Do you want to start a water supply company and need to write a plan? If YES, here is a sample water supply business plan template & feasibility report. Water is one of the commodities in our world that doesn’t have any substitute. If you want to take a bath; 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 water is as important as the air we breathe and it will continue to be in demand globally. The essence of going into any business is to solve a problem. Thus going into the water supply business would surely help you solve the challenges of people who don’t have access to clean water.
If you are certain that starting a water supply business is what you truly want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing.
Here is a sample water supply business plan template that will help you to successfully write yours without stressing yourself.
A Sample Water Supply 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
Water is an essential commodity in all ramifications of life and as such the Public Health Department ensures that all water supply businesses meet certain health and safety standards. It’s important to note that if the water in a community is contaminated; it can result to epidemic in that community.
You will be required to obtain a license before you are permitted to drill a bore hole for your water supply business. This measure is guard against people drilling boreholes 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.
Establishments in the water supply business sell water as a public utility to households, businesses and public entities throughout the united states. Water supply businesses have 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.
Going forward, per capita water consumption is projected to decline, as increasing concerns regarding water conservation drive policy aimed at reducing consumption. 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 is a thriving sector of the economy of the United States of America and they generate over $79 billion annually from more than 62,187 registered and licensed water supply and irrigation companies in the country.
The industry is responsible for the employment of over 244,122 people. Experts project the Water Supply and Irrigation Systems industry to grow at a 0.8 percent annual rate between 2013 and 2018. American Water Works Company Inc. has the lion share of the available market in the United States.
A recent report published by IBISWorld shows that the Water Supply and Irrigation Systems industry has performed well over the past five years. Despite more efficient use of water, population growth, drought and other adverse weather conditions have increased demand for water supplied by industry operators. In addition, economic growth has expanded water demand from both downstream commercial and industrial customers.
Increased business activity has increased the amount of water demanded from retailers, restaurants and other commercial customers. Growth in manufacturing and other industrial activities, which often require copious amounts of water, have also increased demand for water.
The report further shows that over the past five years, the Water Supply & Irrigation Systems in the US industry has grown by 0.8 percent to reach revenue of $79bn in 2018. In the same timeframe, the number of businesses has grown by 1.5 percent and the number of employees has grown by 1.6 percent.
In summary, water supply 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 in the United States of America.
2. Executive Summary
Mark Warren® Water Supply, Inc. is a licensed water supply company that will be located in a residential area, 5 miles away from First Avenue – Cherry Creek, Denver, USA. We have been able to secure a facility in a strategic location, with an option of long – term renewal on an agreed terms and conditions that are 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 supply business to sale and supply treated water to residential apartment, offices, construction sites and industrial plants. We are also in business to make profits and at the same time to give our customers value for their money.
We are aware that there are several water supply, water purification businesses and even water refill stations scattered all around Cherry Creek – Denver which is why we spent time and resources to conduct our feasibility studies and market survey.
We ensured that our facility is easy to locate and we have mapped out plans to develop a wide supply network for offices, construction sites and manufacturing plants all around Cherry Creek – Denver 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 with our services.
We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they are. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.
Mark Warren® Water Supply, Inc. is owned and managed by Mark Warren. Mark Warren who is the Manager of the Company has a Degree in Water Resources from Denver State University. He has over 14 years’ experience working in related industry as a senior manager prior to starting Mark Warren® Water Supply, Inc. He will be working with a team of experienced employees to build the business.
3. Our Products and Services
We are in the water supply business to sale and supply treated water to households, offices, construction sites and industrial plants via our hygienic water supply 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
- Mark Warren® Water Supply, Inc. has one vision and the vision is to become ‘the go to’ company when it comes to water supply business in the whole of Cherry Creek – Denver.
- Our mission is to establish a standard water supply business with robust distribution network that cuts across the whole of Cherry Creek – Denver. We want to build a business that will survive from one generation to another.
Our Business Structure
Mark Warren® Water Supply, Inc. is established with the aim of competing favorably with other leading water supply brands in the industry and in future to also open our distribution channels across key cities in the United States of America. This 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 make sure that we only employ 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.
For now, we will contract the maintenance of our water tankers and pumping machines to a service provider, we don’t intend to maintain a very large overhead from the onset. But as soon as the business grows and stabilizes, we will assemble our own in-house maintenance team.
In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Water supply business 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
- 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 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
Water supply business Manager
- Responsible for overseeing the smooth running of the water supply business
- 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 supply business meets the expected safety, hygiene and health standard at all times.
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
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
- 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
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps 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
- 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 as requested
- Handles any other duty as assigned by the water supply business manager
Water Tanker Drivers
- Assists in loading and unloading treated water.
- 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.
- Inspects vehicles for mechanical items 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, equipment cleaning and maintenance
- 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
As a business, 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 when it comes to running a standard water supply business, Mark Warren® Water Supply, Inc. 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 Mark Warren® Water Supply, Inc.;
Part of what is going to count as positives for Mark Warren® Water Supply, Inc. is the vast experience of our management team, we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon with the shortest time possible.
So also, the location of our water supply business, 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 supply business in Cherry Creek – Denver and we don’t have the financial capacity to compete with American Water Works Company Inc. when it comes to economies of scale and controlling national distribution network.
The opportunities for water supply businesses are enormous due to the fact that water is an essential commodity that we use on a daily basis. As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our water supply business in the right location to be able to take advantage of the existing market and also to create our own new market. We know that it is going to require hard work, and we are determined to achieve it.
