Starting a New Digital Printing Business

[eddyg87]

Hello Everybody,
I am starting a new business with my brother. He and I have a little bit of experience with the Digital Printing Business. He is really good with photoshop and has a descent portfolio of work he has done in the past (business cards, banners, Flyers, T-shirts, Logos, Menus). We are talking about starting a new business. I dont know much about designing but I have more knowledge on the Sales and Accounting Area. (Wich I think will be helpful) What we have decided is to start as a Broker (advises will be greatley appreciated)
So, our plan is to start as a broker and at the same time come up with a website to start selling products online also as a broker and In the future, if as a broker we build a strong customer list then we will think of opening a small shop.
Please give us some advice.
Thanks!

 

[che.c]

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[maynardsayswhat]

Caution: Printing may have long-term side effects to the size of your debt.

It is very, very easy to get in way over your head in the printing industry. Best intentions will not pay your lease and a lease on a good digital press (or production copier) can easily out-scale your mortgages, car payments and retirement funds combined.

I would very strongly suggest that you complete an exhaustive business plan, complete with marketing and financial projections for at least 8 quarters; and your brother begin to very seriously begin to study design and production. Photoshop IS NOT the be-all end-all of design software. Photoshop is for photos, not layout. If you want to be professional, stop being bad and get educated on the proper tools and techniques. Get a full Adobe Design Suite (InDesign, Illustrator, Photoshop) and head down to your local junior or community college and take a design class, bonus points if they have a pre-production class.

Actually, you may want to take a year and get a part-time job at a copy shop or local printer. Hands-on education (with Real-Deal Client Demandsâ„¢) is priceless. Seriously! You can't call yourself a printer until you've argued what "kelly green" looks like.

I don't mean to be harsh, but the industry is littered with failed printing firms and terrible "graphic designers" who have no business in the business. I personally know several people who were financially ruined by their best intentions after trying to get into printing. It's not as easy as the professionals make it seem.

Get educated. Plan well. Work hard. Good luck.

 

[CathieH]

I also wish you good luck in this endeavor.

My husband works as a letterpress operator (specialty work such as foiling, embossing, numbering, scoring, etc.) and has seen so many print shops go out of business that he's not sure the company he works for (just a 2-man operation) is going to make it. If it weren't for the inhouse state and colleges that he has for clients, they'd probably already have closed their doors.

Prepress: Maynard is right - you MUST have the complete CS product, plus you have to have anything in your arsenal that your clients might use - Quark, Publisher, fonts, PC + Mac, etc. You also have to be sure you can flightcheck the files, so another software purchase required. Then there are the PDFs, probably your biggest workflow, so you'd need Acrobat Pro and perhaps PitStop Pro. I have to wish you luck finding someone or some school that actually teaches prepress - it's a tricky business and I've found that schools tend to pass right over it, even though it might be the most important part of printing. Hands-on may be the only way to learn this aspect of the printing business, so working in a printshop first was a good suggestions. You wouldn't believe some of the things that come up that leave you scratching your head.

Keep us posted and I hope you can make this happen. Just be sure, like was mentioned above, to do your homework before beginning this new adventure. There's more to it than meets the eye.

Cathie

 

[JohnC]

eddy,

I seriously hope you have done your homework on this because it's tough for a printer in a world of digital communication. I've been with McCarthy Print for 12 years now. This is a company that went from making pamphlets out of a small house to being one of the premiere downtown printers in Austin, TX. As the business owner, you will have no holidays, no high salary, and hardly any free time. It is constant work and it can be draining. I wish you the best of luck in your endeavor, but please make sure you do all the necessary groundwork because like others have said, the debt can pile up very quickly. We just got a press a few years ago that was over $1,000,000 just for a single press. You can check out the company at McCarthy Print | Austin Printers | Austin Printing Services | Austin Digital Printing .

 

[ondemandbindery]

Listen to these people. I commend anyone who takes a whack at it. A solid business plan is an absolute. And very deep pockets. The way people handle Print today is so different from the times of someone starting out in their garage with a little press. But I suspect it has been that way all along also. I use the Horse and Buggy whip theory. Back in the day you would have been able to have a strong company making such a product. And there are still companies out there doing it to this day. But did you really want to open such a business with Henry Ford right on your heels? Same theory.

Good luck,

John Weaver

 

[ajr]

Just be a broker dont buy anything, just sell sell sell. There are so many printers out there at the moment doing work so cheaply (I'm sure some dont even cover the cost of the paper) You can easily put a 50% mark up on most of your print work. Dont worry about buying expensive software just get your printer to do it all for you for nothing (they will) you just need a phone and a computer. After a year then think about buying presses etc but dont bother!

Hope this helps

A

 

[BigSi]

Gee, it sounds like things are tougher in the states than they are here. I have a very small print business, about 75% digital, 25% offset.
Turnover close to 300k a year. I manage to make about 35k gross on this turnover, not fantastic but just a livable wage. But hey my wife works full time. So as long as your expectations are not to high you might be allright. But keep debt down to an absolute minamum. I have paid cash for almost all my gear. ( I have owned this business for 25 years ) and most important just because you are now business owners don't live beyond your means. Just basic money management really. ta Simon ( from New Zealand )

 

[ondemandbindery]

Just be a broker dont buy anything, just sell sell sell. There are so many printers out there at the moment doing work so cheaply (I'm sure some dont even cover the cost of the paper) You can easily put a 50% mark up on most of your print work. Dont worry about buying expensive software just get your printer to do it all for you for nothing (they will) you just need a phone and a computer. After a year then think about buying presses etc but dont bother!

