How to Start a Screen Printing Business | SkillsAndTech

Do you enjoy graphic design or have a flair for creating eye-catching works of art? Then starting a screen printing business could be a great way for you to grab a small slice of the nearly $8 billion US screen printing market.

Starting a screen-printing business is straightforward and requires little if any training. And thanks to low start-up costs, you could start your very own business without breaking the bank.

But, that doesn’t mean it’s easy to launch and run a successful printing business! As with any business, you’ll need to do some careful planning before you can start making money. Thankfully, you’ve come to the right place, as this step-by-step guide details all you need to do to put yourself on the path to screen printing success.

Table of Contents

Decide if the Business Is Right for You

When you plan to start a business, you must choose one that fits your situation and preferences. That’s why, in this section, we’ll delve into everything you need to know to make that decision.

Pros and cons

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Before you venture into the world of screen printing, you should be aware of the pros and cons of the industry.

Pros

Low costs make it easy to get started
Work with a variety of materials and product types
More durable than heat press and digital printing

Cons

Production is pricey for small quantities
Color constraints mean no photo-based designs
Low barriers to entry means stiff competition

Screen printing industry trends

Following a pandemic-driven downturn, the market looks set for significant expansion, with the global screen printing industry expected to see strong 16% growth through 2027.

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Industry size and growth

Industry size and past growth – The US custom screen printing industry is worth nearly $9 billion, after declining more than 2% per year since 2017.
Growth forecast – Market analyst IBISWorld says the screen printing industry is expected to bounce back and grow nearly 3% in 2022. Globally, the screen printing industry is predicted to post strong growth of 16% per year to reach $5 billion by 2027.
Number of businesses – There are more than 12,000 screen printing businesses in the US.
Number of people employed – The industry employs more than 67,000 people.

Trends and challenges

Trends shaping the screen printing industry include:

Use of customized t-shirts as marketing tool
Increasing ecommerce penetration
Rising demand for pop culture merchandise

Challenges in screen printing industry include;

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Poor print quality
Health risks from chemicals
High level of competition

What kind of people work in screen printing?

Gender – 71% of all screen printers are male, while 29% are female.
Average level of education – About a third (35%) of screen printers have a high school diploma, while 30% hold a bachelor’s degree.
Average age – The average age of a screen printer is 48 years old.

How much does it cost to start a screen-printing business?

Startup costs range from $9,000 to $27,000 or more. By far, the highest startup cost will be your screen printing equipment, which includes a screen printing press, a screen print dryer and more. If you need some training, there are countless screen printing courses and workshops online for as little as $40.

If you’re looking to start with minimal investment, you’ll want to operate out of your home, at least in your first months. It’s also a good idea to look for used screen printing equipment online — this Facebook group with more than 6,000 members is a good place to start.

On the flip side, the maximum budget will get you something along the lines of Lawson Screen Printing’s Advanced Start-Up Package, which will set you back nearly $16,000. You’ll also likely need commercial space to make good use of all your equipment.

Start-up Costs	Min	Max	Average
Licenses and permits	$100.00	$300	$200
Insurance	$100.00	$300	$200
Branding, Marketing and Advertising	$1,000.00	$5,000	$3,000
Website	$200.00	$1,000	$600
Hiring	$0.00	$200	$100
Screen Printing Equipment	$7,000.00	$16,000	$11,500
Shop Décor and Furnishing	$0.00	$3,000	$1,500
Miscellaneous	$600	$1,200	$900
Total	$9,000	$27,000	$18,000

How much can you earn from a screen printing shop?

Revenue will depend on the products you offer and the number of colors you expect to use. For example, printing a T-shirt with three colors will generate different revenue numbers than printing a mug with a single color.

Let’s use an order for 50 custom, three-colored T-shirts as an example. Blank T-shirts are $2 each, while your materials average out to $1 per T-shirt. That means your total cost of $150 breaks down to $3 for each T-shirt, which you then sell for $7 each, making $350. This means you’ll have a profit margin of about 55% and make $200 in profit from this order, which should take no longer than one hour to fulfill.

