In this article, we cover 10 tips you need to know On How to start a pure water business in Nigeria, note this article is regularly updated and can also be used as a guide in setting up your  Pure water business in Nigeria.

How To Start A Pure Water Business In Nigeria

Many businesses in Nigeria collapsed as a result of the lockdown and the protest so we can say that things are getting worse by the day but one commodity remains the same in price and demand and it’s been bought daily by over 90% of Nigerians.

Wouldn’t you like to build a business around what people buy every day?

The best part is that the major raw material used for its production is free the only thing is that you will have to put a lot in place most especially in your packaging and when you mix this with good marketing-nothing will stop you from banking good money from the business.

The Pure water business in Nigeria is a gold mine, this is the major reason why you will see big companies venture into this line of business. Companies like cway, Nigerian bottling company and many more.

Before we go deep into this article,  let’s first do our findings to know why you should start a pure water business in Nigeria.

Various Reason Why You Should Start A Pure Water Business In Nigeria 

• Free raw material
• Products can be stored for some time
• Demand for the products are high
• Scalable
• Fast returns
• Few workers needed
• 100% profit and more
• No down time
• No location restriction

Now You Know The Reasons On Why You Should Start A Pure Water Business In Nigeria

There are some necessary steps you need to take in order to be able to set up this business in Nigeria.

7 Steps to start a Pure water business in Nigeria

1. Prepare a Pure Water Business Plan in Nigeria
2. Register your Business with the CAC
3. Pick a Good Location
4. Purchase Pure Water Equipment
5. Recruitment
6. Electricity
7. Marketing Your Pure Water Business
8. Other Things to know about starting a Pure Water Business in Nigeria

Now we will break down these various steps so you can understand how to execute them

1. Prepare a Pure Water Business Plan in Nigeria

A comprehensive business plan is the cornerstone of any successful venture, and the pure water business in Nigeria is no exception. It serves as your roadmap, guiding your decisions and attracting potential investors who believe in your vision.

Key Components of a Pure Water Business Plan:

1. Executive Summary:

This is a concise overview of your business, highlighting its goals, target market, competitive advantage, financial projections, and funding requirements.

2. Market Analysis:

• Industry Overview: Describe the size and growth of the pure water market in Nigeria, highlighting regional trends and consumer preferences.
• Target Market: Identify your ideal customers, including demographics, geographic location, and purchase behaviors.
• Competitive Landscape: Analyze your competitors’ strengths and weaknesses, identifying opportunities for differentiation.

3. Business Description:

• Mission Statement: Clearly define your company’s purpose and values.
• Products and Services: Describe the types of pure water you will offer and any unique features.
• Production Process: Explain your water purification and packaging methods, emphasizing quality control measures.

4. Operational Strategies:

• Location: Outline the rationale behind your chosen location, highlighting its accessibility and water source availability.
• Equipment and Supplies: List the machinery and materials needed for production, with estimated costs and procurement strategies.
• Personnel: Detail the number of employees required, their roles, and training plans.

5. Financial Projections:

• Start-up Costs: Estimate the initial investment required for equipment, licensing, marketing, and other essential expenses.
• Operational Expenses: Project ongoing costs such as raw materials, employee salaries, utilities, and marketing expenditures.
• Revenue Projections: Forecast your expected sales volume and revenue based on market research and pricing strategies.
• Profitability Analysis: Calculate your projected profit margins and break-even point to assess the financial viability of your business.

6. Marketing Strategies:

• Pricing: Define your pricing strategy based on market competition, production costs, and desired profit margins.
• Distribution Channels: Identify the channels through which you will reach your target customers, including supermarkets, distributors, and direct sales.
• Promotional Activities: Outline your plan for marketing and advertising your brand, considering budget constraints and target audience preferences.

Benefits of a Solid Business Plan:

• Clarity and Direction: It provides a clear vision for your business, helping you make informed decisions and stay focused on your goals.
• Improved Operations: It ensures efficient resource allocation, minimizes risks, and helps you track progress towards your objectives.
• Attract Investors: A well-written plan demonstrates your credibility and potential for success, making it easier to secure funding from investors.
• Monitor and Adapt: The plan serves as a benchmark against which you can measure your performance and make adjustments as needed.

