Do you want to start a paper cup business and need to write a plan? If YES, here is a sample paper cup manufacturing business plan template & feasibility report.
Business ideas are all around us but one of the challenges that aspiring entrepreneurs are confronted with is how to know a business that can become profitable and successful. 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.
Table of Content
- 1 Why Start a Paper Cup Manufacturing Business?
- 2 Industry Overview
- 3 Executive Summary
- 4 Our Product Offering
- 5 Our Mission and Vision Statement
- 6 Job Roles and Responsibilities
- 7 SWOT Analysis
- 8 MARKET ANALYSIS
- 9 Our Target Market
- 10 SALES AND MARKETING STRATEGY
- 11 Sales Forecast
- 12 Publicity and Advertising Strategy
- 13 Startup Expenditure (Budget)
- 14 Sustainability and Expansion Strategy
Why Start a Paper Cup Manufacturing Business?
One of such businesses is a paper cup manufacturing business. Paper cups are considered to be more environmentally friendly than polystyrene foam ones, because paper cups are made from trees — a renewable resource.
Aside from that, paper cups decompose faster and are easier to recycle than foam ones. Below is a sample paper cup manufacturing business plan template that will help you write yours without much stress.
A Sample Paper Cup Manufacturing Business Plan Template
A paper cup is a disposable cup made out of paper and often lined or coated with plastic or wax to prevent liquid from leaking out or soaking through the paper. It may be made of recycled paper and is widely used around the world.
The paper cup manufacturing industry includes companies that convert paperboard into drinking cups and portion serving cups. These products are primarily sold to wholesalers and retailers or to restaurants and consumers. Businesses in this industry also manufacture paper bags in various sizes and designs.
In recent time, the conditions in the Cardboard Packaging and Paper Cup Manufacturing industry have been relatively volatile. The revenue generated in the industry is heavily influenced by national demand for consumer liquid products such as tea and coffee, 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 establishment in this industry that has a dominant market share in the United States are; Huhtamaki Group, Solo Cup Company, Koch Industries Inc., International Paper Co, Dart Container Corporation and Georgia-Pacific LLC.
The Cardboard Packaging and Paper Cup 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 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.
Fulton Jones® Paper Cup Manufacturing Co, Inc. is a US registered paper cup and cardboard packaging manufacturing company that will be located in Grand Rapids – Michigan; 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 25 thousand square foot facility) to fit into the design of the kind of standard paper cup and cardboard manufacturing company that we intend establishing.
Fulton Jones® Paper Cup Manufacturing Co, Inc. will be involved in the manufacturing of a wide range of drinking cups, portion serving cups and other related paper containers that will be primarily sold to wholesalers, retailers, restaurants and consumers. 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 paper cup 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.
Fulton Jones® Paper Cup Manufacturing Co, Inc. will ensure that all the paper cups and cardboard packaging materials that leave our 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 businesses in the fast-moving consumer goods (FMCG) sector.
Fulton Jones® Paper Cup Manufacturing Co, 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.
Fulton Jones® Paper Cup Manufacturing Co, Inc. is a family business that is owned by Fulton Jones and his immediate family members. Fulton Jones has a Diploma in paper cup cum cardboard packaging and a B.Engr. in Production Engineering, with over 12 years’ experience in the industry, working for some of the leading brands in the United States.
Our Product Offering
Fulton Jones® Paper Cup Manufacturing Co, Inc. is in the paper cup manufacturing industry to manufacture a wide range of paper cups 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 that we go all the way to give our clients options.
Our product offerings are listed below;
- Customized paper cups for events
- Paper cups and single-portion cups
- Corrugated cardboard boxes, cartons and cases
- Con-corrugated cardboard boxes, cartons and cases
- Corrugated cardboard in rolls or sheets
Our Mission and Vision Statement
- Our vision is to become a leading brand in the cardboard packing and paper cup manufacturing industry in Michigan and to establish a one stop paper cup manufacturing company.
