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By: Author Tony Martins Ajaero
Home » Business ideas » Food Processing Industry » Water Purification & Refill Station
Do you want to start a water supply company and need to write a plan? If YES, here is a sample water supply business plan template & feasibility report .
Water is one of the commodities in our world that doesn’t have any substitute. If you want to take a bath; you use water. If you want to quench your thirst; you need water. If you want to fix a meal; you need water. The need for water could go on and on.
This points to the fact that clean water is as important as the air we breathe and it will continue to be in demand globally. The essence of going into any business is to solve a problem . Thus going into the water supply business would surely help you solve the challenges of people who don’t have access to clean water.
If you are certain that starting a water supply business is what you truly want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan ; a detailed blueprint of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing.
Here is a sample water supply business plan template that will help you to successfully write yours without stressing yourself.
1. industry overview.
Water is an essential commodity in all ramifications of life and as such the Public Health Department ensures that all water supply businesses meet certain health and safety standards. It’s important to note that if the water in a community is contaminated; it can result to epidemic in that community.
You will be required to obtain a license before you are permitted to drill a bore hole for your water supply business. This measure is guard against people drilling boreholes in places that are prone to earthquakes and tremors or places that have sanitary issues.
Your choice of location would be supervised and screened before you can be issued the permission to go ahead. Establishments in the water supply business sell water as a public utility to households, businesses and public entities throughout the united states.
Water supply businesses have performed well over the decade. Population growth, as well as occurrence of drought and other hostile weather conditions, have indeed increased demand for water supplied by industry operators .
Going forward, per capita water consumption is projected to decline, as increasing concerns regarding water conservation drive policy aimed at reducing consumption. Nonetheless, while per capita consumption rates are expected to depreciate, cumulative water consumption is projected to expand as the population and economy grow.
The Water Supply and Irrigation Systems industry is a thriving sector of the economy of the United States of America and they generate over $79 billion annually from more than 62,187 registered and licensed water supply and irrigation companies in the country.
The industry is responsible for the employment of over 244,122 people. Experts project the Water Supply and Irrigation Systems industry to grow at a 0.8 percent annual rate between 2013 and 2018. American Water Works Company Inc. has the lion share of the available market in the United States.
A recent report published by IBISWorld shows that the Water Supply and Irrigation Systems industry has performed well over the past five years.
Despite more efficient use of water, population growth, drought and other adverse weather conditions have increased demand for water supplied by industry operators. In addition, economic growth has expanded water demand from both downstream commercial and industrial customers.
Increased business activity has increased the amount of water demanded from retailers, restaurants and other commercial customers. Growth in manufacturing and other industrial activities, which often require copious amounts of water, have also increased demand for water.
The report further shows that over the past five years, the Water Supply & Irrigation Systems in the US industry has grown by 0.8 percent to reach revenue of $79bn in 2018. In the same timeframe, the number of businesses has grown by 1.5 percent and the number of employees has grown by 1.6 percent.
In summary, water supply business is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale servicing a community or you can choose to start on a large scale with several outlets in key cities in the United States of America.
Mark Warren® Water Supply, Inc. is a licensed water supply company that will be located in a residential area, 5 miles away from First Avenue – Cherry Creek, Denver, USA.
We have been able to secure a facility in a strategic location, with an option of long – term renewal on an agreed terms and conditions that are favorable to us. The facility has government approval for the kind of business we want to run and it is easily accessible.
We are in the water supply business to sale and supply treated water to residential apartment, offices, construction sites and industrial plants. We are also in business to make profits and at the same time to give our customers value for their money.
We are aware that there are several water supply, water purification businesses and even water refill stations scattered all around Cherry Creek – Denver which is why we spent time and resources to conduct our feasibility studies and market survey.
We ensured that our facility is easy to locate and we have mapped out plans to develop a wide supply network for offices, construction sites and manufacturing plants all around Cherry Creek – Denver and neighboring cities.
Much more than selling and supplying purified and treated water, our customer care is going to be second to none. We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied with our services.
We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they are. We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them.
Mark Warren® Water Supply, Inc. is owned and managed by Mark Warren. Mark Warren who is the Manager of the Company has a Degree in Water Resources from Denver State University. He has over 14 years’ experience working in related industry as a senior manager prior to starting Mark Warren® Water Supply, Inc. He will be working with a team of experienced employees to build the business .
We are in the water supply business to sale and supply treated water to households, offices, construction sites and industrial plants via our hygienic water supply tankers and we are going to do all that is permitted by the law in the United States of America to achieve our business goals and objectives.
Our Business Structure
Mark Warren® Water Supply, Inc. is established with the aim of competing favorably with other leading water supply brands in the industry and in future to also open our distribution channels across key cities in the United States of America.
This is why we will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
We will make sure that we only employ people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. For now, we will contract the maintenance of our water tankers and pumping machines to a service provider, we don’t intend to maintain a very large overhead from the onset.
But as soon as the business grows and stabilizes, we will assemble our own in-house maintenance team. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
Water supply business Manager
Water Tanker Drivers
Chief Executive Officer – CEO (Owner):
Sales and Marketing Manager
Accountant/Cashier
Pump Operators:
As a business, we know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Because of our quest for excellence when it comes to running a standard water supply business, Mark Warren® Water Supply, Inc. employed the services of an expert HR and Business Analyst with bias in startup business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Mark Warren® Water Supply, Inc.;
Part of what is going to count as positives for Mark Warren® Water Supply, Inc. is the vast experience of our management team , we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon with the shortest time possible.
So also, the location of our water supply business, our large distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.
A major weakness that may count against us is the fact that we are a new water supply business in Cherry Creek – Denver and we don’t have the financial capacity to compete with American Water Works Company Inc. when it comes to economies of scale and controlling national distribution network.
The opportunities for water supply businesses are enormous due to the fact that water is an essential commodity that we use on a daily basis.
As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our water supply business in the right location to be able to take advantage of the existing market and also to create our own new market. We know that it is going to require hard work, and we are determined to achieve it.
One of the major threats that we are likely going to face is drought. Other threats that may likely confront us are unfavorable government legislature and the arrival of a new water supply business and water refill station in same location where ours is located.
The need for clean and drinkable water will continue to exist as long as human exist. Water is one of the commodities in our world that doesn’t have any substitute. If you want to take a bath; you use water. If you want to quench your thirst; you need water.
If you want to fix a meal; you need water. This points to the fact that clean and drinkable water is as important as the air we breathe in and it will continue to be in demand globally.
A large percentage of water supplied for irrigation is not sourced from public water supply systems. However, irrigation activity only accounts for less than 5.0 percent of industry revenue. As the price of agricultural products rises, farmers tend to demand more water for irrigation, which benefits industry operators.
The agricultural price index is anticipated to fall in 2018, presenting the industry with a potential threat. As a matter of fact, households represent the largest source of revenue for the Water Supply and Irrigation Systems industry. As the number of households rises, so does demand for water from residential customers, benefiting industry operators.
The number of households is expected to expand in 2018, presenting an opportunity for the industry. Lastly, another trend in water supply business is the adoption of eco – friendly approach towards the treatment and supply of water. As a matter of fact, the industry’s adoption of eco-friendly practices will persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.
When it comes to selling and supplying treated water, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those that resides in our target market locations. We are in business to engage in sale and supply of treated water to the following groups of people;
Our competitive advantage
We are aware of the stiff competition and we are prepared to compete favorably with other water supply business in Cherry Creek – Denver and throughout the United States of America where we intend opening outlets of our water refill stations.
Some of the things that is going to count as competitive advantage for Mark Warren® Water Supply, Inc. is the vast experience of our management team , we have people on board who understand how to grow a business from the scratch to becoming a national phenomenon.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.
We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
Mark Warren® Water Supply, Inc. is established with the aim of maximizing profits in the water supply business in the United States of America and we are going to go all the way to ensure that we do all it takes to sell and supply our treated water to a wide range of customers.
In essence, Mark Warren® Water Supply, Inc. will generate income by selling and supplying treated and purified water.
One thing is certain when it comes to water supply business, if your water is properly treated and your water tanker hygienic and if your water supply business is centrally positioned and easily accessible, you will always attract customers.
We are well positioned to take on the available market in Cherry Creek – Denver and every city where we intend opening outlets and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base.
We have been able to examine the water supply business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Mark Warren® Water Supply, Inc., it is based on the location of our business and other factors as it relates to small and medium scale water supply business startups in the United States;
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be drought and there won’t be any major competitor offering same products as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
Prior to choosing a location for Mark Warren® Water Supply, Inc., we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market in our target market locations.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time and also for our treated water to favorable compete with other leading brands in the industry.
We hired experts who have good understanding of the water supply business to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Cherry Creek – Denver.
In summary, Mark Warren® Water Supply, Inc. will adopt the following sales and marketing approach to sell our treated and purified water;
Regardless of the fact that our water supply business is licensed and centrally located in a location that has good human and vehicular traffic, we will still go ahead to intensify publicity for all our product and brand.
Mark Warren® Water Supply, Inc. has a long – term plan of opening our water supply business – outlets in various locations all around the United States of America which is why we will deliberately build our brand to be well accepted in Cherry Creek – Denver before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Mark Warren® Water Supply, Inc.;
We are aware of the pricing trend in the water refill line of business which is why we have decided to have various sizes of gallons and water tankers.
In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months, our treated water are sold and supply a little bit below the average price in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our water supply business.
The payment policy adopted by Mark Warren® Water Supply, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Mark Warren® Water Supply, Inc. will make available to her clients;
In view of the above, we have chosen banking platforms that will enable our client make payment for the purchase of our treated and purified water without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients.
A water supply business requires reasonable startup capital hence an entrepreneur would have to pool cash together or welcome investors to partner with you. Although the capital needed to set up a water plant might not be much, but the running capital of the business is always the real deal.
You would need capital to purchase water tankers and also to fuel and maintain your water tankers. These are the key areas where we will spend our startup capital in setting up Mark Warren® Water Supply, Inc.;
We would need an estimate of two hundred and fifty thousand Dollars ($250,000) to successfully set up our water supply business in Cherry Creek – Denver.
Generating Funds/Startup Capital for Mark Warren® Water Supply, Inc.
Mark Warren® Water Supply, Inc. is a private business that is owned and financed by Mark Warren. He has decided to restrict the sourcing of the startup capital to 3 major sources.
N.B: We have been able to generate about $50,000 ( Personal savings $30,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business closes shop.
One of our major goals of starting Mark Warren® Water Supply, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail (supply) our purified water a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Mark Warren® Water Supply, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
Here, let’s discuss some profitable water-related business opportunities.
While it may sound great, there’s a need first to identify viable ideas that can be implemented into thriving water businesses. This article aims to help you find the perfect water business idea.
Water is a very precious resource that sustains life in various ways. Apart from drinking, water is needed for irrigation, cooking , bathing, and a long list of other activities.
It is no surprise that many water-related businesses are valued at over $20 billion a year. You can take advantage of the enormous opportunities presented by starting your own water business.
When it comes to setting up a business, aspiring entrepreneurs are most interested in ideas that are recession-proof .
Such businesses thrive even in the face of an economic downturn due to their essential nature. Most water-related companies fall into this category.
Water supports life ; hence it’s essential for everyday living. Coming up with a sound water-related business idea sets you up for success.
Here, it’s evident that coming up with a good idea sets the stage for future success. The opinions presented below make it a lot easier to achieve your objective.
As stated earlier, many water business ideas have proven to be highly profitable when adequately implemented.
Examples include water aquarium businesses, retail water stores, small bottling plants, plumbing services, solar water heaters, and a water resort.
More water business ideas include irrigation consultant, water softener production, flavored bottled water, and plastic water tank manufacturing.
More ideas include water purification service, borehole drilling, mineral water wholesale, mineral water production, and water delivery service.
You can also go for any ice-block production, starting a public swimming pool, producing alkaline water, water heater installation, and commercial fishing.
Rainwater harvesting and the provision of lifeguard services are more ideas to try. Let’s discuss some of these points in more detail.
There’s a big market for mini aquariums as many homeowners include these as part of their interior home décor accessories.
You can leverage this opportunity by manufacturing these aquariums. The more unique your designs are, the more likely they’ll sell fast.
Water retail stores help bridge the supply gap of safe drinking water.
Here, a variety of water products are sold. Examples include mineral water, alkaline water, and the like. There’s a massive market for these. You only need to decide on what you want to begin with.
A water bottling plant is another water business idea that can be highly rewarding when started properly.
Starting this type of business will require getting the necessary permits and licenses. A small bottling plant will thrive best in some locations more than others.
It’s common to find water fixtures in a state of disrepair or having issues. As a plumber , you can offer installation and maintenance services to homes and businesses.
Your skills will always be in demand as people seek to fix their lousy plumbing systems or replace existing systems.
There’s a steady shift in focus from non-renewable energy sources to renewable ones.
Solar technology is one of the most popular renewable energy sources. You can start a solar water heater installation business or one that offers repair of faulty water heaters.
The leisure industry is vast, with water resorts being a key component. You can start a water resort business if you’ve got the resources.
For this idea to be successful, you’ll need to research the concept while finding industry trends and raising the required startup costs.
Agriculture is a critical sector of every economy as it guarantees food security.
You might want to try irrigation consulting if you live within or close to a rural community. As an irritation expert, you advise farmers about modern irrigation methods.
Hard water is a problem lots of households and communities deal with.
These cause problems to appliances, among other things. Starting a water softener production business offers a ready solution to such a problem.
This type of business is most profitable in areas with challenging water problems.
Due to the many health benefits of water, more innovative products have been developed to promote water consumption. You can take advantage of this to start your flavored bottled water business.
Persons already in the industry have a greater chance of succeeding.
Proper water storage is a necessity for a lot of households. Here, a variety of holding tank designs are available.
You can take advantage of this need by starting a plastic water tank manufacturing business to meet the demand. As always, you’ll need to do in-depth research before launch.
Water purification services are essential to everyday living as they remove all forms of impurities, creating clean and safe water for use.
An increasing number of people are beginning to avoid public water purification systems as they’re deemed inefficient.
Borehole drilling services are another water business idea to try. Your services will prove crucial in providing off-grid water supply to communities.
Water conservation is a big business, and rainwater harvesting is a great idea.
You can help people install rainwater harvesting systems in their homes to help boost or recharge underground water levels.
Of course, you’ll need to be knowledgeable and experienced in this field to succeed.
If you’re a good swimmer, your expertise may prove crucial as a lifeguard.
Here, places like public swimming pools, beaches, and water resorts should be a target. For your skill, you get a decent reward. You can also decide to start a lifeguard service for large operations.
These water business ideas discussed are a few of the many others you can take advantage of. As with any business, proper planning and execution of such plans are necessary for success.
Use this manufacturing business plan as your template to start and grow your manufacturing company. This business plan for a manufacturing company includes market analysis, strategy, and more.
