Are you about starting a plastic bag company? If YES, here is a complete sample biodegradable plastic bag manufacturing business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a biodegradable plastic bag manufacturing company. We also took it further by analyzing and drafting a sample biodegradable plastic bag marketing plan template backed up by actionable guerrilla marketing ideas for biodegradable plastic bag manufacturing companies. So let’s proceed to the business planning section.
The rule of thumb in choosing a business to launch is to look out for a business whose products or services are needed in our everyday life.
One of such businesses is a biodegradable plastic bag manufacturing business. It is a fact that biodegradable plastic bags are used by the rich as well as the poor because it is environmental friendly and supports the global warming drive.
Biodegradable plastic bag manufacturing business is indeed a viable business that an aspiring entrepreneur with the required startup capital can successfully launch. If you are interested in starting a biodegradable plastic bag manufacturing company, then you would find this sample biodegradable plastic bag manufacturing company business plan template quite useful.
A Sample Biodegradable Plastic Bag Manufacturing Business Plan Template
1. Industry Overview
The retailing industry has fully embraced the use of biodegradable plastic bags due to the fact that the world is going the way of climate change. This goes to show that there is indeed a very large market for biodegradable plastic bags in our world; hence loads of investors are pitching their tent in the biodegradable plastic bag manufacturing industry.
Biodegradable plastic bag manufacturers are part of the bioplastics manufacturing industry and players in this industry manufacture bioplastics, which are organic plastics derived from renewable biomass sources. Designed to biodegrade, bioplastics are made from sources such as vegetable oil, cornstarch, pea starch or microbiota.
If you are a follower of happenings in the Bioplastics Manufacturing industry, you will notice that the industry experienced steady growth over the five years to 2018. Concerns over the future of petroleum-based plastics supported demand for bioplastics that are recyclable and sustainable.
Furthermore, volatility in the world price of crude oil influenced major plastics producers to search for an alternative. Rising environmental awareness during the period encouraged the government and large companies to promote the use of bioplastics, directly benefiting the industry.
The industry is still in its early stages, leading to high expenditure on research and development. Over the five years to 2023, IBISWorld expects that a strong economic environment, expansion into new markets and positive legislation will benefit demand for industry products.
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.
Statistics has it that in the united states of America, the Bioplastic Manufacturing industry generates over $469 million annually from more than 124 registered and licensed bioplastic (biodegradable plastic bags) manufacturing companies.
The industry is responsible for the employment of over 529 people. Experts project the industry to grow at a 4.5 percent annual rate within 2013 and 2018. The establishment in this industry that has a dominant market share in the United States of America is NatureWorks.
A recent report published by IBISWorld shows that the Bioplastics Manufacturing industry is in the growth phase of its economic life cycle. The report also stated that the industry is expected to introduce new products, reach new markets and experience an influx of new participants.
The industry’s contribution to the overall economy, as measured by industry value added (IVA), is forecast to grow at an annualized rate of 2.0 percent during the 10-year period to 2023. During the same period, US GDP is expected to grow at an annualized rate of 2.2 percent. This indicates that the Bioplastics Manufacturing industry is expected to grow near the same rate as the US economy.
Over and above, biodegradable plastic bags manufacturing business is a profitable business and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale or you can choose 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.
2. Executive Summary
Green Zone® Biodegradable Plastic Bags Manufacturing Co is a US registered biodegradable plastic business that will be located in Concord – New Hampshire. We have been able to lease a facility that is big enough (a 10 thousand square foot facility) to fit into the kind of company that we intend establishing.
Green Zone® Biodegradable Plastic Bags Manufacturing Co will be involved in the manufacturing of a wide range of biodegradable plastic bags. 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 biodegradable plastic bag 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.
Green Zone® Biodegradable Plastic Bags Manufacturing Co will ensure that all biodegradable plastic bags that leave our factory are of the highest quality. We want to build a business with a wide range of clientele base that cut across businesses in the fast-moving consumer goods (FMCG) sector.
Green Zone® Biodegradable Plastic Bags Manufacturing Co 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.
Green Zone® Biodegradable Plastic Bags Manufacturing Co is owned by Eric Moore. Eric Moore has a B.Engr. in Production Engineering, with over 12 years’ experience in the bioplastic manufacturing industry, working for some of the leading brands in the United States.
3. Our Products and Services
Green Zone® Biodegradable Plastic Bags Manufacturing Co is in the industry to manufacture a wide range of biodegradable plastic bags.