Investing time and effort into crafting a comprehensive business plan is crucial for the success of your pure water business in Nigeria. By thoroughly analyzing the market, outlining your operational strategies, and forecasting your financials, you increase your chances of achieving long-term sustainability and attracting valuable partnerships.

Note: We at NaijaCEO can help you create a perfect business plan for your pure water business in Nigeria Price is Only 15,000

2. Register your Business with the CAC

Operating a successful pure water business in Nigeria requires not only a solid plan and efficient operations but also a firm legal foundation. This is where registering your business with the Corporate Affairs Commission (CAC) comes in.

Why Register?

Registering your business offers several crucial benefits:

• Credibility and Trust: A registered business is recognized by the government and legal system, instantly boosting your legitimacy and reputation among customers, suppliers, and partners.
• Compliance with Regulations: Registration ensures you comply with all relevant laws and regulations, minimizing the risk of legal issues down the road.
• Access to Opportunities: As a registered business, you can open bank accounts, apply for licenses and permits, and participate in government contracts and programs that can help your business grow.
• Taxpayer Identification: Registration assigns you a Tax Identification Number (TIN), enabling you to comply with tax regulations and build a positive financial history.

How to Register Your Pure Water Business with the CAC:

The CAC registration process is relatively straightforward, involving the following steps:

1. Choose a Business Name:

• Select a unique and memorable name that reflects your brand identity.
• Check for name availability on the CAC website or mobile app.
• Ensure it complies with CAC naming guidelines.

2. Create a CAC Account:

• Register on the CAC website or mobile app.
• Provide your personal details and preferred login credentials.

3. Reserve Your Business Name:

• Pay the prescribed reservation fee through the online platform.
• The reservation is valid for 60 days, allowing you time to complete the registration process.

4. Complete the Registration Forms:

• Download and complete the relevant CAC forms online or offline.
• Gather all required documents, including:
  • Proof of address for the business and directors.
  • Identity documents for directors and shareholders.
  • Bank Verification Number (BVN) for directors and shareholders.
  • Memorandum and Articles of Association (MEMART).

5. Submit the Forms and Payment:

• Upload all completed forms and supporting documents online.
• Pay the applicable registration fees through the online platform.

6. Processing and Approval:

• The CAC will process your application and conduct verification checks.
• If everything is in order, your business will be registered and you will receive a Certificate of Incorporation.

Remember:

• The registration process may take several weeks, depending on the volume of applications and any processing delays.
• You can seek assistance from a registered business consultant or lawyer for guidance and support.
• Maintain accurate records and documentation to ensure seamless registration and future compliance.

By taking the time to register your pure water business with the CAC, you’re laying the groundwork for a successful and legal venture. This crucial step builds trust, opens doors to opportunities, and ensures you’re operating within the framework of Nigerian laws and regulations.

3. Pick a Good Location

Choosing the location for your pure water business is like selecting the seedbed for your future success. It’s crucial to get it right, as it impacts everything from production costs to customer reach. Let’s explore some key factors to consider when picking your ideal spot:

Land (factory site) & building Location:
This is an important and basic part of your business because it’s a fixed capital. Now in getting a factory, there are some factors you need to consider which are

• Location
• Closeness to your market
• Environment
• Structure or size

• Location:
  After doing your market research you’ll then be able to choose which location will be beneficial for you with low competition and high demand, we’ll treat market research later in this article. Location goes a long way in the success of your pure water business in Nigeria. You may have a good product but selling your good product in a bad location is bad for business Example “You’re selling in a location surrounded by the estate and almost every resident has a water dispenser and the kiosk and supermarket only sells bottled water, chances are you may not last one month in the business before it collapse.”
  
• Closeness To Your Market:
  In order to have a successful market penetration your delivery rate and availability must be very high so as to capture your market effectively. This doesn’t literally mean you have to get a factory location inside the market but you need to be around your target market so as to ease distribution, cut costs, reach more customers and increase visibility. By saying market here I mean your customers.
  
