Start a screen printing shop with minimal experience ? Or something else ?

[earthdome]

Okay, I have been accumulating equipment and initially intended on just doing online sales with ebay and other sources. But I have been writing a business plan for screen printing and plan to include vinyl graphics and I am potentially going to get funding. I even found a great niche area and have contacts that do screen printing in that area and are willing to help me out getting started. And I know having and employee is going to be expensive, unless I could justify having one with phenomenal sales.

But my actual hands on experience of screen printing  minimal. And from what I remember (from trying to start a shop once before) It was very difficult and slow going. However I have a lot of resources and contacts to help me get this going. And I think the area I am in has a lot of room for growth... and only a couple competitors

Even though I have a very good business plan and a lot of resources and some basic equipment ... Am I wrong for thinking I can just inject myself into a good market and start profiting right away? I know any business is going to be a lot of work...but

Should I turn my focus to online sales and try and get funding for an online retailer situation where I can do it from home without any overhead? Would there be a better (more reliable) business alternative that I could try and go for ? I have thought about a computer repair shop, and getting some training along the way, because I know computers well. I have thought about a used computer resale shop, due to being able to get used computers online for cheap.
 
I have about a week to change my mind or go full force with the business plan I have already presented ...    really any response I would be greatful for I posted a similar question to the forums "One last chance to turn around should I take it ?" ... if you would rather respond there. Just getting down to the wire and pulling out all the stops to make sure I am doing the right thing.

Thanks for any input....

[Denis Kolar]

First of all, Welcome.

I started at the beginning of the year. I have been oing graphic design for a 5-6 years and embroidery for the last 2.
About screen printing i did not know anything when I started (I do not know much right now). But in the last few month, I was able to print some nice shirts (at least I was told that) wit the knowledge I have right now.
I would sugget you to take a look online, there is a loot of good stuff on Youtube, forums like this (this one especially), and a lot of articles on screen printing sites like ASPA.
I would not go with the retail store route right now, economy is bad and you do not have a customer base or experience for that. Do stuff from home first, until you get good, and then look at retail shop again.
And the most important thing, do not cheap out on the equipment. Get the good equipment that will serve you good with a minimal downtime. A lot of good used equipment is out there.

Good luck

[Sbrem]

I think you need to do some more math, not implying that you haven't already done a fair amount. Employees make you money, but you must have the sales or you won't be taking in enough dough to cover expenses, and then have to let them go. Then with more work, you need more space... So, if you can keep the work coming in, an employee should  be doing the production while you sell and run the rest of the business. That's the simple version, obviously, it gets more convoluted than that, but as it does, you need to maintain control, which means more people and space, and more sales... If it was easy, everyone would be doing it. Get an experienced employee, that's exactly what I was when I started doing t-shirts. I already knew how to make films (photographically in those day) make screens, mix colors, and produce art. You want one of those... and pay him/her what they're worth.

Steve

[earthdome]

Wow! I am impressed ... Quick responses !!   Wish I would have found this place sooner !   

 Thank you for the welcome Dennis. I do have some quality equipment but I only have a 4 color press so I will be upgrading to a 6 color soon. Given my circumstances (of getting funding) I am wanting to enter into an area that has a growing community and about 50 times the population as my home town.

There are 3 screen printers in my small town and only about 6 in this larger city. Even though I will be leaving my word of mouth contacts .. and traveling 40 miles to the shop, I think this is ultimately a better decision. If things work out there I can always move there.

[royster13]

All the money is in selling.....I have not printed a thing in years and manage to do quite well......

[Frog]

Wow! I am impressed ... Quick responses !!   Wish I would have found this place sooner !   

First off, welcome. Don't be so surprised at the quick responses if you have only TSPMB with which to compare. That place was purposefully killed in a perverted business move a few years back, and may never get back on its feet again as management refuses to address the issue. But enough of that.

A few questions, why the one week deadline? Do you have a source of income now? Do your contacts include screen printers? What equipment have you accumulated?

[earthdome]

I think you need to do some more math, not implying that you haven't already done a fair amount. Employees make you money, but you must have the sales or you won't be taking in enough dough to cover expenses, and then have to let them go. Then with more work, you need more space... So, if you can keep the work coming in, an employee should  be doing the production while you sell and run the rest of the business. That's the simple version, obviously, it gets more convoluted than that, but as it does, you need to maintain control, which means more people and space, and more sales... If it was easy, everyone would be doing it. Get an experienced employee, that's exactly what I was when I started doing t-shirts. I already knew how to make films (photographically in those day) make screens, mix colors, and produce art. You want one of those... and pay him/her what they're worth.

