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How to start an online Bottled water delivery business: All you need to know

By Hari Bala Krishnan 8th November 2022

The thought of kickstarting a new business can be overwhelming particularly if you are a first time entrepreneur and you don’t have someone to guide you.

In the era of start-ups, it is natural to feel motivated as an entrepreneur, and a business idea is what can get you going. 

In this blog, we will explore in detail, the water delivery business and why is it a profitable venture to start? 

Clean and accessible drinking water.

Facts about the water delivery industry

Post pandemic, the bottled water industry has become one of the booming industries in Europe and the American continent. People are looking for safe, clean and accessible drinking water thereby pushing the demand. 

Here are some facts: 

  • Size of global bottled water industry in 2021 was valued at USD 283.01 billion.
  • The industry is expected to expand at a Compound Annual Growth rate (CAGR) of 6.7% in the next decade.
  • A large part of the industry is dominated by local firms.
  • Despite heavy competition from large players, small and medium business owners still manage to earn a good profit.
  • The demand for clean and convenient drinking water is evergreen.

Read this to know more about bottled water industry.

Customer Persona

Before you start any business, it is important to figure out the buyer persona. Who are going to be your customers and what are their needs? 

The good news here is, in case of a bottled water delivery business, the target segment is wide, ranging from residents to commercial establishments.

Here’s a look: 

  • Business establishments who would wish to provide bottled water to their employees.
  • Businesses like restaurants, cafes and consumer retail stores.
  • Residents who prefer bottled water to other options.

Upfront investment

The basic question that comes to your mind while thinking of business is “How much money will I need?”

The upfront costs for setting up a bottled water business is much lower compared to setting up a venture in other segments.

We have stated in detail below that will help you in taking a decision. 

  • Storefront property rent: Major part of the investment goes into leasing a property in a prime location which is conducive for the business in terms of logistics. Property rent in a tier 2 city in United States ranges from $1,250 to upwards of $4000.
  • Online model: One can opt for an entirely online model to cut costs. Dropshipping model is also a great option to kickstart your business with minimal investment.
  • Property interior remodelling: It is essential to renovate or remodel the interiors of the property which you have leased for it to be usable for the business operations.
  • Utilities: You might also need to invest in furnitures for your office and other utilities for the storage of the goods.
  • Licenses and incorporation fee: As bottled water business falls under consumables category, most states require you to apply for food safety audit and relevant license permits which allows you to operate a consumables business.
  • Transportation costs: You might need to rent out or buy a mini truck for the purpose of delivery of goods. Alternatively to cut upfront costs you can also choose to outsource your delivery process to a trusted service provider.

Risks and profit margin

Both packaged drinking water and mineral water are profitable businesses. The only risk in the industry is loss incurred due to competition. 

You should ensure that there are not too many manufacturers or suppliers in the geographical location you are planning to kickstart your business in. 

Other aspect to take into account is that there is a lot of ethical concerns surrounding bottled water business in terms of environmental hazard posed by the industry due to usage of single use plastic.

Incorporation

First step towards getting your business formally incorporated is to choose an available business name and register it with Registrar of Companies or equivalent legal authority in your state.

You can either choose to complete the process by yourself or avail the services of a Company Secretary or any Company which provides business registration service. 

You might be required to furnish the proof of identity of the partners or directors and proof of address of the business operation. 

The incorporation fee slightly varies depending on the state you wish to register your business in. 

Parallel to the incorporation process, you also need to apply for license permit go deal with manufacturing or packaging of edible food items or consumables.

Read this to know more about incorporation process.

Business operations

You might need to employ an accountant and operations executive besides delivery executives to smoothly run the daily operations of your business. 

You can choose to set up and manage the business either the traditional brick and mortar mode or digitalise the business for a seamless experience of all stakeholders. 

Whether it is business or war, logistics define your victory. It is rightly quoted by Napoleon Bonaparte, “Amateurs discuss tactics, the professionals discuss logistics.” 

The better you plan the logistics, the higher is the probability of your business’s success.

Speaking about logistics, it is obvious that you gain an edge by deploying technology backed processes for seamless execution. 

Automating your delivery process removes bottlenecks which you are likely to encounter at various stages of the logistics process.

Conclusion

Entrepreneurship is all about adopting to changes and turning challenges into opportunities. Whether the economy is in recession or expansion, the consumer goods business segment remains stable.

Considering the low overhead costs of extracting and packaging widely available natural resource, bottled water business is a lucrative option especially for first time entrepreneurs. 

If you wish to start your own online business, we can help you with the technology. Contact us for more assistance. 

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