Starting my own business

[indeegirl42]

Hi!
I have been in digital printing for about ten years, and I have a degree in graphic design. I have decided it would be better for me if I started my own printing business, and I was looking for some opinions. I am trying to convince my husband this will be a good idea. He currently has 3 businesses, and all pretty successful, so he will be footing the bill.

Here are my stats:
I live in a town of about 8,000 people, in Iowa. There is a city of 150,000 about 30 miles to the south, and another city of about 120,000 30 miles to the west. We have one other digital print shop in town, that I have heard bad things about. I am wondering if a town of our size would support another printer. But I plan on marketing myself in the larger cities as well. To start, I will be the only one working there. Probably unpaid.

Financial questions:
I am looking at the KM6500. Does anyone know the average lease and cost per click payment? I know it will vary depending on the finisher/RIP option, Creo, please

I am looking at renting a space of 1300 sq ft for $1000 per month, not including utilities. Does this sound reasonable? Or would I be better off starting in my home and building some capital/clients first?

Other questions:
Does anyone have any good resources as far as hydraulic cutters? I was looking at the Challenger Titan 200. It seems like a nice one to start with. Also other finishing/binding equipment.

All suggestions, experience, advice is welcome! I am really excited about this, and feel it will be a great opportunity! I hope!

Thanks so much!

 

[ondemandbindery]

Having the Graphic Design experience is definitely helpful. I still go back to the same thing about trying to start this. Go try and build a customer base and broker the work out. Then there will be a question of understanding how the whole Printing Industry works from project inception to a signed delivery ticket from a happy customer. It will be a major learning curve but can certainly be accomplished. I personally would not invest any money in equipment until you know this is a fit for you.

Your husband's input may be useful especially if he has his hands in any type of manufacturing environments. Put it on paper and prove to yourself that this can be made to work. Something people never talk about is the accounting side of starting a business. This is very important and something like Quickbooks will give you importany feedback on your business if you take the time to put the data into it.

And lastly, that is quite a bit of money for that much square footage in a low population area. You can certainly be an asset to you community but I could envision you doing something like this without a storefront. Unless you can mix another idea into it that can generate walk in customers and create some positive cashflow. An example is I am now an authorized FEDEX hub when I move into my new location. It sounds like the bulk of your customer base will be out of town and they could care less where you are at as long as you service them properly.

Good luck,
John Weaver

 

[tsprinter]

OnDemandBindery,

How has the FedEx brand helped you? I have considered looking into the UPS or FedEx shipping center possibilities but cannot place a value on the retail revenue vs. the expense associated with higher rental rates for a shop with higher foot/car accessibility and the cost of a person to man the front counter. Have you seen significant increases in associated services (printing, bindery, etc.) from becoming a shipping center?

Thanks for your input!
TSPrinter

 

[ondemandbindery]

I do not start until Jan 2, 2011. UPS is pretty much out as they no longer accept applications. You can of course buy into the UPS store franchise. I really think this is a case by case situation honestly. For my own research and conclusions, I expect this will change the dynamics of my business and at the end of 2011 I expect to have limited interaction with Printers as a support Vendor. In fact, the tables will turn some as I will certainly offer Printing services and that business will come. I am in a location where I got real lucky and did not have to go into a retail storefront situation but I am also putting my own flavors on it. Fedex also wants the majority of your business to be focused on Packaging and Shipping and that stops a lot of Print shops but that doesn't mean you can't make it work. FEDEX from the ouside right now appears to be helpful in getting me up and running. As far as manning it, that is just part of the risk at this point. But I have an employee who is going to fit the bill and is excited about it since she enjoys dealing with the public (how crazy is that???). My rep at FEDEX put it to me like this after we discussed my ideas and marketing gameplan. If I fail at it, go look in the mirror because it will be nobody's fault but mine. Look at it this way- has Bill Gates figured out how to deliver a package through the Internet? It probably won't make you rich but it may offer other opportunities with your current resources.

HTH
John Weaver
On Demand PAckaging

 

[indeegirl42]

JOhn, Thank you for the response!
I actually have worked in digital printing for ten years, from start to finish. That is my main focus, although I do have the degree in graphic design, I hardly use it

I know I need a customer base, but I wouldn't be able to broker out work, as I don't trust other people to have the same standards that I have as far as time and quality. And I feel in the long run that may hurt me rather than help me, I don't want another printing companies short comings hurting my reputation. Customer service is HUGE with me.

I have a little bit of accounting knowledge, as I do the bookwork for my husbands field tiling business, and trucking business. But I agree, I would need someone to possibly do this for me as I intend to do the production work myself. I will also have a sales person. I am bringing my brother on, he is awesome when it comes to sales.

So basically, I need to do a little market research? I was thinking about going business to business to see what their thoughts were on a new print shop in town. What their volume would be etc.

I also found another space for rent for $650 per month. It is approx 1300 sq feet which I think would work nicely.

Shipping is also a great idea, as there isn't one in town! That could really help me out, as I will probably be doing alot of shipping myself.

Thanks again for the input!

 

[Hinterland]

It sounds like you're following the same path I did 15 years ago. A graphic design background can really set you apart from other businesses. I started out on a shoe-string after my former boss went belly-up. While I've had "help" off and on throughout the years, it's mostly been just me and my husband.

I can't advise on costs, other than the obvious - keep them low! My shop has an Ikon CPP 550, which has been a real workhorse for me. I am very fond of the finisher because it will fold jobs while I go off and do other things. My cutter is straight from the 1930s with no bells or whistles, but it does what we need it to, and it didn't cost much. The only other piece of equipment I'd suggest is a folder, although I use it less and less.