Yeah, it's hard to gauge what kind of sales I will get right away so ... I guess I will have to judge that when I get started. Given the population and the small amount of competitors I think I have a great chance for success. Just a matter of strategic marketing and trying to set myself aside from the competition.

Yeah, I think I will for sure need that one employee to start out .. or at least contracted help.... I definitely want to focus on the sales myslef and let someone else worry about production, but at the same time learning it myself.

I have already met some good contacts in my target area that are well versed in printing. Also one person who had a larger shop in the same town that had employees, including sales people etc. So hopefully I can get some good insight from him .

I know it's a long road ahead , but i'm ready for the challenge and not going to give up for anything !   

[earthdome]

All the money is in selling.....I have not printed a thing in years and manage to do quite well......

That is something extremely nice to hear.... ! Thanks....

[Fresh Baked Printing]

I wouldn't rely or recommend selling on ebay. Those folks are low-ballers X1000 and besides, by the time ebay and PayPal take their cut, you're making much less than the selling price.  That being said, I do keep one ebay listing and use it as a calling card of sorts. It cost me .50/month and I do get a several hundred bucks a year in sales, not listed on ebay.
With amount of graphic tees out there, there is room for all us :)

[earthdome]

A few questions, why the one week deadline? Do you have a source of income now? Do your contacts include screen printers? What equipment have you accumulated?

Thanks for the welcome Mr Frog.  Yeah that and t-shirt forums were the  only places I had ... I would get a couple responses after about a day but nothing like this : )

Okay, as for the deadline. (will try to make this somewhat short).. Okay, I am getting some help (due to my disability) through my local department of vocational rehabilitation (tied into the local workforce center).

I have been given the option to get help with schooling or help with starting a business. I have decided to get help with starting a business.

As far as there help starting a business goes they do a feasibility study to determine if the business is viable. If approved, they then look into funding resources, family, loans, etc. But they can help (the councilor themselves) ...up to $5000, or up to $25,000 if approved by the director of the office, and over 25k if sent to  for approval. Also they will help pay for training that will help me on my way.

Okay, well I have an entrepreneurial spirit and have been interested in screen printing since my aunt opened her embroidery shop in a small town like 10 years ago. I have since been spending a lot of my free time researching and acquiring equipment so I chose my passion "screen printnig"

However due to the long struggle of acquiring equipment, and my lack of a place to set up equipment.. I don't have very much hands on experience.

 Well without further delay here is my list of equipment and resources...

Screen printing equipment

4 Color 2 Station Atlas table top press,                     
Flash dryer                                                                 
50 Screen printing screens with mesh                     
Bolt of mesh (58 yards)                                           
Epson 1400 wide format printer                               
Computer used for t-shirt design                               
Fast rip Screen printing Software                             
Illustrator/Photoshop (design software)                 
Assortment of different inks                                 
Home made UV exposure unit.                                 
Ink jet transparency film 100 sheets                         
Home Made screen storage racks                             
Inventory –150 shirts 200 hats                                 
Jacket hold down                                                       
Makeshift washout booth                                         
Pressure washer                                                       
Various chemicals                                                     

   Vinyl Sign and Heat press Lettering Equipment

Graphtec CE-3000-60 vinyl cutter (24")                   
Computer set up with Vinyl cutting software         
Hix Ht 1400 15x15 heat press                                 
Several rolls of t-shirt Vinyl                                     
Hat press                                                                   

       Office Equipment
Epson nx 420 all in one printer                                 
Office chair                                                               
Computer for general office/filing needs                   

Will acquire the fallowing on my own:

Web Design and Logo Creation
Web Site Design/Creation                                       
Logo Creation   
 

Having that said, I also have contacts in the industry, people I know who have shops (which I need to get in and train with) . And have just  met a couple guys in my target area that have screen printing experience and could help me get started. I will be leaving behind the word of mouth (from my area) and people I know, and also my aunt's embroidery shop (which wouldn't bring me that much business) ... but leaving these for a larger area with a lack of screen printers.  I could allways move to this location eventually if needed.

I have a full basement now , but in a small town of 9k people versus a town with 300,000 people and way less competition (per person ratio) I think it is a no brainer. Although I will be starting fresh in this area with limited contacts I feel it is the best option.

Okay (if your still with me) right now I am in the phase of writing my feasibility study (well the place that was contracted out is doing it) but she has given me the opportunity to make any necessary changes to it before she turns it in on the 31st..  I have questioned if it's what I want to do, can I find something with less physical work, less messy closer to my home , or maybe even online that I could do from my house. Or with less or no learning curves.

However I am this far in it I don't think it would be advisable to change it now, ad it may affect funding.

