HOW TO START A

BOTTLED WATER
BUSINESS

Bottled water businesses deal in the bottling and distributing of drinking

water to consumers. Whether purified, distilled, or natural spring water, your
bottled water business will supply your customers with ample hydration.
Taking the steps to start your own bottled water business can be a
satisfying experience that allows you to make money while also helping
your customers achieve a healthy lifestyle. 
Learn how to start your own Bottled Water Business and whether it is the
right fit for you.
 SKIP AHEAD TO

 9 Steps to Start your Bottled Water Business

 Who is this Business Right For?
 Take the Next Step
 Useful Links

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Start a bottled water business by

following these 9 steps:
You have found the perfect business idea, and now you are ready to take
the next step. There is more to starting a business than just registering it
with the state. We have put together this simple guide to starting your
bottled water business. These steps will ensure that your new business is
well planned out, registered properly and legally compliant.

Check out our How to Start a Business page.

STEP 1: Plan your Business

A clear plan is essential for success as an entrepreneur. It will help you
map out the specifics of your business and discover some unknowns. A few
important topics to consider are:

 What are the startup and ongoing costs?

 Who is your target market?
 How much can you charge customers?
 What will you name your business?

Luckily we have done a lot of this research for you.

What are the costs involved in opening a bottled

water business?
Costs for starting a water treatment plant include storage tanks, filling
machines, water treatment machines, filters, conveyors, sealers, water
sterilizers, water dispensers, bottle loaders, trucks, and employees to work
in the plant.
Startup costs can range from $500,000 to $750,000 for a “bare bones”
plant. However, some plants may require more capital, up to $1.5 million, or
more, depending on the size of your operation.
You will also need a license from the U.S. Food And Drug Administration
(FDA). You will also need a permit from your state health department.
Finally, you’ll need a dedicated bottle supplier, a water source, and
employees to run your plant. This is a very labor-intensive job.

What are the ongoing expenses for a bottled

water business?
Ongoing expenses are extensive. Maintenance on the plant can cost tens
of thousands of dollars every year for a small plant, and as much (or more)
every month for a medium to large-scale bottled water plant.
Utility costs can also be high, due to the process of purifying and bottling
water.
Labor costs are also high, as most employees expect a full-time salary, plus
benefits. Liability insurance, health insurance, unemployment insurance,
401(k) matching and administrative services, and worker’s compensation
insurance can run tens of thousands of dollars per month.

Who is the target market?

Customers are usually commercial enterprises like local grocery stores.
However, some small companies do sell directly to consumers or to
businesses.

How does a bottled water business make

money?
A bottled water business makes money by charging customers for
processing and bottling potable water.

How much can you charge customers?

Bottled water has a high markup. If you are selling to grocery stores, you
may be able to charge $1 to $2 per bottle, or a flat rate per truckload or
pallet. Most companies make arrangements for regular shipments to
establish themselves as “anchor customers.” You may or may not sell your
products for a lower price to get these deals, but will generally increase
revenue as a result.

How much profit can a bottled water business

make?
Profits can range between 100% and 500%, or more.

How can you make your business more

profitable?
Your business can become even more profitable by entering niche markets
such as flavored bottled water, sparkling water, spring water, and mineral
water. Some companies have specialty lines of water, which include
flavored mineral water, flavored sparkling water, and sports drinks.
Finally, consider offering designer waters, seltzer waters and club soda,
and flavored soda.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already
have a name in mind, visit our How to Name a Business  guide or get help
brainstorming a name with our Bottled Water Business Name Generator
If you operate a sole proprietorship , you might want to operate under a
business name other than your own name. Visit our DBA guide to learn
more.
When registering a business name , we recommend researching your
business name by checking:

 Your state's business records

 Federal and state trademark records
 Social media platforms
 Web domain availability .

It's very important to secure your domain name before someone else does.

Find a Domain Now

search
 
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After registering a domain name, consider setting up a professional email account

(@yourcompany.com). Google's G Suite offers a business email service that comes with other useful
tools, including word processing, spreadsheets, and more. Try it for free

STEP 2: Form a legal entity

The most common business structure  types are the sole
proprietorship , partnership, limited liability company (LLC) ,
and corporation .
Establishing a legal business entity such as
an LLC or corporation protects you from being held personally liable if
your bottled water business is sued.
FORM YOUR LLC
Read our Guide to Form Your Own LLC

  
SEARCH NOW

Have a Professional Service Form your LLC for You

TWO SUCH RELIABLE SERVICES:

  ZenBusiness  ($39 + State Fees)

  LegalZoom  ($79 + State Fees)

You can start an LLC yourself and pay only the minimal state LLC costs  or
hire a Business Formation Service  for a small additional fee.
Recommended: You will need to elect a registered agent  for your LLC.
LLC formation packages usually include a free year of registered agent
services. You can choose to hire a registered agent  or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you
can open for business.
In order to register for taxes you will need to apply for an EIN. It's really
easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by
mail. If you would like to learn more about EINs and how they can benefit
your LLC, read our article, What is an EIN?.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for
personal asset protection.
When your personal and business accounts are mixed, your personal
assets (your home, car, and other valuables) are at risk in the event your
business is sued. In business law, this is referred to as piercing your
corporate veil .
Additionally, learning how to build business credit  can help you
get credit cards  and other financing in your business's name (instead of
yours), better interest rates, higher lines of credit, and more.

