Bottled Water Business Plan
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Executive Summary
Business Overview
ClearRiver Bottled Water Company is a startup bottled water company located in Knoxville, Tennessee. The company is founded by Eileen Dursten, a local landowner with a series of fresh waterfalls and streams located on her thirty-acre property just outside the city of Knoxville. Eileen has been studying the concept of providing bottled water from an acceptable source of freshwater for some years. She recently had the water in three streams on her property tested for bacteria and parasitic evidence, and received a report that the water was highly-potable and acceptable for bottling. With this information, she’s decided to move forward to build the necessary infrastructure and office area to start her bottled water business.
ClearRiver Bottled Water Company will provide a unique, fresh and local source of water within each bottle, made especially for the communities within the Knoxville area. The brand name will become synonymous with “clean, crisp notes of the mountains” and it will be a distinctive product for consumers to purchase. ClearRiver Bottled Water Company will be the ultimate choice in Knoxville for fresh bottled water, while also offering the best pricing for local water in Knoxville.
Product Offering
The following are the products that ClearRiver Bottled Water Company will provide:
- Bottled water in consumer-sized containers: 12 ounce, 16 ounce and 24 ounce.
- Bottled water in 5-gallon and 7-gallon drum sizes to fit water dispensing machines.
- Flavored water (watermelon, peach, apple, lemon, and lime) in 16 ounce bottles.
- Carbonated water in 12 ounce, 16 ounce and 24 ounce sizes.
Customer Focus
ClearRiver Bottled Water Company will target all individuals within the greater Knoxville area and surrounding communities. In addition, they will also target companies who use water dispensing systems. They will also target party planners and event coordinators who will want large quantities of specialty water or custom-made belly bands on the bottles for weddings, anniversaries, etc. ClearRiver Bottled Water Company is committed to serving every customer in the best way possible, meeting requests for customized bottles or simply one bottle of water with courtesy.
Management Team
RiverClear Bottled Water Company will be owned and operated by Eileen Dursten, who will take the role of President. She has recruited John Matheson, a Senior Engineer, from the Jacksonville, Florida company, SwampWater, LLC.
John created the SwampWater brand and developed the water treatment and bottling systems to the 6M business it is today. He initiated robotic labeling and packaging in 2017 and has been at the forefront of business trends throughout his entire career of twenty-five years at SwampWater, LLC.
John’s role will be Senior Engineer and Vice President of the company. He is eager to be back in the Knoxville area, where his family resides, and is also eager to create another success with RiverClear Bottled Water.
Success Factors
ClearRiver Bottled Water Company will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team at ClearRiver Bottled Water Company.
- Faultless system for treating and clarifying the pure local water of Knoxville prior to bottling.
- Unique flavoring and/or carbonation processes added to the product line that will appeal to all ages.
- Unique aspect of fresh water from the immediate area, as a “taste of home” product.
- ClearRiver Bottled Water Company will offer the best pricing in Knoxville for bottled water in comparison to other offerings. The customer, no matter whether a small concern or a large business, will receive modest pricing for superior products.
Download the Bottled Water business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
ClearRiver Bottled Water Company is seeking $200,000 in debt financing to launch its ClearRiver Bottled Water Company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for ClearRiver Bottled Water Company.
Company Overview
Who is ClearRiver Bottled Water Company?
ClearRiver Bottled Water Company is a newly established full-service water bottling company located in Knoxville, Tennessee. ClearRiver Bottled Water Company will be the most reliable, cost-effective, and efficient choice for bottled water in the city of Knoxville and the surrounding communities. ClearRiver Bottled Water Company will provide a comprehensive menu of pure local water, flavored waters, and carbonated water products for any customer to utilize. Their full-service approach includes a free water-tasting event in their bottling facility for those who would like to tour the bottling plant.
Eileen Dursten and John Matheson will be able to provide a variety of bottled water for the residents and visitors of Knoxville. The team of professionals are highly qualified and experienced in water purification, bottling and marketing. ClearRiver Bottled Water Company is the perfect solution for those customers seeking the crisp, clear water that comes from natural streams within their local area. The best customer service will accompany that water, ensuring a seamless experience for all customers.
ClearRiver Bottled Water Company History
Since incorporation, ClearRiver Bottled Water Company has achieved the following milestones:
- Registered ClearRiver Bottled Water Company, LLC to transact business in the state of Tennessee.
- Has a contract in place at one of the office buildings, where Eileen Dursten will manage the staff within the 10,000 square foot office space.
- Reached out to numerous contacts to include RiverClear Bottled Water at corporate and private party events, in addition to distribution at grocery stores and convenience shops throughout the regional area.
- Began recruiting a staff of four employees for the bottling plant and 2 office personnel to handle filing, scheduling and mitigating errors.
