Are you about starting a tissue paper manufacturing business? If YES, here is a complete sample tissue paper manufacturing business plan template & feasibility report you can use for FREE. The tissue paper business is one of the easiest businesses any entrepreneur that is focused can go into. It is a business where you can make profit in a short while due to the fact that tissue is an essential commodity that is used in everyday affair.
The use of toilet roll started in the 1920s and has since seen a tremendous growth in its use, a fact that has caused many innovative entrepreneurs to go into the business and make good profit for themselves. Regardless of the fact that many people have succeeded in the tissue manufacturing business, many have also failed because they didn’t carry out a thorough research on the business before starting.
A Sample Tissue Paper Manufacturing Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Tissue papers are basically made from three major raw materials such as chemical pulp, mechanical pulp as well as recovered paper. These raw materials are then made into Bathroom tissue, paper towel, facial tissue, wrapping tissue, paper napkin as well as specialty tissue. However, the quality of the tissue papers, such as its porosity, absorption, tensile strength, coarse nature, and tactility, might vary depending on where it is intended to be used.
Basically, the tissue paper industry has two broad categories known as At Home and Away from Home. At Home tissues which are also called consumer tissues are mainly used for purposes that are domestic in nature, while Away from Home are used mainly for industrial and commercial purposes.
The demand for tissue paper is continually increasing mainly due to the fact there are few substitutes for tissue papers and those available aren’t sufficient enough to shift people’s interest to it. Another factor that has seen the growth of the tissue paper industry is the rise in Gross National Income.
This does not however mean that the industry hasn’t encountered its challenges as more people are demanding hand dryers in place of tissues, and green environmentalists are making a strong point against felling of trees.
The industry is one that survived the economic downturn better than other manufacturing industries because tissue paper is regarded as a necessity. The recovering economy has seen consumers going for tissue papers that are of high end therefore boosting more revenue for the industry. The growth projection for this industry was pegged at 0.1% between 2011 and 2015.
The industry is a capital intensive one because it relies heavily on machinery, with efficient machines being constantly worked on so that the whole tissue paper manufacturing process can become better and also allow entrepreneurs to make more money.
The demand for tissue paper in the united states has remained stable for more than 17 years, with the market growing at 2% annually. This has been of a great advantage to tissue paper manufacturing companies whose revenue has increased steadily as the year progresses, especially as the recent recession barely affected these companies.
A fast growing segment in the tissue paper manufacturing industry is the private label market, which is competing fairly with branded tissue counterparts. Between 2003 and 2013, the private label market in the United States has grown by 8%. Also, the market share for private label tissue for a decade is now at nearly 32% up from 18%.
The level of competition in the industry has seen more local tissue manufacturing companies having advantage with getting and retaining customers especially as users prefer to identify with manufacturing companies which are closer to them than those that are far away. Also, the local manufacturers have the advantage of setting lower prices for their tissues especially as they would not need to deal with shipping costs in getting the tissue papers to their customers.
2. Executive Summary
Cleanstrip Tissue Paper Company is a registered and licensed manufacturing company that will be based in Clearwater Street, Florida, USA to cater to domestic and international clients.
We are a manufacturing company that will not only deal in the production of tissue papers for bathroom use but also produce paper napkins, face tissues, paper towels, wrapping and specialty tissues as well so as to be able to cater to our home consumers as well as commercial customers such as hospitals, jewelry manufacturing companies, hotels, and other such customers.
Having effectively studied this market, we are confident that our laid down strategies will enable us to be able to compete favorably with other tissue manufacturing companies in the area and even around. Asides manufacturing tissue and other such products for sale, we intend to offer other services that will give us an edge over our competitors and attract customers to us.
Our goal is to be amongst the top three top brands in Florida, and amongst the top ten in the United States as a whole. This we will do by not only offering the best services but also getting the best equipment. Tissue papers are regarded as an essential commodity as every household buys a roll every week.