Hope this helps

A

I tell you this is the Gospel right here. Nothing like the Being Tucker-The man and his dream though and I applaud you for wanting to be the boss. If you are the salesman then you are the goods. Print is changing so quick these days a business plan/model will need to be modified in short order as you go along. It all comes down to who you know that needs Printing and will they let you have a shot at the work? If you can lock that up, broker the work and make the production a headache for someone else. I hope you listen to the people that are replying to your question. Even if you get an opportunity to bid on work take a hard look at the numbers as the profit margins are really tight in the market.

On the flip side if you can find a niche and outsmart your competitors you can do OK for yourself.

Good luck,

 

[printchesco]

In the end the decision is really up to you, but as long as you've don your research and taken the necessary precautions, it shouldn't be too problematic. However, you can't take the advice of the more senior members lightly.

 

[paulica]

In the end the decision is really up to you, but as long as you've don your research and taken the necessary precautions, it shouldn't be too problematic. However, you can't take the advice of the more senior members lightly.

There are oportunities still out there, as there is still a lot of printing being done. On the other side, starting from a garage with a small machine won't do it these days. On the one side if it's good quality, printing cost will make your prints expensive, if the costs are low it will probably be low productivity. There isn't a perfect machine quality price costs.

Than you have to have the volumes. For that you have to sell. In order to maintain cash flow you'll have to make sure your customers pay on time. On top of this, the machines will go crazy from time. It will be a mistery why they don't work. You will have unsatisfied customers, even if you're printing is perfect. As someone said, prepare for "the kelly green"issue . And your printing won't be perfect, at least not all the time.

Now, the last issue, buying a better bigger machine. As someone said, investments in this business are generally huge. With the money you spend on a press, you can open a restaurant and at least be around people in a better mood, customer orr employees. In a Restaurant, customers will at least appreciate your work also on a personal level. In a Print shop customers come focused on getting the best service for the least ammount of money. Best ideea to think of, why you never get tipped in a print shop. At the end of the day, you'll probably get depressed seeing how customers exhayst you into getting the most out of every buck.

IF I'd have studied more, maybe I could have been a brick salesman, and at least be around customers that are in a better mood..

 

[msaeger]

You probably need to say where you want to start this.

 

[Mark Flanders]

The "Sell Sell Sell" post is good advice. The market is good for brokering, but one additional comment: Be sure to develop good relationships with your printers and customers, and be sure to add value. Whether it's design, or project management, or pointing someone toward a good web developer, or essentially helping people get their idea into print and publishing. Don't work it as money for nothing brokering. Learn how to help others by learning how to do it yourselves. Furthermore, have a serious sit-down with your printers to make sure they come to think of you as a good customer, not just a know-nothing making a buck at their expense. Learn, and pass it on.

 

[narseman]

And the TRUTH shall set you free !

And the TRUTH shall set you free !

Just be a broker dont buy anything, just sell sell sell. There are so many printers out there at the moment doing work so cheaply (I'm sure some dont even cover the cost of the paper) You can easily put a 50% mark up on most of your print work. Dont worry about buying expensive software just get your printer to do it all for you for nothing (they will) you just need a phone and a computer. After a year then think about buying presses etc but dont bother!

Hope this helps

A

ajr is smart. Plenty of printers available. What you NEED is the print WORK. Get the print work, and hand it off to an actual print shop to do. After a while you'll develop relationships with a handful of shops you can trust. (At the right price) p.s Photoshop is limited. It does not do layout well, at all. If you're going to do design work for production, you'll need InDesign skills. Some Acrobat skills are handy too. I like the comment... Think about buying presses after a year. Just think about it. Don't actually spend any money! Get the work first! Get clients who trust you to come through, then you'll have a business.
Good luck

 

[neleson]

First i wish you good luck for your business. Its really a good idea to start digital printing business.Digital printing is becoming the fastest growing area of print. Plan is the important factor for running any successful business. So start your business with a proper planning and budget.


_________________
Offset Printing

 

[ketyjomes]

your idea of business is good . But , statistics are needed to support the plan. what is your budget ,priorities and everything. you can't be totally relied on your kid brother. some experienced is staff is also needed to be hire. with a good marketing person ,who can design the reputation in the digital printing market.

 

[smithwalker]

If you confused for the printing company, then don't worry i know the to find the best printing copmany in UK is dificult.So you should better choose a printing company that is a bit more expensive but that offer good quality instead of an extremely cheap printer..

Printing Company

 

[[email protected]]

If you're still here and not scared off by people yet I have some advice for you.

Print brokering is a good way to start with little to no debt and risk. I'd have them sign a non-compete and confidentiality agreement. Go with a trade only printer.

Somewhere I posted a long post on this very issue of print brokering vs. doing everything in house.