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How to Start Paper Clip Manufacturing Business

Do you want to start a paper clip or gem clip manufacturing business? Find here a detailed paper clip making business plan sample checklist for your ready reference.

If you are searching for a home-based small-scale manufacturing business opportunity, then you can consider this one. Basically, it is a low-cost business. And generate good revenue for self-employment as well as a small business. Additionally, at any moment of time, you can expand your small venture too.

Basically, the manufacturing process of the paper clip is very simple. Additionally, with a single machine, you can start and run this business. The raw material for producing paper clip is available abundantly.

Paper Clip Manufacturing Market Opportunity

Basically, gem clips are essential items for organizing loose papers. Therefore, these are popular stationery items in several institutions. The list includes schools, colleges, universities, offices, and administrative institutions also.

Generally, these clips come as steelmaking. Additionally, it comes with different types of designs. However, it is simple, elegant, and surpassingly functional. Actually, it helps to organize important papers with a smooth stylish look. Therefore, this type of clips has huge demand globally.

Paper Clip Manufacturing Business Plan

In initiating this business, you must conduct market research prior. Specifically, you must find out the demand-supply ratio in your area. Additionally, you must identify the specific design, length, and weight of the most popular paper clips. It will all help you in crafting a solid business plan and starting the business smoothly. Next, we will discuss some of the most crucial aspects of the business plan checklist.

Craft Business Plan

Crafting a business plan is a must. You will need to include the financials also. Basically, a well-written business plan helps to get finance from the banks or from other potential investors. In the business plan, mention your business objective, operation strategy, and marketing policy.

Registration & Licensing

Generally, this type of manufacturing business doesn’t demand any specific licenses or permissions. However, you must check it with your state Government rule. Additionally, register your business with a suitable organization form. Talk to a tax consultant for tax registration and upcoming compliances.

Arrange Finance

Basically, this type of small-scale business demands startup capital investment both for the fixed and working capital expenses. Therefore, you must arrange the capital for starting this business. If you already have that finance well, otherwise you can apply for a loan. You can ask the banks or venture capitalists to invest in your business.

Setup the Unit

Now, you will need to establish the unit. If you have space in the home, you can set up the unit there. Otherwise, you have to acquire a location for starting the manufacturing operation. Generally, you can start a small-scale manufacturing operation with a 500 Sq Ft area. However, it depends on the size of your business. The unit must have an electricity connection, wide entrance, and water resources for domestic use.

Paper Clip Making Machine

Several automatic paper clip making machines are available in the market. Depending on the desired quality and production output, you will need to select the right machinery for your business. Normally, you can produce 100 – 110 pieces of paper clips out of these machines. By only changing the die set you can make different size clips such as 24 mm to 35 mm.

Find Paper Clip Machine Manufacturers

The best way to buy paper clip machine manufacturers is to contact local industrial machine sellers. Presently, there are many online marketplaces that helps you to connect manufacturers. You can check sites like,, etc

Procure Raw Materials

Generally, the requirement of raw materials depends on the specific type of finished goods you want to produce. If you want to produce a steel paper clip, then you have to procure Galvanized Stainless Steel wire. However, the wire comes with a different gauge. And definitely, it comes with a different price. If you want to make colorful paper clips then you will need to gather colorful rubber tubes from the local wholesale market.

Manufacturing Process

The paper clip manufacturing process is quite simple. The process begins with a huge spool of galvanized steel wire. First of all, you need to feed the end of the wire into the paper clip machine.

Actually, a finished paper clip has three bends. The machine forms the wire into these three bends by cutting it and passing it by three small wheels. The wheels are slightly roughened, and catch the length of the wire as it passes.

The first wheel turns the wire 180 degrees, making the first bend, the second makes the next bend, and the third wheel makes the final turn. The entire process is so quick, the machine can churn out hundreds of clips a minute.

You will need to pack the finished paper clips into the boxes. Then seal the boxes. At the same time, you can operate at least 10 automatic paper clip making machines.