Asides, households, business places and commercial businesses have to constantly stock their toilets with tissue papers and paper towels, and so this means that the demand of tissue papers cannot plummet even during a recession especially as there are no close alternatives in the market for consumers to switch to. In order to have repeat customers, we intend to ensure our tissue papers are of a high quality.
Knowing our important the human resources are to any business, we intend to get the best by not only hiring those who would be the best fit for the various roles but also those who we know will be able to project our visions positively internally and externally. We also intend to invest massively in the welfare of our employees so that their productivity rate results in a healthy bottom line for the company.
Our location will be easily accessible not only for our employees but also for our distributors and suppliers as well. This is to ensure that production and distribution goes on efficiently. Also, we intend to ensure our facilities are very conducive so that employees do not have issues carrying out their tasks effectively.
Cleanstrip Tissue Paper Company intends to set the pace for how tissue paper manufacturing companies should be run. This we would do by constantly upgrading our machinery and providing continuous training to ensure that our staffs get updated on new technologies and innovations.
We intend to provide excellent customer service to all our customers so as to keep having repeat businesses with them. We would ensure that we listen closely to their complaints and resolve them in a timely manner. We would also listen to suggestions and tips that would move our business forward. We would also keep in touch with our customers and ensure that we keep them informed of new services and products from our stable.
Cleanstrip Tissue Paper Company is owned and run by Bob Jones, an experience businessman and entrepreneur and one who has a B.Sc. in Mechanical Engineering, as well as a Masters Degree in Business from a prestigious business school. Bob has also worked in a tissue paper manufacturing company for seven years and will bring his vast experience to bear in this business.
3. Our Products and Services
Cleanstrip Tissue Paper intends to not only focus on producing tissue papers but also produce other items that are closely related to tissue paper as well. We intend to produce white and colored tissue rolls. Cleanstrip Tissue Paper is established to make profit, and this we would do legally.
However, in an aim to shore up our revenue base, we intend to offer other services as well such as franchise, and consultancy services. Our services will be packaged in such a way as to fir into every intending client’s requirement and budget. Listed below are some of the products and services we intend to offer;
- White and colored tissue paper for home use
- Paper Napkins
- Face Wipes
- Wrapping Tissue
- Paper Towels
- Specialty Tissue
- Consultancy services
4. Our Mission and Vision Statement
- Our vision is to be amongst the top three tissue manufacturing brand in Florida and among the top ten in the country.
- Our mission is to ensure that we do not lose sight of our vision. This we would do by getting the best machinery possible and ensuring we meet the needs of our existing as well as potential clients.
Our Business Structure
To have a strong structure on ground, we at Cleanstrip Tissue Manufacturing Company intend to ensure that we start on the right footing by getting the right employees to carry out the defined tasks that will make the company grow and make profit. We intend to invest in their welfare so that they could remain focused on growing the company.
We intend to partner with our distributors in such a way that we would both benefit from the relationship. Our distributors would be carefully selected for their wide reach, and other benefits to us. We would constantly make sure we work at perfecting the relationship and listen to their complaints and suggestions on the way forward for the company.
