Please give me advice for starting a printshop

[Gabloo]

Hello guys,
** * * *
** * * I have been browsing and researching for printshop businness and I came across this site. It seems like this is the best place for me to start learning. I am not sure, whether I am posting at the right place or not. This post is about mix education and business. Please forgive me if i did something wrong.
** * *Me and my friends are college students. We had worked for private printshop company before. We did design, business card, bootlets and other things that tipical printshop would do. It not super busy shop. We pretty much can run the whole shop alone. *We quit due to our school work load. But now we are thinking about starting printshop. We don't have a lot of extral money as most of you but we do know how to run a shop and had a lot of experience in that field.
** * *What do you guys think? You guys think, this is not the best time to start? Should we start from our garage and start online printshop first? I was thinking about that but I don't think I will get a lot of customers from that. If you are willing to give us advice, we are very happy to hear from you.*
** * *Also, I was told that there are a lot more printer carriers out there that we can choose from. Can you guys name a few company which will suite for our case? I know in the beginning it will be tough and we will not be able to run a lot of job. Also, someone told me that leasing a couple mechines will not only give us a deal but also worry free? I would like to know where would be the best place for us to get mechines and equiments? Is there like a convension I can visit? I will be needing printers, mechines cutter, binding mechines, large format printer, paper, and etc.
** * * How much will it cost to start a printshop. I have abot 5 -7 friends who will work with me.

Thank you guys

 

[NGA]

Welcome to the board, There is TONS of good people and information on here for the picking. This is a tough question you ask. I don't think there is any right or wrong answer out there. You're going to have to decide what type of print business you want to go after. Do you want to do stationary products, B.C.'s, letterhead, Envelopes, Note Cards ect. If thats the case a small duplicator or digital copier (would not possible be able to print envelopes than) may be right for you. a digital copier would also allow you to do short run brochures. I would say the digital be of think may be easier to get into, but thats not to say its going to be easy. you need to think about things like computer software, finishing equipment(Cutter, Folder, sticher) and SPACE!. The nice thing is they do make alot of table top versions of finishing equipment but remember you get what you pay for. You can buy a table top folder and wander why it won't fold consistently. Also you need to think about Working Capital. If you are going to start a small shop like it sounds like your talking about most likly all your customers would be walk in and COD. in most cases major printers are only getting paid in 30-45days if their lucky. So all the materials you bought for that job you won't get paid for, for 30-45 days. It really all depends on just want type of services you want to offer. If your going to be working or designing customer files, you're going to need to have every version of creative software out there ex. photoshot, quark, indesign ect. Best advice i can give you is PLAN PLAN and then PLAN some more. do you have a budget on what your going to put out to get your shop up and running. the good thing there is that, there are tons of printers closing up shops (not to detour you) so there is an excess of used equipment out there at bargin pricing. if you have any more specific questions just post it or PM me and i'd be happy to answer.

 

[Mark]

Please give me advice for starting a printshop-
Don't

 

[Ian Mackenzie]

The overhead and capital/labor intensiveness of a print business can crush you, your line of credit and - in the process - possibly wipe you out personally as you will be forced into signing personal guarantees in order to secure funding.

If you and your friends are convinced that you want to do this, then get a book of business first and be a broker. Establish a client base. Send your work to trade printers. Get a good looking balance sheet and P&L then go get your own stuff. At that point it will be a business decision that will increase your overall GP and allow you to grow. you will also know exactly what you need instead of guessing.

There is over-capacity in the market right now. Be careful. You will be competeing with VistaPrint and FedexOffice. What makes you think you can steal $1M+ of business from some other compnay and call it your own?

 

[overscan]

Could always try and carve out a niche somewhere. Mainstream print is just cut throat these days.

 

[gordo]

@ Gabloo

You might want to subscribe to this website: Social | Print Experiment – Building a digital print company from scratch it's a few guys that are publishing all the details of the startup of a digital printing company - including the financials.

After 3 months in business they are some $5,000 in the hole. They are not paying themselves any wages and there are other expenses, like utilities, accounting etc., they are not including so, they are actually down more than they say. But they are ever hopeful.

You can buy most of what you might need at print equipment auctions - unfortunately there are many of those.

You can watch one for what was one of the country's best printers, Graphic Center, Inc., that will start at 10:am PST today here: http://www.bidspotter.com/catauctions.php?cat=26238&name=Printing+Equipment

I think Ian's advice of starting as a broker first is very good advice. If you can't make sales as a broker, at least you won't have the costs of a print shop sitting idle to drag you down.

best, gordon p

 

[Gabloo]

I do really appreciate for quick reply guys. I have learned a lot from just these posts. Especially NGA, Ian and Gordo.

We are planning provide as much services as we can to customers but we are aware that we will need more money and equipments for doing so. What I am planning to do was (I may be wrong, please direct me to right direction if you think I m going to wrong patch). We are thinking about starting a digital printing business first with 2 B/W and 1 Color machines, cutter, binding and folding machine and some other small equipment. We are looking forward to make business card, envelopes and brochures but I believe they require special equipments to get a raise printed and card stock folding am I correct? If pricing are not much different I would like to go with those machine that can do those. I love the idea of starting out as a broker too.

Buying used machines should be the best way for us to do our business but what about printers and cutter? I had bad experience with printers even with B/W machine. Sometime some parts broken and the most issue is with coloring. What kind of options do I have? Is there other printer company out there which are cheaper then Xerox and canon? Can you please provide me with a few names that would fit our business? I am trying collect as much information as I could before I go out there and start my business.

Again, thank a lot of your guys time. I will be asking a lot of question since I don't want to make any wrong decision. If you would like to add any ideas or feedback we will love to hear those.

