HOW TO START A SMALL SCALE CHEMICAL BUSINESS
In India, start-up businesses are growing at an exponential rate. Youth today have understood that it’s better to earn profit for themselves by working hard than earn profit for someone else. There is a huge variety of start-up ideas. Some are conventional and some are absolutely out of the box. Everything around us is chemical based, be it paint we colour our house with or the paste we use to brush our teeth. Chemicals industry is responsible to produce chemicals, it converts the raw material such as oil, natural gas, air water metals and minerals to a huge variety of products that range to almost or more than 70000. There are companies like BASF or Dow Chemical Company whose chemical sales are more than 50 billion dollars a year. The plastic and chemical companies overlap but there are few business that are around chemicals only.
Before diving into the chemical business planning let us know how chemicals functions and what are their types and uses.
In India, chemical industry is forecasted to grow at the rate of 8-9% in next decade. The Indian Chemical Industry includes both small and large-scale units where about 70,000 chemical manufacturing units are present. Most of them (in numbers) are covered in the small-scale sector.
Now since we know the basic, let us have look at what how can we set up Chemical Business in India
Create a Plan
Decide beforehand what kind of Chemical Business you want to open. Is it just a retail shop or you’ll have in-house manufacturing of chemicals? If you are manufacturing, you need to understand it is not an easy task and requires a good understanding of science and technology behind it. You will have to hire professionals and the scale of your business will be bigger. With that decide what will be your reach. If you want an offline store or an online store? If it is an offline store how big of a space you are expecting to have and will also hand out deliveries. And if it is an online store, what storage area you are going to keep your goods in, and what will be your area of service.
Make a plan for what is going to be the size of your business at first. The growth will only follow if you thrive in the market and the chemical business needs investment and time. One should always be ready for bad days and thus also take care of the amount that is produced daily.
Do your research
The chemical business is not an easy venture to open. You have to do a lot of research about how the market functions and what is the demand and supply chain in this business. Chemicals require maintenance even when they are at your warehouse so know the science of how to manage them wisely so that none of your product is wasted. If you are manufacturing chemicals be aware of the health hazards that are involved in it. Take care of all the safety measures and rules and regulations which are set up by the government
Take Permits and License
To start any business in India, you need to have legal permission sorted beforehand to avoid any hassles with government officials. You’ll need to get yourself registered as a business person, get your GST registration, and all sorts of licenses and permits are done. Make sure you are ready with all the paperwork and to take multiple rounds of government offices because opening any business in India calls for this.
Be vary of Competition and choose the right Location
The location of your chemical business matters a lot. Try to keep your shop away from a place where there are already several stores available. Open a store in a densely populated area so even if there are competitors around, you will always have people buying from you. Buy or rent a space that is big enough where you can store your items carefully and systematically.
Opening a store in a small town where there are already many manufacturers or chemical distributor makes no sense. So, look for a place where you can stand out and be highlighted. You can also opt to have your chemical business set up near roads where many automobiles can locate you.
Focus on Marketing
Make use of social media as it is almost certain that at least one person in your locality must be using any social media platform. Putting up pages on Facebook and Instagram and asking youth in youth in the locality to share it amongst friends, developing a strong SEO, and investing in marketing offline can bring great audience attraction to your new automobile accessory business. Putting up ads with discounts and amazing offers are always a plus. Along with online, spending on offline methods to propagate business is necessary. Go old school and hand our pamphlet whenever a customer arrives. Since you have an offline store and most customers will save your number for future reference, you can invest in WhatsApp Business and use its marketing tools to propagate your business. It is convenient to use and digitally provides a personal touch as the medium is one to one messaging which has become one of the best provisions of converting prospects to customers. Remember to greet them nicely and make them feel important.
Starting a chemical business takes a good amount of planning. If you want your new business to succeed, understand the risks that come with entrepreneurship. It often takes a few years to get a business off the ground even with the best-laid business plan and advanced marketing. To open any business, one should be ready to work hard and show a lot of perseverance and determination. Any business will have good and bad days but it depends on the owner how they want to go about it. All the best!