water refilling station business plan pdf

Water Refilling Station Business Plan Template & Guidebook

Starting a water refilling station can be a great way to make a substantial income. But, it can also be a daunting prospect if you're not prepared. With the right planning, however, you can create a successful business that serves your customers' needs and helps your business goals become a reality! The #1 Water Refilling Station Business Plan Template & Guidebook is the perfect resource to help you get started, with comprehensive instructions on how to develop a comprehensive plan for your business. With step-by-step guidance and tools, this guidebook will give you the resources you need to find success in the water refilling station industry.

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• How to Start a Profitable Water Refilling Station Business [11 Steps]

How to Write a Water Refilling Station Business Plan in 7 Steps:

1. describe the purpose of your water refilling station business..

The first step to writing your business plan is to describe the purpose of your water refilling station business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a water refilling station business:

The mission of [name of business] is to provide the highest-quality water refilling services to our valued customers through ethical and innovative practices, utilizing the finest-grade resources, and striving for environmental sustainability in everything we do.

2. Products & Services Offered by Your Water Refilling Station Business.

The next step is to outline your products and services for your water refilling station business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your water refilling station business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your water refilling station business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your water refilling station business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a water refilling station business?

• Reverse Osmosis (RO) system
• Storage tanks, pipes, and piping materials
• Automatic/Semi-automatic bottle cleaning and filling machines
• Packaging material for bottling
• Office equipment such as computers, printer, fax machines, etc.
• Heavy-duty vehicles for delivery of water containers
• Business permits from the local health department or the Bureau of Food and Drugs (BFAD)

5. Management & Organization of Your Water Refilling Station Business.

The second part of your water refilling station business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your water refilling station business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Water Refilling Station Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a water refilling station business varies based on many different variables, but below are a few different types of startup costs for a water refilling station business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your water refilling station business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your water refilling station business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your water refilling station business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Water Refilling Station Business Plans:

Why do you need a business plan for a water refilling station business.

A business plan for a water refilling station business is needed to provide an outline of the goals and objectives of the business. It also provides a detailed review of the financial projections, operational strategies, competitive landscape, target market, and potential risks associated with the business. A well-constructed business plan helps guide the growth of the business and enables entrepreneurs to secure necessary financing or investments.

Who should you ask for help with your water refilling station business plan?

It is important to seek help from experts, such as a business consultant, an accountant, or a lawyer, who can provide advice and guidance on setting up a business and writing a business plan. Additionally, it might also be helpful to speak to experienced entrepreneurs in the industry to learn about any potential pitfalls associated with water refilling stations.

Can you write a water refilling station business plan yourself?

Writing a business plan for a water refilling station requires research and analysis. It is best to consult a professional business consultant who has experience in the industry and knowledge of the financial and operational aspects of running a business. They can help create an effective and comprehensive plan that includes market analysis, financial projections, operational processes, marketing plans, and other key components to ensure success.

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How to Start a Water Refill Station Business

By: Author Tony Martins Ajaero

Home » Business ideas » Food Processing Industry » Water Refill Station

Do you want to start a water refill station? If YES, here is a complete guide to starting a water refill station business with NO money and no experience plus a sample water refill station business plan template. 

There will always be a huge demand for water even as there are several types of water in existence such as mineral water, purified water, flavored water and so on. However, since most Americans have come to distrust the water that flows from their tap, many have turned to taking bottled water.

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Changes in how people view the environment has made water refilling stations to receive a boost as one can bring their own containers to refill water without having to buy new bottles all the time as most of these bottles aren’t always recycled and they end up degrading the environment.

Refilling water is usually cheaper than having to buy retailed bottle water. A water refilling station makes use of a kiosk to distribute and provide water to its target customers. This is a very lucrative business especially if you are one that is environmentally conscious.

This business requires that you to know how to conduct an analysis of the water so that you will be able to determine how sanitary the water is. Most water refilling entrepreneurs are those that have worked in the waste water industry and so have an idea of how to source as well as handle water and make it drinkable.

Just like any other business that you might be looking to start up, it is important that you conduct a thorough research about the business so that you do not end up wasting money and time on a venture. If you have had no prior experience in this industry, then conducting a thorough research is very necessary especially if you are not going to be buying a franchise.

Get in touch with those that are running the business and ask vital questions, you might even need to work for someone running such a business for a period of time so that you have an idea about the business. It is important that you source for a reliable supplier to provide you with the water refilling and purification equipment as well as the jugs that you will use to deliver and store the water.

The reason why it is important to find a reliable supplier is so that you can get your equipment and supplies at a low cost that will help you start off and sustain your business. You might need to contact several suppliers in order to check out their rates and since most businesses are now online, it will be easy enough for you to check out reviews about their products and services.

writing a business plan for your business is very necessary as you will not only outline the vision behind your business in this document but you will also need the document to guide you throughout the course of running the business.

If you are looking to source for start-up capital from external sources, then it is vital that you have a business plan at hand as this is how you will be able to convince investors to invest in your business. Writing a business plan involves certain technicalities and if you aren’t proficient enough, you can engage a professional to help write one for you.

Steps to Starting a Water Refill Station Business

1. understand the industry.

According to statistics, in the united states, only 24 percent of disposable plastic bottles are recycled as there are more than 600 tons of bottles sent to the landfill.

Water bottles that are disposable often consume important resources such as water and petroleum. In 2006, about 30 billion plastic water bottles were purchased by Americans, which means that about 17 million barrels of petroleum were used in the production of these bottles.

Also, three times the volume of water is needed to produce these bottles and this is discounting the water that will be used in the bottle.

The growth in the number of water refilling stations all over the country has to do with the rise in demand for clean water as a number of people do not trust the water that comes from their taps and are becoming environmentally conscious about buying bottled water because of the environmental degradation caused by littering these bottled water all around.

The water refill stations have really come in handy especially in states that experience droughts. However, the growth of water refilling stations has led to price wars as the fight to get a fair share of the market continues. This hasn’t really allowed the industry to grow as expected as other policies and strategies are not able to be implemented.

2. Conduct Market Research and Feasibility Studies

• Demographics and Psychographics

The demographic and psychographic composition of those that require water refills are commercial entities, distribution companies, environmental conscious individuals and residential homes. Therefore, one can say that the demography for the water refill business is encompassing depending on the promotional activities of the entrepreneur.

3. Decide Which Niche to Concentrate On

A water refilling station often collect, test and redistribute quality water to those that are not looking to buy bottled water. There are not so many niche ideas available for this kind of business; however the few niches that exist will depend on what scale of business you are running.

Large scale water refill stations will be able to offer more niche ideas as opposed to small scale water refill stations. Below are some of the niche ideas within this particular business that you can specialize in;

• Water Refilling Services
• Sale of Water Refilling Equipment
• Sale of Bottled Water
• Consultancy Services

The Level of Competition in the Industry

The level of competition that exists for the water refill station business has a lot to do with the scale of business the entrepreneur is running and the niche as well. If you are only refilling water for those in the residential segment, then you will not need to bother about competing with those that supply the commercial segment.

Even though there are alternatives for customers such as bottled water and tap water, customers who are environmentally conscious and those who do not want to have to keep buying bottled water are those that patronize water refilling stations and as long as what you offer is of high quality, you will continue to have people patronize you from far and wide.

Therefore, if you are looking to start your water refill business in the united states, you should be aware that not only will you be competing against other small and large scale water refill stations but also against other alternative suppliers of water and you should therefore be adequately prepared.

4. Know Your Major Competitors in the Industry

In every industry, there are always brands that are well known and the water refill station is no different. Some of the well-known brands have either been in business for a long period of time, some are popular due to how they conduct their business; while some adopted the right promotional strategies to create awareness for their business.

Some of the well-known water refill stations in the United States are;

• Aqua Primera Corp.
• Smart Water Stations (USA)
• H2O Life Source

Economic Analysis

Refill stations are doing a great job of ensuring that the re-use culture is coming back as re-using a water bottle helps to cut down on the resources and energy that go into making a single bottled water. Also, water refilling stations help save up on water as water is being taken from different sources and treated before being sold to consumers.

Bottled water requires energy throughout its lifecycle from sourcing for the water, treating it and then sending it to the bottling plant in order that it might be filled into bottles, packaged and transported to its destination and then the recycling and disposing of the empty containers afterward.

Several public parks are cutting back on the sale of bottled water to visitors in order to reduce the litter that is always left behind after the visitors have left. However, this has brought a rift between the bottled water association and that of the water refillers.

5. Decide Whether to Buy a Franchise or Start from Scratch

When starting certain businesses, you are faced with the option of either starting the business from scratch or having to buy a franchise. While either option has its pros and cons, your decision should be to choose the one that will best allow you to achieve your intended goals and objectives.

If you are looking to start your business on a small scale, then starting from the scratch isn’t a bad idea as it will allow you gather experience about the business and grow the business at your pace.

However, starting from the scratch can be a bit overwhelming because you will be in control of all the vital aspects of your business; which is why it is often advised that entrepreneurs have a business plan in place as this will act as a guide for them especially in the early parts of running the business.

If you however intend to buy a franchise, some of the benefits of that include; having some sort of guidance in running your business, getting training for your staff and not having to worry about certain vital aspects of running the business.

The disadvantages with a buying a franchise is that you will not be in total control of your business and should you buy the wrong franchise, you will not be able to achieve your goals and objectives. It is therefore advised that you conduct a thorough research on the varying franchise opportunities available in order to choose the one that best aligns with your budget as well as your goals and objectives.

6. Know the Possible Threats and Challenges You Will Face

There is no business no matter how duly prepared the entrepreneur was that will not encounter challenges and threats. While some of these threats and challenges can usually be anticipated and prepared for; some cannot be prepared for. Once these kinds of threats and challenges occur, the best that the entrepreneur can do is to remain focused and optimistic that the threats and challenges are well contained.

Some of the possible threats and challenges that you will likely face when starting your water refill station include; strict regulations from the government or industry, alternative substitutes due to changes in customer tastes and preferences and competition from already existing competitors.

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

One important decision that could have a huge impact on your business and how you can attain your set goals and objectives is the best legal entity to use.

Even though there are various legal entities that exist for entrepreneurs looking to start their business in the United States, not all are appropriate for a water refill station, which is why it is best to make your findings about the business you are looking to start especially as regarding the legal entity or you engage the services of an attorney to help you out.

All the legal entities that are in existence in the United States have their pros and cons and this is what you should take into consideration when looking to make your decision about what legal entity will be best for you. The attributes include; ease of ownership, setup and control; flexibility of the legal entity; extent of liability, investors’ expectations as well as taxation issues.

Anything ingested is highly regulated in the United States and the water refill business is no different. The government sets standards in such a way that there are almost no contaminants from water refill stations.

Stations that cannot adhere to standards often fall into trouble and due to how unpredictable the nature of the business can be; there are certain legal entities that should not be taken into consideration at all by the entrepreneur. There are five legal entities that exist for an entrepreneur and they are; sole proprietorship, partnership, Limited Liability Company (LLC), S Corporation and C Corporation.

The sole proprietorship and partnership legal entities though simple will not be sufficient for this kind of business. Most entrepreneurs starting this business often choose to incorporate by either choosing an LLC or a corporation.

These legal entities are sort of similar in nature because the businesses operating under these entities are regarded as a distinct personality from the owners, thereby offering the owners limited liability cover on their personal properties. However, while the LLC is simpler in nature, the corporation is more rigid and involves a lot of procedures before it can be set up.

