of employees, payments of bills et al) - $50,000.
Water Purification Business Plan Template. Download this free water purification business plan template, with pre-filled examples, to create your own plan. Download Now. Or plan with professional support in LivePlan. Save 50% today.
At $0.0036 per gallon, this comes to $8.87, or $0.444 per cu ft of resin serviced. Sewer. Assuming all the water goes down the sewer with a minimal need for balancing chemicals, at $0.0032 per gallon, this comes to $0.4027 per cu ft of resin serviced. Per cu ft of mixed bed. $1.39 of acid and $1.10 of caustic soda.
A Fictitious Business Plan Example for a Bottled Water. PureSprings Bottled Water Business Plan. Executive Summary. PureSprings will offer high-quality, naturally sourced bottled water. Based in a region with abundant natural springs, we are uniquely positioned to cater to the demands of health-conscious consumers.
2. Draft a water purification business plan. 3. Develop a water purification brand. 4. Formalize your business registration. 5. Acquire necessary licenses and permits for water purification. 6. Open a business bank account and secure funding as needed. 7. Set pricing for water purification services. 8. Acquire water purification equipment and ...
The projected P&L statement for a water distribution company shows how much revenue and profit your business is expected to make in the future. A healthy water distribution company's P&L statement should show: Sales growing at (minimum) or above (better) inflation. Stable (minimum) or expanding (better) profit margins.
The purpose of creating the 2019-2023 Water Utility Business Plan is to help guide River Falls Municipal Utilities (RFMU) toward defining its goals and strategies and identifying steps needed to work toward achieving those goals and strategies. Staff used internal and external cost projections for the business plan to identify future ...
Open for Business. 1. Choose the Name for Your Bottled Water Company. The first step to starting a bottled water company is to choose your business' name. This is a very important choice since your company name is your brand and will last for the lifetime of your business.
Website. 5. Acquire necessary licenses and permits for bottled water. Starting a bottled water business requires adherence to various regulations to ensure product safety and compliance with local, state, and federal laws. Before beginning operations, it is crucial to acquire the necessary licenses and permits.
The #1 Water Refilling Station Business Plan Template & Guidebook is the perfect resource to help you get started, with comprehensive instructions on how to develop a comprehensive plan for your business. With step-by-step guidance and tools, this guidebook will give you the resources you need to find success in the water refilling station ...
The projected P&L statement for a bottled water brand shows how much revenue and profit your business is expected to make in the future. A healthy bottled water brand's P&L statement should show: Sales growing at (minimum) or above (better) inflation. Stable (minimum) or expanding (better) profit margins.
Lastly, address any funding needs in the "ask" section of your executive summary. 2. The presentation of the company. As you build your water treatment plant business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.
BUSINESS PLAN- C2 WATER REFILLING STATION-1 (1).3 - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. The document provides an executive summary and overview of a proposed water refilling station business called Clean and Clear Water Refilling Station. The business will be located in Dahican, City of Mati, Davao Oriental and will provide ...
ClickUp's Business Plan Template for Water Companies is here to guide you through every step of the process, from defining your mission to projecting your financials. With this template, you'll be able to: Clearly outline your strategic objectives and goals. Conduct a comprehensive market analysis to identify your target audience and competitors.
Many children have gone back to school in the U.S., and the days are getting shorter, but there is still one more excuse to use the swimsuits and beach towels before packing them up: Labor Day ...
The planned water outage will commence at approximately 5:00 AM, with water service expected to be restored by early evening if the works proceed as scheduled. Residents are advised to collect enough water to meet their consumption and hygiene needs before the interruption begins. Water can be stored in jugs, buckets, and bathtubs.
Companies pointed out that using insurtech can streamline operations, reduce administrative costs and improve efficiency. These savings can then be passed on to consumers in the form of lower premiums. Participants said strengthening the government insurance plan is critical to making insurance more affordable.
NEW YORK — To address rapid growth and expansion within its Water business, WSP, a leading engineering, environment and professional services firm, continues to advance its approach and employee count to serve this crucial market in the U.S. . In the past year, WSP has increased its Water team in the U.S. by 35 percent, with nearly 330 staff members in offices across the nation.
Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic. The written part of a water purification plant business plan is composed of 7 main sections: The executive summary. The presentation of the company.
After Democratic presidential candidate Kamala Harris outlined a plan to stop price gouging, Target CEO Brian Cornell said there's no room for the tactic.
Business. It Sank in 15 Minutes. How Tragedy Struck Mike Lynch's Yacht. ... Short on Water—and Booming. ... NASA's Plan B: Why SpaceX Is Completing Boeing's Starliner Mission. 06:41. NASA ...
Last year, hackers broke into the computer system of a facility that treats water for about 15,000 people near Tampa, Florida, and sought to add a dangerous level of additive to the water supply.