• Environment:
  In this business environment matters a lot a can affect your products negatively for example building your water factory close to a graveyard or any other place with offensive odors. Chemicals can also affect your products so do away with places that contain chemical substances, because water is very sensitive and it can attract molecules from another substance which could change the original taste and properties it has.

• Structure and size:
  Since we’re working with lots of machines and lots of products to produce every day we would need a large building and land that would contain all we will need, so the size can be 2 plots of land or more, you can decide how the structure should look but make sure it’s spacy and can contain every department of your business.

4. Purchase Pure Water Equipments in Nigeria

For every type of business, equipment is always needed to perform some task to get desired results, The pure water business in Nigeria is no different some of the equipment you would need to start a Pure water business in Nigeria are listed below.

• Borehole and overhead tank
• Pumping machine
• Land (factory site) & building
• Distillation system for water purification
• Automatically sealing machine
• Electricity
• Motor van/ tricycle
• Industrial filters
• UV air sterilizer
• Ozonizer or reversed osmosis
• Boiling machine
• Micro filters and cartridges
• Printed nylon sachets
• Packaging bags
• Water treatment materials
• Workers equipment
• Pump, valves and pipes

Bore Hole And Overhead Tank: 

This is one of the first things to set up while starting your business, every part of Nigeria has its own depth where you can get fresh water underground, this is very important to ensure your products have the desired quality to satisfy your market.

I said quality cause water gotten from the ground has taste and colour but the Dipper your borehole the cleaner the water becomes, the ideal is to get fresh water from the earth no matter what depth you may find it but some borehole companies tend to convince you even when they know it does not dip enough, you have to make sure it very dips and when you taste the water it’s pure and has no colours.

As for the overhead tank, you can get a GP tank that’s one of the best you’ll find, Then for the tank stand get an experienced welder to make a stand that can contain the size of two GP tanks, I mean the biggest size of GP tanks.

Pumping Machine:  

After setting up your borehole and getting your tank you’ll need to get your pumping machine, and for this, we have two types, one stays inside the ground while the other stays outside, I would recommend you get the one that stays outside so as to make maintenance and repair easy

Distillation System For Water Purification:

You may install the full-scale distillation system or the ultraviolet sterilization bulbs process depending on the startup capacity of the enterprise. The cost of acquisition of distillation equipment may run into millions of naira. The actual cost cannot be estimated with certainty and must be researched upon as it is going to be part of the expenditure included in the pure water business plan in Nigeria.

Distillation is the single most effective method of water purification for pure water production and can be used on all types of incoming water. Unlike other treatment methods such as carbon filters and reverse osmosis, distillation systems are effective on virtually all contaminants and are not dependent on water pressure, water temperature, pH, or chlorine and can even be used on water containing bacteria and parasites and still produce safe, 99.9% pure water.

Automatically Sealing Machine: 

Another important piece of equipment which is the engine of your production line is an automatic sealing machine. You need just one but if you are planning for very high volume production, you will need like two or three but on normal production, one is very okay.

I would highly recommend the Koyo sachet water sealing machine, this type is very ideal. This machine is a high-precision packing machine and one of the most advanced liquid compound packaging machines available, It stands the size of a double-door refrigerator and has three sides sealing and intermittent. It can automatically complete bag making, filling, sealing, printing, cutting and counting. Controlled by a microprocessor and automatic photocell.

Electricity:

The power supply is another essential part of your business Cause you know we cannot rely on NEPA in Nigeria for the power supply so you’ll need light for the pure water production in Nigeria. it will be wise to use a KVA generator that won’t give you headaches. And you have to service it regularly too. Buy China generator example Sifang engine with 10Kw coil. You can get a bigger plant when the business has grown.

Motor Van/ Tricycle: 

A second-hand truck will do for a start, The truck must be able to carry reasonable bags of pure water for distribution to a great number of customers for it to be profitable. The reason I added tricycles was because of Nigeria bad roads which sometimes can be inaccessible by trucks so you can use tricycles to reach customers around and those in unacceptable areas.

