Do you want to start a disposable plastic cup-making business? Find here a complete business plan guide to start a disposable plastic cup product-making business.
Currently, disposable plastic items are gaining popularity. The manufacturing process is simple. And you can initiate a disposable plastic cup-making business by thermoforming technique.
If you want to start a small-scale business with little capital investment, then you can consider starting this business. Additionally, the business demands a small area of space for manufacturing operations. Also, you can sell the items on your local market.
10 Steps to Start a Disposable Plastic Cup Business
1. Understand the Market
It is seen, this type of cup is popular on a table and for packaging also. Some companies, such as coffee retailers and doughnut shops sell their products in disposable cups. Basically, disposable items are replacing traditional items very fast.
The use of disposable items is increasing day by day because of several reasons. The list may include growing hygiene consciousness, low cost, easy usability, and impressive appearance.
However, some of the major popular disposable items are disposable glasses, cups, plates, and spoons. These have become a part of the hectic lifestyle due to their convenience. Apart from home use, they also come in handy during parties, picnics, and other functions and get-togethers.
The major user of cups is the ice cream manufacturers. Actually, they use disposable plastic cups instead of paper ones. The main advantage of these plastic cups is that they are completely leakproof. In addition, plastic cups come in different sizes and they can hold bulk material easily in comparison to traditional paper cups.
2. Do Market Research
Take some time off and do market research and gather as much as information possible from the local market. Identify the specific type of cups that have demand in the market. Additionally, identify the price of the cups that other manufacturers are offering.
3. Craft a Business Plan
This is the most important aspect of starting the disposable plastic cup business. Actually, a business plan is a blueprint for starting and managing a business. Additionally, a business plan helps to procure finance from the banks or investors.
In the disposable plastic cup business plan mention your business goal or objective. Additionally, determine your mission and vision statement. Determine the form of organization and management pattern. Calculate the startup costs in detail. Generally, the startup cost includes machinery purchase, raw material purchase, preliminary expenses, and other operational and marketing expenses. Craft a marketing plan also.
4. Registration & Licensing
Generally, this type of business doesn’t attract complicated licensing issues. However, you must check the Federal laws of your state. Additionally, check if it requires NOC from Pollution Control Board.
Register your business with the right form of organization. Generally, for a small-scale operation, it is better to form a proprietorship or partnership company. Also, you can consider an OPC or LLP company to get a corporate identity.
Additionally, register your business with MSME Udyog Aadhaar. In India, GST registration is mandatory for product-based companies. Also, you can register your company brand name with Trademark Registration. Finally, check the yearly tax and compliance liability.
5. Arrange Startup Capital
Though you can initiate the business with a small capital, the business demands investment in various operations. These are procuring the space, purchasing the machinery, raw materials, and other operational expenses.
According to your business plan, you must arrange the startup capital. If you have that fund of your own it’s great, otherwise, you can apply for a loan. You can also borrow funds from your friends and relatives circle.
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6. Setup the Unit
After arranging the fund, you have to establish the unit. You can start manufacturing paper cups from your home too if you have sufficient space. If you don’t have any space, consider hiring a space instead of purchasing. Ensure that the space has electricity connections and water resources.
Generally, you can start a small-scale disposable plastic cup-making unit in a 1000 Sq Ft space. And you will need to determine specific spaces for raw material storage, manufacturing operation, finished goods storage, and administrative jobs.
Equip your admin department carefully. From the very first day, you will need to generate the invoice, Challan, and money receipt. Additionally, you will need to have control of stock. Hence, it is advisable to use accounting software for ultimate control and smooth running of the business.
7. Disposable Plastic Cup Making Machinery
With some simple machinery, you can start this business. The major equipment required by the unit for manufacturing plastic disposable cups are as follows:
• Automatic thermoforming machine
• Die Punch for cups
• Other accessories (Air compressor)
• Sheet extruder and scrap grinder
• Testing equipment
8. Procure Raw Materials
The main raw material required for manufacturing plastic disposable cups is High Impact Polystyrene (HPIS) sheet (15 MT per annum). Additionally, you will need to procure packaging consumables too.
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9. Learn the Manufacturing Process of Disposable Plastic Cups
First of all, drag the Polypropylene/Polystyrene sheet feeding reels of preset length from the bobbin reel in the thermoforming plant. Here, the conveyor chains carry the sheet through the heater assembly to the forming table.
Then, punch the heated sheet to form the shape of the mold. Finally, stock the formed cups. And the punched waste sheet is wound on a scrap sheet winder.
However, if you want to produce printed cups, print the sheets before forming them into the cup. Taking 200ml. cup as a yardstick as it is mostly used for serving coffee/tea. Generally, the installed capacity of the machine with 5 cavities mold is approximately 52500 cups per shift. In terms of weight, a 200ml cup made of 0.7mm thick High Impact Polystyrene sheet is approximately 2.58 gms.
In this business, raw material wastage is very high. Therefore, you will need to recycle the scrap. The scrap can be ground and extruded in a sheet extruder.
After the complete production, you will need to pack the cups and store them. Basically, distribution and institution selling is the most proven ways of promoting this business. Generally, most food and beverage brands buy these cups. In that case, you will need to visit the companies to offer your products. Additionally, you must concentrate on retail distribution for promoting the disposable plastic cup business widely.
10. Promote your Disposable Plastic Cup Business
If you are starting with a small budget, you need to craft a marketing plan carefully. Nowadays creating a website is a must. It not only promotes your business but also provides confidence in the customer’s mind. If you are looking for a wider market, starting an online retail store will be a good business expansion strategy.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.