How to start a Stationery Business in India

stationery business

The quality of education in India is improving rapidly. As a result, the number of schools and colleges is also increasing every year. This development has created a huge demand for stationery items all over the country.

The scope for stationery business in India is evergreen. If you have a plan to enter this business, then you can easily start a stationery shop even with a low investment.

In this article, we have discussed topics related to the stationery business in India including investment, profit margin, licenses and registrations, etc.

Stationery shop business plan

  • Choosing a good location is very pivotal in the stationery business. You must pick a location that is close to schools or colleges.
  • Also, the location surrounded by offices might work, but you cannot expect much from this. Because companies provide stationery items to their employees.
  • The minimum shop space required to start a small stationery shop is 100-200 square feet. For a medium to large scale shop, you may require 500 to 800 square feet of shop space.
  • Having enough space in your shop always gives you the luxury of adding new product categories in the future.
  • To run a medium to large scale shop, may require 2-3 employees to assist you in managing the business.
stationery business plan
  • If you have enough space, it is useful to include xerox machines and color printing machines in your stationery shop. This would generate extra revenue.
  • Selling the latest trending items always gives a good margin. The best way to get these items is by visiting the local wholesale market in your region ( like sadar bazaar in Delhi).
  • It would be beneficial if you also include other items like toys, gifts in your shop. This will help you in the off-season’s (when schools & colleges are closed). You can generate some income by selling these items in the offseason.
  • Sell items with a low margin in the beginning and add the latest trending items in your shop, then definitely you will get enough customers in a few months by word of mouth.

What are the licences and Registrations required ?

You do not require any special licenses to start a stationery business in India. Shop & Establishment Registration and Business Registration (sole proprietorship) are enough.

If you have basic documents like Aadhar card, PAN Card, Bank Account & Shop rental agreement, then you could easily get these Registrations. You can take help from any CA or legal agencies to get these documents.

GST Certificate is not necessary if you are planning a small to medium scale stationery shop. As per government norms, for the supply of goods kind of business, the yearly turnover limit has been set to 40 lakh.

So if your turnover is below 40 lakhs, then you do not require GST certificate.

Stationery Business Cost

The investment required to start a stationery business depends upon factors like whether you are planning a small shop or a larger one, you own the shop or the rented one, initial material purchase, kind of items you sell.

To start a small stationery shop, 2-3 lakhs investment is enough.

  • Racks/ shop interior, furniture & signage board 1 to 1.5 lakhs
  • Initial material purchase – 1 to 1.5 lakhs
  • Shop security deposit would be extra ( if you do not own the shop)

To start a medium to large scale shop, you need to invest upto 6 to 8 lakhs rupees.

  • Racks/ shop interior, furniture & signage board 1.5 to 2 lakhs
  • Initial material purchase – 2 to 2.5 lakhs
  • Any machinery/equipment like xerox machine – 1 lakh to 1.5 lakh
  • Computer system and printers – 50k to 1 lakh
  • Miscellaneous 20,000 rupees.
  • Shop security deposit would be extra ( if you do not own the shop)

Profit Margin in Stationery Business

Since you will be selling different types of items from different brands, it would be difficult to accurately mention the profit margin in this business.

However, you can expect up to a 20% margin in branded products. Note that, as you are running a single shop & also your purchase volume is less, you cannot expect any special schemes or bonuses from the company.

From the non-branded items you can expect a profit margin of up to 25%.

Always keep an eye on the current trends. From trending items, you might get up to a 50% margin, if that item is not available in other stationery shops in your region.

Ok, this is about starting a new stationery business in India.
I hope this guide will help you get started. If you have any additional suggestions, feel free to mention them in the comments section below. If you like this article then kindly share it with your friends.

You may also Like:

  1. Royal Enfield Dealership Details | Complete Guide
  2. How to get WOW! Momo Franchise

Leave a Reply

Your email address will not be published. Required fields are marked *