UV Air Sterilizer: 

UV simply means ultraviolet lights which are used to purify water by passing ultraviolet lights through the water. This is very useful and can increase the quality of your product.

Ozonizer Or Reversed Osmosis:

Reverse Osmosis is one of the most widely used and easier to install. Reverse Osmosis also produces water with the highest level of purity and very perfect for your pure water production if you can afford it.

Boiling Machine:

They are used to produce distilled water. Distilled water is water that has been heated to the boiling point so that impurities are separated from the water, which itself becomes vapour or steam. Steam is then condensed back into pure liquid form. The impurities remain as residue and are removed.

Pure Water boiling Systems remove waterborne biological contaminants such as bacteria, viruses, organic and inorganic chemicals, heavy metals, volatile gases, cysts and other contaminants. Boiled steam water contains virtually no solids, minerals or traces elements. It is clean, natural and healthy. Steam distilled water is the standard by which all other waters are measured.

5. Staff Recruitment

Labor Force

The most important and delicate part of any business is the labour force, especially in the pure water business, it has led to the rundown of many businesses so you have to be careful when choosing who your labour force.

This business has two categories of work which are:

• Factory workers
• Mobile workers

Factory workers: they include those who work inside the factory to produce the pure water which are:

• Operator
• Packer
• Cleaner
• Supervisor
• Manager

Mobile workers: these are workers who deliver and make face to face contact with the retailer or the final consumer. They include:

• Driver
• Motor boys

6. Electricity

In the business of pure water production, a continuous flow of electricity is like the lifeblood of your business. Without it, everything grinds to a halt, impacting not only your production capacity but also your customer satisfaction and ultimately, your bottom line.

Why Stable Electricity Matters:

• Uninterrupted Production: Constant power ensures your distillation systems, packaging machines, and other equipment operate smoothly, allowing you to meet production targets and keep your supply chain running.
• Quality Control: Maintaining consistent power helps regulate water temperature and pressure, crucial factors for ensuring the quality and safety of your pure water product.
• Customer Satisfaction: Consistent delivery schedules and reliable production build trust with your customers, solidifying your reputation and loyalty.

Mitigating Power Outages:

While complete reliance on the main grid is ideal, it’s important to have a backup plan to navigate those inevitable power outages. Consider these alternatives:

• Generators: Investing in a powerful generator ensures your operations continue uninterrupted, minimizing downtime and production losses.
• Solar Power: Harnessing the power of the sun through solar panels is a sustainable and cost-effective option, especially in regions with ample sunshine.
• Battery Backup: Battery backup systems can provide temporary power during short outages, protecting your equipment and preventing data loss.

Planning for the Future:

• Energy Efficiency: Implement energy-efficient equipment and production processes to minimize your overall power consumption.
• Load Management: Schedule production times strategically to avoid overloading the grid and ensure efficient use of available power.
• Regular Maintenance: Regularly maintain your generators, solar panels, and other power sources to guarantee their reliability and performance.

By prioritizing a stable electricity supply and implementing backup plans, you can ensure your pure water business continues to thrive even in the face of power disruptions. Remember, a proactive approach to energy management will not only safeguard your production but also contribute to a more sustainable and resilient business model.

7. Marketing Your Pure Water Business

In the competitive world of the pure water business, having a solid marketing strategy is like having a map to navigate the vast ocean of potential customers. It allows you to reach your target audience, build brand awareness, and boost your sales. Let’s dive into the key elements of a comprehensive marketing strategy:

Branding:

• Develop a unique brand identity: This includes your logo, tagline, and overall visual style. Create something memorable and consistent across all marketing materials.
• Craft a compelling brand message: What sets your pure water apart from the competition? Communicate your brand values and unique selling proposition clearly and concisely.
• Build brand loyalty: Offer exceptional customer service, engage with your audience on social media, and reward loyal customers with discounts and promotions.

Product Positioning:

• Identify your target market: Who are you trying to reach? Understanding their needs and preferences is crucial for effective marketing.
• Position your product: Highlight what makes your pure water special. Is it the purity of the water, the packaging design, or the commitment to sustainability?
• Differentiate yourself: Clearly communicate how your pure water stands out from the competition, whether it’s through added minerals, eco-friendly packaging, or innovative production methods.

