Carton Box Manufacturing Business Plan [Sample Template]

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Do you want to start a carton box production company? If YES, here is a sample detailed carton box manufacturing business plan template & feasibility report.

It is a fact that carton boxes are used by a greater percentage of manufacturing companies, and logistics companies make use of them to package their products for delivery. 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.

A Sample Carton Box Manufacturing Business Plan Template

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.

3. Our Products and Services

Perfect Edge® Carton Box Manufacturing Company, Inc. is in the Cardboard Box Manufacturing industry to manufacture a wide range of carton boxes and cardboard casing 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 and of course to make profits.

Our product offerings are listed below;

Manufacturing corrugated and solid fiber boxes
Manufacturing folding paperboard boxes
Manufacturing non – folding sanitary food box containers
Manufacturing fiber cans, tubes, drums and similar products
Manufacturing rigid-sided setup paperboard boxes

4. Our Mission and Vision Statement

Our vision is to become the leading brand in the Cardboard Box and Container Manufacturing industry in the United States of America.
Our mission is to establish a world – class carton box manufacturing company whose products will not only be used by the FMCG sector in the United States of America, but also be exported to other countries of the world.

Our Business Structure

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 stakeholders.

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;

Chief Executive Officer (Owner)
Factory Manager
Human Resources and Admin Manager
Sales and Marketing Manager
Cardboard Packing and Carton boxes Designers and Making Experts
Accountants / Cashiers
Customer Services 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
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.

8. Our Target Market

When it comes to mapping out strategies for your carton box manufacturing business, there is indeed a straightforward market. There are hardly any manufacturing, shipping and logistic company that do not make use of carton boxes.

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;

Shipping and logistics companies
Departmental Stores
Groceries Stores
Pharmaceutical products manufacturing companies
Electronics manufacturing companies
Shoe manufacturing companies
Mobile phones and accessories manufacturing

Our Competitive Advantage

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.

9. SALES AND MARKETING STRATEGY

Sources of Income

We are in the Cardboard Box and Container Manufacturing industry to maximize profits and we are going to ensure that we achieve or business goals and objectives. Perfect Edge® Carton Box Manufacturing Company, Inc. will generate income by selling the following products;

Manufacturing corrugated and solid fiber boxes
Manufacturing folding paperboard boxes
Manufacturing non – folding sanitary food box containers
Manufacturing fiber cans, tubes, drums and similar products
Manufacturing rigid-sided setup paperboard boxes

10. Sales Forecast

The Cardboard Box and Container Manufacturing industry is one industry that has a wide range of customers. We are well positioned to take on the available market in the United States of America and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six month of operations and grow the business and our clientele base.

We have been able to examine the Carton Box Manufacturing industry, 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 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;

First Fiscal Year (FY1): $350,000
Second Fiscal Year (FY2): $650,000
Third Fiscal Year (FY3): $1.2 million

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 manufacturing or retailing same products 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

Before choosing a location for Perfect Edge® Carton Box Manufacturing Company, Inc. we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become one of the preferred choice for businesses not only in Baton Rouge – Louisiana, but also throughout the United States and the globe.

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.;

Place adverts on community based newspapers, radio stations and TV stations.
Encourage the use of word of mouth publicity from our loyal customers
Leverage on the internet and social media platforms to promote our business.
Ensure that our we position our banners and billboards in strategic positions all around Baton Rouge – Louisiana
Distribute our fliers and handbills in target areas in and around our neighborhood
Advertise our carton box manufacturing company in our official website and employ strategies that will help us pull traffic to the site
Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to carton box manufacturing companies, it is normal for consumers to go to places where they can get carton boxes at cheaper prices which is why big player in the industry like WestRock Company, International Paper Company, Georgia-Pacific LLC and Packaging Corporation of America et al will always attract loads of clients.

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;

Payment via bank transfer
Payment with cash
Payment via Point of Sale Machine (POS)
Payment via online bank transfer
Payment via check
Payment via bank draft

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

13. Startup Expenditure (Budget)

These are the key areas where we will spend our startup capital on;

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.

Generate part of the startup capital from personal savings
Source for soft loans from family members and friends
Apply for loan from the Bank

N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

Part of the plans we have in place to sustain Perfect Edge® Carton Box Manufacturing Company, Inc. is to ensure that we continue to make available a wide range of carton boxes, 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. 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

Business Name Availability Check: Completed
Business Registration: Completed
Opening of Corporate Bank Accounts: Completed
Securing Point of Sales (POS) Machines: Completed
Opening Mobile Money Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Leasing of facility and remodeling the facility (cardboard packing and carton boxes manufacturing factory): In Progress
Conducting Feasibility Studies: Completed
Generating capital from family members: Completed
Applications for Loan from the bank: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents and other relevant Legal Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Promotional Materials: In Progress
Recruitment of employees: In Progress
Purchase of machines and equipment: Completed
Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business both online and around the community: In Progress
Health and Safety and Fire Safety Arrangement (License): Secured
Compilation of the list of products that we will be manufacturing: Completed
Establishing business relationship with vendors – supplier of cardboard packing and carton box making raw materials, key stakeholders and suppliers of carton boxes and cardboard packing materials: In Progress.