A4 Paper Cutting Business Plan [Sample Template]

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Do you want to start an A4 paper cutting business and need to write a plan? If YES, here is a sample A4 size manufacturing business plan template & feasibility report.

One of the many businesses that you can launch with little stress is an A4 paper cutting business. A4 paper cutting business does pretty well if it is located in the right location. It has been proven that printing hubs and commercial centers are the best locations for this business.

All you have to do to make success out of this business is to ensure that you locate the business in the right location, equip your shop with the latest paper cutting machines, have good customer care and deliver excellent job outputs. Below is a sample A4 paper cutting business plan template that will help you write yours without much stress.

A Sample A4 Paper Cutting Business Plan Template

1. Industry Overview

A4 paper is the size of printing paper (plain sheet of paper) that is mostly used all over the world. It is used as the classic paper sheet in all industrialized countries, and beyond, except in North America, which has retained different standards. The dimensions of A4 is 297 x 210 mm or 11.69 x 8.27 inches.

A4 paper cutting business is a subset of the printing industry and operators in the printing industry mainly print on paper, textile products, metal, glass, plastic and other materials, excluding fabric. Businesses in this industry also engage in a variety of printing processes which include lithographic, gravure, screen, flexographic, digital and letterpress.

It is important to state that this industry does not include publishers that also perform printing, nor does it comprise companies that perform prepress or post – press services without traditional printing.

A close study of the Printing industry shows that the industry has been struggling over the last half decade due to the fact that digital products and services have increasingly displaced traditional printed materials. Printers were historically central to both publishing and advertising; though, over the past 20 years, rapid technological change has toppled both markets and sent the industry into structural decline.

It was predicted that going forward, the printing industry will continue to struggle as digital media replaces traditional paper products. In the interim, profit margins are expected to slightly increase, mainly due to a drop in labor expenses as a result of industry consolidation.

Statistics has it that in the united states of America alone, the industry rakes in a whooping sum of $86 billion annually. There are about 48,698 registered and licensed printing presses including A4 paper cutting businesses scattered all across the length and breadth of the United States and they are responsible for employing about 458,145 people.

The industry is projected to enjoy -0.2 percent annual growth within 2011 and 2016. It is important to state that establishments with the dominant market share in the industry in the United States are Quad/Graphics and R.R. Donnelley and Sons.

Research carried out by IBISWORLD shows that the Printing industry’s long-term struggles have continued over the past five years as digital products and services have increasingly displaced traditional printed materials. Printers were historically central to both publishing and advertising, yet over the past two decades, rapid technological change has upended both markets and sent the industry into structural decline.

The report further states that the migration of media content and ad dollars to digital platforms accelerated since 2011, precipitously reducing demand for the Printing industry.

Amid this trend, industry revenue is expected to decline at an annualized rate of 0.2 percent over the five years to 2016 to $85.7 billion. If you are looking towards starting your own A4 paper cutting business, then you should endeavor to learn the trade.

The truth is that the technology and processes involved in this business will require a period of time (months) to learn. The printing industry is pretty much open to new entrepreneurs and investors to come in and build a successful business.

But they must first and foremost ensure that they conduct thorough feasibility studies and market survey before situating the business in any location. This is very important because this type of business is better located in an area that has available market for its services.

2. Executive Summary

Eddy Benson® Paper Cutting Shop, LLC is a registered A4 paper cutting company. We have been able to secure a standard office facility in a busy business district in Los Angeles – California. Eddy Benson® Paper Cutting Shop, LLC will be involved in A4 paper cutting, cutting of other types of papers and cardboard, paper shredding, loose-leaf binding and other related printing services.

Our business goal is to become one of the leading A4 paper cutting company in the United States and we will make sure that every A4 paper cutting jobs that leaves our office can favorably compete with the best in the industry. Our workers are going to be selected from a pool of talented and highly creative professional in and around Los Angeles – California and also from any part of the United States as the business grows.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading A4 paper cutting companies in the United States.

At Eddy Benson® Paper Cutting Shop, LLC our client’s best interest come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by delivering excellent and neat jobs and also meeting our client’s needs precisely and completely.

