Do you want to start a vitamin water company and need to write a plan? If YES, here is a sample vitamin water business plan template & feasibility report.
If you are considering starting a vitamin water business, the good news is that you can’t get it wrong because various types of vitamin flavored water are consumed by almost everybody both the old and young, the sick and healthy. It is important to state that starting a vitamin water production business comes with its own fair share of challenges.
But that does not rule out the fact that it is indeed a profitable business venture, especially if you locate the business in good location and you know how to source for vitamin and supplements.
So, if you have decided to start your own vitamin water production business, then you should ensure that you carry out thorough feasibility studies and also market survey. Business plan is yet another very important business document that you should not take for granted when launching your vitamin water production business.
Below is a sample vitamin water production business plan template that can help you to write your own with little or no difficulty.
A Sample Vitamin Water Plant Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Basically, vitamin water is a bottled water that contains added vitamins and minerals and is marketed as healthy. Though, some Vitamin water products are loaded with added sugar, which can be unhealthy when consumed in excess.
Vitamin water is produced by reverse osmosis of water, with crystalline fructose, less than 1% of: cane sugar, vitamins C, B5, B6, B12 (ascorbic acid, calcium pantothenate, pyridoxine hydrochloride, cyanocobalamin), electrolytes (calcium and magnesium lactate and potassium phosphate), taurine, citric acid, vegetable juices (for color), natural flavors.
It is a known fact that bottled vitamin water is one commodity that is consumed in all parts of the world and those that are in the business of producing bottled vitamin water, are known to generate sales and profits year in year out if the business is well – managed.
As a matter of fact, economic downturn hardly affects the consumption of bottled vitamin water because the commodity is considered healthy.
The Bottled Water Production industry of which vitamin water line of business is a part of is a thriving sector of the economy of the united states of America and they generate over billion annually from more than 565 registered and licensed bottle water production plant companies (vitamin water production inclusive) scattered all around the United States of America.
The industry is responsible for the employment of over 14,360 people. Experts project the bottle water production industry to grow at a 4.0 percent annual rate. The Coca Cola Company, Nestle and Pepsi Co are the world leaders in the bottled water industry, they have the lion market share in the United States of America and in most countries of the world.
Despite the fact that there are big corporations who are into the production of bottled vitamin water, the fact remains that a small scale vitamin water production business has minimal barriers to entry. Most players in the industry are small to medium sized establishments that cater to the local community.
With this kind of business, if you want to start on a small scale, you can choose to start servicing your local community. All you would need are contacts, packaging, networking and good marketing and customer service skills. However, if you intend starting it on a large scale, then you should consider spreading beyond your local community to state and even national level.
The bottled water 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 chose to start on a small scale servicing a community or you can chose to start on a large scale with robust distribution network spread across key cities all around the United States of America.
2. Executive Summary
Life Gate® Vitamin Water Production Company is a standard vitamin water production company that will be located in an industrial area in East Rutherford – New Jersey.
We have been able to secure a long term lease for a facility in a strategic location close to the city center with an option of a long term renewal on terms and conditions that are favorable to us. The facility is government approval for the kind of business we want to run and it is easily accessible.
We are in the vitamin water production business to engage in packaging and retailing vitamin water in different flavors. We are also in business to make profits at the same to give our customers value for their money.
We are aware that there are some leading vitamin water production companies in the United States of America, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that will support the growth of the business.
We ensured that our facility is easy to locate and we have mapped out plans to develop a wide distribution networks for wholesalers all around East Rutherford – New Jersey and throughout the United States of America.
Much more than producing healthy, portable and well packaged vitamin water, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will get them satisfied when they purchase our bottled vitamin water.
Life Gate® Vitamin Water Production Company will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our Plant. We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large they may grow to.
Life Gate® Vitamin Water Production Company is family business that will be owned and managed by Paul Micah and his immediate family members.
Paul Micah who is the Chief Executive Officer of the Company is Graduate of Micro Biology (B.Sc.) and he holds a Master’s Degree in Business Management (MBA). He has over 10 years’ experience working in related industry as a senior manager prior to starting Life Gate® Vitamin Water Production Company.
