How to Start a Packaging Design Business

Part 1 - How to start a Packaging Design business - Background

A packaging design business enhances packages with visual graphics while also designing existing product packages. A package design business, ultimately, protects products for sale, transportation, distribution, storage, and use. A package’s design includes both its structural and aesthetic design. Ideally, a package design will be enhanced by graphics. In most cases, a package’s design is product-centric. From all angles, a package exists to serve the product.

Our guide is in 3 parts:

• Part 1 - How to start a Packaging Design business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

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

Packaging design businesses typically cost between $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 of appeal.

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 direction before it 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.

Day-to-Day and Growth

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.

What are some insider tips for jump starting a packaging design business?

The road to package design business success is a long one. Run through your design process endlessly, and revise constantly. If your clients aren’t interested in your designs, find out why. To compete in the packaging design business, you’ll need to have a good handle on customer mindsets. You’ll also need to develop compelling packages which represent products effectively.

How and when to build a team

Once you succeed in the local realm, you should build your team with marketing and design experts. Additionally, invest in researchers. Create a creative board, and maximize your business’s outreach.

Part 2 - Is a Packaging Design business the right fit for you?

Part 3 - Action plan to launch your Packaging Design business in 90 days