Starting any kind of business is exciting. From developing the idea for it, and finding the right place in town for it to buying the equipment and hiring people, this process is indeed something to be excited about. If you were thinking of starting a small printing business, but you do not know where to start, do not worry. Even though opening a business can be stress-inducing, it does not always have to be like that. There are a few steps that you can take to make this process as easy as possible.
6 Easy Steps To Follow If You Wish To Start A Small Printing Business
In this article, you will find a good systematic approach with all the steps you need to take. After reading through all of them, you will know exactly what to do to make opening up a small printing business easy.
1. Have a plan
As for any other type of business, when opening a small printing business, you must have a well-defined plan. Some of the things you need to think about are what the starting and the ongoing costs are going to be.
Think about what are going to be the prices, who is your target market, and what the name of your business will be. Of course, all these things are a bit more complex but do not worry. Below, you can find each of them explained in detail.
1.1. Estimate your starting costs
The costs of your printing business will have a few parts. First of all, you will have to think about the location of your business and the cost of the rent. Of course, you have the option of starting at your home as well.
But, if you decide to rent a place, you will have to take into consideration how much it will cost you for the first few months and whether you can afford it until your business grows a bit.
Another aspect you need to think about is of course – your equipment. Think about which copiers you are going to get. Are they going to be Toshiba Copiers or some others? How many of them does your business need?
Apart from that, you have to think about the computers and the software needed along with the equipment. And of course, to help your business grow, you will have to invest in a website and marketing materials.
1.2. Estimate your ongoing costs
It would be lovely if the only costs were the starting ones. But, in the printing business, there will always be some ongoing costs. These include the monthly subscriptions to design software, maintenance, and replacement of printers, material, insurance, and payroll costs. So, when making a financial plan, do not forget about the things you have to pay every month.
1.3. Determine your target market
Depending on who your target market will be, some things in your business might vary. Your marketing strategy nor your prices will be the same if you want to work with businesses and if you want to work with individuals.
1.4. What will be the prices?
To do a good job estimating your monthly costs and the growth of your business, you must determine your prices. Think about your target market and what they are willing to pay. For instance, if you want to work with a large business, they might want things done in bulk, and therefore expect it to be a bit cheaper. Of course, make sure that you compare your prices to others so that you know how much you can charge.
1.5. The name of your business
Choosing the right name for your printing business might sound more simple than it is. This process can be quite challenging, but it is important to really think about what the name is going to be.
Make sure the name is catchy and that it is not too hard to pronounce. You might even want to opt for a fun unusual name, to catch people’s attention. And of course, before making it official, make sure there is not a business with the same name near you.
2. Form a legal entity
Types of legal business entities one can establish are the sole proprietorship, limited liability company (LLC), partnership, and corporation. When you establish a legal entity such as LLC, you will be protected from being held personally liable if someone sues your shop. So, to protect yourself and make sure you do not have any problems of such type, make sure you get this done.
3. Register for taxes
Depending on the type of business structure you choose, you will have different options for how your printing business will be taxed. For instance, if you choose LLC, you might benefit from being taxed as an S corporation.
Pay attention to specific taxes that might apply to your state. Of course, if you do not know too much about this, make sure to hire someone to help you, so that there are not any legal issues afterward.
4. Open a bank account
To protect yourself, you must use dedicated business banking and credit accounts. If you mix your business and personal account, your assets, such as your car and your home are at risk if your business gets sued. Additionally, opting for a business bank account can allow you to have higher lines of credit and better interest rates. Moreover, tax filing with this type of account will be a lot easier.
5. Establish business accounting
To understand the financial performance of your printing business, you must record all the expenses, as well as sources of income. By doing so, you will have a clear picture of how your business is changing or growing, as you change certain things.
After a while, you will know what works best, and what things you should avoid. Moreover, when you keep a detailed and accurate account, your annual tax filing will not be complicated.
6. Get all the permits and licenses
Even though it might be too much bureaucracy, getting all the necessary licenses and permits is still crucial for a business. If you fail to acquire all of them, you might face serious fines, which can even lead to your business shutting down.
Starting your own business can be quite demanding. But, if you have a clear structure on how you should do it, it can be a lot easier. Remember to have a clear plan for everything, to form a legal entity, register for taxes, and obtain all the necessary licenses and permits. And of course, make sure you get a separate bank account for your business and keep track of your finances.