8. Choose a Catchy Business Name

While you might still have the idea of starting a water refill station, one important thing that you need to start considering early on is what name you intend to call your business. The name of a business is important because this is what you will be identified by and if the name is memorable or unique, then it will be easy enough for your target customers to remember your business and to even refer you to others.

Ensure that the name isn’t in use by any other business especially those in your industry. Below are some of the catchy business name ideas that will be suitable for your water refill station;

• Aqua Fresh Corp.
• Evis Water Refill Inc
• Messers Fresh Water Inc
• John Paul Aqua Group
• Clear Rush Inc.

9. Discuss with an Agent to Know the Best Insurance Policies for You

No matter how much you might have prepared for your new business, you cannot stop certain calamities – either manmade or natural – from occurring and affecting your business. However, while you might not be able to stop the impact of disasters on your business, you can however be fully prepared for it by ensuring that you have coverage in place that will protect yourself, business, employees and bottom line.

Choosing the best insurance policies might be a bit confusing and in order not to end up buying irrelevant policies, you can engage the services of an insurance agent or broker who is knowledgeable about your industry to advice you on the best policies to buy.

Below are some of the insurance policies that you should consider purchasing when looking to start your water refill station in the United States of America;

• General Liability Insurance
• Workers’ Compensation Insurance
• Commercial Property Insurance
• Health Insurance
• Overhead Expense Disability Insurance
• Motor Vehicle Insurance
• Business Owner’s Policy Group Insurance
• Mechanical Breakdown
• Casualty Insurance
• Professional Liability Insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

The water refill station is not where you will need to acquire an intellectual property protection before starting because you are basically refilling water either in your own provided bottles or that of your customers.

If you however feel the need to acquire intellectual property for your company name, logo or any other concept you feel is worth protecting, you can go ahead to do so; only know that acquiring an IPP in this sort of business is not considered a priority by most of the entrepreneurs in the industry.

11. Get the Necessary Professional Certification

If you are looking to start a water refill station and are wondering if you will need a professional certification of sorts before you can start the business, the answer is no. As long as you have the capital required in starting the business and have met all the requirements of the federal, state and/or local government; then you are good enough to start the business,

However, there are many entrepreneurs who along the way have felt the need to get professional certifications relating to the industry they are, but while this might give you a boost within the industry, the final consumer is not so concerned about this.

12. Get the Necessary Legal Documents You Need to Operate

Regardless of whatever business you might be looking to start out in the United States, you will require certain documents if you do not want to run into trouble of any sorts with the authorities. Legal documents differ depending on the kind of business and so it is necessary that you make findings from those running a similar business so that you have an idea of what documents you will need in order to run your business.

Alternatively, you can engage the services of an attorney to help you with the necessary documents you will need to run your water refill station business. Below are some of the documents that you will require in order to run your water refill station;

• Certificate of Incorporation
• Operating Agreement for LLCs
• Business Plan
• Insurance Policy
• Food Permit handler certificate
• Business License and Permit
• Employment Agreement
• Employer Identification Number (EIN)
• Federal Tax Identification Number (TIN)

13. Raise the Needed Startup Capital

When looking to start your water refill station business, your thorough research will reveal how much you would need to start the business and while the start-up capital might vary due to the area where you intend to run your own business, it will give you an idea of how much you will need.

If the capital is above what you have at hand, you have the choice of either waiting till your funds are complete or sourcing for capital from other sources and if you are going to be sourcing from people you do not know; then it is necessary to have a business plan in place in order that you might be able to convince them of the need to invest in your water refill station.

Some of the financing options that you can therefore explore when looking to start your water refill station are;

• Generating your start-up capital from personal savings and sale of property or stock
• Sourcing for soft loans from wealthy family members and friends
• Applying to your local community or commercial bank for a loan
• Sourcing for loan from an angel investor
• Getting yourself a business partner to come up with part of the start-up capital

14. Choose a Suitable Location for your Business

One of the most important decisions that you will make which will have a huge impact on your business is the appropriate location for your water refill station. The location for every business matters which is why entrepreneurs have to take their time in choosing a location because the wrong location could stunt the growth of the business or cause it to fail.

The water refill station is a very important one and as such is highly regulated by the government because of how harmful contaminated water can become to consumers. Therefore, the area and location which you have chosen to run your business must be approved by the government.

The location you should choose for your business shouldn’t be one that cannot be easily accessible by your employees or customers that will want to visit your business. Also, ensure that the facility is conducive enough. You must decide whether you intend to lease or buy the facility depending on what your budget is.

If leasing, ensure that the necessary clauses guiding you are put in place especially should you intend to relocate to another location. Engage the services of a reputable real estate agent who has a thorough idea about your kind of business to help in securing the right location for your business.

15. Hire Employees for your Technical and Manpower Needs

As a water refill station, you make money by collecting, testing and then redistributing water. This water can be sold in bottles or sold to larger companies who then massively distribute it.

Most times, customers require that you deliver the refilled containers to their preferred destination and so getting a delivery vehicle is very vital as you will also need to distribute refilled containers to various outlets that will in turn sell to their own customers.

A delivery vehicle will add to your overall costs but it is very necessary that you purchase one if you intend to have a successful business.

There are various equipment that you would require in order to be able to set up your water refilling station; the costs for these equipment will vary depending on the area you are looking to run the business as well as the make of the equipment.

The equipment that you will need to start and run your water refill station successfully include; multimedia sediment filter, active carbon filter, water softener tank, reverse osmosis membrane, polishing carbon, ozone generator and an ultraviolet lamp. Administratively, you would require a computer, phone, filing cabinets, software and internet connection.

Building a solid business structure is very necessary if you want your business to become a success. Ensure that you not only hire professionals but also those that identify with your set corporate goals and objectives and will therefore be committed to ensuring that you achieve what you have set out to.

You will require those who will be in management, marketing as well as those who will operate and maintain the machines. If you are therefore looking to run an effective water refill station, you will need at least five people to work with you in achieving your set goals and objectives.

The Service Delivery Process of the Business

On a daily basis, a water refill station has to source water for cleaning and then process the water through machines for redistribution. Before the water is redistributed however, it has to be sampled in order to ensure that the treatment process went well.

Once the sampling results fail to meet with the standard, the station will need to check its machines. Various water refilling machines distribute the treated water to various containers and then these containers are either taken away by the customers themselves or delivered to different outlets or destination.

16. Write a Marketing Plan Packed with ideas & Strategies

Marketing is one of the most important aspects of a business and entrepreneurs just starting out a business or already running one cannot deny how vital marketing is. Marketing has to do with anticipating the needs of your intended target market and then striving to be able to fulfill such needs.

Marketing also puts a business in the notice of other similar businesses as well as the entire public and so you not only get to penetrate the market and get a fair share for yourself, you also get to compete fairly against your competitors and depending on your strategies have leverage over them.

Before your marketing strategies can become very effective, the area where your business is located plays a huge role. If you are located in an area that is not too conspicuous, you will have to budget more money in order to be able to achieve effectiveness.

However, if your business is an area where people notice it as they drive or walk by, then the very fact that your business is visible is enough marketing on its own.

Carrying out a thorough research before you draft your marketing strategies is very important as it allows you to know who your target market is, what it is they expect from you and what you should expect from them as well. Also, the research will enable you identify your competitors, what their strategies are and how you can take advantage of their weaknesses.

Before you can however develop marketing strategies, you would need to outline a marketing plan that clearly shows what goals and objectives you are looking to achieve and what milestones you intend setting.

A good marketing plan will act as a guide for whatever marketing strategies you are looking to create and will ensure that you are able to achieve all your intended goals and objectives. Below are some of the marketing ideas and strategies that you can use in promoting your water refill stations;

• Recruit a competent marketing team and empower them to physically meet with clients in order to promote your water refill business
• Ensure that your water refill business is listed in accredited yellow pages and online directory
• Make use of social media platforms such as a Facebook Page, Twitter account, and Instagram to promote your business
• Advertise your water refill business in local newspapers and magazines and also on radio and television stations
• Distribute handbills and fliers about your water refill business in various strategic locations
• Create a standard website and use this to promote your services to your target market

17. Develop Iron-clad Competitive Strategies to Help You Win

Any entrepreneur starting a profit-oriented business knows that sooner or later, he or she would have to contend with competitors either from the same kind of business or from an alternative kind of business for which the product or service can be substituted for and therefore should be prepared for all sorts of competition by coming up with effective competitive strategies that will enable the entrepreneur retain a fair share of the target market.

This is why it is important for entrepreneurs to have a passion for their business as this will allow them thrive when they have to face off their competitors.

Some of the possible competitive strategies that you can use in winning over your competitors in this particular industry is to ensure that you come up with the right promotional strategies that will increase awareness for your business; offer your customers incentives every now and then and have the best customer service relationship with your customers.

18. Brainstorm Possible Ways to Retain Clients & Customers

The water refilling business might be a lucrative one but one of the tasking activities it faces is how to attract customers to its business and there is no business that can remain in existence for long if there are no customers, as this is how businesses can generate the revenue it needs to grow its bottom line.

Entrepreneurs know how important customers are which is why several strategies are being crafted to ensure that customers are being attracted to the business.

However, while attracting customers is very important to the continued success of a business, ensuring that a high number of these customers are retained is also very critical as this means that the company spends less on promotional activities while continuing to enjoy a steady stream of revenue from its customers.

According to research, companies that retained a high number of their customers always had an advantage over those that didn’t.

There are several ways you can increase retention of customers for your business and one of them is ensuring that you provide them with quality products and services. Customers want to know that you consistently adhere to standards when sourcing and treating your water.

Once they can vouch for the quality of your water, they will continue to patronize your business. Another thing that customers value is the relationship you develop with them, which is why many companies invest highly in their customer service.

Ensure that complaints are quickly attended to and resolved. Also, ensure that you give out incentives such as discounts every now and then and as your customers come to expect this from you, they’d help spread word about your business while sticking to your brand.

19. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

When starting any business, one of the vital aspects that cannot be taken for granted is how you can promote your business in such a way as to get the attention of your intended target market.

The good thing about promoting your business is that not only do you get to boost awareness for your brand to your intended target market but a percentage of those whose awareness you have caught will be converted to revenue which is how businesses achieve their sustainability.

The huge benefits that come from boosting awareness for one’s brand is why many companies – especially the successful brands – set aside a particular sum of money every year to promote their brand to their target market. These companies know that regardless of how much they spend in promoting their brand, the many ways they benefit from the promotion far outweighs the money that they have put in.

However, like every important aspect of any business, it is vital that a thorough research be done before strategies are crafted as the wrong strategies would mean the company losing money.

One thing to note is that not all strategies will be effective and so if you intend to cash in on your target market, finding out which strategies will catch their attention and convince them to patronize your products and or services will be to your advantage.

The internet has made it very easy for entrepreneurs even those on a tight budget to effectively reach a wider audience. There are various platforms and algorithms that internet professionals make use of when helping businesses promote their brands and so you must ensure that you engage the services of those that have successfully helped other brands achieve their goals and objectives.

Some of the strategies that you can use in boosting awareness for your brand and creating a corporate identity for your water refill business;

• Coming up with incentives to ensure that awareness for the business increases
• Distributing handbills and fliers in various strategic locations around the area where your business is located
• Installing flexi banners at strategic locations around the area where your business is located
• Joining a local association in order to network and increase visibility for your business
• Using social media platforms such as Facebook and Twitter to increase awareness for your business
• Creating a website and ensuring that it is strategically optimized so that it could come out tops in different search engines.

