Do you want to start a screen printing business and want to know the cost breakdown? If YES, here are 14 factors that affect the cost of opening a screen printing business. Players in the Screen Printing industry engage in screen printing without publishing on a job-order basis. Printing services carried out by screen printing companies are stationery, invitations, labels and apparel such as T-shirts, caps, jackets and towels amongst others.
The Screen Printing industry has been growing steadily many thanks to the demand from downstream consumers and businesses. The industry has regained the losses it incurred in time past, when cash – strapped consumers were unable to allocate funds for discretionary expenditures like custom T-shirts, caps, jackets, towels et al.
If you are conversant with the screen printing business, you will realize that there is room for any investor or entrepreneur to start his or her own screen printing business and still get a fair share of the market as long as his or her services meets international standard.
Opening a screen printing business might not be easy, but one thing is sure, it is a straight – forward business that can generate huge and steady profits if well positioned and properly managed. In this article, we will help you with the estimated cost of opening a screen printing business in your city.
Estimated Cost Breakdown for Opening a Screen Printing Business
When it comes to starting a standard screen printing business, one is expected to spend the bulk of the startup capital on leasing a shop facility, purchasing and installing screen printing equipment and machines. Please note that the exact cost of opening a screen printing shop depends on the size of the shop and where it will be located.
Asides from that, you are expected to purchase printing supplies like ink, stencils and materials et al. and of course paying of your employees and utility bills. These are the key areas where you are expected to spend your startup capital;
- 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 (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand launching of the screen printing 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 (it includes writing of business plans) – $4,500.
- Insurance (general liability, workers’ compensation and property casualty and other related insurance policy) coverage at a total premium – $12,400.
- The cost for payment of rent for a shop facility for 12 months at $1.76 per square feet in the total amount of – 75,600.
- The cost remodeling the facility and constructing a standard screen printing shop – $50,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
- Operational cost for the first 3 months (salaries of employees, and payments of bills et al) – $40,000
- The cost for the purchase of equipment and startup inventory and printing supplies such as ink, stencils and materials et al. – $75,000
- The cost for storage hardware (bins, rack, shelves, creates) – $20,720
- The cost for shop equipment (cash register, security, ventilation, signage) – $750
- The cost of launching a website – $600
- The cost for our opening party – $5,500
- Miscellaneous – $5,000
From the rough estimate above, you would need a minimum of two hundred and fifty five thousand five hundred and fifty USD ($255,550) to establish a medium – scale but standard screen printing business in the United States of America. Please note that this amount includes the salaries of all staff for the first three months of operation.
Please note that this is a rough estimate and we usually advise our readers to go to the market or directly contact wholesalers and suppliers of the type of screen printing machines and equipment they want in order 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. Having said that, here are some of the factors that will influence the cost of opening a screen printing business in the United States of America;
14 Factors That Determine How Much It Cost to Open a Screen Printing Business
Table of Content
- 1. The Choice of Location
- 2. The Required Licenses and Permits
- 3. The Type of Facility
- 4. Your Complimentary Service Offerings
- 5. The Size of the Screen Printing Business
- 6. The Cost of Hiring a Business Consultant and Attorney
- 7. The Cost of Branding, Promotion and Marketing of the Business
- 8. The Cost for Furnishing and Equipping the Business
- 9. The Cost of Insurance
- 10. The Cost for Registering the Business
- 11. Source of Your Supplies
- 12. Cost of Recruiting and Training Your Staff
- 13. The Cost of the Purchasing and Customizing Uniforms for Employees
- 14. The Cost of your Grand Opening
A major factor that will determine the cost of opening a screen printing business in the United States of America is your location. As a matter of fact, there are business consultants and realtors who are specialized in helping people choose an ideal location for their business; a location that will guarantee them to profitability.
Renting or leasing a shop facility in a location that is off the city center or off a major road will be less expensive when compared to renting or leasing a shop facility in a highbrow area; a location along a major road with high vehicular and human traffic, a location in a metropolitan city with the right demographic composition.
2. The Required Licenses and Permits
In the United States of America, you cannot open a screen printing business without first applying for the mandatory license and permits. You would need operational license, building license, zonal permits, and signage permits amongst others.
These license and permits cost money and it will influence the overall cost of opening a screen printing business in the United States of America. Please note that you must pass through several inspections before you can be issued your permits– this will also cost you money.
In order to get the overall cost of licensing and permits associated with opening a new screen printing business in the United States, we will advise that you reach out to your city government. You also need to consider state and federal requirements.
3. The Type of Facility
The type of facility you want to operate your screen printing business from is also a major factor that will determine the overall cost of opening a screen printing business in the United States of America. As regards the facility, you have the option of renting, leasing or designing and constructing your own shop.
With renting and leasing a shop, you may spend extra to modify the shop to fit into what you have in mind. Let us assume that you want to construct your facility from the scratch.
