Pure water business in Nigeria-How to start
Pure water business is becoming very popular and really a justifiable business in Nigeria.
This is due to the lack of quality drinking water and relatively expensive to establish a purification system for house, office etc.
So the best option is to buy from vendors and thus has further increased the popularity of the business.
Making the pure water business in Nigeria one of the very profitable, but requires a good amount of money before you can start.
Why pure water business is lucrative
There is population
With over 180 million people in Nigeria, drinking water is one major challenge and the procedure to build your own system can be capital intensive.
As a result, many people have resulted in buying pure water for home, office, hotel etc to use. This is far affordable to both individuals and small-medium businesses and corporate organizations.
You see the evidence when you visit the corperate organization and it’s one of the major drinking water in major households.
The trend will continue as more demand for drinking water increase and pure water is the best and cheap options for individuals.
The market is still not saturate
Even though there are several pure water businesses around, there is still room for more as the demand increases. Many households prefer to use pure water as their basic drinking water because it’s cheaper and easier to get.
What you need to start pure water production business
The starting of pure water business should be done in two stages. The planning stage and the action stage. Each stage is important and your business success will really depend on it.
The planning stage
Do a feasibility study on pure water business
Even though you see the need and opportunity, it’s not enough reason to just jump right into it without conducting a feasibility study. Going into starting your business, will leave you with vital details that may help the business.
Why is feasibility study important?
It helps you to analyze how to successfully complete a project by accounting for the factors that can affect the project.
In other words, you’re trying to uncover the strength, weakness, opportunities, and threat of the business.
Your feasibility study will seek to:
- What they’re looking for in a pure water
- The preferred packaging
- The size they need per pure water
- The taste they want in a pure water and so on.
At the end, of your feasibility studies, you should have the idea of most of the things people are looking for and are not getting. This gives you the ideas you’ll need to include into your pure water business.
Consider your water source
Not all water is good for usage in a pure water factory. I have seen a pure water factory, where there is a functioning borehole, yet they don’t use it.
Simple because the water is salty and they do not have the capacity to install the equipment that can do the job.
So they resulted in buying water from outside that can give them the end result that they wanted.
So also is the case when you’re about to start the pure water business. You’ll have to consider your water source.
Ensure that you’re using the right water or the water that can give you the required end result.
If in your preferred location you cannot find a good water source, consider your options. You have to consider the proximity and the cost. If they’re not favorable then reconsider your location.
The reason why this is so important is that water is the primary raw material and if that will consistently add more cost, it might not be good for your business.
Design your pure water factory design
Begin the design of your pure water factory. Whether you want to build it from the ground up or use an existing building, you’ll need to design it according to the standard of a water factory.
A standard pure water factory design will including the following:
- Production unit
- Storage room
- Research laboratory
- Booking room
Write a business plan
Then begin to write your business plan. This is all about your business on paper. It should contain the cost for capital and recurrent expenditures, the business mission, a brief description, projected expenditures and the expected profit.
With a business plan, you’ll be able to know all that the business needs to start and the time the business will begin to generate profit.
Another vital point when using a business plan is you can be able to evaluate your achievement when you start taking action and what steps you’re required to take next.
Once you’re done with your business plan, you’ll need to move to the next step.
Raised the required capital
Now that you know the money required for your business, you’ll then need to begin to raise the capital required to start the business. There are several ways you can use to raise capital.
- Family and friends
- Bank loan
- Find investors
If you have a business plan, it’s easy to find investors. All you need to do is to present your business plan and once they’re satisfied, then they’ll invest in the business.
Design your pure water sachet
I know of a pure water company who have one of the best water and yet little people patronize it. Why? Because their packaging isn’t attractive at all.
When you want to buy, the sachet design will discourage you and may think it’s the same way as the content is.
This happens all the time. You’ll need to come up with something different, unique and very attractive. In fact, your design can be your number one advertiser.
Take time to come up with a design you feel can attract a lot of customers in no time.
Build your factory
You’ll need the services of an expert to get to build a great factory for your business. Putting all the necessary things to ensure it’s done according to standards are all you’ll for the factory to stand the test of time.
In fact, one major factor the licensing agencies consider before giving license is the building. Your production unit must be big enough that can accommodate all the machines you’ll be using and really hygienic.
Get the required equipment
Equipment is what you’ll need to turn your water into a product that can be sold in the market. the equipment you’ll use will determine the capacity of the pure water you can produce in a day.
Some of the equipment you’ll need to use in your pure water plan include:
- Distillation system
This easy and effective method of water purification used in the pure water business. This system works on all types of incoming water and that’s what makes it more effective than the carbon filters and reverse osmosis treatment method.
So what makes the distillation system better than others? Well, this form of the system can:
- Remove virtually all contaminants
- The distillation method is not dependent on water pressure, temperature, chlorine, PH to work
- Purification of water is at 99.9% even when it contains bacteria or parasite in it.
The UV sterilizer and Ozone distillation system are some of the best machines you can use.
- Remove osmosis distillation system
One of the easier system to install and widely used systems in the pure water industry in Nigeria.