Eddy Benson® Paper Cutting Shop, LLC is a private business that is owned and managed by Mr. Eddy Benson. Eddy Benson studied Printing Technology from Illinois Institute of Technology and he has over 10 years of hands on experience working with one of the leading A4 paper cutting companies in the United States of America. He will be bringing his wealth of experience to grow Eddy Benson® Paper Cutting Shop.

3. Our Products and Services

Eddy Benson® Paper Cutting Shop, LLC was established with the aim of maximizing profits in the Printing industry. We want to compete favorably with the leading A4 paper cutting companies in the United States of America which is why we have but in place a competent quality assurance team that will ensure that all printing services rendered meet and even surpass our customers’ expectations.

We will work hard to ensure that Eddy Benson® Paper Cutting Shop, LLC is not just accepted in Los Angeles – California but also nationally throughout the United States of America.

4. Our Mission and Vision Statement

Our vision is to establish a world class A4 paper cutting company whose services and brand will not only be accepted in Los Angeles – California but also throughout the United States of America.
Our mission is to build a world class A4 paper cutting company that will be known to execute top notch projects and to become the number one choice for players in the printing industry.
We want to build an A4 paper cutting company that can favorably compete with other leading brands in the industry.

Our Business Structure

Eddy Benson® Paper Cutting Shop intends starting small in Los Angeles – California, but hopes to grow big in order to compete favorably with leading companies in the industry. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own.

At Eddy Benson® Paper Cutting Shop, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the 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 five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

Chief Executive Officer
Human Resources and Admin Manager
Sales and Marketing Executive
Accountant
Cutting Machine Operators
Client Service Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for fixing prices and signing business deals
Responsible for providing direction for the business
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization.

Admin and HR Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
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 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.

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
Identifies development opportunities; follows up on development leads and contacts
Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
Responsible for handling business research, market surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Create new markets cum businesses for the organization
Empower and motivates the sales team to meet and surpass agreed targets

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 for one or more properties.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensuring compliance with taxation legislation
Handles all financial transactions for Eddy Benson® Paper Cutting Shop, LLC
Serves as internal auditor for Eddy Benson® Paper Cutting Shop, LLC

Paper Cutting Machine Operators

In charge of handling A4 paper cutting machines, paper trimmers and other paper cutting and shredding machines, blank book, loose-leaf binders and devices and other related printing services.
Liaising with clients to determine their requirement and budget

Client Service Executive

Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
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 clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries
Receives parcels/documents for the company
Distribute mails in the organization
Handles any other duties as assigned by the human resources and admin manager.

6. SWOT Analysis

We are quite aware that there are several A4 paper cutting companies in the United States of America which is why we are following the due process of establishing a business so as to compete favorable with them.

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.

Eddy Benson® Paper Cutting Shop, LLC employed the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured A4 paper cutting business that can favorably compete in the highly competitive printing industry in the United States.

Part of what the business consultant did was to work with the management of our organization in conducting a SWOT analysis for us. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Eddy Benson® Paper Cutting Shop, LLC;

Strength:

Our core strength lies in the power of our team; our workforce. We have a team of creative and highly proficient professional paper cutters. Aside from the synergy that exists in our carefully selected staff members, we have some of the latest and efficient paper machines, and of course our work output and services will be guided by international best practices in the industry.

Weakness:

As a new A4 paper cutting company in Los Angeles – California, it might take some time for our organization to break into the market and gain acceptance especially from the government and other high profile clients in the already saturated and highly competitive printing industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.

Opportunities:

The dimension of A4 is 297 x 210 mm or 11.69 x 8.27 inches. As a standard A4 paper cutting company, we are ready to take advantage of any opportunity that is available in the industry.

Threat:

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power.

Another threat that may likely confront us is the arrival of a new A4 paper cutting business in same location where our target market exists and who may want to adopt same Business model like us. We are not ruling out the fact that unfavorable government policy can also affect our business.

