Do you want to start a publishing business and want to know the cost? If YES, here is a cost breakdown to open a publishing company and the profit margin/ROI.

Talking about changes in the publishing industry, before now, there was nothing like e – books, but in recent time e-books and audio books have become so popular and even selling more than hard copies in some quarters. People find it easier and convenient to read ebooks or listen to audio books as against reading hardcopy books.

Companies such as Amazon, Sony and Google are leveraging on the changing tides in the publishing industry by helping authors and publishers to convert their hardcopy books to digital formats. Little wonder Amazon’s Kindle is regarded as one of the leading brands in the digital – publishing market.

As a matter of fact, there are well equipped and world – class e-libraries scattered all across the world due to the fact that the market for digital books is increasing.

Statistics has it that publishing companies such as Penguin Random House, Hachette, Simon & Schuster, HarperCollins and Macmillan are responsible for publishing about 60 percent of English-language books; little wonder they are referred to as the “Big Five” publishing brands. Statistics also has it that about 75 percent of single title books that are published do not break even.

The Estimated Cost Breakdown to Open a Publishing Company

In setting up a publication company, it means that you will establish a standard printing press with standard printing machines, binders, cutting machines et al. If you don’t have enough cash, you can start with fairly used printing machines but if you are financially buoyant, then you should go for brand – new heavy – duty machines.

Please note that wide format printers, also called large format printers usually cost between $10,700 and $64,000. Standard sizes are roughly 22″, and can range to 60″ or larger. Wide format printers are specialty printers that print on larger and heavier materials than the standard printers found in a typical office.

From our market survey and feasibility studies, we have been able to come up with a detailed budget on opening a standard and one stop publishing company in the united states of America and here are the key areas where you are expected to spend your startup capital on;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
  • Marketing promotion expenses for the grand opening of the dance studio in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring business consultant including writing a business plan – $2,500.
  • Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost of accounting software, CRM software, plagiarism software and Payroll Software – $1,500
  • The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of – $45,600.
  • The cost remodeling the office and constructing a standard printing press (including installing commercial printers and related printing press gadgets) – $105,000.
  • Other start-up expenses including stationery – $500
  • Phone and utility deposits – ($2,500)
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
  • The cost for start-up inventory (printing papers, printing plates, stencils, spiral binding materials, gums, pins and other related supplies) – $26,027
  • The cost for counter area equipment – $6,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $3,150
  • The cost for the purchase of office furniture and gadgets (Computers, Office Printers, Scanners, Laminating Machines, Telephone, TVs, Sound System, tables and chairs et al) – $15,000.
  • The cost of launching a website – $600
  • Miscellaneous – $2,500

From the rough estimate as listed above, you would need a minimum of two hundred and sixty – one thousand eight hundred and seven USD ($261,807) to establish a medium – scale but standard publishing company with a medium – scale but standard printing press in any city in the United States of America.

In Conclusion,

Please note that this is a rough estimate and we usually advise our readers who are interested in starting a publishing company to go to the market or directly contact sellers of the types of commercial printing machines and related gadgets they would need to get the real time prices of these items. The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.

Joy Nwokoro