When you look at how sachet water, popularly known as pure water, is consumed in Nigeria, you might be interested in going into the business. But, first, you need to know how to start a sachet water business.
As the name implies, sachet water is water packaged into small sachets and sold to people. On average, nine out of ten Nigerians consume sachet water. Unlike bottled water, sachet water is affordable, especially for low-income earners. For example, a water sachet in Nigeria is sold for as low as 15 naira to 30 naira or more, depending on the location.
As an entrepreneur working on introducing a solution to a populated and unstable economy like Nigeria’s, it is advisable to go for a sustainable business like a sachet water business.
A sustainable business can fund itself and survive for a long period regardless of the country’s economic situation. This is because most sustainable businesses are centered around producing solutions needed by people daily.
The sachet water business is one of such sustainable businesses you can start, especially in a country like Nigeria. I mean, who doesn’t drink water? No one is right!
If you are thinking of how to start a sachet water business in Nigeria, and you have no clue of how to go about it, relax your mind. In this piece, I’ll provide you with ten effective solutions for how you can start a sachet water business in Nigeria. Stay tuned.
Table of Contents
How to Start a Sachet Water Business in Nigeria
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Get a clean location for the factory
One great tip on how to start a sachet water business is getting a hygienic location for the factory. It is a business identified under the food sector, and thus, it must be done in an environment where the production activities will in no way harm the consumers. Therefore, it is often advisable to situate a sachet water factory where there is no environmental pollution.
After your business has started to kick off, you will be expecting people from health, food, and other regulatory ministries to come to your factory for periodic inspection; seeing any form of pollution or contamination to the water can lead to your factory getting shut by the regulatory bodies. Hence, it is better to make all the necessary preparations ahead.
Do not locate a sachet water factory inside your house; that is completely risky. Instead, the factory should be a separate entity from the home.
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Carry out a market survey
A few years back, the price of sachet water in Nigeria was #5, and now in 2022, sachet water is not sold at that amount again. It now ranges from #15 to #30 due to so many economic factors.
Therefore, it is safe to assume that the price might double to #60 per sachet in a few years. It is important to conduct field research before starting a sachet water business.
During the period of conducting field research about how to start a sachet water business, you will be exposed to so many things such as; the way pure water is produced, the equipment needed, the cost, and the type of workers you will need to hire, and most importantly how to sell your product in the competitive sachet water market.
After conducting a market survey, it is advisable to conclude it with a projection of how the business will be sustained in a few years. This is important because it will help you understand better how to start a sachet water business as an entrepreneur.
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Get Capital
A sachet water business is not one you can start with #100,000 or #200,000, and then you conclude you have done enough. The business requires a lot of capital. This is because the water used to produce those sachets water has to be treated fully before packaging. If the water is found wanting of anything unclear, it will affect the quality of the water produced.
Producing sachet water that is dangerous to health would lead to low demand from the consumer’s end. Eventually, the company would be closed down by the government regulatory bodies.
Although there is no fixed amount required to get capital before one can start a sachet water business in Nigeria, an entrepreneur should consider some of these things before making a move;
- Factory location cost/rent
- Cost of registering the business
- Equipment needed in the factory
- Logistics/ transportation cost
- Electricity bills/fueling cost
- Employee’s salary
- Insurance
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Register your business
Another effective solution on how to start a sachet water business in Nigeria is to register with the appropriate government agencies.
The Corporate Affairs Commission (CAC) and the National Agency for Food and Drug Administration and Control (NAFDAC) are the two important agencies you will be required to get approval from before starting a sachet water business.
After registering with NAFDAC, you should expect periodic visits from them. Their basic responsibility is to ensure the safety and hygiene of the water they produce for people to consume. If NAFDAC does not approve your sachet water production factory, your business will be shut down.
To prevent this kind of loss, NAFDAC has a guideline on what needs to be put in place before a production factory can be approved. You can always reach out to them for guidelines (read: NAFDAC Guidelines on Sachet Water Production )
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Have a stable source of water and electricity
If you are planning on selling a product, the number one thing that should be on your mind after you come up with the business idea is to find a stable supplier or supply of the product.
In the case of a sachet water production business, water is the most important supply needed here. Therefore, ensure your factory is not located far from a water source. You can also consider building a borehole in the factory to help provide water.
Electricity is another factor you should consider before starting a sachet water business in Nigeria. Do not rely on the unstable electric situation of the country, have a standby generator or solar energy supply that will help provide 24 hours electricity to the factory.
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Make Logistics a top priority
For the finished products to reach your target audience, you need to consider an effective logistics plan. For example, transporting sachet water will require a van, lorry, or truck, depending on the quantity produced. Ensure you have all these put in place before starting production.
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Get the necessary equipment
Factory equipment, such as water purifiers, water filling lines, PVC water tanks, water pumping machines, and sealing machines, is needed in a sachet water production factory. Having these on your list will help you understand better how to start a sachet water business.
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Hire skilled workers
One thing you should not joke about while planning how to start a sachet water business is getting skilled workers.
You will need to get more technical staff because most of the workload will be done with people with technical experience. Before hiring any staff, ensure they are up to the task.
It is risky to assume employees would learn on the job regarding food production or processing business. However, a simple mistake can lead to a production error. If you consider upskilling your staff as they work, ensure you put them to the test before launching operations.
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Run advert campaigns
Market your product through the various available marketing channels. Understandably, the market for sachet water is a competitive one. Do not be deceived by this; something should make you stand out from your competitors. Find your unique selling point and optimize it to the fullest in your marketing strategy.
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Work with sachet water distributors
Having a stable distributor in your sachet water supply chain can go a long way in increasing sales. This is an effective tip on how to start a sachet water business.
Remember, you will be producing in bulk and require a middle person between you and your consumers. A sachet water distributor is that middle person. With a distributor in the picture, you will be able to plan production and avoid producing more than the market demand.
Conclusion
The above-listed solutions on how to start a sachet water business are gathered from the experiences shared by entrepreneurs who have successfully started their sachet water business in Nigeria. It is, however, important that you note that there is no single format for starting this business, but with an effective and well-planned market survey, you will be able to get a head-start.
Are you a sachet water business owner operating in Nigeria? Would you like to share your experience in the comment section? Please do that below. Your input would go a long way in guiding aspiring entrepreneurs.