The global water purification industry is growing at a rapid pace, and experts predict the global market will be worth $45.3 billion by 2022.
Thus, if you’re looking to start a business that has massive growth potential, a water purification company looks like a good bet.
But starting a water purification business isn’t easy, and you likely have many questions about what’s involved. Will you need any special paperwork? What kind of staff do you need to hire?
Below you’ll find some tips on how you can start a water purifying company. Read on, and you’ll learn how purifying water can lead you to pure profit.
What Does a Water Purification Business Do?
A water purification business isn’t the kind of business you hear about every day, so you might be wondering what this kind of company actually does.
At the most basic level, a company like this might take salt water and turn it into drinking water. However, such a business might also clean water that’s contaminated in one form or another, and make it worthy of consumption.
From this point, the water can then be sold to companies that sell ‘water-related products.’ This might include companies that sell bottled water or companies that provide water for food products.
Of course, the company that purifies the water could sell its own water-related products.
Taking this step can be highly profitable because it allows the company to own the whole supply chain. No money goes to a ‘middle-man,’ and so you get to keep every ounce of profit.
Which Sector Should You Focus On?
The kind of business you start will depend on personal preference, and how much money you can spare. As you might’ve guessed, the more ambitious your goals, the more capital you’ll need to get your business off the ground.
If you want to purify the water and sell it to the end consumer, you’ll need a lot of resources.
That’s because you’ll need to invest capital into purifying the water, but also into the product too. You’ll need to invest in a bottling plant, and you’ll also have to spend money on marketing, so people buy your water.
If you’re only looking to supply companies that sell water-related products, then you can keep your costs low.
That’s because you’ll only need to purify the water, and you can let another company worry about everything else. Such a business might result in lower profits, but this may be acceptable when you consider the lower startup costs.
Speak to the Local Authorities
If you want to start a water purification business, you’ll need to sort out a lot of paperwork. Like anything of this nature, the kind of paperwork you need will depend on where you live.
It’s important to remember that rules will vary from state to state.
Thus, if someone gives you some advice on how to go about things, be wary. They might not have any experience with doing business in your state, and thus their advice could get you into trouble.
Should You Do Business Outside the US?
There’s a massive demand for water purification services around the globe.
So, if you’re facing a lot of competition in the US, you may want to do business in another country.
Now, you might find it challenging to do business in some of these countries. This is because not all countries support entrepreneurialism like the US.
This difficulty might come in the shape of having to fill out a lot of paperwork. But it might also come in the form of long wait times just to acquire a particular license.
However, you’ll find all these difficulties are easy to put up when you consider that competitions levels can be low in these other countries. This is motivating as the low competition levels, will make it easier for you to maintain decent margins.
Thus, if you can go through this initial rough patch, you’ll be able to capture a huge segment of the market and make a tidy profit in the process.
How to Go About Hiring Staff
A water purification business isn’t the kind of business you can run on your own, using only a laptop and a phone. You’ll need the help of talented people, and you should consider employee salaries when calculating your startup costs.
Nearly all businesses of this nature will need people that can operate the machines that purify the water.
You’ll also want to hire people that can test the water, to ensure it’s of an acceptable standard. There will also be a need for administrative staff that can handle the day to day aspects of the business.
It would be best if you also thought about hiring a full-time mechanic that can work on your machines in case they break down. After all, if your machines aren’t working, your entire business will come to a standstill because you won’t have any purified water to sell.
In some cases, you may also need to hire some consultants to help you navigate certain tricky situations.
For instance, if you’re struggling to set up shop in a foreign market, a local business consultant may be able to help you. They may have an in-depth understanding of how the local bureaucratic system works, and thus they might know what you can do to speed up the process.
Innovating Your Business
Over time, you may want to innovate your business so you can cater to different segments of the market. In doing so, you can increase the profitability of your company, if it ever feels like it has reached a plateau.
One option you might want to consider is selling water purification services to consumers. You may do this by taking your existing water purification system, and condensing it so that it can work within a faucet.
If you’d like some inspiration on how you can create a product like this, visit this website for more information.
Ready to Start a Water Purifying Company?
The tips in this post should help you benefit from the growth of the water purification industry.
This industry is going to attract a lot of attention, and the increased competition can make things difficult for you. Thus, you may want to start your water purifying company in an area of low competition so you can maintain decent profit margins.
This might mean working in another state, or even in another country. Though this is going to make things tougher, the hard work will be worth it when you realize just how profitable this approach can be.
Will you need to get a loan to help you get your business off the ground? If so, read this post for some tips on how you can go about securing a loan.