We are set to service 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. Our product offerings are listed below;
- Customized biodegradable plastic bags for events
- Biodegradable plastic bags for food storage
- Biodegradable plastic bags for grocery
- Biodegradable plastic bags for trash
- Biodegradable plastic bags for packaging
4. Our Mission and Vision Statement
- Our vision is to become the leading brand in the bioplastic manufacturing industry in New Hampshire and to establish a one stop biodegradable plastic bag manufacturing company.
- Our mission is to establish a world – class biodegradable plastic bag manufacturing company whose products will not only be used in the FMCG sector in the United States of America, but also be exported to other countries of the world.
Our Business Structure
Our intention of starting a biodegradable plastic bag manufacturing company is to build a standard biodegradable plastic bag manufacturing company in Concord – New Hampshire. Although our company might not be as big as NatureWorks, but we will ensure that we put the right structure in place that will support the kind of growth that we have in mind.
We will make sure that we employ 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. 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
- Merchandise Manager
- Sales and Marketing Manager
- Biodegradable Plastic Bags Designers and Makers
- Customer Services Executive
5. Job 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, appraising job results and developing incentives
- 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
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
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.
- Defines job positions for recruitment and managing interviewing process
- Carries out 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.
- Responsible for managing the daily activities in the factory
- Ensures that proper records of biodegradable plastic materials and 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
- Supervises the workforce in the factory.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Helps to ensure consistent quality of biodegradable plastic bag making raw materials are purchased and used
- Responsible for the purchase of biodegradable plastic bag raw materials for the organizations
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Sales and Marketing Manager
- 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
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps increase sales and growth for the company
Biodegradable Plastic Bag Designers and Makers
- Responsible for designing and manufacturing customized biodegradable plastic bags
- Responsible for designing and manufacturing biodegradable plastic bags for food storage
- Responsible for designing and manufacturing biodegradable plastic bags for grocery
- Responsible for designing and manufacturing biodegradable plastic bags for trash
- Responsible for designing and manufacturing biodegradable plastic bags for packaging
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- 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
6. SWOT Analysis
Green Zone® Biodegradable Plastic Bags Manufacturing Co plans to become one of the leading biodegradable plastic bag manufacturing companies in the United States of America and we are aware that it will take the right business concept, management and organizational structure to achieve our goal.
We know that there are several biodegradable plastic bag manufacturing companies all over the United States of America, 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 well equipped to confront our threats.
Green Zone® Biodegradable Plastic Bags Manufacturing Co 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 Green Zone® Biodegradable Plastic Bags Manufacturing Co;
Our main strength lies in the quality of our finished bags, the power of our team and the well – equipped biodegradable plastic bag manufacturing factory that we own.
We have a team of highly trained and experienced staff members that can produce top notch biodegradable plastic bags. We are well positioned in the heart of Concord – New Hampshire and we know we will attract loads of clients from the first day we open our factory.
A major weakness that may count against us is the fact that we are a new biodegradable plastic bag manufacturing company and we don’t have the financial capacity to compete with multi – million dollar companies in the industry. So also, we may not have enough cash reserve to promote our business the way we would want to do.
The opportunities for a business such as ours are unlimited due to the rising environmental awareness. Though demand has increased, it has not translated to higher profit margins and strong demand from downstream customers. 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.
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 biodegradable plastic 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.
7. MARKET ANALYSIS
- Market Trends
One major trend in this 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 limit the use of materials such as nylon bags and polythene because of environmental hazard hence biodegradable plastic bags have become a good substitute.
As a matter of fact, the growing pollution from petroleum-based plastics bags and similar products is negatively affecting the environment. The increasing dependence of the medical and food industry on environmental-friendly plastic packaging is a notable factor catalyzing the market demand for biodegradable plastics bags and sacks.
The intensifying regulations associated to the disposal of traditional plastics in different developed and developing countries is a top factor drawing attention to the industry demand for these bags.
Extensive advances made in manufacturing technologies and the use of a variety of additive materials are likely to improve the biodegradability and composability of these bags, thereby unlocking exciting avenues during the assessment period.
Lastly, as part of marketing strategies, biodegradable plastic bag manufacturing companies now ensure that they go beyond mass production to producing customized biodegradable plastic bags for bigger corporations who are in the fast-moving consumer goods (FMCG) sector.
8. Our Target Market
There are hardly any pharmaceutical stores, departmental stores, groceries stores, electronic stores, supermarkets and boutique et al that do not make use of biodegradable plastic bags for packaging goods bought from their stores.
In view of that, we have positioned our 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 bioplastic manufacturing industry to supply our products to the following fast-moving consumer goods (FMCG) organizations;
- Departmental Stores
- Groceries Stores
- Pharmaceutical Stores
- Shoe manufacturing companies
- Fast food restaurants
Our competitive advantage
A close examination of the bioplastic 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 stiff competition and we are prepared to compete favorably with other leading biodegradable plastic bag manufacturing companies in the United States.
Our biodegradable plastic 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 space that can accommodate well over 30 cars/trucks per time.
Our ability to negotiate successfully with regulators, optimum capacity utilization, superior financial management and debt management are part of the competitive advantages we will be bringing to the table.
One thing is certain, we will ensure that we manufacture high quality biodegradable plastic bags in our factory at all times. 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 in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.
We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Green Zone® Biodegradable Plastic Bags Manufacturing Co is in business to manufacture and supply biodegradable plastic bags in the United States of America and other parts of the world. Green Zone® Biodegradable Plastic Bags Manufacturing Co will generate income by selling the following products;
- Customized biodegradable plastic bags for events
- Biodegradable plastic bags for food storage
- Biodegradable plastic bags for grocery
- Biodegradable plastic bags for trash
- Biodegradable plastic bags for packaging
10. Sales Forecast
The bioplastic manufacturing industry 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 months of operation and grow the business and our clientele base.
We have been able to examine the bioplastic manufacturing industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.
Below are the sales projection for Green Zone® Biodegradable Plastic Bags Manufacturing Co, it is based on the location of our business and other factors as it relates to biodegradable plastic bag manufacturing startups in the United States;
- First Fiscal Year: $250,000
- Second Fiscal Year: $650,000
- Third Fiscal Year: $1.2 million
N.B: This projection was 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 biodegradable plastic bags 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
Before choosing a location for Green Zone® Biodegradable Plastic Bags Manufacturing Co we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become one of the preferred choice for businesses not only in New Hampshire, but also throughout the United States.
We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.
We hired experts who have good understanding of the bioplastic 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 summary, Green Zone® Biodegradable Plastic Bags Manufacturing Co will adopt the following sales and marketing approach to win customers over;
- Introduce our biodegradable plastic bag manufacturing company by sending introductory letters alongside our brochure to manufacturing organizations, stores and key stake holders in New Hampshire and other parts of the United States
- Ensure that we manufacture a wide range of biodegradable plastic bags
- 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 Concord – New Hampshire
- 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)
11. Publicity and Advertising Strategy
Even though our biodegradable plastic bag manufacturing company is well positioned, we will still go ahead to intensify publicity for the business.
Green Zone® Biodegradable Plastic Bags Manufacturing Co 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.
Here are the platforms we intend leveraging on to promote and advertise Green Zone® Biodegradable Plastic Bags Manufacturing Co;
- Place adverts on community based newspapers, radio and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Concord – New Hampshire
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our biodegradable plastic 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 wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to biodegradable plastic bag manufacturing companies, it is normal for consumers to go to places where they can get these bags at cheaper prices which is why big players in the industry like NatureWorks will always attract loads of clients.
We know we don’t have the capacity to compete with NatureWorks but we will ensure that the prices and quality of all our bags are competitive with what is obtainable amongst biodegradable plastic bags manufacturing companies within our level.
- Payment Options
The payment policy adopted by Green Zone® Biodegradable Plastic Bags Manufacturing Co 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 Green Zone® Biodegradable Plastic Bags Manufacturing Co will make available to her clients;
- Payment via bank transfer
- 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 the purchase of our biodegradable plastic bags without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup 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.
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 biodegradable plastic bag manufacturing business; it might differ in other countries due to the value of their money. These are the key areas where we will spend our startup 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 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 – $150,000
- 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) – $150,000
- 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
- Miscellaneous: $10,000
We would need an estimate of $550,000 to successfully set up our biodegradable plastic bag manufacturing company in Concord – New Hampshire.
Generating Startup Capital for Green Zone® Biodegradable Plastic Bags Manufacturing Co
Green Zone® Biodegradable Plastic Bags Manufacturing Co is owned and financed by Eric Moore. He has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup 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 $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Green Zone® Biodegradable Plastic Bags Manufacturing Co is to build a business that will survive off its own cash flow without 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 quality biodegradable plastic bags and to retail them a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Green Zone® Biodegradable Plastic Bags Manufacturing Co will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
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.
- 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 (biodegradable plastic 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
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of machines and equipment: Completed
- Purchase of 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
- Compilation of the list of products that will be manufacturing: Completed
- Establishing business relationship with vendors: In Progress