There are a plenty of business opportunities iron metal offers entrepreneurs. All of them are worth investment. This topic exposes you to the checklist you require to start a business selling iron angle bars, sheets, etc. to your local welders and fabricators. These materials are further used by them for making window grills, frames, railings etc for domestic and commercial establishments. Here is a list of things you require for starting an iron business.
1. You need a business plan
You need a business plan, in fact, a killer one, which backs your actions on ground. It shouldn’t be only written with an aim for attracting bankers to fund your business but also should back you in situations which might prove dangerous to your business. Everything essential for your iron business should be neatly contained in your business plan.
2. Register your business
Why should you register your iron business is simply to avoid any legal issue. We have seen many businesses got trapped into the legal problems and got slapped with a hefty amount of fine just because they didn’t realize the value of business registration aspect.
So, since we care about our visitors, we advise you to avoid committing such silly mistake. In fact, do visit the local registrar with original and printed copies of your ID proof, Adress proof etc. The concerned official will hand over an application form to you and fill it carefully.
It might take around 7-20 days to get your license. In addition, you will need to obtain a VAT number from your city’s tax department and get a current account opened in your local bank.
3. What is the ideal location to set up your business?
Visibility of your iron business is like saving a lot of extra pennies that would otherwise go for advertising. Try as much as you can to find and rent a visible location, preferably on a roadside. Note that the rented location should have a sufficient parking space so that vehicle drivers enjoy hassle-free dropping and loading of iron supplies.
Build a tin shed in the required dimensions with proper shelves to stock your iron supplies in case there is no pre-built shop on the rented land.
4. How much and where to get your investment?
Larger the capacity, bigger the investment. When calculating your required startup costs, do take into account factors like rent, shed making, salaries for labor, utilities and the quantity of iron material to be bought for selling.
The better way to arrange the required budget is to apply for a business loan from your local bank. In India, you have various government schemes available to fund your startup business as well.
5. How to buy your iron supplies?
Nowadays, the internet has made it a lot easier for us to do anything we want anywhere. You can search for reliable iron supplies vendors online. Make a list of top 20 best vendors based on several criteria such a market reputation, quality, service level agreement etc. Send your requirements to each vendor and wait for a day or two for their quotation.
Pick and contact the vendor who passes your vendor criteria list and hence procure your iron supplies. You will also need a weighing machine that you will use before sending the material to your target welders and fabricators.
6. How to advertise your business?
Post-establishment of your iron business, one of the best promotional strategies to lure the target welders and fabricators towards your shop is to organise a grand opening party on your inauguration day, advised one of the already established iron business owners.
Pre-inauguration, make business cards that feature your name and contact details and then distribute them to welders and fabricators, he added.
Moreover, make and place a tin board on the front side of your shop. You may also want to have a look on our article how to start a steel business published by us earlier.