Are you willing to utilize your entrepreneurship skills in initiating a low capital small scale business in India? If yes, you must opt to commence a toothpick manufacturing business that may ensure you two things- controlled capital investment and fruitful returns.
It has become extremely difficult in the competitive market to set your career either in the private sector or government sector. Thus, by looking at the increasing crowd in these spheres, many people are transforming their mindset and are gearing up to become an entrepreneur. During the time of fluctuating market condition and recession period, the service industry suffers the most. Therefore, most people are moving to start their own business.
The mass consumption of plastic toothpicks in restaurants, as well as hotels, has opened the door of possibilities for plastic making business enthusiasts. The increasing demand is because of the fact that a major chunk of frequent restaurant visitors finds it very comfortable for tooth picking. An individual can start its plastic toothpick manufacturing or production unit in two forms- fully automatic basis or semi-automatic basis. In addition to this, folks tend to use disposable plastic toothpicks extensively during travelling. The plastic toothpicks are extremely flexible in comparison with wooden toothpicks as well as they are acquired in well-packed form.
As the toothpick manufacturing business is a business of all seasons and it hardly gets affected by external factors, young and emerging small business enthusiasts are taking a keen interest in commencing this form of business as it’s economical to begin and ensure better rewards in the future course of time. Through this write-up, you will gain enough information related to the toothpick manufacturing business.
Compose a Business plan
- In order to commence your business in an organized manner, you must be ready with your properly designed plan.
- Regardless of the simplicity & the scale of a business, the value of drafting a business plan is something that is just unavoidable.
- A business plan is helpful in constructing the future roadmap and forecast the forthcoming ups and downs of the business venture, and helps you to keep your focus on achieving your goals in time. Also, you must ensure that your business plan is a convincing one.
- In case you find any flaw in the business plan, you need to refine the plan once again.
- A business plan will further help you get a loan from the banks or financial organizations to meet the financial goals.
Toothpick Manufacturing Business: Opt for Your Right Niche
There are different stuffs through which toothpicks can be manufactured. By utilizing wood, bamboo as well as plastics, they can be produced. Thus, you must decide which type of toothpick you are planning to manufacture and what’s the ongoing demand in the market. Your further steps such as picking the raw material supplier, machinery etc will entirely depend on this. You need to ascertain the profitability associated with your niche in advance.
Pick a Prime Location
- Consumer accessibility is one of the core factors that accelerate the growth of any form of business. There are no prescribed guidelines to opt for a location to commence a toothpick manufacturing business.
- Nevertheless, it is recommended to inspect with your local administrative for any type of restriction or not.
- You need to figure out which location will be a perfect match for your requirements.
- Your location must be closer to the market in order to sell the product in a hassle-free manner and even in proximity to the suppliers of the raw materials.
- It will help in saving a lot of cost involved in transportation.
Choose Your Suppliers Wisely
In order to operate the toothpick manufacturing business, you will require a different type of raw materials as well as machinery. Thus, you would have to select your supplier wisely. Check the rates along with the quality of the materials in a careful manner before finalizing the supplier.
Toothpick Manufacturing Business: Arrangement of Fund
In case your personal funds are not sufficient, you may proceed ahead and apply for a loan from the banks. You will get a loan from the bank with the help of your business plan.
Develop sound and reasonable marketing strategies to ensure that all the probable customers get the news of you commencing a toothpick manufacturing business. The hotel industries will deliver the significant business. The demand for the toothpick manufacturing business is high in different events such as parties, ceremonies, weddings etc.
Proper marketing with a proper promotion will allow your business to make connections with the proper channels with major business associates. You can march ahead for promoting your product with a relevant medium such as advertisements, Facebook, etc.
Toothpick Manufacturing Process
The raw materials needed for toothpick manufacturing business will completely depend on the kind of toothpick you want to make. It can be made of hardwood, bamboos or plastic material also. Therefore, the manufacturing process will vary on the basis of the type of business venture you are operating.
Toothpick Manufacturing Machine India
The toothpick manufacturing machines entail: –
- Scrap Grinding Machine
- Weighing Scales
- Variety of Molds
- Packaging Machine
- Dry Colour Mixer
- Mold Lifting Machine
- Sharpening Machine
- Polishing Machine and others
The machinery available for the toothpick manufacturing business is in automated, semi-automated as well as manual form. You can opt for the same as per the estimated budget of your business & scale of production.
- Here, you will need two forms of capital investment, i.e. fixed capital investment & working capital investment.
- The core areas of the requirement encompass building, land, and machinery.
- Working capital consists of raw material investment, manpower charges, as well as daily basis expenditures in order to run the unit.
- Prepare a sound business plan and go ahead with submitting it to financial institutions close to you for availing of the loan facility.
- You may approach mortgage loans and unsecured business loans for fixed capital requirements. Also, you may acquire an overdraft facility and cash credit to avail of working capital investment. Proceed ahead for verification of your credibility, collateral security amount, as well as interest rates of the bank before applying for a loan.
- You need to make an investment in the range of 1-1.5 lakhs Rs on the basis of the scale of the business.
- The cost of the machine initiates from Rs. 20, 000 or you can avail it for Rs. 18,000.
- The cost for a high-quality machine touches the figure of Rs. 2 lakhs.
- Raw materials cost entails Rs. 50, 000.
- Miscellaneous costs include Rs. 10,000.
Toothpick Manufacturing Business: Registration, Licenses & Permissions Required
In order to commence toothpick manufacturing business in India, acquiring the following licenses and registration is mandatory.
You may start the small to medium Business either a Proprietorship or Partnership Firm.
If you are starting this Business as One Person Company, then you have to register your firm as a proprietorship.
For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with
Registrar of Companies (ROC).
it is mandatory to get the GST number to run the business; you need to apply for the GST registration.
obtain trade license from local authorities
this MSME/SSI Registration will help you to get schemes and facility for the business offers by the state government
BIS has mentioned the specific quality standard for Business. ISI specification for the
you can secure your brand with trademark registration
IEC code is essential for the export of the product
apply for pollution certificate this business produces an offensive odour.
state insurance which is an insurance scheme for workers.
Employees provident fund is compulsory for the business where more than 20 employees are working.
To comply with the above processes and registration, one might need any legal expert who would help in absolute legal compliance to meet industrial standards.
There is a great demand for toothpicks at the present time. The flourishing custom of dining in urban and suburban areas has heightened the need for this product. On a daily basis, plastic toothpicks are used in restaurants, hotels, public gatherings, homes, as well as several places where food get usually shared. The advancement rate of plastic toothpicks is close to 4%. The demand is not only confined to Indian boundaries but also has a very high export capacity. In case you are planning to initiate an export-oriented plastic toothpick manufacturing unit, you must maintain the quality of the product by following the export guidelines.
The toothpick manufacturing business is a business of all time. It’s an excellent opportunity for those business enthusiasts who want to initiate small scale business with a good chance of profitable returns.