How To Start a Paper Cup Making Business

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If you are an eco-minded person who would like to own an environment-friendly related business, consider opening a paper cup making business.

Today is the most opportunistic time for you to set up a paper cup making plant given the initiative of phasing out the use of plastic based products amid concern over pollution and promoting the use of paper cups as one of the best alternatives to lower down the extremely negative impact on the environment by most countries.

This initiative of most governments has lead to the ever-increasing demand for paper cups in tea stalls, coffee shops, marriage parties, hotels, restaurants, travel etc over recent years.

Pros of Paper cup Making Business

There are more pros than cons to starting a paper cup making business. Here is a list of advantages you are bound to enjoy in this business:

  • Growing market demand
  • Requires an affordable capital investment
  • Easy availability of capital and government support
  • Does not demand you any special academic qualification
  • Doesn’t involve much labor
  • Requires less infrastructure
  • Gives you higher returns on investment
  • Very low overheads

Let’s now walk you through the steps that will help you in getting started with your own paper cup making business:

1. Create a business plan

Most online publications fail to tell you that you should compose a business plan. However, in contrast,  we want that you should not overlook this important aspect at any cost because of the fact that a business plan will allow you have more control and help you in running your business smoothly.

Writing a business plan today will help you stand firm and act positively against uncertainties that may arise tomorrow.

2. Get your business registered

The reason that it is important to register your paper cup business is none other than proving your legitimacy both in the eyes of law of land and potential customers. You may incorporate your business either as a one-man business ( proprietorship ) or as a partnership. Since you would be involved in the manufacturing of products, applying for a VAT ( Value Added Tax ) number becomes mandatory for you.

You need to obtain a trade license from your local government registrar and also open a current account in your nearby bank. What should you do when you approach the registrar for getting your business license and bank for opening a current account is to keep ready following documents:

  • ID proof photostat copy such as PAN card, Adhar card ( In India ) or voter ID card.
  • Adress proof such as Voter card, Passport or utility bills.
  • Business address proof such as electricity bills or telephone
  • Passport size photographs
3. Rent an ideal space

It is great if you can find a space in your local industrial area for constructing your paper cup plant. Minimum land that is required to set up your building and plant should span for 500 square meters. In addition what you need to consider is that the chosen place should be accessible to the transport for dropping raw materials and shipping finished paper cups to the target market.

4. Obtain the required investment

Based on the scale of production you would want to handle, estimate the money required for machinery, raw materials, space rent and other expenses such electricity, labor wages, utilities involved. Generally, you will require somewhere around $15000 for buying the machinery and raw materials and around $20000 as working capital.

You may like to apply for a loan in your nearest bank in case your own funds aren’t sufficient enough to afford such investment. Don’t forget to take the necessary documents with you.

5. Buy paper cup machinery

There are many reliable brands that manufacture and sell paper cup machines. Consider several things such as the popularity of manufacturer in the market, warranty etc, however, don’t compromise with the quality of machinery.

6. Hire required labor

Labor that you require to employ in your paper cup manufacturing is fortunately very less. You need just two-four persons to perform production process, however, keeping a sales cum production manager is advantageous for your business.

Tip: Hire the best people who can ensure efficiency as well as higher production. However, pay them salaries on time and furthermore in order to boost their morale, provide them incentives with time.

7. Spread awareness

Plan some budget for placing and running an ad in the local newspaper or cable network for at least a month to spread awareness about your business.