Bottled Water Business Plan Template

Bottled Water Business Plan Template

If you want to start a Bottled Water business or expand your current Bottled Water business, you need a business plan.

The following Bottled Water business plan template gives you the key elements to include in a winning Bottled Water business plan.

You can download our bottled water plan template (including a full, customizable financial model) to your computer here.

 

Bottled Water Business Plan Example

Below is a bottled water business plan example with each of the key sections to help you write a bottled water business plan for your own company.

I. Executive Summary

Business Overview

[Company Name], located in [insert location here] is a new bottled water company that focuses on providing high-quality, filtered bottled water. The company uses proprietary technology to filter its water and provide the best tasting water in the industry. The company also plans to distribute their bottled water to retail locations throughout the United States.

Products Served

[Company Name] will provide a variety of different types of bottled water. Products will include mineral water, spring water, purified water, sparkling water, artesian well water and alkaline water.

Products are focused on providing healthy and nutritious beverage options for an individual to achieve maximum hydration.

Customer Focus

[Company Name] will primarily serve the residents within a 5 to 10-mile radius of our location. The demographics of these residents are as follows:

• 195,203 residents
• Average income of $46,000
• 49.3% married
• 40.5% in Management/Professional occupations
• Median age: 43 years

Management Team

[Company Name] is led by [Founder’s Name], a local dietician who runs a private practice in [location]. She has studied nutrition, diet, and exercise and has been running a successful practice for over 20 years. She has written books, journal articles, and presented at numerous health conferences. [Founder] has studied the effects of properly bottled water for health benefits and has developed a proprietary system for filtering water while maintaining all the crucial vitamins and minerals of well and tap water.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• The company will be providing a valuable product to those seeking the most beneficial water source for their active lifestyles.
• The company is in a high-volume area that is near to hospitals, schools, gyms, and recreation centers.
• The management team has a track record of success in the nutrition industry and is a proven expert in the field.
• The pricing model is formulated to be slightly higher than the competition as it is a higher-quality product, but low enough that customers will perceive value when consuming.
• [Company Name] will be sold in most grocery stores and convenience stores.

Financial Highlights

[Company Name] is seeking total funding of $225,000 to open its bottled water manufacturing and distribution company.

• Factory design/build-out: $100,000
• Equipment and supplies: $75,000
• Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

 

II. Company Overview

Who is [Company Name]?

[Company Name], located in [insert location here] is a newly established bottled water company that will provide a variety of bottled water options for purchase. The company has developed proprietary technology that filters water using the latest technology while still maintaining the vitamins and minerals tap and well water include.

[Company Name] was founded by [Founder’s Name], a local dietician who has been running a successful practice for over 20 years. In addition to studying the many health benefits of daily water consumption, she has led seminars, presented at conferences, and written numerous books and journal articles on the practice of drinking bottled water daily. One of the common problems that her clients always have is that they are not consuming enough water because they don’t like the taste. [Founder] has set out to help remedy this problem by creating a bottled water that is healthy and delicious.

[Founder] began researching what it would take to create her own bottled water company and did a thorough analysis on the costs, market, demographics, and competition. [Founder] has compiled enough information to develop her business plan in order to approach investors.

[Company Name]’s History

Once her market analysis was complete, [Founder’s Name] began surveying the local vacant warehouse space and located an ideal location to house the bottled water company. [Founder’s Name] incorporated [Company Name] as a Limited Liability Corporation on [date of incorporation].

Once the lease is finalized on the warehouse space, light construction can begin to build-out the factory.

Since incorporation, the Company has achieved the following milestones:

• Located available warehouse space for rent that is ideal for bottling and distribution
• Developed the company’s name, logo, and website located at [website]
• Hired a general contractor for the build-out of the warehouse, small office, and distribution area
• Determined equipment and necessary supplies
• Began recruiting key employees with previous beverage distribution experience

[Company Name]’s Products/Services

Below are [Company Name]’s product offerings:

A team of physical therapists will be able to perform the following therapy services for patients of all ages:

1. Mineral water
2. Spring water
3. Purified water
4. Sparkling water
5. Artesian well water
6. Alkaline water

III. Industry Analysis

The Bottled Water industry is estimated to increase by 3.6% to $7.8 billion over the next five years.

Demand for bottled water has remained steady over the past five years. Per capita of bottled water consumption approached 44 gallons, while average intake of carbonated soft drinks dipped below 37 gallons.

