Introduction to how to start paper cup business
Paper cup business is a simple and rewarding business, where you can earn more profits. It is possible to start in both small scale and large scale, but the cost or investment varies depending upon the unit size and the production output as per your desire. The paper cup is a disposable product, with many benefits of usage. It can hold both hot and cold liquids for a longer period. It is non-toxic and the designs on the surface of it give an attractive and inviting look as per the occasion. But most of the time the companies print their logos and names outside the cups for business promotion. But uniquely you can offer them printing their details as per the occasion with different color combinations, which can be a point to increase your business in terms of money-earning. Nowadays the paper cup business is receiving huge popularity all around India as the population increases the celebrations increase and there is a demand for this product.
Below are the details where you can start with the paper cup manufacturing business.
Paper cup manufacturing business plan
If you are willing to start a cup manufacturing business you should create a paper cup manufacturing business plan. As soon as you determine to start manufacturing, it’s a nice idea to have thorough local market research as it is so essential to identify demand and local market opportunity too.
This guides you in purchasing the ideal machine to make the most challenging products and receive speedy orders. It’s a must to have an exemplified business report that must comprise aspects like a target market, financial considerations, and market strategy.
If you are in a fix to understand how to start a paper cup business, we have clearly explained the paper cup manufacturing steps for initiating a paper cup business.
Paper cup manufacturing process
The general arrangement of the paper cup manufacturing business is sectioned up to 3 phases.
They are:
The first stage: It comprises the steps involved in the preparation of side-wall and moving them to the next phase after shaping.
Second stage: transmission of the cup-bottom paper, forming cup joining the shaped side-wall and cup automatic transmission and releasing of this shaped cup, and curling the shaped cup edge.
Third stage: It majorly comprises 45-degree angle dividing, curling bottom, preheating, curling rim, and so on mechanics, which are the vital parts in completing the paper cup.
License required for paper cup business
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While beginning a paper cup manufacturing you should check for a license needed for paper cup business. Here you can check out a list of licenses needed for paper cup business.
General business license:Â Usually every business needs a general business license to operate a company in any city or country. So in case you have the idea to begin paper cup making then you must have got a general business license.
Doing business as license:Â If you are planning for setting your company under a fictitious business name (DBA: Doing business as) state you should register your business name.
Sales tax license: If your firm sells goods, either online or offline, along with your condition you must collect sales tax, then you should obtain a business permit generally called a sales tax permit or a seller’s permit.
Zoning permit:Â Neighbourhood zoning permit is applied where particular kinds of companies can and cannot operate. You should prepare an application for a variance or a conditional-use license if space, where you are interested to operate your business, which is not zoned for your kind of business.
Home occupation permit:Â A home occupation permit is for home-based businesses. If you wish to operate your business from home, it is important to verify if the home occupation is permitted or not in your county or city.
Professional or occupational licenses:Â Paper cup manufacturing business sometimes needs particular professional or occupational licenses; the types of companies or businesses will change from state to state.
Health permits:Â Paper cup manufacturing business needs the handling and preparation of food thus it needs health permits.
Permission from the fire department: Paper cup Service Business need consent or a review from the regional fire department. Since it uses flammable substances, and many people are present in one location.
Environmental permits:Â For paper cup manufacturing, the operations result from the discharge of an environmental contaminant to the atmosphere or the water bodies, so it is mandatory to acquire the special permit from exclusive pollution control from state and local governments.
Sign permits:Â Many local governments have rules that need that business should have a license before approving up a signature.
Building or construction license:Â If you are making any alterations in the future to the present location where the operations of paper cup business are held, then it is necessary to acquire a construction permit from your local authorities as per your state law.
Area required for paper cup business
You require an area of 200 to 500 sq. ft. for establishing your paper cup manufacturing business. Therefore, if you have the needed space in your home, you can start the company in your house itself, or else you must avail the place by rent or lease another place for some period. You should ensure the place must have access to the road for transportation purposes.
Paper cup manufacturing machine
Once you have determined to begin a paper cup making business you must look for a paper cup manufacturing machine. In the starting only, it is greatly recommended to have a project report for the paper cup manufacturing business ahead. The establishment of a paper cup making unit can be done in two methods. One is by the semi-automatic process and another one through the fully-automatic process.
According to your chosen quality and manufacturing yield, you must select the machinery. Deciding the proper machinery is a very vital element for any manufacturing unit. Establishing machinery which is not in your requirements is disastrous for any manufacturing business. For a fully-automatic operation, you can arrange an automatic paper cup forming machine.
Before you have the purchase order, figure out the guarantee period, testimonials, and after-sale service provision of the machine providing company. Apart from the main machine, the paper cup business needs packaging and counting machines as well.
Paper cup manufacturing process
The paper cup manufacturing process comprises three different stages and their operations. At stage one, develop the sidewall of the cups, and then it’s a shape. Next, prepare the cup bottom and add it with the prior item. The third step is a major one and it includes 45° angle separating, curling bottom, preheating, curling rim, and so on the mechanics, which would be the most important parts in completing the paper cup.
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You have to maintain the quality control procedures as well in the cup business. You must use a food-grade paper that is sterile. Moreover, you must follow the BIS regulations if you provide the ISI mark on your cups. In most cases, paper cups are developed in line with the customer’s specifications.
Expenditure for paper cup making business
Fixed cost
Land and building rent = Rs. 10,000
Automatic machinery and equipment = Rs. 4,70,000
Pre-operative expenses = Rs. 10,000
Other expenses = Rs. 10,000
Total fixed cost = Rs. 5,00,000.
Working capital cost
Raw materials = Rs. 50,000 per month
Utilities = Rs. 5,000 per month
Other expenses = Rs. 5,000 per month
Total working capital cost = Rs. 60,000 per month
Working capital for 3 months = Rs. 1,80,000 per month
Total project cost = Rs. 5,00,000 + 1,80,000 = Rs. 6,80,000.
Marketing ideas for selling the paper cup
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As early as you have accomplished the paper cup business project, you must work on the ideas about how to sell your product and the best way to advertise your business; here we have highlighted the few strategies which you could employ to build a good customer base.
Local marketing:Â You can always follow the old method to publicize your business locally through local media such as newspaper, the networking among your friends and relatives and thus you could brand your small business in the initial stages.
Additionally, tell your old customers and their relatives or friends to spread a word about your company, by offering short referral benefits to your present customers.
Online marketing:Â Apart from local advertising, you must check online marketing that makes your business to expand your business internationally and at a faster pace. Here we have listed out few online promoting strategies to help you grow the newly established business.
Create a website: In the present scenario, you need to design a website that represents your business on the internet and allots a specific platform for you and your customer virtually and acts as a bridge.
Retarget your customers
Offer free product:Â Marketing analysis shows that people are mostly attracted to accept something for free. So, if in the beginning days you can offer a free service or your products at least like samples to your customers it will fetch you in the market. This will help to retarget your clients by delivering them free Service or merchandise for starting days.
Email marketing: The present world is technically very sound and email advertising is something that most of the companies look out for as a tool for marketing. If you can have your customer’s email address, you may directly build an email campaign and thus can get connected with the previous customers, and target them to market with introductory offers and some unique benefits on promoting your business and thereby request to encourage the merchandise of your company.
Review for business
While looking for any products or switching for a new product in the market, new customers are majorly seeking for past work. So you may request your clients to provide feedback or testimonials which can be used to gain new clients. You may also like Profitable Small-scale Livestock Farming, Ideas, Tips.
This information is very good!