Are you thinking about starting a screen printing company? Screen printing is one of the most sought after small business ideas. It has an inviting do-it-yourself image that appeals to individuals willing to try their hand at an activity that nearly everybody will encounter at some point in their life. Requiring a relatively small capital investment, starting a screen printing company can be achieved in a short period of time. When thinking about whether or not this is the business for you, please take these foundational building blocks into consideration.
Obtain a business license
A business license can be an asset as a screen print shop owner. A key to any business is being able to make a profit. In order to meet this objective expenses have to be less than revenues. By obtaining a business license you will become eligible to open accounts with distributors and suppliers who can offer wholesale-like prices on core products such as t-shirts. While you don’t have to buy inventory at wholesale prices to turn a profit, it will increase the ability for you to maximize your margins and scale your business.
Determine a Price Structure
Screen Printing is a competitive business. Because barriers to entry are relatively low, competition is likely to be plentiful. It is important to decide how affordable you plan to make your services, keeping in mind that expenses are constant, and larger shops are likely to have a scalability advantage that enables them to offer bargain-basement prices. While the attractive thing to do may be attempting to offer the best deals in town, evaluate the impacts this may have on your business and determine its sustainability.
Market Position
Who does your company cater to? Is your goal to attract college Students or the townspeople? Do you offer high quality products that may cost a bit more, or affordable options that may appeal to a broader base? In your mind you may be saying “all of the above”, but how does that translate to staking out a market position? How will you be identified from competitors? When a prospective customer asks what makes you different, what will your answer be? This is crucial.
These are a few building blocks of a screen printing business that you will want to work on when determining if this is the business for you. These are straight-forward yet important factors to consider as you plan your foray into the industry. Hopefully I have given you food for thought.
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