How to Start Paper Bag Making Business

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How to Start Paper Bag Making Business

How to Start Paper Bag Business

A step by step guide to starting a paper bag making business

Do you want to erect a Business?

Then why not to start with a paper bag making business.

Hey future entrepreneurs, in this article, we are going to share a step by step guide to start a paper bag making company—the complete guide from the thought of a business to the spread of business in straightforward words.

Nature is the perfect teacher of humans. At present, we need to care about the environment to live with it.

Plastic bags are one of the big problems for the eco-friendly environment and in recycling. As we know, they are harmful and hard to recyclable.

Then “great minds came with the idea of paper bags.” Paper bags are eco-friendly and easily recyclable.

Also, the cost and the maintenance are less of paper bag businesses. Before wasting any millisecond of your precious time, let’s start.

Read Now: Paper Vs Plastic Bags

9 Steps to start a paper bag making business

01. Paper Bag Growing Market Scope

Paper Bag Growing Market Scope

Before starting a business, the fundamental step is to find out the potential of your business. Paper bag doing marketing is overgrowing.

As everybody knows, paper bags are environment friendly and recyclable. Many governments and related authorities are restricting the use of plastic bags, cup, etc.

Due to the ban on plastic and the benefits of paper bags; every market, governments are considering the paper bags as an alternate of plastic bags. We do not need to talk about the use and popularity of plastic bags.

A few years ago, they were the lifeline of industries and most of the markets. Naturally, you are diving in a market where competition is very less, and profit is enormous.

Most of the popular sectors are adopting paper bag swiftly.

  1. Packing and Delivery.
  2. Medicine and Pharma industry.
  3. Gifts, part, tec.
  4. Food Market.
  5. Jewellery and Shopping Bags.

So, it is the right time for smart entrepreneurs to start a paper bag making business.

02. Estimated Investment and Average return

Estimated Investment and Average return

Great to see you in the second step. Investment of a business decision is it suits you or not? If yes, then how big your business can be?

A profitable paper bag making business needs the right amount to start. Let us calculate with some estimated values.

  1. The Estimated cost of paper bag making machine varies between 5 to 8 lacs.
  2. And The rent of land, labour, and raw materials are depending on specific areas.
  3. Overall, the average investment to start paper bags making business needs 15 to 30 lacs.

Note: These are the estimated figures, the size of business and production capacity of your business decide the actual cost.

Another major factor is the average return of paper bag making business. The average Production cost of 1 paper bag of size 18cm x 25cm is around Rs 3.30 to 3.40inr, including material cost and labour cost.

And the market price of the paper bag is around 3.50inr. The calculation of average production you will get minimum 80,000 to 1,00,000 net profit per month.

It is not fixed; your profits can be more if you utilize the machine and labour. These are some only estimated stats.

03. The perfect person for this business

Of course, you are the right and future entrepreneur. For the business of paper bag making do not need any special human and out of the box strategies.

“Anybody with skills will power, and a good budget can do the business of paper bag making.”

In this guide, we were already learning all steps that are needed for starting a paper bag making company.

Then you just need to take analysis and prepare a roadmap for your paper bag making firm.

04. Requirements for Paper bag making firm (Place, Machinery, Labor, etc.)

How to Start Paper Bag Making Business

Bravo, we are happy to see you in the requirements step. That has meant you are now interested to learn this business in depth.

Well do not worry, we are here to explain every bit to related to this bag making business.

Like a paper bag making start-up, we need the following things,

  1. Place: A very first step is to find or organize a space for your company/factory. To run an average paper bag making business an 800-1000sq/feet area is recommended. You have to option, buy land, or start with rent. You can decide on your responsibility.
  2. Machinery: Another crucial decision of our start-up is machinery. A highly durable, and automatic machine is good to start. In the market, semi-automatic, fully automatic paper bag making machine, and much more kind of machines are available. It depends on your business size, and an average-sized business should consider a well-managed, and automatic machine.
  3. Labour: It also depends on your business size; big business needs more labour. But for start-ups, a medium or medium-sized business is recommended. If you don not any prior business skills, then you must consider a small company in starting.

So, these are the primary requirements that you should manage while starting your firm.

05. Raw materials for paper bag business

Don’t be lazy; it is time to concentrate on the essential part of our business. Like every business, paper bag making firms need raw materials to convert into paper bags.

We are confident that, now you have very critical knowledge of this business. But a smart person in business and entrepreneur must have a piece of in-depth knowledge about the raw material of his domain. Have a look of the following raw materials-

  1. Paper sheets
  2. Eyelid
  3. Paper rolls colours and white
  4. Laces and tags
  5. Printing chemicals
  6. Polyester stereo
  7. Printing ink, etc.