We also plan to offer other products and services at Cleanstrip Tissue Manufacturing Company and to this effect, we know we would need more hands to be able to ensure that the business grows and expand smoothly in achieving our business objectives. Listed below are those we believe will build Cleanstrip Tissue Manufacturing Paper Company;
- Chief Executive Officer
- Plant Manager
- Floor Supervisor
- Human Resources and Admin Manager
- Sales and Marketing Executives
- Truck Drivers
- Customer Service Executives
- Security Guard
5. Job Roles and Responsibilities
Chief Executive Officer
- Provides a clear strategic direction for the organization and communicate these strategies to appropriate channels
- Has an experience with the budgets as well as allocate resources appropriately
- Ensures that the right professionals are hired into the management team
- Builds corporate culture that would influence employees attitude and decision
- Organizes the daily operations of Cleanstrip tissue manufacturing plant
- Oversees the entire plants and assign sections to floor supervisors
- Participates in the hiring of new employees for plant section and also create and keep work and manufacturing schedules
- Carries out constant monitoring of the manufacturing equipment to ensure that it is in working order
- Authorizes replacement of machine parts as at when due
- Responsible for all the work carried out on the assigned floor
- Works with plan manager to ensure that all rules are complied with
- Understands the workflow in the assigned floor
- Understands how to operate machines and carry out light maintenance tasks
- Supervises workers in carrying out their assigned tasks
Human Resources and Admin Manager
- Ensures the development, management as well as implementation of personnel policies
- Recruits, retain and terminates staff appropriately
- Ensures that office practices are adhered to and in line with employment related laws
- Ensures that the administrative systems are constantly reviewed with an aim to being proactive instead of reactive
- Ensures that staff welfare and incentive packages are appropriately done.
Sales and Marketing Executives
- Carries out promotional activities that will project the image of the company as well as bring in revenue
- Devises marketing and sales strategy for Cleanstrip tissue paper manufacturing company
- Manages campaigns on all of the company’s social media platforms
- Plans and organizes product and service exhibitions’ for the company
- Monitors performance and change weak strategies
- Ensures that tax returns are prepared and that tax requirements, preparation and reporting are complied with
- Works with management and report all the finances regarding Cleanstrip tissue manufacturing company
- Ensures that budgets are developed, and maintained periodically and also compare budgeted costs to actual costs
- Prepares and analyzes of accounting records, financial statements and reports in order to determine accuracy and conformance with accounting standards
- Carries out analysis of business operations including costs and revenues and use this to not only project future income and expenses but to proffer advice as well.
- Ensures that cargoes are loaded and unloaded at the appropriate times
- Ensures that all traffic laws are followed
- Inspects truck before and after every trip, and report any major defects found to the appropriate department
- Carries out light repairs and maintenance on trucks as at when due
- Ensures that clients get their products on time
Customer Service Executives
- Ensures that they answer calls that deal with complaints, orders, and inquiries professionally
- Processes orders and applications for clients
- Ensures that records of all customer interactions as well as transactions with the company are well kept
- Follows up on inquiries and complaints to ensure that appropriate actions had been taken by the company
- Protects the property of the tissue manufacturing company
- Prevents security problems that are likely to arise during the course of carrying out security duties
- Responds to security issues that might crop up
- Enlightens employees by providing security tips
6. SWOT Analysis
Having a SWOT analysis is very important as this would help us know what our chances of succeeding in this market are and how well we can improve on our weakness while eliminating totally or reducing threats to the barest minimum. In carrying out a thorough SWOT analysis, we hired a reputable business consultant who has several years of experience in helping start-ups with carrying out this analysis.
The aim of the SWOT has also helped us determine if this is a business that we should pursue or not. We are glad to say our strengths and opportunities were in high percentages and that the threats posed to our business is few and our weaknesses will be worked on.
Here is what the SWOT analysis carried out by an expert on behalf of Cleanstrip Tissue Paper Manufacturing Company revealed;
Our strength lies in our up-to-date technologies and machineries deployed to produce tissue papers. We also have the right and dedicated professionals that will handle these machines to ensure maximum output. Another strong suit of ours lies with our excellent customer service that is dedicated to ensuring that customers’ complaints are promptly taken care of without excessive delays.
We also have a Chief Executive Office who does not only believe in having the right professionals in the right positions but also has a robust and vast experience in the field that would ensure that the Cleanstrip tissue manufacturing company does all the right things at the right time.
The tissue production market is one that already has many players in the field in Florida and in the United States of America as a whole. This has made it seem like the market is saturated as the entry requirements into this market are low. However, we intend not to allow this deter us as we have strategies in place to ensure we become a brand to be reckoned with.
