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Written by: Howard Tillerman
Howard Tillerman is the Chief Marketing Officer for Step By Step Business and an award-winning marketing professional.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on August 11, 2021
Investment range
$8,100 - $32,200
Revenue potential
$100,000 - $200,000 p.a.
Time to build
3-6 months
Profit potential
$50,000 - $100,000 p.a.
Industry trend
Growing
Commitment
Full-time
Consider these crucial factors when launching your printing business:
The first step is market analysis, to understand what’s happening in the industry and the prospects of building a successful business.
Before you open a print shop, it’s best to weigh the pros and cons to help you determine if the risk is worth it.
The printing industry is seeing a rebirth. For starters, research firm Mordor Intelligence expects the global printing market to see steady annual growth of nearly 2.5% for the next five years.((https://www.mordorintelligence.com/industry-reports/commercial-printing-market))
That’s nothing compared to the explosive forecast for 3D printing, which is becoming more common in many sectors, including healthcare and manufacturing.
Trends shaping the printing industry include:
Challenges in the printing industry include:
The cost of starting a printing business depends on location, initial equipment, and upfront supplies.
You should expect to spend at least $40,000 for a barebones operation and up to $400,000 on the higher end. However, most in the printing business spend about $200,000 for a well-rounded print shop.
Signing on with a franchise such as the UPS Store boosts income. But if you’re not getting a franchise, your startup investment as an independent printing business will cover the following:
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| Printing shop | $4,000 - $12,000 | $8,000 |
| Equipment | $1,500 - $12,000 | $6,750 |
| Printing supplies | $1,000 - $5,000 | $3,000 |
| Software per year | $500 - $1,000 | $750 |
| Website per year | $100 - $200 | $150 |
| Marketing | $500 - $1,000 | $750 |
| Insurance and licensing | $500 - $1,000 | $750 |
| Total | $8,100 - $32,200 | $20,150 |
Depending on industry segment and size of operation, a printing business tends to generate $100,000 to $200,000 in annual revenue, at a 50% profit margin. After costs, such as design software subscriptions, equipment maintenance, supplies, salaries, rent, and insurance, you’ll have a pre-tax profit of $50,000 to $100,000 per year.
Of course, if you add another printer, move to a larger space, or open a second and third location, you can make significantly more.
The biggest barrier to entry in the printing industry is the high level of competition. Printing is a relatively popular market, attracting a lot of entrepreneurs. Your ability to offer competitive pricing and custom print options can help you gain a share of the market.
The high cost of equipment is another barrier. Printing equipment is expensive, and unless you have adequate capital, you’ll have a problem running a well-rounded service or outperforming your competitors.
The second step to starting a printing business is to get more clarity about what you need to do to achieve success. Here’s what you need to do during this phase:
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Your competition will be other businesses offering the same services in your area. You will also be competing against larger companies with a nationwide presence, such as American Printing.
One of the easiest ways to establish a strong presence quickly in the printing industry is to leverage franchising. Partnering with printing franchises such as The UPS Store can provide your business a steady stream of business cards, brochures, and other marketing materials to boost income.
These materials are an integral part of fostering relationships during seminars, trade shows, and other promotional events.
Running a print shop typically involves providing one or more printing services, including screen, offset, 3D printed products, or digital printing. You could also offer a combination of services, such as screen and digital. Most printing businesses offer various specialized services such as T-shirt printing, signage, brochures, magazines, business cards, catalogs, and more.
Knowing which commercial printing service to start will help you determine your target customers, competition, and how to stand out.
With a niche strategy, you can leverage your expertise in a particular area to stand out from your competition.
Think of it as a way to help you focus on printing services that your competitors aren’t offering in your area.
Decide whether you want to provide digital, screen, or offset printing services, or a combination of these services. That way, you won’t have a problem identifying your ideal customers.
While most print shops run from Monday through to Friday, operating hours depend on your current orders, which means you might work on weekends and late hours if you have a deadline to meet.
Your pricing structure can make or break your printing business. Here are a few pricing strategies you can use:
This model involves determining the price by forecasting the cost of printing for a specific project then adding the desired profit markup on top.
This strategy involves setting low prices to gain market share against competitors. The model works well if you’re offering multiple printing services.
For instance, you may lower prices for 3D printing to attract new customers knowing that you’ll later sell these clients more profitable services such as long-run offset printing. Research industry rates to help you determine the best pricing model for your business.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
You’ve chosen your niche. The next thing you want to do is pinpoint your target customers. Targeting specific groups of potential clients can help reduce your marketing costs and maximize profits.
For instance, if you run a 3D printing business, your target customers would be display companies, ad agencies, marketing firms, and manufacturers. If you’re operating a screen printing business, your customers would include college students and T-shirt design firms.
When you know the printing customers to target, you can easily reach them, not to mention that you’ll be in a better position to provide quality services.
While you can run your printing service from home, you’re better off with a storefront location. Ideally, you’ll want an area that’s visible and accessible.
Even if you don’t plan to attract many walk-in customers, a visible location can help spread the word about your business to local customers. You’ll also need a site that offers quick access to clients picking up their orders and people delivering supplies.
Also, as you evaluate a potential location for your print shop, consider zoning regulations to ensure that your chosen site allows for the legal operation of your business. Lastly, make sure that the cost of renting and running your selected location is within your budget.
You can find commercial space to rent in your area on Craigslist, Crexi, and Commercial Cafe. When choosing a commercial space, you may want to follow these rules of thumb:
Here are some ideas for brainstorming your business name:
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool below. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to printing.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your printing business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
Choose Your State
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best option, other than friends and family, for funding a printing business. You might also try crowdfunding if you have an innovative concept.
Starting a printing business requires obtaining a number of licenses and permits from local, state, and federal governments.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your printing business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You can use design software such as The Print Shop, Canva, and Printavo, to create professional print layouts, adding flair to your projects.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Here are some powerful marketing strategies for your future business:
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your printing meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your printing business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a print shop, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in printing for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in printing. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
If you’re starting out small from home, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a printing business would include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
In the near future, 3D printing and digital printing will likely come to dominate the market. Other trends to look out for include erasable printing technology, security printing, and cloud printing. A smart entrepreneur would get in now while the market is still taking shape.
You’re now ready to start printing and making money! Thought you might want to bookmark this page, just in case.
Yes, you can. However, you’ll need to partner with the right people and stores. Also, you must have a well-thought-out marketing plan and, of course, sell high-demand products. One of the critical determinants of how much money you can make with a print-on-demand business is the quality of your designs – so create high-quality designs to attract customers.
The amount of revenue you can generate with a t-shirt business depends on several factors, such as your customer base and location. You can make about $573 with an average order of 72 custom t-shirts which takes one hour to print. Wages and materials cost about $169, leaving you with a profit of $304.
Yes, it is. Even so, revenue may vary depending on your target market and location. Industry insiders say the prospects look good since 3D printing is still at its infant stage. The trick is to invest in the right equipment to produce work that customers can buy at a premium price.
Printing companies can acquire clients through networking, referrals, online presence, direct marketing, local partnerships, and participating in industry events.
Digital prints can be profitable due to cost efficiency, quick turnaround times, and the ability to offer customized prints, but profitability may vary.
To make a printing business successful, focus on high-quality products/services, excellent customer service, strong branding and marketing, staying updated with industry trends, building relationships, expanding service offerings, efficient operations, and continuous improvement.
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