Download this Manufacturing Business Plan free for easy editing in Microsoft Word, Google Docs or Apple Pages to make a PDF:
Also Read: MoreBusiness.com’s Free Starting a Business Guide
Table of Contents
1.0 executive summary, 1.1 company.
Titus Mold Manufacturing, Inc. designs prototypes and molds, which are used by production manufacturers to fabricate consumer products. We are a start-up company that developed and patented revolutionary design software called Virtual Design Center. Our initial plan is to create a precision manufacturing facility to produce prototypes and molds for clients. Our goal is to provide our customers with fast turnaround, exceptional quality, unparalleled customer service, and competitive pricing.
We design and manufacture prototypes and molds. By utilizing Virtual Design Center, we will work in real-time with our customers to meet their design needs, which will reduce errors and detect design flaws early in the process. In turn, this will save the customer time and money. We plan to position ourselves as a forward-thinking company that continually invests in new ideas and technologies – unlike our competitors, which are similar mold manufacturing facilities. Because of our unique software, sophisticated technology and efficient processes, we will be in a position to potentially compete on price and quality. As this manufacturing business plan will outline, our unique Virtual Design Center gives us a definitive advantage.
The U.S. manufacturing industry makes up a substantial portion of the GDP, and the mold-manufacturing sector generates sales of more than $5 billion. Manufacturing drives the U.S. economy more than any other industry. Within that enormous industry, we have identified two strong markets with very high growth potential – automotive parts and medical devices manufacturing. As new car companies respond to shifting consumer demands for more fuel-efficient cars, and as the medical community develops new technologies, the need for new parts, designs and molds grows.
To achieve our business goals, we will create a high-tech, precision manufacturing facility and will implement highly efficient operations processes. We plan to promote Titus Mold Manufacturing and our proprietary Virtual Design Software with an aggressive, targeted marketing campaign. This will include a media campaign, print and online advertising and a targeted direct-mail campaign. In addition, we will focus heavily on establishing our presence within the industry at relevant trade shows.
Our leadership team currently consists of Chief Executive Officer John Baker, President Michael Smith, and Vice President Susan Jones. Additional key leaders will include directors of finance, marketing and sales, human resources, information technology and operations. While these positions remain unfilled at this time, we do have several extremely qualified candidates interested in joining with us in this new venture.
Our Company will earn revenue from the sale of design services and manufactured molds. The attached Income Statement demonstrates that our gross profit margin will exceed 72%, and we will achieve break-even with sales of $XXX,XXX. We expect to reach profitability by the middle of Year 2.
Titus Mold Manufacturing, Inc. requires $4,450,000 to launch. At present, we have raised $150,000 in venture capital funds. In addition, co-owners John Baker, Michael Smith and Susan Jones have each invested $100,000 into the company. We are currently seeking funds from outside investors and business loans.
The start-up funds will be used to cover the facility, build-out costs, equipment, software and initial operating costs including payroll, taxes, and utilities.
2.1 company & industry.
Titus Mold Manufacturing, Inc. is located in Molder, Missouri. Our company designs and manufactures prototypes and molds for use in casting metals or forming other materials, such as plastics, glass or rubber. Our business operates within the manufacturing industry and is classified under NAICS code 333511 – industrial mold manufacturing.
Titus Mold Manufacturing is an S-Corporation that was formally organized in Missouri. The company’s principal owners are John Baker, Michael Smith and Susan Jones, who hold equal shares of ownership in the company.
Our company is a new business that will create prototypes and quality molds, utilizing the latest design software, e-commerce technology, high tech machinery and innovative operations processes. As the company’s founders and owners, we have a combined 40 years of experience in software development and the manufacturing industry. Our experience includes product research and development, engineering and production management. After recognizing the need for and value of creating a more efficient customer experience to secure and retain business, we decided to create Titus Mold Manufacturing, Inc.
Our company is preparing to lease a manufacturing facility in Molder, Missouri. We are presently operating out of temporary administrative offices at the Barton Business Incubation Center.
We are working with a local realtor and BBIC to identify potential industrial space available for lease. We require a 10-12,000 sq. ft. facility to accommodate product development and engineering, a mold shop, a tool shop, quality assurance area, inventory storage and administrative offices. As the business grows, we intend to add injection-molding capabilities.
Titus Mold Manufacturing holds a patent for its revolutionary Virtual Design Center (VDC). The VDC combines the best of virtual and in-person presentations and meetings, allowing customers to work in real-time with our design engineers. This allows us to serve clients nationwide.
3.1 description.
Titus Mold Manufacturing, Inc. will make prototypes and molds for the manufacturing of consumer products. A mold, which is usually made from aluminum or steel, is a hollow form that gives a particular shape to a product while it is in a liquid state. The molds are used for products made from plastic, glass, metal or other raw materials.
There are three main phases to manufacturing a prototype or mold. First, engineers and product developers create a design. Titus Mold Manufacturing is able to complete a design from start to finish for a customer. If need be, Titus will work with the customer through the design process via our one of a kind Virtual Design Center. Secondly, we make test molds. We then inspect and test the molds for quality assurance. Finally, we manufacture prototypes and molds based on specific design specifications, using precision machinery to form the desired prototype or mold.
Virtual Design Center will be the key to distinguishing and drawing attention to our company. Once we have a particular industry or customer’s attention, we will sell them on our fast turnaround, exceptional quality, unparalleled customer service and competitive pricing.
Obviously, speed, quality, service and price are qualities most of our competitors will list in their mission statement. However, Titus Mold Manufacturing will – from the beginning – invest in top quality, highly sophisticated machinery as well as implement innovative operations policies. These steps will ensure our ability to deliver beyond normal industry standard and surpass our customers’ expectations saving them time and money.
Our competitors are companies that provide similar types of design and mold-making services. There are far too many competitors to list specifically in this manufacturing business plan. To their advantage, they have an established customer base. Further, many mold-making companies also have injection-molding machinery, which enables them to manufacture actual products.
However, the vast majority of our competitors are not taking full advantage of current technology, nor are they implementing modern operational systems. Their waste is ultimately passed along to the customer via longer turnaround times and higher overhead costs .
By relying on our technology and an activity-based costing system, rather than a time-based system, we will be able to maintain competitive prices and sustain high profitability. Our technology and systematic efficiencies will allow us to have advantages in cost, speed and design capability. Ultimately, these advantages will quickly come to define Titus Mold Manufacturing as an industry leader.
Our Virtual Design Center technology gives us a significant advantage over our competitors, and our patent prevents others from being able to replicate the services we offer.
As our company grows, we plan to expand our facility and create an injection-mold manufacturing plant. At that point, we will be able to control all operations in-house from initial design to mold creation and even mass production of the finished products. In addition, we will stay atop technology trends and upgrade equipment and processes as needed and can be afforded. We will also continue to research and pursue shares of existing markets such as packing, defense, electronics and telecommunications and update portions of this manufacturing business plan accordingly.
4.1 market size.
The US manufacturing sector includes more than 300,000 companies with combined annual sales of about $4 trillion. Furthermore there are approximately 2,500 mold manufacturers with combined annual sales of more than $5 billion. To capture a portion of those sales, Titus Mold Manufacturing will utilize a targeted industry approach to pursue specific, definable, market segments.
After extensive research, we decided to initially pursue market segments in the automotive and medical devices industries. These are two very distinct markets with very different needs. While the automotive industry’s purchasing decisions are driven primarily by price, the medical device industry focuses on a fast turnaround time and quality to make purchasing decisions.
The U.S. automobile manufacturing industry includes about 160 companies with combined annual revenue of about $250 billion. While the majority of those sales are swallowed up by a handful of major car manufacturers, there are thousands upon thousands of parts needing to be manufactured for each vehicle. By specializing in manufacturing molds for certain parts, we will establish our niche in the market. Our research indicates this is a perfect time to assimilate into this industry as carmakers make dramatic shifts in design and efficiency to address rising fuel costs.
The medical devices industry is by far one of the most forward-thinking, always-evolving industries. Researchers and product developers are continually striving to improve products and procedures. With this constant change and product evolution comes the constant need for new product molds. Couple the advances in medical technology with an increasingly aging population, and it’s clear the healthcare industry as a whole is a solid market and mold manufacturers will reap the benefits.
The SWOT analysis for this manufacturing business plan is as follows:
5.1 philosophy.
Titus Mold Manufacturing’s business philosophy is to make the needs of our customers our main priority. It is our mission to provide our customers with fast turnaround, exceptional quality, unparalleled customer satisfaction and competitive pricing. With the introduction of our patented Virtual Design Center program and the unveiling of our modern design and manufacturing facility, we will position Titus Mold Manufacturing as a superbly innovative company and a future industry leader.
To achieve this position, we will implement our company’s plan to create a state-of-the-art mold-manufacturing facility and invest in the most accurate precision machinery available. We will implement the most comprehensive design software and set the highest standards of operational systems and quality control.
Our plan is to position Titus Mold Manufacturing as a technology-driven innovative company within the mold-manufacturing sector of the manufacturing industry. To do this, we are putting forth a great amount of time and resources into developing a premiere Web site. We are working with a design firm and have secured a domain name – TitusMolds.com. We have already initiated the process of integrating our Virtual Design Center into the site.
In addition to describing our manufacturing processes and design capabilities, we will feature numerous success stories and images of prototypes and molds we have produced. Our site will also include a simple online form to complete for custom quotes as well as a generic form to submit questions and comments.
Our vision is to create a Web site that will become an integral part of our marketing, sales and daily operations. We will use Wix to set up our site. This tool has all of the features we need, including the ability to create and edit the site very quickly. It also has ecommerce and other capabilities. Using Wix will also enable us to save money since we can create the site ourselves and will not have to hire a web designer.
In addition to conveying to our potential customers the fast turnaround, exceptional quality, unparalleled customer service and competitive pricing offered by Titus Mold Manufacturing, we will also position our company as future-minded and a leader in the integration of innovative technology into the mold manufacturing process.
Our marketing plan will include an initial publicity campaign that introduces our company and patented Virtual Design Center. Further, we will launch a comprehensive advertising campaign in automotive manufacturing and medical devise trade publications and related Web sites. The publicity campaign will be closely followed by a direct-mail campaign to targeted customers.
The other main component of our marketing plan will be to attend trade shows which will require booth construction and maintenance, marketing materials such as brochures, and promotional items such as pens with our logo.
To increase local awareness of our company and to foster a positive public perception, we will participate in and sponsor local charity events such as Walk for the Cure and March of Dimes and youth sports teams. We will also reach out to local high schools and colleges to offer internships and promote careers in manufacturing.
Titus Mold Manufacturing will build a sales team focused on securing new business in the short and long term. The sales team will be motivated by commissions and performance-based bonuses.
Under the direction of executive management, we will employ an outside sales staff as well as an inside sales staff, which will be cross-trained to handle general customer service calls. The outside sales staff will focus primarily on trade show attendance, comprehensive follow up, relationship building, closing deals, and securing referrals.
We plan to develop strategic alliances with local and regional injection-molding manufacturing facilities that do not have mold-making capabilities within their facilities. One such alliance has been developed with Hilden Manufacturing Company located within our region. More are developing.
Our facility’s space will be divided in proportion to our needs and will include product development and engineering labs, mold shop, tool shop, quality control and testing area, inventory storage and administrative offices. Each area will be staffed with trained employees and wherever possible factory-floor technicians will be cross-trained. Our administrative offices will include space for executive, marketing and sales, accounting, information technology, security, maintenance, and human resource departments. To become a fully operational mold-manufacturing facility, we will require the following machinery and software.
By utilizing the latest precision machinery and software and superior operational and quality control processes such as LEAN Manufacturing, Rapid Prototyping and Manufacturing, and Six Sigma , Titus Mold Manufacturing will control costs while ensuring quality. Additionally, once we are operational, our company will become ISO 9001-2000 certified. Titus will also follow FDA requirements and comply with Medical Directive standards to further ensure quality control.
Operationally, our strengths lie in our knowledge and expertise within the manufacturing industry. We know what fixed assets we require and what regulations we must adhere to. However, while we cannot know for certain the quality of our managerial team at this point, we expect to hire and implement a top notch team. As previously mentioned, we have several promising prospects and will, of course, strive to recruit top talent.
The following is a list of business goals and milestones we wish to accomplish within the next three years.
Our first major milestones will be securing funds and setting up our business. This is our primary focus right now. In three years, we hope to have established our company in the community and within our industry.
Should management or our investors seek a business exit, there are several options we would be willing to pursue. Our company could most likely be sold to a manufacturing company that does not already have mold manufacturing capabilities. A management buyout could also be pursued once our business credit is firmly established.
6.1 organizational structure.
Titus Mold Manufacturing understands the importance of a loyal and enthusiastic team to reduce turnover and increase productivity. Our company’s management philosophy will encourage responsibility and mutual respect. While we will present a strong decisive management team, we will also foster an atmosphere of genuine employee appreciation and open communication.
Our company will be managed and run by our executive staff including Chief Executive Officer John Baker, President Michael Smith, and Vice President Susan Jones, as well as our Board of Directors. Our management staff of directors and supervisors will oversee daily operations. However, as a small manufacturing facility starting out, the CEO, President and VP will be responsible for the majority of purchasing, hiring, training, quality control, and additional day-to-day duties.
Additional key leaders will include directors of finance, marketing and sales, human resources, information technology and operations. While these positions remain unfilled at this time, we do have several extremely qualified candidates interested in joining with us in this new venture.
As we start our mold manufacturing business, we will implement a plan to hire management and production staff first and fill in with mid-level management and administrative staff as our budget and needs change.
Our Board of Directors is not yet fully formed. CEO John Baker will serve as Chairman. The board will consist of company owners (shareholders), officers and directors.
Duties of the Board of Directors may include:
We will actively seek individuals to sit on our Board of Directors who will have the ability to add to and advise our organization such as lawyers, accountants, and professionals in the automotive or medical fields.
7.1 requirements.
Titus Mold Manufacturing, Inc. requires $4,450,000 to launch and operate. We are currently seeking funding from outside investors and business loans. We are also looking into additional options including supplier financing, deferred rent, subleasing space, partnerships, vending and client advance payment.
At this time, we have raised $450,000 in working capital and are seeking the additional funds to start our business. We have raised $150,000 in venture capital funds. In addition, co-owners John Baker, Michael Smith and Susan Jones have each invested $100,000 into the company.
The start-up funds will be used to cover operating costs including payroll, taxes, and utilities. Start-up funds will also be used to purchase capital expenditures such as leasehold improvements, software and machinery, which will produce future benefits for the company. Approximately forty percent will be spent on assets, while the other sixty percent will be spent on operations until we realize profitability.
The accompanying income statement demonstrates our company’s profitability. Our income shows a gross profit margin of seventy-two percent. Our monthly operating expenses average $116,325. Projected net income will average $54,075 per month in our third year.
