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HOW TO START A SACHET WATER BUSINESS IN NIGERIA

September 30, 2021by ServoNG0

HOW TO START A SACHET WATER BUSINESS IN NIGERIA

In recent times, sachet water business has continue to become one of most promising and popular businesses in the country today. This is of course due to its high demand and the need for people to get a pure source of drinking water and also for an affordable price. Sachet water is very popular in Nigeria. A lot of people drink it everyday and it is very affordable that an average Nigerian can afford it. This makes it a good business choice and a very lucrative option to start though it’s not an easy process and it also could prove costly.

In Nigeria today, there are quite a number of companies involved in the business as individuals are keen to tap into the promising business option which also boasts of a large market for the sachet water. Sachet water is the simplest and easiest source of clean water for the average Nigerian. And for the business, there are quite a number of options that can be selected from. For example, you can decide to be a manufacturer and own a sachet water producing factory or deal in the wholesale aspect of the business where you’ll be one of the large scale suppliers of the product into the market after receiving them from the producers. There are also options for retailers who eventually help with getting the sachet water to the consumers.

Starting a business like this comes with a high cost especially if you’re going large scale and you’ll be producing the sachet water on a large scale with many bags to be produced in a day. The cost could be a lot lesser if you’re not going into large scale as there are options for equipments that can be used for small scale production and still get the desired result even though it requires even more work. This operating costs of the business prepares the mind of the entrepreneur to look for ways to get sufficient funds that can help with properly running the business.

Also, there will be need for workers who might not need to have any special skills relating to the production process except they will be in charge of any machine or equipment to be used in the company. You don’t neccesarily need a lot of workers to get the business running and even in some cases when people decide to start small scale, they might choose to do the work alone and do everything involved in the business with little or no help. It is very possible as the small scale aspect requires just few equipments though it can prove to be very stressful and at the end of the day, you’ll still need people to help with distribution.

The sachet water business is highly profitable and it is something that might not need any kind of passion or motivation or even skills except to run the business and make profit. You don’t need any educational qualifications for the start of the business. It’s not something that is studied in school, just a knowledge of the basic entrepreneurial skills that can make you understand how to run the business will be enough to help you run and sustain the business. Factors like location and marketing strategies will also prove to be useful in the success of the business. It’s not an easy business but at the same time, nothing good comes easy and poor management might plunge the business into failure.

In the next sub heads, I’ll discuss the neccesary procedures involved in starting a sachet water production company in Nigeria and some of the factors in each of the steps that could determine the success of the business.

1. RESEARCH

This line will probably never get old. It is very important. The concept of researching a new business before starting it is one that is highly recommended for entrepreneurs. In a case where individuals don’t have enough information about the said business idea, they are most likely to find out enough when they do a well detailed and thorough investigation into the product, industry, competitors, risks and the business generally. Take for example the sachet water business we’re discussing. The business is one with quite a number of people involved in the business so you’ll be able to get concrete information about it either from producers or from the internet.

Use the internet properly. There are certain things about the business that you’ll need to find on the internet. Things like the kind of equipments to be used, the process of producing the sachet water and the different marketing approaches that can be applied in the already established market. All these and more are things that entrepreneurs should know before starting the business. It is also something that will feature in the business plan for the venture. The business plan, of course, is needed when starting any business as it helps with giving detailed analysis of the different aspects of the business and how you expect to operate.

The research will help you to understand if the business is something you can do and something you’re willing to dedicate your time into. It also answers several questions that was previously unanswered. It will also help you know how much is expected to be enough to serve as capital and all the necessary facilities that must be in place to achieve a successful sachet water business.

2. GET CAPITAL

Capital is one very important part of starting any business. It covers the cost of everything needed in the business and without it business cannot start. From the research, individuals are already aware of some of the things needed and how much they cost, it is now up to them to create a budget for all the things to be included as part of the capital. As mentioned, the cost of starting, operating and sustaining a sachet water business is expensive so entrepreneurs will need to source for funds if not already available. From the budget, the amount to be needed for the business will also be clear.

3. SECURE A LOCATION

This is where the factory will be located. It is always advisable to select a place close to the market and also one with good road network. For this sachet water business, you might need to secure a piece of land or you can just rent a place. Whichever one you choose, try to secure a low budget option that will be suitable for the business to reduce cost.

4. GET THE EQUIPMENTS AND EMPLOY LABOR

First things first in starting a sachet water business is to dig a borehole in the location selected. The borehole is what will generate the water that will packaged into the sachet water. After that water will need to be purified and with that comes the need for a purifier. There are different types of purifiers. The most used purifier by many manufacturers is the Reverse Osmosis Distillation System. It has a high level of purity though it is very expensive to get. The low budget option also used by many is the Ultra Violet Bulb System. It is not as effective but it low cost and is affordable compared to the Reverse Osmosis system. After this process is completed, the water can then be packaged in the nylon and then sealed. There’s a machine for this and it makes the work easier. Next in the process is distribution, and you will need to get a truck for delivery.

All these processes can be executed with the help of workers. You’ll need an operator for the equipments, packagers to help with packaging the sachet water and also drivers and distributors. This might not be neccesary if you’re starting small scale and as mentioned earlier even when you want to get workers, you don’t need too many people.

5. REGISTERING WITH NAFDAC

This is one of the most important processes involved in the business and in registering the business. Visit NAFDAC and obtain relevant forms to get registered and to receive a certificate of approval.

6. MARKETING, DISTRIBUTION AND SALE

At this stage, the product is introduced to the market and is distributed to the wholesalers and retailers. There are different marketing approaches available in the business, do your research and develop a strategy that best suits your business. The sachet water can then be sold to get the profit.

With all these, a sachet water business can be started and in a short while you can be sure of making sales and getting the profits provided you do all the neccesary things involved to get the business to be successful.


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