Becoming an Entrepreneur
How to Start a Contract Packaging Business
Tap into our advice on how to start a contract packaging business. Here are some proven strategies and tactics.
Thinking about opening a contract packaging business? We tell you what you need to know to get started.
Elements of a Contract Packaging Company Business Plan
Looking for a one-size-fits-all business plan? Good luck. . . because it doesn't exist. However, the most effective business plans do address specific sound business plan elements:
- Mission Statement – Your description of your contract packaging business's reason for existing.
- Goals & Objectives – A list of mile markers on your contract packaging business's road to success.
- Financial, Marketing & Action Plans – Specific plans that describe your business environment, demographic targets and quantitative estimates.
Don't Ignore Competitors
Prior to opening a contract packaging business in your town, it's a good idea to determine how strong the competition is. Try our link below to generate a list of competitors in your area. After following the link, enter your city, state and zip code to get a list of contract packaging businesses in your area.
If there's too much competition, it may be wise to consider starting the business in a less competitive marketplace.
Finding a Non-Competitive Business Mentor
If you want to open a contract packaging business you really ought to learn as much as you can from somebody who is already in the business. If you think your local competitors will give you advice, you're being overoptimistic. It'd be crazy for them to teach you the business.
However, a fellow entrepreneur who has started a contract packaging business in a different city will be much more likely to talk with you, once they realize that you are not going to directly compete with them in their community. Indeed, many experienced entrepreneurs enjoy offering advice to startup entrepreneurs. In my experience, you may have to call ten business owners in order to find one who is willing to share his wisdom with you.
How would you find a contract packaging business owner in another city who you can speak with?
No problem! Just use the link below and try a random city/state or zipcode. Then start dialing for advice until you are successful.
Top Three Reasons to Buy an Established Contract Packaging Business
It's almost always preferable to buy a contract packaging business than to pursue a contract packaging business startup.
You'll want to conduct a comprehensive due diligence process, but here are three arguments why you should think about buying instead of a startup.
- Initial Revenue. Startups struggle to bring in revenue right out of the gate while existing businesses usually have a steady stream of income.
- Operational Efficiency. When you're shopping for a contract packaging business, be sure to look for ones that have all of the necessary processes and systems to ensure seamless operations from your first day of ownership.
- Capital Acquisition. Lenders, investors and other funding sources almost always prefer business purchases to startups.
Franchising May Be a Better Way to Go
The odds of doing well with your venture go up significantly if you opt for franchising and benefit from the prior work of others and their lessons learned.
Before opening a contract packaging business, a smart move is to determine whether franchise opportunities in your space might simplify your entering the business.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
More Advice for Startups
These additional resources regarding starting a business may be of interest to you.
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Additional Resources for Entrepreneurs