A storefront location can be lots of fun, but be aware that the customers you attract will not be the profitable ones. I offer copies, faxing and laminating to walk-ins because I hate turning anyone away, but truth be told, I didn't mind when they went to our local UPS store (which is now out of business.) I think the shipping would be a distraction along with the faxing.

I think going business to business is an excellent idea. Good luck!

 

[indeegirl42]

@Hinterland
Thanks for the reply! I know what you are talking about. Two of the print shops I worked in had walk ins, that you know spent 15 bux and acted like they were God. So I don't look forward to helping those types of people. I really do not want walk in customers. But I am afraid at first I may have to resort to this. Until my brother moves here to take over sales.

I actually worked with the Ikon CPP 550 as well, it is a good machine, but I had so many troubles with color consistency on it! It could have been the service on the machine too, and that was sub par.

If you have any other advice I would love some! I am looking at laminators, cutters and binding equipment too. How did you get your customer base? That is what I am wondering now. My husband and other have suggested being a broker first, but I don't trust others to reach my expectations of quality etc. I am huge with customer service. I guess you could say I want to open a customer service business that happens to print

I also am very experienced in variable data and mailings and hope to get into that as well!

 

[ondemandbindery]

JOhn, Thank you for the response!
I actually have worked in digital printing for ten years, from start to finish. That is my main focus, although I do have the degree in graphic design, I hardly use it

I know I need a customer base, but I wouldn't be able to broker out work, as I don't trust other people to have the same standards that I have as far as time and quality. And I feel in the long run that may hurt me rather than help me, I don't want another printing companies short comings hurting my reputation. Customer service is HUGE with me.

I have a little bit of accounting knowledge, as I do the bookwork for my husbands field tiling business, and trucking business. But I agree, I would need someone to possibly do this for me as I intend to do the production work myself. I will also have a sales person. I am bringing my brother on, he is awesome when it comes to sales.

So basically, I need to do a little market research? I was thinking about going business to business to see what their thoughts were on a new print shop in town. What their volume would be etc.

I also found another space for rent for $650 per month. It is approx 1300 sq feet which I think would work nicely.

Shipping is also a great idea, as there isn't one in town! That could really help me out, as I will probably be doing alot of shipping myself.

The $650.00 per month sounds more reasonable. I definitely think you could have some advantage because of the Graphic Design background. But I want to give you a little advice. And I see this all the time because of my position in the market place and this is in reference about quality. Don't over sell yourself on quality. On occasion I have run across Printers that think they have higher quality standards versus the competitor. I hate to tell them but the quality is now considered a comodity and most shops will produce the same end result unless they are stuck in the dinosaur age. I think my point is be careful with the quality selling point. Be consistent, timely, and absolutely use your graphic skills to help the client and you should do fine. Tighten up on the overhead and I can fully understand about farming work out. But as you move forward in business relationships will build and there will be a confort level with outsourcing. Oh, last thing. Definitely try to line yourself up someone for Diecutting. In fact, you can snag a Miehle dirt cheap and they do a great job. Lots of profit in diecutting. As for any Bindery equipment, dumb it down. I had a small shop in my garage and used a completely manual knife and I made some measuring blocks for certain lenght cuts. It did great and I have seen them on craigslist for next to nothing. Threw one away last year so those deals exist. Just food for thought.






A storefront location can be lots of fun, but be aware that the customers you attract will not be the profitable ones. I offer copies, faxing and laminating to walk-ins because I hate turning anyone away, but truth be told, I didn't mind when they went to our local UPS store (which is now out of business.) I think the shipping would be a distraction along with the faxing.

Yes, the shipping thing is pretty neutral for me right now. The main thing that excites me is having FEDEX in my arsenal. I feel confident that walk in traffic will create minimal profits and maximum headaches at times. It is how you can build from the shipping that is my agenda. Find a price so that when you laminate or fax you make a profit. I just look at it as added value since someone is already in the building and I have a fixed cost associated with that. My type of work is so erratic that this just helps the bottom line. If I was in a small town and could be the only dependable source for shipping I would jump all over it as long as storefront retail doesn't kill the overhead.

Good luck,
John Weaver

 

[Hinterland]

@Hinterland
How did you get your customer base? That is what I am wondering now. My husband and other have suggested being a broker first, but I don't trust others to reach my expectations of quality etc. I am huge with customer service. I guess you could say I want to open a customer service business that happens to print !

Sorry my reply took so long...I don't check in here often.

When I started, I worked part time doing graphics for a local business. On my days off I would send letters, cold call and follow up on leads. I sent a mailing out announcing myself which pulled in some contacts.

I did broker my printing in the beginning. When we moved to our first storefront we got our first copiers and over the years more and more work has been done in house.

I would differ with John in that I think quality will make you stand out. I redid work that our dear departed UPS store did so poorly their customers rejected it. So it will depend on who your competition is.

Janet

 

[ondemandbindery]

Sorry my reply took so long...I don't check in here often.

When I started, I worked part time doing graphics for a local business. On my days off I would send letters, cold call and follow up on leads. I sent a mailing out announcing myself which pulled in some contacts.

I did broker my printing in the beginning. When we moved to our first storefront we got our first copiers and over the years more and more work has been done in house.

I would differ with John in that I think quality will make you stand out. I redid work that our dear departed UPS store did so poorly their customers rejected it. So it will depend on who your competition is.

Janet

Let me rephrase the quality issue. You can't put quality into a job once it is completed. And you need to provide a quality level that Printer X down the street can produce. I think a better way to put it is good Printers all have the same arsenal for the most part with regards to technology. If you find a Printer who is sub par in quality, then absolutely they are their for the picking. Just be careful about over selling quality. But absolutely provide the best quality you can. I just happen to be in a part of the industry to give a general view about it.

John Weaver