ClearRiver Bottled Water Company Services
The following will be the services ClearRiver Bottled Water Company will provide:
- Bottled water in consumer-sized containers: 12 ounce, 16 ounce and 24 ounce.
- Bottled water in 5-gallon and 7-gallon drum sizes to fit water dispensing machines.
- Flavored water (watermelon, peach, apple, lemon, and lime) in 16 ounce bottles.
- Carbonated water in 12 ounce, 16 ounce and 24 ounce sizes.
Industry Analysis
- The bottled water industry is expected to grow over the next five years to over $12 billion in 2030.
- The growth will be driven by consumer demand for clean, notably pure and reliable water sources.
- The growth will be driven by the need for safe water in areas where unsafe water is often consumed, leading to illnesses.
- The growth will be driven by the demand of consumers seeking flavored and carbonated waters in lieu of sugary sodas and fruit juices.
- Costs will likely be reduced as prices are lowered for bottling processes through the use of robotics and other time-and-space saving bottling techniques.
Download the Bottled Water business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
ClearRiver Bottled Water Company will target individuals, companies, event planners, and party coordinators in Knoxville, Tennessee. They will target associations and city and state governmental entities who will want products that originate in the city or state.
The precise demographics for the ClearRiver Bottled Water Company are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
ClearRiver Bottled Water Company will primarily target the following customer profiles:
- They will target all individuals within the greater Knoxville area and surrounding communities.
- They will target companies who use water dispensing systems.
- They will target party planners and event coordinators who will want large quantities of specialty water or custom-made belly bands on the bottles for weddings, anniversaries, etc.
- They will target every customer, whether a small shop or a large enterprise and serve every customer with courtesy.
Competitive Analysis
Direct and Indirect Competitors
ClearRiver Bottled Water Company will face competition from other companies with similar business profiles. A description of each competitor company is below.
Crystal Water Company
The Crystal Water Company, a direct competitor, is owned by a conglomerate, S & H Products, located in Dallas, Texas. Crystal Water is produced in Texas, bottled, and shipped to national distribution centers for delivery to individual chain markets, such as Walmart, Target, Safeway, and other companies that sell bottled water. Distribution is approximately 11 million bottles of water shipped monthly. The water is labeled as “pure” and carries no flavor or carbonation.
The S & H Products Company is owned and operated by the Stewart and Hart Family Trust, which has been in existence for over 75 years, selling and bottled water from a water purification system located on the family ranch.
Naturally Sweet Sparkling Water Company
The Naturally Sweet Sparkling Water Company is a direct competitor, in that the company bottles and ships water throughout Tennessee and surrounding areas. The water is carbonated, sweetened with a sugar product, and flavored artificially. No claims are made of “pure” or “local” water being used in the making of the bottled waters.
The Naturally Sweet Sparkling Water Company is owned by Hugh Grover, a businessman who started a grocery outlet in 1990 and saw the opportunity to move into bottled sparkling water when parents began to complain that their children were drinking too much soda. Hugh played with water flavors and carbonation levels until he found the perfect fit, then brought in a bottling company to replicate his efforts. His company targets individuals, companies, and private party planners across the state of Tennessee.
Grover’s Back Road Water
Grover’s Back Road Water was started in Tennessee in 1973 by Arnie Grover, a farmer who held thirty acres of prime dark dirt and planted it all in sweet corn and tobacco. Arnie saw the potential to add products to his farm sales; he developed an earthy water to replicate the very dark water of the farming communities in the Tennessee areas. Arnie targets young adults and older adults who favor unusual tastes and water that is reminiscent of old farmhouse water systems.
Grover’s Back Road Water is found in bars, coffee shops, restaurants, and convenience stores within the outlying communities of Knoxville and is sold in single 16-ounce bottle sizes only. It is an “acquired taste” and consumers are often split on whether or not the earthy-flavored water is exceptional or not. The company has developed plans to increase production and introduce new flavors of water, but has not done so as yet.
Download the Bottled Water business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
ClearRiver Bottled Water Company will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly-qualified team at ClearRiver Bottled Water Company.
- Faultless system for treating and clarifying the pure local water of Knoxville prior to bottling.
- Unique flavoring and/or carbonation processes added to the product line that will appeal to all ages.
- Unique aspect of fresh water from the immediate area, as a “taste of home” product.
- ClearRiver Bottled Water Company will offer the best pricing in Knoxville for bottled water in comparison to other offerings. The customer, no matter whether a small concern or a large business, will receive modest pricing for superior products.
Marketing Plan
Brand & Value Proposition
ClearRiver Bottled Water Company will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees who are able to provide a comprehensive menu of bottled waters, including flavored waters and carbonated waters.
- Fresh, pure water from local streams that is purified, filtered and bottled under the best conditions.
- Packaged and presented to appeal to all consumers.
- Pricing that is modest and lower than national brands of water.
- A “made at home” feel and look to the bottled water.
