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How to Start a Paper Straw Making Business

How to Start a Paper Straw Making Business

Since paper straw is eco-friendly and does not harm the environment, most entrepreneurs prefer to use it in their businesses. The government also contributes to this environmentally friendly project through various subsidies and schemes. In addition, starting a paper straw making business is not a difficult task. Paper straw is essential in many businesses such as fruit juice, bakeries, and so on. Paper straw is in high demand in both small shops and shopping malls.

In the market, various types of drinking straws are available. Straws are classified into two types based on their raw material: plastic straws and paper straws. If we conduct extensive market research, we will discover that plastic is widely used. However, because plastic straws are considered harmful to the environment, many businesses prefer to use paper straws. When considering starting a paper straw business, choose paper straws that are long-lasting. As a result, you can start the business with a rough estimate of the product profit in the market.

Market Potential of Paper Straw

Efforts are being made to reduce the environmental impact of plastic waste, as well as the expansion of the food and beverage sector as a result of the increased use of paper straws by restaurants, hotels, food stalls, and food wagons, and catering services. The paper straw market is expected to grow at a rate of approximately 23.60 % during the forecast period of 2021 to 2028, reaching USD 3.18 million by 2028.

The paper straw market is expanding due to increased demand for the product in a variety of end-use applications. The growing number of government reforms and campaigns aimed at eradicating plastic straws, as well as consumer intolerance toward plastic and a focus on capacity expansion, provide profitable opportunities for paper straw market participants.

Location for Paper Straw Business

It is an important factor for any business when choosing the proper location for your business to ensure the company is located in the centre of the city. This will be beneficial to those interested in your company. It will also be advantageous because you will have easy access to electricity and water.

Aside from that, you must consider the location’s transportation capability, which is best available if the shop is in the heart of the city. Furthermore, the land for the paper straw manufacturing business because there is no need to build a large plant inside it, only 400 Square Feet to 600 Square Feet of land are required.

Investment of Paper Straw Making

To start a paper straw making business, you should have at least 5 to 6 lakhs of capital. This includes the cost of the shop, materials used, licensing, fees for machinery purchased and obtaining permission to shop and some other miscellaneous charges.

You can also get a loan from a bank for start-up purposes if you do not have the entire capital requirement. You can also take advantage of government schemes and subsidies as this project involve the manufacturing of eco-friendly products.

License for Paper Straw Making

Before starting the paper straw making, you should get a permit for the same. Also, you should have a license for your company from state government authorities.

So, Given below is a list of permissions required to start a paper straw making business.

Business Registration with ROC, Trade license, MSME and GST Registration, And NOC from the Pollution control board.

Raw Material Required for Paper Straw Making

Before you start your business, you should be aware of the raw materials required to produce the goods. Aside from that, you should have an idea of where you can get a steady supply of raw materials. After you have this information, you can estimate the cost of purchasing the raw materials, and then set the price of the straws that you will produce and sell at the market.

Thus, for making paper straws, raw paper, glue, ink, and white oil are needed. Moreover, curarine is also needed as it is used to paint straws. So, you should purchase the ink and glue based on the colour of the paper straw you are willing to produce. The price of ink and glue is around rupees 100 to130 per kg, though it can differ slightly from market to market and place to place.

Machinery Required for Paper Straw Making

Before you begin this paper straw making business, you must have a proper idea about the variety of machines that you must purchase to operate the business. Two types of machines are required in the paper straw business. One would be required to prepare the paper straws, while the other would be required to cut the paper straws. The cost of paper straw manufacturing machinery, However, the machine costs between 2 and 3 lakh rupees to buy.

In addition, the paper straw-cutting machine costs around Rs. 50 thousand. So, if you properly estimate your budget, you will be able to operate smoothly after you start your business. And, You can either purchase the machine directly from the market or buy it from the online store.

Manufacturing Process of Paper Straw

To begin, you should understand how to make biodegradable straws.  During the process, raw paper or paper rolls and ink are put into the paper straw making machine. The two ingredients in the equipment will mix, and they form the straw. Next, you can program the shape of the composite material in the tool. After giving the desired shape, it is now cut into pieces. This will be done from another machine.

Next, It is suggested to pack the paper straws in cartons that could keep the items safe without any damage. At this point, you must decide how many straws you are willing to put in one carton. In this way, paper straws are now properly prepared for sale. When buying a paper straw making machine, one should carefully check the number of straws that the machine can make at a time, This will help you calculate the production rate.

Marketing for Paper Straw

By using some proactive marketing techniques, you can easily generate income through your business in the marketplace. For marketing, you can sell both retail and wholesale in the market, when the product is ready, you can sell it to the cool drink, or juice shop and sell to the wholesaler and retailer. If you want to increase the sale then promotion is necessary but through promotion, you can sell your product to a maximum number of buyers.

So, You can post details about your shop as an advertisement for a newspaper and try to spread it more by distributing brochures, leaflets, and so on in your locality. Therefore, you should also take special care of these two things you can market or promote your product in many ways.

Conclusion

Before starting any business, you should definitely decide how many people you will need to hire to run it. Once this is decided, you should appoint people and include their salaries in the budget. You can learn which type of straw is most popular by going to the market and conducting research. Aside from that, you should make friends with some shopkeepers or people who buy straws. So that when you start your business, these people will purchase your product.

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