- Our mission is to establish a world – class cardboard packaging and paper cup 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 paper cup manufacturing company is to build a standard company in Grand Rapids – Michigan. Although our company may not be as big as Huhtamaki Group, Solo Cup Company, Koch Industries Inc., International Paper Co, Dart Container Corporation and Georgia-Pacific LLC 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 our 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
- Merchandize Manager
- Sales and Marketing Manager
- Cardboard Packing and Paper Cup Making Experts
- Customer Services Executive
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 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 cardboard packing and paper cup manufacturing factory
- Ensures that proper records of cardboard packing materials and paper cups are kept and warehouse does not run out of finished products
- Ensure that the factory is in tip top shape and easy to locate
- Control cardboard packaging and paper cup distribution and supply inventory
- Supervise the workforce in the factory.
- Help to ensure consistent quality of paper cup making raw materials are purchased and used
- Responsible for the purchase of 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
- 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
Cardboard Packing and Paper Cup Making Experts
- Responsible for designing and manufacturing customized paper cups for events
- Responsible for designing and manufacturing paper cups and single-portion cups
- Responsible for designing and manufacturing corrugated cardboard boxes, cartons and cases
- Responsible for designing and manufacturing con-corrugated cardboard boxes, cartons and cases
- Responsible for designing and manufacturing corrugated cardboard in rolls or sheets
- 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
- 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
Fulton Jones® Paper Cup Manufacturing Co, Inc. is in business to become one of the leading paper cup manufacturing 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 paper cup 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.
Fulton Jones® Paper Cup Manufacturing Co, 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 goals and objectives. This is the summary of the SWOT analysis that was conducted for Fulton Jones® Paper Cup Manufacturing Co, Inc.;
Our main strength lies in the quality of our finished paper cups, the power of our team and the state of the art and well – equipped paper cup and cardboard packing manufacturing factory that we own. We have a team of highly trained paper cup designers and makers and support staff members that can produce quality paper cups. We are well positioned in the heart of Trento – Michigan 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 paper cup 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.
The fact that we are going to be operating our paper cup manufacturing company in Trento – Michigan provides us with unlimited opportunities to sell our products. The fact that paper cups have one advantage over plastic cups in their biodegradability makes marketing the product easy; 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 paper cup manufacturing company in same location where ours is located. So also, unfavorable government policies may also pose a threat for our business.
- Market Trends
Paper cups are known have various types of lids. The paper cups that are used as containers for yogurt, for example, generally have two types of lids: heat-seal foil lids used for small “single serving” containers. As a matter of fact, hot drinks sold in paper cups are mandated to come with a plastic lid, to keep the drink hot and prevent spillage.
These lids have a hole through which the drink can be sipped. The plastic lids can have many features including peel back tabs, raised walls to protect the foam of gourmet hot drinks.
One major trend in the paper cup manufacturing industry is that most players are leveraging on the fact that states in the US is passing a legislation that will put a limit to the use of plastics because of environmental hazard hence paper cups have become a good substitute.
Lastly, as part of marketing strategies, paper cups manufacturing companies now ensure that they go beyond mass production of paper cups to produce customized paper cups for bigger corporations who are in the fast-moving consumer goods (FMCG) sector especially companies that are into the sale of coffee, tea, ice cream and yoghurt.
Our Target Market
When it comes to mapping out strategies for a paper cup manufacturing business, there is indeed a straightforward market. There are hardly any FMGC, party, company that sells coffee, tea, ice cream and yoghurt et al that do not make use of paper cups, bags or cardboard boxes.
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 an idea of what our target market would be expecting from us.
We in the paper cups manufacturing industry to supply our products to the following fast-moving consumer goods (FMCG) organizations;
- Coffee shops
- Tea shops
- Ice cream shops
- Yoghurt shops
- Party organizers
- Fast food restaurants/Pizza restaurants
Our Competitive Advantage
A close examination of the paper cup 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, be customer centric and proactive if you must survive in this industry.
