How to Start a Packaging Design Business

Start a packaging design business by following these 10 steps:

1. Plan your Packaging Design Business
2. Form your Packaging Design Business into a Legal Entity
3. Register your Packaging Design Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Packaging Design Business
6. Get the Necessary Permits & Licenses for your Packaging Design Business
7. Get Packaging Design Business Insurance
8. Define your Packaging Design Business Brand
9. Create your Packaging Design Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your packaging design business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out othersmall business ideas．

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit ourHow to Name a Businessguide or get help brainstorming a name with ourPackaging Design Business Name Generator

If you operate asole proprietorship, you might want to operate under a business name other than your own name. Visit ourDBAguide to learn more.

Whenregistering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability．

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a packaging design business?

包装设计企业通常成本之间$2,000 and $10,000 to start. Because they can technically be operated from home, their operation requirements are pretty small. Startup expenses include rent, which can be between $2,000 and $4,000 for a small workshop, networking, professional connections, design training, and start-up materials.

What are the ongoing expenses for a packaging design business?

Ongoing expenses include designer payments. Over time, you could pay a designer between $20 and $50 per hour to create great packaging designs. Prototype materials, too, are likely expenses. If you end up mass producing packages, expect to pay between 50 cents and $3 per package—depending on the size. You will, of course, sell the packages for more to make a profit.

Who is the target market?

A package design business’ customers are different depending on the industry. For this reason, it’s important to focus on your business’s market segment. Getting into the market, for most package design businesses, is difficult. Luxury markets may require minimalistic designs, whereas accessible markets—mostly run by Neiman Marcus and Wal-Mart—are far more flexible. High-end department stores, meanwhile, can have a variety of markets. The ideal consumer-base is a stable one, and it exists in a stable market.

How does a packaging design business make money?

Primarily, a packaging design business profits from positioning its package designs effectively. If it can represent a product truly—and in an attractive way—it can expect long-term partnerships with a variety of brands. While a packaging design business can make money by protecting products alone, its long-term success will rely on a firm understanding ofappeal．

How much can you charge customers?

You can charge businesses between $80 and $100 for creative package designs. This price can vary greatly, however, depending on the materials used to create the products. At the end of the day, an average package can sell for about $1.25, per product, to a business. Find a business which sells in bulk, and produce a large line of packages to send them.

How much profit can a packaging design business make?

Package design businesses are incredibly profitable, assuming they’re successful. A solid packaging design business can make $500,000 per year, if it’s a trusted provider in a massive business network. That said, individual packaging design businesses make about $70,000 per year while serving a local network.

How can you make your business more profitable?

Brainstorm constantly. Convey your target market’s directionbeforeit gets there. Successful packaging design businesses aren’t only trendy- they’re also predictive. If your packaging design business strikes gold, creatively, other brands will flock to your services.

STEP 2: Form a legal entity

The most commonbusiness structuretypes are thesole proprietorship,partnership,118bet金博宝 , andcorporation．

Establishing a legal business entity such as anLLCorcorporationprotects you from being held personally liable if your packaging design business is sued.

You can金宝搏188是什么公司yourself and pay only the minimal stateLLC costsor hire one of the118金宝app for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more aboutstate sales taxand franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to aspiercing your corporate veil．

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting abusiness credit cardhelps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with ourLLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

In most states, it is necessary to obtain a packaging design license. Certain state permits and licenses may be needed to operate a packaging design business. Learn more about licensing requirements in your state by visitingSBA’s reference to state licenses and permits．

For more information about local licenses and permits:

• Check with your town, city or county clerk’s office
• Get assistance from one of the local associations listed in我们小Business Associations directory of local business resources．

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully.Business Insuranceprotects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face,begin withGeneral Liability Insurance．This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need isWorkers’ Compensation Insurance．If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

The package design business is great for creative individuals. Products need both physical protection and visual representation, and a package can do both. A successful package design business owner will have a good perspective for branding, packaging, and forward-thinking designs. Typically, package design business owners are imaginative and hard-working. They also have a good eye for environmentally friendly designs. Package design business owners need to pay attention to regional packaging federations and they must similarly pay attention to the many packaging associations and institutes at play.

What happens during a typical day at a packaging design business?

A package design business owner doesn’t only package products. They drive workers through a variety of structural design lessons, maximizing their potential while ensuring they uphold a package’s aesthetic value. A package design business owner must constantly check designs for clarity and simplicity. They must also reflect a product’s features and safety needs. Authenticity is a must, and a keen eye for modern marketing trends certainly helps. Administrative tasks are completed, too, ranging across management, finance, and marketing.

What are some skills and experiences that will help you build a successful packaging design business?

Innovation and design experience are must-have qualities. As a start-up, you’ll need to get in touch with local providers. Recognize the prototyping stage for what it is. Additionally, make sure any packages represent the product’s needs effectively. By understanding a product’s price point, you can create memorable packages which serve multiple purposes.

What is the growth potential for a packaging design business?

If a packaging design business has a slew of prototypes, markets effectively, strikes solid partnerships, and creates memorable packages, it can grow wildly. The world’s most successful packaging design businesses are international, using massive marketing campaigns, sales kits, and partnership networks to grow exponentially.