Pure water production is a profitable business in Nigeria because a vast majority of the population drink water which is packaged in a sachet.
The reason many people buy pure water is due to the affordability and general lack of access caused by government’s inability to provide clean and portable drinking water. One fact about pure water business is that it will have a booming market in the country for a long time because most areas across the 36 states and FCT are battling the challenge of no pipe borne water.
There is no better time for a smart entrepreneur to tap into this money making opportunity than today. To start a pure water business in Nigeria, you will need some guidelines which will be explained in this article.
Business Plan
Writing a business plan is as important to a bakery business as it is to a pure water production business, be it small or large scale. One may not need an elaborate feasibility study since the market is already a booming one due to high demand. What will form the core of your business plan should be the amount of money needed, how it will be used, the projected profit, strengths and weaknesses of the business and how to address them. The reason a business plan is essential is so that investors can have a deep understanding of what they will be pumping their money into. It can also account for the type of building to be used for the company’s production process. It could be a bungalow or blocks of flats.
Register Business With CAC & NAFDAC
Every business that operates in Nigeria, whether a sole proprietorship or limited liability company needs to be registered with the Corporate Affairs Commission, (CAC) to provide a sense of accountability and legitimacy. It will also give your brand a trustworthy outlook. Not every company needs to get approval from NAFDAC, but pure water is a product that is consumed, just like soft drinks and food, so you must apply for permit before starting sachet water production.
Get Capital
When your business passes the stage of just being an idea to actually having a registration number, it is now official that you have a company. The next step is to source for capital. There are loan platforms that give loans to individuals seeking to start a business, so one can do research on those.
Starting a sachet water business that meets the best standards is not something that can executed with N100,000 or N200,000, this is because you have to factor in the acquisition of materials and equipment used to generate, treat and package the sachets water which are not cheap. On the average, the cost of setting up pure water business in Nigeria ranges from N5 million to N25 million and this depends on the size.
Location For Factory
Getting a location where the factory will operate from is another important aspect. One may consider leasing a suitable accommodation, buying a plot of land and building a structure or converting a building which you already own. Bear in mind that it should be situated in a place where there will be uninterrupted water supply. That means you will need to sink a borehole.
Install Distillation System
A distillation system purifies the water before it is packaged for sale to consumers. You can install the full scale distillation system or the ultra violet sterilization bulbs process depending on the start up capacity of the enterprise.
To know the actual cost of distillation equipment, one must do market research and include it in the business plan. Interestingly, most sachet water manufacturers use ultra violet bulb for purification which is not that effective but comes at a cheap price.
Get Equipment/Materials
For a pure water company to be up and running the equipment you need include; automatic sealing machine, packaging materials (sachet nylon and bagging nylon), activated charcoal, dosing pumps, mineral acids, alkali, green sand, hydrogen peroxide, liquid chlorine, ultraviolet lamps, ultraviolet sterilizer, microfilter cartridges, pumping machine, PVC water tanks.
Hire/Recruit workers
A pure water company cannot be run by a single individual so one would have to hire skilled workers that will handle the day to day job at the factory. Technical staff will be needed because most of the workload will be done with people that have experience. Ensure any staff you hire has the requisite knowledge and is up to the task. The staff you need to recruit are; operator, packagers, cleaner, driver, loader, salesperson, security personnel, a supervisor or manager, and cashier.
Note that it is risky to assume staff would learn on the job regarding food production or processing business as this is an area where a little error can ruin the entire output of the business.
Provide Stable Electricity
Stable electricity is the most important thing you must make provision for or else you are wasting your time going into pure water production business. Almost every equipment in the factory requires power to function, so if your business is not located in an area where there is uninterrupted power supply you need to get a generating set. There are certain types of generators pure water makers use, so you can do inquire from those who are already in the business.
Acquire Supply Truck
Buy a truck for distribution which should be able to transport bags of pure water in reasonable quantity. Make sure you get a truck that can withstand Nigerian roads because in most cases, you will be going to places that have rocky untarred roads to supply to retailers or the consumers. An example of a truck that’s reliable is a fairly used Mitsubishi Canter which can be purchased at around N3 million.
Marketing And Sales
Every business needs a marketing or advertising plan so that people can know about your goods and services. Use the various available marketing channels to spread the word about your pure water business. Since the sector is a competitive one in Nigeria, find ways to make your business stand out from your competitors, it could be through your brand design, name, or sale strategies.
Conclusion
To have a successful pure water business in Nigeria, take into account the above mentioned recommendations and also research stories by other business owners in the same field who shared their experiences.
There is no particular tip that will ensure you profit from this venture, but with an effective and well-planned market survey and strategy implementation, you will be able to take off smoothly.
Pure water entrepreneurs in Nigeria always earn huge sums of money annually, either as a manufacturer or wholesaler because the demand for good and clean water at an affordable rate keeps rising.
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