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A Sample Paper Bag Making Business Plan Template

Are you about starting a paper bag making business? If YES, here is a complete sample paper bag making business plan template & feasibility report you can use for FREE.

Okay, so we have considered all the requirements for starting a paper bag making business. We also took it further by analyzing and drafting a sample paper bag making marketing plan template backed up by actionable guerrilla marketing ideas for paper bag making businesses. So let’s proceed to the business planning section.

There are several business opportunities that stare at us no matter the part of the world that we may live in. The truth is that if you want to become a millionaire faster than you think, then you best bet may be to start a business as against keeping a nine to five job.

Although starting a new business is not as easy as it sounds, but the truth is that, if you determined and focused, you can successfully build a business from the scratch to become a national phenomenon. As an aspiring entrepreneur who is looking towards starting a business, one of the businesses you can consider starting is to go into paper bag manufacturing.

It is a fact that there are large markets for paper bags and the likes. All you need to do is to ensure that you conduct thorough feasibility studies and market survey before launching the business. If you truly want to start your paper bag making business on a right footing, then the business plan template below will help you achieve that.

A Sample Paper Bag Making Business Plan Template

  • Business Overview

Paper bag is one commodity that is used mostly in the retailing industry for packaging stuffs that are bought from departmental stores, supermarkets, and in the open market; although nylon bags cum polythene bags are also used, but most people prefer paper bags for obvious reasons. This goes to show that there is indeed a very large market for paper bags in our world; hence loads of investors cum aspiring entrepreneur are pitching their tent in the paper bag manufacturing industry.

Businesses in the Cardboard Packaging and Paper Bag Manufacturing industry manufactures paper bags in various sizes and designs for the purpose of carrying stuffs that are bought from departmental stores, supermarkets, pharmacy stores and in the open market.

Aside from the manufacturing of paper bags, companies in this line of business also manufacture cardboard packaging and paper bags and sacks. Cardboard packaging includes corrugated and solid cardboard boxes, folding cartons and customized cardboard containers.

In recent times, the conditions in the Cardboard Packaging and Paper Bag Manufacturing industry have been relatively volatile. The revenue generated in the industry is heavily influenced by national demand for consumer goods, as the majority of the products that are produced in the industry are sold for downstream use in the fast-moving consumer goods (FMCG) sector.

The Cardboard Packaging and Paper Bag Manufacturing industry is indeed a major sector of the economy of most countries in the world (United States of America, Italy, France, United Kingdom, China and India et al). Statistics has it that in the United Kingdom alone, the Cardboard Packaging and Paper Bag Manufacturing industry generates a whooping sum of well over $4 billion annually from more than 483 registered and licensed big scale cardboard packaging and paper bag manufacturing companies scattered all around the United Kingdom.

The industry is responsible for the employment of well over 26,885 people. Experts project the industry to grow at a 1.5 percent annual rate. The establishment in this industry that has a dominant market share in the United Kingdom are; DS Smith Packaging Ltd, SAICA Pack UK Limited and Smurfit Kappa UK Ltd.

Over and above, the Cardboard Packaging and Paper Bag Manufacturing industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale or you can chose to start on a large scale with standard manufacturing factories both in the United States of America and in countries in Asia where you can get cheaper labor and raw materials.

Paper Bag Making Business Plan – Executive Summary

James Whitney® Packaging Company is a standard and registered paper bag and cardboard packaging manufacturing company that will be located in Saint Paul – Minnesota; in an ideal location highly suitable for the kind of business we want to establish. We have been able to lease a facility that is big enough (a 20 thousand square foot facility) to fit into the design of the kind of standard paper bag and cardboard manufacturing company that we intend launching.

James Whitney® Packaging Company will be involved in the manufacturing of a wide range of paper bags and cardboard packing cum casing for both corporate and individual clients. We are set to services a wide range of clientele not just in the United States of America, but also all parts of the world.

We are aware that there are several large and small paper bag and cardboard packaging manufacturing companies all around the United States of America, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.

James Whitney® Packaging Company will ensure that all the paper bags and cardboard packaging materials that leave of factory are of the highest quality and highly durable and affordable. We want to build a business with a wide range of clientele base that cut across business in the fast-moving consumer goods (FMCG) sector. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to.

James Whitney® Packaging Company will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.

James Whitney® Packaging Company is a family business that is owned by James Whitney and his immediate family members. James Whitney has a Diploma in paper bag cum cardboard packaging Making and a B.Sc. in Business Administration, with well over 10 years of experience in the cardboard packing and paper bag manufacturing industry, working for some of the leading brand in the United States. He will be bringing in his vast hands – on experience to build James Whitney® Packaging Company to become a top brand.

  • Our Product Offering

James Whitney® Packaging Company is in the cardboard packing and paper bag manufacturing industry to manufacture a wide range of paper bags and cardboard packing cum casing for both corporate and individual clients. We are set to services a wide range of clientele not just in the United States of America, but also all parts of the world and of course to make profits, which is why we will ensure we go all the way to give our clients and potential clients options.

We will do all that is permitted by the law of the United States to achieve our business goal, aim and ambition of starting the business. Our product offerings are listed below;

  • Manufacturing customized paper bags
  • Manufacturing paper bags for food storage bags
  • Manufacturing paper bags for grocery bags
  • Manufacturing paper bags for merchandise bags
  • Manufacturing paper bags for trash bags
  • Manufacturing paper bags for packaging
  • Manufacturing corrugated cardboard boxes, cartons and cases
  • Manufacturing non-corrugated cardboard boxes, cartons and cases
  • Manufacturing corrugated cardboard in rolls or sheets

Our Vision Statement

Our vision is to become the leading brand in the cardboard packaging and paper bag manufacturing industry in Minnesota and to establish a one stop cardboard packaging and paper bag manufacturing company.

  • Our Mission Statement

Our mission is to establish a world – class cardboard packaging and paper bag manufacturing company whose products will not only be used by both small and big corporations in the FMCG sector in the United States of America, but also be exported to other countries of the world.

  • Our Business Structure

James Whitney® Packaging Company do not intend to start a cardboard packaging and paper bag manufacturing business in a small scale; our intention of starting a cardboard packaging and paper bag manufacturing company is to build a standard and one stop cardboard packaging and paper bag manufacturing company in Saint Paul – Minnesota.

Although our cardboard packing and paper bag manufacturing company might not be as big as DS Smith Packaging Ltd, SAICA Pack UK Limited and Smurfit Kappa UK Ltd et al, but we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)
  • Factory Manager
  • Human Resources and Admin Manager
  • Merchandize Manager
  • Sales and Marketing Manager
  • Cardboard Packing and Paper Bags Designers and Making Experts
  • Accountants / Cashiers
  • Customer Services Executive

Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board.

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
  • Defines job positions for recruitment and managing interviewing process
  • Carrying out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Factory Manager:

  • Responsible for managing the daily activities in the cardboard packing and paper bag manufacturing factory
  • Ensures that proper records of cardboard packing materials and paper bags are kept and warehouse does not run out of finished products
  • Ensures that the factory is in tip top shape and easy to locate
  • Interfaces with third – party suppliers (vendors) of raw materials
  • Controls cardboard packaging and paper bag distribution and supply inventory
  • Supervise the workforce in the cardboard packing and paper bag manufacturing factory.

Merchandize Manager

  • Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Helps to ensure consistent quality of cardboard packing and paper bag making raw materials are purchased and used
  • Responsible for the purchase of cardboard packing and paper bag raw material for the organizations
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
  • Ensures that the organization operates within stipulated budget.

Sales and Marketing Manager

  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps increase sales and growth for the company

Cardboard Packing and Paper Designers and Making Experts

  • Responsible for designing and manufacturing customized paper bags
  • Responsible for designing and manufacturing  paper bags for food storage bags
  • Responsible for designing and manufacturing paper bags for grocery bags
  • Responsible for designing and manufacturing paper bags for merchandise bags
  • Responsible for designing and manufacturing paper bags for trash bags
  • Responsible for designing and manufacturing paper bags for packaging
  • Responsible for designing and manufacturing corrugated cardboard boxes, cartons and cases
  • Responsible for designing and manufacturing non-corrugated cardboard boxes, cartons and cases
  • Responsible for designing and manufacturing corrugated cardboard in rolls or sheets

Accountant / Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries

Paper Bag Making Business Plan – SWOT Analysis

James Whitney® Packaging Company is in business to become one of the leading cardboard packing and paper bag manufacturing companies in the United States of America and we are fully aware that it will take the right business concept, management and organization – structure to achieve our goal.

We are quite aware that there are several large and small scale cardboard packing and paper bag manufacturing companies all over the United States of America and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

James Whitney® Packaging Company employed the services of an expert HR and Business Analyst with bias in the manufacturing industry to help us conduct a thorough SWOT analysis and to help us create a business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for James Whitney® Packaging Company;

  • Strength:

Our core strength lies in the high quality of our finished cardboard packing materials and paper bags, the power of our team and the state of the art and well – equipped cardboard packing and paper bag manufacturing factory that we own.

We have a team of highly trained and experienced cardboard packing and paper bag designers and makers and support staff members that can go all the way to produce top notch cardboard packing materials and paper bags. We are well positioned in the heart of Saint Paul – Minnesota and we know we will attract loads of clients from the first day we open our factory.

  • Weakness:

A major weakness that may count against us is the fact that we are a new cardboard packing and paper bag manufacturing company and we don’t have the financial capacity to compete with multi – million dollars companies in the industry when it comes to manufacturing cardboard packing materials and paper bags at a rock bottom prices. So also, we may not have enough cash reserve to promote our business the way we would want to do.

  • Opportunities:

The fact that we are going to be operating our cardboard packing and paper bag manufacturing company in Saint Paul – Minnesota provides us with unlimited opportunities to sell our products to a large number of small scale business and large corporations.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be expecting from us; we are well positioned to take on the opportunities that will come our way.

  • Threat:

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new cardboard packaging and paper bag manufacturing company in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.

Paper Bag Making Business Plan – MARKET ANALYSIS

  • Market Trends

In recent time, the conditions in the Cardboard Packaging and Paper Bag Manufacturing industry have been relatively volatile. The revenue generated in the industry is heavily influenced by national demand for consumer goods, as the majority of the products that are produced in the industry are sold for downstream use in the fast-moving consumer goods (FMCG) sector.

One major trend in the cardboard packing and paper bag manufacturing industry is that most players are leveraging on the fact that states in the US and even countries of the world are passing legislation that will put limit to the use of materials such as nylon bags and polythene bags et al because of environmental hazard hence paper bags and cardboard packing materials have become a good substitute.

Lastly, as part of marketing strategies, cardboard packaging and paper bag manufacturing companies now ensure that they go beyond mass production of paper bags and cardboard packing materials to producing customized paper bags and cardboard packing materials for bigger corporations who are in the fast-moving consumer goods (FMCG) sector.

  • Our Target Market

When it comes to mapping out strategies for a business such as cardboard packing and paper bag manufacturing business, there is indeed a straightforward market. There are hardly any pharmaceutical stores, departmental stores, groceries stores, electronic stores, supermarkets and boutique et al that do not make use of paper bags or cardboard boxes for packaging goods bought from their stores

In view of that, we have positioned our cardboard packing and paper bags manufacturing company to service a wide range of clientele in the United States of America and other parts of the world. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.

We in the cardboard packing and paper bag manufacturing industry to supply our products to the following fast-moving consumer goods (FMCG) organizations;

  • Departmental Stores
  • Groceries Stores
  • Pharmaceutical Stores
  • Electronic Stores
  • Supermarkets
  • Boutiques
  • Mobile phones and accessories stores

Our Competitive Advantage

A close examination of the cardboard packaging and paper bag manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative with your designs and market approach, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with other leading cardboard packing and paper bag manufacturing companies in the United States and the globe.

James Whitney® Packaging Company is launching a standard cardboard packaging and paper bag manufacturing company that will indeed become the preferred choice for businesses in the fast-moving consumer goods (FMCG) sector both in the United States of America.

Our cardboard packing and paper bag manufacturing company is located in an ideal property highly suitable for the kind of manufacturing company that we want to run. We have enough parking spaces that can accommodate well over 30 cars / trucks per time.

One thing is certain, we will ensure that we manufacture high quality and durable cardboard packing and paper bag products in our factory at all times. One of our business goals is to make James Whitney® Packaging Company a one stop cardboard packing and paper bag manufacturing company. Our excellent customer service culture, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups cardboard packing and paper bag manufacturing companies) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

Paper Bag Making Business Plan – SALES AND MARKETING STRATEGY

  • Sources of Income

James Whitney® Packaging Company is in business to manufacture and supply cardboard packing and paper bags in the United States of America and other parts of the world. We are in the cardboard packing and paper bag manufacturing industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.

James Whitney® Packaging Company will generate income by selling the following products;

  • Manufacturing customized paper bags
  • Manufacturing paper bags for food storage bags
  • Manufacturing paper bags for grocery bags
  • Manufacturing paper bags for merchandise bags
  • Manufacturing paper bags for trash bags
  • Manufacturing paper bags for packaging
  • Manufacturing corrugated cardboard boxes, cartons and cases
  • Manufacturing non-corrugated cardboard boxes, cartons and cases
  • Manufacturing corrugated cardboard in rolls or sheets

Sales Forecast

The cardboard packaging and paper bag manufacturing industry is one industry that has a wide range of customers that cut across various manufacturing industries especially players in the fast-moving consumer goods (FMCG) sector.

We are well positioned to take on the available market in the United States of America and of course the rest of the world and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the cardboard packing and paper bag manufacturing industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Saint Paul – Minnesota.

Below are the sales projection for James Whitney® Packaging Company, it is based on the location of our business and other factors as it relates to cardboard packaging and paper bag manufacturing start – ups in the United States;

  • First Fiscal Year-: $350,000
  • Second Fiscal Year-: $750,000
  • Third Fiscal Year-: $1 million

N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor manufacturing or retailing same shoe and footwear products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Prior to settling for a location for James Whitney® Packaging Company we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become one of the preferred choice for businesses not only in Saint Paul – Minnesota, but also throughout the United States and the globe. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the cardboard packing and paper bag manufacturing industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in the United States of America.

