Are you about starting a water purification plant? If YES, here is a complete sample water purification plant business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a water purification plant. We also took it further by analyzing and drafting a sample water purification plant marketing plan template backed up by actionable guerrilla marketing ideas for water purification plants. So let’s proceed to the business planning section.
The need for clean water will continue to exist as long as human beings exist. Water is one of the commodities in our world that doesn’t have any substitute.
If you want to take a bathe, you use water; if you want to quench your thirst, you need water, if you want to fix a meal, you need water. The need for water could go on and on. This points to the fact that clean drinkable water is as important as the air we breathe.
The essence of going into any form of business should be basically to fill in a need or solve a problem. Therefore, going into the water purification business would surely help you solve the challenges of people who don’t have access to clean water.
Water purification is all about removing particles, color and odor from water meant for consumption. One good thing about the water purification plant business is that it is less expensive to start and maintain. You don’t need a comprehensive business plan from a business school before you get started.
If you are sure you want to do this type of business after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan. The truth is that it is one thing to have a fantastic idea cum business plan, it is entirely another thing for the business plan to translate to money.
You can hardly run this type of business alone especially if you want to operate a standard water purification plant business. Below is a sample water purification plant business plan template that will help you successfully write yours with little or no stress.
A Sample Water Purification Plant Business Plan Template
1. Industry Overview
Water is an essential commodity in life and as such The Public Health Department ensures that all water purification plants meet certain health and safety standards. It is important to note that if the water in a community is contaminated; it can result to an epidemic in that community.
A water purification plant must enforce strict hygiene standards and the environment must be clean at all times if they want to continue to be in business. A breach of these measures might result in the Public Health Department shutting down the business.
Be sure that all the storage tanks and delivery tankers undergo routine cleaning and chlorination. You can visit your Public Health Department to know more about health measures to adopt in your water purification plant.
It is important to state that you would be required to obtain a license before you are permitted to drill a bore hole for your water purification plant. This measure is put in place to guide against people drilling bore holes in places that are prone to earthquakes and tremors or places that have sanitary issues.
Your choice of location would be supervised and screened before you can be issued the permission to go ahead and install your water purification plant.
Establishments in the water purification line of business sell water as a public utility to households, businesses and public entities throughout the united states. Water purification plant business has performed well over the decade. Population growth, as well as occurrence of drought and other hostile weather conditions, have indeed increased demand for water supplied by industry operators.
Nonetheless, while per capita consumption rates are expected to depreciate, cumulative water consumption is projected to expand as the population and economy grow.
The Water Supply and Irrigation Systems industry that water purification plant is a part of is a thriving sector of the economy of the United States of America and they generate over $73 billion annually from more than 48,738 registered and licensed water supply and irrigation systems companies scattered all around the United States of America.
The industry is responsible for the employment of over 232,714 people. Experts project the Water Supply and Irrigation Systems industry to grow at a 1,3 percent annual rate within the next 5 years. American Water Works Company Inc. has the lion market share of the available market in the United States of America.
In summary, water purification plant business 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 choose to start on a large scale with several outlets in key cities all around the United States of America.
2. Executive Summary
Pascal Windsor® Water Purification Plant, Inc. is a licensed and standard water purification company that will be located in a residential area, 5 miles away from Phillips Avenue – Sioux Falls, South Dakota, USA.
We have been able to secure a long-term lease for a facility in a strategic location on a major road with an option of a long – term renewal on an agreed terms and conditions that is favorable to us. The facility has government approval for the kind of business we want to run and it is easily accessible.
We are in the water purification plant business to engage in the sale and supply of treated water to residential apartments, offices and industrial plants.
We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our water the opportunity to be part of the success story of Pascal Windsor® Water Purification Plant, Inc.
We are aware that there are several large and small scale water purification plants and even water refill stations scattered all around Sioux – South Dakota 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 and also for us to be able offer much more than our competitors will be offering.
We ensured that our facility is easy to locate and we have mapped out plans to develop a wide supply network for offices and manufacturing plants all around Sioux – South Dakota and neighboring cities.
Much more than selling and supplying purified and treated 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 go the extra mile to get them satisfied when they purchase water from us.
We have a CRM software that will enable us manage a one-on-one relationship with our customers no matter how large the number of our customer base may grow to. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.
Pascal Windsor® Water Purification Plant, Inc. is family business that will be owned and managed by Pascal Windsor and his immediate family members. Pascal Windsor who is the Manager of the Company has a Degree in Water Resources from South Dakota State University.
He has well over 10 years of experience working in related industry as a senior manager prior to starting Pascal Windsor® Water Purification Plant, Inc. He will be working with a team of experienced employees (family members inclusive) to build the business and grow it to an enviable height.
3. Our Products and Services
Pascal Windsor® Water Purification Plant, Inc. is going to operate a standard and licensed water purification plant in Sioux – South Dakota.
We are in the water purification plant line of business to supply treated water to households, offices and industrial plants via hygienic water tankers and we are going to do all that is permitted by the law in the United States of America to achieve our business goals and objectives.
