RUNNING HEAD: Business Plan 1

Business Plan

Students Name

University/College
Business Plan 2

Costs for establishing a water bottling company in New Zealand

Sunk cost

Factory

Building cost at $900 per Sq. ft. totals an average $600,000 - $1 million.

http://www.buildingguide.co.nz/planning/building-costs/

The factor

Land

Commercial land at an average $200,000 500,000 The size should be about 3000 Sft.

http://www.buildingguide.co.nz/planning/building-costs/

Machinery

Machinery required include bottle filler, bottle blowing unit, water treatment machine, ink jet

coder and pouch pouch packing machine

It will require about $20000 - 100000.

http://www.alibaba.com/product-detail/AutomaticPET-glass-strong-bottled-strong-

strong_914083388.html?spm=a2700.7906341.35.1.SUZf9F

http://www.alibaba.com/product-detail/8000-36000BPH-strong-Mineral-strong-

strong_60482734803.html?spm=a2700.7906341.35.1.EbY0W7&s=p
Business Plan 3

Marketing

It will cost about $50,000 initially, but the amount will reduce as the brand becomes popular and

more competitive to about $30,000 - $20,000 annually

https://www.marketing.org.nz/

Product Design

It will cost $20,000. This will entail employing a designer or an individual skilled in computer

automated design.

http://procreate.co.nz/product-design-development/

Variable cost

Water (production cost per litre)

The average cost is $0.12

http://mineralwaterprojectinformation.org/

Bottle (plastic and glass)

A plastic bottle costs $0.2 while a glass bottle will cost $0.6

http://mineralwaterprojectinformation.org/
Business Plan 4

Bottle cap

The average cost is $0.02

http://www.alibaba.com/product-detail/ALL-KINDS-OF-PLASTIC-strong-

BOTTLE_516578445.html?spm=a2700.7906341.35.1.DnJ8mL

Label (plastic and paper)

The average cost is $0.20 The cost will be minimized by using a labeling machine.

http://www.alibaba.com/product-detail/Direct-Wholesale-rubber-strong-label-strong-

_60313995854.html?spm=a2700.7906341.35.1.ZleqQ0&s=p

Boxes

The average cost is $0.20 - $0.4

http://www.alibaba.com/product-detail/custom-made-hard-gift-strong-

box_1448619506.html?spm=a2700.7906341.35.1.lg4biX&s=p

Storage

The average cost is $0.90

http://kapitiselfstorage.co.nz/?gclid=CjwKEAjwz4u9BRCbioK3stnBznESJADA75xbGHyLIm0

m0DP5gTB2UzJ6-qKS11_XoMgKmE4khd6BPxoCelnw_wcB
Business Plan 5

Logistic

The average cost is $0.20

http://www.cardinallogistics.co.nz/

Labor

The average cost is $0.30

http://www.stats.govt.nz/browse_for_stats/economic_indicators/prices_indexes/labour-cost-

index-all-labour-costsinfo-releases.aspx

Power

The average cost is $0.10

http://www.numbeo.com/cost-of-living/city_result.jsp?country=New+Zealand&city=Auckland

Compliance cost

The average cost is $3

http://www.numbeo.com/cost-of-living/city_result.jsp?country=New+Zealand&city=Auckland

Water testing

The average cost is $0.15

Business Plan 6

http://www.aqualab.co.nz/

Legal cost

The average cost is $0.90

https://www.lawsociety.org.nz/for-the-community/how-can-we-help-you/how-much-will-it-cost

Other over heads

The average cost is $0.60

http://mineralwaterprojectinformation.org/

Financial Cost

Capital cost

Capital cost is about 20million

http://www.beca.com/projects/water/water_wastes/kapuni_water_treatment_plant.aspx

Funding cost

The funding cost is about $10 million

http://bullerdc.govt.nz/westport-water-upgrade
Business Plan 7

Opportunity cost

The opportunity cost is $5 million

http://bullerdc.govt.nz/westport-water-upgrade