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 with maintaining safety measures strictly. Matchsticks are consumer durable product and the demand is growing day-by-day. An entrepreneur having knowledge in channel distribution can start matchstick manufacturing business with moderate capital investment.
Stepwise Business Plan Guide on Starting a Matchstick Manufacturing Business
Create a Business Plan for Matchstick Manufacturing Business
Create a comprehensive business plan for 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 a 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 Business
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. It is also needed to get permission from the fire department. Obtain a factory license from the Govt. department. Concentrate on safety and fire precaution process. Obtain sales tax registration from Govt. authority.
Machinery and Raw Materials for Matchstick Manufacturing Business
Start your production unit through a semi-automatic process. Previously matchstick production was labor intensive. Now different machinery is available for 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 matchbox and outer box for packaging. Source the raw material from reliable vendors at the reasonable price.
If you are looking for fund 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 product 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 deal.
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 matchstick manufacturing business you need to concentrate on quality and packaging of your product. Establish business tie-up with the retail brands. Ensure the availability of your product at every retail store in the area you are doing business.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.