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In your first year or two, you might average five of these orders per week, bringing in more than $90,000 in annual revenue and around $50,000 in annual profit, assuming a 55% margin. After a few years you might generate 20 sales per week, but with higher overhead, due to staff and facilities, your margin will fall to 30% and you might only make $100 in profit from each order. Still, you’d make more than $360,000 in annual revenue. At a 30% margin, you’d make a tidy profit of almost $110,000.

What barriers to entry are there?

There aren’t many barriers to entry in the screen printing business, but one to be aware of is the intense competition from local, national, and even international players.

Another barrier to entry is that clients face no costs to switch to another service, which means you have got to be excellent at screen printing to keep your customers.

Hone Your Idea

Now that you know what’s involved in starting a screen printing business, it’s a good idea to hone your concept in preparation to enter a competitive market.

Why? Identify an opportunity

Explain how the reader should identify an opportunity — examine the market for gaps and trends, consider your special skills and capabilities.

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Research screen printing businesses in your area to examine their products/services, price points, customer reviews, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a screen printer that focuses on references to 1990s culture and style.

You might consider targeting a niche market by specializing in a certain aspect of your industry, like coffee mugs.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your products or services

You could offer a standard set of screen printed T-shirts and mugs, and also offer custom printing for a wide variety of products, including backpacks, binders, ceramics, posters, wood, snowboards, medical devices and more. The possibilities are almost endless when it comes to screen printing. Do your research and decide what works best for you and your business.

How much should you charge for screen printing?

Assuming you start from home as a solopreneur, your main costs will be materials and ink, and you should be able to achieve a profit margin of 50-55%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will hinge on the products you choose. If you focus on T-shirts for instance, you are likely to have a younger demographic, and could find them on platforms like TikTok and Instagram. If your products are mostly mugs, binders and signs, you would do better to target businesses on LinkedIn.

Where? Choose your business premises

In the early stages, you’ll want to run your screen printing business from home to keep costs low. But as your business grows, you’ll likely need to hire workers and rent out a production facility. Find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

Central location accessible via public transport
Ventilated and spacious, with good natural light
Flexible lease that can be extended as your business grows
Ready-to-use space with no major renovations or repairs needed

Brainstorm a Business Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

Short, unique, and catchy names tend to stand out
Names that are easy to say and spell tend to do better
Name should be relevant to your product or service offerings
Ask around — family, friends, colleagues, social media — for suggestions
Including keywords, such as “screen printing” or “custom T-shirts”, boosts SEO
Name should allow for expansion, for ex: “Jim’s Bakery” over “Jim’s Cookies”
Avoid location-based names that might hinder future expansion
Use online tools like the Step by Step Business Name Generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Create a Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

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Executive Summary: Brief overview of the entire business plan; should be written after the plan is complete.
Business Overview: Overview of the company, vision, mission, ownership, and corporate goals.
Product and Services: Describe your offerings in detail.
Market Analysis: Assess market trends such as variations in demand and prospects for growth, and do a SWOT analysis.
Competitive Analysis: Analyze main competitors, assessing their strengths and weaknesses, and create a list of the advantages of your services.
Sales and Marketing: Examine your companies’ unique selling propositions (USPs) and develop sales, marketing, and promotional strategies.
Management Team: Overview of management team, detailing their roles and professional background, along with a corporate hierarchy.
Operations Plan: Your company’s operational plan includes procurement, office location, key assets and equipment, and other logistical details.
Financial Plan: Three years of financial planning, including startup costs, break-even analysis, profit and loss estimates, cash flow, and balance sheet.
Appendix: Include any additional financial or business-related documents.

If you’ve never created a business plan before, it can be an intimidating task. You might consider finding and hiring a business plan specialist at Fiverr to create a top-notch business plan for you.

