Bottled water companies are involved in the bottling and distribution of drinking water to customers. Your bottled water company, whether filtered, distilled, or natural spring water, will keep your clients hydrated. Starting your own bottled water company may be a rewarding experience that enables you to generate money while also assisting your clients in living a healthy lifestyle.
Table of Contents
Follow these ten steps to start a bottled water business:
Make a plan for your bottled water business.
Create a legal entity for your bottled water business.
Fill out a tax registration form for your bottled water business.
Create a Business Bank Account and a Credit Card
Create an accounting system for your bottled water business.
Get the Permits and Licenses You Need for Your Bottled Water Business
Purchase Bottled Water Business Insurance.
Create a brand for your bottled water business.
Make a website for your Bottled Water Business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This straightforward guide to beginning a bottled water company has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting a bottled water business?
Storage tanks, filling machines, water treatment machines, filters, conveyors, sealers, water sterilisers, water dispensers, bottle loaders, vehicles, and staff to operate in the facility are all costs for launching a water treatment plant.
For a “bare bones” facility, startup expenses might vary from $500,000 to $750,000. However, depending on the scale of your organisation, some plants may need additional cash, up to $1.5 million or more.
You will also need a licence from the United States Food and Drug Administration (FDA). A permit from your state’s health agency is also required.
Finally, to operate your factory, you’ll need a specialised bottle supply, a water source, and personnel. This is an extremely time-consuming task.
What are the continuing costs of running a bottled water business?
The ongoing costs are substantial. Maintenance on a small facility may cost tens of thousands of dollars each year, while a medium to large-scale bottled water factory might cost as much (or more) every month.
Utility expenses might also be expensive owing to the purification and bottling of water.
Labor expenses are also significant since most workers expect to be paid a full-time wage with benefits. Tens of thousands of dollars each month may be spent on liability insurance, health insurance, unemployment insurance, 401(k) matching and administrative services, and worker’s compensation insurance.
Who is the intended audience?
Customers are often business entities such as local food shops. Some small enterprises, however, sell directly to customers or corporations.
How does a bottled water company earn money?
A bottled water company generates revenue by charging clients for the processing and bottling of potable water.
How much money may you charge your customers?
Bottled water has a significant profit margin. If you sell to supermarkets, you may be able to charge $1 to $2 per bottle, or a set amount per truckload or pallet. Most businesses plan for frequent shipments in order to position themselves as “anchor clients.” You may or may not offer your items at a cheaper price to get these discounts, but your income will normally grow as a consequence.
How much money can a bottled water company make?
Profits might vary from 100 percent to 500 percent or more.
How can you increase the profitability of your company?
Entering specialty industries such as flavoured bottled water, sparkling water, spring water, and mineral water may help your firm grow even more profitably. Some firms provide flavoured mineral water, flavoured sparkling water, and sports beverages as speciality lines of water.
Finally, think of selling designer waters, seltzer waters, club soda, and flavoured soda.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Establishing a formal business organisation, such as an LLC or corporation, shields you from personal liability if your bottled water company is sued.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for Federal Business Licensing
Bottled water is regulated by the Food and Drug Administration (FDA). Good Manufacturing Practices (GMPs), identification standards, and labelling requirements are all covered by FDA rules for bottled water.
Requirements for State and Local Business Licensing
To run a bottled water company, certain state permissions and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
Small Business Sales Tax.
For information on local licences and permissions, visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Promote and Market a Bottled Water Company
Marketing and distribution are critical in this industry. Grocers, vending machine firms and operators, stadiums, event venues, and other large-scale commercial organisations and activities that need high-volume bottled water supply should be your target market.
How to Keep Customers Returning
Make certain that you keep your commitments and that your price is competitive. This industry is severely commoditized. Frequently, the company that fulfils deadlines and has the lowest (or at least competitive) price wins.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.