Do you want to start a corrugated box company? If YES, here is a sample corrugated box manufacturing business plan template & FREE feasibility report.
It is a fact that corrugated boxes are used by a greater percentage of manufacturing and logistics companies. Corrugated box manufacturing business is indeed a profitable and thriving business that an aspiring entrepreneur with the required startup capital can successfully launch and grow from scratch to profitability.
If you are interested in starting a corrugated box manufacturing company, then you would find this sample business plan template highly useful.
A Sample Corrugated Box Manufacturing Business Plan Template
1. Industry Overview
Corrugated boxes are made up of corrugated paperboard that contains rows of air columns. The columns make the paper stronger than average cardboard with the air acting as a cushion for any items inside of them. The ridges inside offer strength and flexibility, as usually intended in packaging.
It is a known fact that corrugated box is one commodity that is used mostly in the retailing, manufacturing, shipping and logistics industry. This goes to show that there is indeed a very large market for this product; hence loads of investors are pitching their tent in the carton box and container manufacturing industry.
Businesses in the Cardboard Box and Container manufacturing industry basically converts purchased paper, paperboard and old corrugated containers into cardboard boxes, containers and similar packaging solutions. Industry operators produce corrugated and solid cardboard packaging for a range of sectors and industries, including manufacturing, agriculture, wholesale, shipping and retail, among others.
In recent time, the conditions in the Cardboard Box and Container 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.
Statistics has it that in the united states of America alone, the Cardboard Box and Container Manufacturing industry generates over $68 billion annually from more than 1,937 registered and licensed corrugated box manufacturing companies.
The industry is responsible for the employment of over 145,229 people. Experts project the industry to grew at a 0.6 percent annual rate between 2014 and 2019. The establishment in this industry that has a dominant market share in the United States of America are; WestRock Company, International Paper Company, Georgia-Pacific LLC and Packaging Corporation of America.
A recent report published by IBISWorld shows that the Cardboard Box and Container Manufacturing industry is the largest paper-converting industry in the United States. This industry is a significant consumer of paper, paperboard and old corrugated containers, servicing nearly every sector of the economy.
Industry operators produce cardboard boxes, containers and other packaging solutions, including shoe boxes, composite cans, mailing cases and milk cartons.
The industry has experienced slow but steady growth over the five years to 2019. Cardboard continues to be one of the most widely used materials for packaging and shipping. Furthermore, demand for industry products from downstream markets has increased, much of which is attributed to the increase in shipping box demand from online retailers.
The Cardboard Box and Container 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 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
Pack Partner® Corrugated Box Manufacturing Company, Inc. is a US registered corrugated box manufacturing company that will be located in Rio Rancho – New Mexico; in an ideal location that is 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 corrugated box manufacturing company that we intend establishing. Pack Partner® Corrugated Box Manufacturing Company, Inc. will be involved in the manufacturing of a wide range of corrugated boxes cum casing for both corporate and individual clients.
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. We are aware that there are several corrugated boxes 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.
Pack Partner® Corrugated Box Manufacturing Company, Inc. will ensure that all the boxes that leaves 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 cuts across businesses in the fast-moving consumer goods (FMCG) sector and shipping and logistics companies. 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.
Pack Partner® Corrugated Box Manufacturing Company, Inc. 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. Pack Partner® Corrugated Box Manufacturing Company, Inc. is a family business that is owned by Daniel Mason and his immediate family members.
Daniel Mason has a Diploma in carton box cum cardboard package Making and a B.Engr. in Production Engineering, with over 12 years’ experience in the cardboard packing and carton box manufacturing industry, working for some of the leading brands in the United States.
3. Our Products and Services
Pack Partner® Corrugated Box Manufacturing Company, Inc. is in the Cardboard Box and Container Manufacturing industry to manufacture a wide range of corrugated boxes and casing for clients. 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 give our clients and potential clients options.
Our product offerings are listed below;
- Manufacturing corrugated and solid fiber boxes
- Manufacturing folding corrugated boxes
- Manufacturing rigid-sided setup corrugated boxes
4. Our Mission and Vision Statement
- Our vision is to become the leading brand in the corrugated box manufacturing company in the United States of America.
- Our mission is to establish a world – class corrugated box 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
Our intention of starting a corrugated box manufacturing company is to build a standard corrugated box manufacturing company in Rio Rancho – New Mexico.
