4 MAJOR CHALLENGES PURE WATER AND TABLE WATER BUSINESSES ARE FACING IN NIGERIA

4 MAJOR CHALLENGES PURE WATER AND TABLE WATER BUSINESSES ARE FACING IN NIGERIA

My Name is Ishola Precious I am writing this regarding the establishment of a Table Water business in Nigeria under the strict regulations of the National Agency for Food and Drug Administration and Control (NAFDAC)

4 MAJOR CHALLENGES PURE WATER AND TABLE WATER BUSINESSES ARE FACING IN NIGERIA

 I am writing this to guide prospective investors in this business against mistakes common in the start-up of a typical Table Water business in Nigeria.
Over the years, I have realised that many people are looking for a good business to invest in and once they hear about the ‘pure water’ business, they rush in with little or no information about the business. This had caused a lot  business failure and liquidation within the industry as many people would end up rushing out the way they rushed in.

From experience, victims of these business failure are majorly Nigerians who have zero or little knowledge about the business,  most rush into the business with a myopic mindset that the business is a simple as bagging water and selling and because they have the money, they just engage a consultant or be the consultant themselves and the rest becomes story.

Most investors will not employ the right consultant who has a sound knowledge about the business, while some will be the ‘Alpha and Omega of it all’, this has caused a lot of issues. The sincere truth is, It is not everybody that can run a table water production business. This was what informed me to develop this piece to reveal the mistakes you might make in this business. I believe it is better for you to know what’s involved so that you can know whether you have what it takes to run this business.

4 MAJOR CHALLENGES PURE WATER AND TABLE WATER BUSINESSES ARE FACING IN NIGERIA

MISTAKES IN THE BUSINESS

#1
You can never run a Table Water Production Business at loss because water is a free gift of nature
If someone has told you that You can never run a Table Water Production Business at loss because water is a free gift of nature, or you just developed that belief yourself, I beg to disappoint you by saying it’s a Big Mistake.

This is the part that many Consultants would not tell you because they are after luring you into the business and make their money, thereafter leaving you to be managing your problems. This is why many Table Water businesses most especially those producing only sachet fail. In fact Statistic has it that, on the average, NAFDAC registers 3000 new table water products (New Companies) every year and it will also surprise you that more than 2000 companies close down business every year in Nigeria, most especially, within the first 2years of operation.

Is this not disturbing?

Yes it is actually disturbing! Indeed it is disturbing to know that the business you want to start is susceptible to such a business continuity challenge.
But despite this challenge, many water factories are doing well. The difference between those that are doing well and those that are closing down is how they started. Simply put, the failed ones started wrong. Therefore if you make this kind of mistake, you’ll be making a big error.
Just like every other business, you can run at loss if proper management and controls are not put in place. I quite agree with you that water is a free gift of nature, it is of important to note that you need to package your water in some kind of packaging material. This constitute the material cost.

4 MAJOR CHALLENGES PURE WATER AND TABLE WATER BUSINESSES ARE FACING IN NIGERIA

Most importantly you need a very good filtration system as it is the major lifeline of your business, this filtration systems and maintenance can be categorized under your production cost.

Moreso, you need the services of people who will work in the factory to operate the machine and pack. Payment for these services and others constitute the labour cost.
After production, you need to take it out to the buyers and you will use a delivery van for this. The cost of maintaining the delivery van as well as payment for the service of the sales team make the selling and distribution cost.

In a big or medium scale venture, there may be need for administrative staffs and some other costs incidental to production and distribution, all these cost items are to be planned for. so the business is not just a magic money tree where you just rake in money anyhow as many people has made it look.

#2
Anybody can do the business and make huge profit from the first year of production
Please get me right, Not anybody can do this business successfully! Don’t be scared, find out why I said so.
If you can not manage this business by yourself and you cannot employ adequate controls to manage the business, If you cannot wait patiently to understand the sales and growth pattern of this business in your environment and work with it, if you are not the vision carrier or have a great passion for the business, if you cannot invest substantially enough capital for smooth take off, and mostly if you cannot learn before you start, then I put it to you this business is not for you.

 #3
once the business is running no more challenges.

This is one of the biggest mistake in this business, constant maintenance and quality control is very important so as to maintain your standard and improve sales. Your filtration system must be checked periodically and perfect hygiene must be maintained in the factory always to avoid uninvited element in the system.

4 MAJOR CHALLENGES PURE WATER AND TABLE WATER BUSINESSES ARE FACING IN NIGERIA

 #4
NAFDAC registration is very expensive and difficult to do.
Even though I am neither a NAFDAC spokesperson nor its representative, I can tell you NAFDAC registration is not difficult nor expensive. Even NAFDAC encourages producers to do the registration by themselves.

These and many more are the mistakes  most investors make and some consultants tell you  just to lure you into the business, they make their money and leave you to face the music.
Do not get me wrong, I am not saying Pure Water business is not good. All I’m saying is you need to learn about it. It is just like any other business. You need to carry out your feasibility study to get it right.

The major cost factor in the table water business is the cost of the packaging materials and maintenance of filtration system.
It is very profitable if you do it the right way.
It has a high rate of staff turnover.
It is capital Intensive. If you must make good money, You must Invest good money

Read Also: Pure Water Business  Plan Nigeria

WHAT YOU NEED TO KNOW BEFORE GETTING STARTED

1. Business registration: You need to register your business name. whether a business venture or a limited corporate entity.

2. Trademark registration: After registering your business name, then you need a trademark. Trademark is the Product registration.
Factory Building: Most advisable to build a new business structure for the factory but if you want to operate a low budget, you can use an existing building.

3. Source of Water: There are some sources of water accepted by the NAFDAC. But the most often used in Nigeria is the underground water popularly referred to as borehole.

4 MAJOR CHALLENGES PURE WATER AND TABLE WATER BUSINESSES ARE FACING IN NIGERIA

Patience in the business cause a lot need to be put in place to achieve optimal result.

Good staff relation and motivation this is because your workers to a very large extent will determine if your business will survive.

THANKS.

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4 MAJOR CHALLENGES PURE WATER AND TABLE WATER BUSINESSES ARE FACING IN NIGERIA

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