If you are an eco-minded person and think you can help the environment, then you may consider opening a paper cup making business in your locality.
The initiative of prohibiting the manufacture as well as the use of plastic based products by most countries has led to an ever-increasing demand for paper cups in tea stalls, coffee shops, marriage parties, hotels, restaurants, travel, etc over recent years.
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
Here’s now a step by step comprehensive article to help you start your own paper cup manufacturing business:
1. Business plan
Firstly, write and follow a good business plan. Be in constant touch with your business plan and never make any decision without referring to it.
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.
- Address 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 as 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
Since many brands manufacture and provide machines for making paper cups, you will need to choose a reliable company. How popular the supplier is in the market, what is the warranty provided and other things need to be kept in mind by you when you buy a paper cup machine.
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 the 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.