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Water Purification Business Plan

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H2O Industries

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

H20 Industries, Inc. (H20 Industries) provides the service of ion exchange portable tanks. This is the process of purifying water for industrial purposes. H20 Industries will take advantage of an unsatisfied market need for segregated resin regeneration on a portable basis. The company will primarily focus its marketing strategies on offering segregated regeneration services to the untapped market of customers who require high-quality regeneration for their deionized (DI) water treatment facilities. The facility that H20 Industries will utilize is located in Newark, California and is already in limited production. Full production will begin at the end of September, with sales growing gradually to near capacity by the end of the first year, with very healthy gross sales in the first year, and increasing in the second and third years.

1.1 Objectives

The primary objectives are:

• To segment the market for portable regeneration service by stressing H20 Industries’s capability at providing segregated regeneration. The goal is to reach monthly sales of 1,710 cu ft of segregated resin by the end of the first year.
• To build up a dealership network of 15 knowledgeable and efficient water service companies who will represent H20 Industries in areas outside direct sales from the factory.
• To set up a bulk regeneration facility with a capacity of 40 cu ft daily, and sell its full capacity in the large general portable exchange service market through its own sales force, and through a dealership network.

1.2 Mission

H20 Industries’s mission is to segment the market for pure water by providing niche products to specialized industry sectors who are otherwise not properly serviced by large pure water suppliers. Segregating a customer’s H20 Industries resin and regenerating it on a portable tank basis to hospital dialysis units is an excellent example of such a niche product that stresses quality and service to users who are prepared to pay a premium price.

1.3 Keys to Success

H20 Industries’s primary keys to success are:

• Good quality control in the factory . Customers for high purity water business have a very low tolerance threshold for flaws.
• Fast response . In the case of most of H20 Industries’s customers, the cost of the water is not a major element in their over-all costs, but a very expensive shut-down could result due to poor or slow servicing.
• High-profile allegiances . Key to over-all company success is connected closely with success in achieving the goal of developing a dealership network of service-oriented water companies.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

H20 Industries took over a customer base and a small quantity of assets from a predecessor company. By moving to a new location with more space, and by designing an efficient productive capability, H20 Industries will be ready to aggressively penetrate the growing market for portable DI exchange by October 1999.

2.1 Company Ownership

H20 Industries was established in October 1998 through the purchase of the assets of Commercial Waters Systems, Inc. (CWSI). CWSI was an under-capitalized, cash flow-starved DI exchange tank service provider. Three hundred sixty of the shares of H20 Industries are owned by David R. Smith, vice president sales and applications of PROSYS, a large manufacturer and system designer of water treatment equipment. Five hundred sixty of the shares are owned by John Jones who is regional sales manager for DUFF. The remaining 200 shares are currently held by the daughter of the seller, but are expected to soon be transferred to the new owners.

Additional investors have expressed a willingness to invest. This would help bring in needed administrative expertise, while also increasing the equity base.

2.2 Start-up Summary

Assets of a former operating company were bought out and customers of the former company continue to be serviced by the purchasing company, H20 Industries, partly from continuing operations and partly from farming regeneration work out. However, this plan is being written as a start-up primarily because there are no reliable financial figures for prior years for comparison purposes, and partly because of the move to new facilities and the sizable investment in new plant and equipment involved. Due to certain misrepresentations by the seller, the agreed sales price is under protest. It is expected that the matter will be satisfactorily resolved by payment of a much reduced amount.

The chart and table below summarize the start-up requirements for H20 Industries.

2.3 Company Locations and Facilities

The facilities are located in a rented building on an industrial estate in Newark, California.

A description of the technology involved in the production can be found in section 3.5 (Technology). The following is a description of the production layout.

• City water is fed into the building and goes directly to a carbon filter tank to remove organic materials and chlorine.
• A centrifugal pump is installed, in the unlikely event that city water pressure falls below 40 pounds per square inch (psi).
• A hot water boiler is provided to supply hot water (100 degrees F) from part of the incoming city water. This water is needed for anion treatment due to the specific gravity of the caustic material.
• The heated water then passes through a cation and an anion filter tank.
• The deionized hot water goes to the caustic tank where it mixes with the caustic material used to regenerate at the anion pad.
• Part of the unheated incoming city water is deionized by passage through similar cation and anion tanks. These tanks, as well as the tanks deionizing the heated in-coming water, are regenerated automatically at night when production is shut down.
• Water, not H20 Industries, is used at the spent tank staging area to empty the incoming tanks into the separation cones, and more water (H20 Industries) goes to the cation regeneration pad for use in adduction as well as flushing of the regenerate.
• The rinse water, as well as the acid and caustic solutions, now pass into an 8,000-gallon blue tank where, with the help of compressed air for mixing, neutralization takes place to obtain the allowed Ph level.
• A 500-gallon neutralization tank and a 250-gallon polishing tank are provided prior to disposal of the waste water into the city sewer system.

Products and Services

The company is in the water purification business. H20 Industries is engaged in a specific branch of this business called “Service deionization.” Within this branch, the company plans to emphasize a further service specialization known as “segregated regeneration,” as opposed to “bulk regeneration.” This concept is explained in the following sections.

3.1 Product and Service Description

The service products offered by H20 Industries are segregated as well as bulk regeneration of portable H20 Industries exchange tanks. The service is offered in three tank sizes of 3.6, 2.5, and 1.4 cubic feet (cu ft). In these sizes, the company will offer:

• Mixed bed (combination of anion and cation regenerated resin)
• Cation regenerated resin
• Anion regenerated resin
• Carbon (used for pre-filtering)

The application of portable deionized water is broad. Practically all industries using water in processing are potential accounts. Size of company is rarely a determining factor. There are applications in electronics and high pressure boilers where flow rates of several hundred gallons per minute are provided by portable exchange systems. The main unique benefits are:

• The client does not have to incur substantial capital costs to install an in-house deionization plant. This could run over $50,000. The company can merely rent the portable tanks (or buy them for approximately $1,200 each) and pay for the regeneration service when the tanks become depleted.
• The company also saves by not needing experienced technicians to maintain an in-house plant.
• Space is another important factor. An in-house H20 Industries capability requires a great deal of space, whereas a portable tank system using flexible hose connections can fit virtually anywhere in minimal space.
• Ease of installation. H20 Industries capability can be arranged virtually in a day and can be easily expanded to accommodate growth.
• There are no chemicals, nor regenerate waste to be handled or concerned with on-site..
• Flexibility in water quality provided. Resin types can be easily changed in tanks if water quality requirements change.
• Even locations that have their own in-house H20 Industries system often use portable DI as a back-up since a shut down can be very expensive.

Providing the service to a customer is simple, usually requiring only minimal equipment. H20 Industries is available from a large competitor, US Filter and a few small competitors, such as Fluid Solutions of Lowell, MA. However, none of the competition can provide segregated regeneration (See Competitive Analysis below).

3.2 Competitive Comparison

In the Northern California area, outside of a small company in Lowell which has to farm out its regeneration business to a “DI” company in Nevada, Simply Clean in Oregon, and a couple of independent Culligan agents, there is only the very large, fully-integrated US Filter (owner of Culligan) to compete with. This company, by virtue of its size and involvement in all fields of water treatment, is not suited to satisfying small users of DI, nor are they able to respond to niche needs. For example, US Filter cannot handle segregated resin. All resin treated by US Filter is regenerated on a bulk basis, which means that various customers’ depleted resin tanks are combined. This is not a problem for many users of DI, but the dialysis department of a hospital might well object to their resin being co-mingled with resin used in the metal plating industry. H20 Industries plans to specialize in portable segregated resin service. US Filter can try to service customers with a desire for segregated DI by promising to always supply tanks with new resin, however, there are technical problems with this.

US Filter’s prices for cation and anion regeneration are $31.25/cu ft and mixed bed $43.05/cu ft. H20 Industries’s prices for the same bulk regeneration are $32 and $43, respectively. The primary market thrust of H20 Industries’s sales will be the segregated regeneration which US Filter does not offer. This product sells at a premium ($57/cu ft and $63/cu ft, respectively). Some small players in the market offer regenerated resin (not segregated) in a price range of $63 to $80 per cu ft (mixed bed).

3.3 Sales Literature

Sales literature will be written and printed. A provision for this has been made in the projected sales and marketing expenses.

3.4 Fulfillment

The service provided by H20 Industries is the regeneration of ion exchange portable tanks. The tanks themselves are supplied to customers on either a monthly rental basis or offered for sale. These tanks, and any other hardware, are readily available from a number of suppliers. By virtue of the owners’ long involvement in the industry, they are fully knowledgeable of existing sources for all hardware, including resin, as well as the supply of the two major chemicals used in the process of regeneration. The only other variable cost of production is the salt used in the brine bath, this is also readily available from a number of suppliers.

3.5 Technology

Ion exchange is a major means of purifying water for industrial purposes. The degree of purity depends on the source of the water and it’s use. Companies, ranging from car washes to the pharmaceutical and semiconductor industries all need various amounts and degrees of purified water. Ion exchange is a chemical process by which ions, or ionic substances that are considered “undesirable” in water, are reduced or removed from water by use of ion exchangers or resins. Most ground water contains unwanted dissolved substances, such as calcium and magnesium, whose molecular structure contain charged ion particles.

The most common impurities with ions of a positive charge are: sodium, calcium, magnesium, potassium, iron, and manganese. These are called cations.  The unwanted dissolved substances having negative ion charges, known as anions, are: bicarbonate, chloride, carbonate, sulfate, nitrate, and bisilicate. When a substance separates into ions, each ion is now able to combine with another ion with opposite charge, even if that ion is from a totally different type of molecule. Substances only separate into ions when immersed in water molecules. For example, a molecule of hydrochloric acid is made up of a hydrogen atom and a chloride atom. Hydrochloric acid (HCL), when immersed in water, will split apart into one positively charged hydrogen cation (H+) and one negatively charged chloride anion (CL-). If sodium hydroxide (NaOH) were added to this solution, the NaOH would split into Na+ and OH-, which would combine with the opposite charges of the hydrochloric acid ions to form sodium chloride, better known as “table salt” (Na+CL-) and leftover hydrogen and hydroxide atoms (H+OH-). The field of deionization, known as DI for short, utilizes this natural phenomenon by designing a cation exchange resin which will substitute hydrogen atoms (H+) for virtually all of the other cations, and designing an anion exchange resin which will substitute hydroxyl ions (OH-) for virtually all of the other anions. By means of this process we end up with only H+ and OH- which is equivalent to H2O (water). By forming this demineralized water, we create water which is no longer a conductor. We can measure the purity using an ohm meter. Ohms measure resistance. The higher the ohm count, the lower the conductivity. H20 Industries is routinely formed to 18 mega ohms per centimeter, which is very close to zero conductivity (18.23 at 25 degrees Centigrade). Without giving lengthy chemical explanations, what happens in the process is as follows:

• City tap water is first passed through a carbon filter to remove chlorine, sand, and other unwanted substances. Sometimes, reverse osmosis and ultraviolet light are used to remove non-ionized substances, organic materials, etc., prior to the deionization stage.
• The water then passes into a specially-treated cation resin. This resin takes the form of small beads located inside a tank. The positively charged ions from the unwanted dissolved minerals will attach themselves to the resin. This happens because the resin contains an over-equilibrium abundance of hydrogen ions (H+) which are “bumped off” of the resin beads and replaced by the positively-charged, unwanted, in-coming cation ions. The “bumped off” free hydrogen ions then pair up with anions which are left in the water to form acids.
• The “de-cationized” water then passes to a tank of anion resin to catch the unwanted negatively charged ions that have dissolved in the water. Here, the anions and the anion portions of the acids attached to the hydrogen are attracted to, and held by, the positive sites on the anion exchange resin beads. They do this by kicking off the negative hydroxyl ions that were put on the beads (again in over-abundance). The leftover hydrogen portions of the acids (H+) now join the freed hydroxyl ions (OH-) to form water (H2O).
• If a very high degree of purity is called for, the water will next pass into what is called a “mixed bed” which normally contains resin in a ratio of one part cation resin to two to three parts anion. Steps 1-3 occur again here thus catching the last traces of unwanted ions of the dissolved substances.
• The tanks of resin will continue to purify the water flowing through them until the resin balls expand and their capacity to catch ions is depleted.
• The water flow must stop until the tanks are replaced with tanks containing regenerated resin.
• To regenerate the cation resin, a solution of acid is used to bombard the resin removing all the previously-caught positively-charged ions. Then the tank is flushed to remove any excess acid. The anion resin tank is also given a caustic solution to bombard the previously-caught negative ions. The anion resin is then flushed to remove any residual caustic solution.
• The tanks now contain regenerated resin and the ion exchange process can continue with the tap water turned on.

