This “Paper bag making business plan” information will help you to gain the knowledge to start your own small scale paper bag business. We have also gathered additional information on how to market these products and go on with this business to achieve your business goals

Of course we are keen to help you to succeed with your effort, therefore we have created a free stuff section that you can download some useful things if you like, and also don’t forget to have the opportunity to advertise your products for free in our classified section where you have the chance to make some more sales.

So let’s get to know the 10 important topics that we are going to discuss

1. What you need
2.  How to make paper bags and screen print on paper bags
3.  Initial expenses
4.  Target market and How to find your first customer
5.  Time needs to be allocated
6.  Low cost efficient techniques
7.  How to select suppliers
8.  Storage & Inventory
9.  Price
10.  Setup short/long term business goals

So let’s look at our first topic

1 What you need

Papers, Hardboards, Lace threads, Glue, Cutters, Cutting table, Pens, Rulers, Screen printing machine Printing ink

These all you can easily find in printing and paper selling shops. You also can order some of these items online

We have posted some links which you can see those products and compare.

Now let’s go to the number 2

2 how to make paper bags and screen print on paper bags

To learn how to make paper bags and screen printing there are many video in you tube so we have searched through and below we have posted some best video links for you to learn the process.

So if you have watched above videos now you know how to make and print on paper bags so let’s go to our 3^rd topic

3 Initial expenses

To start this business in very small scale you don’t have to spend lot of money you only have to spend some money to purchase below listed items but always remember not to purchase in bulk, because you are just starting this, until you find your first customer we have to keep all expenditures as low as possible

Papers, Hardboards, Lace threads, Glue, Cutters, Cutting table, Pens, Rulers, Screen printing machine Printing ink

4 Target market and How to find your first customer

Now this is the interesting part. Imagine how many shops are their within your city limits? Roughly count how many shops are giving paper bags to their customers when they sell something from their stores. We are sure you will get number of shops.

At the initial stage you can take these shops as your target market. Later on you will have more opportunities to market your products to new markets, but at the starting point these shops owners can give a good start to your business

So we encourage you to visit couple of these shops or contact them by making some phone calls to schedule a meeting with these shop managers.

Get some orders to provide bags in weekly basis to their shops. We strongly believe you will get many opportunities, but take what you are comfortable to do according to your capacity and let’s start to make some paper bags to fulfill their orders.

5 Time needs to be allocated

Basically when you make these bags for the first time it might take a long time for you to make one bag, but with the practice it will take less time.

Normally average it takes 5 minutes to make a bag which means at least 12 bags per hour so if you allocated 8 hours per day, you easily can make more than 100 bags per day. So if you work only 5 days that means more than 500 bags can be made. But we want this to be efficient therefore let’s go to our next section to increase the productivity so you can make more bags and have more free time too.

6 Low cost efficient techniques

If you create one by one bag that consumes a lot of your time and you will be very tired

Basically if you segregate the job into stages you can be more productive

Therefore we recommend you to cut papers at one go then keep all at a side. This way you can pileup papers at least in 5 sets and cut those in one-shot

And we recommend you to make a block so you don’t need to use your ruler and pen to draw all cutting lines on each time

And creating a folding block so you will fold and glue in lesser time

All bags screen printing should be done after completely making all the bags

Finally you can thread the lace to each bag

This way you will definitely double the speed of production, if you also like to receive cutting block diagram and folding block diagram please let us know we will email the board chart for you.

7 How to select suppliers

Now, when you select suppliers to buy materials, you should find answers to few questions

Are these suppliers having your required stuff often?

Is it convenient for you to order these items from them?

Are these suppliers are reliable

Do their product prices fixed and don’t change very often

Do you have more than one supplier just in case you find difficulty to get your required staff from one supplier?

If you can answer Yes to these questions you will save lot of troubles of your business

8 Storage & Inventory

You don’t need to wait until you get orders, you should continue making bags, but if you are making bags without having any order you should make sure that you make standard size bags and you don’t print any logo on it.

This stock will be your pre arranged stock which you can use to speed up your process once you got a new order. So you need to arrange a proper place to store your productions and keep inventory book so you don’t need to count one by one to understand how many bags you’ve already made so far.

 Remember to make a note in your inventory book daily basis after you made more paper bags and you sold out them.

9 Price

The price plays an important role when it comes to marketing, however the price can’t be too low or too high just because you want sell fast or make more profit, it’s always better to keep an average amount

For that we recommend you to ad 30% to your production cost of a bag in this way you will have a good amount of profit to get going your business and even competitors will not take the advantage to grab your order just because your price is extremely high

Production cost of one bag X 30/100 = profit

Production cost + profit = selling price of the bag

10 Setup short/long term business goals

Now you have started the business and you got your first order, we are happy that we brought you this far, but we want you to set a target to increase the number of customers order paper bags from you so how about if we keep 2 new customers per month during the first 6 months, and 3 customers per month for the next six months of the year.

Means by the end of the first year from starting date of this business you will have 30 permanent customers who orders 500 bags per week that’s 500 X 30 =15000 bags (I.e. 60,000 paper bags per month)

Definitely you will have to hire some staff and purchase some machines to increase the production if you have maintain your bank transactions in a proper manner you will have a good chance to get some loan facility to expand this business to its next stage.

If you would like to receive a regionally customized business plan to raise funds for this business or if you prefer to take our professional support to expand this small business in to a big scale company please do contact us, it is our pleasure see you onboard with SRISELL