I am working on making some changes to this document.

here is a list of  what I am stating I need:

Items with Immediate Need
Complete Screen Printing Business Course   $395+
Stationary & Brochures                    $500
Cash Register & Displays                     $500
Conveyor Dryer (for mass production)      $2,000
Various Production Chemicals                 $200
Assortment of Sign Vinyl                    $500

total :                                $4095

Items Needed in Early Stages of Development
Sublimation Printer         $300 to $2,500 (Estimated $1500)
6 Color 6 Station Press      $1200
               
Total                                         $2700

Additional Start Up Costs
Include rent deposits and rent, legal (filing fees, etc), insurance, and contracted help (to maximize profit potential).  These start up costs will be further calculated once a location is decided upon, but may be in the $4,000 range or more. 

   [/u] Long Term Equipment Needs[/u]
DTG (Automatic Direct to Garment Printer)      $5000+
Automatic Screen Printing Press            $6000+
                                 
       Total                                                                $11,000+

There is a lot of different variables stressed in the actual document ... such as "these items will not be purchased until the need is justifed" etc ... I also stated I need a contracted helper at first , and will have to determine if an employee will be necessary if production picks up..  But wanting to make this a huge success so , I am sure employee's would be a benifit, but to start out I think I will contract intil I can afford/justify an employee.

This is what I portray the business will encompass:

Screen Printing
Artwork Setup / Graphics Design
Team Logo Placement
Heat Pressing
Sublimation (prints on promotional materials)
Business Card Printing
Vinyl Sign Printing and Design
Basic Web Design (contracted out)

Although not sure about business card printing. I would also need a new printer if I decide to do heat transfers.. I have considered including retail but decided it won't be the best option.  I have put a lot of thought into my company name , and location, and have a friend working on my website as we speak. Would also like to have a good web presence which only 1 or 2 competitors have.. 

Anyways (if by some miracle you made it through reading this) I thank you !!  perhaps I should have started a new thread for this but ... hopefully I get some responses .. Would be nice to have someone willing to go over the whole document , but I think I stressed the major points ...

Thank you for taking the time to read this!

[blue moon]

I think I started eight or nine companies by now. Some were an incredible flop and some were very successful . . .

What did the good ones have in common? They all had the sales lined up before anything was started. They all required an insane amount of dedication and crazy long hours. Any business I start any more has to have goals and some good underlying math. Look to get into what will not lose you money even with bad management and will make you a lot of money with very good management. Starting from scratch with borrowed money is tough. What happens if you do not make it? Do you still have to pay back the loan? Will you be able to?

Don't take me wrong, it is being done by many ppl every day, and many of us just stumble around to success, but having plans and goals and being able to do it in a calculated manner requires a different approach, type of thinking and incredible dedication. If that is the route you are taking, get some advisors to help you make sure your goal are obtainable, measurable and relevant. Have them help you analyze what you are doing and what your plans are. Advisors will also help keep you on track.

If you decide to wing it, stay away from borrowing money. This way if you decide to quit you do not have to worry about paying back the money out of your own pocket.

Feel free to drop me a line if you have any more questions, I'd be glad to help!

pierre

 

[Denis Kolar]

Like Pierre said, do the research, and if you have time, give him a call. He helped me a lot. Also, I'm open to phone calls (afternoon) if you need help with my limited knowledge :)

Also, just to point out that your pricing for a equipment is a bit low.
You will probably need a bit more money for a 6/6 manual press (at least a good one with micros. Micros are a MUST HAVE option), you did not mention flash anywhere, $5000 for a DTG is a bit low too, and good luck finding an automatic press for $6000 (precision oval excluded).

I'm not trying to brag, just pointing out that your estimated prices are on the low end (really low end) and that is why emphasized in my first post that the most important thing is a good equipment.

[earthdome]

Sorry guys there was a whole list of important equipment I have that I forgot to add to the list .(everything above illustrator/photoshop is what I forgot to add)

 I have updated the list now, And thank you for the offer for assistance !!  I will likely take you up on it !

[mk162]

You can pick up late 90's Gauntlets all day long for $6-$8K

I had a friend that had a Brother GT-541 go at auction for $4k.

The deals are possible, I just hop eoyu have plenty of time to wait and you are constantly scouring the internet and auctions.

Also, Is it possible to sell in the next town over without moving your operation?

I used to sell a lot on the other end of town...it is now saturated with printers and I am glad I don't work there.

[ebscreen]

Looks to me like you're a businessman that just might happen to become a printer.
Nothing wrong with that at all, but I'm the opposite. If I was in your position I would do
what Royster says, because he's right.