There is however several opportunities that abound in this field which stems from the fact that tissue paper is used daily, which shows the market is there. Also, because of our approach to producing quality and yet affordable tissue papers, we will help new business start-ups by giving them franchises that would elevate their business to great heights.
Every business is faced with threats, and so the threats that would face us in this area include having to compete against already established tissue paper manufacturing companies, and also unfavorable government policies.
7. MARKET ANALYSIS
- Market Trends
While the tissue market is regarded as a stable one, tissue manufacturing companies have to sometimes come up with strategies that would differentiate them from their competitors. This can be in the production of high-premium tissues, and colored tissues as well.
Another trend is in ensuring that we not only produce tissue papers but also other related hygienic products as well such as scented paper towels, organic facial and hand wipes for health conscious folks and scented wrapping tissue as well; and also create avenues for our customers to be aware of what new products we are offering.
Lastly, we intend to use technology as a means of marketing our tissue manufacturing company and also increasing its awareness and sales as well. Asides, technology, we also intend to use the internet in reaching out to our various existing as well potential clients.
8. Our Target Market
The use of tissue paper is regarded as hygienic and with no close substitutes available and so our target market is basically everyone in Florida and in the United States of America as a whole. This is why part of our expansion strategy is to have strategic locations in different states of the country.
Due to several authentic statistics and market researches, we know exactly who and where our target markets are, and what they expect from us. We intend to engage in wholesale distribution to retail stores that will cater to the following group of people:
- Business Places
- Government Institutions
- Educational Institutions
- Spas and Beauty Salons
- Sports Men and Women
- Hotels and club houses
- Religious houses
- Every person not listed
Since we intend to survive in the tissue production business for a long time to come and also be amongst the top leading brands not only in Florida but also in the whole of the United States of America, we have drafted competitive advantage strategies that will ensure that our vision and mission statement is achieved.
We know how important our customers are to the business, and so one of our competitive advantages is to ensure that our customer retention strategies remain very high. This can be achieved by promptly attending to the complaints of our clients and giving out incentives regularly.
Another of our competitive advantage is in the hiring of competent employees who have a vast experience in the field and are attuned to our vision and corporate culture, and also understand the need to have a strong distribution network as well as excellent customer culture while also positively promoting and projecting our brands.
Another part of our competitive advantage is in ensuring that our competent employees have fair welfare packages, which would be the best in the industry. This would then ensure that they improve on their productivity, which would to a greater extent improve our bottom line.
Lastly, we would ensure that our pricing policies are not only favorable to our customers but also to us as well. This we would do by critically evaluating the right price that would be fair to us as well as our numerous clients.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Cleanstrip Tissue Manufacturing Company is being established with the purpose of generating revenue and invariably making profit in the United States of America. To ensure that we have a healthy bottom line, we intend to ensure that we have other sources of income for our business as well by producing other tissue related products as well as provide services too.
Cleanstrip Tissue Manufacturing Company will generate income by selling the following products;
- White and colored tissue paper for home use
- Paper Napkins
- Face Wipes
- Wrapping Tissue
- Paper Towels
- Specialty Tissue
- Consultancy services
10. Sales Forecast
Since there are no close substitutes or alternatives for tissue papers, the sale of tissue papers have come to stay and is even regarded as an essential commodity.
At Cleanstrip Tissue Paper Manufacturing Company, we are not only well positioned to take on the available market that exists in Florida, we are also quite confident that we will generate enough revenue in our first year of business to cover all operations and overheads, so much so that the business will begin to pay itself and then invariably grow and expand.
Our confidence stems from the fact that we have critically evaluated this industry especially the production and distribution line and our chances are strongly positive. The sales projection we have carried out is based on information that was gathered on the field and some of the assumptions are based on factors that are peculiar to start-ups in Florida.
Below are the sales projections for Cleanstrip Tissue Manufacturing Company, which is based on where we are located as well as other factors that is intended for the growth of our business.
