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How to Start a Paper Bag Production Company – Sample Business Plan Template

Are you interested in starting a paper bag production company? Or you need a sample paper bag production business plan template? Do you want to learn how to make money by producing and selling paper bags at a large scale level? Then I advice you read on.

There’s so much money to be made in paper bag production. If you think there is no money to be made in this business, then wait till you read the story of Andrew Mupuya; a 16-year old Ugandan entrepreneur who operates a MEGA paper bag production company with about a 20-man employee.

When Andrew got into college, his parents were laid off from work. He struggled for months to pay his school fees. Ah, those months were hell! He would gather a little money here. And a little money there just to balance his school fees. Then one fateful year, Something Happened

In 2008, the Ugandan government banned the use of polythene plastic bags. He immediately saw a need for paper bags. What do you see? Don’t sell what people need. Sell what they want. That’s how to make money.   Don’t venture into a business simply because you saw a need. Is it what people want? Is it what keeps them awake at night? If your business idea isn’t what people cannot do without, then it’s not an IDEA. Don’t embark on it.

Mupuya saw a need for paper bags. He knew they decompose easily and far better than plastic bags. And he started a paper bag mill to meet the demand. You can actually become the next African Bill Gates. Just think. Sit down. Survey. Strategize. And come up with a killer product people can’t resist.

That’s what Andrew did. Otunba Akin Alabi saw the need for Nigeria to have her own bookmarker; and he created to meet the Nation’s need and today, he generates approximately of N1 million dollars monthly from sports betting!

Without further ado, Mupuya started his paper business on a small scale level Of course, people laughed at him in those years. “Why would people want to buy paper bag from him they say?’’ Dreamer they called him. But something told him to keep at it Something told him not to give up.  That his breakthrough would soon come.

He neglected the critics and naysayers; conducted a feasibility study, wrote a KICK ASS business plan, did his home work (market research,) around supermarkets in his vicinity and discovered there’s a great demand for paper bags. In fact, he found out that the demand was more than the supply.

His team now produces 20,000 paper bags weekly, and his long list of clients include multinational companies in Uganda, MEGA supermarkets, as well as Samsung. His long clients now include retail shops, restaurants and local manufacturers like Mganjo grain millers… Now, that’s enough about this young Paper bag business man. Let’s talk about you. Let me walk you through the process of starting your own paper bag business

NOTE: I want to bring it to your notice that the same thing that happened in Uganda years ago is about to repeat itself in Nigeria. The federal government is currently proposing a bill to ban the use of polythene bags and nylons, because they constitute nuisance to the environment (they take years to decompose and they are mainly responsible for drainage blockage).

Once this law is implemented and enforced, the demand for paper bag will increase drastically. It happened with Rice, Clothes, Cars, groundnut oil,  Frozen Chicken and Frozen fish; it will still happen again with nylon bags. If you have the resources, then I advice you venture into paper bag production and bottled water production; as these two will be affected by the ban on plastic bags and nylons (sachet water or pure water).

Starting a Paper Bag Production Company – Sample Business Plan Template

1. Get in the right mindset

Nothing good comes easy. Your sojourn into paper bag production is not going to be rosy, so you have to be mentally prepared to take whatever comes; with respect to financial, operational and people’s problems.

2. Do your feasibility research

A feasibility study is very important as it gives you an insight into what you intend venturing into. Your feasibility report should provide details about who your customers are, your competitors, your market size, demographic, production process analysis, manpower analysis and risk sensitivity.

3. Come up with a business plan

You need a solid business plan to start your business; as this may also become a tool when you want to enter a business plan competition or raise capital for expansion. Who are your target prospects? How much would you need to kickstart your paper business? You must include these things in your business plan.

Mupuya had to come up with a detailed business plan; he inquired from his teachers, surveyed his environment and concluded that paper business is worth going into. You can actually start a paper business also. Just survey your surroundings. Remember, your location does not determine your prosperity.  Like I always say “you won’t know it works unless you try it.”

4. Research with your city’s state legal structures

Does your community accept starting a paper bag company? Find out what it takes to start a business in your vicinity. Get to your state council to make every necessary inquiry.

5. Get a suitable location for production

6. Get the needed equipment

Well, let’s get back to Andre’s story. He won a $36,000 quit and his firm: YELI—became the best African startup amongst 13 finalists.

Here’s what he had to say about winning the award:

“The grand prize is a great honor for me. With this money I plan to expand my production capability and also build a paper recycling operation. I also plan to employ 60 people before the end of 2015. I  also hope to have a paper plant at Namanve Industrial Park.’’

7. Get help, Employ more hands

Yes. The job is enormous and management intensive. You can’t handle it alone. Take full advantage of outsourcing. Mupuya had to engage the contract of 16 students to help him in producing paper bags; and today, they produce 20k paper bags and generate thousands of Dollars monthly!

8. Expand

Do you know why there are so many stagnant businesses today? It’s because a lot of entrepreneurs like to diversify a lot! Take your time to grow a business, before going into another; build that, then move on to another. Expand your business. It’s very important. If you are planning to start a paper bag business, then you must take your time growing it. Don’t diversify. It could weaken your foundation.

In conclusion, i want you to know that Africa is a potential market for paper bag production business. It’s possible for you to build a Multi-million naira industry by producing paper bags for the African masses. So why wait?

Come up with ideas that will make your IDEA more solid. Write a business plan and get started! Of course, you should carry out your feasibility research to determine if your city is a potential market.