How to Start a Water Treatment Business

Water treatment can be a lucrative, recession-resistant business.

Operating a water treatment business can be a lucrative way to improve the health and quality of life of consumers in your market. The residential water treatment market is a multibillion dollar industry that has grown and diversified over the years, as water softeners, reverse osmosis systems and carbon filters became common fixtures in American homes. Operating a water treatment business presents some unique challenges. Vendor relationships, local water conditions and your level of training can all determine the success of your business.

Difficulty:

Moderately Challenging

Instructions

1. Decide if you want to operate as a franchise or as an independent. If you are interested in a turn-key water treatment business with plenty of support, you may want to consider purchasing a franchise. Companies such as Culligan, EcoWater, Kinetico and Rainsoft offer water treatment dealership franchises. Franchises offer proven business models, financing, marketing and technical support, among other services. You will be required to sell the franchisor's brand of equipment and adhere to certain operational guidelines. If you want more freedom and flexibility, you may choose to operate as an independent dealer. Even as an independent dealer, you can expect vendors to offer you technical training and, in some cases, marketing support.

2. Understand the water conditions in your market. Find out if the water is abnormally hard and if residents are on wells or are served by municipal water. The answers to these questions can have a tremendous influence on how you operate your business. For example, residential wells can be affected by any number of contaminants, such as harness, iron, arsenic, bacteria and more, which gives you more opportunity to sell equipment. Municipal water systems must adhere to the Safe Drinking Water Act, which may limit your market to softeners and other equipment designed to improve taste, such as carbon filters and reverse osmosis systems.

3. Partner with vendors. If you have decided to operate a franchise, you will purchase most of your equipment from the franchisor. If you will run your business as an independent dealership, you can purchase your equipment from any vendor you choose. Web sites such as WaterTechOnline have a comprehensive list of vendors, separated by equipment type. When selecting a vendor, consider the potential markup on the equipment, its reputation, whether it is certified (NSF, UL and Water Quality Association are three main certification bodies) and how much technical and marketing support the vendor can provide. For larger-ticket items, such as softeners, find out if the vendor offers a financing program for consumers.

4. Join industry trade groups, such as the Water Quality Association, which provides networking and training opportunities. There are also free trade magazines, such as Water Technology magazine and Water Conditioning & Purification magazine. Each water treatment scenario is a little different, and you want to be able to handle any and all business that comes your way.

References

• Water Conditioning & Purification Magazine
• Water Technology Magazine
• Water Quality Association