Promotions Strategy
The promotions strategy for ClearRiver Bottled Water Company is as follows:
Social Media Marketing
ClearRiver Bottled Water Company will use social media contacts provided by friends, family and local contacts to assist in sharing news about the launch of ClearRiver Bottled Water Company. The announcements will include free “water-tasting” parties at local malls and discounts on bottled water when the ClearRiver Bottled Water Truck is parked in the central area of Knoxville and offering giveaway prizes.
Professional Associations and Networking
ClearRiver Bottled Water Company will join associations and community groups to network and build relationships with area companies in Knoxville. Both Eileen Dursten and John Matheson will join groups and work to secure contracts for events or large-quantity orders.
Print Advertising
One week prior to the launch of ClearRiver Bottled Water Company, every home in Knoxville will receive a direct mail offer, including a discount on bottled water and an invitation to attend a free tasting in the Knoxville city square. Prizes will be distributed at that event to celebrate the launch.
Website/SEO Marketing
ClearRiver Bottled Water Company will utilize a website that is well-organized, informative, and complete. It will list all the services that ClearRiver Bottled Water Company is able to provide. The website will also list the contact information and the places where the bottled water can be purchased. SEO marketing tactics will be utilized so that anytime someone types in the Google or Bing search engine “bottled water company” or “bottled water near me”, ClearRiver Bottled Water Company will be listed at the top of the search results.
Pricing
The pricing of ClearRiver Bottled Water Company will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
Operations Plan
The following will be the operations plan for ClearRiver Bottled Water Company.
Operation Functions:
- RiverClear Bottled Water Company is owned by Eileen Dursten, who will take the role of President. She will develop relationships with large accounts and work on product development with John Matheson.
- Eileen Dursten has recruited John Matheson, a Senior Engineer, from the Jacksonville, Florida company, SwampWater, LLC. John’s role will be Senior Engineer and Vice President of the company. John will oversee all water purification and treatment processes in addition to developing new products and managing staff members.
- Rocky Anderson will be the Operations & Maintenance Director for the facilities and the office. He will lead a team of two staff members who will clean, prepare, assist in filtration and other duties as assigned.
- Pamela Nygard will be the Office Manager, overseeing systems, scheduling and handling staff matters.
Download the Bottled Water business plan template (including a customizable financial model) to your computer here <–
Milestones:
ClearRiver Bottled Water Company will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease office space
- 5/15/202X – Finalize personnel and staff employment contracts for the ClearRiver Bottled Water Company
- 6/1/202X – Finalize distributor contracts for ClearRiver Bottled Water Company
- 6/15/202X – Begin networking at industry events
- – Begin moving into ClearRiver Bottled Water Company office
- – ClearRiver Bottled Water Company opens its office for business
Management Team
ClearRiver Bottled Water Company will be owned and operated by Eileen Dursten. She recruited John Matheson, a former Senior Engineer, from the Jacksonville, Florida company, SwampWater, LLC.
Eileen Dursten, a local landowner with a series of fresh waterfalls and streams located on her thirty-acre property just outside the city of Knoxville. Eileen has been studying the concept of providing bottled water from an acceptable source of freshwater for some years. She recently had the water in three streams on her property tested for bacteria and parasitic evidence, and received a report that the water was highly-potable and acceptable for bottling. With this information, she’s decided to move forward to build the necessary infrastructure and office area to start her bottled water business.
John’s role will be Senior Engineer and Vice President of the company. John will oversee all water purification and treatment processes in addition to developing new products and managing staff members.
Financial Plan
Key Revenue & Costs
The revenue drivers for ClearRiver Bottled Water Company are the fees they will charge to the customers for their products.
The cost drivers will be the overhead costs required in order to staff the company office. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
ClearRiver Bottled Water Company is seeking $200,000 in debt financing to launch its bottled water company..The funding will be dedicated towards securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and association memberships. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Bottled Water business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Customers Per Month: 600 (30 corporate; 570 single-unit)
- Average Fees per Month: $27,000
- Office Lease per Year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Bottled Water Business Plan FAQs
What Is a Bottled Water Company Business Plan?
A bottled water company business plan is a plan to start and/or grow your bottled water business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
What are the Main Types of Bottled Water Companies?
There are a number of different kinds of bottled water companies, some examples include: Purified or Distilled bottled water, Sparkling bottled water, and Alkaline bottled waters.
How Do You Get Funding for Your Bottled Water Company?
Bottled Water companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Bottled Water Company?
Starting a bottled water company can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Bottled Water Business Plan - The first step in starting a business is to create a detailed bottled water business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your bottled water business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bottled water business is in compliance with local laws.
3. Register Your Bottled Water Business - Once you have chosen a legal structure, the next step is to register your bottled water business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your bottled water business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Bottled Water Equipment & Supplies - In order to start your bottled water business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bottled water business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful bottled water company: