Stories by Bimbola Oyesola
One investment that entrepreneur can make money through the year is operating a Paper Mill. Paper production is a huge investment and it is a product we see round us be it at home or in the offices.
A product that attracts a huge market and insatiable demand is paper. Paper is used in different product such as tissue paper, files, envelops, ledgers, including newspapers.
A paper mill factory produces paper in rolls or sheets. The raw material used in making paper is wood pulp or recycled paper.
A paper mill can be non-integrated or fully integrated. Fully integrated mills are capital intensive and easily accommodate the entire production process.
Fully integrated mills harvests the logs process into chips and to produced paper. The business is profitable, regulated and moderately challenging.
To successfully run a paper mill factory you need adequate funding. Other considerations are labour costs, cost of raw materials and brand awareness.
There are different kinds of paper mills powered through automated or semi automated technology.
As in every business, there are basics steps essential to run a successful paper mill industry.
Research
Research is the number one thing to do here. Going into a new business, a new terrain, then you need to know how it is run, what you need to do to succeed. That includes carrying out investigation about your competitors and available market. Hire a trained marketer to identify and reach your potential customers.
Hence, before starting your business enterprise, it is important for you to write a comprehensive visibility study. Factor type of machinery, labour costs, raw materials and marketing.
Use market analysis, surveys to get valuable data. Find out the essential paper products that attract high demand in your locality. You may also need to conduct a feasibility study to identify best locations to setup your factory.
Funds
Funds are needed to buy machines, lease property, hire skilled staff, purchase raw material and marketing. However, there are different ways you can raise capitals for the business, personal savings, family and supports from friends. You can also approach commercial banks in your area for loans, but you may need collateral for this.
Another way is to get a core investor or accommodate a business partner. Other banks you can approach are trade banks, merchant banks and bank of industry and commerce.
Registration
Just like other small, medium or large companies you need registration. Choose a good business name and register as a one man business or limited liability company.
Secure a trade license and insurance license. Your company needs to pass fire safety certification tests. Don’t forget to get a value added tax identification number for your products.
Location
Part of the economic fundamentals on factors of production, is nearness to the source of raw materials. So as an enterpreneur, locating your factory close to the source of raw materials will reduce transportation costs and add to your profit margin. The type of machinery also determines the size of your paper milling factory. Machinery comes in different sizes, designs and functionality.
Another major consideration is accessibility to transport your goods. It is essential you find a suitable location with good road network to and from the factory.
Machines and Equipment
The major machine turns pulp into paper and cutting machine. There are many brands in the market, that is more reason for the research.
You can purchase new, used or old machines. The machinery used in producing different types of paper is expensive. There are many equipment that do different functions. Listed below are some machinery and equipment found in a paper factory.
•Decker Thickener, Head box for Paper mill, Jumbo Press for Paper Machine, Slitting rewinding, Machine for paper, Spares for paper mill, Paper making machine, Kraft paper making machine, Newsprint paper making machine, Slap conveyor for paper mill, Hydra pulper for paper mill, Vibrating screen agitator for stock, Chest paper mill, Central cleaner system, Inverse press for paper mill, Paper mill dryer section, Silent drive for paper mill, Duplex paper machine, Pulper to waste paper
Raw materials
The major raw material used in the production process is wood. Other materials are recycled paper, cotton, recycled cloths and bamboo.
Wood is converted to pulp in a mix of sodium sulfide and sodium hydroxide. It then goes through pounding, squeezing and additives. There are different types of paper, the coated, fine, specialty paper and un-coated paper.
The un-coated commercial print paper includes offset, carbon-less, vellum Bristol and Ledge. Others are index paper, tag, bond, Kraft and cover paper.
While fine printing papers are Cotton Bond and Bond Watermark. The papers are used for text and writing. Bright white offset and cover coated are used as calendars, covers and for advertisement.
Specialty papers are digital imaging paper and dry gum label.
Branding
The basic thing needed to make it in this business as in the others is to produce high quality paper, use competitive pricing and branding. The quality of your product will attract lots of patronage.
Brand your products by creating a good brand name, packaging and promotional material. The labour requirements to run a paper mill company are huge. You need qualified machine operators and packaging crew. The company needs a marketing department and administrative staff.
Other employees are drivers, clerical officers and cleaners. Your company needs lots of energy, water and wood pulp to work efficiently.
Marketing and Advertisement
Advertise in local publications, newspapers and magazines. Major consumers of paper are printing press and publishing firms.
Manufacturers that use paper as raw material for their products are also major consumers. You should network with stationary wholesalers and retailers. Build a website and employ other social media tools, like Facebook, Instagram,Twiter to reach more customers. Maximise all the distribution channels at your disposal, distribute your product through land, sea or air. Definitely you need a cost effective distribution system to reach your target market.