How to Start a Pure Water Business in Nigeria – The Complete Guide
Hello and welcome to Cashandtech, in this very detailed post, I am going to show you how to start a pure water business in Nigeria step by step, after reading this post, you can start your own pure water business from scratch without facing any difficulties because I have made very extensive research about pure water factory business before writing this post. I decided to do the research and put out this post so you don’t have to stress yourself about anything at all. So if you want to start a pure water factory, in this post you will find everything you need.
Pure water business is becoming more and more popular in Nigeria, this is because Nigerians lack a good water system, so on the streets, in shops and almost everywhere you will see people selling pure water, some people sell pure water in bags, while others sell them in pieces.
And this means one thing, it means that the pure water business is very progressive in Nigeria, very popular and also very lucrative, that is why more and more people are investing in the business, I guess, it is also the same reason that made you want to know how to start, and in this post, I will walk you through all the steps you need to become the latest pure water business owner. So without wasting any time, let’s get started
📃Table of Contents
- Setup a business plan
- Rent an apartment for the pure water factory
- Drill a borehole
- Install a distillation system
- Buy a pure water sealing machine
- Employ staff
- Acquire a truck for distribution
- Register your pure water business with CAC
- Get a NAFDAC registeration
- Start marketing your pure water business
Cost of setting up a pure water factory in Nigeria
Starting a pure water business in Nigeria will cost anywhere from ₦300,000 to ₦500,000 Depending on some factors. If you already have an apartment for your pure water business, it will cost ₦300,000, this is for the rest of the equipment. but if you are starting from scratch, it will cost ₦500,000.
There are also some other things that should be considered, such as where you want to set up your pure water factory, the size of the pure water business you want, is it a small-sized business or a big one. All these things should be considered when talking about how much it will cost you to start a pure water business.
Is pure water business profitable?
Speaking of profitability of pure water business, Pure water business is very profitable, because Nigerians consume pure water a lot, wherever you go, you will see people selling pure water, in parks, hotels, on the streets and almost anywhere you can think of. The sun in Nigeria is also very hot and considering the lack of a clean water system in the country, everyone is considering pure water as the alternative, so starting a pure water business is very profitable in Nigeria. You can read more in my recent post about how profitable is pure water business in Nigeria.
When you go to the market in Nigeria, you will see a lot of people doing the business, it is almost oversaturated, sometimes it is fun to look at the number of people that do the business but still, the business runs progressively regardless of the competition.
Things you should know before starting a pure water business in Nigeria
1. How much is pure water in Nigeria?
The cost of one sachet of pure water is not the same everywhere in Nigeria, but the price ranges from ₦10 to ₦30
2. NAFDAC registration
NAFDAC registration is a must for your pure water business, if you proceed to do your pure water business without registering for NAFDAC, you may face some legal issues.
3. CAC registration
You must also register your pure water business with CAC, also if you don’t register for CAC, you may face legal issues.
Equipment needed for pure water business
Before you can start a pure water business, you will need some equipment, you need this equipment for the complete production of pure water. Below is all the equipment you need for a successful pure water business.
- Pure water sealing machine
- Distillation machine
- Pure water packing bags
- Pure water sachet bags
Problems facing pure water business in Nigeria
While pure water business is lucrative, it also has some negative factors, and this should not stand as a discouragement, because in every business, there are advantages and disadvantages, and I am sharing this with you not to scare you away from the business but to educate you more on the things you should know and expect so you don’t get funny surprises.
1. NAFDAC registeration cost
One of the biggest problems facing pure water business in Nigeria is NAFDAC registration, it is a problem because before you can do a pure water business, you will register in the NAFDAC office which is very expensive, it is sad because after spending money on the business, you will still need to register for NAFDAC or you cant continue
2. CAC registration cost
Before you can do a pure water business in Nigeria, you need to register your business with CAC. while it is a good thing to do because it helps you secure your brand so other people can’t use your brand name elsewhere in the country. it also costs an extra fee.
3. Distillation system
One of the things you should pay close attention to when starting your pure water business is the distillation system you use, you don’t want to end up with a bad distillation system that will give a bad taste to your pure water or a distillation system that won’t purify the water effectively. This is the reason people are very selective of the pure water they consume because some of the pure water is poorly purified. And deciding which distillation system to use is tricky if you haven’t used one before.
4. Distribution
Distribution is also very critical, although it may seem like a straightforward procedure, there are things you need to know. Sometimes the distributor of your pure water may have an accident on the road, and sometimes the truck used for distribution may break down while on the move, so take note of this.
5. Competition
Pure water business is very lucrative, and for this reason, many people are already considering the business, this has made the business to be very competitive, so if you don’t have a good marketing strategy and good production, you may never make it to the market.
How to start a pure water business in Nigeria
1. Setup a business plan
A business plan is one thing you should not overlook if you want your business to be successful. Also, you need to set up a business plan so that you know exactly how much you are spending and what you should expect, don’t just start a pure water business blindly, plan everything out before taking the next step.
And setting up a business plan for your pure water business is very easy to do, you don’t have to have a degree in business to do it. All you need is to write down the complete steps you will need, such as the things you need to buy, where your business should be located and how you want to market your product. This is something that you can do yourself or with a little help from a friend or partner. You should read how to set up a business plan for clarification.
