Advice on starting my own small business

[RBSN]

Hello all,


I'm a new member to the forum so firstly I would like to say hello to all other forum users and to everyone involoved in the (fascinating) world of print! So I guess I should say a little about myself?

My name is Lee, i'm 27 years old. I currently work for a branded division of a seemingly well known company called Chesapeake (or at least they are known in the United Kingdom) I served a 3-year advanced apprenticeship in 'Carton Manufactoring' My area of skill is running, making ready and general operator duties on both large and small format BOBST die,cut and crease machines. (102CER, 104, 142, CE) As a young operator I am applying myself outside of work to learn LEAN Six Sigma and other knowledgeable, helpful qualifications.

So that's a little bit about myself.

I was wondering if it would be possible to ask some advice on starting a small[i/] business. Alot of people seem to tell me the same thing; it wont work, no money is in print anymore, you're too young and so on...is this good advice?

I am wanting to build a small business, possibly using Crosland cut and crease hand-platen (-s eventually) Could someone explain the energy prices to run a platen, what other costs I can expect and how much money I need behind me to make this work?

All advice is welcome and thank you for your time.

Regards
Lee

 

[gordo]

I was wondering if it would be possible to ask some advice on starting a small[i/] business. Alot of people seem to tell me the same thing; it wont work, no money is in print anymore, you're too young and so on...is this good advice?

No, not good advice.

Way before you think about equipment you need to think about the market.
For example:
Is there are market, or market demand, for the services you want to provide?
Are the services already being provided. If not why not. If so, how will you compete against the existing service providers?
If you start the business, how will you attract customers?
If you start the business, how will other potential competitors react?
How will your former employer react? If you go after their customers you may get sued.
What are the capital costs to set up? Hardware, software, facilities, employees, legal fees, taxes, utilities, etc.
etc. etc.

Once you've done your research you need to write up a business plan that outlines how you are going to achieve your financial and business goals for the company. etc. etc.

You'll likely need cash to start up with in the form of a bank loan to cover expenses until your customers start paying you. They will expect to see a thorough business plan before they give you any money.

That should give you some idea as to whether you have a chance at the business or not.

best, gordo

 

[RBSN]

Thank you for your informative reply, Gordo

I'll try answer your question headings as best knowledgeable as I can (forgive me for my inexperiance on the subject, i'm still in very early stages - hence my need for your advice)

- The market I would be looking at would be in the supermarket branded, Asda and Tesco etc but starting out at the lower-end of the scale, Netto, Lydle supermarkets like that. As I have quite alot of experiance with branded types of work such as Twinings (my employer produces a big percentage for the north of the United Kingdom) do you think it would be possible, when set up to off-load work to me to help take some pressure off my employer?

Apologies if this is a stupid question.

Attracting customers would be personal with examples of work that I am confident in producing (as a personal standard) and the types of work that my machine could produce in a similer fasion to what I produce with my employer - if that makes sence? Also internet based as I think it opens up alot of doors with my own website and hosting abilities.

My business would be small so i'm not sure if I would make a big enough impact for other business's to react in a negative way?

The capital costs is something I do need alot of advice with, such as where to buy good, second-hand machines etc

again, thank you
Regards
Lee

 

[gordo]

Only you know your market. So there's a limit with any help one can provide.

If you intend to go after Netto, Lydle supermarkets like that (never say lower-end of the scale) then how receptive are they to changing to a new supplier (one assumes they already have a supplier). You need to speak with whoever is responsible for buying these services to gauge their openess to a new supplier or discover any pain points they have with their current suppliers.

If your current employer is over-burdened then why isn't he expanding his capacity in order to meet the demand? Do you think he would rather out-source to you than add capacity? Is there enough profit margin for you to provide a service that he would resell and add his profit? I doubt he would just give you some business and have you bill his customer directly. That would be like subsidizing a competitor.

