Do you want to start a rubber band manufacturing business? If so, find here a detailed business plan guide on making rubber bands at home or on a small scale.
An entrepreneur can initiate a rubber band manufacturing project at a home location with moderate capital investment. Rubber Band is a handy thing in our everyday life and it seems that their demand will remain unchanged in the future also.
It is without saying that making rubberbands is a technically feasible and financially viable project for small business entrepreneurs.
Here are 8 Steps to Start Rubber Band Making Manufacturing Business
1. Understand the Market Potential
The Rubber Product Manufacturing industry consists of a large number of small operators that typically focus on one particular product segment or market sector. The demand for rubber bands is huge and there is an immense opportunity for establishing a rubber band manufacturing project.
The future for natural rubber looks bright. At 5.92 million tonnes per annum, natural rubber has 39% of the world’s rubber consumption of 15.14 million tonnes per annum.
The rubber industry is expected to grow at over 8% per annum this decade, as the per capita consumption of rubber is 0.8 kg in developing countries against 14 kg in the developed world.
2. Create a Rubber Band Making Business Plan
A well-documented business plan not only helps in creating a roadmap for the present and future activities of the business but also in arranging funds from investors.
The length and amount of research of the plan however will depend on the scale of production. If you are planning on a small scale, you do not need a 100-page business project plan. Find below some of the important topics that must be addressed while documenting your rubber band business plan:
- Startup and recurring costs
- Target customers
- Manpower hiring
- Pricing plan
- Profit margin
- How and where do you plan to sell your rubberband items?
3. Make Your Rubberband Making Business Legally Compliant
There are certain legal issues that must be taken care of to run a legally compliant business. Some of them are registration of the business, licenses and permits, business insurance, and others as required by local authorities.
It is wise to talk to a local attorney and get legally covered to run the business hassle-free.
4. The Machinery Required for Making Rubber Bands
Broadly, there are three types of rubberband manufacturing machines are available. They are manual, semi-automatic, and fully automatic machines. If you are short on budget and want to start on a very small scale, manual or semi-automatic machines should be your preferred choice.
However, for medium or large-scale commercial production of rubber bands, it is advised to opt for a fully-automatic machine. Find below a list of basic types of equipment need to make rubber bands:
- Cutting Machine .5 HP
- Dip-in Tanks
- Vulcanizing Tank, Bucket, Cup, etc.
- Drying Stand
5. Rubber Band Manufacturing Process
There are many ways of making rubber bands. The process of making also depends on the type of rubber bands you want to manufacture. We list down some of the basic steps that are followed:
- Processing the natural latex
- Purification and making into slabs
- Squeezing the slabs to the required size
- Mixing and milling
- Heating and squeezing
- Extrusion after heating
- Curing in mandrels
- Slicing to form rubber bands
6. Cost & Where to Buy Rubber Band Manufacturing Machine
The average cost of a rubber band manufacturing machine will cost you around $8000 – $10,000. The best way to buy a rubber band-making machine is to contact a local machine shop dealer.
However, if you are looking to buy online, the best place is to reach out to Alibaba. You can contact suppliers from Alibaba and get a free quote.
7. Maintain Quality
Sample rubber bands from each batch are subjected to a variety of quality tests. One such test measures modulus, or how hard a band snaps back: a tight band should snap back forcefully when pulled, while a band made to secure fragile objects should snap back more gently.
8. Go Online
At present, it is almost mandatory to have an online presence for any business to flourish. Other than promoting your business offline by creating an effective network of dealers and retailers, one must consider creating a website with an online storefront. The online presence not only will bring new customers but also helps enormously in building a brand personality in the rubber industry as a whole.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.