2. Rent an apartment for the pure water factory
The next thing you need to do is to rent the apartment you want to use as your pure water factory, this should be located where good roads are available, when deciding where you want your pure water factory to be located, there are a lot of things you must consider, roads are essential, because after producing pure water, you will need to distribute them to buyers, and without access to a good road, it will give you hard time, also, your transportation may be delayed due to bad road.
The Nigerian road system is bad, that we know for sure, that is why you need to have a clear and effective business plan first, when making your business plan and making decisions on which apartment to rent and where it should be located, put roads on your mind.
3. Drill a borehole
You need to drill a borehole where you will be getting the water from, this should be located in a clean environment, and you also need to hire the right people for the job, if possible, drill the borehole around the apartment you want to use for the pure water factory. Drilling a borehole will take about a day or up to 3 days depending on the people that are doing the job
4. Install a distillation system
A distillation system is a must for your pure water production, and I should also stress that not all distillation systems are worth your investment, some of them are more effective than others, and consumers are expecting very clean and healthy water from every pure water factory.
In your pure water business, you want to stand out from the crowd, you want to make sure your customers enjoy your product, and the best way around it is to have a good distillation system that will help you purify the water. Remember that everyone is expecting clean and healthy water, so it is your job to provide the best.
5. Buy pure water sealing machine
A pure water machine is the next thing you will need after drilling a borehole and installing a distillation system because the pure water machine will help you package water in small sachets, a pure water machine operator is also needed for a good job, you don’t want to ruin your packaging system. There are different pure water sealing machines that you can choose from, but purchasing a pure water machine will have an impact on your business.
When purchasing a pure water sealing machine, make sure you are dealing with a good one, some pure water sealing machine breaks down easily and some of them are very strong and effective, when you want to buy, you must look out for these things. And it is also advisable that you have more than one sealing machine, so that, when you encounter a problem with one, you will use the other, or if you need to produce many pure water sachets, it will be faster. If you want to know how much pure water sealing machine costs, read my previous post, pure water machine prices in Nigeria.
6. Employ staff
Good staffs make up a good company, there is no good company without good staff, put this at the back of your mind when hiring workers. You can employ as many workers as you need to run a successful pure water business, you need some people to work with the production of pure water, then you also need some other people that will be transferring the pure water to the truck, and also some people that will be in charge of offloading the pure water for buyers.
When employing staff, it is advisable that you employ people with a previous experience in the business. You need these people to work in the critical and more complicated parts of the business, and then you can hire other people to work in the less complicated areas.
7. Acquire a truck for distribution
A truck and a truck driver is very essential for your pure water business, so you will need at least, one truck for your business, although more than one truck is preferable, if you can only afford one truck, it is also fine, as long as the truck is in good shape and will serve you without issues.
Most people can’t afford their own truck, so they consider renting each time they need it for distribution, but it will be better if you can afford one, some other people are using tricycles for pure water distribution, but with tricycles, you can supply people that are living far from you, and when purchasing a truck, make sure you are purchasing the ones that can handle heavy duty.
8. Register your pure water business with CAC
Corporate Affairs Commission (CAC) is a must-have for your pure water business in Nigeria, you need to register for CAC to secure your business brand because registering for CAC means that you are claiming ownership of your brand, which means other people can’t use the same name you are using for their business.
The procedures you need to take to register your business with CAC are simple, and you can do everything yourself, you can read this article to know how you can register your pure water business with CAC.
9. Get a NAFDAC registeration
NAFDAC (Federal Inland Revenue of the State Internal Revenue) is also very essential for your business. if your pure water business is not registered with NAFDAC, you can’t do business, and even if you do, you will face legal issues, because your product must be tested and approved by NAFDAC before you can start distribution in Nigeria, NAFDAC makes sure your product meets the requirements of public consumption.
It may take some time for your business to be fully registered with NAFDAC, after your business is registered, you will receive a NAFDAC registration number, this number has to be printed on the sachets of your pure water.
NAFDAC requirements for pure water production
You must have a good water source
You must have a good place where your water is sored
Your water must be clean and safe for consumption
Your business must be registered with CAC (Corporate Affairs Commission)
10. Start marketing your pure water business
Now that your pure water factory is set, and you have started production of pure water, the last thing you need is marketing, you need to market your product to reach more customers and give you exposure, marketing is very important for every business. One thing you must know is that pure water business is very competitive in Nigeria, so to thrive, you need to have a good marketing plan.
Reach out to more people and showcase your product, this will help you start getting a few clients, you should consider marketing your product to nearby clients first after you dominated the neighbouring clients, you can start reaching out to other clients that are far away from you.
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Final thoughts on how to start a pure water business
Pure water business is no doubt a very good and profitable business that you can do in Nigeria because the lack of clean pipe-borne water in Nigeria has led everyone to search for a source of clean and healthy water. Everyone is considering pure water that they want to consume, and if you can start a pure water factory now, it will be very profitable for you
One important factor you must not neglect when starting a pure water business is the production of clean and reliable water, if you can produce clean and healthy water, many clients will hear about your factory and start reaching out to you for business.
So if you want to start a pure water factory, this post will provide you with all the necessary steps you need to take and a few things you should know, if this post has helped you, please consider sharing it on your social media page for later reference, also share because other people on your social media may also find it useful
And if you have any questions, leave it in the comment section and I will take out time to reply to you. Thanks for reading this post, I wish to see you next time, have a nice day.