Do you want to start a bottled water business in your country? Are you looking for a way to implement the idea? Don’t worry because we’ve got it all figured out for you.
A bottled water business deals in the packaging and distributing of drinking water to consumers. There are three types of water that you can sell: purified, distilled, and natural spring water. All of them provide an ample amount of hydration, and you can get started with supplying them, but you must be aware of the proper procedure for doing so.
You don’t want to know the obvious things when you have made all the investments and made all the purchases. So, to help you take the proper steps, start scrolling down. We assure you that this business will be a satisfying experience that will allow you to make money while helping people achieve a healthy lifestyle.
Plan Everything Out
Doing the proper planning is a critical quality that every entrepreneur must possess. A well-defined plan can take your business to new levels, so you must do it rightly. Map out the specifics and discover the unknowns. Here are a few things that you should consider:
Startup & Ongoing Costs
The cost involved in opening a water treatment plant includes storage tanks, filling machines, flyers, conveyors, treatment machines, sealers, sterilizers, dispensers, loaders, staffing, and trucks. Depending on the size of your operation, the startup cost may vary. You will also need a license from the health department, a water source, and contacts with a bottle manufacturing company.
Your Selling Price
It would be best if you gave a lot of thought to fixing the selling price of your bottled water. It is not an easy decision because you have to consider all the costs involved and your competitor’s. Consider arranging regular shipments to establish as an anchor customer.
Do everything you can as you don’t want to remain unknown after making huge investments.
Establish a Legal Entity
After you have done all the planning, now is the time to establish yourself as a legal entity. You may form a partnership, a corporation, a sole proprietorship, or a Limited Liability Company (LLC) that protects you from being held personally liable if your business is sued. For this, you only need to pay a minimal fee and hire an LLC agent to carry out the rest of the procedure.
Register For Taxes
Before starting a bottled water business, you need to get registered for various state and federal taxes. To find out how your business will be taxed, you have to consider its size and structure. The taxes are different for all legal entities.
Complete Bank Formalities
It is wise to open a separate bank account and issue a separate credit card for your business as it protects your personal assets. If you mix personal and company accounts, you will put your assets such as your home, vehicle, and other valuables at risk if it gets sued. It also makes tax filing and accounting convenient.
Additionally, obtaining a separate credit card will help you obtain financing in your company’s name instead of yours. It might also yield you higher credit lines, better interest rates, build your company’s credit history to help you raise money, and put your business expenses in one place.
Establish Business Accounting
By opening a separate bank account for your company, you can put all the expenses and incomes in one place. Recording it is necessary to understand the financial performance of your business and keeping detailed accounts to simplify annual tax filing.
Obtaining Permits & Licenses
Next, we come to obtaining the necessary licenses and permits for beginning your business. If you fail to acquire these, you might have to pay hefty fines and, worst-case scenario – close down. You can obtain all the details relating to obtaining them via state and local authorities.
Acquire Business Insurance
In the eyes of the law, everything done outside it is not acceptable. That’s why, just as with permits and licenses, your business should also obtain insurance to operate safely and legally. In the event of hefty losses that are outside of your control, insurance protects your company to ensure its financial well-being.
Different insurance policies cover different types of business risks. You will need to go through all of them before deciding the right one. If you do not know this field, you may hire an insurance agent. However, in the beginning, if you’re unsure what type of risk your business might face, begin with General Liability Insurance. It is perfect for small businesses that have just started.
Define Your Brand
A brand is what your company stands for and how people perceive it. Having a solid brand helps you stand out in the crowd, and proper marketing and distribution are vital to achieving it. There are so many marketing techniques that you may follow, which include using decorative bottles ideas, attending trade shows, doing charity runs, etc.
You can carry out the marketing and set a budget according to your target market (vendors, stadium, vending machine, grocers). Whatever you do, make sure you fulfill your promises and be competitive on your pricing. As it is a highly commoditized business, the one that sets the lowest price and meets deadlines wins.
Create a Website
Having an online presence helps you reach out to a global audience, thus increasing your sales. No matter what your business size is, having a website shows that you’re a legitimate seller. If you don’t know how to get started, hire a web developer who can deliver what you’re looking for.
You might not realize this now, but you have to follow the proper procedure to make your perfect business idea a reality. There’s so much more to starting a business than getting registered. In this guide, we’ve mentioned everything you need to get started. We truly hope it assists you!