We are aware of the competition and we are prepared to compete favorably with other leading paper cup manufacturing companies in the United States. One thing is certain, we will ensure that we manufacture high quality and durable paper cup in our factory at all times.
One of our business goals is to make Fulton Jones® Paper Cup Manufacturing Co, Inc. a one stop paper cup 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 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.
SALES AND MARKETING STRATEGY
- Sources of Income
Fulton Jones® Paper Cup Manufacturing Co, Inc. is in business to manufacture and supply paper cups in the United States of America and other parts of the world. We are in the paper cup manufacturing industry to maximize profits and we are going to ensure that we achieve or business goals and objectives.
Fulton Jones® Paper Cup Manufacturing Co, Inc. will generate income by selling the following products;
- Customized paper cups for events
- Paper cups and single-portion cups
- Corrugated cardboard boxes, cartons and cases
- Con-corrugated cardboard boxes, cartons and cases
- Corrugated cardboard in rolls or sheets
The cardboard packing and paper cup 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 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 cardboard packing and paper cup manufacturing industry, 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 Fulton Jones® Paper Cup Manufacturing Co, Inc., it is based on the location of our business and other factors as it relates to paper cups and cardboard packing materials manufacturing startups in the United States;
- First Fiscal Year (FY1): $250,000
- 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 paper cup design 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 Fulton Jones® Paper Cup Manufacturing Co, Inc. 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 Grand Rapids – Michigan, but also throughout the United States.
We hired experts who have good understanding of the paper cup 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.
Fulton Jones® Paper Cup Manufacturing Co, Inc. will adopt the following sales and marketing approach to win customers over;
- Introduce our paper cups manufacturing company by sending introductory letters alongside our brochure to tea, coffee and ice cream shops, stores and key stake holders in Grand Rapids – Michigan and other parts of the United States
- Ensure that we manufacture a wide range of paper cups 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 Grand Rapids – Michigan
- 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)
Publicity and Advertising Strategy
Even though our paper cups manufacturing company is well positioned, we will still go ahead to intensify publicity for the business.
Fulton Jones® Paper Cup Manufacturing Co, 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 Fulton Jones® Paper Cup Manufacturing Co, 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 we position our banners and billboards in strategic positions all around Grand Rapids – Michigan
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our paper cups 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.
Our Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to companies, it is normal for consumers to go to places where they can get paper cups at cheaper prices which is why big players in the industry like Huhtamaki Group, Solo Cup Company, Koch Industries Inc., International Paper Co, Dart Container Corporation and Georgia-Pacific LLC. et al will always attract loads of clients.
We know we don’t have the capacity to compete with these companies but we will ensure that the prices and quality of all our paper cups are competitive with what is obtainable in the industry.
- Payment Options
The payment policy adopted by Fulton Jones® Paper Cup Manufacturing Co, 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 Fulton Jones® Paper Cup Manufacturing Co, 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 clients make payment for the purchase of our paper cups without any stress on their part.
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.
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 paper cup and cardboard packing 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 for the grand opening of Fulton Jones® Paper Cup Manufacturing Co, 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 $750,000 to successfully set up our paper cup manufacturing company in Grand Rapids – Michigan.
Generating Funds/Startup Capital for Fulton Jones® Paper Cup Manufacturing Co, Inc.
Fulton Jones® Paper Cup Manufacturing Co, Inc. is owned and financed by Fulton Jones. 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 the 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 $500,000 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.
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 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 Fulton Jones® Paper Cup Manufacturing Co, Inc. 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 durable paper cups 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.
Fulton Jones® Paper Cup Manufacturing Co, 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 (paper cup and cardboard packing 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 Packaging and 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 – supplier of paper cup and cardboard packing making raw materials: In Progress.
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