Do you want to start an energy drink production business and want to know the cost? If YES, here is a cost breakdown to open an energy drink company.
Energy drink is one commodity that is consumed in all parts of the world and the producers of energy drinks are known to generate sales year in year out if the business is well-managed. Again, economic downturn hardly affects the consumption of energy drinks because it is a very important commodity.
Despite the fact that there are big corporations who are into the production of energy drinks, the fact remains that starting a small – scale energy drink production business has minimal barriers to entry, with relatively minimal startup capital.
Some of the factors that encourage aspiring entrepreneurs to venture into producing energy drinks is that the market cuts across people of all races, culture, financial status and age.
Over and above, the energy drink production industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale servicing a community or you can chose to start on a large scale with several outlets in key cities all around the united states of America.
Estimated Cost Breakdown to Open an Energy Drink Production Company
When it comes to starting a standard energy drink production company, one is expected to spend the bulk of the startup capital on leasing a facility in an ideal location and of course purchasing and installing equipment such as a water plant, effective water treatment and purifying machines, mixing tanks, bottling and canning machines, a mini lab and good drainage system.
Aside from that, you are not expected to spend much except for purchasing ingredients and packaging materials and of course paying of your employees and utility bills. These are the key areas where you are expected to spend your start – up capital on;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand launching of the energy drinks production company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring Business Consultant (it includes writing of business plans) – $4,500.
- Insurance (general liability, workers’ compensation and property casualty and other related insurance policy) coverage at a total premium – $12,400.
- The cost for payment of rent for a facility for 12 months at $1.76 per square feet in the total amount of – $200,000.
- The cost remodeling the facility and constructing a standard energy drinks production plant (including installing the needed machines and gadgets) – $450,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($20,500) – $30,000
- Operational cost for the first 3 months (salaries of employees, fueling and maintenance of the distribution trucks, and payments of bills et al) – $250,000
- The cost for start-up inventory (caffeine, guarana (also known as Brazilian cocoa), sugars, taurine, ginseng, B vitamins and other additives and flavors and other ingredients and packaging materials et al) – $100,000
- The cost for storage hardware (bins, rack, shelves, creates) – $20,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $25,500
- The cost for store equipment (cash register, security, ventilation, signage) – $750
- The cost of purchase of distribution trucks – $85,000
- The cost of launching a website – $600
- The cost for our opening party – $5,500
- Miscellaneous – $5,000
From the rough estimate as listed above, you would need a minimum of one million, one hundred and one hundred and ninety – seven thousand, six hundred USD ($1,197,600) to establish a medium – scale but standard energy drink production company in any city in the United States of America. Please note that this amount includes the salaries of all the staff for the first three months of operation.
Please note that this is a rough estimate and we usually advise our readers who are interested in opening an energy drink production company to go to the market or directly contact wholesalers and suppliers of the type of machines and raw materials they need in order to get the real time prices of these items.
The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.