It means that you will buy the land or a property, bring up your design and of course construct and equip the shop. With that, you will agree that you are going to spend way more when compared to people that rent or lease a shop facility in a shopping mall or booth rental facility.
4. Your Complimentary Service Offerings
Another key factor that will determine the cost of opening and operating a screen printing business in the United States of America is the complimentary services of the screen printing business.
A screen printing shop is expected to be involved in the all aspects of screen printing such as Apparel screen printing, Balloons screen printing, Decals, Medical devices screen printing, Printed electronics, including circuit board printing, Product labels, Signs and displays, Snowboard graphics, Textile fabric, Thick film technology, Stationery screen printing, Label screen printing, etc. but it does not mean they can’t be engaged in other printing services.
The cost of opening a screen printing business that offer robust complimentary services will be more when compared to the cost of opening a screen printing business that only engages in screen printing without retailing products.
5. The Size of the Screen Printing Business
Another very important factor that determine the cost of opening a screen printing business in the United States of America is the size of the business. Of course, the larger the business, the larger the budget to get it up and running especially.
Aside from the cost of equipping the shop, it will also cost you more to hire employees to man different job positions in the business. For example, less than a handful of employees can man a screen printing business that is in a 12 by 12 facility while it will take about a dozen employees to man a screen printing business that is in a 24 by 24 facility.
6. The Cost of Hiring a Business Consultant and Attorney
If you want to get your business started on the right foundation, it will be a wise decision to hire the services of a competent business consultant and perhaps an attorney. A business consultant will help with drafting a workable business plan, marketing plan, comprehensive SWOT analysis, and other advisory services.
So also, an attorney will help you with registering the business, drafting contract documents (especially for your suppliers and creditors) and offering you all the legal expertise that will help you start the business on the right foundation. Of course, you will agree that these services will cost you money and it will indeed influence the overall cost of opening your business.
7. The Cost of Branding, Promotion and Marketing of the Business
The cost of branding, promoting and marketing the screen printing business is yet another key factor that will determine the overall cost of opening the business in the United States of America. Trust me, if you want to win a fair share of the available market in your city, then you must be willing to pay for effective branding, promotion and marketing of your new screen printing business.
It is not cheap to come by an expert in branding that will help you compete with brands that are already determining the market direction of the industry. So, if you add the cost of paying a branding and marketing expert, it will sure increase the cost of opening your screen printing business.
8. The Cost for Furnishing and Equipping the Business
Another factor that will determine the cost of opening a screen printing business is the cost for furnishing and equipping the screen printing shop. You will quite agree that aside from the basic facilities that are expected to be found in a screen printing facility, you can decide to spend more than expected to furnish the facility to look unique.
You need equipment like; screen printing machines, cutters, storage hardware (bins, rack, shelves, case), counter area equipment, Flat Screen TVs, sound system, Satellite dish and decoder, furniture (table, and stools), telephones, filing cabinets, store equipment (cash register, POS machines, security, CCTV, ventilation, signage), security and fire alarms and prevention gadgets amongst others. All these will cost money and it will influence the overall cost of opening a screen printing business in the United States.
The cost of insurance policy cover is yet another important factor that will determine the overall cost of opening a screen printing business in the United States of America. In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from.
Thus, it is imperative to create a budget for insurance and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your business.
10. The Cost for Registering the Business
The cost for registering the screen printing business is yet another cost that will influence the overall cost of opening a screen printing business. Although the cost of registering a business is affordable, it will no doubt add to the overall cost of opening the business.
11. Source of Your Supplies
Another major factor that will determine the cost of opening a screen printing business in the United States of America is the source of your screen printing supplies such as ink, stencils and materials et al.
If you are able to build a robust business relationship with some of the leading screen printing supplies production companies, then you would have succeeded in cutting down the cost of your screen printing supplies such as ink, stencils and materials et al.. As a matter of fact, you can even get your supplies on credit.
The fact that you are opening a new business means that you need to recruit and train your staff. The training will help you sell the corporate culture of your organization to the new employees. As expected, it will cost you money to hire trainers and that will add to the overall cost of opening a screen printing business.
Another factor that will determine the overall cost of opening a screen printing business in the United States is the cost for the purchase and customizing of uniforms, shoes, and caps amongst others. Your staff all need uniforms and they are expected to put on these uniforms when they are on duty.
All these uniforms will cost you money which is why it must be part of your budget if you are looking towards opening a screen printing business in the United States of America.
14. The Cost of your Grand Opening
You will agree that in recent times, no screen printing business opens its door without first organizing an opening party to officially launch the business. This means that the cost of the grand opening is part of the factors that will determine the overall cost of opening a screen printing business in the United States of America.
You can choose to do a soft opening if you are operating on a low budget or you can choose to go for a grand opening party. The bottom line is that it is a cost that must be part of your budget and this cost will influence the overall cost of opening the screen printing business.
Please note that there are other factors not listed above that will sure influence the overall cost of opening your screen printing business which is why we advise that you work with a result driven business consultant.