Starting a Paper Bag Making Business – Small Scale Business Advice

Nabanita Kundu By: Nabanita Kundu  On: 8 Jun , 2016,
Starting a Paper Bag Making Business

Paper bag making is a worthwhile business opportunity in recent times when people prefer to go green. Using paper bags is a step ahead towards this green movement. Paper bags are very much in fashion and at the same time eco-friendly also. Its demand and popularity goes on increasing in the market as it is cheap in price; durable enough to hold more items at once and most importantly it is biodegradable, so safe for our environment. When a paper bag gets torn, it can be reused frequently because it is made of 35% recycled material.

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The paper bag production industry is on the rise now more than ever before. Actually, polythene bags have a huge impact on environment as they do not decompose easily. So, the governments of most countries have already passed prohibitory order on the usage of polythene bags and nylon.  Commercial sectors are also looking for ways to be eco-friendly, and by offering paper bags, instead of plastic bags, they are also cooperating with the Government to fight against plastics. If you have the skills and interest in it, then you can set up your own business of paper bag making and make a healthy living out of it.

Basic Steps Needed for Starting a Paper Bag Making Business

Starting a paper bag making business requires a variety of processes to be completed, including the registration of your business and the purchase of proper equipment that will cut, print and fold paper bags for you. The startup costs of a paper bag production small business can be a bit high, but if you consider the benefits and opportunities that come with this business venture it becomes clear that this is an investment that will pay off.

Carry out a Feasibility Study:

It is the first step applicable for any kind of business. A thorough research on the paper bag production industry helps to let you know various details like size and strength of market, actual production procedure, required machinery and manpower etc. It will demonstrate all the risk factors involved in this business.

Product Details

Usage of Paper Bags: Renowned fashion designers and clothing stores first introduced paper bags with their own brand name and logo. It was then considered as a style statement. Now it is being widely used as the packaging materials in shopping malls, food mart, various other shops like grocery and stationery stores, bakers and confectioners etc. Because of its lower price, roadside vendors and hawkers are also providing paper bags for carrying fruits and vegetables.

It is a fun activity to whip up paper bags from wrapping papers, newspapers, old magazines etc.

Types of Paper Bags: Mainly two types of paper bags are available in the market-

Flat Type: It comes in different sizes and dimensions. Some of the popular sizes are

  1. 11cm x 15 cm
  2. 13 cm x 19 cm
  3. 17cm x 22 cm
  4. 21cm x 25 cm
  5. 25cm x 34 cm

Gazetted Type: It is available in the following sizes

  1. 8cm x12cm x 12cm
  2. 50cm x 12cm x 50 cm

Registration of Paper Bag Making Business

The step is vital as you will be producing items that will be sold to other businesses, which mean you need to properly register your company before you can start trading.

Start by brainstorming a few ideas for the branding of your company, which will begin with a name. Once you have a name for your company, move on to the registration of the company. Contact your local company registration office for more details on registering and to acquire the appropriate forms.

After getting business registration with the ROC( Register of Companies), you will need to apply for

  1. Trade License from your local municipal corporation
  2. Udyog Aadhar Number

(You will get this number after filing the online Udyog Aadhar Form. It is an ISO 9001:2008 Certified Organization under the Ministry of Micro, Small and Medium Enterprises, Government of India.)

  1. VAT e-registration (under the Directorate of Commercial Taxes of the State Government)
  2. BIS Certification

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Branding

After registering your company, get a graphic designer to design a creative and professional logo for you. This will be the image of your company, so be sure to get a professional designer that can provide a quality design. The logo of your new company can then be incorporated into other branding materials such as business cards, letterheads and even printed on the paper bags you will be manufacturing.

Rent a Business Place

This step is very crucial for the success of your business. You need to select that place where all amenities are available. You should check whether market is near to this place. Actually it helps in immediate dealing of the finished goods as well as reduce the storage and transportation cost. Next the availability of the machinery and manpower are the other two pre-requirements you should consider beforehand.

Finally, you should determine the amount of area you need for paper bag production. You need to find premises where you can store raw material and end products, set up all the machines. About 300 sq. ft building area is sufficient for starting a paper bag making unit. After getting a perfect business facility, you should sign a lease and get approval from your local business authority.

Buy Raw Materials

The main raw material for making paper bags is any type of paper roll (GSM up to 200 and width up to 137 cm). Some other materials like Eyelets, tags for handles, glue, water based Flexo ink, polymer stereo etc are also required.

Where to Buy the Raw Materials

You may find numerous manufacturers and distributors of paper roll in the local wholesale market. Otherwise you may find lots of paper rolls sellers in the following websites:

https://www.alibaba.com/showroom/paper-bag-roll.html

https://dir.indiamart.com/search.mp?ss=Paper+Rolls

Get the Required Machinery

Finally, you have come very close to your paper bag production process. You can choose to start by producing only a small number of paper bags, or you can go all out and start producing a larger number of paper bags for more advance distribution.

You need to buy the proper equipment that will produce paper bags on large scale. The following is a basic overview of the equipment for making paper bags.

  1. Creezing machine
  2. Cutting machine
  3. Printing machines
  4. Eyelet fitting machine
  5. Lace fitting machine
  6. Punching machine

There are also various additional tools that need to be purchased in order to properly produce these paper bags.

Starting Out

Now you have completed the initial steps for starting a paper bag making business. It is time to launch your business officially and begin producing paper bags. You can choose to produce bags and then market them to companies, or you can first find clients and create these bags on their demand. You should note that there are different sizes and shapes of paper bags and each company that buys from you will have their own requirements – be sure to discuss these requirements with your clients to ensure they are satisfied with your service.

When starting out, it might seem hard to find your first few clients, but this should not de-motivate you. By setting up a decent marketing strategy to help you out, you will be able to get a good start and attract potential leads within your first few days.

Finding Your First Clients

Promoting your new business is essential. Without the proper promotion you won’t be able to attract customers, which also means you won’t have any business.

There are many different ways to find clients for your paper bag making business and you should incorporate multiple strategies for maximum results. Some of the methods you can use to get started and to find your first few clients include:

  • Contact potential businesses that you know are currently using plastic bags. Explain to them the advantages of being eco-friendly and tell them what your company can do for them.
  • Always carry some business cards with you as you do not know who you will meet on your next trip out.
  • Post adverts in local newspapers and magazines.
  • Create a website and focus on local SEO to rank high in search engines within your local area.

Apart from these few tips, you can also contact companies that are already promoting themselves as eco-friendly. If you can make a good offer to these companies, they might consider moving their business over to you.

Estimated Investment & Profit

Paper bag making is not a capital intensive business if started on a small scale basis. You can get an idea about the estimated investment and profit from the following project report link, though the report based on large scale basis. View Project Report

Final Words

Starting a paper bag making business takes effort, time and money. There are many processes involved and you need to do things the proper way in order for your business to succeed. Even when considering all of these facts, it is still a lucrative opportunity that can bring in a lot of success, network connections and opportunity to grow in the future.

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Starting a Paper Bag Making Business – A Small Scale Business Advice
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Starting a Paper Bag Making Business – A Small Scale Business Advice
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Paper bag making is a small scale business idea with huge growth potential. Learn the steps of starting a successful paper bag making business.
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Home Business Ideas Center
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1 Comment

  1. Lily October 18, 2016 at 9:37 am

    This article made my day… go ahead.