3. Our Products and Services
Life Gate® Vitamin Water Production Company is going to operate a licensed vitamin water production plant whose products will not only be sold in East Rutherford – New Jersey but also throughout the United States of America. We are going to do all that is permitted by the law of the United States to achieve our business aim and ambition. We will be involved in the production of the following flavor of vitamin water;
- Mixed Berry flavor
- Açai Blueberry Pomegranate flavor
- Lemonade flavor
- Kiwi Strawberry flavor
- Fruit Punch flavor
- Orange flavor
- Dragon – fruit flavor
- Pineapple Coconut flavor
4. Our Mission and Vision Statement
- Our vision is to establish a standard vitamin water production company whose products will not only be sold in East Rutherford – New Jersey, but also throughout the United States of America.
- Our mission is to establish a standard and world class vitamin water production company that in our own capacity will favorably compete with leaders in the industry.
- We want to build a business that will be listed amongst the top 5 vitamin water brands in the United States of America.
Our Business Structure
Life Gate® Vitamin Water Production Company is established with the aim of competing favorably with other leading brands in the United States of America. Which is why we will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Plant Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Information Technologist
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner):
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for overseeing the smooth running of the vitamin water production plant
- Part of the team that determines the quantity and flavors that are to be produced
- Map out strategies that will lead to efficiency amongst workers in the plant
- Responsible for training, evaluation and assessment of plant workers
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Ensures that the plant meets the expected safety and health standard at all times
- Serve as the quality assurance and compliance office of the organization.
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversee the smooth running of the daily office and factory activities.
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Responsible for the purchase of raw materials and packaging materials (vitamins, bottles, and plastics et al)
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with customer (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
Production Workers/Machine Operators:
- Responsible for operating the machines used in the production of different flavors of vitamin water
- Assist in packaging and loading vitamin water into distribution trucks
- Any other duty as assigned by the plant manager.
Distribution Truck Drivers
- Assist in loading and unloading packs of vitamin water.
- Maintain a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keep a record of vehicle inspections and make sure the truck is equipped with safety equipment
- Assist the transport and logistics manager in planning their route according to a delivery schedule.
- Transport finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
- Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
- Comply with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collect and verify delivery instructions
- Report defects, accidents or violations
6. SWOT Analysis
We are well informed that there are several vitamin water production companies in the United States of America which is why we are following the due process of establishing a business so as to compete favorable with them.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Life Gate® Vitamin Water Production Company employed the services of an expert HR and Business Analyst with bias in startup business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Life Gate® Vitamin Water Production Company;
Part of what is going to count as positives for Life Gate® Vitamin Water Production Company is the vast experience of our management team, we have people on board who are highly experienced and understand how to grow business from scratch to becoming a national phenomenon. So also, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for us.
A major weakness that may count against us is the fact that we are a new vitamin water production company and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business.
The opportunities for vitamin water production companies are enormous. This is due to the fact that almost all Americans and people from all over the world can afford vitamin water and they drink it regularly. As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to enable us properly position our business to take advantage of the existing market.
We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new vitamin water production company in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
In recent times, it is a common trend for vitamin water to be bottled in different flavors before they are distributed for consumption. Also, it is common to find vitamin water production companies especially medium scale and small scale vitamin water companies specially labelling their products for specific occasions to meet the demand of their clients.
8. Our Target Market
When it comes to selling vitamin water, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who resides in our target market locations. We are in business to engage in wholesale distribution and to retail different flavors of vitamin water to the following groups of people;
- Restaurants and Canteens
- Event Planners, Parties and Corporate Functions
- Corporate Executives
- Government Officials
- Business People
- Military Men and Women
- Sports Men and Women
- Everybody in our target market location
Our Competitive Advantage
A close study of the vitamin water production industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiff competition and we are prepared to compete favorably with other companies in East Rutherford – New Jersey.
Part of what is going to count as competitive advantage for Life Gate® Vitamin Water Production Company is the vast experience of our management team. So also, our large national distribution network and of course our excellent customer service culture will definitely count as a strong competitive advantage for the business.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the bottled water industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Life Gate® Vitamin Water Production Company is established with the aim of maximizing profits in the industry in both the United States of America and Canada and we are going to ensure that we do all it takes to sell our products to a wide range of customers.
