How to Start a Water Delivery Business

Start a water delivery business by following these 10 steps:

1. Plan your Water Delivery Business
2. Form your Water Delivery Business into a Legal Entity
3. Register your Water Delivery Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Water Delivery Business
6. Get the Necessary Permits & Licenses for your Water Delivery Business
7. Get Water Delivery Business Insurance
8. Define your Water Delivery Business Brand
9. Create your Water Delivery Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your water delivery 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.

STEP 1: Plan your business

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:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

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 Water Delivery 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:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a water delivery business?

Costs will range, depending on the size and scope of the operation you are starting.


For most water delivery businesses, they start small as a subsidiary of a larger water bottling corporation. You will need to buy in to a water distributor, much like other franchised businesses.These costs can vary but are usually reasonable for entrepreneurs just starting out, as it is in the water company’s best interest to have as many smaller delivery businesses distributing their product. You will also need to:

• Purchase a business license and insurance
• Buy or lease a couple delivery trucks or vans
• rent a storage space for inventory
• initial advertisement and marketing blitz to build an name and, ultimately, a reputation

What are the ongoing expenses for a water delivery business?


Moving forward, your operational costs will include fleet maintenance, rental costs for business or storage space, employee salaries, and repair and replacement of water coolers.

Who is the target market?

Typically, the target market will split between commercial operations, such as retail businesses, restaurants and cafes, office buildings and complexes and businesses with laborers working in outside or hot conditions or residential customers who prefer bottled water to other residential options. All of these customers have the same needs in common though, as they want fresh, clean water to be available 24/7.

How does a water delivery business make money?


Customers buy monthly shipments of water, rent or buy water coolers and dispersion devices, and place special orders for water for one-off parties, large gatherings, and celebrations, such as weddings or corporate seminars.

How much can you charge customers?

Water is not incredibly expensive, so your earning comes from the contracts you’re able to agree upon with customers. Annual contracts for delivery ensure your business will garner revenue monthly. Typically, a business will want three to six 5 gallon bottles per month, depending on the size of their business. This will average around about $50 per monthly delivery. Larger businesses will want more accordingly and you may want to develop a sliding scale of employee/water ratios, with pricing in the favor of the customer, as the orders become larger. As mentioned previously, make sure you research what other delivery companies are charging and look to align with those figures.

How much profit can a water delivery business make?

Bottled water, as an industry, is more and more lucrative, especially considering the low overhead costs of extracting and bottling a natural resource. On average, the bottled water industry is making billions of dollars annually and is one of the fastest growing divisions of the beverage industry in the world. This is good news for water delivery businesses. A successful, medium sized delivery service will see annual profits in the $85,000 - 150,000 range.

How can you make your business more profitable?

When looking to expand your business, think outside the box, or jug, as it is. Promote the idea of a greener option; move away from the individual-sized water bottles and move customers towards the 5 gallon, refillable bottles. More and more customers are starting to realize the multitude of benefits from reducing plastic waste and reusing the larger containers. You may also want to promote the water cooler rental and purchase options more strongly. Water coolers aren’t just for office buildings anymore. Finally, consider offering the options of personalizing the labels on water bottles, large jugs and even water coolers. With today’s wrap services, virtually any logo or design can be placed on these products.

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 water delivery business is sued.

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.

STEP 3: Register for taxes

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!

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.

STEP 4: Open a business bank account & credit card

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.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

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.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a water delivery business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Certificate of Occupancy

A water delivery business is generally run out of a warehouse in which the water is stored. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a water delivery business business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or build a location:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your water delivery business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

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.

Is this Business Right For You?


Virtually anyone can break into this industry, as the product almost always sells itself. If you are able to easily talk with customers, have the ability to lift heavy weights and can drive commercial trucks, you are exactly what this industry is looking for. Additionally, having retail or small business experience will give you a leg up on the competition.

What happens during a typical day at a water delivery business?

As the name implies, most of the day to day activities focus on water deliveries. Whether residential or commercial, you will be meeting customers and re-stocking their water supplies.

In addition, you will:

• restock your own inventory
• repair or replace customer water coolers
• communicate and network with your water distribution parent company
• develop marketing and advertising strategies
• train new employees for working in the field or in the office

What are some skills and experiences that will help you build a successful water delivery business?

Much of the business of water delivery revolves around interactions with the customers. If you are comfortable talking to different individuals on a day to day basis, often in person or over the phone, you will enjoy the business. One must also be able to manage a small or growing business and be able to physically load and deliver some of the water bottles, at least initially, while starting up your business.

What is the growth potential for a water delivery business?

Clean water is quickly becoming an increasingly valuable commodity, with need and availability always driving prices higher. Therefore, the growth potential is quite expansive. There is always a danger of over saturation in a market but, since water is vital to survival, this seems unlikely in the near future.