It gives you a high level of purity and also a perfect system to use in a pure water factory.
- Ultraviolet bulb
Another system used also in Nigeria which purifies water but not at the level that the ones discussed above can do.
- Get an automatic sealing machine
At the end of the entire process of purification, you’ll want to make it in a way that can be easily distributed.
This is where the sealing machine will come into play. The machine will seal the water in the water leather according to specification.
For instance, if you want the water to come out in a 60cl size, you set that and once the water is at the required level, the machine will automatically seal it and push it out where you can package it.
Sealing machines have the required number it can seal every day, you’ll have to check to know the capacity before buying one.
Install the equipment
By now you should have secured your pure water location, the building in place and all the required equipment. Now begin the process of installing the equipment. You may not be able to do it by yourself.
But the good thing is in most of the places where you purchase the equipment, the company will send in the person that’ll help in installing the equipment.
To be sure, you’ll need to ask the company to know. The good news is even if they don’t offer such service, they’ll always connect you with someone who can.
Get the necessary license
Before going into full production, you’ll need to get the required license and permit.
The first place you’ll need to start is with NAFDAC where they’ll come to your factory to inspect the premises and ensure that your pure water business is in line with the best practices and policy.
Once everything is okay, they’ll give you the necessary license. Next, you’ll need to proceed to the state to ensure that you have obtained their own license and permit.
Next, you’re to register to get your own trademark. This is what many tend to overlook because they think it’s not important. But if you want to protect your brand, you’ll need it.
Once you have your approval and all the licenses, you’ll need to move to the next step.
Hire the required personnel
For your business to move, you’ll need to hire some personnel that’ll assist you with the production to distribution.
The number will ultimately depend on your production and distribution capacity. However, even when you have a huge capacity, you may hire the people you’ll need to start with and as the business grows, you can hire more people.
So who will you hire when starting the business? Here are the people you’ll need to start your pure water business with:
- Operators: you’ll need two people who’ll handle the machines during production
- Sales manager: This person will ensure that your product is put at the doorsteps of customer
- Car driver: the person that will drive the car during the distribution of the product.
- Two loaders: those that’ll be responsible for loading and offloading the product
- An account: Tracking your sales and keeping a good financial record is good. An accountant will help you with that.
As the business grows, you can begin to create an avenue for distributors, more drivers, operators etc.
Market your pure water business
Without marketing, no one will know your pure water is in the market. for the product to get traction, try giving grocery stores and other food stores to try the water for free.
This way, people will get the feel of the product and begin to ask for more.
Example, a woman who opened a new pure water business decided to bring it to the church and gave each member one sachet for free. She repeated the process three times and in less than a month, she got beyond the number of customers she earlier planned.
Yours might not be the church it could be during an occasion, among friends and family etc.
Other methods you can use to market your pure water business in Nigeria include:
- Word of mouth: you can tell people about the new product in town, they’ll definitely look for it.
- Send them an SMS telling them about it and where to find it.
- Produce and distribute flyers to ensure you spread the message.
- Use social media to spread the message
Begin to distribute your pure water
It this stage, you must have gotten some clients. you’ll need to start distributing your product in locations where people can access it.
Since this is a new business, ensure that all that your product does not run out of stock. Such scenarios are things that make customers shy away from your product and a competitor can easily take advantage of it.
Challenges of pure water business in Nigeria
Even though a pure water business is lucrative in Nigeria, the downside of it is it’s capital intensive. This single problem is what is making a lot of people not to join the business.
Competition can be fierce
Competition can be fierce as many companies are been created every day. Beating such competition will require hard work, innovation, and marketing.
More tips to succeed at your pure water business
Make your taste unique
With many pure water businesses, trying to be different will really make all the difference. One way of doing it is having a taste that’s different from any other pure water in the market. This is one reason Faro water became unique in Nigeria and was welcome into the market.
Having that uniqueness will make your water in high demand. However, before releasing it, you’ll need to conduct a survey to see how your potential customers will think of it.
Make the packaging attractive
Packaging is your number one selling point. No matter how great your product is, poor packaging will tell your potential customers otherwise.
Your packaging should be simple and attractive. Include things that’ll ensure that it sends a straight message to your customers.
Great packaging attracts and that’ll sell your product the more.
Ensure the name can be remembered
One basic thing about business is the name. when people remember it, they tend to go for it if that’s the product they’re going for.
Giving your business a name that can be remembered easily, will go a long way in making the product popular.
Anyone who’s going to buy pure water will always remember the name of your own first.
Collect feedbacks always
Feedbacks are important in any business. You may be working on assumption thinking all is well with your product or service, but it’s only through the customer feedback will you know.
You can collect feedbacks from time to time to get to know the loopholes you’ll need to cover before it becomes a big crack.
As drinking water becomes increasingly difficult to get, many will continue to demand the use of pure water.
Those will start the business of pure water are the ones that’ll benefit from the increasing demand for pure drinking water.
However, with so much competition, getting the right equipment, personals, and effective marketing is what will give you the competitive edge.