Healthy disposable income growth also enticed consumers to purchase premium products, such as imported water and water fortified with electrolytes and minerals. The shift toward these products, which typically have wider profit, has helped support a higher level of average industry profit.

Moving forward, industry revenue is projected to increase an annualized 3.5% over the next five years as economic activity increases and bottled water producers pass on rising input costs, including the price of plastic and resin. For capturing health- and eco-conscious customers, operators are expected to continue researching and marketing the health benefits of industry-relevant products while minimizing one’s ecological footprint.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the community residents of [company location] and its surrounding areas.

The community of [company location] has thousands of active children, teenagers, young adults, adults, and seniors who regularly participate in recreational activity. The company will also target the community as a whole since water is a beneficial source of nutrition and hydration for all ages and types of people; not only active persons.

The precise demographics of the town in which our location resides is as follows:

Customer Segmentation

The Company will primarily target the following three customer segments:

1. School age children: Most children are regularly active and need proper nutrition to keep their bodies from dehydration. Studies show most children do not receive the proper hydration they need on a regular basis.
2. College students: The area is also home to numerous universities and community colleges. College students are not only active, but they regularly partake in alcohol consumption that results in dehydration.
3. Adults who Exercise: The Company will also target those who frequent a gym and conduct frequent exercise. Those who regularly exercise are more likely to invest in proper hydration.

 

V. Competitive Analysis

Direct & Indirect Competitors

The following businesses are located within a 10-mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Water King

Water King is a bottled water distribution company in [location]. In business for over 40 years, Water King delivers bottled water to residences, offices, and schools across the area. Water King also offers a variety of water treatment products and services including, water softeners, bottle free dispenser, drinking water systems, and custom label bottled water.

In addition, Water King provides reverse osmosis systems for businesses and homes as well as regular treatment options. The company is also able to provide commercial water systems.

Prime Time Water Solutions

Prime Time Water Solutions is a total beverage provider for commercial and residential properties. The company offers tea, coffee, and break room supplies and water filtration products. They are a full-service option for any type of beverage needed for local businesses.

Clients are able to set up their delivery dates for weekly, bi-weekly, or monthly deliveries. Each delivery representative delivers directly to the specified location in the office so that no one needs to lift a finger. All containers are recycled and clients can opt for regular cleanings of their coffee maker, water filter, etc. Prime Time offers a full concierge service or just drop off and delivery.

Water, coffee and tea equipment can either be purchased outright or paid in monthly installments. Beverage deliveries are priced on a monthly basis and are customized per level of service.

Spring Seltzer

Spring Seltzer is also a local bottled water company that manufactures and distributes a variety of bottled water products. They are mostly known for their seltzers, but also provide mineral water, spring water, and purified water. The company has been in business for about ten years and has developed a large following due to their unique branding. Spring Seltzer has become a favorite of fitness enthusiasts and competitive athletes. They have invested in acquiring local notable athletes to be their spokespeople and have invested heavily in a marketing campaign.

While Spring Seltzer has a strong branding and following, the taste is not as appealing to other brands. They are also the most expensive bottled water product on the market. For now, Spring Seltzer distributes locally and to neighboring states, but they are not distributing on a national level yet.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. Those advantages include:

• Taste: [Company Name]’s taste is refreshing, healthy, and tasty. Due to their proprietary technology, they are able to provide the tastiest and healthiest water on the market.
  Price: [Company Name] is able to offer the highest quality water at a competitive price point. Customers will be able to purchase the water in bulk as they will feel they are receiving a bargain.
• Known Expertise: Part of the marketing strategy is to showcase the founder’s expertise and knowledge in the industry. As a proven dietician, she was able to make a bottled water product that is the healthiest on the planet.
• Proprietary Technology: [Company Name] will invest heavily on the latest technology to develop the healthiest bottled water while not sacrificing taste or beneficial vitamins and minerals.

 

VI. Marketing Plan

You can download our bottled water plan template (including a full, customizable financial model) to your computer here.

[Company Name] seeks to position itself as a high-quality source of hydration in the bottled water industry. Consumers can expect to receive the best bottled water on the market from skilled manufacturers in [location] and developed by a health industry expert.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Appealing taste
• Contains the most vitamins and minerals
• Developed with proprietary technology
• Created by a nutrition industry expert
• Affordable price

Promotions Strategy

[Company Name] expects its target market to be individuals living within a 20-30-mile radius of its location. [The Company’s] promotion strategy to reach these individuals includes:

Social Media
[Company Name] will invest heavily in a social media advertising campaign. The brand manager will create the company’s social media accounts and invest in ads on all social media accounts. It will use targeted marketing to appeal to the target demographics.

