How to Start a Chalk Production Company – Sample Business Plan Template
1. First, analyze the market
Because no business will thrive without a sizeable market, it is very important to check if the market is large enough to sustain your business in the long term.
One of the commonest mistakes entrepreneurs make is to plunge into a business out of sheer enthusiasm and optimism that a business idea will work. Such entrepreneurs who don’t take their time to analyze the market usually end up failing woefully. So, avoid this deadly mistake.
Take further steps at starting this business only if there is a good market for it in your locality and country. If the market size isn’t encouraging, there’s no point going further, since there are thousands of alternative business ideas you can exploit. If you are convinced that the market is favorable, and you have made up your mind to kick-start your chalk production business, then follow these steps:
2. Write a business plan
This is the first step to take when starting a new business. With a business plan, you will be able to highlight your goals and objectives, your target market, your financial projections, your budget, the market and competition, and so on. A business plan gives you more insight into your business and allows you to stay focus as your business continues to push its way to success.
3. Source for funds
The next step is to source for the funds you will need to start and run your chalk production business. If you cannot afford all of the startup costs required, then consider seeking financial help from friends and family. Better yet, you can approach angel investors or apply for small business grants, if available.
You will need money to acquire the site you will use for chalk production. You will also need money for procuring the necessary equipment and raw materials. Even after starting the business, you will need some money to run the business until the profits start to trickle in. Remember marketing costs, too. If your business plan is comprehensive enough, then you shouldn’t be caught unawares by any hidden costs.
4. Volunteer to Work For Free
This process would come in handy especially now that you only have a theoretical knowledge of chalk production. You would hereby need to either volunteer to work for one who already has a chalk production business for free so as to have some practical knowledge, or you serve as an intern to acquire the same knowledge.
5. Incorporate Your Business
Now that you have a business plan; you may now embark on incorporating your business. Decide on the name you would settle for and begin the necessary documentation. A lawyer as stated by the law of each country would be needed to help you do this documentation. This process doesn’t take up to two months, however it is important to note that it varies from country to country.
6. Find a good location
The best location for any business is near the target market. Most of the time, a chalk production company would do fine when located in an urban area where there are many schools as well as individuals who use chalk very frequently. You can either purchase a site or take the cheaper route; that is renting it for a specified period.
7. Acquire the necessary equipment
Equipment you will need include:
- Chalk moulds
- Scrapers
- Paint brushes
- Dryer
- Hand gloves
- Packaging materials such as branded cartons and nylon bags.
8. Find suppliers of raw materials
The following raw materials are need for chalk production:
- Plaster of Paris: Commonly called “POP,” this is the major raw material required for chalk production. Scientifically called “calcium carbonate,” it quickly forms a hard paste when mixed with water. Aside chalk production, it is also commonly used in hospitals for molding casts around broken limbs.
- Cooking oil or coconut oil is also used as lubricant during chalk production. It is usually mixed with kerosene and the mixture is used to line the interior of the mould used for shaping the chalk to prevent the chalk from sticking to the mould.
- Colors such as ultramarine blue will be needed to give your chalk the desired color you want.
- Clean water is used for mixing the ingredients to produce chalk.
Before starting your chalk production business, you must find suppliers from whom you will be sourcing the raw materials you need. Try to find two to three different suppliers for each material because you never know when a supplier will run out of the commodity.
9. Hire the Right Hands
By hiring the right hands, I mean getting the experienced workers involved in the day to day production of your business. It is very expedient that look well before you hire just about any one. This is because you do not want to be at the mercy of inexperienced operators who might slow down your production output.
10. Have a Solid Marketing Strategy
Finally, the next thing you would be required to do is to put in place a good and concrete marketing strategies. Know the various distribution channels that are available to you, also because of the level of competition that abounds, you might have to look at ways of getting your already packaged chalks to those in demand ahead of others. For instance; you might have to device a means where your production is done at the wee hours of the night, so as to reach consumers pretty early enough. Also you might consider giving freebies to wholesalers who would be willing to push your products.
If you produce high quality chalk, your customer base will grow, and you will make more money as your business continues to expand over time.
There you have it; 10 time-tested tips to get you started. In addition to all these, it would really important to note that you must be really hard working in getting all of these tasks all done. And after you have done all these, you can be sure to be on your way to building a successful chalk production company.
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