Water Business Kit’: Kenya
A guide to starting your own successful water
treatment and vending business
oe
aquayaThe Water Business Kit™: Kenya and all materials described within
are available for free download at wwwiwaterbusinesskits.org,
F
aquayaAbout Aquaya
Aquayais dedicated to improving gobi child health byincs essing access to safe diinkng wate
‘We focus on reseaich and technology developmentin the areas of water quality management
service dilivery and impact eresument We aeo provide consdsng services to support public
and piivate safe vater efforts For more infomation wsit wv agi/2.01g
‘Aauayas work to develop the Water Business Kit"™ has been supported by IFC's Sanitation and
‘Safe Water for All GSAWA) Program, the Muage Foundation and Google org
Under the Water Business Kis ™ program, Aquaya has provided support ranging fom business
pan development access to financing and improved vor dkeepingand data management to six
‘demonstaton vate Business outs operated bylocdentiepreneurs in Kenya.TABLE OF CONTENTS
Preface
INTRODUCTION
Why Should You Open Your Own
‘Water Treatment and Vending Business
KEYS TO BUSINESS SUCCESS
| Driving Business Success
I. Location, Location, Location
1.2 The Race is on to Launch Your Business
1.3 Profits Driven by Volume
1.4 Establish the Quality of Your Product
1.5 Small Volume Bottles in Demand
1.6 Aggressively Market and Sell Your Water from Day One
17 Control the Big Costs
1.8 Opening Additional Shops
PLANNING YOUR BUSINESS
2 Developing Your Business Plan
2.1 Projected Ongoing Revenue and Expenses
3 Securing Startup Capital and Initial Expenses
3.1 Financing
4 Choosing Your Location
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24, Who's Buying Your Product!
42 Finding Your Water Sources
4.2.1.Tap Water:The most cost-effective
4.2.2. Ground Water (Boreholes and Wells): More expensive
4.2.3. Surface Water: Contaminants a potential concern
4.3 Consider the Reliability of Your Water Supply
4S Your Competition:Any Other Safe Drinking Water
4.6 Consider Convenience for Your Customers
47 Choosing a Shop Space: Limit Renovation Costs
48 Signing a Lease
4.9 Location Selection Checklist
SETTING UP YOUR BUSINESS
5 Selecting and Purchasing Water Treatment Equipment
5.1 The Main Classes of Water Contaminants
5.2 Water Treatment Technologies
5.3 Other Factors to Consider
5.3.1, Ease of Use
5,3.2.Treatment System Capacity
5.4 How to Choose Equipment Vendors
6 Be Clever About Building Out Your Shop
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37 Plans for Storing Water: Keep a Back Up Supply
8 Staffing Your Business
8.1 How Many People Should You Hire
8.2 Sales Incentives for Employees
9 Marketing Your Product
9.1 What to Sell
9.2Why Should Customers Buy From You
9.2.1. Price
9.2.2. Quality
9.2.3. Convenience
9.3 Offering Delivery
9.3.1 Logistics
9.32 Costs
94 Setting Your Prices
9.5 Signage and Branding
9.6 Labels
9.7 Brochures and Fliers
10 Purchasing Bottles, Caps and Seals
10.1 Bottle Deposits
1 Obtaining Necessary Licenses and Permits
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561.1 Kenyan Bureau of Standards (KEBS)
11.3 Public Health Department
[1.4 Water Resources Management Authority (WRMA)
ILS National Environmental Management Authority (NEMA)
1.6 Kenya Revenue Authority (KRA)
11.6.1 Value Added Tax (VAT)
11.6.2, Excise Tax
11.6.3, Corporate Income Tax or Turnover Tax
RUNNING YOUR BUSINESS
12 Maintaining High Water Quality Through
Water Control and Assurance Protocols
13 Preventing Employee Theft
4 Maintaining Good Business Records
REFERENCES
GLOSSARY
BI9998
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62Preface
‘Small wate: teatment and vending businesses eeive customers in many pasts ofthe woild with
Fagh-quaity weated duinking water These businesses represent the efforts of independent local
tntreprentue tomeet consumes demand fer ueated dinlang wat.
Aquayais a notfor-ptafic oi guizaton dedicated to improwngaccess to safe duinling water
inthe developing woild and ve have been studying the water Ueatment and vending Business
model in Kenya Together withlocal entvepreneurs Aquaya ertablshed six demonstiaton water
‘ueatmentand vending businesses atlocatone around Kenyain 2010-201, Since then we have
been collecting sales and fiancial data fom there businesses and dent ing
‘he factors thatlead to business success.
“The Water Business KitT™is a dvect product of Aquayals reseachin
SoutheartAsa and our collaboration withthe demonstration businesses
In Kenya The Water Business Kit™is designed to prowde you the
tntrepreneus with a step-by-step guds to opening ther own water
‘peatmentand vending shop in Kenya eis organized in four part, wlich
tach cover a stage of burinese development
| Keys to Business Success (page I)
2. Fanning Your Business (page 15)
53 Setang Up Your Business (page 32)
4 RunringYour Business (page 59)
The store font of nicl Kenyan water rentment and vending
bane in amiddincome suburo of NiroINTRODUCTION
‘Smallseae water ueatment and vending businesses serve customens with safe, eated dunking
‘vate tht meets inte naboraly acepted dinking water quality standade These businesses
fpetate profitably and sustainably inmany parts ofthe woild and ae parctdally pops in
Southeaet Asia and LatnAmesica Recent this Business model hae begun to emerge in Kenya!
‘Water teatmentand vending businesses ae alocal entvepreneusial response to consumes