After completing a comprehensive break-even analysis, we will achieve our break-even point by the middle of year two.
The nature of our business requires that our company collect payment after the product is complete. So we have included the accompanying cash flow statement, which projects our monthly flow of cash. While we expect to reach break-even by our eighteenth month, it will take nearly two years to become cash flow positive.
Our balance sheet will depend greatly on our sources of capital. We expect to raise approximately $1.5 million through loans and $2.95 million through equity capital.
Our assets will be comprised of cash, leasehold improvements, equipment, software and other tangible assets.
Our projections are based on the assumption that the manufacturing industry, particularly the medical and automotive industries, will continue to follow present trends. Industry regulation and government legislation is always poised to interfere with business projections, but there are no indications at this time to expect any negative influence to our projections. Additionally, we are not relying on new regulations or the passage of new legislation to enable our company to reach our projected numbers.
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How to write a water delivery business plan in 7 steps:, 1. describe the purpose of your water delivery business..
It also helps to include a vision statement so that readers can understand what type of company you want to build.
When you think about the products and services that you offer, it's helpful to ask yourself the following questions:
If you don't have a marketing plan for your water delivery business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals.
Customer base , product or service description, competitive analysis, marketing channels, form an llc in your state, 4. write your operational plan., what equipment, supplies, or permits are needed to run a water delivery business.
To run a water delivery business, you'll need a range of equipment and supplies, as well as a few permits. Here's a quick rundown of what you'll need:
The second part of your water delivery business plan is to develop a management and organization section.
Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a water delivery business varies based on many different variables, but below are a few different types of startup costs for a water delivery business.
You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your water delivery business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.
Here are some steps you can follow to devise a financial plan for your water delivery business plan:
Why do you need a business plan for a water delivery business, how to write a business plan for your water delivery business).
To build a business plan for your water delivery business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written water delivery business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.
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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.
Bottled water businesses deal in the bottling and distributing of drinking water to consumers. Whether purified, distilled, or natural spring water, your bottled water business will supply your customers with ample hydration. Taking the steps to start your own bottled water business can be a satisfying experience that allows you to make money while also helping your customers achieve a healthy lifestyle.
Learn how to start your own Bottled Water Business and whether it is the right fit for you.
Ready to form your LLC? Check out the Top LLC Formation Services .
We have put together this simple guide to starting your bottled water business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas .
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
Luckily we have done a lot of this research for you.
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Bottled Water Business Name Generator
If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.
When registering a business name , we recommend researching your business name by checking:
It's very important to secure your domain name before someone else does.
Business name generator, what are the costs involved in opening a bottled water business.
Costs for starting a water treatment plant include storage tanks, filling machines, water treatment machines, filters, conveyors, sealers, water sterilizers, water dispensers, bottle loaders, trucks, and employees to work in the plant.
Startup costs can range from $500,000 to $750,000 for a “bare bones” plant. However, some plants may require more capital, up to $1.5 million, or more, depending on the size of your operation.
You will also need a license from the U.S. Food And Drug Administration (FDA). You will also need a permit from your state health department.
Finally, you’ll need a dedicated bottle supplier, a water source, and employees to run your plant. This is a very labor-intensive job.
Ongoing expenses are extensive. Maintenance on the plant can cost tens of thousands of dollars every year for a small plant, and as much (or more) every month for a medium to large-scale bottled water plant.
Utility costs can also be high, due to the process of purifying and bottling water.
Labor costs are also high, as most employees expect a full-time salary, plus benefits. Liability insurance, health insurance, unemployment insurance, 401(k) matching and administrative services, and worker’s compensation insurance can run tens of thousands of dollars per month.
Customers are usually commercial enterprises like local grocery stores. However, some small companies do sell directly to consumers or to businesses.
A bottled water business makes money by charging customers for processing and bottling potable water.
Bottled water has a high markup. If you are selling to grocery stores, you may be able to charge $1 to $2 per bottle, or a flat rate per truckload or pallet. Most companies make arrangements for regular shipments to establish themselves as “anchor customers.” You may or may not sell your products for a lower price to get these deals, but will generally increase revenue as a result.
Profits can range between 100% and 500%, or more.
Your business can become even more profitable by entering niche markets such as flavored bottled water, sparkling water, spring water, and mineral water. Some companies have specialty lines of water, which include flavored mineral water, flavored sparkling water, and sports drinks.
Finally, consider offering designer waters, seltzer waters and club soda, and flavored soda.
Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!
The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your bottled water business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Have a Professional Service Form your LLC for You
Two such reliable services:
You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .
Besides being a requirement when applying for business loans, opening a business bank account:
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Getting a business credit card helps you:
Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
The Food and Drug Administration (FDA) regulates bottled water. FDA regulations for bottled water include Good Manufacturing Practices (GMPs), standards of identity and labeling requirements.
A detailed description of regulation, licensing and labeling requirements can be found here .
Certain state permits and licenses may be needed to operate a bottled water business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
FInd out what types of insurance your Bottled Water Business needs and how much it will cost you by reading our guide Business Insurance for Bottled Water Business.
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.
Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
Marketing and distribution is key in this business. Your target market should be grocers, vending machine companies and operators, stadiums, event locations, and other large-scale commercial enterprises and operations that need high volume bottled water supplies.
Make sure you deliver on your promises and be competitive on your pricing. This is a highly commoditized industry. Often, it’s the business that meets deadlines and has the lowest (or at least competitive) pricing that wins.
After defining your brand and creating your logo the next step is to create a website for your business .
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .
Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
This business is perfect for individuals who are passionate about their health or are health conscious and want to run a business that promotes a healthy lifestyle.
Take our Entrepreneurship Quiz to find out!
Entrepreneurship Quiz
The day-to-day operations of a plant depend largely on the type of plant you run.
There are many different ways to process bottled water. Spring water is one of the most common. It comes from an underground formation and flows naturally to the earth's surface. Purified drinking water is one that is processed to remove chlorine and other contaminants. Unless your plant processes public sources of water, like municipal drinking water, you are not usually required to disclose where you sourced it.
Natural sparkling water is naturally carbonated water from a spring or well. Mineral water comes from a spring and contains dissolved minerals like magnesium, calcium, sodium, potassium, and silica and bicarbonates. Finally, seltzer water is an FDA-regulated soft drink product.
The day-to-day operations include bringing in water from an outside source and bottling it. During this process, there are many intermediary steps, including sanitising containers, preparing bottles preparing and filtering the water, and setting up packaging protocols to ensure that the water is ready to be shipped.
You will need business experience, contacts in the industry, and a working understanding of how water is purified. No degrees are necessary but you may need special permitting and licensing from the government. Most owners and managers of a bottled water business have extensive management experience, especially in a related industry.
Growth potential is virtually unlimited. Companies like Nestle own massive water processing and treatment plants where they produce bottled water for countless grocery stores and make billions in profits every year.
Most bottled water plants start life as small or medium-sized plants.
You can grow your business at a rapid pace by taking on outside financing from a bank or venture capital firm. Or, you can grow more organically from sales profits. Growing through leverage (bank loans) has its advantages. For example, your profits are likely to climb quickly on momentum. This can shortcut the time it takes you to grow and meet your revenue growth targets. However, it can also saddle you with creditors who want to see target revenue and profit targets that are too optimistic.
Growing organically is prevents this from happening, but it also slows growth and might prevent you from growing beyond a certain size.
For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.
Find a business mentor.
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
Spend time finding a sustainable water source for your operation. Your water source will greatly influence your profits. If you find a source that costs $3 to $5 per 1,000 liters, this is going to result in a higher profit than if you’re paying the same amount for 100 liters of water.
You must begin building a team immediately. A bottled water company cannot operate as a solo or one-person company. You will need at least 20 to 50 employees to start, and you should scale up within the first 3 years to at least 50 to 100 employees, or more.
Industry opportunities.
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Start your own water purification business plan
Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.
H20 Industries, Inc. (H20 Industries) provides the service of ion exchange portable tanks. This is the process of purifying water for industrial purposes. H20 Industries will take advantage of an unsatisfied market need for segregated resin regeneration on a portable basis. The company will primarily focus its marketing strategies on offering segregated regeneration services to the untapped market of customers who require high-quality regeneration for their deionized (DI) water treatment facilities. The facility that H20 Industries will utilize is located in Newark, California and is already in limited production. Full production will begin at the end of September, with sales growing gradually to near capacity by the end of the first year, with very healthy gross sales in the first year, and increasing in the second and third years.
The primary objectives are:
H20 Industries’s mission is to segment the market for pure water by providing niche products to specialized industry sectors who are otherwise not properly serviced by large pure water suppliers. Segregating a customer’s H20 Industries resin and regenerating it on a portable tank basis to hospital dialysis units is an excellent example of such a niche product that stresses quality and service to users who are prepared to pay a premium price.
H20 Industries’s primary keys to success are:
H20 Industries took over a customer base and a small quantity of assets from a predecessor company. By moving to a new location with more space, and by designing an efficient productive capability, H20 Industries will be ready to aggressively penetrate the growing market for portable DI exchange by October 1999.
H20 Industries was established in October 1998 through the purchase of the assets of Commercial Waters Systems, Inc. (CWSI). CWSI was an under-capitalized, cash flow-starved DI exchange tank service provider. Three hundred sixty of the shares of H20 Industries are owned by David R. Smith, vice president sales and applications of PROSYS, a large manufacturer and system designer of water treatment equipment. Five hundred sixty of the shares are owned by John Jones who is regional sales manager for DUFF. The remaining 200 shares are currently held by the daughter of the seller, but are expected to soon be transferred to the new owners.
Additional investors have expressed a willingness to invest. This would help bring in needed administrative expertise, while also increasing the equity base.
Assets of a former operating company were bought out and customers of the former company continue to be serviced by the purchasing company, H20 Industries, partly from continuing operations and partly from farming regeneration work out. However, this plan is being written as a start-up primarily because there are no reliable financial figures for prior years for comparison purposes, and partly because of the move to new facilities and the sizable investment in new plant and equipment involved. Due to certain misrepresentations by the seller, the agreed sales price is under protest. It is expected that the matter will be satisfactorily resolved by payment of a much reduced amount.
The chart and table below summarize the start-up requirements for H20 Industries.
Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $10,000 |
Stationery etc. | $850 |
Brochures | $6,500 |
Consultants | $5,000 |
Insurance | $0 |
Rent | $0 |
Research and Development | $0 |
Expensed Equipment | $0 |
Other | $0 |
Total Start-up Expenses | $22,350 |
Start-up Assets | |
Cash Required | $124,223 |
Start-up Inventory | $10,000 |
Other Current Assets | $90,000 |
Long-term Assets | $220,000 |
Total Assets | $444,223 |
Total Requirements | $466,573 |
Start-up Funding | |
Start-up Expenses to Fund | $22,350 |
Start-up Assets to Fund | $444,223 |
Total Funding Required | $466,573 |
Assets | |
Non-cash Assets from Start-up | $320,000 |
Cash Requirements from Start-up | $124,223 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $124,223 |
Total Assets | $444,223 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $21,354 |
Long-term Liabilities | $180,000 |
Accounts Payable (Outstanding Bills) | $61,409 |
Other Current Liabilities (interest-free) | $16,810 |
Total Liabilities | $279,573 |
Capital | |
Planned Investment | |
Jim Hunt | $56,000 |
Mike Pacek | $36,000 |
New Investors | $75,000 |
Other | $20,000 |
Additional Investment Requirement | $0 |
Total Planned Investment | $187,000 |
Loss at Start-up (Start-up Expenses) | ($22,350) |
Total Capital | $164,650 |
Total Capital and Liabilities | $444,223 |
Total Funding | $466,573 |
The facilities are located in a rented building on an industrial estate in Newark, California.
A description of the technology involved in the production can be found in section 3.5 (Technology). The following is a description of the production layout.
The company is in the water purification business. H20 Industries is engaged in a specific branch of this business called “Service deionization.” Within this branch, the company plans to emphasize a further service specialization known as “segregated regeneration,” as opposed to “bulk regeneration.” This concept is explained in the following sections.
The service products offered by H20 Industries are segregated as well as bulk regeneration of portable H20 Industries exchange tanks. The service is offered in three tank sizes of 3.6, 2.5, and 1.4 cubic feet (cu ft). In these sizes, the company will offer:
The application of portable deionized water is broad. Practically all industries using water in processing are potential accounts. Size of company is rarely a determining factor. There are applications in electronics and high pressure boilers where flow rates of several hundred gallons per minute are provided by portable exchange systems. The main unique benefits are:
Providing the service to a customer is simple, usually requiring only minimal equipment. H20 Industries is available from a large competitor, US Filter and a few small competitors, such as Fluid Solutions of Lowell, MA. However, none of the competition can provide segregated regeneration (See Competitive Analysis below).
In the Northern California area, outside of a small company in Lowell which has to farm out its regeneration business to a “DI” company in Nevada, Simply Clean in Oregon, and a couple of independent Culligan agents, there is only the very large, fully-integrated US Filter (owner of Culligan) to compete with. This company, by virtue of its size and involvement in all fields of water treatment, is not suited to satisfying small users of DI, nor are they able to respond to niche needs. For example, US Filter cannot handle segregated resin. All resin treated by US Filter is regenerated on a bulk basis, which means that various customers’ depleted resin tanks are combined. This is not a problem for many users of DI, but the dialysis department of a hospital might well object to their resin being co-mingled with resin used in the metal plating industry. H20 Industries plans to specialize in portable segregated resin service. US Filter can try to service customers with a desire for segregated DI by promising to always supply tanks with new resin, however, there are technical problems with this.
US Filter’s prices for cation and anion regeneration are $31.25/cu ft and mixed bed $43.05/cu ft. H20 Industries’s prices for the same bulk regeneration are $32 and $43, respectively. The primary market thrust of H20 Industries’s sales will be the segregated regeneration which US Filter does not offer. This product sells at a premium ($57/cu ft and $63/cu ft, respectively). Some small players in the market offer regenerated resin (not segregated) in a price range of $63 to $80 per cu ft (mixed bed).
Sales literature will be written and printed. A provision for this has been made in the projected sales and marketing expenses.
The service provided by H20 Industries is the regeneration of ion exchange portable tanks. The tanks themselves are supplied to customers on either a monthly rental basis or offered for sale. These tanks, and any other hardware, are readily available from a number of suppliers. By virtue of the owners’ long involvement in the industry, they are fully knowledgeable of existing sources for all hardware, including resin, as well as the supply of the two major chemicals used in the process of regeneration. The only other variable cost of production is the salt used in the brine bath, this is also readily available from a number of suppliers.
Ion exchange is a major means of purifying water for industrial purposes. The degree of purity depends on the source of the water and it’s use. Companies, ranging from car washes to the pharmaceutical and semiconductor industries all need various amounts and degrees of purified water. Ion exchange is a chemical process by which ions, or ionic substances that are considered “undesirable” in water, are reduced or removed from water by use of ion exchangers or resins. Most ground water contains unwanted dissolved substances, such as calcium and magnesium, whose molecular structure contain charged ion particles.
The most common impurities with ions of a positive charge are: sodium, calcium, magnesium, potassium, iron, and manganese. These are called cations. The unwanted dissolved substances having negative ion charges, known as anions, are: bicarbonate, chloride, carbonate, sulfate, nitrate, and bisilicate. When a substance separates into ions, each ion is now able to combine with another ion with opposite charge, even if that ion is from a totally different type of molecule. Substances only separate into ions when immersed in water molecules. For example, a molecule of hydrochloric acid is made up of a hydrogen atom and a chloride atom. Hydrochloric acid (HCL), when immersed in water, will split apart into one positively charged hydrogen cation (H+) and one negatively charged chloride anion (CL-). If sodium hydroxide (NaOH) were added to this solution, the NaOH would split into Na+ and OH-, which would combine with the opposite charges of the hydrochloric acid ions to form sodium chloride, better known as “table salt” (Na+CL-) and leftover hydrogen and hydroxide atoms (H+OH-). The field of deionization, known as DI for short, utilizes this natural phenomenon by designing a cation exchange resin which will substitute hydrogen atoms (H+) for virtually all of the other cations, and designing an anion exchange resin which will substitute hydroxyl ions (OH-) for virtually all of the other anions. By means of this process we end up with only H+ and OH- which is equivalent to H2O (water). By forming this demineralized water, we create water which is no longer a conductor. We can measure the purity using an ohm meter. Ohms measure resistance. The higher the ohm count, the lower the conductivity. H20 Industries is routinely formed to 18 mega ohms per centimeter, which is very close to zero conductivity (18.23 at 25 degrees Centigrade). Without giving lengthy chemical explanations, what happens in the process is as follows:
The regeneration process can take place at the location where the water is being purified, however, most users of H20 Industries do not install the expensive equipment to do this but simply arrange for a service provider, such as H20 Industries, to replace the tanks and perform the regeneration process off-site.
As high-tech industries, such as electronics, communications, and pharmaceuticals, continue to grow, there will almost certainly be increasing use of deionization technology and deionized water. As instrumentation and analysis procedures improve, controlling and monitoring the deionization process will be easier and more efficient, and this will, undoubtedly, help create new uses for deionization that have not yet appeared, as well as make H20 Industries more affordable to sectors now using other methods of purification. As more people in the water treatment industry become familiar with the DI process, the industry for H20 Industries and equipment will benefit.
In addition to bulk and segregated portable H20 Industries, the company plans to expand sales of filters and DI cartridges. These sales have been disregarded in this business plan, but they could become more significant in the future. These products lend themselves to mail order type sales, as they are small and lightweight. Cartridges are disposable items. H20 Industries also has plans to develop a reusable shipping container for its smallest (8″ x 18″) DI exchange tank so that this can also be shipped via UPS. This product will be marketed on a website, as well as through conventional direct mail and yellow page advertising.
In the future, a logical off-shoot of the DI business is reverse osmosis (R/O) used in conjunction with DI exchange tanks. The inclusion of R/O in front of the DI tanks will extend the capacity of an exchange tank by 1000%. This addition to the product line could become a substantial element of total company sales.
Reverse osmosis and electric reversing deionization are beginning to compete with exchange tank DI technology. H20 Industries plans to offer service contracts to maintain this equipment at the customer’s location. This equipment may to either sold or leased.
The total market in Northern California for H20 Industries is between 670,000 and 925,000 cu ft of resin annually. H20 Industries’s total productive capacity will be only 36,400 cubic feet, or 3.9-5.4%. Since H20 Industries will have the unique capability of performing segregated regeneration, which is of special interest to the medical industry (dialysis, labs and pharmaceutical), the company will emphasize sales efforts in this segment for high purity H20 Industries. This segment is estimated at 167,000 cu ft annually. Next in terms of marketing emphasis will be the electronic (223,000 cu ft) and machine tool industries.
The market for H20 Industries encompasses many industries, and within them there is a wide range of purity needs. At the low end, a car wash might use H20 Industries in the final rinse only. Their need for purity might be only .5 Megohms (Ohms measure resistance). Water is only a good conductor because of the quantity of dissolved solids in the water. As the ion exchange process lowers the level of total dissolved solids (TDS) the resistance, measured in ohms, increases.
A purity level of .5 Megohms is pure enough for a car wash final rinse cycle, but not even close to pure enough for a electronics wafer manufacturer. They would need 18 Megohms, at which point the water would be pure and incapable of acting as a conductor. Generally speaking, those sectors of the market that need the highest levels of purity are the customers for H20 Industries’s main niche product of segregated DI exchange service. This means that the resin coming back from the customer is never mixed with any other company’s resin. This is a very strong sales feature when dealing with dialysis units of a hospital, labs and pharmaceutical manufacturers, and electronics makers. These customers are happy to pay a premium over the price charged for bulk DI regeneration service because they do not want their resin co-mingled with resin coming from a metal plater or a car wash.
Quantifying the market for segregated portable H20 Industries is not easy. Unlike the market for used cars, metal furniture, or nearly every product one can think of, there are no readily-available statistics on the market for portable DI exchange. There is overwhelming agreement that US Filter has the commanding market share of DI exchange business, opinions range from 85 to 95% majority.
According to the publisher of ULTRAPURE WATER®, (May-June 1999 volume 16, number 5) US Filter had sales of $1 billion in 1990, and has grown to $5 billion in 1999. Portable DI exchange is only a small portion of their business. Sales in Northern California of only DI portable exchange is estimated at $25 million. This has been confirmed from several sources. Firstly, one of the owners of H20 Industries is a former employee of US Filter. In 1996, their DI exchange business reached $12 million. This was only 65% of the market. Then the company acquired Culligan, adding another $8 million in portable DI exchange business in Northern California, and bringing the total to $20 million. It is assumed that sales have grown to $25 million over the past several years.
The relationship between input water and DI exchange capacity is charted. Assuming in-coming water quality of 200 parts per million of TDS in the far left column, a 3.6 cu. ft tank of regenerated resin can handle 10,800 gallons. This means that an average user with a flow rate of 10 gallons per minute would use up a 3.6 cu ft tank in 2.57 days, or 1.4 cu ft per day. Assuming the salesman was accurate in his statement of 2,000 customers, this would work out to 840,000 cu ft of regenerated portable DI exchange business per year. This figure is somewhat greater than the figure of 610,000, however, the subject of this business plan, H20 Industries, will have a productive capacity of only 140 cu ft per day, which represents between 4.5% and 6.3% of the total market in Northern California.
Taking the midpoint estimate for the total Northern California market of 780,000 cu ft annually, these high purity users would represent a market 558,000 cu ft
Hospital Dialysis Units and Stand alone Clinics:
California lists 16 stand-alone dialysis clinics, many of whom have multiple locations with varying numbers of stations. Every dialysis clinic, as least in Michigan according to BESCO, use H20 Industries for polishing, after initially running the water through a reverse osmosis system. Hospitals also have dialysis units. In addition, there is blood analysis work which is normally done using “wet” analysis equipment that requires H20 Industries. Assume this sector represents only 10% of the high purity market, or 55,000 cu ft annually.
Labs and pharmaceutical Manufacturers:
A list of labs and pharmaceutical makers in Northern California contains 330 names. A sample calling indicated that some use no pure water, others use such small qualities (10 gals/months) that they buy the water from suppliers like Hubbard-Hall, already made up. Others use so much H20 Industries that they have their own built-in DI system. The rest who have flow rate needs of between one and 20 gallons per minute are in the range most economically serviced by portable DI exchange. Assume this to represent 20% of the 558,000, or 112,000 cu ft.
Electronic Manufacturers:
Semiconductor manufacturers and other makers of electronic components need pure water to flush with. As microprocessors use wafers of ever-decreasing size, the requirements for pure water to rinse with increase, as do various other additional micro filtering. A list of electronics manufacturers in Northern California names 189 makers. Assume this sector represents 40% of 558,000, or 223,000 cu ft.
Machine Tools and Parts:
This is one of the fasting growing sectors as more and more manufacturers conform to the ISO 9000 standard, which requires delivered parts to be clean (defined as rinsed thoroughly with water of one Megohm purity or better). This category includes a need for H20 Industries in machines consuming cutting oil, any machine with cooling systems, and other uses. Assume this sector represents 30% of 558,000, or 167,000 cu ft.
This sector of the market will represent the market for DI exchange water lower than one Megohm in purity. Assume that the following industries take up the remaining 30% of the total market. Some industries that would be included in this “other” category would be:
The chart and table below summarize the total market potential for the DI exchange services in Northern California.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Dialysis Units | 2% | 55,000 | 56,100 | 57,222 | 58,366 | 59,533 | 2.00% |
Labs and Pharmaceuticals | 5% | 112,000 | 117,600 | 123,480 | 129,654 | 136,137 | 5.00% |
Electronics Manufacturers | 0% | 223,000 | 223,000 | 223,000 | 223,000 | 223,000 | 0.00% |
Machine Tool and Parts | 7% | 167,000 | 178,690 | 191,198 | 204,582 | 218,903 | 7.00% |
Other | 10% | 222,000 | 244,200 | 268,620 | 295,482 | 325,030 | 10.00% |
Total | 5.43% | 779,000 | 819,590 | 863,520 | 911,084 | 962,603 | 5.43% |
The target markets that will receive the most attention will be the sectors which require the highest levels of pure water. This means the 70% of the market that wants quality of one Megohm or better. Within this sector, quantified as 558,000 cu ft annually, H20 Industries will emphasize those users wanting the top echelon of purity (18 Megohms).This sector of the market might be only one third of the 558,000, but even at one third (186,000), it totals more than 300% of H20 Industries’s total capacity, including its bulk portion.
One notable trend in industries is to out-source. Chief financial officers analyze the costs of producing something in-house versus the costs of farming it out. Water purification is no exception. Although many large users of H20 Industries will want to set up their own in-house capacity, the capital costs, the maintenance costs, and the costs of dealing with regenerate waste often make DI portable exchange a more economical solution. Down-sizing within a company with its own pure water manufacturing capability often will lead to a management decision to shut down their in-house plant and switch over to portable service.
Another trend is for more and more industries to need higher degrees of purity in their manufacturing process, which results in an ever-growing market for H20 Industries.
The reasoning behind the attention to the highest purity sector of the market is that H20 Industries is able to provide segregated DI exchange service. A customer’s in-coming tanks for regeneration are tagged, and after regeneration, the same resin is returned to the customer. This specialized service is a major selling feature over US Filter, who must co-mingle customers’ resin in a bulk regenerating facility. Also, bulk regeneration will not achieve the same deionization capacity as H20 Industries’s segregated method which utilizes more chemicals and longer regeneration times. A customer dealing with blood can easily be sold on segregated resin as he would not feel comfortable that his resin would be co-mingled with resin used in a totally different industry.
In addition to the feature mentioned above, H20 Industries will concentrate on those customers who place a premium on response speed and intensity of service. Again, mainly the higher quality users of H20 Industries exchange, where a shut-down would be very expensive, will demand the highest degree of quality available. Segregated exchange service from a smaller supplier is much more likely to satisfy than a huge conglomerate like US Filter where portable exchange can only be done on a bulk batching basis and represents only a small part of their overall business.
The market growth percentages used in the market analysis table were obtained from various articles appearing in ULTRAPURE WATER®, the definitive journal of high-purity water. Specific articles can be located from an index on their website, www.talloaks.com/.
The industry for providing portable H20 Industries service is dominated by one very large company–US Filter. US Filter controls between 90 to 95% of the H20 Industries service business in Northern California. The company has grown from $1 billion to over $5 billion in the past six years, primarily through an acquisition binge. The company is now finalizing its sale to Vivendi’s Generale des Eaux water subsidiary which will result in combined sales of $12 billion, making it the largest water business in the world. Originally, US Filter’s primary focus was industrial and high purity water. Its acquisitions in other areas include drinking water, waste water, municipal water, and water supply.
Now, less than 20% of its activities relate to technologies and markets connected with high purity water. A much smaller percentage is connected with H20 Industries, and a still-smaller percentage concerned with DI exchange service. After their merger, the percentage will drop even further from 20% to eight percent. This situation has resulted in a growing dissatisfaction with US Filter’s services for H20 Industries exchange. Both owners of this project have been hearing complaints from US Filter customers for quite some time. This is not just a condition evident in Northern California, other sections of the country have noticed it and competitors to US Filter’s DI exchange business have started to grow.
Users of H20 Industries have had little choice in regards to their provider. It is regenerated on a bulk basis only, with no option for segregated regenerated resin (see section on Market Segmentation). Some small customers have obtained the DI exchange service through their local Culligan man or similar water serviceman who in turn obtains it from US Filter. The fact that some small players in the market can capture some of this DI exchange business from US Filter despite a higher price ($63-$80 per cu ft versus $40 per cu ft from US Filter) is a good indication of the importance that service plays in the buying decision. Rarely does the price of H20 Industries represent a significant variable production cost in a manufacturing process. Much more of a factor is worry about quality level and service response time.
In reaction to the service complaints of customers for US Filter’s DI exchange, a couple of small competitors have sprung up in Northern California. Fluid Solutions in Lowell is one such company. This company has been supplying customers with H20 Industries exchange although they have no regeneration facilities of their own. They merely service the customers and send the tanks to a regeneration facility of another DI exchange company in Pennsylvania.
The prices charged by all local companies to regenerate are between $63 and $80 per cu ft for mixed bed. They charge $20 to $30, depending on tank size, as a monthly rental charge.
The market in Northern California is ripe for growth in competitors to US Filter which does not provide segregated regeneration and whose regenerated resin, on a bulk batch basis, will not serve as high a flow rate as non-bulk regeneration.
Industry participants are varied, as there are several means of obtaining purified water. There are companies which design and engineer reverse osmosis equipment. This equipment has a sizable share of the water market at the end close to the municipal water inlet. Reverse osmosis (R/O), in conjunction with carbon filtering and ultraviolet light, is used (for example in dialysis) to bring the TDS down to a lower level. Ion exchange, either fixed or portable, is then used to polish away the remaining impurities. Other companies may supply e-cell equipment which deionizes electrically. This technology has not advanced sufficiently to compete with traditional H20 Industries but is still occasionally sold in conjunction with a R/O system as the e-cell can only handle small levels of TDS. Some industry participants are primarily engaged in water softening and water filtration for drinking and household purposes. These companies may also utilize green sand to remove iron and magnesium hardness derived from aging municipal piping systems.
In short, there is a full range of industry participants from the local Culligan service representative mainly involved in private households, to large companies involved in engineering, design, consulting, component manufacturing, waste water treatment, etc. With respect to the narrower market for H20 Industries, there are chemical companies who supply (by the gallon) H20 Industries to very small users. There are a few small companies engaged in DI exchange service who do this only as an adjunct to their main business, such as water softening, and who only act as a distributor of DI exchange regeneration facilities located outside of Northern California.
Besides direct sales effort to large users of H20 Industries, a major element of the company’s marketing efforts will be to develop a distributor network through existing local water service companies. These companies provide local water service to small companies and homes throughout Northern California. Most of their business takes the form of water filtering, water softening, reverse osmosis maintenance, swimming pool service, etc. The best of these will be recruited to add H20 Industries service to their product line.
H20 Industries will offer segregated resin regeneration to customers wanting the highest levels of water purity. Segregated regeneration is not offered by any other company in Northern California and indications are, based on present pre-start-up sales, that users of H20 Industries are willing to pay a substantial premium for it. It represents a form of peace of mind which dialysis units, laboratories, etc. feel is important.
The second most important value proposition is service response. When H20 Industries tanks need changing customers insist on, and will receive, an immediate response.
H20 Industries’s ability to segregate a customer’s resin and return it to him regenerated to the maximum limit, should put the company in a strong competitive position.
Approximately all of H20 Industries’s business will be directed at the portable service DI market. This market emphasis should quickly be noticed by users of H20 Industries, who at present rely on US Filter. US Filter’s product range growth through acquisition and buy-outs has de-emphasized the importance of its H20 Industries exchange service.
Hence, the two major aspects of the firm’s competitive advantage would be high quality segregated resin regeneration and fast service response. It will be important to stress these advantages in the sales literature.
H20 Industries’s marketing strategy will be to execute and communicate its value proposition of service and market segmentation advantage in providing segregated regeneration of customers’ resin.
Wherever H20 Industries cannot economically sell directly, due to distance or quantities, it will utilize a network of water service companies. These companies will be carefully chosen for their quality of service. An arrangement will be set up whereby the distributor will offer DI exchange service along with its other water services. The installations can easily be handled by them. They would tag the tanks and return and pick up from the H20 Industries plant. Being able to offer this service increases the image of the local water service company. It fosters a feeling a one-stop shopping. A 33% discount off the retail price should be adequate to satisfy the distributors.
H20 Industries’s ability to regenerate resin on a segregated basis, rather than only bulk, is a capability that should provide quick and easy entry into the user market where the highest water purity is needed. These users, blood analysis, hemodialysis units, and medical laboratories for example, are especially sensitive to contamination risks. Simply pointing out to these users that bulk regeneration involves the co-mingling of their resin with resin used in the metal-finishing and car wash industries usually is quite convincing. Segregated regeneration results in the further advantage of achieving a higher DI capacity per cubic foot as greater quantities of chemicals are used during a longer regeneration period.
The second most important position statement is H20 Industries’s concentration on the DI exchange business. This concentration will force H20 Industries to provide a higher level of service, and more quickly, too. It must be remembered that the cost for H20 Industries in the market for the highest level of water purity is not a significant cost element in the overall cost structure. However, a service shutdown, for quality or for service reasons, would be very costly to high technology users of H20 Industries.
In line with the conclusions drawn in the positioning statements, H20 Industries can charge a higher price for its segregated regenerated resin. There is virtually no competition for this product in the Northern California market.
Charging $63 per cubic foot (mixed bed), as used in the sales projections, is more than a 65% increase over the price for US Filter’s bulk resin price for mixed bed. H20 Industries is currently successfully charging in excess of $70 for this product. It is essential that H20 Industries place a premium price consistent with its superior product.
Wholesale prices have been established to encourage the quick formation of a dealership network. Dealers are afforded a 33% discount.
The main focus of promotion will be two-pronged: promotion to H20 Industries end users, and promotion to wholesalers.
Promotion to wholesalers should receive primary stress due to the extended reach made possible by the wholesaler network with its existing customer base. The sales force of these wholesale distributors needs to be educated on H20 Industries’s positioning statement so that they all understand the important sales advantages of segregated resin. Being able to offer DI exchange service to a distributor’s customer list is a great advantage to the distributor, and this fact needs to be clearly spelled out to them. Therefore, the H20 Industries relationship with a dealership network is one in which both sides benefit.
H20 Industries should strive to create a small-town, friendly relationship with its customers. Company brochures will show a map with all the H20 Industries locations, including each newly acquired distributor. The distributor trucks, as well as H20 Industries vehicles, would carry the H20 Industries logo, helping all to achieve name recognition. Cost savings would result through sharing literature, leads (by territory and/or industry), co-op marketing costs, and the sharing of technical expertise.
Direct marketing to customers within easy reach of H20 Industries should stress service. As a major supplier of resin stated: “US Filter is a huge concern that closes down at 5 P.M. on Friday.” Customers for H20 Industries need to feel that they can get service after hours, and even on a Saturday if need be. These customers feel much more comfortable dealing with an exchange service that is closer in size to the customer, and where the exchange service is an important portion of total sales revenue of the supplier. Prompt deliveries, trouble-free installations, good technical advise, etc. are main building blocks of the promotion strategy.
The sales strategy is to concentrate on that segment of the market most easily captured by the following sales feature: segregated regeneration of portable resin. In addition, the fastest way to reach the sales goal for the first several years is by actively working to develop a dealership network for H20 Industries.
Sales Projections:
Sales (July 1999) are running at less than 15% capacity monthly, exclusive of rental revenue. This approximates 285 cubic ft per month. The plant capacity will be 100 cu ft per day, on a one-shift basis. Based on the potential market outlined in the Marketing Section of this plan, growth in sales of regenerated segregated resin should reach 433 cu ft per month by October (equals 20 cu ft/day) which is this plan’s starting point, and growing steadily each month until 80 cu ft per day is reached (80% capacity) by the end of the first year. Total production of segregated resin is assumed to be split into equal quantities of anion, cation, and mixed bed.
Once the 80% capacity utilization level is reached (October 2000), unit sales will grow modestly in year two and year three. This growth can be achieved within the capacity limits of 100 cu ft daily (26,000 cu ft per annum) without increases in production labor. Further increases in segregated regeneration would require overtime labor charges. Also, for the projection purposes, direct unit costs for years two and three remain at the level of year one.
The bulk regeneration pad will have a capacity of 20 cu ft and can handle two batches during an eight-hour shift, totaling 40 cu ft/day. We will assume sales for bulk regeneration will grow at the rate of 5 cu ft/day in the first month reaching capacity of 40 cu ft/day after eight months. Sales are split between mixed bed (50%), 25% anion, and 25% cation. Sales of bulk resin will grow 15% each of the first three years. As the bulk regeneration, unlike the segregated regeneration, is not labor intensive, this 15% growth can be achieved without increases in production labor.
In projecting unit prices per ten cu ft. Prices will be assumed at:
The above prices will be reduced for dealers who will deliver and pick up at the factory to:
We will assume that 50% of all sales will go through dealers, so the unit price weighted average of the retail and dealer prices will be:
Variable Unit Costs:
The costs connected with one cubic foot of segregated anion treatment involve the cost of:
Cost of replacing small amounts of lost resin.
Experience indicates that with each regeneration it is necessary to replace approximately two percent of the resin. Anion resin costs $130 per cu ft. Cost is $2.60 per cu ft of anion serviced.
Summary of Anion servicing costs:
Total for anion servicing: $10.74
The costs connected with servicing one cubic foot of segregated cation treatment involve the cost of:
Experience indicates that in the process of regeneration about 2% of the resin needs to be replaced. Cation resin costs $30 per cu ft. Cost is $.60 per cu ft of cation serviced.
Summary of Cation servicing costs:
Total: $8.78 for cation servicing.
Costs of servicing one cubic foot of mixed bed:
A mixed bed tank is more time-consuming as it requires a separation stage prior to regeneration. City water (not DI) is mixed with salt. This solution is used to bathe the anion and cation resin in a cone until the two resins separate, at which point the cation and anion are treated in the regeneration stage in the same manner as the single bed anion and cation. One mixed bed contains twice as much anion as cation. This aspect results in a weighted cost of $10.09 per cu ft Salt consumption: every cubic foot of mixed bed needs 1.5 cu ft of brine solution. There are 7.48 gallons per cu ft This comes to 11 gallons of brine needs. A 22% salt solution in this quantity of water would amount to amount two pounds. Salt is supplied by Hubbard-Hall Inc. at $.095 per pound. Adding the cost of the two pounds of salt to the weighted average cost of $10.09 comes to $10.28.
Total cost of mixed bed serving: $10.28 per cu ft.
Tank Rental Income:
Because of the high costs of purchasing tanks, many new customers opt for renting tanks on a monthly basis. For purposes of these projections we will assume that:
Tank Sales:
It is assumed that those customers who do not opt to rent their tanks will already have their own tanks or will purchase tanks from H20 Industries. Sales of tanks is assumed at only five percent of the number of monthly rental tanks. Sales price is $1,200. Cost equals $450.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Unit Sales | |||
Segregated Anion Service 10 cu ft | 445 | 728 | 764 |
Segregated Cation Service 10 cu ft | 445 | 728 | 764 |
Segregated Mixed Bed 10 cu ft | 445 | 728 | 764 |
Bulk Regen 10 cu ft (MB) | 367 | 598 | 687 |
Bulk Regen 10 cu ft (Cat) | 183 | 299 | 344 |
Bulk Regen 10 cu ft (An) | 183 | 299 | 344 |
Tank Rentals (each 3.6 cu ft): | 1,436 | 2,347 | 2,546 |
Tank Sales: | 67 | 117 | 127 |
Other | 0 | 0 | 0 |
Total Unit Sales | 3,572 | 5,844 | 6,340 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Segregated Anion Service 10 cu ft | $476.00 | $476.00 | $476.00 |
Segregated Cation Service 10 cu ft | $476.00 | $476.00 | $476.00 |
Segregated Mixed Bed 10 cu ft | $526.00 | $526.00 | $526.00 |
Bulk Regen 10 cu ft (MB) | $359.00 | $359.00 | $359.00 |
Bulk Regen 10 cu ft (Cat) | $267.50 | $267.50 | $267.50 |
Bulk Regen 10 cu ft (An) | $267.50 | $267.50 | $267.50 |
Tank Rentals (each 3.6 cu ft): | $40.00 | $40.00 | $40.00 |
Tank Sales: | $1,200.00 | $1,200.00 | $1,200.00 |
Other | $0.00 | $0.00 | $0.00 |
Sales | |||
Segregated Anion Service 10 cu ft | $211,820 | $346,528 | $363,664 |
Segregated Cation Service 10 cu ft | $211,820 | $346,528 | $363,664 |
Segregated Mixed Bed 10 cu ft | $234,070 | $382,928 | $401,864 |
Bulk Regen 10 cu ft (MB) | $131,753 | $214,682 | $246,633 |
Bulk Regen 10 cu ft (Cat) | $49,080 | $79,983 | $92,020 |
Bulk Regen 10 cu ft (An) | $49,080 | $79,983 | $92,020 |
Tank Rentals (each 3.6 cu ft): | $57,440 | $93,880 | $101,840 |
Tank Sales: | $80,400 | $140,400 | $152,400 |
Other | $0 | $0 | $0 |
Total Sales | $1,025,462 | $1,684,911 | $1,814,105 |
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Segregated Anion Service 10 cu ft | $107.40 | $107.40 | $107.40 |
Segregated Cation Service 10 cu ft | $87.80 | $87.80 | $87.80 |
Segregated Mixed Bed 10 cu ft | $102.80 | $102.80 | $102.80 |
Bulk Regen 10 cu ft (MB) | $61.40 | $61.40 | $61.40 |
Bulk Regen 10 cu ft (Cat) | $69.50 | $69.50 | $69.50 |
Bulk Regen 10 cu ft (An) | $72.50 | $72.50 | $72.50 |
Tank Rentals (each 3.6 cu ft): | $0.00 | $0.00 | $0.00 |
Tank Sales: | $450.00 | $450.00 | $450.00 |
Other | $0.00 | $0.00 | $0.00 |
Direct Cost of Sales | |||
Segregated Anion Service 10 cu ft | $47,793 | $78,187 | $82,054 |
Segregated Cation Service 10 cu ft | $39,071 | $63,918 | $67,079 |
Segregated Mixed Bed 10 cu ft | $45,746 | $74,838 | $78,539 |
Bulk Regen 10 cu ft (MB) | $22,534 | $36,717 | $42,182 |
Bulk Regen 10 cu ft (Cat) | $12,752 | $20,781 | $23,908 |
Bulk Regen 10 cu ft (An) | $13,302 | $21,678 | $24,940 |
Tank Rentals (each 3.6 cu ft): | $0 | $0 | $0 |
Tank Sales: | $30,150 | $52,650 | $57,150 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $211,347 | $348,769 | $375,852 |
The relationship between dealerships and H20 Industries could be called a strategic alliance. These water service companies have an extensive customer base. Most of the customers have needs such as water softening, filtration, reverse osmosis maintenance, swimming pool maintenance, etc., however, many dealership customers have H20 Industries needs as well. At present, these water service companies must direct their customers to US Filter or supply the customer through US Filter. Forming a relationship between H20 Industries and these dealerships would quickly result in substantial sales increases for H20 Industries and would result in increased prestige and profits for the dealerships.
The management of H20 Industries is made up of individual shareholders with extensive expertise in the water treatment industry, as well as commercial and financial background.
The management team is uniquely qualified to implement this business plan. The founders, John Jones and Dave Smith, have been active in the water treatment industry for years. John’s experience working with dealers in application engineering and sales has prepared him well to present the H20 Industries dealership to water service companies that he already knows. His years of calling on dealerships in all aspects of the water industry have allowed him a birds-eye view of the prevailing marketing and business practices.
Dave has been involved in the manufacturing sector of the water industry and is well respected and connected there. His training and certification as a Professional Engineer give him an advantage when consulting with customers and prospective customers.
The person planned for the position of general manager has wide-ranging experience in finance and manufacturing. He is a former vice president of Chase Manhattan Bank, team leader of a development bank (Saudi Industrial Development Fund), and founder/general manager of a factory which, after 10 years of profitable operations, was bought out in 1989.
The production manager is a chemical engineer by education and professional experience, and has demonstrated his know-how by successfully managing the production activity in the factory despite the challenges presented by the present incomplete production line.
Regeneration Personnel : A production manager must be a skilled chemical engineer with experience in water treatment applications. This person must be a hands-on individual supervising two assistants. The production manager will label the tanks as they are received to assure customer segregation and supervise the proper regeneration cycle, from separation through backwash, draw, flush, mix, and testing. The assistants will primarily be kept busy moving tanks from one stage in the regeneration cycle to the next, connecting the hosing, performing the chemical mix and draw according to the instructions of the production manager, adding salt to the brine tank, etc. The production manager is in place. One assistant is now in place. A second is needed.
An engineer/fitter is also needed to maintain the equipment and to make installations. This person is in place.
Sales and Marketing Personnel : It is planned that both owners will continue to maintain their present positions. These sales positions require them to move about the territory which provides an excellent source of knowledge of customers for H20 Industries. This information will be communicated to the sales and marketing manager who will spend his time calling and visiting potential H20 Industries users. He will be paid a base salary plus commissions. The commission will be higher for landing a new customer, and lower for repeat sales. The commission schedule will be constructed in such a way as to permit an annual total compensation that will encourage excellent sales results.
General and Administrative : An office manager is needed. Answering phones, primary contact with customers, incoming and outgoing mail, etc. He will be the main connection between the owners and the operations of the facility. Within six months, a part-time assistant will need to be added to keep pace with bookkeeping and management.
Delivery Personnel : One driver, who has additional responsibilities, is now in place. A second will need to be added after approximately four months.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Production Personnel | |||
Production Manager | $41,604 | $41,600 | $41,600 |
Assistant | $20,796 | $20,800 | $20,800 |
Assistant | $20,796 | $20,800 | $20,800 |
Engineer/fitter | $31,200 | $31,200 | $31,200 |
Drivers | $54,198 | $58,400 | $58,400 |
Other | $0 | $0 | $0 |
Subtotal | $168,594 | $172,800 | $172,800 |
Sales and Marketing Personnel | |||
Sales Manager (base) | $24,000 | $24,000 | $24,000 |
Sales Manager (commissions) | $38,660 | $51,000 | $60,000 |
Name or title | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Subtotal | $62,660 | $75,000 | $84,000 |
General and Administrative Personnel | |||
Office Manager | $39,996 | $40,000 | $40,000 |
Bookkeeper (part-time) | $9,100 | $15,600 | $15,600 |
Name or title | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Subtotal | $49,096 | $55,600 | $55,600 |
Other Personnel | |||
Name or Title | $0 | $0 | $0 |
Name or title | $0 | $0 | $0 |
Name or title | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Subtotal | $0 | $0 | $0 |
Total People | 9 | 9 | 9 |
Total Payroll | $280,350 | $303,400 | $312,400 |
As of August 1999, stockholder equity stood at $112,000. Additional infusion of equity from new shareholders will boost the equity capital.
To complete the necessary planned additions to plant and equipment, a 5-year term loan will be required from a financial institution. The projected cash-flow is sufficient to repay this loan in quarterly installments. This term loan should be sufficient to cover the increases in accounts receivable, as well as to support growth in inventory of rental tanks.
Tax rate reflects the present sliding scale:
Inventory Turnover:
Since this is a service business, the only inventory is that of chemicals and some resin, both of which do not need to be stored more than two weeks. Average is one week (inventory turnover rate of 48).
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 2.50% | 0.00% | 2.50% |
Other | 0 | 0 | 0 |
The following table and chart show the Monthly Units and Monthly Revenue Break-even calculations based on the Average Per-Unit Revenue, Average Per-Unit Variable Costs and the Estimated Monthly Fixed Costs, as drawn from the other financial tables in this plan.
Break-even Analysis | |
Monthly Units Break-even | 119 |
Monthly Revenue Break-even | $34,235 |
Assumptions: | |
Average Per-Unit Revenue | $287.08 |
Average Per-Unit Variable Cost | $59.17 |
Estimated Monthly Fixed Cost | $27,179 |
The following table and charts give the yearly projected profit and loss statement for H20 Industries. For a monthly analysis, please see attached appendix.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $1,025,462 | $1,684,911 | $1,814,105 |
Direct Cost of Sales | $211,347 | $348,769 | $375,852 |
Production Payroll | $168,594 | $172,800 | $172,800 |
Other | $0 | $0 | $0 |
Total Cost of Sales | $379,941 | $521,569 | $548,652 |
Gross Margin | $645,521 | $1,163,342 | $1,265,453 |
Gross Margin % | 62.95% | 69.04% | 69.76% |
Operating Expenses | |||
Sales and Marketing Expenses | |||
Sales and Marketing Payroll | $62,660 | $75,000 | $84,000 |
Advertising/Promotion | $16,500 | $12,000 | $12,000 |
Travel | $3,600 | $6,000 | $6,000 |
Fuel/oil for Vehicles: | $11,520 | $12,000 | $12,500 |
Vehicle Repair: | $20,004 | $20,000 | $20,000 |
Uniforms | $1,200 | $1,200 | $1,200 |
Miscellaneous | $10,800 | $10,800 | $10,800 |
Total Sales and Marketing Expenses | $126,284 | $137,000 | $146,500 |
Sales and Marketing % | 12.31% | 8.13% | 8.08% |
General and Administrative Expenses | |||
General and Administrative Payroll | $49,096 | $55,600 | $55,600 |
Sales and Marketing and Other Expenses | $0 | $0 | $0 |
Depreciation | $36,000 | $36,000 | $36,000 |
Leased Equipment | $15,252 | $15,252 | $15,252 |
Utilities | $2,250 | $2,250 | $2,250 |
Insurance | $11,796 | $11,800 | $11,800 |
Business Liab. Insurance: | $12,000 | $12,000 | $12,000 |
Printing and Postage: | $3,600 | $3,600 | $3,600 |
Telephone Expenses: | $8,004 | $8,000 | $8,000 |
Auditing: | $2,400 | $2,400 | $2,400 |
Rent | $24,000 | $24,000 | $24,000 |
Payroll Taxes | $35,464 | $38,380 | $39,519 |
Other General and Administrative Expenses | $0 | $0 | $0 |
Total General and Administrative Expenses | $199,862 | $209,282 | $210,421 |
General and Administrative % | 19.49% | 12.42% | 11.60% |
Other Expenses: | |||
Other Payroll | $0 | $0 | $0 |
Consultants | $0 | $0 | $0 |
Contract/Consultants | $0 | $0 | $0 |
Total Other Expenses | $0 | $0 | $0 |
Other % | 0.00% | 0.00% | 0.00% |
Total Operating Expenses | $326,146 | $346,282 | $356,921 |
Profit Before Interest and Taxes | $319,375 | $817,060 | $908,533 |
EBITDA | $355,375 | $853,060 | $944,533 |
Interest Expense | $19,755 | $12,323 | $9,948 |
Taxes Incurred | ($4,643) | $0 | $22,465 |
Net Profit | $304,263 | $804,737 | $876,120 |
Net Profit/Sales | 29.67% | 47.76% | 48.29% |
Cash Flow is an intrinsic projection for H20 Industries. We must maintain a suitable cash balance in the bank in order to be successful. The chart and table below outline our basic cash flow assumptions.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $0 | $0 | $0 |
Cash from Receivables | $774,831 | $1,523,736 | $1,782,529 |
Subtotal Cash from Operations | $774,831 | $1,523,736 | $1,782,529 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $50,000 | $6,250 | $6,250 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $50,000 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $874,831 | $1,529,986 | $1,788,779 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $280,350 | $303,400 | $312,400 |
Bill Payments | $439,684 | $559,027 | $590,514 |
Subtotal Spent on Operations | $720,034 | $862,427 | $902,914 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $56,252 | $0 | $0 |
Other Liabilities Principal Repayment | $16,810 | $0 | $0 |
Long-term Liabilities Principal Repayment | $60,000 | $30,000 | $30,000 |
Purchase Other Current Assets | $63,450 | $10,350 | $9,450 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $916,546 | $902,777 | $942,364 |
Net Cash Flow | ($41,715) | $627,209 | $846,415 |
Cash Balance | $82,508 | $709,717 | $1,556,132 |
The projected balance sheet for H20 Industries is presented below.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $82,508 | $709,717 | $1,556,132 |
Accounts Receivable | $250,631 | $411,806 | $443,382 |
Inventory | $28,886 | $47,669 | $51,370 |
Other Current Assets | $103,450 | $113,800 | $123,250 |
Total Current Assets | $465,476 | $1,282,992 | $2,174,135 |
Long-term Assets | |||
Long-term Assets | $220,000 | $220,000 | $220,000 |
Accumulated Depreciation | $36,000 | $72,000 | $108,000 |
Total Long-term Assets | $184,000 | $148,000 | $112,000 |
Total Assets | $649,476 | $1,430,992 | $2,286,135 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $45,461 | $45,991 | $48,763 |
Current Borrowing | $15,102 | $21,352 | $27,602 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $60,563 | $67,343 | $76,365 |
Long-term Liabilities | $120,000 | $90,000 | $60,000 |
Total Liabilities | $180,563 | $157,343 | $136,365 |
Paid-in Capital | $187,000 | $187,000 | $187,000 |
Retained Earnings | ($22,350) | $281,913 | $1,086,650 |
Earnings | $304,263 | $804,737 | $876,120 |
Total Capital | $468,913 | $1,273,650 | $2,149,770 |
Total Liabilities and Capital | $649,476 | $1,430,992 | $2,286,135 |
Net Worth | $468,913 | $1,273,650 | $2,149,770 |
The following table gives standard business ratios for the water treatment equipment manufacturer industry, as determined by the Standard Industry Classification (SIC) Index code 3589. The last column, Industry Profile, presents specific information and important ratios for this industry.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 64.31% | 7.67% | 8.10% |
Percent of Total Assets | ||||
Accounts Receivable | 38.59% | 28.78% | 19.39% | 25.10% |
Inventory | 4.45% | 3.33% | 2.25% | 21.60% |
Other Current Assets | 15.93% | 7.95% | 5.39% | 25.80% |
Total Current Assets | 71.67% | 89.66% | 95.10% | 72.50% |
Long-term Assets | 28.33% | 10.34% | 4.90% | 27.50% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 9.32% | 4.71% | 3.34% | 35.50% |
Long-term Liabilities | 18.48% | 6.29% | 2.62% | 21.30% |
Total Liabilities | 27.80% | 11.00% | 5.96% | 56.80% |
Net Worth | 72.20% | 89.00% | 94.04% | 43.20% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 62.95% | 69.04% | 69.76% | 32.10% |
Selling, General & Administrative Expenses | 33.28% | 21.28% | 20.22% | 17.80% |
Advertising Expenses | 1.61% | 0.71% | 0.66% | 0.90% |
Profit Before Interest and Taxes | 31.14% | 48.49% | 50.08% | 3.40% |
Main Ratios | ||||
Current | 7.69 | 19.05 | 28.47 | 2.12 |
Quick | 7.21 | 18.34 | 27.80 | 1.20 |
Total Debt to Total Assets | 27.80% | 11.00% | 5.96% | 56.80% |
Pre-tax Return on Net Worth | 63.90% | 63.18% | 41.80% | 4.50% |
Pre-tax Return on Assets | 46.13% | 56.24% | 39.31% | 10.40% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 29.67% | 47.76% | 48.29% | n.a |
Return on Equity | 64.89% | 63.18% | 40.75% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 4.09 | 4.09 | 4.09 | n.a |
Collection Days | 56 | 72 | 86 | n.a |
Inventory Turnover | 10.91 | 9.11 | 7.59 | n.a |
Accounts Payable Turnover | 9.32 | 12.17 | 12.17 | n.a |
Payment Days | 31 | 30 | 29 | n.a |
Total Asset Turnover | 1.58 | 1.18 | 0.79 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.39 | 0.12 | 0.06 | n.a |
Current Liab. to Liab. | 0.34 | 0.43 | 0.56 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $404,913 | $1,215,650 | $2,097,770 | n.a |
Interest Coverage | 16.17 | 66.31 | 91.33 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.63 | 0.85 | 1.26 | n.a |
Current Debt/Total Assets | 9% | 5% | 3% | n.a |
Acid Test | 3.07 | 12.23 | 21.99 | n.a |
Sales/Net Worth | 2.19 | 1.32 | 0.84 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Unit Sales | |||||||||||||
Segregated Anion Service 10 cu ft | 0% | 14 | 19 | 23 | 27 | 31 | 35 | 40 | 44 | 48 | 52 | 56 | 57 |
Segregated Cation Service 10 cu ft | 0% | 14 | 19 | 23 | 27 | 31 | 35 | 40 | 44 | 48 | 52 | 56 | 57 |
Segregated Mixed Bed 10 cu ft | 0% | 14 | 19 | 23 | 27 | 31 | 35 | 40 | 44 | 48 | 52 | 56 | 57 |
Bulk Regen 10 cu ft (MB) | 0% | 5 | 11 | 16 | 22 | 26 | 33 | 38 | 43 | 43 | 43 | 43 | 43 |
Bulk Regen 10 cu ft (Cat) | 0% | 3 | 5 | 8 | 11 | 13 | 16 | 19 | 22 | 22 | 22 | 22 | 22 |
Bulk Regen 10 cu ft (An) | 0% | 3 | 5 | 8 | 11 | 13 | 16 | 19 | 22 | 22 | 22 | 22 | 22 |
Tank Rentals (each 3.6 cu ft): | 0% | 37 | 54 | 70 | 86 | 101 | 118 | 135 | 151 | 160 | 168 | 178 | 178 |
Tank Sales: | 0% | 2 | 2 | 3 | 4 | 5 | 5 | 7 | 7 | 8 | 8 | 8 | 8 |
Other | 0% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total Unit Sales | 92 | 133 | 174 | 214 | 251 | 294 | 336 | 376 | 398 | 419 | 442 | 443 | |
Unit Prices | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Segregated Anion Service 10 cu ft | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | |
Segregated Cation Service 10 cu ft | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | $476.00 | |
Segregated Mixed Bed 10 cu ft | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | $526.00 | |
Bulk Regen 10 cu ft (MB) | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | $359.00 | |
Bulk Regen 10 cu ft (Cat) | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | |
Bulk Regen 10 cu ft (An) | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | $267.50 | |
Tank Rentals (each 3.6 cu ft): | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | $40.00 | |
Tank Sales: | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | $1,200.00 | |
Other | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |
Sales | |||||||||||||
Segregated Anion Service 10 cu ft | $6,807 | $8,806 | $10,805 | $12,804 | $14,804 | $16,803 | $18,802 | $20,801 | $22,800 | $24,800 | $26,799 | $26,989 | |
Segregated Cation Service 10 cu ft | $6,807 | $8,806 | $10,805 | $12,804 | $14,804 | $16,803 | $18,802 | $20,801 | $22,800 | $24,800 | $26,799 | $26,989 | |
Segregated Mixed Bed 10 cu ft | $7,364 | $9,731 | $11,940 | $14,149 | $16,359 | $18,568 | $20,777 | $22,986 | $25,195 | $27,405 | $29,614 | $29,982 | |
Bulk Regen 10 cu ft (MB) | $1,939 | $3,877 | $5,834 | $7,772 | $9,334 | $11,668 | $13,606 | $15,545 | $15,545 | $15,545 | $15,545 | $15,545 | |
Bulk Regen 10 cu ft (Cat) | $722 | $1,445 | $2,173 | $2,889 | $3,478 | $4,347 | $5,069 | $5,791 | $5,791 | $5,791 | $5,791 | $5,791 | |
Bulk Regen 10 cu ft (An) | $722 | $1,445 | $2,173 | $2,889 | $3,478 | $4,347 | $5,069 | $5,791 | $5,791 | $5,791 | $5,791 | $5,791 | |
Tank Rentals (each 3.6 cu ft): | $1,480 | $2,160 | $2,800 | $3,440 | $4,040 | $4,720 | $5,400 | $6,040 | $6,400 | $6,720 | $7,120 | $7,120 | |
Tank Sales: | $2,400 | $2,400 | $3,600 | $4,800 | $6,000 | $6,000 | $8,400 | $8,400 | $9,600 | $9,600 | $9,600 | $9,600 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Sales | $28,241 | $38,669 | $50,131 | $61,549 | $72,295 | $83,255 | $95,925 | $106,156 | $113,924 | $120,451 | $127,059 | $127,808 | |
Direct Unit Costs | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Segregated Anion Service 10 cu ft | 0.00% | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 | $107.40 |