Marketing Channels:

• Online Marketing: Utilize social media platforms like Facebook and Instagram to connect with your target audience, share engaging content, and run targeted ad campaigns.
• Offline Marketing: Explore traditional channels like radio advertising, local events, and sponsored community activities to reach a wider audience and build local brand recognition.
• Public Relations: Build relationships with journalists and influencers to secure positive media coverage for your brand and generate buzz around your products.
• Customer Engagement: Encourage customer feedback, respond to inquiries promptly, and actively participate in online conversations to build trust and loyalty.

Remember:

• Track your results: Monitor the effectiveness of your marketing campaigns and analyze data to identify what’s working and what’s not. Adapt your strategy based on your findings.
• Be consistent: Building a strong brand takes time and effort. Maintain consistency in your messaging and visual identity across all marketing channels.
• Be creative: Don’t be afraid to experiment with new marketing tactics and ideas. Stand out from the crowd with unique campaigns and promotions.

By implementing a comprehensive marketing strategy with a focus on branding, product positioning, and customer engagement, you can effectively reach your target audience, build a strong brand presence, and ensure the long-term success of your pure water business.

8. Other Things to Know About to starting a Pure Water Business in Nigeria:

Maintenance

To ensure our customers get the best out of our products we must ensure our equipment are clean always. Sometimes NAFDAC does a regular check-up on pure water companies to ensure a quality product is being produced if they find any flaw, it can lead to the closure of that particular company.

Maintenance is done every month and some things to look out for are:

• Cleaner
• Equipment sterilization and cleaning
• Tank cleaning

Cost Implications of Starting a Pure Water Business in Nigeria

Capital Evaluation

For most people I’m just speaking Spanish so why don’t we get down to numbers to see how much it will cost us to start a pure water business for a start.

Things to consider while calculating:

• Cost of fixed equipment
• Cost of land and building
• Cost of the motor van and tricycle
• Salaries
• Nylons
• Cost Borehole and overhead tanks
• Generator
• Fuel and diesel
• Registration cost
• Printing cost

It is important to note that most of the important details and forecasts you would need to run a successful pure water business in Nigeria are contained in a pure water business plan so I urge you to reach out to us to get a pure water business plan in Nigeria

Risk Management Of Sachet Water Business

The bigger the risk in any business the bigger the profit, but sadly most Nigerians don’t like taking risks because of fear of failure, if you really think about it there is nothing like a failure in life you either win or learn something new.

I’m not literally saying everyone is going to succeed in this line of business but if you do proper planning, and management, offer a quality product, and apply the right customer retention strategy, you’ll definitely break even and succeed.

Some of the things to look at for which stand as a potential risk to a pure water business in Nigeria that can get your business closed down or collapse are listed below:

• Low-quality product
• Not having a Pure Water business plan
• Refusal to pay tax
• Improper registration of business
• No maintenance
• No workers training
• Ignorance about customers and workers complain
• Improper management
• Profit and loss balance

Common Problems To Avoid In Pure Water Business In Nigeria

Everyone hates to hear this but it’s definitely true, you must face problems in any business you do, as the popular saying goes in Nigeria “problem nor dey finish” Well for me I look for solutions rather than think about problems.

In the pure water business in Nigeria, we have some problems but to every problem there is always a solution, some of these are:

• Unclean water
• Water with chlorine taste or other abnormal tested
• Water Lickage
• Odor
• Unclean environment
• Workers conflict
• Business run down
• Equipment break down
• Poor business management and planning
• Low-quality materials and late delivery

Pure Water Business in Nigeria Frequently Asked Question

Conclusion

Pure water business is a very lucrative business to get into, but you need to set up your pure water factory in a good location and you need to get yourself a business plan these two things are very important for the successful setting up and running of pure water business in Nigeria.

We at NaijaCEO can help you with your pure water business plan for just N25,000 click on the button below to contact us on WhatsApp or email [email protected]