Do you want to start a tissue paper company? If YES, here is a 17-step guide on how to start a tissue paper manufacturing business with no money or experience.
This business is very lucrative due to the high demand of tissue papers. The usage of tissue papers is not just restricted to homes, restaurants and hotels but it used in almost every place where health and hygiene conscious people are present.
When started and ran properly, this business idea can be very profitable as long as you have a well-researched business plan, suitable business place, skilled labour and most importantly the sourcing of raw materials. Toilet paper manufacturing business doesn’t need a genius manager to run.
If you possess the right skills, personality and attitude, then your business can be one of the most successful manufacturing businesses across the world.
Tissue manufacturing plants are large in size and this means that financing it can be expensive. You will need capital to buy the needed equipment for your toilet paper manufacturing business, but then you should consider buying cheap high quality equipment.
If you get good ones, you can save some of your money and at the same time produce high quality toilet papers. You need to ask an experienced entrepreneur how to setup a toilet paper manufacturing business. If you implement it correctly, you will be successful in setting up your business.
When planning to set up a toilet paper manufacturing business, you have to concentrate on the specific things that you will need for your business.
Steps to Starting a Tissue Paper Manufacturing Business
1. Understand the Industry
Experts expected the global tissue paper market to enjoy substantial growth over the next 5 years on account of its multiple applications in the growing markets. The drivers of the tissue paper industry are expected to be the changing lifestyle of consumers, rising healthcare expenditures, growing population and low penetration of substitutes for paper tissues.
Also, the tissue paper industry is expected to dominate the market owing to the growing awareness of cleanliness. The production of tissue paper is done by a paper machine which is fitted to a single large steam heated drying cylinder with hot air hood on it.
The raw material used in its production is generally paper pulp, though, owing to the technological advancement and innovation in the manufacturing of tissue paper, paper pulp is now used in less quantity. The tissue paper market is classified into three main types on the basis of the raw material used for its production.
They include; wood free (or chemical), wood containing (or mechanical pulp) and recovered paper. The tissue paper market is further categorized into five types based on usage into, Bathroom Tissue, Paper Napkin, Paper Towel, Facial Tissue and, Specialty and Wrapping Tissue.
This industry aids deforestation, so companies producing tissue paper are expected to take steps to minimize the impact of production on the environment. The awareness among people about conserving the environment has led to the controlled use of tissue paper.
Companies are expected to invest in research and development projects in order to come up with new ways of producing tissue paper, thus reducing the impact on the environment.
The united states is expected to be the highest consuming market of tissue paper on account of high literacy rate and per capita disposable income. The European market is expected to grow eventually due to the growing awareness for hygiene and personal care.
In the meantime, the Latin American market is expected to witness sluggish growth due to weak purchasing power and a developing economy.
Asia Pacific market is expected to grow substantially on account of the increasing literacy rate and consumer purchasing power. The Middle East and Africa market is expected to grow on a large scale owing to its location which bridges the gap between the eastern and western market.
2. Conduct Market Research and Feasibility Studies
- Demographics and Psychographics
With the world understanding the need for proper hygiene, the demand and use of tissue papers are also increasing. The products of this industry are widely used in hotels, restaurants, clubs, hospitals, beauty salons and even in homes.
You can easily start a small scale tissue paper making business and make a good profit in short term. It is very important to state that you can grow your business from small scale to medium or large with ease. The tissue paper business also has great potentiality in the international market if you can produce quality products.
Note that as an entrepreneur, you need to be equipped with adequate information and knowledge about the business. We suggest you visit factories and do a case study on how things are run over there. Learn from them and plan your business accordingly.
3. Decide What Niche to Concentrate On
Doing a thorough research for your business is pertinent if you plan to run a successful business. It’s your duty as an entrepreneur to gather adequate information on manufacturing process, working capital, cost of the required machinery, how to fund the business and the niches in the industry.
Before starting your business, choose the type of product you want to produce. If you have a large scale business, you can include two or more types of products in your manufacturing list. There are different types of tissue papers available in the market. They may include..
