How to Start a Handicrafts Business

The export of handicraft products is a good business idea in India, especially for those who want to go into the export business owing to its cultural and diverse episodes. The general global market requirement for Indian handicrafts products is high and there is high potential in this area for those who would wish to venture into this area. This blog is going to feature a detailed guide on the legal procedures for commencing a handicrafts export business in India, including licenses, permits, and certifications that are essential to the business.

 

Table of contents
 

• Understanding the Handicraft Market in India

• Conduct Market Research

• Develop a business plan

• Choose a Legal Structure

• Regulatory Requirements

• Finding Venture for funding

• Sourcing Raw materials 

• Setting up Production

• Building your brand 

• Marketing

• Government Support and Scheme

• Conclusion 

• Frequently Asked Questions 

 

Understanding the Handicrafts Market 

 

The handicraft industry is one of the largest industries in the Indian economy, which is comprised of millions of artisans in the country. Handicrafts are products that are made using basic tools and materials; it is a method of manufacturing and covers areas such as textile, pottery and ceramics, metals, Wood, and jewelry. Another factor is that many artisans in the industry are located in rural settings and therefore the industry is rather decentralized.
 

 

Conduct Market research 

 

Before entering into the Handicrafts export business, understanding and planning are crucial. Many companies fail to achieve their goals due to a lack of market research, so before starting the company, recognize the market, and find out your niche. Once you have researched and planned your business, it will help you overcome obstacles and run your company smoothly.

 

Develop a business plan

 

A business plan is an important tool for managing your startup and it has a role in sourcing funding. Your business plan should include:

Executive Summary: In summary state the business idea, the business objectives, and the business goals.

Market Analysis: Give an analysis of your target market, competition, and industries that prevail in the market.

Operational Plan: Explain all aspects of the business such as human resources, hardware, and materials utilized in the process.

Financial Projections: Be sure to attach projections of costs for starting the business, expected earnings, and the ability to turn profitable.

 

Choose a Legal Structure

 

Choose the right business formation for your handicrafts export business; you can go for sole trader, partnership, LLP, private limited company, etc. It is worthy of note, therefore, that you desist from using this technique due to factors relating to liability, tax, and other assessments that are compulsory to perform. It is advisable to seek advice from professional lawyers so as to make a proper decision.

 

Regulatory Requirements

 

In order to commence the leather products manufacturing company in India, you need to acquire different licenses and permits from different government agencies. These include:

Import Export Code (IEC)

The IEC is a formal requirement for any business involved in the import/export activities. It is one of the certification and is distributed by the Directorate General of Foreign Trade (DGFT) to anyone exporting goods.

GST or Goods and Services Tax registration

In this case, if you exceed the established limit for turnover, you are obliged to register for GST. This enables you to charge taxes for the government and at the same time be in a position to reclaim input tax.

Trade License

A trade license is essential if you seek to operate your business legally, within your region. To a degree it signifies that it conforms with the local laws.

Registration with Export Promotion Council for Handicrafts (EPCH)

Some of the benefits associated with registering with EPCH includes market information about your product, trade fair participation and sourcing of buyers.

Trademark Registration

In order to safeguard your brand and your products, there’s no better way than to seek a trademark. This leave others with no choice other than using your brand name or logo.

Quality Certifications

In case where you are eager to export the particular good, there might be necessary certifications of their quality. For instance, some products need ISO license or the conformity to international standards such as REACH for chemical products.

Environmental Clearances

Depending on the economic activity that your handicraft production entails it may be necessary to seek Regulatory permission from the CPCB and SPCB over some of your activities that may affect the environment.

It’s really the professional utilities that can help you with your business registration, licenses, and permits with our professional assistance, the process can be made easier and smoother for your business and the latter are well aware of the regulations required for such licenses and clearances.

 

Finding Venture for funding

 

Starting a handicrafts export business requires a significant amount of capital investment. This is particularly so if the operation is large, you will have to secure funding from investors or other financial institutions. The available funding for this business includes venture capital funding, bank funding, and private equity and, indeed, it is very crucial to prepare a written business plan and forecast the operating expense and revenue projections to be made in order to attract investors.

 

Sourcing Raw Materials

 

One of the challenges that have to be addressed in the context of a supply chain organization is the identification of reliable sources of raw materials needed for product production. Consider the following:

Get acquainted with the local artists and craftsmen.

Further, use reliable source materials to reduce the likelihood of buying substandard items from dubious suppliers.

Government support for artisans and cooperatives as an evaluation criterion.

 

Setting Up Production

 

If you wish, you can establish your own manufacturing unit or approach local artisans to procure the required products. If you choose to establish a manufacturing unit, consider the following:

Location: It should also be situated in an area where the demand is high and where supplies could easily be sourced.

Equipment: To utilize the blues strategy for implementing the trade-off theory of resource allocation, an organization must invest in machinery and tools for production.

Skilled Labor: Subcontract from professional crafters or train local people and prevent the product’s quality is affected.

 

Building your brand 

 

Brand image is therefore crucial, in the context of handicrafts where competition is stiff, an organization needs to come up with an image that will differentiate it from other organizations in the market. Consider the following strategies:

Create a distinct brand name and logo that will set it apart from the rest of the brands in the market.

It is important to have a good website where you can put your products and services on display for potential clients.

Build a presence on social media sites to reach out to the target consumer base.
 

 

Marketing

 

This means that the development of a strong marketing plan will assist you in targeting the customers as required. Consider the following approaches:

Online Marketplaces

Selling through Amazon, Etsy, and eBay will help make sales across the globe. These platforms offer the ready audience who is willing to purchase the product and also make the selling process easier.

Trade Fairs and Exhibitions

Approach stakeholders in the business world such as buyers and distributors through trade fairs and exhibitions. This can also assist you in establishing contacts with other industry participants.

Direct Marketing

The most effective way is to make a direct appeal to potential buyers through emails, social media promotions, and advertisements.

Collaborations

Think about partnering with influencers or bloggers who focus on the handicraft niche to popularize your items.

 

Government Support and Schemes

 

The Indian government has implemented several schemes to support handicraft exporters, including:

National Handicraft Development Programme (NHDP): Grants funding, support, and other services to exporters of handicraft items.

Marketing Assistance Scheme: Provides cash incentives for engagement in trade fairs and exhibitions.

Credit Linked Capital Subsidy Scheme (CLCSS): Offers subsidies relating to costs of technology and other various enhancements of production lines.

 

Conclusion 

 

Doing business in export, especially handicrafts export is a great opportunity and has a lot of potential for growth in India. Through adherence to this guide and where relevant acquiring the necessary licenses and permits, one can be able to create a viable business venture that does not only generate income but also encourages the local craft makers and upholds cultural art. Applying a good technique, your handicrafts export company can have a successful business throughout the world and introduce Indian cultural values.