4. Our Mission and Vision Statement
- Our vision is to establish a standard water purification plant in Sioux – South Dakota and in other cities throughout the United States of America that will become the number one choice for households, offices and industrial plants.
- Our mission is to establish a standard and world class water purification plant that will favorably compete with leaders in the industry. We want to build a water purification plant business that will be listed amongst the top 10 water purification plants in the United States of America.
Our Business Structure
Pascal Windsor® Water Purification Plant, Inc. is a business that is established with the aim of competing favorably with other leading water purification plants in the industry and also to open our outlets all across key cities in the United States of America.
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 our stakeholders.
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)
- Water Purification Plant Manager
- Sales and Marketing Officers
- Pump Operators
- Water Tanker Drivers
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; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Water Purification Plant Manager
- Responsible for overseeing the smooth running of the water purification plant
- Maps out strategy that will lead to efficiency amongst workers
- Responsible for training, evaluation and assessment of workers
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
- Ensures that the water purification plant meets the expected safety, hygiene and health standard at all times.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to 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; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions
- 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
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
- Responsible for selling and refilling water for customers as requested
- Ensures that the pumps are performing and dispensing treated water as required
- Assists in filling water tankers with water as requested
- Handles any other duty as assigned by the water purification plant manager
Water Tanker Drivers
- Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
- Keeps a record of vehicle inspections and make sure the water tanker/truck is equipped with safety equipment
- Assists the water refill station manager in planning their route according to a delivery schedule
- Local-delivery drivers may be required to sell products to households and businesses on their route, obtain signatures from recipients and collect cash
- Inspects vehicles for mechanical and safety issues and perform preventative maintenance
- Complies with water tanker/truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
- Collects and verifies delivery instructions
- Reports defects, accidents or violations
- Responsible for handling core services that revolve around tanks, water containers and reservoirs cleaning, parking lot sweeping, snowplowing, drain, duct and gutter cleaning, parking lot and driveway washing and other related cleaning services
- Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the water refill station manager
6. SWOT Analysis
We are quite aware that there are several water purification plants and water refill stations in Sioux – South Dakota 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.
Because of our quest for excellence, Pascal Windsor® Water Purification Plant, Inc. employed the services of an expert HR and Business Analyst with bias in startup businesses 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 Pascal Windsor® Water Purification Plant, Inc.;
Part of what is going to count as positives for Pascal Windsor® Water Purification Plant, Inc. is the vast experience of our management team, we have people on board who are highly experienced and understand how to grow a business from the scratch to becoming a national phenomenon.
So also, the location of our water purification plant, our large distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
A major weakness that may count against us is the fact that we are a new water purification plant in Sioux – South Dakota and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like American Water Works Company Inc. and co are already determining the direction of the market all across the United States America.
The opportunities for water purification plants and any water related business are enormous. This is due to the fact that water is an essential commodity that we use on a daily basis for different purposes.
As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our water purification plant in the right location to be able to take advantage of the existing market and also to create our own new 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. Another threat that may likely confront us is the arrival of a new water purification plant and water refill station in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
It is known fact that water is a fundamental need for our existence. It is something we all cannot do without. The need for clean water will continue to exist as long as human beings exist. Water is one of the commodities in our world that doesn’t have any substitute. This points to the fact that clean water is as important as the air we breathe.
If you are up-to-date with water purification plant business, you will quite agree that you would not necessarily need aggressive marketing skills to be able to market your water business. People that need your water will most likely look for ways to get to your water refill station.
The reason why you would need to market your water purification plant is to let people know about your water purification plant and to create general awareness. Schools, public facilities, homes and even companies are places where your water might be needed. This is especially when their existing water supply system fails or is under repairs and general maintenance.
Lastly, another trend in water purification plant line of business is the adoption of eco – friendly approach towards the treatment and supply of water. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.
8. Our Target Market
When it comes to selling treated 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. In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in sale and supply of treated water to the following groups of people;
- Industrial Plants
- Laundries and Laundromats
- Restaurants and Canteens
- Event Planners, Parties and Corporate Functions
- Corporate Executives
- Government Officials
- Business People
- Everybody in our target market location
Our Competitive Advantage
A close study of the water purification plant business 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 competition and we are well prepared to compete favorably with other water purification plants in Sioux – South Dakota and throughout the United States of America where we intend opening outlets of our water refill stations.
Part of what is going to count as competitive advantage for Pascal Windsor® Water Purification Plant, Inc. is the vast experience of our management team; we have people on board who are highly experienced and understand how to grow business from the scratch to becoming a national phenomenon.
So also, the location of our water purification plant, our large distribution network and of course our excellent customer service culture will definitely count as a strong strength 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 industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims 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
Pascal Windsor® Water Purification Plant, Inc. is established with the aim of maximizing profits in the water purification plant line of business in the United States of America and we are going to go all the way to ensure that we do all it takes to sell and supply our treated water to a wide range of customers.
In essence, Pascal Windsor® Water Purification Plant, Inc. will generate income by selling and supplying treated and purified water.
