First year income

6702 Views 16 Replies 8 Participants Last post by sawgs, May 8, 2012

mcadaman

Discussion Starter · May 2, 2012

I'm wanting to start a screen printing business and would be doing it full time. What would be realistic first year income? Would be starting in a shop, not from home. Any comments would be greatly appreciated.

1 - 17 of 17 Posts

abmcdan

· #2 · May 2, 2012

Mike,

Your first year income is going to be completely dependant on your ability to sell and get jobs.

If you start with shop overhead and zero customers I would say you have a good chance of losing money the first year until you get a customer base.

Start out as lean as possible until you start getting regular sales flowing.

mcadaman

Discussion Starter · #3 · May 2, 2012

I have 15 years in sales so I know how to do that, cold calls, marketing, referrals, not afraid to talk to anyone. I'm just trying to get an idea as a small shop what would be a realistic number. I think some of the folks on the forum might not have the sales experience that I've had when they first started and that can be a bit overwhelming.

abmcdan

· #4 · May 2, 2012

Mike,

If you will be a 1 man show you could do some very rough figuring.

After all the sales, running the business, artwork output, and shop prep you might only get 15 hours per week of actually running the press. So if you structure your pricing to keep a shop rate of $100 per hour you could gross $1,500 per week. From that your rent and overhead will come out.

This is very simplified but gives you a start. Some markets can charge more than others.

Hope this helps,
Andy

mcadaman

Discussion Starter · #5 · May 2, 2012

Thanks Andy, you've given me more things to think of. As you can see from my member date, I've been thinking of doing this for a while.

VTG

· #6 · May 2, 2012

It's difficult to answer this question or even provide a guess, as there are a lot of variables that come into play. Here are just a few things to take into consideration:

- What type of market will you be operating in (urban, suburban, rural)?
- How much competition will you be facing in your market?
- Will you be charging low, medium, or premium prices?
- Will you be operating as a 1 person show or with employees?
- Will you be operating a manual press or an auto press?
- Starting out with high expenses (overhead) can be tough to overcome ... is your rental rate going to be affordable?

Andy is correct ... if you're starting out as a one man show, you'll definitely be tied up doing a lot of things to support the business, therefore, the number of available "production hours" will definitely be something less than 40 hours ... probably more like 15-20 hours per week.

hazeremover

· #7 · May 3, 2012

One critical area that is consistently overlooked when starting a screen printing business is your art department. Will you be purchasing the computer, scanner, printers yourself, creating and generating your color seps and film positives in house? If you have zero art or even technical ability in that area, it's going to be a long haul to success. There is a definite learning curve involved with it. Some pick it up easily while others just "get by" with the basics and they do eventually reach some level of success.

The downside to that is most everything they create and print resembles a good chunk of shops out there that produce "just get by" art and design. Nothing separates them from other companies. If you're aiming to be a store front, custom type of business, you'll probably do fine at that level. If you decide to go into contract printing, you're going to need raise your art stakes a bit to increase your sales and volume.

Fortunately, there are many freelance artists out there that you can utilize for your business however, it's a little harder to find artists that are experienced with the screen printing process. You'll also have to sift through "artists" that can buzz around Photoshop like an Adobe engineer yet have zero art ability, mainly the ability to draw and concrete skill in conceptualizing. If you're going to market pre-prints, copying the latest trend works some of the time but it just breeds mediocre designs that lack soul.

Just some food for thought. Plan for it. Sounds like you have some decent sales ability and that's a major bonus. The average person doesn't know how to market themselves let alone, "close the deal". Facebook will not save your business. Real life face to face will always be the "first chair".

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Embroidthis2200

· #8 · May 3, 2012

As a one man shop you can sell all you want, but then it has to be produced... keep it in ballance.
today is my 4th year in business 1500 sq feet, Retail store front, Brother GT541, two Single head embroidery machines, 30" Rolland versa Cam, rolland plotter, Two auto 16X20 Stahls heat presses, promotional products distributor, Sub out our screen printing and we will gross 500k this year... not great but were getting there. one full time employee and 3 part time, no advertizing and no out side sales, most days we don't turn on the open sign. Were open 8:30 to 5:30 m-f and sat 10-2.... I didn't take a pay check till year two, everything went in to the company, (wife had a job) so we could eat. It doesn't happen overnight... start it and stick with it.... it will come.