- Toilet Tissue Paper
- Facial Tissues
- Tissue Napkins
- Paper Towels
The Level of Competition in the Industry
According to reports, people in North America are consuming around three times as much tissue as Europe. Out of the world’s estimated production of 21 million tonnes (21,000,000 long tons; 23,000,000 short tons) of tissue, Europe produces approximately 6 million tonnes (5,900,000 long tons; 6,600,000 short tons).
Tissue paper production and consumption is expected to grow favourably due to factors like urbanization, growing disposable income and consumer spending.
The general paper industry has been affected by the growing awareness of the repercussions of deforestation but the paper tissue industry, along with the rest of the paper manufacturing sector, has worked to minimize its impact on the environment.
Reports also have it that recovered fibres now represent some 46.5% of the paper industry’s raw materials. The industry depends heavily on biofuels (about 50% of its primary energy).
Its specific primary energy consumption has reduced by 16% and the specific electricity consumption has reduced by 11%, due to measures such as improved process technology and investment in combined heat and power (CHP).
Specific carbon dioxide emissions from fossil fuels reduced by 25% due to process-related measures and the increased use of low-carbon and biomass fuels. Once consumed, most forest-based paper products start a new life as recycled material or biofuel.
4. Know the Major Competitors in the Industry
- Georgia-Pacific LLC
- Kimberly-Clark Corp.
- Svenska Cellulosa Aktiebolaget SCA (publ)
- The Procter and Gamble Co.
- Asia Pulp & Paper (subsidiary of SINAR MAS Group)
- Cascades Inc.
- Clearwater Paper Corp.
- Empresas CMPC
- Corolex
- Hengan International
- Industrie Cartarie Tronchetti S.p.A. (ICT)
- Metsä Tissue
- SOFIDEL
- WEPA
Economic Analysis
Businesses in the Tissue paper manufacturing business are now striving to come up with newer products that will enable industry consumers to spend more on variants of the same product in the areas that have mostly been drained.
This according expert is a clever sales technique, which has been pushing the sales of tissue paper worldwide, especially in regions where the tipping point of volume sales has been already reached. Reports have it that the global tissue paper market finds maximum growth in APAC and MEA.
Have it in mind that these are the key regions that are developing in leaps and bounds and are also expected to do so in the future.
In this new age, tissue manufacturing businesses are advised to look toward expanding their markets to such economies where the need for them is at its peak. Individuals in these regions are currently adopting the concept of westernization, and as such more people are adopting more modernized lifestyles, as a result of which the consumption volume of tissues in the region is all set to boom.
5. Decide Whether to Buy a Franchise or Start from Scratch
You need to understand that tissue paper manufacturing franchises gives a new entrant into the industry an amazing opportunity of moulding your creativity into a profitable business more than what you can achieve if you start from the scratch.
Indeed franchise opportunities come with their own pros and cons, but if you have a creative streak coupled with an entrepreneurial spirit, then starting and running a tissue paper manufacturing franchise may be an option worth considering.
Note that there are a lot of franchising opportunities available, and with so many options available, chances are you can find something that fits perfectly with your favourite business. Purchasing a franchise involves a significant investment.
Even though the initial expense may range from a thousand to a few hundred thousand dollars, a lot of entrepreneurs find that the investment is worthwhile. A lot of tissue paper manufacturing franchises offer name brand recognition that can be very challenging to obtain on your own as a home grown business.
Deciding to go the franchising route provides you with a turnkey system to work with that eradicate the need for costly trial and error. Bear in mind that making a product that is both marketable and profitable is a difficult task in this industry, and that’s before you try to calculate your time into the equation.
Choosing one of the successful tissue paper franchises means that the market has already been tested, and If people were not buying the product, it is safe to assume the company would not have grown to the point of offering franchises.
6. Know the Possible Threats and Challenges You Will Face
Running a tissue paper manufacturing business can be a very interesting venture. People are now giving much attention to their health and survival, which creates a huge demand in this business. Here are few threats you might face when starting your tissue paper manufacturing business…
- Registering your business
- Choosing a price model
- Simplifying your marketing plans
- Learning how to make tissue papers
- Deciding on the type of tissue paper you would be making
- Doing your feasibility research
- Choosing your work area
7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)
At this particular stage you have two key options to choose from- sole proprietorship and the LLC. But then for you to understand the tax liabilities for each, you have to understand the definition of the terms. First and foremost, the sole proprietor business structure is, as the name suggests, a company with a single owner.
