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Carton box manufacturing business is indeed a profitable and thriving business that an aspiring
entrepreneur with the required startup capital can successfully launch and grow from scratch to
profitability. If you are interested in starting a carton box manufacturing company, then you would
find this sample carton box manufacturing business plan template highly useful.
1. Industry Overview
It is a known fact that carton box is one commodity that is used mostly in the retailing,
manufacturing and logistics industry for packaging stuffs that are sold in departmental stores,
supermarkets, and in the open market. This goes to show that there is indeed a very large market
for carton boxes in our world.
Businesses in the Cardboard Box and Container manufacturing industry converts purchased paper,
paperboard and old corrugated containers into cardboard boxes, containers and similar packaging
solutions. Industry operators produce corrugated and solid cardboard packaging for a range of
sectors and industries, including manufacturing, agriculture, wholesale, shipping and retail, among
others.
In recent time, the conditions in the Cardboard Box and Container manufacturing industry have
been relatively volatile. The revenue generated in the industry is heavily influenced by national
demand for consumer goods, as the majority of the products that are produced in the industry are
sold for downstream use in the fast-moving consumer goods (FMCG) sector.
Statistics has it that in the united states of America alone, the Cardboard Box and Container
Manufacturing industry generates over $68 billion annually from more than 1,937 registered and
licensed big scale cardboard box manufacturing companies. The industry is responsible for the
employment of over 145,229 people.
Experts project the industry to grew at a 0.6 percent annual rate between 2014 and 2019. The
establishment in this industry that has a dominant market share in the United States of America
are; WestRock Company, International Paper Company, Georgia-Pacific LLC and Packaging
Corporation of America.
A recent report published by IBISWorld shows that the Cardboard Box and Container
Manufacturing industry is the largest paper-converting industry in the United States. This industry
is a significant consumer of paper, paperboard and old corrugated containers, servicing nearly
every sector of the economy.
Industry operators produce cardboard boxes, containers and other packaging solutions, including
shoe boxes, composite cans, mailing cases and milk cartons. The industry has experienced slow
but steady growth over the five years to 2019. Cardboard continues to be one of the most widely
used materials for packaging and shipping.
Furthermore, demand for industry products from downstream markets has increased, much of
which is attributed to the increase in shipping box demand from online retailers. The Cardboard
Box and Container Manufacturing industry is a profitable industry and it is open for any aspiring
entrepreneur to come in and establish their business; you can choose to start on a small or large
scale.
2. Executive Summary
Perfect Edge® Carton Box Manufacturing Company, Inc. is a US registered carton box and
cardboard packaging manufacturing company that will be located in Baton Rouge – Louisiana.
We have been able to lease a facility that is big enough for the kind of standard carton box
manufacturing company that we intend establishing.
Perfect Edge® Carton Box Manufacturing Company, Inc. will be involved in the manufacturing of
a wide range of carton boxes for both corporate and individual clients. We are set to service a wide
range of clientele not just in the United States of America, but also all parts of the world.
We are aware that there are several carton boxes manufacturing companies all around the United
States of America, which is why we spent time and resources to conduct a thorough feasibility
studies and market survey. Perfect Edge® Carton Box Manufacturing Company, Inc. will ensure
that all the packaging materials that leaves of factory are of the highest quality, highly durable and
affordable.
We want to build a business with a wide range of clientele base that cuts across business in the
fast-moving consumer goods (FMCG) sector. We have a CRM software that will enable us
manage a one on one relationship with our customers.
Perfect Edge® Carton Box Manufacturing Company, Inc. will at all times demonstrate her
commitment to sustainability, both individually and as a firm, by actively participating in our
communities and integrating sustainable business practices wherever possible. We will ensure that
we hold ourselves accountable to the highest standards by meeting our customers’ needs
precisely and completely whenever they patronize our products.
Perfect Edge® Carton Box Manufacturing Company, Inc. is a family business that is owned by
Peterson Ruch and his immediate family members. Peterson Ruch has a Diploma in carton box
Making and a B.Eng. in Production Engineering, with over 12 years’ experience in the industry,
working for some of the leading brands in the United States.
Our intention of starting a carton box manufacturing company is to build a standard company in
Baton Rouge – Louisiana.
Although our carton box manufacturing company might not be as big as WestRock Company,
International Paper Company, Georgia-Pacific LLC and Packaging Corporation of America et al,
but we will ensure that we put the right structures in place that will support the kind of growth that
we have in mind while setting up the business.
We will make sure that we employ people that are qualified, honest, customer centric and are
ready to work to help us build a prosperous business that will benefit all our stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior
management staff and it will be based on their performance for a period of ten years or more. In
view of that, we have decided to hire qualified and competent hands to occupy the following
positions;
Responsible for overseeing the smooth running of HR and administrative tasks for the
organization
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new
products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for
repairs.
Defining job positions for recruitment and managing interviewing process
Carrying out staff induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversee the smooth running of the daily office activities.
Factory Manager:
Responsible for managing daily activities in the carton box manufacturing factory
Ensures that proper records of carton boxes are kept and warehouse does not run out of finished
products
Ensure that the factory is in tip top shape and easy to locate
Control carton box and cardboard packaging distribution and supply inventory
Supervise the workforce in the factory.
