How to Start a Profitable Envelope Making Business

Envelope-making business is a low-cost manufacturing business that has a good demand around the year. The paper envelope is still an important office and school stationery item even in today’s internet era. Apart from that, every greeting card needs to have an envelope.

By establishing a small envelope-making unit you can produce the desired quantity of paper envelopes automatically. Envelope making is one of the most profitable home-based manufacturing business ideas one can start part-time also.

Apart from paper envelopes, there is another potential market for synthetic paper envelopes. From the same unit, you can produce this also. The demand for synthetic paper envelopes is also increasing day by day in view of making envelopes for the despatch of magazines, books, etc. Because of its strength, good printability, and weather resistance, synthetic papers/envelopes are preferred.

Here are the 10 Steps to Start Envelope Making Business

1. Understand the Local Market

It is essential to know more about the local market potential and buying trends of paper envelopes. Do market research and find out the scopes and threats of the business. It will help in planning the envelope business better.

2. Different Types of Envelopes

In the domestic market, we find different types of envelopes. Such as the plain envelope, colored envelopes, envelopes printed with the organization’s details, envelopes with windows, and envelopes made of useless paper.

In addition, according to the style, there are several envelopes available in the market. The list includes commercial or regular, envelopes for catalog or booklets, letterhead size envelopes, etc. Generally, different companies often look for professional envelope-making companies.

Generally, printed or promotional envelopes fetch better profit than normal envelopes. It is advisable to concentrate on value-added envelope manufacturing to make your startup more profitable.

3. Make YourEnvelope Business Legally Compliant

You can start the envelope-making business as a proprietorship company. In that case, you will need to register your business as a Person Company (OPC) with the Register of Companies. If you are starting your business with some other partners, you can go for LLP, Pvt Ltd., or Ltd Co. registration.

Obtain Trade License from the local Municipal Authority. Apply for GST Registration. This type of small-scale unit does not demand any permission from the Pollution Control Board.

4. Name Your Business

Find a catchy name for your envelope company. The name must correctly manifest the type of business you are going to set up. A proper name will not only enhance brand personality but also will help customers recall your company whenever they plan to buy paper envelopes.

5. Raw Materials For Envelope Making

The main raw material for envelope-making is paper. Different quality of paper is used for envelope making such as map litho paper, scrap paper, and also sometimes useless papers. It generally starts from 70 gsm and according to the client’s requirement you need to procure the specific gsm quality paper. Also, you will have to procure other consumables like gum, glue, etc.

6. Envelope-Making Machines

Different varieties types of envelope-making machines you will find. For successful project implementation, selecting the right machinery is most important. According to your desired output quantity and specific envelope quality, you need to select the right machine for your business.

Generally, the different type of machines allows different specific GSM of paper into it. Also, you will need to procure the envelope window-making machine if you want to produce an envelope with a window.

Related: Profitable Small Business Ideas For Small Towns

7. Cost of Starting Envelope-Making Business

The primary investment in starting an envelope-making business is in buying envelope-manufacturing machines. The cost of a fully automatic envelope manufacturing machine ranges from Rs. 5 Lacs to Rs 15 Lacs. However, the cost will be much lower if you buy a semi-automatic machine.

Overall the total approximate cost of launching an envelope-making business is around Rs. 7 Lacs to Rs. 20 lacs on a small scale.

8. Arrange Funds

If starting small, paper envelope manufacturing does not require much investment. However, on a larger scale investment will be higher. There are multiple ways of getting funds to start a business. You also approach banks and financial institutions for term and working capital loans. For daily expenses, do not forget to have a business credit card.

9. Learn the Envelope-Making Process

The envelope-making production process is quite simple. First of all, fix all the papers over each other. And then use the envelope-making machine and dies to cut envelopes of a specific size. After the application of the gum, leave them to dry properly.

After drying completely it goes for packaging. They are arranged in different volume cartons with different numbers. In envelope making, you will need to pay attention to storage and means of transportation.

10. Have a Marketing Plan

It is extremely important to have an effective distribution network of retailers and distributors to establish a successful paper envelope business. Also, create a website and have an online social media presence. This is because more and more customers are showing interest in buying online.