How to Start a Profitable Printing Company
Land Trustworthy Clients and Meet Their Printing Demands
May 31, 2009
Across the industry printing jobs are multi-faceted. Printers provide services to colleges, universities, publishing houses and major corporations. They create marketing brochures, pamphlets and business cards. Today a challenge facing the industry is computerization. However, with the right tools, electronic design experience and a positive mindset, entrepreneurs can start and operate a profitable printing company.
Get an Employee Identification Number (EIN) for the Printing Company
Fill out an EIN through the Internal Revenue Service’s official website. Entrepreneurs can also apply for an EIN over the telephone by calling the Business & Specialty Tax Line at 800-829-4933. If the new printing company is a privately held sole proprietorship, consider using the owner’s social security number as the EIN.
Complete State Filings for the Printing Company
Contact the applicable state Department of Revenue or Taxation. Register to collect and file sales and use tax. Many states allow users to file forms and pay taxes directly through their websites.
Identify a Printing Specialty
Decide on the types of products that the printing company will print. Choose between products such as magazines, newspapers, company brochures and newsletters, direct mail correspondence and inserts, postcards or business fliers. Provide a wide variety of binding and layout design services including perfect bound material which is often used when printing books, single, two and three-fold brochures, embossing and finishing for business cards, memo pads, invoices and order forms.
Create a Business Plan for the Printing Company
Allocate five to seven days to thoroughly analyze the business’ goals. Build a detailed business plan for the printing company. Lenders typically require firms to submit a concise business plan before they lend out capital. Include the types of printing services and products that will be offered to customers in the business plan. For example, printers could take orders for customized t-shirts, jerseys, jackets and sports caps that have professional or local sporting team logos printed on them.
Next, provide the days and hours that the printing company will be open for business. Study other printers, locally, nationally and on the Internet. Understand the products, services including shipping and handling, prices, clientele demographics and physical locations for these other printers.
Take this information and write out a clear marketing plan for the printing company. Include the steps to be taken to alert the media, local businesses and the public about the company. For example, a printer could write and distribute monthly press releases to the Associated Press alerting them to charity events and educational activities the company host.
Raise Capital and Get Insurance for the Printing Company
Ask family and friends to contribute to the financial start-up of the printing company. Offer them a portion of the company’s first year profits or a percentage of ownership in the firm. Consider accessing personal savings accounts to pay the seed money to start the business.
Other ways to raise capital include applying for a small business loan through the bank or through the Small Business Administration. Printers who have excellent credit scores and who are confident that they can make all payment installments on time might want to think about getting an unsecured start-up business loan. Keep in mind that the cost of printing equipment can range from $100 for a heavy duty rotary trimmer to over $5,000 for high production screen printers. Factor these costs into the loan application.
After the capital is identified, speak with local insurance providers. Purchase property, casualty and liability insurance. To reduce overhead costs, consider starting the printing company from home or out of the garage. Obtain enough insurance to cover all business equipment.
Purchase Printers and Build Inventory
Purchase equipment such as printer tables, print wells for book binding, cutting knives, corner paper cutters, pasting, stapling supplies and textile screen printing equipment like a CP-41 Classic Printer or a rotary screen printing machine to allow for the printing of logos on items such as t-shirts, caps and jackets. Consider contacting companies such as American Printing Equipment, T-Shirt Screen Printer’s Equipment and Systematic Automation to purchase equipment and supplies at a discount.
Market and Promote the Printing Company
Consider placing ads in magazines such as Poets & Writers, Entrepreneur and Small Business Opportunities Magazine. Placing an ad in these magazines might reel in new customers such as writers and publishers who are seeking book printers. Create a professional website for the printing company. Post the website’s URL on printing, entrepreneur, book publishing and writing message boards and discussion forums. Also include website URL for one’s printing company on all correspondence and emails.
Sources Cited:
Internal Revenue Service United States Department of the Treasury.
December 1, 2008. Businesses. 31 May 2009.
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