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How to Start a Profitable Matchstick Manufacturing Business

Do you want to start a matchstick manufacturing business? If yes, you have landed at the right place. Here in this article, we list down step by step detailed guide on starting a small-scale matchstick manufacturing unit.

Any individual can initiate the matchstick manufacturing business on a small scale by maintaining safety measures strictly. Matchsticks are consumer durable products and the demand is growing day by day. An entrepreneur having knowledge in channel distribution can start a matchstick manufacturing business with moderate capital investment.

Matchstick Manufacturing Business Plan Guide

Here are the important steps to follow to start a matchstick production unit:

Create a Business Plan

Create a comprehensive business plan for the matchstick manufacturing business. Determine your business objective and selling strategy. It is always recommended to have a customized project report in hand. It will give you the proper information about the capital investment, machinery, raw materials needed, and where to source. Get the production protocol with the right formula from a reliable source.

Select a Location

Selecting the right location is extremely critical for this business. Matchstick manufacturing is all about dealing with hazardous and explosive items. It is recommended to set the unit in an industrial zone. Otherwise, you will need to submit ‘No Objection’ from the neighbors where you are establishing the unit.

Legal Compliances for Matchstick Manufacturing Company

Determine the legal pattern of the business. You can start as a sole proprietorship if you are starting on a small scale with less budget. Obtain ‘consent to establish and ‘consent to operate’ permission from the Pollution Control Board.

Suggested Read: How to Register a Company/ Startup

It is also needed to get permission from the fire department. Obtain a factory license from the Govt. department. Concentrate on the safety and fire precaution process. Obtain sales tax registration from Govt. authority.

Machinery and Raw Materials for Making Matchsticks

Start your production unit through a semi-automatic process. Previously matchstick production was labor-intensive. Now different machinery is available for the production of a matchstick in a semi-automatic or an automatic process. Take the training from the suppliers.

Check their client testimonials before purchase. The main raw material is the wooden stick. Other necessary raw materials are potassium chlorate, phosphorus sesquisulfide, glass powder, zinc oxide, glue, color dye, etc. Also, you need to have a matchbox and an outer box for packaging. Source the raw material from reliable vendors at a reasonable price.

Arrange Finance

If you are looking for funds to start your matchstick manufacturing business, your business project plan will play an important role. You need to pitch your business plan to investors. You can approach banks, government agencies, or venture capital investors.

Marketing of Matchstick Manufacturing Business

As matchsticks are consumer durable products it demands branding activity to get the market share. Matchsticks are sold in volume. The success of this business depends on the strong channel network. Start selling locally. Offer your channel partners lucrative business deals.

Chalk out a marketing plan for your business. There are many low-cost marketing ideas for promoting your products. Creating a website will surely help you in providing confidence among customers about your company.

In the matchstick manufacturing business, you need to concentrate on the quality and packaging of your product. Establish business tie-ups with the retail brands. Ensure the availability of your product at every retail store in the area you are doing business.