- First Fiscal Year-: $450,000
- Second Fiscal Year-: $900,000
- Third Fiscal Year-: $2,000,000
N.B: It should be noted that the sales projection above is based on the assumption that all favorable factors will remain constant and that there won’t be any change. However as time changes, there the projections might be lower or higher.
- Marketing Strategy and Sales Strategy
Every business man knows how important marketing is to a business and how deploying the right marketing strategies will help the companies generate income as well as boost its own profile as well.
After a thorough research on what marketing strategies would be best for us to not only penetrate the market but also compete favorably with other leading brands as an upcoming company, we were able to come up with reliable data and information that will ensure our business is marketed effectively in Florida and in extension, the United States of America as a whole.
Because of how important marketing is, we hire a reputable brand and marketing consultant with a good understanding of Fast Moving Consumer Goods (FMCG) to help us in develop strategies that will position us to become amongst the top leading brands as well as win a large percentage of the available market not only in Florida but in the United States of America as a whole.
Also, knowing the importance of marketing to our business, our sales and marketing executives have been empowered to deliver our corporate sales goals so as to shore up our revenue base while also positively promoting the company’s image.
We also know how important technology is in these times especially when it comes to marketing and so we have perfected plans to develop an app that will bring us closer to our existing and potential clients. We would also make our official website and social media platforms as active as possible for our audience.
We intend in summary to leverage on the following approaches to market our products and services at Cleanstrip Tissue Manufacturing Company;
- Advertise our tissue manufacturing company via local newspapers, national newspapers, and radio stations and on television.
- Encourage our loyal customers by giving out incentives for referrals
- Engage in word of mouth marketing
- Engage in direct marketing through our sales and marketing executives
- Ensure our business is listed in Yellow pages and other local directories as well as online directories
- Use our website to sell our products and services
- Make use of our social media platforms to actively promote and sell our products and services.
11. Publicity and Advertising Strategy
Regardless of the fact that our brand is a well known one that has a high standard, we know how important creating awareness for a business is. Every business established for the purpose of making profit and competing favorably with other leading brands must have good publicity and advertising strategies laid out, and this we have in place.
Cleanstrip Tissue Manufacturing Company intends to explore all available means of publicity both in Florida and around its environs as well. Our publicity strategies will ensure that we not only promote our products and services but project our image positively to intending and existing clients.
Listed below are the platforms we intend to leverage on in promoting our Cleanstrip Tissue Manufacturing Company;
- Ensure that we introduce our tissue manufacturing company to commercial offices around us
- Provide distribution benefits to all our distributors and partners
- Place adverts on print media (local newspapers as well as relevant magazines) and electronic media (radio stations and televisions)
- Use our social media platforms – such as Facebook, Twitter, and LinkedIn to seriously engage our existing and potential clients and promote our brands
- Sponsor social shows such as community pageants and educational fairs
- Distribute our handbills and fliers in various target areas
- Install our billboards in various strategic locations around Florida
- Give our distribution trucks an attractive color that will visibly show and promote our products
12. Our Pricing Strategy
Tissue papers and its other related products are regarded as essential commodities and will always be purchased no matter what. This means that pricing for most of tissue products across board are cheap and affordable for tissues generally.
However, few tissues are regarded as high-end and so their pricing are usually higher than regular tissue. Deciding on a pricing policy will depend on what quality of tissue paper we intend to produce for our different clients.
Our pricing module will however not be too different from that of our competitors, as we would during the first six months of operations offer our products at a little less price than that of our competitors; we might however raise the prices a bit after our brand has become well known. We would never offer prices that are below our cost of production as well as overheads as we intend to be in business for a long time.
- Payment Options
Because we know how an easy payment option will keep more of our customers with us, at Cleanstrip Tissue Manufacturing Company, we have crafted a payment policy that will ensure our customers find it easy to pay. We also have different payment options for various clients.