Reactions: 2

mcadaman

Discussion Starter · #9 · May 3, 2012

VTG, Hazeremover, Embroidthis...all great replies. Thanks a lot. The artwork will be done by my son who has experience with Corel Draw. The store front would just allow me to become more of a draw for business than just someone who could be perceived as doing this as a hobby. Nothing wrong with starting from home but it's just not the direction that I want to start with. Thanks for all the replies and it just gives me more to think about.

BigPappy

· #10 · May 3, 2012

Mike, I'm in the same boat. Been thinking about it for a while. I just need to go and do it!

mcadaman

Discussion Starter · #11 · May 7, 2012

Big Pappy,

I know what you mean. I can see that you have been thinking about it for a while also. I'm just gonna go for it and the heck with all the naysayers and their negativity.

BigPappy

· #12 · May 8, 2012

mcadaman said:
Big Pappy,

I know what you mean. I can see that you have been thinking about it for a while also. I'm just gonna go for it and the heck with all the naysayers and their negativity.

I actually printed my first shirt this weekend! All I had on it was "This is my first shirt..... RESPECT IT!"

This actually got me thinking more about it and a little more motivated to move forward.

BigPappy

· #13 · May 8, 2012

Embroidthis2200 said:
As a one man shop you can sell all you want, but then it has to be produced... keep it in ballance.
today is my 4th year in business 1500 sq feet, Retail store front, Brother GT541, two Single head embroidery machines, 30" Rolland versa Cam, rolland plotter, Two auto 16X20 Stahls heat presses, promotional products distributor, Sub out our screen printing and we will gross 500k this year... not great but were getting there. one full time employee and 3 part time, no advertizing and no out side sales, most days we don't turn on the open sign. Were open 8:30 to 5:30 m-f and sat 10-2.... I didn't take a pay check till year two, everything went in to the company, (wife had a job) so we could eat. It doesn't happen overnight... start it and stick with it.... it will come.

Great info. I am in the same boat you were, I have a job and this is something for us and the kids to do together. Hoping in about 2 years to open in a retail spot. If you don't mind me asking, where does the majority of your business come from?

royster13

· #14 · May 8, 2012

Do you think someone else's numbers will work for you?.....Results from selling are very much dependent on your own skills, experience, effort, etc....

Embroidthis2200

· #15 · May 8, 2012

Other businesses mostly, some school stuff, but I would caution you on the schools, they are fine but are ran by committy volunteer's that change often and ever new one has a friend that screens in there garage... I take the orders but we do not persew school business... what we have found is everyone is a customer, and the one we do here and there all have jobs somewhere. Our top 4 accounts last year came from us doing one shirt, bag, or banner that was not associated with the company, but that person worked there and when the time came for the company to need something... we were top of mind. All our competitors have 12 or 24 piece minimums. So we fill a need for smaller "personal" items that turn into big accounts... it works for us so far.

mcadaman

Discussion Starter · #16 · May 8, 2012

Royster, Embroidthis,

Thanks for the replies. I am in Wylie, TX, a suburb of Dallas. I've had to change my original plan of starting in a shop and now will open at the house. I think that sales for the remainder of this year should be around 40k. I've already got a couple of designers that are wanting shirts printed and have a customer in San Antonio that is just waiting for me. I think that's a pretty good start.

sawgs

· #17 · May 8, 2012

Great thread...remember these thoughts and obstacles to getting off the ground. However, if you are willing to get creative and to find a like minded "shop owner"... you may be able to work out an equipment deal. I found an individual that was doing his thing - I had mine: limited cross over competition. I discussed the under utilization of his capital equipment; and made a deal - I essentially rented his shop and equipment during his "off" hours... sometimes printing all night. It worked well for both of us. This allowed me to get aggressive and sell with a minimal exposure - I could go after big jobs. Thus, I beat all my initial projections.

Today, I return the favor... I have several start-ups that rent space - some on an hourly basis in my shop.

Get creative - passion, performance and persistence can make it happen!

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