Do you a steel business idea in mind and plan to start a steel business? Are you worried that a steel business requires a huge investment?

Here is an insight into various aspects of starting a new steel business. Learn about the business ideas, how to arrange investment funds, business plan and so on.

Many think that setting up a steel business means establishing a capital intensive steel plant that sprawls over acres of land.

However, the truth is that Indian steel producers, it is mainly dominated by MSMEs.

There are different kinds of small steel businesses one start.

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Many steel business ideas can be profitable in small investments. For example, you can be a manufacturer or trader or an exporter.

Automotive industry: steel components

Construction industry: 

Infrastructure industry: steel girders

Multiple industries

Household items: kitchen utensils, steel furniture, etc.

Apart from the business ideas mentioned above, a steel fabrication unit can also be a profitable business idea of a steel business.

The most important factor of any business is profitability. When you plan to kick-start a steel business, the following steps can help you make it profitable.

Steps for starting a steel business

 If you are planning to start a steel business, what steps will you be required to follow? Here is a step-by-step guide for you to start a steel business.

The first step is to do market research and understand the needs of the market. Also, analyse what exactly you would want to produce.

 Check feasibility of the business idea that you may have in your mind.

Depending on the products, you will need to source the raw material.

are required for making some auto components.

Also, competition analysis is important.

Choose the right location

For a steel business, location is extremely important. Either you can locate you business closer to your suppliers or your buyers.

 

business

Make a robust business plan  

Like any other business, even a steel business needs a business plan. Include your market analysis, projected required investment, sales plan for the first couple of years, investment plan, marketing strategy and so on. This can also act as a roadmap for you and your employees while it can also help you get funds.

Arranging for funds

You can arrange funds in many ways such as a business loan, finding an investor, investing your own money and so on.

Obtaining a business loan can be difficult for a new entrepreneur.

However, there are loans, and . These schemes encourage budding entrepreneurs to kick-tart their journeys.

Depending on the business you plan to do, requirement of capital changes. A steel fabrication unit can be started with an investment of ₹10 lakh to ₹15.

Company registration and licenses

You can register your company either as a partnership firm, private limited or  If you are setting up a new factory, you will need to obtain various registrations and licenses.

Some of these include a factory license, company registration GST registration, trade licenses, pollution certificate and so on.

If you plan to be an exporter, you need to obtain licenses accordingly.

Note: The requirement for licenses varies from state and location. Therefore, it is best to get in touch with local authorities to understand the requirement.

steel and iron

Procuring machinery

As a manufacturer, select the right machinery for your business. There may be many options available in the market from manual machines to high-end sophisticated machines.

However, it depends on the products yAou plan to manufacture and your business plan.

 For example, aerospace parts need precision and accuracy that sophisticated can deliver.

 However, the production of household products such as steel kitchen utensils, steel furniture, etc., does not require such sophistication.

Once the machinery is delivered, you can start procuring raw materials. You can  from Tata nexarc. Post your requirements and get quotes from verified vendors. Try now.

Choosing right technology and solutions

In this digital age, you will need to have the right . Also, it is important to have  can help you in many ways though the initial cost of it may be high.

The degree of automation and digitalisation varies from business to business and depends on the business owner’s vision

. Therefore, it is best to choose what suits your steel business the most and choose accordingly.

Created & Posted by Dolika 

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