7. MARKET ANALYSIS

Market Trends

The trend in the Printing industry shows that the industry has been struggling over the last half decade due to the fact that digital products and services have increasingly displaced traditional printed materials. Printers were historically central to both publishing and advertising; though, over the past 20 years, rapid technological change has toppled both markets and sent the industry into structural decline.

The Printing industry over time has experienced rapid growth due to rapid technological advancements, falling costs and new uses for printing technology. Going forward, the demand for printing service and of course the revenue generated is projected to increase rapidly.

8. Our Target Market

Before starting our A4 paper cutting company, we are certain that there is a wide range of clients who cannot successfully carry out their daily business activities without making use of A4 papers for printing purposes and that is where our company comes in.

We will ensure that we develop strategic pacts with corporate organizations, printing press and paper merchants et al. This will give us several options to generate revenue for our company. Below is a list of the people and organizations that we will market our products to;

Banks, Insurance Companies and other related Financial Institutions
Blue Chips Companies
Corporate Organizations
Paper Manufacturers and Distributors
Real Estate Owners, Developers, and Contractors
Research and Development Companies
The Government (Public Sector)
Schools (High Schools, Colleges and Universities)
Hotels
Sport Organizations
Religious Organizations
Political Parties
Television Stations
Printing Press (Publishing Houses)
Branding and Advertising agencies
Entrepreneurs and Startups

Our Competitive Advantage

It is a fact that the competition in the printing industry is getting stiffer by the day, so you have to be highly creative and come up with appealing prices and very neat jobs in order to survive in the industry. The A4 paper cutting business is indeed a profitable and at the same time a highly competitive; it enjoys strong demand as organizations and individuals continue to print materials on A4 papers.

Clients will only hire your services if they know that they can get nothing but the best from you. Our competitive advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient paper cutters.

Aside from the synergy that exists in our carefully selected professional paper cutters and other support staff members, we have some of the latest and efficient paper cutting, shredding and trimming machines and of course our work output and services will be guided by international best practices in the industry.

Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.

9. SALES AND MARKETING STRATEGY

Sources of Income

Eddy Benson® Paper Cutting Shop, LLC is established with the aim of maximizing profits in the printing industry and we are going to ensure that we do all it takes to meet and surpass the expectations of our clients. Eddy Benson® Paper Cutting Shop, LLC will generate income by offering the following services;

A4 paper cutting and packaging services
Other paper cutting and packaging services
Paper trimming and shredding services
Blank book, loose-leaf binding services
Other related printing services

10. Sales Forecast

One thing is certain, there would always be corporate organizations and individual who would need the services of A4 paper cutting companies.

We are well positioned to take on the available market in the printing industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation. We have been able to examine the A4 paper cutting services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

Below are the sales projections for Eddy Benson® Paper Cutting Shop, LLC, it is based on the location of our business and of course the wide range of our paper cutting services and target market;

First Fiscal Year (FY1): $250,000
Second Fiscal Year (FY2): $400,000
Third Fiscal Year (FY3): $750,000

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same service as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

We are not ignorant of the fact that there are stiff competitions in the printing industry; there are loads of A4 paper cutting businesses jostling for contracts which is why we have been able to hire some of the best marketing experts to handle our sales and marketing.

Our sales and marketing team will be recruited based on their vast experience in the general printing industry and they will be trained on a regular basis so as to be well equipped to meet their set targets and the overall business goal of Eddy Benson® Paper Cutting Shop, LLC.

Our goal is to grow Eddy Benson® Paper Cutting Shop, LLC to become one of the leading A4 paper cutting companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market.

Eddy Benson® Paper Cutting Shop, LLC is set to make use of the following marketing and sales strategies to attract clients;

Introduce our A4 paper cutting company by sending introductory letters alongside our brochure to corporate organizations, printing press, paper merchants and key stake holders in and around Los Angeles, California.
Promptness in bidding for A4 paper cutting contracts from the government and other cooperate organizations
Advertise our business in relevant business magazines, newspapers, TV and radio stations
List our business on yellow pages ads (local directories)
Attend relevant international and local expos, seminars, and business fairs et al
Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
Leverage on the internet to promote our business
Engage direct marketing approach
Join local chambers of commerce and industries to network and market our services
Encourage word of mouth marketing from loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate and individual clients in the whole of the Los Angeles – California and beyond which is why we have made provisions for effective publicity and advertisement of our A4 paper cutting company.

Below are the platforms we intend to leverage on to promote and advertise Eddy Benson® Paper Cutting Shop, LLC;

Place adverts on both print (newspapers and magazines) and electronic media platforms
Sponsor relevant community based events/programs
Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
Install our Billboards on strategic locations all around Los Angeles – California
Distribute our fliers and handbills in target areas
List our A4 paper cutting company in local directories / yellow pages
Advertise our A4 paper cutting company in our official website and employ strategies that will help us pull traffic to the site.
Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are well branded with our company logo et al.

12. Our Pricing Strategy

If you are conversant with the printing services industry, you will realize that the pricing structure ranges from fixed rate to the quantity of materials to be cut and trimmed. Almost all companies adopt all the available pricing system as it applies to the quantity of the job or project they are expected to execute.

At Eddy Benson® Paper Cutting Shop, LLC we will adopt all the pricing system as is obtainable in the industry but we will ensure that we keep the price of our services a little below the average market rate by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our customers at regular intervals.

We are aware that there are some one-off A4 paper cutting services jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.

Payment Options

The payment policy adopted by Eddy Benson® Paper Cutting Shop, LLC 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 Eddy Benson® Paper Cutting Shop, LLC will make available to her clients;

Payment via bank transfer
Payment with cash
Payment via online bank transfer
Payment via mobile money
Payment via Point of Sales Machines (POS Machines)
Payment via check
Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for A4 paper cutting services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you need a good amount of capital as you need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

When it comes to setting up a standard A4 paper cutting services business, the machines and equipment that will be used are nearly the same cost everywhere, and any difference in price would be minimal and can be overlooked. This is what it would cost us to setup Eddy Benson® Paper Cutting Shop, LLC in Los Angeles – California, U.S;

Business incorporating fees in the United States of America will cost – $750.
The budget for liability insurance, permits and license will cost – $3,500
Acquiring an office space or warehouse that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $150,000.
The cost for equipping the office (computers, standard A4 paper cutting machines and equipment, paper shredding machines and paper trimming machines, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
The amount required to purchase the needed software applications – $ 3,500
The cost of launching an official website will cost – $500
The amount needed to pay bills and staff members for at least 2 to 3 months – $70,000
Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
Miscellaneous – $2,000

Going by the report from the market research and feasibility studies conducted, we will need about two hundred thousand (250,000) U.S. dollars to successfully set up a medium scale but standard A4 paper cutting company in the United States of America.

Generating Funds/Startup Capital for Eddy Benson® Paper Cutting Shop, LLC

Eddy Benson® Paper Cutting Shop, LLC is a privately registered family business that will be owned by Mr. Eddy and his immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

Generate part of the startup capital from personal savings and sale of his stocks
Generate part of the startup capital from friends and other extended family members
Generate a larger chunk of the startup capital from the bank (loan facility).

N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $150,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Eddy Benson® Paper Cutting Shop, LLC is to ensure that we continue to deliver quality services, improvise on how to do things faster and cheaper. 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 once the need arises.

Eddy Benson® Paper Cutting Shop, LLC 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.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. 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

Business Name Availability Check: Completed
Business Incorporation: Completed
Opening of Corporate Bank Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Securing a standard office facility plus renovation of the facility: Completed
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Conducting Feasibility Studies: Completed
Generating part of the startup capital from the founders: Completed
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents: In Progress
Design of Logo for the business: Completed
Secure trademark for our products: In Progress
Printing of Packaging and Promotional Materials: Completed
Recruitment of employees: In Progress
Purchase of the needed A4 paper cutting machines and equipment, paper trimming and shredding machines: Completed
Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
Creating Official Website for the business: In Progress
Creating Awareness for the business: In Progress
Health and Safety and Fire Safety Arrangement: In Progress
Establishing business relationship with vendors and key players in the printing industry: In Progress