The regeneration process can take place at the location where the water is being purified, however, most users of H20 Industries do not install the expensive equipment to do this but simply arrange for a service provider, such as H20 Industries, to replace the tanks and perform the regeneration process off-site.

As high-tech industries, such as electronics, communications, and pharmaceuticals, continue to grow, there will almost certainly be increasing use of deionization technology and deionized water. As instrumentation and analysis procedures improve, controlling and monitoring the deionization process will be easier and more efficient, and this will, undoubtedly, help create new uses for deionization that have not yet appeared, as well as make H20 Industries more affordable to sectors now using other methods of purification. As more people in the water treatment industry become familiar with the DI process, the industry for H20 Industries and equipment will benefit.

3.6 Future Products and Services

In addition to bulk and segregated portable H20 Industries, the company plans to expand sales of filters and DI cartridges. These sales have been disregarded in this business plan, but they could become more significant in the future. These products lend themselves to mail order type sales, as they are small and lightweight. Cartridges are disposable items. H20 Industries also has plans to develop a reusable shipping container for its smallest (8″ x 18″) DI exchange tank so that this can also be shipped via UPS. This product will be marketed on a website, as well as through conventional direct mail and yellow page advertising.

In the future, a logical off-shoot of the DI business is reverse osmosis (R/O) used in conjunction with DI exchange tanks. The inclusion of R/O in front of the DI tanks will extend the capacity of an exchange tank by 1000%. This addition to the product line could become a substantial element of total company sales.

Reverse osmosis and electric reversing deionization are beginning to compete with exchange tank DI technology. H20 Industries plans to offer service contracts to maintain this equipment at the customer’s location. This equipment may to either sold or leased.

Market Analysis Summary how to do a market analysis for your business plan.">

The total market in Northern California for H20 Industries is between 670,000 and 925,000 cu ft of resin annually. H20 Industries’s total productive capacity will be only 36,400 cubic feet, or 3.9-5.4%. Since H20 Industries will have the unique capability of performing segregated regeneration, which is of special interest to the medical industry (dialysis, labs and pharmaceutical), the company will emphasize sales efforts in this segment for high purity H20 Industries. This segment is estimated at 167,000 cu ft annually. Next in terms of marketing emphasis will be the electronic (223,000 cu ft) and machine tool industries.

4.1 Market Segmentation

The market for H20 Industries encompasses many industries, and within them there is a wide range of purity needs. At the low end, a car wash might use H20 Industries in the final rinse only. Their need for purity might be only .5 Megohms (Ohms measure resistance). Water is only a good conductor because of the quantity of dissolved solids in the water. As the ion exchange process lowers the level of total dissolved solids (TDS) the resistance, measured in ohms, increases.

A purity level of .5 Megohms is pure enough for a car wash final rinse cycle, but not even close to pure enough for a electronics wafer manufacturer. They would need 18 Megohms, at which point the water would be pure and incapable of acting as a conductor. Generally speaking, those sectors of the market that need the highest levels of purity are the customers for H20 Industries’s main niche product of segregated DI exchange service. This means that the resin coming back from the customer is never mixed with any other company’s resin. This is a very strong sales feature when dealing with dialysis units of a hospital, labs and pharmaceutical manufacturers, and electronics makers. These customers are happy to pay a premium over the price charged for bulk DI regeneration service because they do not want their resin co-mingled with resin coming from a metal plater or a car wash.

Quantifying the market for segregated portable H20 Industries is not easy. Unlike the market for used cars, metal furniture, or nearly every product one can think of, there are no readily-available statistics on the market for portable DI exchange. There is overwhelming agreement that US Filter has the commanding market share of DI exchange business, opinions range from 85 to 95% majority.

According to the publisher of ULTRAPURE WATER®, (May-June 1999 volume 16, number 5) US Filter had sales of $1 billion in 1990, and has grown to $5 billion in 1999. Portable DI exchange is only a small portion of their business. Sales in Northern California of only DI portable exchange is estimated at $25 million. This has been confirmed from several sources. Firstly, one of the owners of H20 Industries is a former employee of US Filter. In 1996, their DI exchange business reached $12 million. This was only 65% of the market. Then the company acquired Culligan, adding another $8 million in portable DI exchange business in Northern California, and bringing the total to $20 million. It is assumed that sales have grown to $25 million over the past several years.

The relationship between input water and DI exchange capacity is charted. Assuming in-coming water quality of 200 parts per million of TDS in the far left column, a 3.6 cu. ft tank of regenerated resin can handle 10,800 gallons. This means that an average user with a flow rate of 10 gallons per minute would use up a 3.6 cu ft tank in 2.57 days, or 1.4 cu ft per day. Assuming the salesman was accurate in his statement of 2,000 customers, this would work out to 840,000 cu ft of regenerated portable DI exchange business per year. This figure is somewhat greater than the figure of 610,000, however, the subject of this business plan, H20 Industries, will have a productive capacity of only 140 cu ft per day, which represents between 4.5% and 6.3% of the total market in Northern California.

Taking the midpoint estimate for the total Northern California market of 780,000 cu ft annually, these high purity users would represent a market 558,000 cu ft

Hospital Dialysis Units and Stand alone Clinics:

California lists 16 stand-alone dialysis clinics, many of whom have multiple locations with varying numbers of stations. Every dialysis clinic, as least in Michigan according to BESCO, use H20 Industries for polishing, after initially running the water through a reverse osmosis system. Hospitals also have dialysis units. In addition, there is blood analysis work which is normally done using “wet” analysis equipment that requires H20 Industries. Assume this sector represents only 10% of the high purity market, or 55,000 cu ft annually.

Labs and pharmaceutical Manufacturers:

A list of labs and pharmaceutical makers in Northern California contains 330 names. A sample calling indicated that some use no pure water, others use such small qualities (10 gals/months) that they buy the water from suppliers like Hubbard-Hall, already made up. Others use so much H20 Industries that they have their own built-in DI system. The rest who have flow rate needs of between one and 20 gallons per minute are in the range most economically serviced by portable DI exchange. Assume this to represent 20% of the 558,000, or 112,000 cu ft.

Electronic Manufacturers:

Semiconductor manufacturers and other makers of electronic components need pure water to flush with. As microprocessors use wafers of ever-decreasing size, the requirements for pure water to rinse with increase, as do various other additional micro filtering. A list of electronics manufacturers in Northern California names 189 makers. Assume this sector represents 40% of 558,000, or 223,000 cu ft.

Machine Tools and Parts:

This is one of the fasting growing sectors as more and more manufacturers conform to the ISO 9000 standard, which requires delivered parts to be clean (defined as rinsed thoroughly with water of one Megohm purity or better). This category includes a need for H20 Industries in machines consuming cutting oil, any machine with cooling systems, and other uses. Assume this sector represents 30% of 558,000, or 167,000 cu ft.

This sector of the market will represent the market for DI exchange water lower than one Megohm in purity. Assume that the following industries take up the remaining 30% of the total market. Some industries that would be included in this “other” category would be:

• Car washes need H20 Industries for the final rinse
• Food and beverage industry would use it for improving taste and texture of baked goods, cutting and blending alcoholic beverages, dissolving food colors, etc.
• Cosmetics industry needs it for the production of shampoo, liquid soaps, cold creams, hand lotions, nail polish remover, permanent waving solutions, rubbing alcohol, and hydrogen peroxide.
• Electroplating industry utilizes H20 Industries in anodizing, electro-tinning, rinsing, rust proofing, and actual plating with various metals such as nickel, copper, silver, and chromium.
• Ceramics industry requires it to control pH in preparation of slips and glazes, rinsing clay pieces, producing enamel.
• Textile industry uses H20 Industries insteam irons and other steaming equipment, humidification systems, as well as rinsing, dying and bleaching processes.
• Railroad industry for high pressure boilers, cooling systems and storage batteries and for many applications where steam is used)
• Others, such as applications for grinding optical lenses, silvering solutions for mirrors, manufacturers of blueprint paper, manufacturers of ice, humidification of gas supplies to superchargers of high speed aeronautical engines, growing orchids, etc.

The chart and table below summarize the total market potential for the DI exchange services in Northern California.

4.2 Target Market Segment Strategy

The target markets that will receive the most attention will be the sectors which require the highest levels of pure water. This means the 70% of the market that wants quality of one Megohm or better. Within this sector, quantified as 558,000 cu ft annually, H20 Industries will emphasize those users wanting the top echelon of purity (18 Megohms).This sector of the market might be only one third of the 558,000, but even at one third (186,000), it totals more than 300% of H20 Industries’s total capacity, including its bulk portion.

4.2.1 Market Trends

One notable trend in industries is to out-source. Chief financial officers analyze the costs of producing something in-house versus the costs of farming it out. Water purification is no exception. Although many large users of H20 Industries will want to set up their own in-house capacity, the capital costs, the maintenance costs, and the costs of dealing with regenerate waste often make DI portable exchange a more economical solution. Down-sizing within a company with its own pure water manufacturing capability often will lead to a management decision to shut down their in-house plant and switch over to portable service.

Another trend is for more and more industries to need higher degrees of purity in their manufacturing process, which results in an ever-growing market for H20 Industries.

4.2.2 Market Needs

The reasoning behind the attention to the highest purity sector of the market is that H20 Industries is able to provide segregated DI exchange service. A customer’s in-coming tanks for regeneration are tagged, and after regeneration, the same resin is returned to the customer. This specialized service is a major selling feature over US Filter, who must co-mingle customers’ resin in a bulk regenerating facility. Also, bulk regeneration will not achieve the same deionization capacity as H20 Industries’s segregated method which utilizes more chemicals and longer regeneration times. A customer dealing with blood can easily be sold on segregated resin as he would not feel comfortable that his resin would be co-mingled with resin used in a totally different industry.

In addition to the feature mentioned above, H20 Industries will concentrate on those customers who place a premium on response speed and intensity of service. Again, mainly the higher quality users of H20 Industries exchange, where a shut-down would be very expensive, will demand the highest degree of quality available. Segregated exchange service from a smaller supplier is much more likely to satisfy than a huge conglomerate like US Filter where portable exchange can only be done on a bulk batching basis and represents only a small part of their overall business.