This structure is used by three-quarters of all businesses. It keeps the owner in control of the company and has the simplest initial setup. The limited liability corporation, or LLC, is often formed for partnerships when the business has grown significantly. The advantage of an LLC is more options for growth and tax advantages.
Reports have shown that most entrepreneurs would rather create an LLC than a sole proprietorship because of liability issues, but then it takes funds to prepare the articles of incorporation. Payment options need to be considered, a bookkeeping system has to be in place, and this all takes additional money.
8. Choose a Catchy Business Name from the ideas Below
- Paper Candy
- Tissue Unlimited
- Zionsville tissue
- Beautiful papers
- Paper Express
- Clean addict
- Halo Tissue papers
- Tissue king
- Telco Tissue paper
- Manny Tissue papers
- Lyon Tissue papers
- NYC Purses
- Smooth papers
- Scented paper
- Acura tissues
- Savvy Tissue papers
- Tommy Tissue papers
9. Discuss With an Agent to Know the Best Insurance Policies for You
You have to understand that insurance is very important for your business as it can provide protection for a variety of risks. Some of the most common areas of coverage for manufacturers include Commercial Auto Insurance, Workers Compensation, and General Liability.
The idea behind having insurance is to protect the business from things like lawsuits, loss of personal and commercial property, and even damage to buildings. Things you will need may include;
- Public and Products Liability
- Stock and Contents for Fire, Burglary and Business Interruption.
- Professional Indemnity (if advice is given for a fee)
10. Protect your Intellectual Property With Trademark, Copyrights, Patents
In this new age and with the growing awareness, Intellectual Property in the United States has become increasingly crucial. With the arrival of the digital age, it has become much harder to remain in control of one’s intellectual property.
Intellectual property has grown from the need to protect one’s new invention such as tissues, to the need to protect a slogan or a colour. It simply means that intellectual property rights no longer protect just a trade secret; it is now to preserve one’s monetary gain. We can all agree that designing a product is hard work and as such it must be protected at all cost.
In the creative world, imitation is not the most sincere form of flattery; it’s a potential drain on your gross income and your ability to support yourself. Get the help of a lawyer who is experienced in this field to help you understand the necessary ways to protect yourself.
11. Get the Necessary Professional Certification
Getting professional certification isn’t a requirement for manufacturers, but it does help professionals stay up to date on industry trends. Professional certification though not mandated, but it shows your peers how serious you are about your standards.
Even though this industry lacks concrete professional certifications, you can still acquire general manufacturers’ professional certifications to set yourself apart in this industry.
- Certified production technician
- Certified Manufacturing Engineering Certification
- Quality Engineer certification
- Certified automation personnel
12. Get the Necessary Legal Documents You Need to Operate
Before you can start your tissue paper manufacturing business in the United States, you have to get the needed permits and licenses from both your state and local government. This is because you wouldn’t want the government closing you down for illegal business operations.
We strongly advise that before you start your tissue paper manufacturing business, speak to an attorney or an accountant.
You need to get advice on tax structures and insurance. To legally start a Tissue paper Manufacturing Business in the United States, you will need business documentation; exactly what permits and licenses you need will vary depending on where you live.
For instance, in Harris County you can start a manufacturing business with an assumed name certificate (DBA), sales tax permit and a tax resale certificate, if you want to purchase tissue paper manufacturing supplies or wholesale tissue papers without paying taxes.
To find out what you need to get your tissue paper manufacturing business started, contact your local small business development centre or Small Business Administration office, or better still an attorney.
13. Raise the Needed Startup Capital
We believe two types of finance are generally needed in the tissue paper manufacturing business. It is important to prepare a project report or business plan before initiating this business. Note that you can apply for a loan from any bank and financial institution.
In that case, owners credibility and at least 25% investment as owners allocation on total project cost is required. Other ways of getting funding may include…
- Personal savings
- Pitching
- Bank overdraft
- Crowdfunding
- Angel investor
- Partnership
14. Choose a Suitable Location for your Business
Choosing a suitable location for the plant is a crucial factor in this business. Your plant location should have easy availability of skilled labour, transportation, commercial electricity and water resources. It is advisable to have space in the industrial zone.
