Take a look around your pretty home, and you will see it filled with different papers and boxes.
It might be a delivery box from Amazon or a chocolate wrapper that you enjoyed as a snack. This means that packaging is everywhere, and it’s the ultimate reality of our modern world.
History says that packaging has been around for over 3500 years when Egyptian people made glass packaging. In addition, people in China started manufacturing mulberry bark containers. On the other hand, Napoleon was the one to promote canned food. As far as the brand packaging is concerned, it dates back to the 1890s.
In simpler words, it has witnessed upward growth since the 1800s, and by 2024, the packaging industry will reach the mark of $28 billion. In fact, the global market is generating $500 billion every year. This means that the packaging industry is the right way to begin your entrepreneurship journey, and we are sharing a full guide on how you can launch your own packaging business!
1. Start with Planning
Packaging business is like any other business – you’ve to ensure proper planning to ensure its success. Planning a business includes different steps, such as;
· Target Market
The packaging business is extremely versatile, which is why you must stick to a market. You need to determine if you will provide packaging for food companies or fashion and cosmetic brands. In fact, there is an option to offer packaging for household, pharmaceutical, and industrial companies. In simpler words, you’ve the anatomy to make this decision, but don’t do it with guesswork.
It’s better to research and find statistics on what’s trending. In addition, you have to determine if you will be targeting B2C or B2B audience. Also, the audience demographic will help you plan the packaging design, shapes, and colors.
It doesn’t matter what your business is about; you will always need sufficient resources. That’s because you’ve to worry about supply charges as well as packaging raw materials. So, when you are creating the business plan for your packaging venture, plan a budget because it will help you maximize the returns on investment (it will also increase your profits). When it comes down to monetary resources, you’ve to think about the following;
- First of all, you should try purchasing packaging in a larger volume because it helps reach the desired price point. However, it doesn’t always work because you might not get enough sales, which means your investment will be stuck. So, always purchase according to your requirements.
- Make sure you have a backup in terms of monetary resources to make sure you can grab the last-minute business opportunities.
- Always track the expenses. Many businesses make the mistake of calculating expenses and costs after a year, but it can be disastrous. As a business, you should analyze the budget on a monthly basis and make changes proactively.
Now that you know how to handle the expenses, we are sharing details about other core components!
Material is one of the most important factors because it’s the only raw material your packaging business cannot operate without. There are different types of materials that you can use to create packaging according to the brands you will be serving, such as metal, paper, glass, and metal. We have mentioned these because they are basic materials for custom boxes with logo.
Secondly, you’ve to remember that the world is adapting to the sustainable approach to packaging. For instance, Coca-Cola is working with an aim to use 50% recycled material in their packaging by the year 2030. In fact, the customers are also driving this change because 86% of them are ready to pay more for products if there is sustainable packaging available.
· Supply Management
Now that you have selected the most suitable materials, you need to find a manufacturer that offers high-quality materials at the price of your preference. For this purpose, you’ve to finalize the quantity of the order. It’s recommended that you hire an overseas manufacturer for more volume packaging, while local manufacturers are recommended for small-scale and personalized products.
2. Consider Customized Packaging
Customers are always looking for a personal connection with their favorite brands as well as products. That’s the reason companies are now focused on personalized. Not so long ago, Coca-Cola printed famous names and nicknames on their cold drink bottles so people could send them as gifts. In fact, people had the option to create virtual cans and order them online for gifting purposes. This helped Coca-Cola increase its sales by 19%.
This means that customized packaging is on the rise. So, if you want the packaging business to do well, you have to create a custom experience and offer something that pulls the customers’ heartstrings.
3. Web-to-Print Software
If you want to scale the business and yield the benefits of customization, we recommend investing in reliable web-to-print software. This software allows users to create customized packaging on a commercial scale through websites and place orders. You can connect this software with third-party tools for improved functionality.
4. Printing Method
Once you have decided on the software, it’s time to decide on the printing method. Some of these printing methods include;
- Lithography – it is used for food, electronic products, and cosmetic boxes because it can work with more than four colors at a time.
- Flexography – it is used for corrugated boxes and stand-up pouches. They are more affordable and can be manufactured quicker.
- Digital printing – it is used for films, labels, and folding paper cartons. It has minimal tooling charges, and the turnaround time will be quicker.
- Silksceen – it is a recommended choice for custom packaging and is used with meal or glass bottles.
- Rotogravure – it is mostly used for boxes and pouches designed for food items. That’s because it promises long-lasting printing, but remember the high costs.
The Bottom Line
On a concluding note, these are some tips that can help you get started with setting up the packaging business. However, you have to register the business, and if it’s your first time, you can hire a business manager to help you through the process. So, start saving up the capital, ensure a digital footprint, and watch yourself become a success story!
This content is part of the HWM Partnership.
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