How to Start a Small Scale Chemical Business
Author: Atir Naeem Qurashi
Linkedin Profile: Atir Naeem Qurashi
How to Start a Small Scale Chemical Business
Note: This article will give you a comprehensive understanding of How to Start a Small Scale Chemical Business. After reading this entire article thoroughly you will be able to have command on the following topics:
Introduction of Small Scale Chemical Business
The Potential Areas to Focus on When Starting a Small-Scale Chemical Business
1- Check Your Idea Before Commencement
2- Be cautious of the competition
3- Get Through the Expert Opinion
4- Choose the Right Route
5- Get Market Feasibility Report
6- Make a Business Plan / Project Report
7- Avail Licensing & Registration (if applicable)
8- Location of your Production and Warehouse
9- Planning Out the Operation
10- Protection of Your Product
11- Packaging
12- Pricing of your Product
13- Develop Follow-up Products
Questions to Keep in Mind Before Starting a Product-Based Business
Classification of the Chemical Business and Chemical Industry
Top Small Scale Chemical Business Ideas
INTRODUCTION
The world is changing from conventional to advanced methods rapidly. A sense of career is shifting from jobs and employment to business and entrepreneurship. At the present times, you will see many new graduates interested to become entrepreneurs who want to start a small scale production business. Chemical Business for sure, has an edge of being one of the most profitable and having an enormous export potential with top capital generating prospective. No just the well-being of the businessmen but the chemical business also contribute to the GDP growth of a country, so a person is also serving the nation by doing a business and generating revenue. It changes the lives in multiple ways, whether it be the garments people wear, drugs for healthy living, cosmetics for a beautiful life or food production, all these endeavours put meanings to the development of humanity and social welfare. Chemical industry no doubt is the backbone of many other significant manufacturing entities like Pharmaceutical, Food Processing, textile, leather and even aerospace industry.
The Potential Areas to Focus on When Starting a Small-Scale Chemical Business
Here are a few steps to be considered first, before starting a small-scale chemical Business:
1- Check Your Idea Before Commencement
It is wise to cross-check your business idea with multiple tools available (internet/ market research). When you have developed a strong concept of the idea and you are confident about its productivity, identify your competitors and analyze your strengths and weaknesses. Set your end-user/ consumer demographics.
2- Be cautious of the competition
It is very important to be aware of the local competitors before Starting a Small-Scale Chemical Business. The merits and demerits, advantages and drawbacks should be closely observed, so you can have a better strategy and an edge over the market competitors.
3- Get Through the Expert Opinion
Businesses especially the chemical businesses possess risks and unsafe consequences when opted by the newbies having less or no experience at all. This risk factor can be minimized to the extent that there will be no risks involved only by seeking expert opinion and industrial awareness from experienced ones.
Pro-Tip: Try not to ask from your direct competitors rather go for senior consultancy, the businessmen who don’t feel any insecurity from your presence in the market.
4- Choose the Right Route
Usually, two basic routes are suggested for starting a small business;
No#1 – launch a new business, OR
No#2 – buy an existing business. Go for a new and innovative idea if you have one. It involves pros and cons of course. Pros: your uniqueness will make you stand visible among the competitors. Cons: there will be difficulty in acquiring loans and investments because new ideas in business are hardly accepted by the conventional minds.
On the other hand, buying an existing business involves less uncertainty and more confidence, as it is an already running business so it becomes relatively easier to get investments and loans for this kind of business opportunity.
5- Get Market Feasibility Report
Your product-based business may include Manufacturing, Quality Assurance, Sales and Marketing, Accounting and HR operations. No doubt that you have an amazing and best quality product, but wait, are you in the right market? This is the right Question on right time. It is highly recommended that you obtain a market feasibility report earlier. It will provide you with a useful insight into your work mechanism and business structure.
6- Make a Business Plan / Project Report
A successful business plan comprises of structural-foundation of the chemical business’s aims and objectives, goals, vision, and mission. It is the most important thing in starting a product-based business. If you don’t have a well-founded and credible business plan, the chances are high that your business gets break-down and crash at once, in no time.
7- Avail Licensing & Registration (if applicable)
On a safe side, it is mandatory that you add all the legalities to your business. Select the accurate form of the organization as per your need. Avail right licensing according to your state’s regulations.
8- Location of your Production and Warehouse
The location of your warehouse or production unit has a significant importance. The logistics and movement of the final product from your Store-House to the relevant market should be dealt with technically. The availability of raw materials should also be closer to the production unit location.
9- Planning Out the Operation
From Product Market Demand, Planning/ Material Management, Supply-Chain, Production, Quality Assurance and Quality Control, Warehouse/ Store Management, Logistics, Market Distribution and Product Availability to the End-User/ Consumers; all these stages must be pre-planed with written documentation in order to reduce any discrepancies during the operations.
10- Protection of Your Product
Your Product is your Brand. Protection of your product with property rights is necessary. If possible get the Patents, Trademark and copyrights of your business. You must protect your brand name and logo form counterfeits.
11- Packaging
Always remember Packaging is the face of your brand. A new customer doesn’t check your product from inside but imagines the quality of your product by it appearance. Must pay proper attention to the packaging of your product. It is the very first thing a potential consumer sees. Your product must be designed in such a way that it attracts the eyes of consumers.
12- Pricing of your Product
It is a matter of fact that product pricing puts a major impact on the success of a business. Chose the pricing with deliberate care. A high pricing; makes your product beyond the affordability of a general consumer. On the other hand a too low pricing; makes the potential consumers to doubt your product’s quality.
13- Develop Follow-up Products
Just one product for always! This idea doesn’t sound good, right? You can’t stop at only one product for a long time. Only a few companies survive with just one or two products. After the successful launch of your first product and receiving a favourable response from the market, you should start adding new items per annum, so as to stay relevant and make a solid presence in the market.
Questions to Keep in Mind Before a Starting Product-Based Business
- Why am I going to do this?
- Can I take the risk of my finance for this project?
- Who are my potential consumers and relevant market?
- How much interest do I have in this particular product? Or, how much this product is relevant to me.
- How much investment can I spend or access to? And how much can be required?
- What is my future perspective about this product?
- Who can and will help me?
- How will I handle the complications and setbacks?
Classification of the Chemical Business and Chemical Industry
Chemical industry can be divided into three main classifications. These are:
- Primary Production
- Thermoplastics
- Aromatics
- Inorganic Chemicals
- Thermosets
- Derivative Production
- Pharmaceuticals
- Agrochemicals
- Biotechnology
- Specific Production
- Water Treatment Chemicals
- Paints
- Adhesives
- Sealants
- Coatings
- Additives
Top Small Scale Chemical Business Ideas
Following are some of the prime advantageous small scale chemical business ideas that you can start with low investment.
Basic Chemicals
- Organic Chemicals
- Ethylene
- Acetic Acid
- Phenol
Inorganic Chemicals
- Chlorine
- Sulfuric acid
- Hydrochloric Acid
- Titanium dioxide
Agro Chemicals
- Fertilizers
- Insecticides
- Herbicides
- Fungicides
- Pesticides
Cleaning Chemicals
- Dry Cleaning
- Bleach
- Lye
- Vinegar
- Baking Soda
Are you ready to start your own small scale chemical business?
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