One of the major threats that we are likely going to face is drought. Other threats that may likely confront us are unfavorable government legislature and the arrival of a new water supply business and water refill station in same location where ours is located.
7. MARKET ANALYSIS
- Market Trends
The need for clean and drinkable water will continue to exist as long as human exist. Water is one of the commodities in our world that doesn’t have any substitute. If you want to take a bath; you use water. If you want to quench your thirst; you need water. If you want to fix a meal; you need water. This points to the fact that clean and drinkable water is as important as the air we breathe in and it will continue to be in demand globally.
A large percentage of water supplied for irrigation is not sourced from public water supply systems. However, irrigation activity only accounts for less than 5.0 percent of industry revenue. As the price of agricultural products rises, farmers tend to demand more water for irrigation, which benefits industry operators. The agricultural price index is anticipated to fall in 2018, presenting the industry with a potential threat.
As a matter of fact, households represent the largest source of revenue for the Water Supply and Irrigation Systems industry. As the number of households rises, so does demand for water from residential customers, benefiting industry operators. The number of households is expected to expand in 2018, presenting an opportunity for the industry.
Lastly, another trend in water supply 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 persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.
8. Our Target Market
When it comes to selling and supplying 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 that resides in our target market locations.
We are in business to engage in sale and supply of treated water to the following groups of people;
- Construction sites
- Industrial Plants
- Laundries and Laundromats
- Restaurants and Canteens
We are aware of the stiff competition and we are prepared to compete favorably with other water supply business in Cherry Creek – Denver and throughout the United States of America where we intend opening outlets of our water refill stations.
Some of the things that is going to count as competitive advantage for Mark Warren® Water Supply, Inc. is the vast experience of our management team, we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon.
So also, the location of our water supply business, 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
Mark Warren® Water Supply, Inc. is established with the aim of maximizing profits in the water supply 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, Mark Warren® Water Supply, Inc. will generate income by selling and supplying treated and purified water.
10. Sales Forecast
One thing is certain when it comes to water supply business, if your water is properly treated and your water tanker hygienic and if your water supply business is centrally positioned and easily accessible, you will always attract customers.
We are well positioned to take on the available market in Cherry Creek – Denver and every city where we intend opening outlets 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 water supply 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 Mark Warren® Water Supply, Inc., it is based on the location of our business and other factors as it relates to small and medium scale water supply business startups in the United States;
- First Fiscal Year: $125,000
- Second Fiscal Year: $240,000
- Third Fiscal Year: $500,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be drought and there won’t be any major competitor offering same products 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 Mark Warren® Water Supply, Inc., we conducted a thorough market survey and feasibility studies in order for us 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 treated water to favorable compete with other leading brands in the industry.
We hired experts who have good understanding of the water supply 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 Cherry Creek – Denver.
In summary, Mark Warren® Water Supply, Inc. will adopt the following sales and marketing approach to sell our treated and purified water;
- Introduce our water supply business by sending introductory letters to residence, offices, laundries and laundromats, industrial plants, construction sites and other stakeholders in Cherry Creek – Denver
- Engage in roadshow in targeted communities from time to time to sell our brand
- Advertise our water supply business 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 supply business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Regardless of the fact that our water supply business is licensed 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.
Mark Warren® Water Supply, Inc. has a long – term plan of opening our water supply business – outlets in various locations all around the United States of America which is why we will deliberately build our brand to be well accepted in Cherry Creek – Denver before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Mark Warren® Water Supply, 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 supply business brand
- Install our billboards in strategic locations all around major locations in Cherry Creek – Denver
- 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 treated and purified water
- Ensure that all our staff members wear our customized clothes, and all our official cars, water tankers and water storage facilities are well branded.
12. Our Pricing Strategy
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 will ensure that within the first 6 to 12 months, our treated water are sold and supply a little bit below the average price in the United States of America. 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 supply business.
- Payment Options
The payment policy adopted by Mark Warren® Water Supply, Inc. 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 Mark Warren® Water Supply, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client 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.
13. Startup Expenditure (Budget)
A water supply business requires reasonable startup capital hence an entrepreneur would have to pool cash together or welcome investors to partner with you. Although the capital needed to set up a water plant might not be much, but the running capital of the business is always the real deal.
You would need capital to purchase water tankers and also to fuel and maintain your water tankers. These are the key areas where we will spend our startup capital in setting up Mark Warren® Water Supply, 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 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.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $50,600.
- The cost for drilling borehole and constructing water treatment channel – $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 etc) – $80,000
- The cost for store equipment (cash register, security, ventilation, signage) – $3,750
- The 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
- Miscellaneous – $5,000
We would need an estimate of two hundred and fifty thousand Dollars ($250,000) to successfully set up our water supply business in Cherry Creek – Denver.
Generating Funds/Startup Capital for Mark Warren® Water Supply, Inc.
Mark Warren® Water Supply, Inc. is a private business that is owned and financed by Mark Warren. He has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the 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 (company), then it won’t be too long before the business closes shop.
One of our major goals of starting Mark Warren® Water Supply, Inc. is to build a business that will survive off its own cash flow without 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 (supply) 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.
Mark Warren® Water Supply, 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 supply business: 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 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
- Purchase of water tankers – Completed
- Establishing business relationship with vendors – construction contractors and other key stakeholders: In Progress