In other to continue to be in business and grow, we must continue to manufacture and sell the cardboard packing materials and paper bags that we produce which is why we will go all out to empower or sales and marketing team to deliver. In summary, James Whitney® Packaging Company will adopt the following sales and marketing approach to win customers over;

  • Open our cardboard packaging and paper bag manufacturing company in a grand style with a party for all.
  • Introduce our cardboard packaging and paper bag manufacturing company by sending introductory letters alongside our brochure to manufacturing organizations, stores and key stake holders in Saint Paul – Minnesota and other parts of the United States
  • Ensure that we manufacture a wide range of paper bags and cardboard packing materials
  • Make use of attractive hand bills to create awareness and also to give direction to our factory
  • Position our signage / flexi banners at strategic places around Saint Paul – Minnesota
  • Position our greeters to welcome and direct potential customers
  • Create a loyalty plan that will enable us reward our regular customers
  • Engage on road shows within our neighborhood to create awareness for our products
  • List our business and products on yellow pages ads  (local directories)
  • Leverage on the internet to promote our products
  • Engage in direct marketing and sales
  • Encourage the use of Word of mouth marketing (referrals)

Paper Bag Making Business Plan – Publicity and Advertising Strategy

Despite the fact that our cardboard packing and paper bag manufacturing company is well positioned, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our cardboard packaging and paper bag manufacturing company.

James Whitney® Packaging Company has a long term plan of opening our factories in key locations in Asia, South America and Africa which is why we will deliberately build our brand to be well accepted in the United States of America before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise James Whitney® Packaging Company;

  • Place adverts on community based newspapers, radio stations and TV stations.
  • Encourage the use of word of mouth publicity from our loyal customers
  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
  • Ensure that our we position our banners and billboards in strategic positions all around Saint Paul – Minnesota
  • Distribute our fliers and handbills in target areas in and around our neighborhood
  • Contact corporate organizations, and stores by calling them up and informing them of James Whitney® Packaging Company and the products we manufacture and sell
  • Advertise our cardboard packing and paper bag manufacturing company in our official website and employ strategies that will help us pull traffic to the site
  • Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to cardboard packaging and paper bag manufacturing company, it is normal for consumers to go to places where they can get cardboard packing and paper bags at cheaper price which is why big player in the shoe and footwear manufacturing industry like DS Smith Packaging Ltd, SAICA Pack UK Limited and Smurfit Kappa UK Ltd et al will always attract loads of corporate and individual clients.

We know we don’t have the capacity to compete with DS Smith Packaging Ltd, SAICA Pack UK Limited and Smurfit Kappa UK Ltd et al but we will ensure that the prices and quality of all our cardboard packing and paper bags products are competitive with what is obtainable amongst shoe and footwear manufacturing companies within our level.

  • Payment Options

The payment policy adopted by James Whitney® Packaging Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that James Whitney® Packaging Company will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via Point of Sale Machine (POS)
  • Payment via online bank transfer
  • Payment via check
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products.

  • Start – Up Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a cardboard packing and paper bag manufacturing business; it might differ in other countries due to the value of their money. This is the key areas where we will spend our start – up capital on;

  • The Total Fee for Registering the Business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of Micah Smith® Shoes & Footwear, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The total cost for hiring Business Consultant – $2,500.
  • The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
  • The total cost for long – term leasing of a standard warehouse / factory – $250,000
  • The total cost for remodeling the warehouse / factory – $20,000.
  • Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
  • The total cost for Start-up inventory (purchase of tools and equipment and the purchase of raw materials inclusive)  – $250,000
  • The total cost for counter area equipment – $9,500
  • The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The total cost for the purchase and installation of CCTVs: $10,000
  • The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
  • The total cost of launching a Website: $600
  • The total cost for our opening party: $7,000
  • Miscellaneous: $10,000

We would need an estimate of $950,000 to successfully set up our cardboard packing and paper bag manufacturing business in Saint Paul – Minnesota. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for James Whitney® Packaging Company

James Whitney® Packaging Company is a family business that is solely owned and financed by James Whitney and his immediate family members. We do not intend to welcome any external business partners, which is why we have decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $700,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

Paper Bag Making Business Plan – Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting James Whitney® Packaging Company is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to manufacture durable and quality cardboard packing materials and paper bags and to retail them a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

James Whitney® Packaging Company will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility and remodeling the facility (cardboard packing and paper bag manufacturing factory): In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of machines and equipment: Completed
  • Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Compilation of the list of products that will be manufacturing: Completed
  • Establishing business relationship with vendors – supplier of cardboard packing and paper bag making raw materials, key stakeholders and suppliers of paper bags and cardboard packing materials: In Progress
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