 

[che.c]

Wow that's a lot of plant to get all at once. I'd think you'd be better off buying one printer (say a dc242 - good entry level) and a creaser and guillotine. You can turn your hand to a lot of work with this.

As finances permit and you have the jobs to pay for them, start buying more equipment - at first send out booklets etc for finishing elsewhere.

 

[Craig]

I agree with Mark.... don't! Unless you love a high stress environment where everyone dumps their shit in your lap and expects you to fix it .... oh buy the way don't bother charging them for it, it may offend them!

 

[Ian Mackenzie]

Gabloo -

You ask advice.
It is given to you.
You are ignoring it.

why should more advice be given to you?
Just do it then!

Then PLEASE do the following:

1. Write a business plan
2. Put a focus on SELLING not technology
3. And....DO NOT sign personal guarantees.

If your business fails, it will not ruin your life. I dont know how much you know about printing but it sounds like you do not know much. You are going after the lowest margin, lowest end, crap commodity printing as possible.

Maybe it would be advisable to buy a franchise so at least you have corporate support instead of blogs and forums to help you.

Good luck. You will need it.

 

[JayDA]

I would agree wholeheartedly with the above post, pay attention to the advice that you are being given. Nothing wrong with enthusiasm, but it will only take you so far.

 

[jotterpinky]

I agree with Ian, Don't sweat getting the biggest and best equipment. You should start out as suggested with a single machine (Xerox DC242, 252, 260 are great entry machines), a folder (Duplo DF-755, or similar), an entry-level paper cutter (MBM 48502-EP, or good used Challenge / Polar digital backguage cutter) and probably some sort of creaser (Morgana makes a folder/creaser "Digifold", Duplo, or Graphic Wizard...I would highly recommend the Morgana but it's gonna cost you). All this could probably be had for 20-25K. Then sublet the rest to a wholesale print shop. You should definitely concentrate on sales...you should all be out selling your work or you will never succeed!

 

[WiseGuy]

I have to agree with the people who are recommending being a broker first. Running a print shop is not about the equipment. Right now, there is a surplus of equipment and print capacity in most markets. There are TONS of printers out there that would give you trade pricing. Even on-line companies that you can use as a broker and offer way more product than you can afford to buy equipment for.

Owning a print shop means your in sales, not in printing. You hire people for the production, so why not use someone else's people, building and lease payments to build your business? If you're afraid you're not going to make enough money selling print that you're buying somewhere else... you're not going to make it anyway. You'll fail just being deeper in debt.

I know a couple people who do this and they do quite well. But let the sales drive the equipment, not the equipment drive the sales.

Another piece of advice... go see 5 printers in your area. Talk to them about being a broker and try to figure out how well they are doing now. I think you'll find, they may be hurting for business.

 

[Gabloo]

Thank a lot guys.

 

[msaeger]

I think the online deal sounds like a good Idea. When I go service stuff at print shops I almost never see the customers in there and the places are not usually the kind of place you would want customers seeing anyway. Most of the jobs get emailed and delivered after being printed.

I also see a lot of stuff getting sent out or brokered like the other guys are saying. Like a lot of the finishing they print the pages themselves and send it out to get made into books or whatever.

 

[tmiller_iluvprinting]

I wanted to be a Formula 1 race car driver, or the 5th Beatle. My dad said no way, I'll get you a job in printing! I'll curse him till the day he dies! I'd dream bigger than wanting to own a print shop! Go to youtube and watch the "I Love Printing" guy before you make such a move.
Regards,
Todd

 

[almaink]

When I started in printing there were many print shops in the area. Today only a few are left. All the small Mom and Pop shops have closed. And the shops that remain are all struggling to survive. This is in the central NJ area. Undercut pricing, digital, online printing, and the economy are to blame. I have no idea what your area is like, but check it out before you jump in. Paper and print supply salesmen are a good source of info on this.

 

[ondemandbindery]

I would not concentrate on the equipment. If you can get the work, you will have so much surplus equipment out there that you can pick and choose. You claim that all of you are either still in college or still going to school. Take every stinkin' moment you can and network with anyone and everyone. Just like everything else in life it will come down to who you know to even get opportunities for work. Which ever direction you go plan on needing to find at least 1 strong account. You are going to need that. I have been in business on the finishing end for almost 3 years and it is a tough market but that doesn't mean you can't make a go of it. Definitely start by brokering to minimize the investment and get your feet wet.

Good luck,

 

[[email protected]]

Another thread of shattered hopes and dreams...

So some jack-off did a test of running a printing company for only 3 months and was $5,000 in the hole when it is normal for a business plan to show book losses during the first three years of the business being in existence. I wouldn't let this bother you.

The last printing company I had seen go out of business was one that we outsourced to. Interesting how they had to keep reprinting our jobs and other peoples jobs due to shitty quality. Apparently no one was watching the presses at this place. What percentage of shops closed because they didn't watch the quality?

Funny how so many people on here preach outsource outsource outsource as if opening a print shop was like marrying satan himself. While at the same time running their own print shops. The truth is many shops are growing greatly while others are failing...no one ever does a study of why they are failing. Of course any failed shop owner will never admit to anything that could be their fault. It's ALWAYS the economy or prices being driven down.

It's never we didn't maintain our equipment for excellent quality, or we didn't invest in strengthening our sales force, or renegotiate costs with suppliers, or charge for services like graphic design or finishing...nope not at all.

Bottom line is somebody is going to dedicate themselves full time to selling. If not people aren't going to magically walk in off of the street and give you enough business to make a living out of it.

 

[Raymond Ramirez]

I made a million in my Printing business.... I started with 6 million