Are you about starting a tissue paper manufacturing business? If YES, here is a complete sample tissue paper manufacturing business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a tissue paper manufacturing business. We also took it further by analyzing and drafting a sample tissue paper manufacturing marketing plan template backed up by actionable guerrilla marketing ideas for tissue paper manufacturing businesses. So let’s proceed to the business planning section.
Why Start a Tissue Paper Manufacturing Business?
The tissue paper business is one of the easiest businesses any entrepreneur that is focused can go into. It is a business where you can make profit in a short while due to the fact that tissue is an essential commodity that is used in everyday affair. The use of tissue paper started in the 1920s and has since seen a tremendous growth in its use, a fact that has caused many innovative entrepreneurs to go into the business and make good profit for themselves.
Regardless of the fact that many people have succeeded in the tissue manufacturing business, many have also failed because they didn’t carry out a thorough research on the business before starting. A thorough research means approaching those who are already in the business or business consultants who have experience in the field you intend to go into. Also, having an experience in the business you intend going into is vital as it will help you through the challenges that might crop up while you intend to run your business.
Before going into the tissue paper manufacturing business, it is best you know what niche you intend to specialize in, and this might be determined by your budget and how large a scale you intend to run the business. However, before thinking of all these, you would need to have a business plan that will help guide you in running your business. Below is a sample tissue paper manufacturing business plan:
A Sample Tissue Paper Manufacturing Business Plan Template
Tissue papers are basically made from three major raw materials such as chemical pulp, mechanical pulp as well as recovered paper. These raw materials are then made into Bathroom tissue, paper towel, facial tissue, wrapping tissue, paper napkin as well as specialty tissue. However, the quality of the tissue papers, such as its porosity, absorption, tensile strength, coarse nature, and tactility, might vary depending on where it is intended to be used.
Basically, the tissue paper industry has two broad categories known as At Home and Away from Home. At Home tissues which are also called consumer tissues are mainly used for purposes that are domestic in nature, while Away from Home are used mainly for industrial and commercial purposes.
The demand for tissue paper is continually increasing mainly due to the fact there are few substitutes for tissue papers and those available aren’t sufficient enough to shift people’s interest to it. Another factor that has seen the growth of the tissue paper industry is the rise in Gross National Income.
This does not however mean that the industry hasn’t encountered its challenges as more people are demanding hand dryers in place of tissues, and green environmentalists are making a strong point against felling of trees.
The industry is one that survived the economic downturn better than other manufacturing industries because tissue paper is regarded as a necessity. The recovering economy has seen consumers going for tissue papers that are of high end therefore boosting more revenue for the industry. The growth projection for this industry was pegged at 0.1% between 2011 and 2015.
The industry is a capital intensive one because it relies heavily on machinery, with efficient machines being constantly worked on so that the whole tissue paper manufacturing process can become better and also allow entrepreneurs to make more money.
The demand for tissue paper in the United States has remained stable for more than 17 years, with the market growing at 2% annually. This has been of a great advantage to tissue paper manufacturing companies whose revenue has increased steadily as the year progresses, especially as the recent recession barely affected these companies.
A fast growing segment in the tissue paper manufacturing industry is the private label market, which is competing fairly with branded tissue counterparts. Between 2003 and 2013, the private label market in the United States has grown by 8%. Also, the market share for private label tissue for a decade is now at nearly 32% up from 18%.
The level of competition in the industry has seen more local tissue manufacturing companies having advantage with getting and retaining customers especially as users prefer to identify with manufacturing companies which are closer to them than those that are far away. Also, the local manufacturers have the advantage of setting lower prices for their tissues especially as they would not need to deal with shipping costs in getting the tissue papers to their customers.