You will need to arrange specific space for manufacturing operation, raw material storage, finished goods and admin section. Tissue papers can be sold in a variety of different places, and the venue you choose would depend on how much money you have to start your company.
Note that cheap tissue paper selling venues include markets, e-commerce stores, online websites, and online marketplaces.
We believe that a lot of tissue paper manufacturing companies start with a smaller venue, wait until their company is established and then branch out into a more organized business location. It is a good idea to sell your tissue papers though different venues to make sure that you are generating steady income.
15. Hire Employees for your Technical and Manpower Needs
Before jumping into any manufacturing business, you have to make sure that you possess thorough knowledge about the product you hope to manufacture. If it is required, take the necessary training to gain experience in the business. You also need to have some managerial skills.
In a small scale business, you cannot appoint staff for every department like accounts, marketing, supervising and others. You may need to take the responsibilities of different jobs. This is why you have to make sure that you have the knowledge along with the will to work hard to enjoy the success of the business.
Also note that you will need to hire both skilled and unskilled employees to kick start your business. Indeed skilled workers will save you a great deal in the cost of training newbie’s as they will definitely bring in the experience they must have gathered from previous employers and at the same time train your newbie’s on the job.
Raw materials also play an important part in the successful running of this business. Core paper and jumbo reels are the main raw materials used in tissue paper manufacturing. The others materials are wrapping paper, glue, cellophane etc.
The process of the production of tissue paper is not a complicated one as most of the work will be done in the tissue paper making machines. Below is the different equipment that you will need for the manufacturing process:
- Band saw cutter
- Jumbo Reel Winding Machine
- Core Gluing Machine
- Cutting Machine
- Perforating unit
- Embossing unit
The Service Delivery Process of the Business
The production unit is the key to the success of your business. The quality of papers you make and how you market them will be the key that sets the tone for your business. The process of making tissue paper includes…
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Creation of the stock
First and foremost, the pulp is dissolved using water. The fibers in the pulp can either be fresh or derived from recycled paper. The fibers usually come from wood, although they also can originate from straw or sugar cane residue.
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Head box
At this stage the stock is sprayed into the machine and distributed evenly along the entire width of the machine in the gap between two rolls. On one roll there is a wire (screen cloth) and on the other a felt.
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Felt
The future paper attaches to the felt and follows it on into the machine. The felt is made of thick textile and absorbs some of the water.
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Pressing
At this stage the paper web is pressed between a suction press roll and the large Yankee dryer. The suction press roll is perforated and, together with the felt, removes the water from the paper web.
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Drying cylinder
Then the cylinder is heated up with steam under pressure. The paper web attaches to the hot surface of the drying cylinder. Water is now evaporated from the paper web.
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Creping
The creped structure of the tissue paper is achieved when the paper web is scraped away from the drying cylinder using a steel blade.
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Rolling
The finished tissue paper is rolled up onto large jumbo reels. The paper is now ready for processing in other machines, in order finally to be made into toilet rolls, kitchen rolls, paper tissues or paper towels.
16. Write a Marketing Plan Packed With ideas & Strategies
A well drafted marketing plan is simply a document that gives a clear vision of what you want to achieve in your business, at a given time and with the financial resources necessary to achieve the objectives and strategies of the business.
It examines the current situation of the business, performs its analysis, studies the competition; create strategies and action programs to be implemented. Your promotional strategies can determine the success or failure of your business. Ways to market your tissue paper manufacturing business may include;
- Leveraging social media platforms and traditional advertising strategies
- Using marketing materials
- Using satisfied customer testimonies
- Creating an attractive website
- Business networking and partnership
- Referrals
17. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity
The first step in branding your tissue paper manufacturing business is to make a name for yourself. What would you like your business or your tissue papers to be called and known for?
- Let your name and logo be creative
- Print out business cards
- Gain industry expertise
- Patronize local papers
- Sell online
- Use keywords and hashtags to your advantage
- Join tissue paper manufacturing Associations