Paper Mill Business Plan – How To Start Paper Making Business

paper mill business plan

Smartphones might have put an end to papers to some extent but paper still used in many offices and schools. For office purpose papers are used to print out different files and documents. For printing schools books and textbooks, papers are used extensively, this is the reason paper manufacturing companies exists and makes huge profit out of this business. Plan to start paper making business can be profitable if you approach effective business plan.

Let’s discuss how to start paper making business

Investment For Setting Up The Paper Mill Business

If you have land where you can setup the paper making machinery then you have saved some huge investment but apart from that it is clear that capital money is needed to start any kind of business. Some big investment in this business is in buying equipment and machinery. Depending upon the how large you have to start this paper mill you need to invest money accordingly. Other investment terms are discussed below which is setting up mill, labour, transportation unit, etc.

Get It Registered

Registering a business name is essential for every business in any country. You are going to make money from this paper mill and you will be liable for income tax as per your country rule. Business registration process may take upto 1 months and it depends in your residing country laws. You need to follow all legal formalities and get approval from authorized persons.

Buy The Machinery

Buy the required machinery from authorised seller in your country. There are lots of machinery available and pricing of each machinery depends upon the production capabilities. If you are willing to start with small paper mill then go with smaller machines which has less production capabilities compared to heavy high production units. You can also import the machinery from China, you could get best deal in small machines from there. Visit two or three suppliers in your city and compare the price then decide according to your budget.

Hire Staff

You will require labour for operating the machines and for doing some other works like raw materials loading and transporting. Train your staff to operate the paper mill machines properly. At the beginning you are going to bear the labour cost, so make sure that you are using them efficiently. Make then expert in operating machines.

Paper Mill Raw Materials

Connect with dealers who supply raw materials in your city. Raw materials comes from wooden fibre from saw mills, coniferous trees (also known as softwood in paper industry). Get information on raw materials which produces strong papers. Quality of final product will depend upon raw material used. You need to buy all material needed to make paper. Depending upon the requirement you need order material. Do not order material in excess quantity in case if you fail to achieve sales then excess material goes wasted. You need to take help of professionals who can help you understand demand and supply of the product. Visit few paper mill in your area and get information from there.

Competitor Analysis

You need to understand the paper business market; you need to understand your competitors. After knowing who are your competitors you need to come up with better strategies to withstand cut-throat competition from them. You need to be innovative in the market otherwise, it would be difficult for you to survive. You need to follow the effective business plan and work accordingly.

Machinery and Equipment Analysis

Making papers is not a child’s play you need to buy big machines which can make papers of any size in less time i.e with high production rate. There are various machines available in the market for different purpose and to produce different types of paper. You need to make extensive research to understand what kind of machinery and equipment you need. After research you need to spend money on most suited machinery, otherwise, you will overspend and money gets wasted ultimately.

Promote Your Business

Connect with local dealers and supply paper to them. Research on pricing and offer them your product in competitive price. Once you are done buying machinery, equipment and hiring labor you need to concentrate on advertisement and marketing. Consider hiring a salesman and offer him percentage in every lead they bring to you, this is one important process that helps you to sell your product. Also, you need to put ads in newspapers, televisions, magazine ads and ads on the internet to reach millions of people across the country. You need to advertise your product in a most creative manner to attract customers. You need to ensure quality in every paper you make to win hearts of customers. Without advertisement, you cannot achieve your targets.

Vehicles For Transportation

Once you start paper business then the next step would be distribution. You need to arrange transportation of papers to the buyers who wish to buy paper from you in large quantities. You need to supply paper to any distance in order to survive in the market. You should never ignore any orders. You need to meet every order, no matter how much is the quantity.

Meeting targets without fail and fulfill the needs of customers, supplying the stock timely manner can help you survive in the market. You need to understand your competitors and you should always think a step ahead of your competitor. You should never forget quality is the ultimate weapon to survive in the market. If you make paper of inferior quality then you will be ignored and you cannot sales that you wanted to.

Always remember that innovative ideas and innovative thinking can help your company run with profits all the time.


  1. Comment:
    Hello Sir/Madam I am interested to start small scale PAPER MAKING FACTORY. Pls, could you kindly send me complete information to step by step processes of paper making? Machinery cost, needed materials, etc. I AM FROM NIGERIA, KANO CITY.