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Written by: Esther Strauss
Esther is a business strategist with over 20 years of experience as an entrepreneur, executive, educator, and management advisor.
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 September 14, 2021
Updated on March 13, 2024
Investment range
$9,000 - $27,000
Revenue potential
$90,000 - $360,000 p.a.
Time to build
0-3 months
Profit potential
$50,000 - $110,000 p.a.
Industry trend
Stable
Commitment
Flexible
Do you enjoy graphic design or have a flair for creating eye-catching works of art? Then starting a screen printing business could be a great way for you to grab a small slice of the nearly $8 billion US screen printing market.
Starting a screen-printing business is straightforward and requires little if any training. And thanks to low start-up costs, you could start your very own business without breaking the bank.
But, that doesn’t mean it’s easy to launch and run a successful printing business! As with any business, you’ll need to do some careful planning before you can start making money. Thankfully, you’ve come to the right place, as this step-by-step guide details all you need to do to put yourself on the path to screen printing success.
Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.
Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services.
When you plan to start a business, you must choose one that fits your situation and preferences. That’s why, in this section, we’ll delve into everything you need to know to make that decision.
Before you venture into the world of screen printing, you should be aware of the pros and cons of the industry.
Following a pandemic-driven downturn, the market looks set for significant expansion, with the global screen printing industry expected to see strong 16% growth through 2027.
Trends shaping the screen printing industry include:
Challenges in screen printing industry include;
Startup costs range from $9,000 to $27,000 or more. By far, the highest startup cost will be your screen printing equipment, which includes a screen printing press, a screen print dryer and more. If you need some training, there are countless screen printing courses and workshops online for as little as $40.
If you’re looking to start with minimal investment, you’ll want to operate out of your home, at least in your first months. It’s also a good idea to look for used screen printing equipment online — this Facebook group with more than 6,000 members is a good place to start.
On the flip side, the maximum budget will get you something along the lines of Lawson Screen Printing’s Advanced Start-Up Package, which will set you back nearly $16,000. You’ll also likely need commercial space to make good use of all your equipment.
| Start-up Costs | Min | Max | Average |
|---|---|---|---|
| Licenses and permits | $100.00 | $300 | $200 |
| Insurance | $100.00 | $300 | $200 |
| Branding, Marketing and Advertising | $1,000.00 | $5,000 | $3,000 |
| Website | $200.00 | $1,000 | $600 |
| Hiring | $0.00 | $200 | $100 |
| Screen Printing Equipment | $7,000.00 | $16,000 | $11,500 |
| Shop Décor and Furnishing | $0.00 | $3,000 | $1,500 |
| Miscellaneous | $600 | $1,200 | $900 |
| Total | $9,000 | $27,000 | $18,000 |
Revenue will depend on the products you offer and the number of colors you expect to use. For example, printing a T-shirt with three colors will generate different revenue numbers than printing a mug with a single color.
Let’s use an order for 50 custom, three-colored T-shirts as an example. Blank T-shirts are $2 each, while your materials average out to $1 per T-shirt. That means your total cost of $150 breaks down to $3 for each T-shirt, which you then sell for $7 each, making $350. This means you’ll have a profit margin of about 55% and make $200 in profit from this order, which should take no longer than one hour to fulfill.
In your first year or two, you might average five of these orders per week, bringing in more than $90,000 in annual revenue and around $50,000 in annual profit, assuming a 55% margin. After a few years you might generate 20 sales per week, but with higher overhead, due to staff and facilities, your margin will fall to 30% and you might only make $100 in profit from each order. Still, you’d make more than $360,000 in annual revenue. At a 30% margin, you’d make a tidy profit of almost $110,000.
There aren’t many barriers to entry in the screen printing business, but one to be aware of is the intense competition from local, national, and even international players.
Another barrier to entry is that clients face no costs to switch to another service, which means you have got to be excellent at screen printing to keep your customers.
Now that you know what’s involved in starting a screen printing business, it’s a good idea to hone your concept in preparation to enter a competitive market.
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.
Explain how the reader should identify an opportunity — examine the market for gaps and trends, consider your special skills and capabilities.
Research screen printing businesses in your area to examine their products/services, price points, customer reviews, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a screen printer that focuses on references to 1990s culture and style.
You might consider targeting a niche market by specializing in a certain aspect of your industry, like coffee mugs.
This could jumpstart your word-of-mouth marketing and attract clients right away.
You could offer a standard set of screen printed T-shirts and mugs, and also offer custom printing for a wide variety of products, including backpacks, binders, ceramics, posters, wood, snowboards, medical devices and more. The possibilities are almost endless when it comes to screen printing. Do your research and decide what works best for you and your business.
Assuming you start from home as a solopreneur, your main costs will be materials and ink, and you should be able to achieve a profit margin of 50-55%.
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.
Your target market will hinge on the products you choose. If you focus on T-shirts for instance, you are likely to have a younger demographic, and could find them on platforms like TikTok and Instagram. If your products are mostly mugs, binders and signs, you would do better to target businesses on LinkedIn.
In the early stages, you’ll want to run your screen printing business from home to keep costs low. But as your business grows, you’ll likely need to hire workers and rent out a production facility. Find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
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. 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.
Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:
If you’ve never created a business plan before, it can be an intimidating task. You might consider finding and 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 screen 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 screen printing business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that most 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 be on hand to 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:
For a screen printing business, your best bet is probably going the personal route or reaching out to friends and family. Although, if you have a great concept, you could give crowdfunding a shot as well.
Starting a screen 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 screen 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 may want to use graphic design tools such as Affinity Designer, Adobe Illustrator, and CorelDRAW for photo editing, typography, and more.
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.
Launching a successful screen printing business requires more than just a passion for the craft. To stand out in a competitive market, consider these effective marketing strategies to attract and retain customers.
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 screen printing business 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 screen printing business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in screen 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 a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a screen 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.
Now that you’ve put a strong foundation in place, it’s time to get out there and grab your slice of the $8 billion US screen printing industry!
To ensure your business starts off on the right foot, here are some key tips to keep in mind:
It can be if you generate enough demand for your services. As a solopreneur with minimal expenses and 20 hours worth of printing projects per week, you’d earn just shy of $150k in net profit per year, on average.
If you operate in a similar capacity with employees, your profit can be much higher.
While the screen printing industry declined almost 20% during the economic crisis spurred by the COVID-19 surge in the U.S., it has already shown early signs of recovery, achieving modest growth in 2021. The screen printing industry is certainly not dead and will flourish again as normalcy returns to the U.S.
The cost of screen printing equipment starts from as low as $1,500 for hobbyists, $7,000 for beginners, and $42,850 for advanced-level printers. The cost of an automatic screen printing machine ranges from $30,000 to $80,000.
To make your screen printing business successful, you should first focus on creating a valuable offering for your customers. Next, you’ll need to focus on key areas, including business planning, training, team building, targeting a niche, and marketing strategy.
To start screen printing at home, you will need the following basic equipment and supplies:
Starting screen printing can have a learning curve, but it is possible to start at home with dedication and practice. Understanding the basic techniques, such as preparing screens, mixing inks, and operating the press, is essential. There are various online resources, tutorials, and classes available to help you learn the techniques and best practices of screen printing.
The best material for screen printing depends on the type of printing you want to do. Common materials used for screen printing include fabric (such as cotton, polyester, or blends) for creating custom apparel, paper for printing posters or artwork, and various substrates like wood, metal, or plastic for creating custom prints or signage.
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