Sales and Marketing Manager
Manage external research and coordinate all the internal sources of information to retain the
organizations’ best customers and attract new ones
Model demographic information and analyze the volumes of transactional data generated by
customer purchases
Identify, prioritize, and reach out to new partners, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts
Responsible for supervising implementation, advocate for the customer’s needs, and
communicate with clients
Document all customer contact and information
Represent the company in strategic meetings
Help increase sales and growth for the company
Cardboard Packing and Paper Designers and Making Experts
Responsible for designing and manufacturing corrugated and solid fiber boxes
Responsible for designing and manufacturing folding paperboard boxes
Responsible for designing and manufacturing non – folding sanitary food box containers
Responsible for designing and manufacturing fiber cans, tubes, drums and similar products
Responsible for designing and manufacturing rigid-sided setup paperboard boxes
Accountant/Cashier:
Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managements with financial analyses, development budgets, and accounting reports
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for the organization
Serves as internal auditor for the organization
Client Service Executive
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client
with a personalized customer service experience of the highest level
Through interaction with customers on the phone, uses every opportunity to build client’s
interest in the company’s products and services
Manages administrative duties assigned by the human resources and admin manager in an
effective and timely manner
Consistently stays abreast of any new information on the organizations’ products, promotional
campaigns etc. to ensure accurate and helpful information is supplied to customers when they
make enquiries
6. SWOT Analysis
Perfect Edge® Carton Box Manufacturing Company, Inc. is in business to become one of the
leading carton box manufacturing companies in the United States of America and we are fully
aware that it will take the right business concept, management and organizational structure to
achieve our goal.
We know that there are several carton box manufacturing companies all over the United States of
America and even in the same location where we intend locating ours, which is why we are
following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position
our business to maximize our strength, leverage on the opportunities that will be available to us,
mitigate our risks and be equipped to confront our threats.
Perfect Edge® Carton Box Manufacturing Company, Inc. employed the services of an expert HR
and Business Analyst with bias in the manufacturing industry to help us conduct a thorough
SWOT analysis and to help us create a Business model that will help us achieve our business goals
and objectives.
This is the summary of the SWOT analysis that was conducted for Perfect Edge® Carton Box
Manufacturing Company, Inc.;
Strength:
Our main strength lies in the high quality of our finished carton boxes, the power of our team and
the state of the art carton box manufacturing factory that we own. We have a team of highly
trained and experienced carton box designers that can produce top notch carton boxes. We are well
positioned in the heart of Baton Rouge – Louisiana and we know we will attract loads of clients
from the first day we open our factory.
Weakness:
A major weakness that may count against us is the fact that we are a new carton box
manufacturing company and we don’t have the financial capacity to compete with multi –
million dollar companies in the industry when it comes to manufacturing at rock bottom prices. So
also, we may not have enough cash reserve to promote our business the way we would want to do.
Opportunities:
E-commerce sales measure the value of retail sales conducted online in the United States. Since
industry products are often used to ship items purchased online, an increase in e-commerce sales
increases demand for industry products, benefiting revenue.
E-commerce sales are expected to increase in 2019, representing a potential opportunity for the
industry. We have been able to conduct thorough feasibility studies and market survey and we
know what our potential clients will be expecting from us; we are well positioned to take on the
opportunities that will come our way.
Threat:
The Cardboard Box and Contain Manufacturing industry experiences external competition from
substitute products, such as plastic wrapping and wooden pallets. Demand for each product is
usually based on price and durability, as substitute products are more frequently used for heavy-
duty applications.
When demand for these substitutes increases, industry operators generate less revenue. External
competition for the Cardboard Box and Container Manufacturing industry is expected to increase
in the coming year, representing a potential threat to the industry.
7. MARKET ANALYSIS
Market Trends
The conditions in the Cardboard Box and Container Manufacturing industry have been relatively
volatile. The revenue generated in the industry is heavily influenced by national demand for
consumer goods, as the majority of the products that are produced in the industry are sold for
downstream use in the fast-moving consumer goods (FMCG) sector.
One major trend in the industry is that most players are leveraging on the fact that states in the US
and even countries of the world are passing legislation that will put a limit to the use of nylon and
polythene bags et al because of environmental hazard hence carton boxes have become a good
substitute.
Lastly, as part of marketing strategies, cardboard box manufacturing companies now ensure that
they go beyond mass production of carton boxes to producing customized carton boxes for bigger
corporations who are in the fast-moving consumer goods (FMCG) sector.
In view of that, we have positioned our company to service a wide range of clientele in the United
States of America. We have conducted our market research and feasibility studies and we have
ideas of what our target market would be expecting from us.
We in the carton box manufacturing industry to supply our products to the following fast-moving
consumer goods (FMCG) organizations;
A close examination of the Cardboard Box and Container Manufacturing industry reveals that the
market has become much more intensely competitive over the last decade. As a matter of fact, you
have to be highly creative with your designs and market approach, customer centric and proactive
if you must survive in this industry.
