Pure water business is in vogue in Nigeria. With the increasing population, the government inability to provide clean and affordable drinking water and potentially, the fear in the public minds concerning the sugar content in soft drinks makes pure water the only available commodity to quench thirst.
The vast majority of the teaming population drink pure water. I drink it , you drink it, indeed the overwhelming majority of the people drink pure water. This is the reason why it is one of the growing and lucrative business in Nigeria beside information technology. The market is available in all the cities and villages, so it does not really matter where you are, you can set up a business of pure water in any part of Nigeria and be profitable, if run properly.
To emphasize the fact that the business of pure water is profitable, notable organisations such as Nigerian Bottling Company, Nestle, May and Baker, etc. are in the drinking water business, though in the more refined drinking water (table water). So it makes economic sense to go into the business, with little passion and the determination to succeed, the sky is just the limit. In this article, I will be tutoring you on how to start a pure water business in Nigeria.
What's in this guide?
Steps to start a pure water business:
1. Business plan
There is no need for elaborate feasibility study and report since the demand/market is available and on the increase. What is required is a business plan to help establish from the onset the financing of the project – the amount of money needed. Business plan becomes imperative at this stage because it determines the level of funding required and where it is coming from. The level of pure water business can range from using a two bedroom flat to blocks of flats, depending on which category you are investing in.
Check our guide on How to write a business plan in 2021
2. Register the business with the Corporate Affairs Commission (CAC) and NAFDAC
Every business organisation, whether a sole proprietorship of limited liability company must be registered with CAC for accountability. In the same vein, every business in food and drugs including drinkables must be registered with the government regulator. Every business also must register with the relevant tax authority (Federal Inland Revenue or the State Internal Revenue). Alternatively, you can obtain a licence from another well established pure water company in a different part of the country if NAFDAC registration proves difficult, prolonged or you want to operate in relatively low scale and do not want to go through NAFDAC protocol.
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3. A befitting place for business (factory site)
You must either lease a suitable accommodation, with access to the market or put up a suitable accommodation. There might be trade off between access to the market and cost of acquisition. The bottom line is profitability. However, other facilities must be in place, such as security of the factory, power, access road, etc.
4. Sink a borehole and install tanks overhead
This ensures uninterrupted water supply. The cost of sinking a borehole can range from ₦200,000 to ₦600,000.
5. Install distillation system for water purification
You may install the full scale distillation system or the ultra violet sterilization bulbs process depending on the start up capacity of the enterprise. The cost of acquisition of distillation equipments may run into millions of naira. The actual cost cannot be estimated with certainty and must be researched upon as it is going to be part of the expenditure included in the business plan.
6. Get a sealing machine
Automatic sealing machine must be in place according to the scale of daily production envisaged. The cost also must be verified before embarking on the project.
7. Get packaging materials
Rolls of suitable nylon materials which must be printed the company’s name and the brand name of the pure water must be procured. The number of rolls procured should be according to the capacity of the enterprise.
8. Recruitment
Recruit staff, ranging from operators of the machines, packagers, a cleaner, driver, one sales staff, one security personnel and a supervisor. This will ensure the specific positions are properly manned.
9. Electricity
Generator set must also be installed to power the operations. There are different capacities of generators and also different manufacturers and it all depends on the capacity of the enterprise as well as the start up capital.
10. Acquire a truck for distribution
The truck must be able to carry reasonable bags of pure water for distribution to great number of customers for it to be profitable.
11. Reach out
Make contacts immediately with retailers who are going to sell the water. Always establish their credit worthiness before granting credit, otherwise they can send you out of the business.
Conclusion
Starting a pure water business in Nigeria is very lucrative and will require passion, hard-work and a reasonable amount of money.
To start a pure water business in Nigeria, a start up capital of about three million naria is needed and you are good to go.
This is only a guide, the size of the organisation determines the scale of operations, the investment in cash, human capital and machines.
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