4.2.3 Market Growth

The market growth percentages used in the market analysis table were obtained from various articles appearing in ULTRAPURE WATER®, the definitive journal of high-purity water. Specific articles can be located from an index on their website, www.talloaks.com/.

4.3 Service Business Analysis

The industry for providing portable H20 Industries service is dominated by one very large company–US Filter. US Filter controls between 90 to 95% of the H20 Industries service business in Northern California. The company has grown from $1 billion to over $5 billion in the past six years, primarily through an acquisition binge. The company is now finalizing its sale to Vivendi’s Generale des Eaux water subsidiary which will result in combined sales of $12 billion, making it the largest water business in the world. Originally, US Filter’s primary focus was industrial and high purity water. Its acquisitions in other areas include drinking water, waste water, municipal water, and water supply.

Now, less than 20% of its activities relate to technologies and markets connected with high purity water. A much smaller percentage is connected with H20 Industries, and a still-smaller percentage concerned with DI exchange service. After their merger, the percentage will drop even further from 20% to eight percent. This situation has resulted in a growing dissatisfaction with US Filter’s services for H20 Industries exchange. Both owners of this project have been hearing complaints from US Filter customers for quite some time. This is not just a condition evident in Northern California, other sections of the country have noticed it and competitors to US Filter’s DI exchange business have started to grow.

4.3.1 Competition and Buying Patterns

Users of H20 Industries have had little choice in regards to their provider. It is regenerated on a bulk basis only, with no option for segregated regenerated resin (see section on Market Segmentation). Some small customers have obtained the DI exchange service through their local Culligan man or similar water serviceman who in turn obtains it from US Filter. The fact that some small players in the market can capture some of this DI exchange business from US Filter despite a higher price ($63-$80 per cu ft versus $40 per cu ft from US Filter) is a good indication of the importance that service plays in the buying decision. Rarely does the price of H20 Industries represent a significant variable production cost in a manufacturing process. Much more of a factor is worry about quality level and service response time.

4.3.2 Main Competitors

In reaction to the service complaints of customers for US Filter’s DI exchange, a couple of small competitors have sprung up in Northern California. Fluid Solutions in Lowell is one such company. This company has been supplying customers with H20 Industries exchange although they have no regeneration facilities of their own. They merely service the customers and send the tanks to a regeneration facility of another DI exchange company in Pennsylvania.

The prices charged by all local companies to regenerate are between $63 and $80 per cu ft for mixed bed. They charge $20 to $30, depending on tank size, as a monthly rental charge.

The market in Northern California is ripe for growth in competitors to US Filter which does not provide segregated regeneration and whose regenerated resin, on a bulk batch basis, will not serve as high a flow rate as non-bulk regeneration.

4.3.3 Business Participants

Industry participants are varied, as there are several means of obtaining purified water. There are companies which design and engineer reverse osmosis equipment. This equipment has a sizable share of the water market at the end close to the municipal water inlet. Reverse osmosis (R/O), in conjunction with carbon filtering and ultraviolet light, is used (for example in dialysis) to bring the TDS down to a lower level. Ion exchange, either fixed or portable, is then used to polish away the remaining impurities. Other companies may supply e-cell equipment which deionizes electrically. This technology has not advanced sufficiently to compete with traditional H20 Industries but is still occasionally sold in conjunction with a R/O system as the e-cell can only handle small levels of TDS. Some industry participants are primarily engaged in water softening and water filtration for drinking and household purposes. These companies may also utilize green sand to remove iron and magnesium hardness derived from aging municipal piping systems.

In short, there is a full range of industry participants from the local Culligan service representative mainly involved in private households, to large companies involved in engineering, design, consulting, component manufacturing, waste water treatment, etc. With respect to the narrower market for H20 Industries, there are chemical companies who supply (by the gallon) H20 Industries to very small users. There are a few small companies engaged in DI exchange service who do this only as an adjunct to their main business, such as water softening, and who only act as a distributor of DI exchange regeneration facilities located outside of Northern California.

Strategy and Implementation Summary

Besides direct sales effort to large users of H20 Industries, a major element of the company’s marketing efforts will be to develop a distributor network through existing local water service companies. These companies provide local water service to small companies and homes throughout Northern California. Most of their business takes the form of water filtering, water softening, reverse osmosis maintenance, swimming pool service, etc. The best of these will be recruited to add H20 Industries service to their product line.

5.1 Value Proposition

H20 Industries will offer segregated resin regeneration to customers wanting the highest levels of water purity. Segregated regeneration is not offered by any other company in Northern California and indications are, based on present pre-start-up sales, that users of H20 Industries are willing to pay a substantial premium for it. It represents a form of peace of mind which dialysis units, laboratories, etc. feel is important.

The second most important value proposition is service response. When H20 Industries tanks need changing customers insist on, and will receive, an immediate response.

5.2 Competitive Edge

H20 Industries’s ability to segregate a customer’s resin and return it to him regenerated to the maximum limit, should put the company in a strong competitive position.

Approximately all of H20 Industries’s business will be directed at the portable service DI market. This market emphasis should quickly be noticed by users of H20 Industries, who at present rely on US Filter. US Filter’s product range growth through acquisition and buy-outs has de-emphasized the importance of its H20 Industries exchange service.

Hence, the two major aspects of the firm’s competitive advantage would be high quality segregated resin regeneration and fast service response. It will be important to stress these advantages in the sales literature.

5.3 Marketing Strategy

H20 Industries’s marketing strategy will be to execute and communicate its value proposition of service and market segmentation advantage in providing segregated regeneration of customers’ resin.

5.3.1 Distribution Strategy

Wherever H20 Industries cannot economically sell directly, due to distance or quantities, it will utilize a network of water service companies. These companies will be carefully chosen for their quality of service. An arrangement will be set up whereby the distributor will offer DI exchange service along with its other water services. The installations can easily be handled by them. They would tag the tanks and return and pick up from the H20 Industries plant. Being able to offer this service increases the image of the local water service company. It fosters a feeling a one-stop shopping. A 33% discount off the retail price should be adequate to satisfy the distributors.

5.3.2 Positioning Statement

H20 Industries’s ability to regenerate resin on a segregated basis, rather than only bulk, is a capability that should provide quick and easy entry into the user market where the highest water purity is needed. These users, blood analysis, hemodialysis units, and medical laboratories for example, are especially sensitive to contamination risks. Simply pointing out to these users that bulk regeneration involves the co-mingling of their resin with resin used in the metal-finishing and car wash industries usually is quite convincing. Segregated regeneration results in the further advantage of achieving a higher DI capacity per cubic foot as greater quantities of chemicals are used during a longer regeneration period.

The second most important position statement is H20 Industries’s concentration on the DI exchange business. This concentration will force H20 Industries to provide a higher level of service, and more quickly, too. It must be remembered that the cost for H20 Industries in the market for the highest level of water purity is not a significant cost element in the overall cost structure. However, a service shutdown, for quality or for service reasons, would be very costly to high technology users of H20 Industries.

5.3.3 Pricing Strategy

In line with the conclusions drawn in the positioning statements, H20 Industries can charge a higher price for its segregated regenerated resin. There is virtually no competition for this product in the Northern California market.

Charging $63 per cubic foot (mixed bed), as used in the sales projections, is more than a 65% increase over the price for US Filter’s bulk resin price for mixed bed. H20 Industries is currently successfully charging in excess of $70 for this product. It is essential that H20 Industries place a premium price consistent with its superior product.

Wholesale prices have been established to encourage the quick formation of a dealership network. Dealers are afforded a 33% discount.

5.3.4 Promotion Strategy

The main focus of promotion will be two-pronged: promotion to H20 Industries end users, and promotion to wholesalers.

Promotion to wholesalers should receive primary stress due to the extended reach made possible by the wholesaler network with its existing customer base. The sales force of these wholesale distributors needs to be educated on H20 Industries’s positioning statement so that they all understand the important sales advantages of segregated resin. Being able to offer DI exchange service to a distributor’s customer list is a great advantage to the distributor, and this fact needs to be clearly spelled out to them. Therefore, the H20 Industries relationship with a dealership network is one in which both sides benefit.

H20 Industries should strive to create a small-town, friendly relationship with its customers. Company brochures will show a map with all the H20 Industries locations, including each newly acquired distributor. The distributor trucks, as well as H20 Industries vehicles, would carry the H20 Industries logo, helping all to achieve name recognition. Cost savings would result through sharing literature, leads (by territory and/or industry), co-op marketing costs, and the sharing of technical expertise.

Direct marketing to customers within easy reach of H20 Industries should stress service. As a major supplier of resin stated: “US Filter is a huge concern that closes down at 5 P.M. on Friday.” Customers for H20 Industries need to feel that they can get service after hours, and even on a Saturday if need be. These customers feel much more comfortable dealing with an exchange service that is closer in size to the customer, and where the exchange service is an important portion of total sales revenue of the supplier. Prompt deliveries, trouble-free installations, good technical advise, etc. are main building blocks of the promotion strategy.

5.4 Sales Strategy

The sales strategy is to concentrate on that segment of the market most easily captured by the following sales feature: segregated regeneration of portable resin. In addition, the fastest way to reach the sales goal for the first several years is by actively working to develop a dealership network for H20 Industries.

5.4.1 Sales Forecast

Sales Projections:

Sales (July 1999) are running at less than 15% capacity monthly, exclusive of rental revenue. This approximates 285 cubic ft per month. The plant capacity will be 100 cu ft per day, on a one-shift basis. Based on the potential market outlined in the Marketing Section of this plan, growth in sales of regenerated segregated resin should reach 433 cu ft per month by October (equals 20 cu ft/day) which is this plan’s starting point, and growing steadily each month until 80 cu ft per day is reached (80% capacity) by the end of the first year. Total production of segregated resin is assumed to be split into equal quantities of anion, cation, and mixed bed.

Once the 80% capacity utilization level is reached (October 2000), unit sales will grow modestly in year two and year three. This growth can be achieved within the capacity limits of 100 cu ft daily (26,000 cu ft per annum) without increases in production labor. Further increases in segregated regeneration would require overtime labor charges. Also, for the projection purposes, direct unit costs for years two and three remain at the level of year one.

The bulk regeneration pad will have a capacity of 20 cu ft and can handle two batches during an eight-hour shift, totaling 40 cu ft/day. We will assume sales for bulk regeneration will grow at the rate of 5 cu ft/day in the first month reaching capacity of 40 cu ft/day after eight months. Sales are split between mixed bed (50%), 25% anion, and 25% cation. Sales of bulk resin will grow 15% each of the first three years. As the bulk regeneration, unlike the segregated regeneration, is not labor intensive, this 15% growth can be achieved without increases in production labor.

In projecting unit prices per ten cu ft. Prices will be assumed at:

• $630/10 cu ft for mixed bed (segregated)
• $570/10 cu ft for anion or cation (segregated)
• $430/10 cu ft for mixed bed (bulk)
• $320/10 cu ft for cation or anion (bulk)

The above prices will be reduced for dealers who will deliver and pick up at the factory to:

• $422/10 cu ft for mixed bed (segregated)
• $382/10 cu ft for anion or cation (segregated)
• $288/10 cu ft for mixed bed (bulk)
• $215/10 cu ft for cation or anion (bulk)

We will assume that 50% of all sales will go through dealers, so the unit price weighted average of the retail and dealer prices will be:

• $526/10 cu ft for mixed bed (segregated)
• $476/10 cu ft for anion or cation (segregated)
• $359/10 cu ft for mixed bed (bulk)
• $267.50/10 cu ft for cation or anion (bulk)

Variable Unit Costs:

The costs connected with one cubic foot of segregated anion treatment involve the cost of:

• City water.
• City sewer disposal.
• Cost of carbon filtering and converting city water to H20 Industries.
• Cost of heating water.
• Cost of Sodium Hydroxide.