Although our corrugated box manufacturing company might not be as big as WestRock Company, International Paper Company, Georgia-Pacific LLC and Packaging Corporation of America et al, but we will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.
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
- Corrugated boxes Designers and Making Experts
- 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, and appraising job results
- Creating, communicating, and implementing 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
- 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.
- Defining 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
- Oversee the smooth running of the daily office activities.
- Responsible for managing the daily activities in the corrugated box manufacturing factory
- Ensures that proper records of corrugated boxes are kept and warehouse does not run out of finished products
- Ensure that the factory is in tip top shape and easy to locate
- Interfaces with third – party suppliers (vendors) of raw materials
- Control corrugated box distribution and supply inventory
- Supervise the workforce in the cardboard packing and carton box manufacturing factory.
- Manage vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Help to ensure consistent quality of corrugated box making raw materials are purchased and used
- Responsible for the purchase of corrugated box raw material for the organizations
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer purchases
- Identify, prioritize, and reach out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent the company in strategic meetings
- Help increase sales and growth for the company
Corrugated Box Designers
- Responsible for designing and manufacturing corrugated and solid fiber boxes
- Responsible for designing and manufacturing rigid-sided setup corrugated boxes
- 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
- Ensuring 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
Pack Partner® Corrugated Box Manufacturing Company, Inc. is in business to become one of the leading companies in the United States of America and we are fully aware that it will take the right business concept, management and organizational structure to achieve our goal.
We know that there are several corrugated box 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 equipped to confront our threats.
Pack Partner® Corrugated Box Manufacturing Company, Inc. 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 Pack Partner® Corrugated Box Manufacturing Company, Inc.;
Our main strength lies in the high quality of our finished corrugated boxes, the power of our team and the state of the art corrugated box manufacturing factory that we own. We have a team of highly trained corrugated box designers that can produce top notch boxes. We are well positioned in the heart of Rio Rancho – New Mexico 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 corrugated box manufacturing company and we don’t have the financial capacity to compete with multi – million dollar companies in the industry when it comes to manufacturing at rock bottom prices. So also, we may not have enough cash reserve to promote our business the way we would want to do.
Cardboard is the one of the most popular packaging materials in use today, and the most well – known is corrugated cardboard boxes, and we don’t expect that to change anytime soon. It’s lightweight, strong and resilient, offering excellent protection for almost any item.
E-commerce sales measure the value of retail sales conducted online in the United States. Since industry products are often used to ship items purchased online, an increase in e-commerce sales increases demand for industry products, benefiting revenue.
E-commerce sales are expected to increase in 2023, representing a potential opportunity for the industry. 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.
The Cardboard Box and Contain Manufacturing industry experiences external competition from substitute products, such as plastic wrapping and wooden pallets. Demand for each product is usually based on price and durability, as substitute products are more frequently used for heavy-duty applications.
When demand for these substitutes increases, industry operators generate less revenue. External competition for the Cardboard Box and Container Manufacturing industry is expected to increase in the coming year, representing a potential threat to the industry.
7. MARKET ANALYSIS
- Market Trends
The conditions in the Cardboard Box and Container 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 Box and Container 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 nylon and polythene bags because of environmental hazard hence carton boxes and cardboard packing materials have become a good substitute.
Lastly, as part of marketing strategies, corrugated box manufacturing companies now ensure that they go beyond mass production of carton boxes to producing customized corrugated boxes and packing materials for bigger corporations who are in the fast-moving consumer goods (FMCG) sector.
8. Our Target Market
When it comes to mapping out strategies for your corrugated box manufacturing business, there is indeed a straightforward market. There are hardly any manufacturing company, shipping and logistic company that do not make use of corrugated boxes for packaging goods bought from their stores.
In view of that, we have positioned our corrugated boxes manufacturing company to service a wide range of clientele in the United States of America. 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 corrugated box manufacturing industry to supply our products to the following fast-moving consumer goods (FMCG) organizations;
- Shipping and logistics companies
- Departmental Stores
- Groceries Stores
- Pharmaceutical products manufacturing companies
- Electronics manufacturing companies
Our Competitive Advantage
A close examination of the Cardboard Box and Container 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 in the United States and the globe.
Pack Partner® Corrugated Box Manufacturing Company, Inc. is launching a standard corrugated box 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 and other countries of the world. Our corrugated box manufacturing company is located in an ideal property highly suitable for the kind of manufacturing company that we want to run.
