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Sip on This: A Step-by-Step Guide on How to Start a Bottled Water Business

by Ali Raza
December 6, 2020
in Business
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Sip on This: A Step-by-Step Guide on How to Start a Bottled Water Business

What's in Your Glass? A Guide to Common Chemicals in Water

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Did you know by the year 2022, the bottled water business will reach sales of $319.8 billion?

Based on these numbers, it’s safe to say Americans are big bottled water consumers. Although there are plenty of bottled water companies, there’s still a lot of room to grow.

If you’re thinking about starting a water bottle business, you came to the right place.

Read on to learn how to start a bottled water business.

Table of Contents

  • Water Bottle Market
  • Water Purifying and Other Costs
  • What Are the Legal Requirements?
  • Create a Business Plan
  • Apply for Business Licenses
  • Business Promotion
  • How to Start a Bottled Water Business?

Water Bottle Market

The first thing you need to know when starting a water bottle business is to research what the market is like. Learning more about the water bottle business will help you decide if this is the right time to invest.

Doing your research will also help you understand all of the opportunities available and potential threats.

The bottled water business is quite complex, and there are many different types, such as still water, vitamin water, flavored water, and more.

Water Purifying and Other Costs

The reason why consumers purchase bottled water is that they don’t find tap water safe for consumption.

Before you start your bottled water business, you will need the necessary equipment to purify the water. Those companies that are just starting have the option of pairing with private bottled water suppliers.

Although the water purifying process is the most important, companies also have to consider rent, utilities, wages, water filling line, and ongoing costs.

What Are the Legal Requirements?

Because it’s a consumer product, the FDA regulates the bottled water business for safety.

To comply with the FDA safety regulations and avoid delays, you need to learn about all of the basic regulations. For starters, pure bottled water cannot have added ingredients aside from fluoride and anti-microbial agents.

Flavored water, vitamin water, or tonic water are not considered bottled water; they’re soft drinks instead.

In some states, the FDA will inspect your company annually to keep the license current.

Create a Business Plan

Once you have learned the basics about the business, it’s time you create a business plan. Within the business plan, you need to outline who your target audience is, the legal entity, and a straight forward business model.

If you plan on asking for a business loan, you also need to include a financial section in your business plan. The bank will want to know about startup costs and profit projections.

Apply for Business Licenses

The next step is to apply for business licenses and register your company as an LLC. You will also need to visit the IRS website and obtain a tax ID number for your company.

You also need to open a business checking account and get a company credit card for other expenses.

Business Promotion

Once you have sorted all of the legalities, you will need to develop a promotion plan to let your customers know you’re open for business.

When it comes to promoting your business, it’s key that you promote to your target audience.

How to Start a Bottled Water Business?

Now that you know more about how to start a bottled water business, it’s time to set out on your new business venture.

To get started, you should research the market, learn about purifying basics, comply with the FDA, develop a business plan, get your licenses in order, and promote the business.

If you enjoyed this article and would like to learn more business tips, check out the rest of our blog.

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