We are aware of the stiff competition and we are prepared to compete favorably with other leading
carton box companies in the United States. One thing is certain, we will ensure that we
manufacture high quality and durable carton box products in our factory at all times.
One of our business goals is to make Perfect Edge® Carton Box Manufacturing Company, Inc. a
one stop carton box manufacturing company. Our excellent customer service culture, various
payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best
within our category in the industry meaning that they will be more than willing to build the
business with us and help deliver our set goals and achieve all our aims and objectives. We will
also give good working conditions and commissions to freelance sales agents that we will recruit
from time to time.
Below are the sales projection for Perfect Edge® Carton Box Manufacturing Company, Inc., it is
based on the location of our business and other factors as it relates to carton box and cardboard
packaging manufacturing startups in the United States;
We have detailed information and data that we were able to utilize to structure our business to
attract the number of customers we want to attract per time.
We hired experts who have good understanding of the Cardboard Box and Container
Manufacturing industry to help us develop marketing strategies that will help us achieve our
business goal of winning a larger percentage of the available market in the United States of
America.
In summary, Perfect Edge® Carton Box Manufacturing Company, Inc. will adopt the following
sales and marketing approach to win customers over;
Introduce our carton box manufacturing company by sending introductory letters alongside our
brochure to manufacturing organizations, stores and key stake holders in Baton Rouge –
Louisiana and other parts of the United States
Ensure that we manufacture a wide range of carton boxes
Make use of attractive hand bills to create awareness and also to give direction to our factory
Position our signage / flexi banners at strategic places around Baton Rouge – Louisiana
Create a loyalty plan that will enable us reward our regular customers
List our business and products on yellow pages ads (local directories)
Leverage on the internet to promote our products
Engage in direct marketing and sales
Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Even though our carton box manufacturing company is well positioned, we will still go ahead to
intensify publicity for the business. We are going to explore all available means to promote our
cardboard packaging and carton box manufacturing company.
Perfect Edge® Carton Box Manufacturing Company, Inc. has a long – term plan of opening our
factories in key locations in Asia, South America and Africa which is why we will deliberately
build our brand to be well accepted in the United States of America before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over
but to effectively communicate our brand. Here are the platforms we intend leveraging on to
promote and advertise Perfect Edge® Carton Box Manufacturing Company, Inc.;
We know we don’t have the capacity to compete with the giants, but we will ensure that the
prices and quality of all our carton boxes are competitive with what is obtainable amongst
manufacturing companies within our level.
Payment Options
The payment policy adopted by Perfect Edge® Carton Box Manufacturing Company, Inc. is all
inclusive because we are quite aware that different customers prefer different payment options as
it suits them but at the same time, we will ensure that we abide by the financial rules and
regulation of the United States of America.
Here are the payment options that Perfect Edge® Carton Box Manufacturing Company, Inc. will
make available to her clients;
The total fee for registering the Business in the United States of America – $750.
Legal expenses for obtaining licenses and permits as well as the accounting services (software,
P.O.S machines and other software) – $3,300.
Marketing promotion expenses for the grand opening of Perfect Edge® Carton Box
Manufacturing Company, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers
at $0.04 per copy) for the total amount of $3,580.
The total cost for hiring Business Consultant – $2,500.
The total cost for payment of insurance policy covers (general liability, workers’ compensation
and property casualty) coverage at a total premium – $9,400.
The total cost for long – term leasing of a standard warehouse / factory – $250,000
The total cost for remodeling the warehouse/factory – $20,000.
Other start-up expenses including stationery ($500) and phone and utility deposits – ($2,500).
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
The total cost for start-up inventory (purchase of tools and equipment and the purchase of raw
materials inclusive) – $150,000
The total cost for counter area equipment – $9,500
The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
The total cost for the purchase and installation of CCTVs: $10,000
The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs,
Sound System, tables and chairs et al): $4,000.
The total cost of launching a Website: $600
Miscellaneous: $10,000
We would need an estimate of seven hundred and fifty thousand dollars ($750,000) to successfully
set up our carton box manufacturing company in Baton Rouge – Louisiana.
Generating Funds/Startup Capital for Perfect Edge® Carton Box Manufacturing Company, Inc.
Perfect Edge® Carton Box Manufacturing Company, Inc. is owned and financed by Peterson
Ruch and his immediate family members. They do not intend to welcome any external business
partners which is why he has decided to restrict the sourcing of the startup capital to 3 major
sources.
We are not going to relent in providing conducive environment for our workers and also the
required trainings that will help them deliver excellent services at all times. We are quite aware
that our customers are key component to the growth and survival of our business hence we are
going to continuously engage them to give us ideas on how to serve them better.
We will not waste time in adopting new technology, best practices and diversifying our services.
Perfect Edge® Carton Box Manufacturing Company, Inc. will make sure that the right foundation,
structures and processes are put in place to ensure that our staff welfare are well taken of.
Our company’s corporate culture is designed to drive our business to greater heights and training
and retraining of our workforce is at the top burner. We know that if that is put in place, we will be
able to successfully hire and retain the best hands we can get in the industry; they will be more
committed to help us build the business of our dreams.
Check List/Milestone