Cost of replacing small amounts of lost resin.

• City water is supplied by Newark, at $2.70 per 100 cu ft, which works out to (7.48 gallons in one cubic foot) $0.0036 per gallon. It requires one gallon per minute for 45 minutes to regenerate one cubic foot of anion, which comes to 45 gallons. The slow rinse needs one gallon/minute for 20 minutes, and the fast rinse needs five gallons/min for 40 minutes. This comes to 220 gallons. Finally, testing takes another 12.5 gallons. Total water consumption per cubic foot of anion resin is 277.5 gallons, or $1.00.
• All water used eventually passes to the sewer which is metered at $2.45 per 100 cubic feet or $0.0032 per gallon. Cost per cubic foot of anion serviced is $0.91.
• Cost of carbon filtering and converting city surface-sourced water to H20 Industries is arrived at by assuming that one cu ft of regenerated resin has the capability of producing sufficient H20 Industries to regenerate five cu ft of spent resin. The costs of regenerating one cu ft of anion resin without H20 Industries costs are approximately $8.96. Dividing this amount by five comes to approximately $1.80 for the H20 Industries per gallon of anion resin serviced.
• Gas to heat incoming city water (average temp 40 degrees) up to 100 degrees goes by a formula (8.34 X number of gallons X temp rise) or 500.4 BTU’s per gallon. 277.5 gallons would need 138,610 BTU’s which, when divided by 104,000 BTU’s per thermal unit, comes to 1.3352 therms. One therm (assume G41 rate class) is billed at $.81 by Essexgas, so 1.3352 therms will cost $1.08.
• Sodium hydroxide is a caustic chemical supplied in a 55-gallon drum containing 50% solution. The regeneration process requires one drum to regenerate 12 anion tanks of each two cu ft. Therefore, one cubic foot of anion requires 2.2917 gallons, or .04167, of a drum. One 55-gallon drum costs $80.50 (Hubbard-Hall Inc.). Cost per cubic foot of anion servicing is $3.35.

Experience indicates that with each regeneration it is necessary to replace approximately two percent of the resin. Anion resin costs $130 per cu ft. Cost is $2.60 per cu ft of anion serviced.

Summary of Anion servicing costs:

• City Water: $1.00
• City Sewer: $0.91
• Carbon filtering and DI: $1.80.
• Gas to heat water: $1.08
• Sodium Hydroxide: $3.35
• Resin replacement: $2.60

Total for anion servicing: $10.74

The costs connected with servicing one cubic foot of segregated cation treatment involve the cost of:

• Cost of heating water (not needed for cation treatment).
• Cost of Hydrochloric acid.
• City water is supplied by Newark at $2.70 per 100 cubic feet which works out to (7.48 gallons in one cubic foot) $0.0036 per gallon. It requires one gallon per minute for 20 minutes to regenerate one cubic foot of cation, which comes to 20 gallons. The slow rinse needs one gallon/minute for 20 minutes, and the fast rinse needs five gallons/minute for 30 minutes. This comes to 170 gallons. Finally, testing takes another 12.5 gallons. Total water consumption per cubic foot of cation resin is 202.5 gallons, or $0.73.
• All water used eventually passes to the sewer, which is metered at $2.45 per 100 cubic feet, or $0.0032 per gallon. Cost per cubic foot of anion serviced is $0.66.
• Cost of carbon filtering and converting city water to H20 Industries is estimated at $1.46 per cu ft of cation serviced based on experience that one cu ft of regenerated cation resin has the ability to produce enough H20 Industries to regenerate five cu ft of cation resin. ($7.32 divided by five equals $1.46)
• No cost to heat water.
• Hydrochloric acid is supplied in 55-gallon drums containing 30% solution. The regeneration process requires two drums to regenerate 12 tanks of each two cubic feet, using an eight to ten percent solution. Therefore, one cubic foot of cation requires 4.6 gallons or .08363 of a drum. One 55 gallon drum costs $63.70 (Hubbard-Hall Inc.). Cost per cubic foot of anion servicing is $5.33.

Experience indicates that in the process of regeneration about 2% of the resin needs to be replaced. Cation resin costs $30 per cu ft. Cost is $.60 per cu ft of cation serviced.

Summary of Cation servicing costs:

• Resin replacement: $0.60.

Total: $8.78 for cation servicing.

Costs of servicing one cubic foot of mixed bed:

A mixed bed tank is more time-consuming as it requires a separation stage prior to regeneration. City water (not DI) is mixed with salt. This solution is used to bathe the anion and cation resin in a cone until the two resins separate, at which point the cation and anion are treated in the regeneration stage in the same manner as the single bed anion and cation. One mixed bed contains twice as much anion as cation. This aspect results in a weighted cost of $10.09 per cu ft Salt consumption: every cubic foot of mixed bed needs 1.5 cu ft of brine solution. There are 7.48 gallons per cu ft This comes to 11 gallons of brine needs. A 22% salt solution in this quantity of water would amount to amount two pounds. Salt is supplied by Hubbard-Hall Inc. at $.095 per pound. Adding the cost of the two pounds of salt to the weighted average cost of $10.09 comes to $10.28.

Total cost of mixed bed serving: $10.28 per cu ft.

• Bulk Regeneration Variable costs:
• Water. According to the spec sheet, 2,459 gallons are needed for 20 cu ft of mixed bed. At $0.0036 per gallon, this comes to $8.87, or $0.444 per cu ft of resin serviced.
• Sewer. Assuming all the water goes down the sewer with a minimal need for balancing chemicals, at $0.0032 per gallon, this comes to $0.4027 per cu ft of resin serviced.
• Per cu ft of mixed bed. $1.39 of acid and $1.10 of caustic soda.
• Salt. $0.07 per cu ft.
• H20 Industries and filtering/softening assume the same costs as in the production of segregated resin (i.e. $1.80 for anion and $1.46 for cation).
• Loss of resin. Assume two percent. At $130 for anion and $30 per cu ft of cation (ratio 2:3 cation to anion), a blended cost of $90 at two percent comes to $1.80 per cu ft.
• Heat for water. 3.2 therm at $.081 divided by 20 cu ft comes to $0.13 per cu ft.
• Total bulk mixed bed: $6.95, or $69.50 for 10 cu ft.

Tank Rental Income:

Because of the high costs of purchasing tanks, many new customers opt for renting tanks on a monthly basis. For purposes of these projections we will assume that:

• Dealership-generated sales resulting in tank rentals will be handled by them (i.e. ignored in these projections).
• Half of all directly-generated sales will involve rental tanks (i.e. total unit sales for October amount to 534 cu ft of which half will be dealer-generated. Total direct sales in October = 267 cu ft of which half (133 cu ft) will need rental tanks.
• Assume, for simplification of projections, all rentals will be in 12 inch tanks holding 3.6 cu ft with rental price of $40 per tank. October will see rental income of $1,480 (133 cu ft divided by 3.6 cu ft/tank times $40 rental per tank).

Tank Sales:

It is assumed that those customers who do not opt to rent their tanks will already have their own tanks or will purchase tanks from H20 Industries. Sales of tanks is assumed at only five percent of the number of monthly rental tanks. Sales price is $1,200. Cost equals $450.

5.5 Strategic Alliances

The relationship between dealerships and H20 Industries could be called a strategic alliance. These water service companies have an extensive customer base. Most of the customers have needs such as water softening, filtration, reverse osmosis maintenance, swimming pool maintenance, etc., however, many dealership customers have H20 Industries needs as well. At present, these water service companies must direct their customers to US Filter or supply the customer through US Filter. Forming a relationship between H20 Industries and these dealerships would quickly result in substantial sales increases for H20 Industries and would result in increased prestige and profits for the dealerships.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The management of H20 Industries is made up of individual shareholders with extensive expertise in the water treatment industry, as well as commercial and financial background.

6.1 Management Team

The management team is uniquely qualified to implement this business plan. The founders, John Jones and Dave Smith, have been active in the water treatment industry for years. John’s experience working with dealers in application engineering and sales has prepared him well to present the H20 Industries dealership to water service companies that he already knows. His years of calling on dealerships in all aspects of the water industry have allowed him a birds-eye view of the prevailing marketing and business practices.

Dave has been involved in the manufacturing sector of the water industry and is well respected and connected there. His training and certification as a Professional Engineer give him an advantage when consulting with customers and prospective customers.

The person planned for the position of general manager has wide-ranging experience in finance and manufacturing. He is a former vice president of Chase Manhattan Bank, team leader of a development bank (Saudi Industrial Development Fund), and founder/general manager of a factory which, after 10 years of profitable operations, was bought out in 1989.

The production manager is a chemical engineer by education and professional experience, and has demonstrated his know-how by successfully managing the production activity in the factory despite the challenges presented by the present incomplete production line.

6.2 Personnel Plan

Regeneration Personnel : A production manager must be a skilled chemical engineer with experience in water treatment applications. This person must be a hands-on individual supervising two assistants. The production manager will label the tanks as they are received to assure customer segregation and supervise the proper regeneration cycle, from separation through backwash, draw, flush, mix, and testing. The assistants will primarily be kept busy moving tanks from one stage in the regeneration cycle to the next, connecting the hosing, performing the chemical mix and draw according to the instructions of the production manager, adding salt to the brine tank, etc. The production manager is in place. One assistant is now in place. A second is needed.

An engineer/fitter is also needed to maintain the equipment and to make installations. This person is in place.

Sales and Marketing Personnel : It is planned that both owners will continue to maintain their present positions. These sales positions require them to move about the territory which provides an excellent source of knowledge of customers for H20 Industries. This information will be communicated to the sales and marketing manager who will spend his time calling and visiting potential H20 Industries users. He will be paid a base salary plus commissions. The commission will be higher for landing a new customer, and lower for repeat sales. The commission schedule will be constructed in such a way as to permit an annual total compensation that will encourage excellent sales results.

General and Administrative : An office manager is needed. Answering phones, primary contact with customers, incoming and outgoing mail, etc. He will be the main connection between the owners and the operations of the facility. Within six months, a part-time assistant will need to be added to keep pace with bookkeeping and management.

Delivery Personnel : One driver, who has additional responsibilities, is now in place. A second will need to be added after approximately four months.

Financial Plan investor-ready personnel plan .">

As of August 1999, stockholder equity stood at $112,000. Additional infusion of equity from new shareholders will boost the equity capital.

To complete the necessary planned additions to plant and equipment, a 5-year term loan will be required from a financial institution. The projected cash-flow is sufficient to repay this loan in quarterly installments. This term loan should be sufficient to cover the increases in accounts receivable, as well as to support growth in inventory of rental tanks.

7.1 Important Assumptions

Tax rate reflects the present sliding scale:

• $0 to $50,000 @ 15% Federal, plus 9.5% State tax
• $50 to $75,000 @ 25%
• $75 to $100,000 @ 34%
• $100 to $335,000 @ 39%
• $335,000 and up @ 34%

Inventory Turnover:

Since this is a service business, the only inventory is that of chemicals and some resin, both of which do not need to be stored more than two weeks. Average is one week (inventory turnover rate of 48).

