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HOW TO MAKE A BUSINESS PLAN FOR PRODUCING BIOGRADABLE PACKAGES

Today, many manufacturers of various products prefer environmentally friendly packaging materials – biodegradable bags and packaging. The global tendency to limit the use of polymer packaging that is harmful to nature leads to the fact that in the near future they will be completely replaced by eco-packages. The domestic market for environmentally friendly packaging is just starting to develop, which makes the production of biodegradable packages an attractive idea for a startup. After all, packaging is the best-selling product in the world!

WHAT ARE BIOGRADABLE PACKAGES MAKING FROM?
The production of bio-packages.
Eco-bags are made of polymer material, into which biopolymer additives-degradants are added during production. When it enters the natural environment, the eco-package begins to naturally decompose due to the activity of natural microorganisms that destroy the structure of biodegradable material. The result is less environmentally friendly packaging compared to traditional plastic.

3 ADVANTAGES OF BIODEGRADABLE PACKAGES FOR BUSINESS
The manufacture of eco-friendly packages provides several advantages at once on the packaging materials market:

High quality. Despite the slightly higher cost, biodegradable bags have the same strength characteristics as ordinary plastic bags, but their environmental impact is much less. Thus, enterprises reduce the cost of disposal of illiquid products in packaging.
Attractive design. Biodegradable bags are also easily molded, like traditional plastic, they can be cut and designed in various ways according to customer needs.
Positive image of the business. Offering biodegradable plastic bags to his clients, the entrepreneur helps his clients create a positive image of a responsible and mature business.
Biodegradable bags are becoming more and more popular due to the concern of many countries with the problems of garbage pollution and global warming, so we can safely say that the production of eco-bags and packaging will only increase in the coming years.

Interesting fact! The process of decomposition of biopolymer material in open conditions is 180 days.

FIRST STEPS TO STARTING PRODUCTION
The bag is disposed of with organic waste.
Before starting a business for the production of biodegradable bags, it is necessary to calculate the investment costs associated with the purchase or rental of land, construction, and the purchase of equipment.

The main document of a novice entrepreneur is a business plan: it provides detailed information about the planned business. It contains data on the basis of which the project can be evaluated and declared feasible. Be sure to include information in the business plan on the economic, technical, financial, managerial and production aspects. Mandatory points for the preparation of a business plan for the production of biodegradable garbage bags and packaging:

expected future demand;
market size;
market statistics;
Trends
SWOT analysis;
development forecast.
The business plan should include a comprehensive analysis of the industry, as well as data on the production part of the business, including:

requirements for premises and production facilities;
list of equipment and production flow chart;
general investments together with a detailed calculation of the rate of return;
break-even analysis and profitability analysis.
The report should also provide a bird’s eye view of the global industry with detailed information on the projected market size, and then proceed with a detailed analysis of the industry.

EQUIPMENT FOR THE PRODUCTION OF BIODEGRADABLE PACKAGES
Production mini-workshop.

For the manufacture of any packaging, not so much equipment is required, which makes it possible to run a business even at minimal capacity. To produce eco-friendly packages you will need:

Extruder – for blowing out the desired shape from the polymer mass.
Cutting machine – for dividing packages into units and giving them the final shape.
Printing press – for applying the manufacturer’s logo or customer’s logo with flexographic printing.
The cost of purchasing equipment is only part of the cost of organizing the production of biodegradable bags for: seedlings, garbage or food.

ECO-PACKAGE PRODUCTION COSTS
To start the production of environmentally friendly packaging, such material costs will be required:

purchase of equipment – $ 25,000;
rent or construction of a production building – $ 100 per month (rent) or $ 30,000 (construction);
purchase of raw materials – $ 5,000;
registration and business support – $ 2,500 + $ 300 monthly (taxes);
salaries of employees – $ 1,000-4,000 (monthly);
payment of utilities – $ 500-800 (monthly).
The above cost calculations are approximate and may vary depending on the scale of production, the capacity of production equipment, the number of personnel and other factors.

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