Do you want to start a paper mill company from scratch? Or you need a sample paper mill business plan template? If YES, then i advice you read on. A paper mill is a company that produces paper and other paper related materials like toilet tissue. Despite all the noise about computer and how everything is now in electronic form and computerized, there is still a very high demand for paper and its related products; which makes starting a paper mill a very profitable business.
In this article, I will start by mentioning things you need to start a paper mill, and steps you need to start your own paper mill company. At the end of this article, you should know all you need to begin and expand a paper mill company.
3 Things You Need to Start and Successfully Run a Paper Mill Company
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The paper mill is a capital intensive project; you need much capital to buy equipments and machineries. Capital is much need to set up the company’s structure; also, the business is labour intensive and you need money to pay your employees as well. But be rest assured that you will definitely cover your start up expenses and start making profits few years after the company starts running; depending on how well your products are accepted into the market.
Another thing that is needed to build a successful paper mill company is your ability to create an acceptable brand for the company. The brand is everything that defines your business, not just your company’s logo but also the packaging, price and other things that set your company and product apart from other paper mill companies. If you succeed in building a brand for your business, your company will inevitably become successful.
Running a paper mill company is not only capital intensive but also labour intensive; breaking it down, turning a gmelina wood or used paper into paper or other related product in commercial quantity until it gets to the final users requires series of processing and each of the process needs to be handled by a team of employees who have expertise to handle the process. That is why you need whole lot of employees to successfully run your paper mill.
You just have to be careful when choosing your employees, as you need to get only employees that will understand the company’s mission and goal and willing to help your company accompany its ultimate goals.
Starting a Paper Mill Company – Sample Business Plan Template
1. Company Registration
To run a paper mill business, you need to register it as a company. For a business as big as a paper mill, you may need to register the business as private limited company (even if you are the sole financier of the business). The reason is because there are chances that you may want to go public in the future depending on how successful the business grows.
The next step is to research if there is a ready market for your products and know who your competitors are. If you can create a focus group of regular paper or related products users and inquire about what they need best in a paper product; their answer will help you create a product that will be acceptable to your consumers.
When you done with carrying out a market research, it is time to lease a space for your factory. The factory should be in a place that can be easily accessible for transportation of your products to the customers. You can also lease another space that will serve as your office space, where formalities and inquires can be done. If you are tight on budget, you can have the factory and office can be in the same location but different sections.
4. Order for Your Machineries and Equipments
it is time to order all the machineries and equipments you need to run the company. If you are new to the business, that is if you don’t have any experience whatsoever on what machineries are needed in a paper mill company, you will be required to carry out an extensive research on the machineries needed and the best place to order for the machines.
If you are on a tight budget, you can lease the machineries until you have the money to buy yours (but remember to put the interest you need to pay on leasing into consideration and how it will affect your company’s finances in its start up stage).
The best place to order for cheaper machineries is by ordering from the manufacturers but it may take a bit of time for the machineries to get to you especially if the manufacturers are based in another country; however, it is much cheaper that way.
When the final products are ready, you need to have a means of transporting the business from the factory to consumers. To do this, you may need to get one or more delivery trucks that will transport the company’s product.
Also bear in mind that you will need a warehouse to store your products until you start getting orders for them; and since paper and paper material products like tissue are easily destroyed by water or moist, the company’s warehouse needs to be void of these two elements.
You have to know who your targeted market is for you to how to advertise to them. In this case, your market include schools (they make use of paper), restaurants and hotels (for toilet paper and other related materials).
Stationary stores are also your target market, so you need to make a list of all the stationary stores in your location and contact them to supply them with paper products; even if it means supplying them on credit to collect your money after they make the sales. You can write them a proposal to take up the supply of these items at a reduced rate. You can also offer them free delivery or payment on delivery to make them order for more.
Finally, remember to get an accountant that will help you take care of your company’s finances; it will make it easier for your company to calculate tax payment.
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