7.2 Break-even Analysis

The following table and chart show the Monthly Units and Monthly Revenue Break-even calculations based on the Average Per-Unit Revenue, Average Per-Unit Variable Costs and the Estimated Monthly Fixed Costs, as drawn from the other financial tables in this plan.

7.3 Projected Profit and Loss

The following table and charts give the yearly projected profit and loss statement for H20 Industries. For a monthly analysis, please see attached appendix.

7.4 Projected Cash Flow

Cash Flow is an intrinsic projection for H20 Industries. We must maintain a suitable cash balance in the bank in order to be successful. The chart and table below outline our basic cash flow assumptions.

7.5 Projected Balance Sheet

The projected balance sheet for H20 Industries is presented below.

7.6 Business Ratios

The following table gives standard business ratios for the water treatment equipment manufacturer industry, as determined by the Standard Industry Classification (SIC) Index code 3589. The last column, Industry Profile, presents specific information and important ratios for this industry.

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Water Refilling Station Business Plan

Published Jul.26, 2024

Updated Oct.04, 2024

By: Jakub Babkins

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Table of Content

Starting a water refilling station business can be a lucrative venture, given the increasing demand for clean drinking water. With urbanization and health awareness on the rise, people are seeking reliable sources of purified water. This article provides a detailed water station business plan for a water refilling station, including market evaluation, water refilling station business description, requirements, and advantages. Whether you’re exploring how to start a water refilling business, or drafting a business plan of water refilling station, this guide will cover essential elements to ensure your success.

Business Description

A water refilling station business involves the purification and sale of clean drinking water to consumers. The process typically includes filtering, purifying, and packaging water into refillable containers. These stations are popular in urban areas where tap water quality may be compromised or where consumers prefer the convenience of readily available purified water.

Market Evaluation

Understanding the market dynamics is crucial for any business. The water refilling station industry has seen substantial growth over the years due to increasing health consciousness among consumers and the scarcity of clean drinking water in many regions. According to recent statistics, the global bottled water market is expected to reach $215.12 billion by 2025, showcasing the vast potential for water refilling stations.

How to Start a Water Refilling Station Business

1. Conduct Market Research:

• Identify your target market and competitors.
• Understand local water quality issues and customer preferences.

2. Develop a Business Plan:

• Outline your business goals, strategies, and financial projections.
• Include detailed plans for marketing, operations, and management in your water refilling station business plan.

3. Secure Financing:

• Determine your startup costs, including equipment, rent, and initial inventory.
• Explore funding options such as loans, investors, or even an EB2 business visa if you are considering international expansion or attracting foreign investment.

4. Find a Suitable Location:

• Choose a high-traffic area with easy access for customers.
• Ensure the location meets local zoning and health regulations.

5. Purchase Equipment:

• Invest in high-quality purification systems, storage tanks, and dispensing machines.
• Consider additional equipment like delivery vehicles if you plan to offer home delivery services.

6. Obtain Necessary Permits and Licenses:

• Comply with local health and safety regulations.
• Secure permits from relevant authorities to operate your business.

7. Hire and Train Staff:

• Recruit qualified staff for operations and customer service roles.
• Provide training on equipment usage, hygiene standards, and customer interaction.

8. Launch Marketing Campaigns:

• Utilize social media, local advertising, and word-of-mouth to attract customers.
• A well-prepared pitch deck can help present your business effectively to potential partners or investors, enhancing your marketing strategy.
• Offer promotions and loyalty programs to retain customers.

This step-by-step approach provides a clear roadmap for how to start a water refilling station business and should be included in your water refilling station how to start guide.

Requirements for Water Refilling Station Business

• Capital Investment: Initial capital to cover equipment, rental space, permits, and other startup costs.
• Equipment: Purification systems, storage tanks, water dispensers, and delivery vehicles.
• Permits and Licenses: Health permits, business licenses, and environmental compliance.
• Location: A strategic location that is easily accessible to your target market.
• Staff: Skilled personnel for operations, maintenance, and customer service.

Advantages of Water Refilling Station Business

• High Demand: The increasing need for clean drinking water ensures a steady customer base.
• Low Operating Costs: Once established, the operational costs are relatively low compared to other businesses.
• Scalability: Easy to expand by adding more stations or offering additional services like home delivery.
• Positive Impact: Contributes to public health by providing access to purified water.

Insights into the Excavation Industry

Understanding industry insights is crucial for positioning your water refilling station business. While the excavation industry may seem unrelated, both industries require careful planning, compliance with regulations, and strategic location choices. For instance, a good understanding of the local infrastructure can influence the setup and distribution logistics of your water refilling station.

Is Water Refilling Station a Good Business?

Yes, a water refilling station is a good business for several reasons:

• Growing Market: With increasing urbanization and health consciousness, the demand for purified water is rising.
• Sustainable Model: The business promotes environmental sustainability by encouraging the use of refillable containers.
• Profitability: With proper management and marketing, water refilling stations can yield significant profits.

Financial Projections and Analysis

Developing realistic financial projections is essential for securing funding and managing your business effectively. According to OGS Capital, a well-crafted water refilling business plan should include detailed financial statements, cash flow analysis, and break-even calculations. For entrepreneurs considering moving to the U.S. for business purposes, exploring the E2 visa could provide an opportunity to operate and grow your water refilling station in the country. External analytics sources like Statista and Market Research can provide valuable data for your financial projections.

Get Started with OGS Capital Today

Ready to start your water refilling station business? Partner with OGS Capital for expert guidance and comprehensive business planning services. Our team of professionals will help you create a tailored water refilling business plan, secure funding, and launch your venture successfully. Contact us today to get started on your path to success.

Starting a water refilling station business is a promising venture with significant growth potential. By following a structured water refilling station plan, securing the necessary resources, and leveraging expert advice from OGS Capital, you can build a successful and profitable business. Embrace the opportunity to contribute to public health while achieving your entrepreneurial goals.

Q. Is a water refilling station profitable?  

Yes, a water refilling station can be highly profitable due to the consistent demand for clean drinking water. With relatively low operating costs and high customer retention, especially in areas with poor water quality, this business model offers good margins. Effective marketing and quality service can further enhance profitability.

Q. What are the weaknesses of a water refilling station?  

The primary weaknesses include the initial capital investment required for equipment and setup, strict regulatory compliance, and competition from other stations or bottled water providers. Additionally, maintaining high hygiene and water quality standards is crucial, as any lapses can significantly impact business reputation and customer trust.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rated document, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Writing a Business Plan for a Water Refill Station: Key Tips for Success

Water Refill Station Bundle

Launching a successful water refill station business requires meticulous planning and preparation. Before diving into the business plan, savvy entrepreneurs must navigate a comprehensive 9-step checklist to ensure their venture is poised for success. From conducting thorough market research to securing necessary permits and licenses, this strategic roadmap lays the foundation for a thriving water refill station that caters to the growing demand for sustainable hydration solutions.

Steps Prior To Business Plan Writing

Conduct market research and competitive analysis.

Developing a successful water refill station business begins with a thorough understanding of the market landscape. By conducting comprehensive market research and competitive analysis, you can gain valuable insights into the demand for your services, the competitive environment, and the unique needs of your target audience.

Start by analyzing the overall water refill station industry, including current market size, growth trends, and consumer preferences. Look for data on the average number of water refill stations per capita in your target region, as well as the market share of leading players . This information will help you assess the potential for your business and identify opportunities for differentiation.

• Utilize industry reports, market research studies, and government data to gather comprehensive insights.
• Conduct surveys or focus groups to directly engage with potential customers and understand their pain points, preferences, and willingness to use a water refill station.
• Analyze the pricing strategies and service offerings of your competitors to identify areas where you can provide a unique value proposition.

Next, dive deeper into your target market by analyzing the demographic and psychographic profiles of your potential customers. Identify factors such as age, income level, environmental consciousness, and health concerns that may influence their decision to use a water refill station. This information will help you tailor your marketing and service offerings to meet their specific needs.

Furthermore, closely examine the competitive landscape to understand the strengths, weaknesses, and unique selling points of your competitors. Analyze factors such as location, pricing, service quality, and customer satisfaction to identify areas where you can differentiate your water refill station and provide a superior customer experience.

• Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to assess your competitive position and identify areas for improvement.
• Explore potential partnerships or collaborations with complementary businesses, such as eco-friendly retailers or health-conscious establishments, to expand your reach and tap into new customer segments.

By thoroughly researching the market and analyzing the competitive landscape, you can develop a comprehensive understanding of the water refill station industry and make informed decisions about your business strategy. This foundational knowledge will be crucial in shaping the key components of your business plan , ensuring that your water refill station venture is well-positioned for success.

Identify Target Audience and Their Needs

Identifying the target audience and understanding their needs is a critical step in developing a successful business plan for a water refill station. By thoroughly researching and analyzing the potential customer base, you can tailor your service offerings, pricing, and marketing strategies to effectively meet their demands.

Start by conducting a comprehensive market analysis to gather insights into the demographics, preferences, and pain points of your target customers. Consider factors such as age, income level, geographic location, and lifestyle habits. This will help you determine the specific needs and pain points that your water refill station can address.

• Utilize market research surveys, focus groups, and customer interviews to gather first-hand insights from potential customers.
• Analyze industry data and competitor analysis to identify underserved segments or unmet needs in the water refill market.
• Engage with local community groups, environmental organizations, and health-conscious consumers to better understand their water consumption habits and preferences.

Once you have a clear understanding of your target audience, focus on identifying their specific needs and pain points related to drinking water. According to a recent study, nearly 80% of Americans are concerned about the quality and safety of their tap water, and 60% actively seek alternatives to bottled water. This presents a significant opportunity for a water refill station to provide a convenient, cost-effective, and environmentally-friendly solution.

Consider factors such as water quality, convenience, cost-savings, and environmental sustainability when determining how your water refill station can best meet the needs of your target customers. Tailor your service offerings, pricing, and marketing messaging to address these specific needs and position your business as the preferred choice for clean, filtered water.

• Offer a range of filtration options to cater to different water quality preferences and health concerns.
• Provide reusable water bottles and accessories to encourage sustainable water consumption habits.
• Leverage digital platforms and mobile apps to enhance the customer experience and improve accessibility.

By thoroughly understanding your target audience and their needs, you can develop a water refill station business plan that resonates with your customers and positions your venture for long-term success.

Determine Unique Value Proposition and Positioning

Establishing a unique value proposition and positioning is crucial for the success of your water refill station business. This step involves clearly defining what sets your service apart from the competition and how you can effectively communicate the benefits to your target customers.

To determine your unique value proposition, start by conducting a thorough analysis of the competitive landscape. Identify the key players in the water refill station market, their pricing structures, service offerings, and the pain points they address (or fail to address) for customers. This information will help you identify the gaps in the market and the opportunities for your business to stand out.

Once you have a clear understanding of the competitive landscape, focus on understanding your target audience. Conduct market research to gather insights into their preferences, pain points, and willingness to pay for a water refill service. This will help you tailor your value proposition to meet their specific needs and expectations.

• Consider factors such as convenience, cost-savings, environmental impact, and health benefits when crafting your unique value proposition.
• Ensure that your value proposition is clear, concise, and easily communicated to your target audience.
• Leverage customer testimonials and data-driven insights to support your unique value proposition and build trust with potential customers.

With a clear understanding of your target audience and the competitive landscape, you can then position your water refill station in a way that resonates with your customers. This may involve highlighting your commitment to sustainability, emphasis on health and wellness, or the overall convenience and cost-savings your service provides.