Open a business bank account

 This separates your personal assets from your company's assets,
which is necessary for personal asset protection.
 It also makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business  review to find

the best national bank, credit union, business-loan friendly banks, one with
many brick-and-mortar locations, and more.
Get a business credit card
 This helps you separate personal and business expenses by putting
your business' expenses all in one place.
 It also builds your company's credit history, which can be useful to
raise money and investment later on.

Recommended: Read our guide to find the best small business credit

cards.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to
understanding the financial performance of your business. Keeping
accurate and detailed accounts also greatly simplifies your annual tax filing.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines,
or even cause your business to be shut down.

Federal Business Licensing Requirements

The Food and Drug Administration (FDA) regulates bottled water. FDA
regulations for bottled water include Good Manufacturing Practices (GMPs),
standards of identity and labeling requirements.
A detailed description of regulation, licensing and labeling requirements can
be found here.
Here is another link containing descriptions of federal bottled water
regulations .

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a bottled
water business. Learn more about licensing requirements in your state by
visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or
services they provide. To learn more about how sales tax will affect your
business, read our article, Sales Tax for Small Businesses .
For information about local licenses and permits:

 Check with your town, city or county clerk’s office

 Get assistance from one of the local associations listed in US Small
Business Associations directory of local business resources .

STEP 7: Get Business Insurance

Just as with licenses and permits, your business needs insurance in order
to operate safely and lawfully. Business Insurance  protects your
company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of
businesses with different risks. If you’re unsure of the types of risks that
your business may face, begin with General Liability Insurance. This is
the most common coverage that small businesses need, so it’s a great
place to start for your business.
Learn more about General Liability Insurance.

Another notable insurance policy that many businesses need is Workers’

Compensation Insurance . If your business will have employees, it’s a
good chance that your state will require you to carry Workers'
Compensation Coverage.
Recommended: Learn what business insurance for your Bottled Water
Business will cost.
BUSINESS INSURANCE FOR
BOTTLED WATER BUSINESS

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business
is perceived by the public. A strong brand will help your business stand out
from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design
Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your
business.
How to promote & market a bottled water
business
Marketing and distribution is key in this business. Your target market should
be grocers, vending machine companies and operators, stadiums, event
locations, and other large-scale commercial enterprises and operations that
need high volume bottled water supplies.

How to keep customers coming back

Make sure you deliver on your promises and be competitive on your pricing.
This is a highly commoditized industry. Often, it’s the business that meets
deadlines and has the lowest (or at least competitive) pricing that wins.

STEP 9: Establish your Web Presence

A business website allows customers to learn more about your company
and the products or services you offer. You can also use social media to
attract new clients or customers.
What happens during a typical day at a bottled water
business?
The day-to-day operations of a plant depend largely on the type of plant
you run.
There are many different ways to process bottled water. Spring water is one
of the most common. It comes from an underground formation and flows
naturally to the earth's surface. Purified drinking water is one that is
processed to remove chlorine and other contaminants. Unless your plant
processes public sources of water, like municipal drinking water, you are
not usually required to disclose where you sourced it.
Natural sparkling water is naturally carbonated water from a spring or well.
Mineral water comes from a spring and contains dissolved minerals like
magnesium, calcium, sodium, potassium, and silica and bicarbonates.
Finally, seltzer water is an FDA-regulated soft drink product.
The day-to-day operations include bringing in water from an outside source
and bottling it. During this process, there are many intermediary steps,
including sanitising containers, preparing bottles preparing and filtering the
water, and setting up packaging protocols to ensure that the water is ready
to be shipped.

What are some skills and experiences that will help you
build a successful bottled water business?
You will need business experience, contacts in the industry, and a working
understanding of how water is purified. No degrees are necessary but you
may need special permitting and licensing from the government. Most
owners and managers of a bottled water business have extensive
management experience, especially in a related industry.

What is the growth potential for a bottled water business?

Growth potential is virtually unlimited. Companies like Nestle own massive
water processing and treatment plants where they produce bottled water for
countless grocery stores and make billions in profits every year.
Most bottled water plants start life as small or medium-sized plants.
You can grow your business at a rapid pace by taking on outside financing
from a bank or venture capital firm. Or, you can grow more organically from
sales profits. Growing through leverage (bank loans) has its advantages.
For example, your profits are likely to climb quickly on momentum. This can
shortcut the time it takes you to grow and meet your revenue growth
targets. However, it can also saddle you with creditors who want to see
target revenue and profit targets that are too optimistic.
Growing organically is prevents this from happening, but it also slows
growth and might prevent you from growing beyond a certain size.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC
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What are some insider tips for jump starting

a bottled water business?
Spend time finding a sustainable water source for your operation. Your
water source will greatly influence your profits. If you find a source that
costs $3 to $5 per 1,000 liters, this is going to result in a higher profit than if
you’re paying the same amount for 100 liters of water.

How and when to build a team

You must begin building a team immediately. A bottled water company
cannot operate as a solo or one-person company. You will need at least 20
to 50 employees to start, and you should scale up within the first 3 years to
at least 50 to 100 employees, or more.