06. Manufacturing process of a paper bag making business

Manufacturing process of a paper bag making business

To manufacture a paper bag, need a lot of tasks to be done before the final output. In this paragraph, we will briefly discuss the whole process of making a paper bag.

Remember that it is not 5-10 minutes of tutorials. To get the desired output, we need to do a lot of things frequently.

So, do not think these are the final processes of paper bag making company. Let’s start,

    1. Cutting: A first step of making a paper bag is cutting of paper roll. In this process we will cut a paper roll according the size of the paper bag. We must choose the size of the paper roll according to the size of our paper bag.
    2. Pressing: Pressing is a process in which we press the side of paper and then stick with the help of gum. For pressing we need a pressing machine.
    3. Printing: In printing process we print the logo, information or other demands of the client or a brand.
    4. Punching: In punching process, we create a hole with the help of punching machine to attach a handle on paper bag.
    5. Attach a handle: In this step, with the help of machines we must attach a string handle to holes of the paper bag.
    6. Packaging: The final step is packaging of the manufactured paper bags. In this step we pack the paper bags in the cartoon boxes for transportation.

We hope you understood the process of a creating paper bag. Always remember, these are estimated steps. Every machines and companies follow different path to get same output.

07. General Documentation to start your business

General Documentation to start your business

I need a little bit of patience from your side, we care of time but can’t skip important information for our readers.

A general documentation to start a paper bag making business need to do this following paperwork.

    1. Register your firm: First, register your company, if you are going for one-person company then register as proprietorship. Otherwise you need to register your firm as partnership firm.
    2. Trade license: To run any kind of firm (small/medium/big) in society must have a trade license. You can apply or get trade license concerned municipal corporation.
    3. GSTIN Number: In India, for every business and firms a GSTIN number is required. You have to apply to the government to get a GST IN number. Don’t worry; it is straightforward to get, you have to follow some easy steps and need legal documents.
    4. Udhyog Aadhaar: After getting trade license you can apply for udhyog Aadhaar at Indian government website udyogaadhaar(dot)gov(dot)in.
    5. BIS: Lastly, we need a compulsory certificate of Bureau of Indian Standards.

Congratulations for your brand-new firm. So, these were the few steps you need to follow in the registration of your company. Scary legal terms? No buddy these are the very simple and easy to implement.

08. Your targeting market of Paper bags

It is time to do something engaging and exciting work to get sales. Can you predict, if a shopkeeper has stock of thousands of products and not getting a single sale.

Not too hard to guess, the solution is finding a buyer, right!

Same thing is applying on your start-up as well, you should get in touch with dealers and find out the market where you are going to supply.

Here we are mentioning few industries which deals with a paper bag or use it frequently.

Paper bag targeting markets such as bakeries, book shops, gift stores, fancy shops, hardware shops, fruit shops, vegetables shops, general stores, grocery shops, firms that are deal with semi-finished goods, shoes shops, snack shops, stationery shops, sweet shops, textile shops, meat shops, shopping malls and more.

09. Marketing and Brand Building

We know, you have a dream to raise as a brand. This is last but not least point to start a paper bag making business.

After setting-up a paper bag making company, we need to tell the related markets and firms that we are providing quality paper bag at affordable prices.

To promoting a business, we have a lot of options (more than enough.) You can design logo, business cards, and posters as well to spread awareness of your brand.

Also, in this digital world, we can’t miss the digital marketing to target our audience.

Also, adopt the digital platform as well. You can connect to the direct businesses, or you can sell on customers as well.

For popular business companies like Indiamart, Exportsinidia, TradeIndia, Alibaba, etc. Also, to selling to customers join popular platforms such as Amazon, Flipkart, Snapdeal, Bigbasket and more.

In this fast-paced and the ultra-modern world, do not miss a single opportunity to grow your business.

Wrapping Up!

Well done, we finished our step by step guide to starting a paper bag making business. We learned to identify the market scope of paper bags, average investment, Average revenue, requirements of machinery & place, brand marketing, company registration and a lot more.

I hope you understood our guide to build a paper bag making firm. We attached every necessary detail that can help you to erect a paper bag company.

Now time to implement and become a successful businessman of paper bags—best wishes for the growth of your business.

1 Comment

  1. […] Really? After discussing the reason to choose a paper bag in 2020 we need to explain it in depth. It is okay; we know why to choose a paper bag business in 2020. […]

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