Our payment options below are available for most of our clients;
- Check payment via banks
- Payment via Point of Sale (POS) Machine
- Online bank transfers
- Payment via credit cards
The banks that we have partnered with for this payment options are those that will ensure that customers will have a smooth experience without hitches when making payments.
13. Startup Expenditure (Budget)
Starting a standard tissue manufacturing business is not the easiest of tasks as most of one’s start-up capital has to into ensuring that hitches and glitches are reduced to the barest minimum. The bulk of this capital usually goes into equipment and machinery purchase, utility bills and employee salaries at least up to a certain period of time.
Listed below are the key areas we intend to spend most of our start-up capital on;
- Business incorporations fees and other legal expenses in the United States of America – $1,000
- Obtaining of licenses and permits – $1,000
- Operational cost for the first six months (payment of utilities, employee salaries) – $150,000
- Insurance coverage (General Liability, workers’ compensation, property liability) – $2,500
- Marketing and publicity promotion expenses for launching as well as for six months of operations – $3,000
- Cost of tissue making equipment – $30,000
- Cost of inventory (raw materials and packaging materials) – $8,000
- Cost of hiring a business consultant – $3,000
- Setting up a storage facility plus equipment – $5,000
- Cost of renting facility for tissue production for at least a year – $40,000
- Cost of tissue distribution truck – $50,000
- Cost of administrative start-up expenses (computers, printers, stationeries, phones) – $7,000
- Cost of launching an official website – $500
- Cost of launch party – $5,000
- Miscellaneous – $10,000
From the above requirements, we would need an estimate of $316,000 to successfully start and operate our tissue production company in Clearwater Street, Florida. This amount can successfully cover our first six months of operations.
Generating Funding / Startup Capital for Dove Tissue Paper Manufacturing Business
Cleanstrip Tissue Manufacturing Company is a business owned by Mr. Bob Jones and his family. It had been started on a small scale by his father, and after his death Bob Jones intends to re-start and grow it to a sizable standard. There is no intention whatsoever to have external business partners just yet which is why the major sources of capital for Cleanstrip Tissue Manufacturing Company has been limited to few sources.
The areas where we intend to generate our start-up capital are:
- Part capital generation from sale of personal stocks and properties
- Applying for loan from the bank
- Sourcing for the remainder of the loan from family members and close friends
N.B: From sale of personal stocks, we have been able to generate about $150,000, from family members, $100,000, and we just got $100,000 loan facility from our bank, as our account was just recently credited with he said amount.
14. Sustainability and Expansion Strategy
Every entrepreneur how important it is to sustain a business. A business can be sustained through various factors such as increasing the retention rate of your loyal customers. Ensuring the efficiency of our employees by hiring the right people and giving them regular trainings, and also having the right business structure so that the company can continue to exist for as long as possible.
One major sustainability strategy for Cleanstrip Tissue Manufacturing Company is ensuring that we build a revenue base that will enable us grow and expand as a company. This means that we will not only stick to one means of generating revenue but will deploy other means of generating income as well.
We would not only look at tissue paper production but also produce other essential products that are related to tissue paper which includes paper towels, facial wipes, paper napkins, wrapping tissue and specialty tissue. Our other services such as consultancy and franchise will help push up our earnings, invariably sustaining the business.
Our customers are top of our priority as we will ensure that we carry out retention strategies that will keep our loyal customers and ensure that they prefer our products to that of our competitors. We would do this by giving out incentives to our loyal customers and special discounts to customers that refer other customers to us.
Asides this, we would also ensure that we listen to the complaints of our customers and try to solve them whenever they crop up and also listen to their suggestions and tips as well.
If we shore up our revenue by creating multiple source of income, hire the right employees and regularly train them and also treat our customers right, we will not only be known in the industry, we would also be amongst the top brands.
Check List / Milestone
- 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
- 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
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: 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
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
- Purchase of trucks: Completed
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