Major Publications
We will also invest in advertising in selected larger publications until we have achieved significant brand awareness. Advertisements such as billboards and commercials will be shown during peak TV watching time and the billboards will be placed in highly trafficked areas.

Website/SEO
[Company Name] will invest heavily in developing a professional website that displays all the features and benefits of the bottled water company. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Gyms and Athletic Events
The owner will visit multiple gyms and athletic events to hand out samples of the bottled water. We will ask them to keep a handful of our brochures on hand in hand them out to their clients. Because the founder is well-known in the industry, she believes the gyms and athletic event organizers will be happy to hand out her brochures.

Sponsorships
[Company Name] will also invest in sponsoring certain athletic events so that their banners and collateral material are displayed all over the event where numerous people are at.

Pre-Opening Events
Before opening the warehouse, [Company Name] will organize pre-opening events such as an open house to draw future consumers to visit the facility and take a tour. When they witness the proprietary technology and understand how the bottled water is made, they will be enticed to be a regular consumer of the bottled water.

Pricing Strategy

[Company Name]’s pricing will be moderate, so consumers feel they receive great value when purchasing the bottled water.

 

VII. Operations Plan

Functional Roles

[Company Name] will carry out its day-to-day operations as a manufacturing and distribution center. There will also be numerous administrative functions involved.

In order to execute on [Company Name]’s business model, the Company needs to perform several functions. [Company Name] anticipates using the services of X employees, divided into the following roles.

Service Functions

• Manufacturing factory personnel
• Bottling staff
• Drivers for distribution
• Operations manager on duty

Administrative Functions

• General and administrative functions including legal/compliance, marketing, bookkeeping, etc.
• Hiring and training staff
• Delivery coordination with retailers
• Brand management/social media
• Supply and materials procurement

Milestones

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

 

VIII. Management Team

Management Team Members

[Company Name] is headed by its founder, [Founder’s Name] who has been an accomplished dietician for over 20 years. She graduated from [University] with a degree in Diet & Nutrition. She has been studying and chronicling hydration techniques and methods for years and has dedicated much of her life to developing a proprietary bottled water method. As an accomplished dietician who has written several journal articles and books, [Founder] has gained a good reputation in the community and has become a highly sought after dietician. She has dedicated her life to making the world more hydrated and is ready to invest in a bottled water company.

Hiring Plan

[Founder] will serve as the Owner and Manager of [Company Name]. In order to launch, she needs to hire the following personnel:

• Operations Manager: 1 full-time employee to manage the day-to-day bottling operations and assist [Founder] with managerial duties.
• Bottling staff: 5-6 full-time factory employees who will work every day from 8:00 am – 5:00 pm.
• Delivery staff: 3–4 full-time drivers who will be responsible for delivering the bottled water to the grocery stores and convenience stores.
• Office staff: 3–4 employees who will manage the phone calls, scheduling, accounting, marketing, clerical, bookkeeping, billing, and any administrative task required.
• Brand manager: 1 full-time employee who will be responsible for developing and launching the brand; manage the website, and social media accounts.
• Janitorial staff: 2 employees who will clean the factory once it has closed for the day.

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come primarily from its bottled water sales. The company will sell the bottled water in local grocery stores and convenience stores. As the company’s revenues increase, it will look to gain a wider distribution area.

The warehouse lease, equipment, supplies, and labor expenses will be the key cost drivers of [Company Name]. The major cost drivers for the company’s operation will consist of:

• Salaries
• Manufacturing supplies and equipment
• Sourced water
• Business Insurance
• Lease on business location and utilities
• Taxes

Ongoing marketing expenditures are also notable cost drivers for [Company Name].

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $225,000 of debt capital to open its bottled water and distribution company. The capital will be used for funding capital expenditures and warehouse build-out, hiring initial employees, marketing and branding expenses, and working capital.

Specifically, these funds will be used as follows:

• Factory design/build-out: $100,000
• Equipment and supplies: $75,000
• Working capital: $50,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

 
5 Year Annual Income Statement

 
5 Year Annual Balance Sheet

 
5 Year Annual Cash Flow Statement