To effectively position your water refill station, consider the following strategies:

• Develop a strong brand identity that aligns with your unique value proposition and resonates with your target audience.
• Leverage digital marketing channels, such as a well-designed website and social media platforms, to showcase your brand and value proposition.
• Collaborate with local businesses, community organizations, or environmental groups to further strengthen your positioning and reach a wider audience.

Remember, your unique value proposition and positioning will serve as the foundation for your water refill station business plan, marketing strategy, and overall growth. By clearly defining and effectively communicating your competitive advantage, you can attract and retain a loyal customer base, positioning your business for long-term success.

Assess financial requirements and potential revenue streams

Assessing the financial requirements and potential revenue streams is a critical step in crafting a robust business plan for your water refill station venture. This analysis will help you determine the viability of your business model and ensure you have the necessary resources to sustain and grow your operation.

To begin, you'll need to evaluate the startup costs associated with establishing your water refill station. This includes the initial investment for equipment, such as the water filtration system, dispensers, and storage tanks. Additionally, you'll need to factor in the costs of securing a suitable location, obtaining necessary permits and licenses, and setting up the physical infrastructure.

• According to industry research, the average startup cost for a water refill station can range from $50,000 to $150,000 , depending on the scale and complexity of the operation.

Once you have a clear understanding of your startup costs, it's time to explore potential revenue streams. The primary source of revenue for a water refill station is the pay-per-use model, where customers pay a small fee to fill their reusable bottles or containers. Industry data suggests that the average price per gallon of water at a refill station can range from $0.25 to $0.50 , depending on the local market and competition.

Additionally, you may consider generating supplementary revenue from the sale of reusable bottles, accessories, and related merchandise. This can help diversify your income and cater to the growing demand for eco-friendly alternatives to single-use plastic bottles.

• According to a recent industry report, water refill stations that offer a range of reusable bottles and accessories can generate up to 30% of their total revenue from these additional product sales.

To accurately project your potential revenue, you'll need to conduct thorough market research to estimate the target customer base, their water consumption habits, and the competitive landscape in your chosen location. This will help you determine the realistic demand for your water refill services and set appropriate pricing strategies.

Furthermore, it's essential to consider the ongoing operational expenses, such as water treatment, maintenance, utilities, and staffing. By carefully balancing your startup costs, revenue streams, and operational expenses, you can develop a comprehensive financial plan that ensures the long-term viability of your water refill station business.

Evaluate Legal and Regulatory Compliance

Launching a water refill station business requires navigating a complex web of legal and regulatory requirements. Before developing your business plan for a water refill station , it is crucial to thoroughly research and understand the applicable laws, permits, and licenses that will govern your operations.

One of the primary considerations is ensuring your water refill station meets all water quality standards set by local, state, and federal authorities. This typically involves obtaining the necessary permits and licenses to operate a public water system, which may include obtaining a water system operator certification, complying with water testing and reporting requirements, and adhering to strict water quality guidelines.

• Research the specific water quality standards and regulations in your local jurisdiction, as they can vary significantly across regions.
• Consult with local health departments and water authorities to understand the necessary permits and licenses required to operate a water refill station.
• Factor in the costs and time required to obtain these permits and licenses when developing your financial projections for the water refill station startup.

In addition to water quality regulations, you will need to consider other legal and regulatory requirements that may apply to your water refill station business. This may include obtaining business licenses, zoning permits, and insurance coverage to operate in your chosen location.

Depending on the scale and scope of your water refill station network, you may also need to navigate complex environmental regulations related to water discharge, waste management, and energy efficiency. Failure to comply with these regulations can result in significant fines and legal penalties, potentially jeopardizing the viability of your business.

• Consult with local authorities and industry experts to understand the full range of legal and regulatory requirements for your water refill station business.
• Allocate sufficient time and resources to ensure your operations are in full compliance with all applicable laws and regulations.
• Consider hiring a legal professional or regulatory compliance specialist to assist with navigating the complex legal landscape and mitigating any potential risks.

By thoroughly evaluating the legal and regulatory compliance requirements for your water refill station startup , you can ensure that your business operations are on solid footing from the outset. This proactive approach will help you avoid costly setbacks and better position your water refill station for long-term success.

Develop Operational Plan and Logistics

Establishing a robust operational plan and logistics framework is crucial for the success of your water refill station business. This step involves meticulously mapping out the day-to-day operations, supply chain management, and resource allocation to ensure efficiency, scalability, and cost-effectiveness.

Begin by conducting a thorough analysis of your target market and anticipated customer demand. This will help you determine the optimal number and location of your water refill stations, as well as the required water filtration and storage capacity. Factors such as foot traffic, proximity to high-traffic areas, and accessibility for your target audience should be carefully considered.

Next, develop a comprehensive supply chain strategy to ensure a consistent and reliable supply of purified water. This may involve establishing partnerships with local water treatment facilities, negotiating favorable pricing, and implementing efficient logistics for water delivery and storage. Carefully evaluate the costs associated with water procurement, transportation, and storage to optimize your operational expenses.

• Leverage data-driven insights to determine the optimal number and placement of your water refill stations to meet customer demand.
• Explore innovative water filtration and storage technologies to enhance operational efficiency and reduce energy consumption.
• Implement robust inventory management systems to maintain optimal water supply levels and minimize waste.

Develop a comprehensive staffing plan to ensure the smooth operation of your water refill stations. This may include hiring trained technicians to maintain the filtration systems, customer service personnel to handle transactions and provide assistance, and logistics coordinators to oversee the supply chain. Invest in comprehensive training programs to ensure your team is equipped to deliver exceptional customer experiences.

Finally, establish clear operational procedures and protocols to ensure consistency and quality control across your water refill stations. This may include standardized maintenance schedules, water quality testing, and customer service guidelines. Regularly review and update these procedures to adapt to changing customer needs and market conditions.

By meticulously planning your water refill station's operations and logistics, you can create a scalable and efficient business model that delivers a superior customer experience while optimizing costs and driving profitability. This strategic approach will position your venture for long-term success in the growing water refill industry.

Assemble a Team of Experts and Advisors

Establishing a water refill station business requires a diverse set of skills and expertise. Assembling the right team of experts and advisors can significantly enhance the chances of success. Here are the key steps to build a strong team for your water refill station venture:

• Identify Key Roles : Determine the critical roles needed for your business, such as operations management, financial planning, legal compliance, marketing, and customer service. These roles will form the core of your team.
• Seek Experienced Professionals : Recruit individuals with relevant experience in the water purification industry, retail operations, or small business management. Their expertise can provide valuable insights and guidance during the planning and implementation phases.
• Leverage Complementary Skillsets : Aim to build a well-rounded team that covers a diverse range of skills, such as technical expertise, financial acumen, marketing savvy, and strategic planning. This diversity will help you address various challenges and make informed decisions.
• Engage Industry Advisors : Consider recruiting experienced advisors from the water treatment, retail, or sustainability sectors. These advisors can provide valuable insights, industry connections, and strategic guidance to help you navigate the competitive landscape.
• Prioritize Collaboration and Communication : Foster a culture of open communication and collaboration within your team. Encourage regular meetings, feedback sessions, and knowledge-sharing to ensure everyone is aligned and working towards the same goals.
• Utilize your network to identify potential team members and advisors who have a track record of success in the water refill station or related industries.
• Consider offering equity or profit-sharing incentives to attract highly skilled professionals and align their interests with the long-term success of your business.
• Regularly review and adjust your team composition as your business evolves to ensure you have the right mix of expertise and capacity to address emerging challenges and opportunities.

By assembling a talented and experienced team, you can leverage their collective knowledge and expertise to develop a robust business plan, navigate regulatory requirements, optimize operations, and ultimately, drive the growth and success of your water refill station venture.

According to a recent industry report, 84% of successful water refill station startups attributed their success to the strength and diversity of their founding team. Additionally, a survey by the National Small Business Association found that 68% of small business owners who sought advice from industry experts and advisors were more likely to achieve their growth and profitability goals.

Explore Potential Partnerships and Collaborations

Establishing strategic partnerships and collaborations is a crucial step in setting up a successful water refill station business. By aligning with the right partners, you can leverage their expertise, resources, and existing customer base to accelerate the growth and reach of your AquaFill Hub venture.

One potential partnership opportunity is with local businesses, such as cafes, restaurants, or retail stores, where you can install your water refill stations. This not only provides a convenient location for your target customers but also allows you to tap into the foot traffic and brand reputation of your partners. In return, your partners can benefit from the added value and sustainability credentials that your water refill service brings to their establishment.

• Consider offering revenue-sharing or commission-based models to incentivize potential partners and align their interests with the success of your water refill station.

Another strategic partnership to explore is with environmental or sustainability-focused organizations. These partnerships can help you tap into a wider network of eco-conscious consumers and provide opportunities for joint marketing, educational campaigns, and community outreach initiatives. By aligning with organizations that share your values, you can enhance your brand's credibility and appeal to your target audience.

Furthermore, you can explore collaborations with local governments, municipalities, or water management authorities. These partnerships can facilitate access to water infrastructure, streamline regulatory compliance, and potentially unlock funding or incentive programs for sustainable water initiatives. Leveraging these relationships can help you navigate the legal and operational landscape more efficiently.

• Research any available government grants, subsidies, or tax incentives that may support the establishment and operation of your water refill station.

When evaluating potential partners, it's essential to assess their alignment with your business objectives, financial stability, and reputation. Conducting due diligence on prospective partners can help you identify the most valuable and reliable collaborations that will contribute to the long-term success of your AquaFill Hub venture.

By proactively exploring and cultivating strategic partnerships, you can leverage the expertise, resources, and networks of others to enhance the reach, efficiency, and sustainability of your water refill station business. This collaborative approach can be a powerful driver of growth and differentiation in the competitive water refill market.

Secure Necessary Permits, Licenses, and Insurance

Establishing a water refill station requires navigating a complex web of legal and regulatory requirements. To ensure compliance and mitigate risks, it is crucial to secure the necessary permits, licenses, and insurance coverage before launching your business. This step-by-step approach will help you navigate the process efficiently and avoid potential roadblocks.

The first step is to research the local and state-level regulations governing the operation of a water refill station. This may include obtaining permits for water quality testing, food service, and retail operations. Depending on your location, you may also need to comply with zoning laws and obtain business licenses or permits.

For example, in California , water refill stations are required to obtain a Retail Food Facility Permit from the local health department, as well as a Business License from the city or county. Additionally, they must adhere to the California Retail Food Code , which outlines strict water quality and sanitation standards.

Once you have identified the necessary permits and licenses, you can begin the application process. This may involve submitting detailed plans, undergoing inspections, and providing proof of compliance with various regulations. Be prepared to allocate sufficient time and resources for this process, as it can take several weeks or even months to complete.

In addition to permits and licenses, it is essential to secure appropriate insurance coverage for your water refill station. This may include general liability insurance, product liability insurance, and workers' compensation coverage. The specific insurance requirements can vary depending on your location and the scope of your operations.

• Tip: Consult with a local attorney or regulatory specialist to ensure you have a comprehensive understanding of all the legal and compliance requirements for your water refill station.
• Tip: Allocate a dedicated budget for permit, license, and insurance costs, which can range from $1,000 to $5,000 or more, depending on your location and the complexity of your operations.

By meticulously addressing the legal and regulatory aspects of your water refill station, you can establish a strong foundation for your business and minimize the risk of costly disruptions or penalties. This step is crucial in ensuring the long-term success and sustainability of your AquaFill Hub venture.

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