One thing is certain, we will ensure that we manufacture high quality and durable corrugated box products in our factory at all times. One of our business goals is to make Pack Partner® Corrugated Box Manufacturing Company, Inc. a one stop corrugated box manufacturing company.
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 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.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Pack Partner® Corrugated Box Manufacturing Company, Inc. is in business to manufacture and supply corrugated boxes in the United States of America and other parts of the world. We are in the industry to maximize profits and we are going to ensure that we achieve or business goals and objectives.
Pack Partner® Corrugated Box Manufacturing Company, Inc. will generate income by selling the following products;
- Manufacturing corrugated and solid fiber boxes
- Manufacturing folding corrugated boxes
- Manufacturing rigid-sided setup corrugated boxes
10. Sales Forecast
The Cardboard Box and Container Manufacturing industry is one industry that has a wide range of customers that cut across shipping and logistics companies and 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.
Below are the sales projection for Pack Partner® Corrugated Box Manufacturing Company, Inc., it is based on the location of our business and other factors as it relates to corrugated box manufacturing startups in the United States;
- First Fiscal Year (FY1): $350,000
- Second Fiscal Year (FY2): $650,000
- Third Fiscal Year (FY3): $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 products 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 Pack Partner® Corrugated Box Manufacturing Company, Inc. we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become one of the preferred choice for businesses not only in Rio Rancho – New Mexico, but also throughout the United States and the globe.
We hired experts who have good understanding of the Cardboard Box and Container 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, Pack Partner® Corrugated Box Manufacturing Company, Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our corrugated box manufacturing company by sending introductory letters alongside our brochure to manufacturing organizations, stores and key stake holders in Rio Rancho – New Mexico and other parts of the United States
- Ensure that we manufacture a wide range of corrugated boxes
- 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 Rio Rancho – New Mexico
- Create a loyalty plan that will enable us reward our regular customers
- 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 corrugated box manufacturing company is well positioned, we will still go ahead to intensify publicity for the business.
Pack Partner® Corrugated Box Manufacturing Company, Inc. 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 Pack Partner® Corrugated Box Manufacturing Company, Inc.;
- 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 Rio Rancho – New Mexico
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our corrugated box 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 corrugated box manufacturing companies, it is normal for consumers to go to places where they can get things at cheaper prices which is why big players in the industry like WestRock Company, International Paper Company, Georgia-Pacific LLC and Packaging Corporation of America et al will always attract clients.
We know we don’t have the capacity to compete with WestRock Company, International Paper Company, Georgia-Pacific LLC and Packaging Corporation of America et al but we will ensure that the prices and quality of all our boxes are competitive with what is obtainable within our level.
- Payment Options
The payment policy adopted by Pack Partner® Corrugated Box Manufacturing Company, Inc. 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 Pack Partner® Corrugated Box Manufacturing Company, Inc. 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 the purchase of our corrugated boxes without any stress on their part.
13. Startup Expenditure (Budget)
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 for the grand opening of Pack Partner® Corrugated Box Manufacturing Company, 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) – $150,000
- 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
- Miscellaneous: $10,000
We would need an estimate of four hundred and fifty thousand dollars ($450,000) to successfully set up our corrugated box manufacturing company in Rio Rancho – New Mexico.
Generating Funds/Startup Capital for Pack Partner® Corrugated Box Manufacturing Company, Inc.
Pack Partner® Corrugated Box Manufacturing Company, Inc. is a family business that is solely owned and financed by Daniel Mason and his immediate family members. They do not intend to welcome any external business partners which is why 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 $300,000 from our bank. All the papers and 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
Part of the plans we have in place to sustain Pack Partner® Corrugated Box Manufacturing Company, Inc. is to ensure that we continue to make available a wide range of corrugated boxes, deliver quality services, improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of Pack Partner® Corrugated Box Manufacturing Company, Inc. adopted the use of payment machines and accounting software to run the business.
We are quite aware that our customers are key components to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better and the products they want to see in our store. We will not waste time in adopting new technology, best practices and diversifying our services.
Pack Partner® Corrugated Box Manufacturing Company, Inc. 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 (corrugated boxes 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 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
- Establishing business relationship with vendors – supplier of corrugated box making raw materials, key stakeholders and suppliers of corrugated boxes: In Progress.