Register Your Business

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Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to screen printing.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your screen printing business will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
Corporation – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that most new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using ZenBusiness’s online LLC formation service. They will check that your business name is available before filing, submit your Articles of Organization and be on hand to answer any questions you might have.

Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist, and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
Venture capital: Venture capital investors take an ownership stake in exchange for funds, so keep in mind that you’d be sacrificing some control over your business. This is generally only available for businesses with high growth potential.
Angel investors: Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities.
Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
Personal: Self-fund your business via your savings or the sale of property or other assets.

For a screen printing business, your best bet is probably going the personal route or reaching out to friends and family. Although, if you have a great concept, you could give crowdfunding a shot as well.

Apply for Licenses/Permits

Starting a screen printing business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

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Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your screen printing business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

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Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
Business Property: Provides coverage for your equipment and supplies.
Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
Worker’s compensation: Provides compensation to employees injured on the job.
Property: Covers your physical space, whether it is a cart, storefront, or office.
Commercial auto: Protection for your company-owned vehicle.
Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use graphic design tools such as Affinity Designer, Adobe Illustrator, and CorelDRAW for photo editing, typography, and more.

Accounting

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Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero.
If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Marketing

Some of your business will come from the casual passerby or online visitors, but still, you should invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness.

Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products:

Facebook: Great platform for paid advertising, allows you to target specific demographics, like men under age 50 in the Cleveland area.
Instagram: Same benefits as Facebook but with different target audiences.
Website: SEO will help your website appear closer to the top in relevant search results, a crucial element for increasing sales. Make sure that you optimize calls to action on your website. Experiment with text, color, size, and position of calls to action such as “Buy Now”. This can sharply increase purchases.
Google and Yelp: For businesses that rely on local clientele, getting listed on Yelp and Google My Business can be crucial to generating awareness and customers.

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Kickstart Marketing

Take advantage of your website, social media presence and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include:

Signage – Put up eye-catching signage at your store and website.
Flyering – Distribute flyers in your neighborhood and at industry events.
Sponsor events – You can pay to be a sponsor at events that are relevant to your target market
Post a video – Post a video about your product. Try using humor and maybe it will go viral!
Limited edition – Offer a limited edition of your bestselling T-shirt or mug.
Seek out referrals – Offer incentives to generate customer referrals to new clients.
Paid ads on social media – Choose sites that will reach your target market and do targeted ads.
Create infographics – Post infographics and include them in your content.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.

You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your screen printing business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your printing business could be:

The hottest, coolest T-shirts in town
Mugs, tablets, desks, posters — your whole business branded
Custom screen printing at great rates!

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a screen printing business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in screen printing for years and can offer invaluable insight and industry connections.

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in printing. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Build your team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a screen printing business would include:

Screen Printers
Designers
Marketing Lead
General Manager

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Start Making Money!

Now that you’ve put a strong foundation in place, it’s time to get out there and grab your slice of the $8 billion US screen printing industry!

To ensure your business starts off on the right foot, here are some key tips to keep in mind:

Meet your deadlines: Whether it’s the deadline for a printing project or your bills, make sure you meet your time commitments—your stakeholders will appreciate it!
Provide more value than you take: Ensure your clients and stakeholders get more value from you than you take from them, and they’ll stick with you for life.
Always implement quality control: A simple quality assurance check will reduce product returns and customer dissatisfaction.
Engage the local community: You know the local community and have a direct connection with them, so it’s better to serve their needs before you market your products on a state or national level.
Address complaints with humility: Always listen to your clients, especially their negative remarks as these are areas where you can improve. And even if a complaint is illogical or unfair, address it calmly and professionally.
Keep improving your production capacity: You don’t know when a big client will come out of the wood work. Make sure you’re able to seize the opportunity when the time comes.
Attend events: Ensure your participation in industry events and trade shows. Bring your best designs as samples and prove yourself as a creative and capable printer.