Water refill stations are popping up in almost all corners of the country, and they have proven to be a profitable and socially responsible business since they provide a convenient and eco-friendly way for people to access clean drinking water.
However, before starting this business, you must take your time to carry out a detailed SWOT and risk analysis. Even when you are just looking to start this business, this tool will provide you with valid insights on things like:
Selecting an optimal location, pricing strategy, and noting the right marketing channels. Keep in mind that a properly conducted SWOT and risk analysis will set your business up for success.
Steps to Conduct SWOT Analysis for a Water Refill Station
There are numerous reasons why it is recommended you take your time to carry out a comprehensive SWOT and risk analysis when looking to start a water refill station.
Aside from the fact that it helps with identifying strengths, weaknesses, opportunities, and threats (SWOT), it ensures that you can make informed decisions and come up with the right strategies to guarantee sustained success. Below are steps to guide you:
Start by evaluating the internal factors that provide your water refill station an edge in the industry. Although this will vary from one business to another, it will include things like strategic location, state-of-the-art filtration technology, sustainable practices, or a valid brand presence.
Take your time to understand and make effective use of these strengths in establishing a functional foundation for your business.
You need to be honest with this step of the process since these factors could in one way or another impede the success of your water refill station.
Your business weaknesses might encompass things like operational inefficiencies, limited marketing resources, or overreliance on a single supplier.
Effectively and efficiently dealing with these weaknesses early on is important in building resilience and boosting your business’s overall performance.
You should take into account all the external factors that could positively impact your water refill station. In this line of business, this can include things like upcoming market trends, clients’ preferences, or emerging technologies.
For example, keying into the fast-rising demand for eco-friendly products or inculcating digital payment options might mean better and more profitable opportunities for your business.
Once you are done with identifying the strengths, weaknesses, and opportunities of your business, it is now time to shift your focus towards those external factors that pose potential risks to your water refill station. This can encompass variables such as increased competition, changes in regulations, or economic downturns.
Taking your time to understand these threats will ensure you have the information you need to come up with the right contingency plans and limit their impact on your business.
This is when you have to carry out a comprehensive risk analysis to understand the potential risks that can affect your water refill station.
You should evaluate the possibility of them happening as well as the severity of the risks, such as supply chain disruptions, water quality issues, or unpredicted legal issues. Nevertheless, be sure to come up with risk mitigation strategies to effectively manage these uncertainties.
Using the information you garnered from the SWOT and risk analysis, you should put in place strategic initiatives to make good use of your strengths, deal with your weaknesses, leverage opportunities, and limit threats.
This might necessitate things like operational improvements, marketing campaigns, diversification of services, or partnerships with industry stakeholders.
Sample Water Refill Station SWOT Analysis
We are quite aware that there are several water refill stations both large and small in Bay Orleans – Massachusetts 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 welled equipped to confront our threats.
Brian Colbert Water Refill® Company employed the services of an expert HR and Business Analyst with bias in start – up 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 Brian Colbert Water Refill® Company;
Part of what is going to count as positives for Brian Colbert Water Refill® Company is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.
So also, the location of our water refill station (centrally located in major road prone to both human and vehicular traffic, 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 refill station in Bay Orleans – Massachusetts 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 refill stations 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 refill station in the right location to be able to take advantage of the existing market for treated water and also to create our own new market. We know that it is going to requires hard work, and we are determined to achieve it.
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 water refill station in same location where ours is located.