since1794

I'm a novice currently embarking on a business plan and funding request for a small to mid-sized screen printing operation. In my planning and estimating of the items needed and more importantly the cost associated with everything needed, I've realized this is extremely difficult for a novice to do correctly. It seems that almost daily another unforeseen cost arises, but this has caused me to question what else have I forgotten to add into the cost of the shop. Believe me, I've tried to estimate everything down to the anti-fatigue mats to trash cans, but like I found out yesterday, shop management software can potentially be a $5000 to $6000 cost if not more...Can anyone provide hidden cost that a novice just wouldn't consider to plan for? Thanks in advance for your help.

 

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Pwear

The list is huge - If you tell us what you've accounted for so far we can tell you what else you need.

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since1794

Thanks Pwear. Yes the list is huge and seemingly ever growing. This is what I have so far. I must warn you it may be overkill, but I would rather purchase upfront, than go back to investors hat in hand...I've sent it to your inbox. Thanks again.

 

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midwaste

With all due respect, why would a self-described "novice" create a business plan based on an industry in which they hadn't properly educated themself?
It would be a lot easier to estimate expenses if you had an intimate grasp of what it is you are getting yourself into if/when your funding request is approved.

Don't forget paper towels, you'll need a bunch.

 

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since1794

Quote: Originally Posted by midwaste With all due respect, why would a self-described "novice" create a business plan based on an industry in which they hadn't properly educated themself?

I agree, but I probably threw the word "novice" around hastily. I worked briefly for a mega printing and embroidery operation out west with a 40'000 sq ft. printing facility. But more importantly I started a small but successful clothing line four years ago that we outsource all the production for. We now want to increase margins, and control more of the production cycle so we're delving into the printing side. We have a pretty good following, and great concepts which has attracted a few investors to us. We now want to leverage the immediate cash flow from the current line to sustain the business while we grow our clientele outside our current market. So we're novice to the day-to-day operational side of printing, but not to the industry itself. Hence the reason why we're jumping in with both feet.

So when I use the word "novice" its only to represent my experience in a printshop.

 

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John_Sheridan

Quote: Originally Posted by since1794 I worked briefly for a mega printing and embroidery operation out west with a 40'000 sq ft. printing facility. But more importantly I started a small but successful clothing line four years ago that we outsource all the production for. We now want to increase margins, and control more of the production cycle so we're delving into the printing side.

I worked for a company once who outsourced everything. They wanted to have more control and fatten their margins. They decided to get into the printing side of things..

10 months later it was a gigantic multi-million dollar failure!


My advice to you.. the success of your clothing line is in part to the printing.. if you can't match or exceed that quality of printing right out the gate you may run into major problems. Start small and get your shop up to speed and making profit. Work on your simple 1-3 color stuff in house before you stop using outsourced printers for any complicated work. Only when you are fully competent to print everything you design should you bring everything in house.

Good luck and don't forget the toilet paper for that list.

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If you can't afford to do it right the first time... then how can you afford to do it two, three.. even five times the wrong way? Are you LinkedIn?

 

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tdunham

Justice,

For this forum to yield the best results for you, you will need to disclose more information. How many colors are your designs? what type of volume will you need to be able to handle? Are your designs printed in WB or plastisol(matters on curing)? Will you have space limitations? Do you intend on starting manual or automatic? Will you need to be able to color match/mix on site?

Since you have an established line and are already in the industry, your start up is actually more complex than a real newbie. You might have to hit the ground running with volume and quality that a brand new shop may take years to achieve.

Consider these things:

Art:
Computer, Software, RIP, Printer/output, start up consumables(film, ink, etc)
PrePress:
Screens, exposure unit, wash out, dark room, start up consumables/supplies(scoop coaters, etc)
Press:
Press sized appropriately, additional platens, flash cure, supplies(squeegees, etc)
Post Press:
conveyor Dryer, Folding table, Spot gun, reclaim supplies, etc
Ink:
At least every color in your designs, whites, blacks, standard colors, additives, spatulas,
General:
Building or space, shelving, power run where needed, accounting sys, etc

This is a very generic attempt at highlighting the main areas of the print shop.

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Tim Dunham, Workhorse Products
800-778-8779,

 

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