Start Your Stationery Shop Business in 7 Steps

If you're wondering how to start a stationery shop business in India, you have already entered an evergreen industry which caters to both the education and office needs. The stationery business holds a significant growth potential with over 20 crore school students and the rise of e-commerce businesses. The world of stationeries is vast and an attraction to many with their notebooks to pens to decorative items and office supplies and many more. If you are planning to start a stationery shop or invest in a franchise, this blog will guide you on how to open a stationery shop business from the initial step to the nuances of the business.

What is a Stationery Shop?

A stationery shop typically sells paper-based products like sheets, cards, envelopes and different kinds of writing supplies like pens, pencils, erasers along with business stationery, journals, planners and photo albums. Nowadays stationery shops also sell various kind of artist colour paints, artists brushes, colour pencils etc, 

If you are planning to start a small stationery shop, few things need to be kept in mind.

• Business plan 
• Get a licence from your locality 
• Investment
• Rental space
• Inventory 
• Suppliers
• Hire manpower
• Utility - electricity
• Marketing & promotion

What is the scope of a stationery business in India?

A stationery business has huge scope in India. Both paper and non-paper items never run short of demand. The attractive and eye-catching stationery items are prevailing these days. All you need is a flawless plan and its strict implementation and you become unstoppable.

The scope of stationery business in India is on the rise and it is constantly evolving. There is always a demand for paper and non-paper items in the industry. The stationery market is evolving and the eye-catching stationery items are gaining increasing market share with a profit margin of 30-40%.

Stationery was popular with urban people in the past but with increasing education in rural areas, stationery has a big market in the rural markets as well. However, the premium stationery products are restricted to mainly the urban regions. The government had some educational schemes and distributed free stationery to encourage education in rural areas. 

How to Start a Small Stationery Shop in India?

Step 1 : Decide what you are going to sell?

You need to research and find out what products you are going to sell in your stationery shop. You can draft a business plan once you have decided on your product. Some key aspects of the business depend on your product like suppliers, target markets, promotions etc. 

A list of stationery items that can be sold for an idea -

• pens, notebooks, crayons, globes, charts, paints, markers, and other items in the school. You can get into contracts with schools and colleges.
• contact card specialists and provide them with the raw materials.
• craft materials like glitter, beads, ribbons, buttons, stickers, glue and other materials.
• general stationery shop that sells scissors, pens, pencils, tapes, gift wrappers, sheets etc.
• sell books to school and college students. This is a great way of enjoying the benefits of an oligopoly market.
• sell add-on services or software like logo generator solutions or graphic design tools like Adobe Photoshop.

For a small stationery shop, it is advisable to start with a small investment and expand later. Once you have decided on the product, follow these steps to structure your stationery shop business.

Step 2 : Market research 

Conduct a thorough research of the stationery industry when you are embarking on a stationery business idea where you need to consider customer needs and accordingly choose your products. A clear strategy as per the market needs is to be decided that is conveyed to the target audience through an effective medium. Your message should be clear but creative as well as convincing. 

Step 3 : Business Plan

A robust stationery shop business plan is a recipe for success in your business venture. A well structured business plan shall include information regarding every element of business like budget, investment, marketing plan, target audience, Unique Selling Proposition et al. The stationery shop business plan can also be used for pitching investors. 

Step 4 : Location 

The location of your small stationery shop is very important. Sales of your stationery items depend on the area you choose for a location and the accessibility for customers .A strategic position can boost sales of your corporate stationery if located in a retail space or in an urban locality. It is not advisable to sell premium stationery products in a rural area if you plan to shop there.

Step 5 : Financing your business

Arranging funding for your small stationery shop is one of the most difficult things in a business. For a small stationery shop, the budget would be low compared to a bigger enterprise. Prior to choosing a finance option for your business you need to estimate your stationery requirement.

For funding your stationery requirement you can pitch investors or check with banks and if you manage a small amount, it is recommended to start your small stationery shop business with it and gradually escalate it after a while. How to arrange funds will be discussed later in this blog.

Step 6 : Legalise your stationery business  

It is good to know that stationery shops in India don't need many licences when they start their businesses. You need not go through a tedious legal process to launch your stationery shop. The only documents you need are:

• Aadhar Card
• PAN Card
• Bank Account
• Shop Rental Agreement (if any)

Step 7 : Marketing

Marketing and promotion is a must for your business growth. You need to promote your stationery shop especially to your target audience. There are many ways in this digital age besides traditional vehicles to let people know about your stationery business. 

For online promotion you can use the following channels:

• Social Media Platforms 
• Google My Business
• E-Commerce Platforms
• WhatsApp Marketing
• Email Marketing:
• Influencer Collaborations
• SEO and Blogging
• Google and Facebook Ads

For offline promotion you can distribute pamphlets, put advertisements in newspapers, radio and television. 

You can refer to the stepwise guide on how to start a stationery shop business given above. Next we shall discuss how you can arrange finance for the same.

How can you arrange finance for your stationery shop business?

Listed are some finance options that entrepreneurs can be benefited from:

1. pitch to investors by presenting a solid business plan.
2. Non-Banking Finance Company (NBFC) can be approached 
3. Digital Finance platforms– You can get loans from fintech companies that work in collaboration with NBFCs. Small entrepreneurs usually use this source to obtain finance.
4. Venture Capitalists– If your plan is attractive and unique there are chances you can get funding from venture capitalists
5. The government is also supporting small businesses these days and has offered many schemes for SMEs. Such businesses enjoy exemption from taxes, interest waiver on loans.

What are the business models available to run a stationery shop business?

The business models are discussed below for you to decide on your stationery business:

• Retailer–The easiest and least expensive type of business is the retailer business. For this, you need to find a wholesale business to collect the inventory.
• Wholesale Business– This is a type of business where the products are sold in bulk. Retailers enter into contracts with wholesale business owners to supply them with the inventory.
• Franchise– You can own a franchise also. You need to conduct market research and if a particular franchise is not located nearby, you can go for it with a proper plan.
• Manufacturer– You can establish a factory and produce stationery items. This requires a huge investment.
• Online store – With the advancement of e-commerce, you can even open an online store for your stationery products. You just need to showcase your products online and sell them as you receive the order.

You can choose any of the above-mentioned options at your convenience and budget. You can always start a stationery business with a small investment and expand later. 

Conclusion

Stationery shops in India are businesses with enduring demand and have a growth potential with increasing educational and office requirements. Now is the right time to start a stationery shop business with careful planning, researching, choosing the right business tools and becoming a successful entrepreneur in this industry. Selecting the best location to promote your shop online, a stationery shop business can become a thriving venture catering to the growing needs of students and professionals across the country.

FAQs

Q1. How much does it cost to start a stationery business?

Ans. A modest stationery store will require an investment of 2 to 3 lakhs INR. This figure would be in the range of 6 to 8 lakhs for medium and big retailers.

Q2. What category is stationery?

Ans. Operating expenses: This is the most common category for office supplies, as they are necessary for the day-to-day running of the business. It includes items such as stationery, printer ink, and paper.

3. Is stationery business a good idea?

Ans. Stationery businesses can prove to be fairly profitable if done right. Just make sure that you do your research before setting up the shop so that you are aware of all the costs involved. Always stock good quality products so that your customers keep coming back to you.

Q4. How can I expand my stationery business?

Ans. A few ways to expand your stationery business:

• Create a Professional Website
• Leverage Social Media 
• Embrace Email Marketing
• Establish Local Partnerships
• Promote Eco-Friendly Practices
• Plan Back-to-School Campaigns
• Encourage Customer Reviews