How to Start a Printing Business | SkillsAndTech

The global printing industry is worth more than $800 billion and presents a wealth of opportunities amid the shift to digital and 3D printing. You could grab a slice of this vast and growing market, but you may have to work hard and acquire the relevant entrepreneurial knowledge first.

Fortunately, you’ve come to the right place, as this in-depth guide lays out every step you’ll take to develop and launch your own successful printing business.

Let’s dive right in!

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Decide if the Business Is Right for You

The first step is market analysis, to understand what’s happening in the industry and the prospects of building a successful business.

Pros and cons

Before you open a print shop, it’s best to weigh the pros and cons to help you determine if the risk is worth it.

Pros

• Highly profitable
• High customer retention rate
• Easy to start; work from home if needed
• Broad and exciting market
• Little experience required

Cons

• Cutthroat competition
• High overhead costs

Printing industry trends

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The printing industry is seeing a rebirth. For starters, research firm Mordor Intelligence expects the global printing market to see steady annual growth of nearly 2.5% for the next five years.

That’s nothing compared to the explosive forecast for 3D printing, which is becoming more common in many sectors, including healthcare and manufacturing.

Industry size and growth

• Industry size and past growth – The US printing industry has seen a gradual decline in recent years and is valued at about $79 billion as of 2022, according to market analyst IBISWorld.
• Growth forecast – The US digital print market is headed toward impressive annual growth of almost 7% through 2026 while the 3D printing market is seen to grow from $14 billion in 2021 to $51 billion in 2028 — a more than 350% expansion in just seven years.
• Number of businesses – There are nearly 45,000 printing businesses in the US.
• Number of people employed – The industry employs more than 350,000 people.

Trends and challenges

Trends shaping the printing industry include:

• Growing preference for 3D and digital printing
• Emergence of erasable printing technology, security printing, and cloud printing

Challenges in the printing industry include:

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• Declining demand due to adoption of digital technology
• High level of competition

What kind of people work in printing?

• Gender – Around 66% of all printers are male, while 34% are female.
• Average level of education – 36% of printers have a high school diploma and 28% hold a bachelor’s degree.
• Average age – The average age of an employed printer is 48 years old.

How much does it cost to start a printing business?

The cost of starting a printing business depends on location, initial equipment, and upfront supplies.

You should expect to spend at least $40,000 for a barebones operation and up to $400,000 on the higher end. However, most in the printing business spend about $200,000 for a well-rounded print shop.

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Signing on with a franchise such as the UPS Store boosts income. But if you’re not getting a franchise, your startup investment as an independent printing business will cover the following:

Start-up Costs	Ballpark Range	Average
Printing shop	$4,000 – $12,000	$8,000
Equipment	$1,500 – $12,000	$6,750
Printing supplies	$1,000 – $5,000	$3,000
Software per year	$500 – $1,000	$750
Website per year	$100 – $200	$150
Marketing	$500 – $1,000	$750
Insurance and licensing	$500 – $1,000	$750
Total	$8,100 – $32,200	$20,150

How much can you earn from a printing business?

Depending on industry segment and size of operation, a printing business tends to generate $100,000 to $200,000 in annual revenue, at a 50% profit margin. After costs, such as design software subscriptions, equipment maintenance, supplies, salaries, rent, and insurance, you’ll have a pre-tax profit of $50,000 to $100,000 per year.

Of course, if you add another printer, move to a larger space, or open a second and third location, you can make significantly more.

What barriers to entry are there?

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The biggest barrier to entry in the printing industry is the high level of competition. Printing is a relatively popular market, attracting a lot of entrepreneurs. Your ability to offer competitive pricing and custom print options can help you gain a share of the market.

The high cost of equipment is another barrier. Printing equipment is expensive, and unless you have adequate capital, you’ll have a problem running a well-rounded service or outperforming your competitors.

Hone Your Idea

The second step to starting a printing business is to get more clarity about what you need to do to achieve success. Here’s what you need to do during this phase:

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Why? Identify an opportunity

Your competition will be other businesses offering the same services in your area. You will also be competing against larger companies with a nationwide presence, such as American Printing.

One of the easiest ways to establish a strong presence quickly in the printing industry is to leverage franchising. Partnering with printing franchises such as The UPS Store can provide your business a steady stream of business cards, brochures, and other marketing materials to boost income.

These materials are an integral part of fostering relationships during seminars, trade shows, and other promotional events.

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What? Determine your products or services

Running a print shop typically involves providing one or more printing services, including screen, offset, 3D, or digital printing. You could also offer a combination of services, such as screen and digital. Most printing businesses offer various specialized services such as T-shirt printing, signage, brochures, magazines, business cards, catalogs, and more.

Knowing which commercial printing service to start will help you determine your target customers, competition, and how to stand out.

• Digital printing involves creating designs on a computer and then printing it on various materials, including paper, canvas, fabric, and more. The leading digital printing technologies include inkjet and laser. Inkjet is commonly used for signages, short print runs, and posters. Laser printers are used for direct mails and brochures.
• Traditional offset printing, also known as lithography, is ideal for high-volume commercial jobs. Ever seen a video of newspapers running through big rollers? That’s offset printing.
• Screen or silk printing involves pressing ink through a stenciled mesh screen to create a printed design. It is popular for T-shirts, mugs, and billboards.
• The newest and fastest growing market segment is 3-D printing, which involves the construction of a three-dimensional object from a computer design. This is not your grandfather’s printing method.

