The popular phase ‘A pen is mightier than a sword, means that the power of pen that refers to education which is worthy than even a sword which can kill indefinite people and thereby represents the true power of pen. In the present article, we wish to say that manufacturing of pen is more beneficial than manufacturing of sword as the need of pen is more in the present world. Now, let’s see how we can make money from pen manufacturing business.
A guide to make money with pen manufacturing business
It would be very difficult to imagine a world without pen and thus there is continuous demand for pen and related products and it is also growing day by day as more kids are following the track of elementary education. While global brands do produce pens in a huge volume, but local brands operate at lesser volume by manufacturing less number of cheap pens to meet the local demands.
Pen manufacturing as a business to make huge money
You may have only seen a pen as an element for writing but it can also be a descent source of revenue if you begin to manufacture and sell them in market. With a very small capital and little area you can initiate your own pen manufacturing unit and gain proper returns from it.
The below mentioned steps shall guide you in beginning your own business. But before that it is also important to look into the advantages and disadvantages of pen manufacturing business. It is always sensible to be well aware of all the facts of a business before starting anything.
Knowing what would be the end result
New thought-provoking business ideas always fascinates new entrepreneurs and often they act without analysing the end results. Thus, before you start the pen manufacturing business it is suggested to know what would be the end consequence.
The end result basically means the gains after investment that you have done initially. To have an idea of the end result you must research on the business and its specific details. Here are we listed out few ways to analyse your market.
- Research properly regarding the pen industry in your city, state and country.
- Know the worth of your industry
- Get the information regarding the potential competitor in case you prefer to enter the market
- Know about the funding options available which are needed to initiate your business and whether you can meet the expenses or not
- Know about the estimated capital investment
- Lastly, how much return will you get by investing in the business
The above process is also popular as feasibility analysis which one can perform by himself by thorough research of the market, meeting people those are involved in the business or by appointing few people or a third party firm that does feasibility analysis for its customers.
Create a detailed business plan
A business plan refers to the steps one takes to incorporate any business, with the details of the investment strategies, resources required, required man power, risks and failures, return on investment, etc. A business plan also aids to draw the attention of the investors and to avail loan for your business. It also helps you in beginning your business and keeps you on steady pace.
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How to start a pen manufactring business to make good money?
Let us briefly understand how to start your business. To start your pen manufacturing business you must do the following things.
- Raw materials required to manufacture pen
- Machines essential to manufacture pen
- Location and space availability to setup your manufacturing unit
- Savings or Capital to purchase raw materials and for lease/ rental space for business
- Human resource for operations and pen manufacturing professionals
- Advertising provisions in order to reach the market to sell the products
- Monitoring the business and gains on investment
Raw materials to manufacture a pen
There are few raw materials that are needed in order to develop a pen in a manufacturing unit. Here are few of them:
Barrel: The barrel is the major body of a pen and it is the cavity for filling ink. Nowadays, pens majorly have refills in it therefore the barrel part is left empty in order to add the refill into it.
Metal Tip: A metal tip is the essential end of a pen from where the ink flows and which rests on the paper in order for writing purpose. A metal tip must be of good quality and standard to confirm its smoothness. The metal tip is linked with the refill or the barrel to ease in the flow of ink.
Plastic Adapter: It is the connection that lies between the metal tip and the barrel and hold them together which is made of plastic.
The Cap: A pen cap is the most basic part of any pen. It secures the metal tip makes sure there is no leakage of ink from the tip.
Ink: Ink is the liquid which is filled in the pen to make the scribes on the metal sheet viewable. Ink is very essential part of any pen and it is crucial to meet the quality and standards. Ink is available in various colors like black, blue, and green or red.
One can purchase these materials in bulk or can produce some of them on their own. You can buy pen ink in large quantities that is in liters and can use it for filling of the refills of pen. Barrel, plastic cap and adapter can be produced by using standard plastic. For this you require plastic or recycled plastic. You can buy the required machines which are important to produce these materials.
Machines required for pen manufacuring
Not only the raw materials must you have few machines that are used for manufacturing. They are:
Punching Machine: This device is for punching the plastic adapter to the barrel from one end.
Stamping Machine: Stamping Machine is for printing the name of your firm on the body of the plate for branding and promotion. This step can be ignored if you are not interested to promote your pen whereas you are delivering pens in bulk to some other company who will advertise their name and promote for various purposes.
Ink Filling Machine: The machine is used to fill ink in the refill or the barrel. Ink should be filled with care while making the other end blocked. One should be cautious as there should not be any air in the barrel and between the inks as it will affect the ink flow.
Centrifuging Machine: This machine is used to replace the air gaps between the metal tip and the barrel. It aids in removal of the air in between the inks to make sure you have better writing experience due to smooth flow of ink.
Drilled Nozzle Plate: It is used to fix the metal tip into the barrel or the refill.
You may also require machines to manufacture the body of pen like the metal tip, barrel, the cap, etc. if you need or may directly buy such materials in bulk for feasibility.
For simple use and throw pens manufacturing you can get the machine cost ranging from Rs. 16,000 to 40,000.
Space to setup your manufacturing unit
If you are planning for small scale unit then one room is sufficient for you which can operated in your own house. It will save much money which may be futile while renting space. If you feel it essential then you may lease a space as well.
Capital investment or cost to start a pen manufacturing business
On the basis of the business plan and feasibility analysis report and it is now clear that you have the idea of the approximations related to capital investment that is needed to start your business. The cost of labor, skilled technicians, specialists, rented space, employees in office, registering as tax entity, raw material cost, machine cost and miscellaneous expenses.
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To brief you it is not needed to spend a high capital for your business but just some thousand rupees. You can minimise it by taking required steps like beginning your business an area nearby your home preferably owned by you. Doing the monitoring and accounting work be self. Appointing man power who are multitalented and experienced in this work of manufacturing pens previously.
Market for your Business
In order to sell your manufactured product it is crucial to create or discover a market. You have to meet those many shopkeepers and distributors who have some contract with stationary business. You may also begin your own retail shop for selling pens for an increased the profit margin. You may also make some sort of deal or contract with some businesses or firms who could purchase pens from you and then brand it with their organization name to distribute it within their organization or to their clients.
Managing your business and return on investment
Managing your business is a very significant aspect in order to get wonderful results. From organizing every item in setting up your business and to recruiting your employees. All needs a lot of hard work and time. Managing your business with effectiveness will upsurge the profit margin and will impart you good returns.
The initial months of your income would be spent on the capital and resources you have put and only after that you will receive any returns.
Lastly, in for running a successful business, proper planning is very essential followed by its timely execution. Always remain on your toes at least during the initial stages as a small error may lead big damage to your business. In this competitive and trending market, by following it regularly with your smartness you could sustain your business.
Conclusion to make money from pen manufacturing business in India
For the huge population and increasing demand for education, it is very much profitable and one can make easy money with pen manufacturing business unit. You may be interested in Earn Money from Saffron Farming.