Life Gate® Vitamin Water Production Company will generate income by packaging, distributing and retailing the following flavor of vitamin water;
- Mixed Berry flavor
- Açai Blueberry Pomegranate flavor
- Lemonade flavor
- Kiwi Strawberry flavor
- Fruit Punch flavor
- Orange flavor
- Dragon – fruit flavor
- Pineapple Coconut flavor
10. Sales Forecast
One thing is certain when it comes to vitamin water production business, if your vitamin water comes in different flavors and are well – packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers cum sales.
We are well positioned to take on the available market in East Rutherford – New Jersey and every city where our vitamin water will be distributed and retailed and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.
We have been able to examine the vitamin bottled water line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projection for Life Gate® Vitamin Water Production Company, it is based on the location of our business and other factors as it relates to small and medium scale vitamin water production startups in the United States;
- First Fiscal Year (FY1): $320,000
- Second Fiscal Year (FY2): $550,000
- Third Fiscal Year (FY3): $850,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location to set up Life Gate® Vitamin Water Production Company we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market in our target market locations.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also for our products to favorable compete with other leading brands in the United States of America.
We hired experts who have good understanding of the vitamin water production industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in East Rutherford – New Jersey.
In other to continue to be in business and grow, we must continue to sell our different flavors of vitamin water to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals.
In summary, Life Gate® Vitamin Water Production Company will adopt the following sales and marketing approach to sell our distilled alcoholic drinks;
- Introduce our vitamin water brand by sending introductory letters to residents, bottled water retailers and distributors, and other stakeholders in East Rutherford – New Jersey
- Open our vitamin water production company with a party so as to capture the attention of residence who are our first targets
- Engage in roadshow in targeted communities from time to time to sell our vitamin water
- Advertise our vitamin water in community based newspapers, local TV and radio stations
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our vitamin water brands
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
In as much as our vitamin water production plant is a standard one, we will still go ahead to intensify publicity for all our products and brand.
Life Gate® Vitamin Water Production Company has a long term plan of distributing our vitamin water in various locations all around the United States of America which is why we will deliberately build our brand to be well accepted in East Rutherford – New Jersey before venturing out.
Here are the platforms we intend leveraging on to promote Life Gate® Vitamin Water Production Company;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our vitamin water brand
- Install our Billboards on strategic locations all around major cities in the United States of America
- Engage in roadshow from time to time in targeted communities
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
- Ensure that our bottled vitamin water are well branded, that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.
12. Our Pricing Strategy
We are aware of the pricing trend in the vitamin water production industry which is why we have decided to produce various sizes and flavors of vitamin water.
In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average price in the industry. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our vitamin water brands.
- Payment Options
The payment policy adopted by Life Gate® Vitamin Water Production Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Life Gate® Vitamin Water Production Company will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via Point of Sale Machine (POS)
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our clients make payment for vitamin water purchase without any stress on their part.
13. Startup Expenditure (Budget)
Starting a standard vitamin water production company is indeed a capital – intensive business. The bulk of the startup capital will be spent on leasing or acquiring a facility and also in purchasing water purifying, bottling, and packaging equipment and vitamin supplies.
Also, you are expected to purchase and service your distribution trucks, pay your employees and utility bills. This are the key areas where we will spend our startup capital;
- 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) – $1,300.
- Marketing promotion expenses for the grand opening of Life Gate® Vitamin Water 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 – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
- The cost for construction of a standard vitamin water production plant – $100,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for Start-up inventory (vitamins, bottles and packaging materials et al) – $80,000
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- The cost for water purifying, bottling and packaging equipment – $100,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The cost of purchase of 3 distribution vans – $30,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
- The cost of Launching a Website – $600
- Miscellaneous – $10,000
We would need an estimate of six hundred thousand dollars ($600,000) to successfully set up our vitamin water production plant in East Rutherford – New Jersey.
Generating Funds/Startup Capital for Life Gate® Vitamin Water Production Company
Life Gate® Vitamin Water Production Company is owned and financed by Paul Micah. He has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings and sell of stocks
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Life Gate® Vitamin Water Production Company is to ensure that we continue to make available a wide range of flavors of vitamin water, deliver quality services, improvise on how to do things faster and cheaper.
We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times. From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of Life Gate® Vitamin Water Production Company adopted the use of payment machine and accounting software to run the business.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store. We will not waste time in adopting new technology, best practices and diversifying our services.
Life Gate® Vitamin Water Production Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and construction of standard bottled water plant: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members and friends: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress.