Starting up an investment this year is a pretty good idea. However, many people are still confused on the right investment to start up. The fear of not being able to meet its completion is a nightmare to most people.
Water is very important to all forms of biodiversity. Starting a pure water producing factory will surely earn you fortunes this year because everyone needs water and it’s affordable. Over millions of sachets are consumed everyday because it’s essential for living. Before you venture into production, I’ll like to give you a rough estimate of what it costs to start up.
1) The first thing you should consider is Land because it’s the first factor of production. Where do you want your factory to be sited? What’s your budget if you want to buy a land? The price of land varies on its location and size. After purchase, you’ll need to build on the land. A rough estimate for both land and building cost is between 4-7 million. This price is an estimate and it’s subject to a decrease or increase depending on your project.
(Tips: Secure your land where there’s a good road network, constant electricity and strong security)
For example, the price of a 300sqm piece of land in Lekki will be higher than a 300sqm land in Ikotun even though these places are in Lagos. If you want a big building of course it’s going to cost more than a small building. Whatever size of building you budget for, make sure it has a general office, then most importantly a water production room, a room for storing production materials, a toilet, and a laboratory for carrying simple tests (to check the alkaline/acidic level of the water and other minor tests that are important).
Ensure your factory has enough space for human movement so as to prevent accidents. Also make sure it’s free from all sort of pollutants. Since you’re producing water, apparently the chief raw material for production will be water too. So ensure you drill a borehole and install an overhead tank and reservoir in case you have problems with your borehole. This would be a smart alternative and a good back up plan.
(If you have your personal house and it’s spacious enough, you may not need to buy land. Just ensure it meets NAFDAC standards)
2) Next step is business registration.
You’ll have to register your new business with two important bodies. Firstly, you’ll register with the Corporate Affairs Commission. It’s simple and cheap to register your business with them. Online registration is also available. Registering your business as limited liability company with the CAC will cost you as between 10,000-100,000. I know a friend that registered her business name with 15,000.
The second registration body is the National Agency for Food and Drug Administration and Control (NAFDAC). This registration is not really easy unlike the CAC registration that’s even available online. NAFDAC has strict rules and before they issue you a number or certificate, you have to meet up with the standards. Once they approve it, it means your water is safe for drinking and you can begin production for the public. NAFDAC does not allow online registration so you’ll have to go to their office to obtain the form.
Read the application requirements first and follow the procedures laid out.This process can take you up to 4 months before you eventually get the certificate. The entire process you cost you an estimate of N300,000. I’ll just give you an advice, it’s much better to register under NAFDAC than to boycott the whole process. If NAFDAC eventually finds out you’ve not been issued a certificate and you’re producing water for the public, they’ll definitely shut the company or even ask you to pay a fine that’s higher than the registration fee initially. Apart from that, if consumers will trust and patronize your products when they see a NAFDAC number on it.
3) Production equipments and materials.
Your definitely need equipments and materials for production of water. You can seek the advice of an experienced person (probably someone that have an idea on pure water production). Work within your budget and buy the ones you can afford. Renting equipments is also okay. Here are the things you need to start your sachet pure water business in 2021.
1) 20 KVA generator (800,000- 1.2 million)
2) Delivery truck or any kind of delivery service. People most use the Mitsubishi Cantar and it costs 1.2 million)
3) Nylon sachets with the name of your company printed on it (N470/kg)
4) Packaging bags (N3,200 per bundle)
5) Water Micron filters (N300 per one)
6) Micron filter casing (N3,500 per one)
7) Treatment materials- activated charcoal, Hydrolytes, Brim, Calcite, sand, gravel. (N64,000)
8) Overalls, crocs, disposable hand gloves and hair nets (8,000)
9) Borehole system (100,000)1
10) Pumps, valves and pipes (150,000)
11) UV sterilizing unit -55 Watts (23,000)
12) Automatic sealing machine (N650,000)
13) Ozone generator (N450,000)
14) 2 Overhead tanks (N40,000)
15) Water filtration unit and treatment (N300,000)
16) Diesel (litre price is subject to change)
17) Fuel (litre price is subject to change)
18) Drums & buckets (N400 per one)
19) Soap and other cleaning agents (N1000)
3) Employees and Salary margin
This is also an important aspect that can’t be overlooked. Human resources are the engine that drives the whole production process. Before you employ anyone please to a background check, medical tests and some personal information about them. Provide them with necessary training so as to maximize production.
1) 2 or more machine operators depending on your budget ( N15,000 and above)
2) Marketing personnel (N15,000 and above)
3) Quality control (N20,000 and above)
4) 2 Cleaners (10,000 and above)
5) Driver- the amount of drivers you’ll employ is dependent on how many delivery trucks you have (N20,000)
6) 2 or more Motor boys (10,000)
7) Security man (15,000)
