Paper Bag Making Business: How to Start a Paper Bag Production Company

Polythene bags are toxic and cause a nuisance to the environment. They block drainage pipes and are not bio-degradable.

It takes a very long period for nylon bags to decompose. The better alternative to polythene bags are paper bags.

With a little creative design the bags can withstand heavy weight and handling. Paper bags decompose easily are appealing and attract a huge demand.

Paper bags come in different colors, designs, sizes and shapes. They are useful in supermarkets, grocery stores, and fast food outlets. The bags are used for shopping, storage and delivery services.

A major recipe for success is to discover a niche market and meet the demand. You can start a paper bag making company on small or large scale.

While establishing your business, provide adequate infrastructure for growth and development. To succeed factor the type of machinery, factory space, labor costs and marketing.

How to Start a Paper Bag Production Company

Write a Business Plan

Write a business plan for your paper bag company. The plan should have a mission statement, product review, marketing structure and cost analysis.

It provides details on financial implications, goals and objectives. The business plan shows growth potential including future goals.

Write a Feasibility Study

The feasibility study will look at ideal location for your business. The feasibility study provides a survey on the marketability of your product. Useful resource includes product choice, current market trends and pricing.

Research

You should research your competitors and customers needs. Learn the manufacturing process, and machines needed to produce paper bags.

You need to research bag prices, sizes, designs and latest manufacturing techniques. Find out local government laws and regulations guiding the enterprise.

Funding your Paper Bag Company

You need money to lease factory space, machinery and raw materials. Other things that require funds are working capital, staff wages and marketing.

Your fixed capital takes up 60% of your investment. Apply for loans from commercial banks in your area. Provide your business plan and company structure to assist in your loan application.

Register your Paper Bag Company

You can register your company as a limited liability company. Choose a good business name and secure a trade license.

Get BIS certification, insurance and value added tax registration. Find out if there are any other permits you need in your host country.

Location

You can buy or lease factory space for your production line. Make sure the factory you rent has adequate space for equipment and parking.

You will need a bus to deliver the finished product to your customer. A good criterion for an ideal location is close to the source of raw materials. This effectively reduces transportation cost.

Types of Paper Bags that Attract High Demand

Paper bags come in different sizes and dimensions however some are more popular than others. The size and functionality of the bag depends on the manufacturer’s intention.

Common sizes are 11x15cm, 13x19cm, and 17x22cm. Other popular dimensions are 21x25cm, 25x34cm and larger bags.

Labor and Staff

Employ staff according to your needs and quantity of bags you want to produce. You will need machine operators, marketing and packaging department.

You need administrative staff, drivers and security. Factor expansion and increase in production as your business grows.

Paper Bag Making Machinery

Machinery used in making paper bags include stereo grinder, eye letting machine and stereo press. Other machines are bag cutting machine, paper bag machine

A list of Paper Bag Making Machines

·         Testing Scale Machine

·         Roll Slitter Motorized Machine

·         Bag Cutting Machine

·         Bag Making Machine

·         Stereo Press and Stereo Grinder

·         Eye Letter Machine

Raw Materials

The raw materials used in producing paper bags are the paper sheets. Paper factories use white or colored paper rolls, chemicals and printing ink.

Paper Bag Production Marketing

Paper bags are used by fast food outlets, restaurants, shops, stores and supermarkets. The bag is common in merchant stores, grocery stores, bakery and stationary stores.

The applications are too numerous to mention because of the huge market potential. Entrepreneurs can leverage on this huge market to profit.

Market your produce through television and radio advertisements. Use printed material such as brochures, catalogs and posters.

Print flyers, complementary cards and billboards. The good news is that plastic bags are currently being banned in many countries clearing the way for paper bags.

Sell your bags on your website or blog to a larger international market.
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