Do you want to start a fancy envelope-making business project at home? Find here a detailed envelope manufacturing business plan guide with machinery, market potential, raw materials, and process.
Basically, paper envelopes are stationery articles. Generally, an envelope is a common packaging item that is only a folded piece of paper mainly designed to contain a flat object like a card or letter. The quality of the envelope depends on its strength weather resistance, good printability, etc.
People use these items for enfolding letters (documents). Generally, educational institutes, offices, and commercial centers use the envelope on a regular basis. Additionally, the product has domestic consumption too.
For sending invitation letters and greetings cards, and monetary gift envelopes are the mandatory items. If you want to start a low-cost business, then you can consider starting an envelope-making business. Also, you can initiate the business both on a full-time or part-time basis.
A fancy envelope-making business is a financially viable opportunity. Additionally, the business has enough potential for expansion also. With simple machinery and raw materials, you can make and sell the envelopes for money.
Envelope Making Market Opportunity & Potential
The demand for envelopes increases with the growth of industrialization, education, and commercial activities. One of the significant factors that will contribute to the growth of the envelope paper market is the growth of the eCommerce business. Actually, many web-based e-commerce businesses require versatile packaging to transport goods through the mail for various products.
The envelope papers are lightweight, occupy less storage space, are easily transportable, and are recyclable. Geographically, you can segment the envelope paper market into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.
Basically, India and China have expected significant growth in the envelope paper market due to some key factors. It includes a growing population, expanding the base of professionals, increasing literacy rates, and government initiatives to improve the education sector. North America and Europe are expecting significant growth due to a high standard of living and increasing disposable incomes. The Middle East and Africa are expected to observe considerable growth rates in the envelope paper market in the near future.
Different Types of Envelopes
Broadly, there are two different types of envelopes. These are regular window envelopes. However, according to the size and pattern, there are several different types of envelopes you can find.
a) Regular Envelopes
Basically, regular envelopes may come with a window or without a window. Generally, these envelopes are used officially.
b) Catalog Envelopes
The catalog envelopes come with a flap on the smaller edge side. Mostly used for sending correspondence or for marketing.
c) Booklet Envelopes
Actually, the booklet envelopes have a flap is on the longer edge side. People mostly use this for sending correspondence or marketing tools.
d) Invitation Envelopes
Generally, the most popular invitation envelopes come in various sizes based on the type of insert going into these envelopes. Mostly used for invitations, greeting cards, note cards, and rsvp.
e) Remittance Envelopes
These envelopes provide a way for donors to fill out personal information. People use these envelopes for financial gifting purposes.
f) Small Speciality Envelopes
Basically, people use this envelope each with a unique purpose. Sometimes for coins, packing lists, etc.
g) Announcement Envelopes
Announcement envelopes typically have either deeply pointed flaps and diagonal seams or deep square flaps with two side seams. They are used with baronial cards, informal mailings, and social and commercial announcements. This style of the envelope is enhanced by the use of many kinds of paper stocks.
Here are the 5 Steps to Start Envelope Making Business
1. Market Survey & Business Plan
In starting this business, you will need to understand the specific demand in the market. Basically, it depends on the marketing strategy also. If you want to sell the envelopes online, then you have a complete range of basic envelopes with fancy envelopes.
However, if you want to sell the envelopes in the local market, then you must consider starting with a specific niche. Moreover, understanding the specific demand and fixing the right business model is important in this business.
After deciding on the product, you will need to craft a business plan. Here, you have to include the business goal, marketing strategy, and financial analysis consisting of costs and ROI.
2. Arrange Finance
After crafting the plan, you will need to arrange the finance. If you want to start a small unit, then it is better to start with your own money. However, you can also apply for bank loans. If you can establish the unit with your own fund, then you can only apply for working capital too. However, for applying for a bank loan, you will need to provide collateral security to the bank.
3. Establishing Unit with Machinery
When you have arranged the finance, you will need to establish the unit. First of all, ensure a location. If you want to start from home, then also you must determine a specific space for envelope making. Otherwise, a 200 Sq Ft space is just great for starting a small unit. However, you must have the electrical connections and an easy transport facility.
4. Envelope Making Process & Raw Materials
The major raw material you need is craft paper role for producing envelopes. Additionally, you will need to procure glue.
First of all, cut the paper into the required sizes. Then, feed the cut papers into the envelope-making machine in blocks of 150 to 200 sheets depending on the thickness of the paper. The fold and apply glue to form the required envelope. Finally, pack the envelopes and distribute them to retail stationery shops.
For making fancy envelopes, you may need different types of decorative items like colorful threads, beads, buttons, etc.
5. Where to Sell the Envelopes?
Literally, there are several numerous options where you can sell the envelopes. Some of the most potent ways are retail distribution, selling from online marketplaces, and from your own website.
Apart from only a website, you can also set up a small eCommerce store of your own. Also, you can consider selling your decorative envelopes from the crafts selling sites.
Basically, the envelope-making business is a low-cost opportunity for men, women, students, and working professionals too. However, the right business planning and strategy making are important for overall success in the business.
Rupak is the founder of MUVSI. He is a small business consultant by profession. His mission is to make people know how to make money and understand personal finance for a better living.