Hello,
Firstly let me tell u that this blog is great and I was just looking for website like this… Saw Alok sir on ” the pitch ” on bloomberg and got to know about him and this website.
I am In 3rd year B.E mechanical engineering and like all others out here I too want to start my own business soon. Was thinking of manufacturing something but capital needed is much also I ll be new to business (like 1st in my entire family, my dad is supportive though & my greatest motivation) so I am thinking to start paper trading business (Xerox,notebook paper,cardboard,etc). I am currently in Nagpur, Maharashtra and I wish to start business by next year mid.
So can anyone help me with this ? Scope, limitations, problems which I may face ?
Initial 5-10 lacs investment shouldn’t be any issue. Also I want to start my business early because I want to know how can I cope up with the thing or else other option I have is doing MBA but I don’t want to because after which I have to do job (which I don’t want to).
For those who may say take some experience … I believe time ll teach in doing things and I do have guidance of people around me … So please help me out whether I should do it or not?
Thank you !
Prateek Bohra
Paper Trading according to me is a very competitive business, but as they say an enterprenuer does not fear competition. Doing a wholesale business would be more beneficial because A-4/3 size packs are a volume based trade. You can start with operating out of your home if you have adequate space. Try contacting Trident/Century or Tamil Nadu Paper Products for franchisee of there paper, remember there are always two kind of people in the market. One who wishes to buy quality and one who doesnt care a heck about whats going inside. In order to survive, you ought to give attention to both the markets(personal opinion), so you should always have stock of both types of materials.
You can then market your products to Industries, Business houses requiring good amount of paper, stationery shops, photocopy shops and print shops..you can also deal in other kinds of papers (industrial papers) which are in non standard size and required in specific industries like decal printing industries or hand made processing industries.
Since you will be starting up and will be entering a competitive market you need to have an edge over others. And this is not a very innovating line, you can offer extra credit(more than being offered in the market), give cash discounts, give freebies with your products. You will have to calculate your investment and return required. And stick to minimum overheads because your major overhead would be freight and packing.
I hope this helps 🙂
All the Best 🙂
Harshit
Thank you
Yes I do agree that there various quality and diff. Types of ppl buying different quality product. In Nagpur(nearby) there are many paper mills from where I can buy in bulk … And distribute to others who require in less quantity.
But my main qts is what is the scope in this business ? Is it okay if I start now at age of 20 ?
I know a person who does only cardboard paper trading only and have grown up very much within 8 years he now own audi while he used to have bicyle and used to carry goods way back …
Viral Thakkar
Hello Harshit,
good to hear to start a business at this age. I don’t know about your business market. but ya it is very good business.
there is no standard age of doing business. you can start at 20 or 40 or 60. Whenever you show opportunity, you can start. Age 20, it is good age to start. there is no family responsibility. There are lots of resource you can get free from your friends and family to work for you in initial stage.
All the best
Ashish Parik
Hi Harshit,
First of all congratulations to you that you thought of starting something on your own rather than running for job.
As stated by Viral, age has nothing to do to start a business. Generally age is related to learning. You have a very good time in hand to learn things. My suggestion to you..
1. Do not start any business because somebody else has earn a lot of money in it. Somebody else has succeed doesn’t mean you will. Also somebody else has failed doesn’t always mean you will fail.
2. Do some ground work before investing a much amount. Contact a whole seller and get a good deal. You can start selling only A4 / A3 size papers to offices on call. You may loose some money but definitely you will learn worth that money. What people want ? How they buy generally ? How the payment is done ? How much do they need ? etc.
3. Find out the main and major consumers. Their current suppliers. Problems the suppliers and customers facing. If you think you can give solution to the existing problems while growing your business, you can definitely expand your wings.
4. If you get across offices which need papers regularly you can start supplying other office stationery which will close doors for the other vendors to enter the community of customers you build.
There was a good article on yourstory.in, don’t know the exact caption. The message was like, “Try to understand what you are selling – Vitamin or Painkiller !
My best wishes to you…..All the best !
Harshit
Thank you
Ankt Bajoria
I am a paper trader from Kolkata, age 23 and have been in the business since 4 years. My dad started it. I feel the must-have qualities for success in this business is networking and risk-calculation before selling on credit. If you can do these two well, go ahead.
P.S. Do not expect huge margins as the competition is huge.
Harshit
I heard there is near about 2% profit on each sell and also if business goes good then lot of cash flow is required. So stroked off this plan :). Thankyou