Segregated Cation Service 10 cu ft | 0.00% | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 | $87.80 |
Segregated Mixed Bed 10 cu ft | 0.00% | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 | $102.80 |
Bulk Regen 10 cu ft (MB) | 0.00% | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 | $61.40 |
Bulk Regen 10 cu ft (Cat) | 0.00% | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 | $69.50 |
Bulk Regen 10 cu ft (An) | 0.00% | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 | $72.50 |
Tank Rentals (each 3.6 cu ft): | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Tank Sales: | 0.00% | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 | $450.00 |
Other | 0.00% | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Direct Cost of Sales | |||||||||||||
Segregated Anion Service 10 cu ft | $1,536 | $1,987 | $2,438 | $2,889 | $3,340 | $3,791 | $4,242 | $4,693 | $5,144 | $5,596 | $6,047 | $6,090 | |
Segregated Cation Service 10 cu ft | $1,256 | $1,624 | $1,993 | $2,362 | $2,731 | $3,099 | $3,468 | $3,837 | $4,206 | $4,574 | $4,943 | $4,978 | |
Segregated Mixed Bed 10 cu ft | $1,439 | $1,902 | $2,334 | $2,765 | $3,197 | $3,629 | $4,061 | $4,492 | $4,924 | $5,356 | $5,788 | $5,860 | |
Bulk Regen 10 cu ft (MB) | $332 | $663 | $998 | $1,329 | $1,596 | $1,996 | $2,327 | $2,659 | $2,659 | $2,659 | $2,659 | $2,659 | |
Bulk Regen 10 cu ft (Cat) | $188 | $375 | $565 | $751 | $904 | $1,129 | $1,317 | $1,505 | $1,505 | $1,505 | $1,505 | $1,505 | |
Bulk Regen 10 cu ft (An) | $196 | $392 | $589 | $783 | $943 | $1,178 | $1,374 | $1,570 | $1,570 | $1,570 | $1,570 | $1,570 | |
Tank Rentals (each 3.6 cu ft): | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Tank Sales: | $900 | $900 | $1,350 | $1,800 | $2,250 | $2,250 | $3,150 | $3,150 | $3,600 | $3,600 | $3,600 | $3,600 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $5,846 | $7,843 | $10,266 | $12,679 | $14,960 | $17,072 | $19,939 | $21,906 | $23,607 | $24,859 | $26,110 | $26,260 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Production Personnel | |||||||||||||
Production Manager | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | $3,467 | |
Assistant | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | |
Assistant | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | $1,733 | |
Engineer/fitter | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | $2,600 | |
Drivers | $3,467 | $3,466 | $3,467 | $4,866 | $4,867 | $4,866 | $4,867 | $4,866 | $4,867 | $4,866 | $4,867 | $4,866 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $13,000 | $12,999 | $13,000 | $14,399 | $14,400 | $14,399 | $14,400 | $14,399 | $14,400 | $14,399 | $14,400 | $14,399 | |
Sales and Marketing Personnel | |||||||||||||
Sales Manager (base) | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Sales Manager (commissions) | $960 | $1,500 | $2,000 | $2,500 | $3,000 | $3,700 | $3,850 | $3,950 | $4,100 | $4,250 | $4,350 | $4,500 | |
Name or title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $2,960 | $3,500 | $4,000 | $4,500 | $5,000 | $5,700 | $5,850 | $5,950 | $6,100 | $6,250 | $6,350 | $6,500 | |
General and Administrative Personnel | |||||||||||||
Office Manager | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | |
Bookkeeper (part-time) | $0 | $0 | $0 | $0 | $0 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | $1,300 | |
Name or title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $4,633 | $4,633 | $4,633 | $4,633 | $4,633 | $4,633 | $4,633 | |
Other Personnel | |||||||||||||
Name or Title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Name or title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Name or title | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total People | 7 | 7 | 7 | 7 | 8 | 9 | 9 | 9 | 9 | 9 | 9 | 9 | |
Total Payroll | $19,293 | $19,832 | $20,333 | $22,232 | $22,733 | $24,732 | $24,883 | $24,982 | $25,133 | $25,282 | $25,383 | $25,532 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $28,241 | $38,669 | $50,131 | $61,549 | $72,295 | $83,255 | $95,925 | $106,156 | $113,924 | $120,451 | $127,059 | $127,808 | |
Direct Cost of Sales | $5,846 | $7,843 | $10,266 | $12,679 | $14,960 | $17,072 | $19,939 | $21,906 | $23,607 | $24,859 | $26,110 | $26,260 | |
Production Payroll | $13,000 | $12,999 | $13,000 | $14,399 | $14,400 | $14,399 | $14,400 | $14,399 | $14,400 | $14,399 | $14,400 | $14,399 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $18,846 | $20,842 | $23,266 | $27,078 | $29,360 | $31,471 | $34,339 | $36,305 | $38,007 | $39,258 | $40,510 | $40,659 | |
Gross Margin | $9,395 | $17,827 | $26,865 | $34,470 | $42,935 | $51,783 | $61,586 | $69,852 | $75,917 | $81,194 | $86,549 | $87,148 | |
Gross Margin % | 33.27% | 46.10% | 53.59% | 56.01% | 59.39% | 62.20% | 64.20% | 65.80% | 66.64% | 67.41% | 68.12% | 68.19% | |
Operating Expenses | |||||||||||||
Sales and Marketing Expenses | |||||||||||||
Sales and Marketing Payroll | $2,960 | $3,500 | $4,000 | $4,500 | $5,000 | $5,700 | $5,850 | $5,950 | $6,100 | $6,250 | $6,350 | $6,500 | |
Advertising/Promotion | $1,900 | $1,900 | $1,900 | $1,900 | $1,900 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | |
Travel | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Fuel/oil for Vehicles: | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | $960 | |
Vehicle Repair: | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | |
Uniforms | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | $100 | |
Miscellaneous | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | $900 | |
Total Sales and Marketing Expenses | $8,787 | $9,327 | $9,827 | $10,327 | $10,827 | $10,627 | $10,777 | $10,877 | $11,027 | $11,177 | $11,277 | $11,427 | |
Sales and Marketing % | 31.11% | 24.12% | 19.60% | 16.78% | 14.98% | 12.76% | 11.23% | 10.25% | 9.68% | 9.28% | 8.88% | 8.94% | |
General and Administrative Expenses | |||||||||||||
General and Administrative Payroll | $3,333 | $3,333 | $3,333 | $3,333 | $3,333 | $4,633 | $4,633 | $4,633 | $4,633 | $4,633 | $4,633 | $4,633 | |
Sales and Marketing and Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Depreciation | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | $3,000 | |
Leased Equipment | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | $1,271 | |
Utilities | $250 | $250 | $250 | $250 | $250 | $250 | $250 | $100 | $100 | $100 | $100 | $100 | |
Insurance | $983 | $983 | $983 | $983 | $983 | $983 | $983 | $983 | $983 | $983 | $983 | $983 | |
Business Liab. Insurance: | $0 | $0 | $0 | $0 | $0 | $6,000 | $0 | $0 | $0 | $0 | $0 | $6,000 | |
Printing and Postage: | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | $300 | |
Telephone Expenses: | $667 | $667 | $667 | $667 | $667 | $667 | $667 | $667 | $667 | $667 | $667 | $667 | |
Auditing: | $0 | $0 | $0 | $2,400 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Rent | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 | |
Payroll Taxes | 13% | $2,441 | $2,509 | $2,572 | $2,812 | $2,876 | $3,129 | $3,148 | $3,160 | $3,179 | $3,198 | $3,211 | $3,230 |
Other General and Administrative Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total General and Administrative Expenses | $14,245 | $14,313 | $14,376 | $17,016 | $14,680 | $22,233 | $16,252 | $16,114 | $16,133 | $16,152 | $16,165 | $22,184 | |
General and Administrative % | 50.44% | 37.01% | 28.68% | 27.65% | 20.31% | 26.70% | 16.94% | 15.18% | 14.16% | 13.41% | 12.72% | 17.36% | |
Other Expenses: | |||||||||||||
Other Payroll | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Consultants | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Contract/Consultants | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Other Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
Total Operating Expenses | $23,032 | $23,640 | $24,203 | $27,343 | $25,507 | $32,860 | $27,029 | $26,991 | $27,160 | $27,329 | $27,442 | $33,611 | |
Profit Before Interest and Taxes | ($13,636) | ($5,812) | $2,662 | $7,127 | $17,428 | $18,924 | $34,558 | $42,860 | $48,756 | $53,864 | $59,107 | $53,538 | |
EBITDA | ($10,636) | ($2,812) | $5,662 | $10,127 | $20,428 | $21,924 | $37,558 | $45,860 | $51,756 | $56,864 | $62,107 | $56,538 | |
Interest Expense | $1,840 | $1,773 | $1,769 | $1,765 | $1,698 | $1,694 | $1,689 | $1,622 | $1,618 | $1,614 | $1,547 | $1,126 | |
Taxes Incurred | ($4,643) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($10,834) | ($7,586) | $893 | $5,362 | $15,730 | $17,230 | $32,868 | $41,238 | $47,138 | $52,251 | $57,560 | $52,412 | |
Net Profit/Sales | -38.36% | -19.62% | 1.78% | 8.71% | 21.76% | 20.70% | 34.26% | 38.85% | 41.38% | 43.38% | 45.30% | 41.01% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Cash from Receivables | $0 | $941 | $28,588 | $39,051 | $50,512 | $61,907 | $72,660 | $83,677 | $96,266 | $106,415 | $114,141 | $120,672 | |
Subtotal Cash from Operations | $0 | $941 | $28,588 | $39,051 | $50,512 | $61,907 | $72,660 | $83,677 | $96,266 | $106,415 | $114,141 | $120,672 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $50,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $50,000 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $100,000 | $941 | $28,588 | $39,051 | $50,512 | $61,907 | $72,660 | $83,677 | $96,266 | $106,415 | $114,141 | $120,672 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $19,293 | $19,832 | $20,333 | $22,232 | $22,733 | $24,732 | $24,883 | $24,982 | $25,133 | $25,282 | $25,383 | $25,532 | |
Bill Payments | $61,849 | $13,625 | $25,719 | $28,739 | $33,600 | $33,584 | $40,540 | $38,353 | $39,147 | $40,550 | $41,335 | $42,644 | |
Subtotal Spent on Operations | $81,142 | $33,457 | $46,052 | $50,971 | $56,333 | $58,316 | $65,423 | $63,335 | $64,280 | $65,832 | $66,718 | $68,176 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $521 | $521 | $521 | $521 | $521 | $521 | $521 | $521 | $521 | $521 | $521 | $50,521 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $16,810 | |
Long-term Liabilities Principal Repayment | $30,000 | $7,500 | $0 | $0 | $7,500 | $0 | $0 | $7,500 | $0 | $0 | $7,500 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $5,400 | $8,550 | $9,900 | $9,900 | $9,450 | $5,400 | $4,500 | $10,350 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $111,663 | $41,478 | $46,573 | $56,892 | $72,904 | $68,737 | $75,844 | $80,806 | $70,201 | $70,853 | $85,089 | $135,507 | |
Net Cash Flow | ($11,663) | ($40,537) | ($17,984) | ($17,840) | ($22,392) | ($6,830) | ($3,184) | $2,871 | $26,066 | $35,562 | $29,052 | ($14,836) | |
Cash Balance | $112,560 | $72,023 | $54,039 | $36,198 | $13,806 | $6,977 | $3,793 | $6,664 | $32,730 | $68,292 | $97,344 | $82,508 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $124,223 | $112,560 | $72,023 | $54,039 | $36,198 | $13,806 | $6,977 | $3,793 | $6,664 | $32,730 | $68,292 | $97,344 | $82,508 |
Accounts Receivable | $0 | $28,241 | $65,969 | $87,511 | $110,009 | $131,792 | $153,140 | $176,405 | $198,884 | $216,541 | $230,577 | $243,495 | $250,631 |
Inventory | $10,000 | $6,430 | $8,627 | $11,293 | $13,947 | $16,456 | $18,780 | $21,933 | $24,096 | $25,968 | $27,345 | $28,721 | $28,886 |
Other Current Assets | $90,000 | $40,000 | $40,000 | $40,000 | $45,400 | $53,950 | $63,850 | $73,750 | $83,200 | $88,600 | $93,100 | $103,450 | $103,450 |
Total Current Assets | $224,223 | $187,230 | $186,619 | $192,843 | $205,554 | $216,004 | $242,746 | $275,881 | $312,844 | $363,839 | $419,314 | $473,010 | $465,476 |
Long-term Assets | |||||||||||||
Long-term Assets | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 | $220,000 |
Accumulated Depreciation | $0 | $3,000 | $6,000 | $9,000 | $12,000 | $15,000 | $18,000 | $21,000 | $24,000 | $27,000 | $30,000 | $33,000 | $36,000 |
Total Long-term Assets | $220,000 | $217,000 | $214,000 | $211,000 | $208,000 | $205,000 | $202,000 | $199,000 | $196,000 | $193,000 | $190,000 | $187,000 | $184,000 |
Total Assets | $444,223 | $404,230 | $400,619 | $403,843 | $413,554 | $421,004 | $444,746 | $474,881 | $508,844 | $556,839 | $609,314 | $660,010 | $649,476 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $61,409 | $12,771 | $24,766 | $27,618 | $32,488 | $32,230 | $39,262 | $37,050 | $37,796 | $39,173 | $39,919 | $41,076 | $45,461 |
Current Borrowing | $21,354 | $70,833 | $70,312 | $69,791 | $69,270 | $68,749 | $68,228 | $67,707 | $67,186 | $66,665 | $66,144 | $65,623 | $15,102 |
Other Current Liabilities | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $16,810 | $0 |
Subtotal Current Liabilities | $99,573 | $100,414 | $111,888 | $114,219 | $118,568 | $117,789 | $124,300 | $121,567 | $121,792 | $122,648 | $122,873 | $123,509 | $60,563 |
Long-term Liabilities | $180,000 | $150,000 | $142,500 | $142,500 | $142,500 | $135,000 | $135,000 | $135,000 | $127,500 | $127,500 | $127,500 | $120,000 | $120,000 |
Total Liabilities | $279,573 | $250,414 | $254,388 | $256,719 | $261,068 | $252,789 | $259,300 | $256,567 | $249,292 | $250,148 | $250,373 | $243,509 | $180,563 |
Paid-in Capital | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 | $187,000 |
Retained Earnings | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) | ($22,350) |
Earnings | $0 | ($10,834) | ($18,420) | ($17,527) | ($12,164) | $3,566 | $20,796 | $53,664 | $94,902 | $142,040 | $194,291 | $251,851 | $304,263 |
Total Capital | $164,650 | $153,816 | $146,230 | $147,123 | $152,486 | $168,216 | $185,446 | $218,314 | $259,552 | $306,690 | $358,941 | $416,501 | $468,913 |
Total Liabilities and Capital | $444,223 | $404,230 | $400,619 | $403,843 | $413,554 | $421,004 | $444,746 | $474,881 | $508,844 | $556,839 | $609,314 | $660,010 | $649,476 |
Net Worth | $164,650 | $153,816 | $146,230 | $147,123 | $152,486 | $168,216 | $185,446 | $218,314 | $259,552 | $306,690 | $358,941 | $416,501 | $468,913 |
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Plastic water tanks are a reliable source of water storage for domestic, industrial, and agricultural purposes. These tanks offer durability, affordability, and convenience, making them a popular choice among consumers worldwide. If you’re considering venturing into the business of manufacturing these water tanks, here’s a comprehensive guide on how to make them with the help of a high-quality Plastic Water Tank Making Machine.