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With a niche strategy, you can leverage your expertise in a particular area to stand out from your competition.

Think of it as a way to help you focus on printing services that your competitors aren’t offering in your area.

Decide whether you want to provide digital, screen, or offset printing services, or a combination of these services. That way, you won’t have a problem identifying your ideal customers.

While most print shops run from Monday through to Friday, operating hours depend on your current orders, which means you might work on weekends and late hours if you have a deadline to meet.

How much should you charge for printing?

Your pricing structure can make or break your printing business. Here are a few pricing strategies you can use:

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Cost + markup pricing

This model involves determining the price by forecasting the cost of printing for a specific project then adding the desired profit markup on top.

Gain market share pricing

This strategy involves setting low prices to gain market share against competitors. The model works well if you’re offering multiple printing services.

For instance, you may lower prices for 3D printing to attract new customers knowing that you’ll later sell these clients more profitable services such as long-run offset printing. Research industry rates to help you determine the best pricing model for your business.

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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

You’ve chosen your niche. The next thing you want to do is pinpoint your target customers. Targeting specific groups of potential clients can help reduce your marketing costs and maximize profits.

For instance, if you run a 3D printing business, your target customers would be display companies, ad agencies, marketing firms, and manufacturers. If you’re operating a screen printing business, your customers would include college students and T-shirt design firms.

When you know the printing customers to target, you can easily reach them, not to mention that you’ll be in a better position to provide quality services.

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Where will your business be based?

While you can run your printing service from home, you’re better off with a storefront location. Ideally, you’ll want an area that’s visible and accessible.

Even if you don’t plan to attract many walk-in customers, a visible location can help spread the word about your business to local customers. You’ll also need a site that offers quick access to clients picking up their orders and people delivering supplies.

Also, as you evaluate a potential location for your print shop, consider zoning regulations to ensure that your chosen site allows for the legal operation of your business. Lastly, make sure that the cost of renting and running your selected location is within your budget.

You can find commercial space to rent in your area on Craigslist, Crexi, and Commercial Cafe. 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

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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
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “stitches” or “embroidery”, boosts SEO
• Choose a name that allows for expansion: “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.

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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 set 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 embroidery products and services 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, assess 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, it can be an intimidating task. You might consider hiring a business plan specialist at Fiverr to create a top-notch business plan for you.

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Register Your Business

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 embroidery.

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.

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Choose your business structure

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

Here are the main options:

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• 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.
• General 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.
• C Corp – 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 needs 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 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 answer any questions you might have.

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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.

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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: Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• 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.

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Bank and SBA loans are probably the best options, other than friends and family, for funding an embroidery business. You might also try crowdfunding if you have an innovative concept.

Apply for Licenses/Permits

Starting an embroidery 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.

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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 embroidery 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.

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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.

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If you want to be competitive, you’ll probably need good embroidery design software such as Hatch Embroidery, Stitch Era, and EmbroideryStudio to create designs from scratch or by scanning images.

Accounting

• 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

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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, make sure you link to your social media accounts and vice versa. Social media is a particularly good way of 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.

Kickstart Marketing

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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:

• Competitions and giveaways – Generate interest by offering prizes for customers who complete a certain action, such as the first corporate client each month gets half off.
• Signage – Put up eye-catching signage at your store and website.
• Flyering – Distribute flyers in your neighborhood and at industry events.
• In-Person Sales – Offer your products/services at local markets and trade shows.
• Post a video – Post a video about your embroidery business. Use humor and maybe it will go viral!
• Start a blog – Start a blog and post regularly. Change up your content and share on multiple sites.
• 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

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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 set 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 embroidery 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.

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

• Best embroidery skills in town!
• Wildest, most creative designs
• Digital embroidery creations for businesses large and small

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 an embroidery business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in embroidery for years and can offer invaluable insight and industry connections.

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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 embroidery. 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 an embroidery business would include:

• Embroiderer: Your embroiderer is at the heart of your operations, that’s why this person must be qualified and experienced enough to handle large, multiple assignments.
• Digital content creator: Building a strong digital footprint takes continuous effort and requires a well-thought-out content strategy that a digital content creator can help you with.
• Sales executive: A sales executive will be focused on closing sales online or through face-to-face encounters with prospective customers in the shop to boost revenue.
• Operations assistant: Your operations assistant will be on top of all operational, clerical, procurement, and administrative tasks so you can better focus on running the business.

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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 have an in-depth understanding of the embroidery market, it’s time to roll up your sleeves and put your plans into action. The hardest part will be the first 100 days of business development, when you’re still trying to find clients.

But you can make this work if you put in a lot of hard work and use the marketing strategies we’ve outlined above. You can also do affiliate marketing, where you compensate third parties in order to generate traffic to your website. You can develop long-term relationships with these affiliates and generate traffic for each other.

You’re now ready to start embroidering and making good money!