10. Sales Forecast
One thing is certain when it comes to water purification plant business, if your water is well – treated and your water tanker hygienic and if your water purification plant is centrally positioned and easily accessible, you will always attract customers cum sales that will translate to revenue generation for the business.
We are well positioned to take on the available market in Sioux – South Dakota and every city where we intend opening outlets and we are quite optimistic that we will meet our set target of generating enough profits from the first six months of operation and grow the business and our clientele base.
We have been able to critically examine the water purification plant line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Sioux – South Dakota.
- First Fiscal Year: $120,000
- Second Fiscal Year: $250,000
- Third Fiscal Year: $550,000
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
Prior to choosing a location for Pascal Windsor® Water Purification Plant, Inc., we conducted a thorough market survey and feasibility studies in order for to penetrate the available market in our target market location. 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.
We hired experts who have good understanding of the water purification plant line of business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Sioux – South Dakota and other cities in the United States of America where we intend opening outlets of our water purification plant.
In other to continue to be in business and grow, we must continue to sell our treated and purified 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, Pascal Windsor® Water Purification Plant, Inc. will adopt the following sales and marketing approach to sell our treated and purified water;
- Introduce our water purification plant by sending introductory letters to residents, offices, laundries and laundromats, industrial plants, event planners and other stakeholders in Sioux – South Dakota and other cities both in the United States of America
- Open our water purification plant with a party so as to capture the attention of residents who are our first targets
- Engage in roadshows in targeted communities from time to time to sell our brand
- Advertise our water purification plant 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 water purification plant
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Despite the fact that our water purification plant is a standard and licensed one and centrally located in a location that has good human and vehicular traffic, we will still go ahead to intensify publicity for all our product and brand.
Pascal Windsor® Water Purification Plant, Inc. has a long – term plan of opening our water purification plants in various locations all around the United States of America which is why we will deliberately build our brand to be well accepted in Sioux – South Dakota before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for selling our product but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Pascal Windsor® Water Purification Plant, Inc.;
- 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 water purification plant brand
- Install our billboards in strategic locations all around major locations in Sioux – South Dakota
- Engage in roadshows 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 treated and purified water
- Ensure that all our staff members wear our customized clothes, and all our official cars and water tankers and water storage facilities are customized and well branded.
12. Our Pricing Strategy
When it comes to placing prices for products such as treated water, there are two sides to the coin. We are aware of the pricing trend in the water refill line of business which is why we have decided to have various sizes of gallons and water tankers.
In view of that, our prices will conform to what is obtainable in the industry but we will ensure that within the first 6 to 12 months, our treated water will be 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 water purification brand
- Payment Options
The payment policy adopted by Pascal Windsor® Water Purification Plant, Inc. is all inclusive because we are 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 Pascal Windsor® Water Purification Plant, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our clients make payment for the purchase of our treated and purified water without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our treated water.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a water purification plant; it might differ in other countries due to the value of their money.
These are the key areas where we will spend our startup capital in setting up Pascal Windsor® Water Purification Plant, Inc.;
- The total fee for registering the business in the United States of America – $750
- Legal expenses for obtaining licenses (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) as well as accounting services (CRM software, Payroll software, P.O.S machines and other software- $2,300
- Marketing promotion expenses for the grand opening of Pascal Windsor® Water Purification Plant, Inc. 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 (including writing business plan) – $2,500
- The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $2,400
- Cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $50,600
- Cost for construction of a standard water purification plant (drilling borehole and water treatment channel inclusive) – $80,000
- 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) – $50,000
- The cost for start-up inventory (Storage Tanks, Gallons, Funnels with Filters, Granular Activated Carbon, Magnetic Flow Meter, Pressure Tank with Pump, Automatic Wash with Stainless Steel Jackets, Water Purifier, Chlorine and other required approved chemicals for water purification and preservation et al) – $80,000
- Cost for store equipment (cash register, security, ventilation, signage) – $3,750
- Cost of purchase of water supply tankers/trucks – $50,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
- The cost for building and hosting a website – $600
- The cost for our opening party – $5,000
- Miscellaneous – $5,000
We would need an estimate of two hundred and fifty thousand Dollars ($250,000) to successfully set up our water purification plant in Sioux – South Dakota.
Generating Startup Capital for Pascal Windsor® Water Purification Plant, Inc.
Pascal Windsor® Water Purification Plant, Inc. is a private business that is solely owned and financed by Pascal Windsor and his immediate family members. They do not intend to welcome any external business partners which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.
These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $50,000 (Personal savings $30,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $200,000 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
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Pascal Windsor® Water Purification Plant, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our purified water a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Pascal Windsor® Water Purification Plant, Inc. 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.
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 water purification 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
- Graphics Design and Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed Storage Tanks, Gallons, Funnels with Filters, Granular Activated Carbon, Magnetic Flow Meter, Pressure Tank with Pump, Automatic Wash with Stainless Steel Jackets, Water Purifier, Chlorine and other required approved chemicals for water purification, preservation, computers, 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
- Opening party planning: In Progress
- Purchase of water tankers – Completed