The main purpose of a plastic water tank-making machine is to manufacture plastic water tanks in a variety of sizes, shapes, and features. Plastic tanks, like other plastic components and parts, are manufactured using several techniques such as injection, blow, or rotational moulding, with variants on these standard processes.
The primary material used in making plastic water tanks is high-density polyethylene (HDPE) resin and polypropylene. HDPE is preferred due to its durability, chemical resistance, and ability to withstand varying temperatures. Additionally, colorants and UV stabilizers are added to the resin to enhance the tank’s aesthetic appeal and UV resistance.
While creating plastic water tanks with a dedicated machine is an industrial process, here’s a simplified breakdown of the general steps involved:
Raw Material Preparation: The process starts with plastic resin pellets, typically Polyethylene. These are measured and fed into a grinder to obtain a uniform powder.
Rotational Molding: The key technique here is rotational molding. The machine has a hollow metallic mold shaped like the final water tank. This mold is heated and then filled with powdered plastic.
Heating and Rotation: The Plastic Water Tank Making Machine continuously rotates the mold along two axes while heating it. This spreads the molten plastic evenly on the inner mold surface.
Cooling and Demolding: Once the plastic has melted and coated the mold, the machine cools it down. After cooling, the mold is opened, and the formed plastic water tank is taken out.
Trimming and Finishing: The tank might go through trimming to remove excess plastic from seams or imperfections. Finally, the tank is inspected and ready for use.
Investing in a quality water tank blow molding machine is essential for ensuring efficient and reliable production. Here are some key factors to consider when purchasing one:
Capacity and Output : Determine the desired production capacity of your manufacturing plant and choose a machine that can meet your output requirements. Consider factors such as cycle time, mold size, and number of cavities to maximize productivity.
Technology and Features : Look for machines equipped with advanced technology and features that enhance efficiency, precision, and ease of operation. Features such as automatic parison control, servo-driven systems, and touchscreen interfaces can significantly improve the manufacturing process.
Quality and Durability: Opt for machines built with high-quality materials and components to ensure durability and longevity. A reliable machine will minimize downtime and maintenance costs, maximizing your return on investment.
Cost and Budget : Evaluate the overall cost of the machine, including installation, training, and ongoing operational expenses. While price is important, prioritize value and long-term reliability over initial cost savings.
Manufacturing plastic tanks with a Plastic Water Tank Making Machine requires precision, expertise, and the right equipment. By following the steps outlined in this guide and considering key factors when purchasing a water tank blow molding machine, you can establish a successful business in this industry. With the increasing demand for water storage solutions, producing high-quality plastic water tanks can be a profitable venture for entrepreneurs and manufacturers alike.
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The organization was established in the year 2000 and it has been developing rapidly in the market, under the set direction and backing of Mr. V. K. Sharma who is the owner of this reputed company.
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Plot No. 26-B, Industrial Estate H.S.I.I.D.C., Sec - 31, Faridabad, Haryana - 121003 India
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We are deemed in the business as a noticeable maker and supplier of Syringe & Medical Products, Plastic & Surgical Disposables and Optical Media. These items are produced in accordance with the standards set by the business utilizing quality tried crude material. Accessible in standard particulars, the extent we offer is imperfection free.
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Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.
Trying to understand the pros and cons of starting a plastic water tank manufacturing business?
Here are all of the pros and cons of selling plastic water tank online:
Pros | Description |
---|---|
Rewarding work | Starting a plastic water tank manufacturing business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about. |
Scalable | With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers. |
Meaningful business connections | You never know who you will meet as a plastic water tank manufacturing business. This could be the start of an incredible business opportunity! |
High customer retention rates | Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer. |
Pick & choose the clients you work with | Plastic Water Tank Manufacturing Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients! |
Unlimited income potential | With starting a plastic water tank manufacturing business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make. |
Daily physical activity | Plastic Water Tank Manufacturing Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health. |
Predictable income stream | Your businesses income stream tends to be predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless! |
You can sell your product in various places! | There are various different markets to sell your product, which will help you reach different audiences and revenue streams. |
Simple business model | A plastic water tank manufacturing business has the advantage of a simple business model, which makes launching and building the business more seamless. |
Strong Demand & Relatively Recession Proof | The demand for plastic water tank manufacturing business is increasing year over year and the business is known to be relatively recession proof. |
You can promote and sell your product on Amazon | Although there are some to consider when selling your product on Amazon, there are also a host of benefits. Mainly, Amazon is the world's largest online retailer, so you're bound to tap into new business and reach an entirely new audience. |
Make money while you sleep | The advantage of starting a plastic water tank manufacturing business is that you have the ability to have passive income and make money while you sleep. This is the dream for many entrepreneurs. |
Low maintenance customers | In this industry, customers are known to be very appreciative and low maintenance. This can help with your stress levels and allow you to focus on growing your business. |
Cons | Description |
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Crowded Space | Competition is high when it comes to your plastic water tank manufacturing business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies. |
Motivation of employees | If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees. |
Longer Sales Process | A plastic water tank manufacturing business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers. |
Low margins | The gross margins for your plastic water tank manufacturing business are typically around 30%, which can make it more challenging to incur new expenses and maintain profitability. |
High employee turnover | In the plastic water tank manufacturing business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment. |
Work can be inconsistent | As a plastic water tank manufacturing business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have. |
Lack of benefits | With a plastic water tank manufacturing business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming. |
Isolation | Often times, as a plastic water tank manufacturing business, you typically work alone and do not have much face-to-face interaction with other team members. |
Taxes | As a plastic water tank manufacturing business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it. |
Stressful work | This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments. |
High overhead expenses | With starting a plastic water tank manufacturing business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below. |
You may need to charge sales tax | If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out |
Strict regulations | With any plastic water tank manufacturing business, there are strict rules and regulations as it relates to processing your product. You must follow these regulations specifically, or significant legal issues could occur. |
Complex development process. | The development process for a plastic water tank manufacturing business can be quite complex, which may cause delays and challenges when launching and growing your product. |
Complex maintenance | Your plastic water tank manufacturing business will require a long-term investment due to the need for updates, bug fixes, and security vulnerabilities. It's important that you (or someone on your team) stays on top of this at all times. |
Be prepared to get out of your comfort zone! | Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go! |
You might struggle financially (at first)! | If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation. |
More of a challenge to run your business from home! | Running your business from the comfort of your own home is a big appeal for many entrepreneurs. With a plastic water tank manufacturing business, you are more likely to run your business out of your office or storefront space. |
Minimal physical activity | A big part of starting a plastic water tank manufacturing business is sitting at a desk for the majority of the day starting at your computer. Some may enjoy this, but others may struggle with sitting for the majority of your day without much physical activity. |
Work is not always glamorous | With starting a plastic water tank manufacturing business, you may need to get your hands a little dirty. Although it may seem glamorous from the outside to start this business, the work can require a lot of physical activity and repetition. |
Learning Curve | When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you. |
The job can be demanding | This is one of the major disadvantages starting a plastic water tank manufacturing business. It's important to understand that you may need to make yourself available on a 24/7 basis. |
You may need to relocate | There can be a lot of opportunities that come your way when starting a plastic water tank manufacturing business. Although moving around can be fun and exciting, it can also be physically and emotionally taxing for you and loved ones. |
High liability | Running a plastic water tank manufacturing business involves a lot of liability, which means the cost for insurance premiums may also be high. |
Equipment Breakdowns | Over the years, your equipment can get damaged, break down, and may need repairs which can be expensive. It's important you prepare for these expenses and try to avoid damages/wear & tear as much as possible. |
Answering Phones | The plastic water tank manufacturing business is still considered a traditional business, which means answering phones is a big part of the job. If you or your team miss phone calls, you could be missing out on potential revenue opportunities. If you are unable to attend to your phone throughout the day, it would be in your best interest to hire a call center or an employee dedicated to this. |
The job can be dangerous | Your plastic water tank manufacturing business can have its dangerous moments, which puts you and your employees at risk. It's important to consider all liability and put processes and procedures in place that will prepare you and your team. |
Takes time to see results & make money | Results and revenue do not come overnight with a plastic water tank manufacturing business. Often times, it takes weeks, months or even years for your work to monetize. |
Technical issues can be frustrating | Technical issues are common in this business. If you struggle with the technical side of things, you may want to consider outsourcing this responsibility to save yourself the time and frustration. |
More challenging to earn passive income | It can be more of a challenge to make passive income in this business. Often times, the amount of revenue you bring in is limited by the amount of time you have in the day. |
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Water tanks are containers designed to store and hold water for various purposes, such as residential, commercial, industrial, and agricultural use.
COMMENTS
Here are the steps you need to follow when starting a water tank business: Develop A Business Plan Developing a business plan is an essential step when starting a water tank business. It refers to a written document that'll guide you in running your company. Aside from that, a business plan can help you find finances for your water tank business.
The gross margins for your plastic water tank manufacturing business are typically around 30%, which can make it more challenging to incur new expenses and maintain profitability. High employee turnover. In the plastic water tank manufacturing business, employee turnover is often high, which can be quite costly and time consuming for your business.
Report Overview: IMARC Group's report, titled "Water Tank Manufacturing Plant Project Report 2024: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue" provides a complete roadmap for setting up a water tank manufacturing plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw ...
However for a a plastic water tank manufacturing business you can expect to spend $62 to $60,032 with an average cost of $33,230. ... Retail Business Expenses. If you plan to have a brick & mortar location for your plastic water tank manufacturing business, you must weigh the costs of your rent, as it may be the most expensive part of running ...
The cost for hiring business consultant (including writing business plan) - $2,500. The cost for insurance (general liability, theft, workers' compensation and property casualty) coverage at a total premium - $2,400. The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $50,600.
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x. Plastic Water Tank Manufacturing. Proper water storage is a necessity for a lot of households. Here, a variety of holding tank designs are available. You can take advantage of this need by starting a plastic water tank manufacturing business to meet the demand. As always, you'll need to do in-depth research before launch. xi.
Creating a business plan for a metal tank and reservoir maker is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. ... such as water storage, chemical storage or fuel storage. It might also ...
Titus Mold Manufacturing, Inc. is located in Molder, Missouri. Our company designs and manufactures prototypes and molds for use in casting metals or forming other materials, such as plastics, glass or rubber. Our business operates within the manufacturing industry and is classified under NAICS code 333511 - industrial mold manufacturing.
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Syndicated Analytics' latest report titled "Water Tank Manufacturing Plant: Industry Trends, Project Report, Manufacturing Process, Plant Setup, Machinery, Raw Materials, Investment ...
STEP 2: Form a legal entity. The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation. Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your bottled water business is sued.
• Industry ( Chemical storage tank, Plating tank, Brine tank etc.) • Transportation and Storage of Milk. • Overhead water Storage tank mfg. Considering only the water storage for domestic purpose, it is estimated that by the end of 2008 AD about 65,000 MT of plastic tank equivalent to 11,80,000 pcs of 500 Ltrs. & 1000 ltrs capacity
At $0.0036 per gallon, this comes to $8.87, or $0.444 per cu ft of resin serviced. Sewer. Assuming all the water goes down the sewer with a minimal need for balancing chemicals, at $0.0032 per gallon, this comes to $0.4027 per cu ft of resin serviced. Per cu ft of mixed bed. $1.39 of acid and $1.10 of caustic soda.
Franchise Detail Visit: https://www.iid.org.in/franchise#GroceryShop #KiranaStore #FranchiseBusinessLet's explore what you can expect to gain from this video...
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Heating and Rotation: The Plastic Water Tank Making Machine continuously rotates the mold along two axes while heating it. This spreads the molten plastic evenly on the inner mold surface. Cooling and Demolding: Once the plastic has melted and coated the mold, the machine cools it down. After cooling, the mold is opened, and the formed plastic ...
Articles. Water Storage Tank Manufacturing Plant - Detailed Project Report and Comprehensive Business Plan. Syndicated Analytics' latest report, titled "Water Storage Tank Manufacturing Plant Project Report 2024: Industry Analysis (Market Performance, Segments, Price Analysis, Outlook), Det.
A plastic water tank manufacturing business has the advantage of a simple business model, which makes launching and building the business more seamless. Strong Demand & Relatively Recession Proof. The demand for plastic water tank manufacturing business is increasing year over year and the business is known to be relatively recession proof.
The projected P&L statement for a water distribution company shows how much revenue and profit your business is expected to make in the future. A healthy water distribution company's P&L statement should show: Sales growing at (minimum) or above (better) inflation. Stable (minimum) or expanding (better) profit margins.
Lastly, address any funding needs in the "ask" section of your executive summary. 2. The presentation of the company. As you build your water treatment plant business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.
Syndicated Analytics' latest report titled "Water Tank Manufacturing Plant Project Report: Industry Trends, Manufacturing Process, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue 2023-2028" covers all the aspects including industry performance, key success, and risk factors, manufacturing requirements, project costs, and economics, expected returns on ...
Water Tank Manufacturing Plant Project Report 2024: Manufacturing Process, Raw Materials Requirements, Business Plan. Water tanks are containers designed to store and hold water for various purposes, such as residential, commercial, industrial, and agricultural use.