People are not going to give you work just because you have the ability to do it. You need to have a business case as to why they should consider a different supplier. Cheaper but the same quality? Faster but the same quality? etc.

Do your prospective customers look for this kind of service on the internet? I very much doubt it.

How many prospects are there for you to visit personally? 5? 10? 20? OK that's one or two weeks of customer visits. Now what do you do?

It doesn't matter how small your business is for other companies to react in a negative way. All that matters is whether there is an opportunity to expand their current offerings or capacity to make sure that potential profits are not lost to you. If they believe there is a business case then they will probably react. If they don't then you have to ask yourself why are you seeing an opportunity that they aren't?

There are many places where you can buy good used equipment (on the internet, via auctions, etc.) Capital costs involve much more than that.

You might want to look at this web site: Social | Print Experiment – Building a digital print company from scratch
I believe they failed as a business (although they bought the right equipment) because there was no way they could dig themselves out of the financial hole they dug setting up their small print business. They provide some of the business info you need. Well worth a visit and a study.

best, gordo

 

[TheProcessIStheproduct]

Sure, make sure you have a solid market, but know that most of the companies that are thriving now started off young and dumb. People will always say it is a bad idea and will never work, but if you have a good product and work hard and sell sell sell, then you will do fine. Print is a dying industry, but it take longer then a generation to dye so you still have plenty of time to make money, especially as people turn tail and exit...

 

[ajr]

If you deal direct with these supermarkets you will need more than one machine and a lot of money behind you, they wont pay much. You are better off loking to do a trade service for other printers, then you will need a good credit control dept as they wont pay you.

Sorry

A

 

[RBSN]

Thank you for your comments guys, appreciated!

Lee

 

[ondemandbindery]

Printing does suck today. Compared to even 10 years ago. I am not so sure the "good" money on a ROI will ever come back anywhere near what it once was.

But with that being said you are young enough to take whoopin' you got coming to figure it all out. My advice is ramp up sales and broker to other shops until you get a handle on things. Prove you have a solid and go for it. And put it all on paper and make sure you can make it work.

But honestly if I had to do it all over again I would without question try to leverage myself to allocate a business that already is an entity. Printing will always be around but the game has changed and has been changing all along I suspect.

Good luck

JW

 

[garry]

In the world of economics a firm only exists if MR = MC, and if your deciding to start your own firm (in this case a printing business) have you asked yourself as well as answered the 3 most basic questions in economics?

1 - What to produce ?

2 - How to produce ?

3 - For whom to produce?

It sounds as though you have not, and being as that this is a forum of open-discussion, it would be wise to study on your own to find your answers, as if you ask here... well... were all printers, and were all your competition (broadly speaking).

I'm not saying this is a bad place to ask questions, but don't limit yourself to these forums.

Going into business can be a difficult thing; however, the more you know, the better you are prepared!

Good Luck, and I wish the best for you and your firm!

 

[printchesco]

It's almost never a good idea to listen to such pessimistic advice. What you need is a fair and realistic comparison of your options and not a complete showdown of your idea. Do a bit more research and find out for yourself whether your idea has merit or not.

 

[ondemandbindery]

It all comes down to making money. The first step in my opinion is go to the SBA and apply for a loan. Even if you do not qualify the business plan will tell you if your thoughts are valid. A calculator has no emotions and no gray areas.

 

[Harshada]

There are many big ideas to start your own business:
1) Firstly write your own business plan:Use these tools and resources to create a business plan
2)Choose a business location:et advice on how to select a customer-friendly location and comply with zoning laws.
3)Finance your business:Find government backed loans, venture capital and research grants to help you get started.
4)Registers your business name:Register your business name with your state government.
5)Get a Tax Identification Number:Learn which tax identification number you'll need to obtain from the IRS and your state revenue agency.

 

[dabob]

just a humorous note . . . I have been traveling for the last week and I noticed a sign that said . . .

"the only thing more overrated than natural childbirth is being self employed"

that said - good luck with your endeavor.