Advice on Starting Over

[grafixemporium]

I'm new here, so I thought I'd introduce myself and start out by asking for some advice, opinions, warnings, etc.

I am in the planning stages of building a new business in a booming suburban area of Houston. We will do graphic design and produce signs, banners and custom vinyl in house, while outsourcing screen printing, embroidery and other promotional items. It's important to note that I don't plan on marketing this venture only as a sign shop... I intend to emphasize marketing and promotions to all the bazillions of small businesses in the area. Of course, we'll also take on jobs for individuals, organizations, schools, churches, etc. In a nutshell, I don't want to limit myself to signs and banners. I want to do it all and what I can't do, I'll outsource.

The good news is, I'm not a total newb jumping into something completely foreign. My in-laws own a successful screen printing business on the far north side of town that is busting as the seams since they moved from a warehouse to a retail storefront location 2 years ago. I've worked there on and off over the last 5 years when my own jobs allowed the time. Since the screen printing took off, they were forced to start outsourcing everything else they did... including signs, banners and vinyl applications. This is where I come in. I'll be starting this venture with a somewhat built-in client base. All their sign work, vehicle graphics, window vinyl, etc would come to me. Also, I'll be able to act as a reseller for their screen printing. I will establish my own vendor accounts and profit from the apparel and offer screen printing to customers at the same price as if they were to visit them directly.

I'm looking to rent a very visible retail store front in a very high traffic area. I'll start with the basic equipment... large format printer, cutter, laminator (maybe) and a heat press. Everything else can be done at the screen printing shop. Right off the bat, this is a great deal of overhead. I'm working on startup capital... but I'm most concerned about how long this venture is going to take to become self sufficient.

I will have one employee to start. He will do most of the production and installation while I focus on sales, marketing and design. I'd envision a second employee soon after for answering phones, helping walk-ins as well as other office work.

So, this is where you come in. My main question is this...

For those of you with years of experience owning your own shops, if you had it to do all over again, would you?? Obviously, you love what you do... and that's not what I'm necessarily questioning. I am wondering if most of you are living comfortably and happy. Are you making a good living or would I be better off just going and getting another job working for "the man".

This idea has been burning in me for a long time. Only in the last 3 or 4 months have I started to refine the idea and get it all on paper. The business is registered... I'm working on marketing collateral and the website. So, if you're gonna talk me out of this... you better hurry!

Thanks for listening and I'd appreciate any words of wisdom.

Regards,

AJ
Grafix Emporium

 

[SignManiac]

You're already light years ahead of most sign people. You have experience and understand the industry. I would bet you'll be in the black very soon as compared to most.

When I left New York after eighteen years of making signs, I was starting from ground zero here in Florida. My business grew very fast because I had the knowledge and the tools already. I was told I would not survive in Florida. Well I've grown beyond my wildest dreams with no end in sight.

I say go for it. No balls, no glory!

 

[Samm]

You're already light years ahead of most sign people. You have experience and understand the industry. I would bet you'll be in the black very soon as compared to most.

Agreed...but don't bypass the laminator!!!

As for your question about starting over....I don't print so I'll leave that one to those who know.

But with what I do - I'd jump and restart at the drop of a pin

Welcome!

 

[SignTech]

Welcome ... well you've done / are doing all the homework and creating a business plan. Wow that's amazing .........

You should give it a shot because your business approach already puts you at an advantage ...... I'll be the first to say it's a tough business, unpredictable and tedious ... and to be different than the competition is the biggest part in success ... imo .... we have learned more on s101 than the last 3 years ...... we're still not anywhere ... we wish to be ... but surviving ...

The learning curve for us was/is huge ... but worth it.

Good luck! ~M

 

[jscarl]

You are either one he#$ of a blowhart or you really got your S$%^ together for a newbee. Best of luck young man. And Welcome from Mich.

 

[Big House Signs]

You got it together, man. wishing you much success. Been in the biz for 22 years, on my own for 10...I love it. I own my own home, I have 2 employees this business is supporting, I think we're doing ok. Every year is getting better and better. Come in everyday, get out there and network. And as my Dad used to say, "Throw enough sh*t against the wall and somethings gonna stick".
Good Luck and Welcome to signs101!

Paula

 

[Replicator]

Welcome !

 

[grafixemporium]

A blowhard eh?? LOL!! After all this research and work, if I didn't actually persue this thing, you could certainly call me that

I guess I should note... I've already found a location after scouting and pricing for several months. It's very close to home (another reason I love this job already) and is located at the corner of a major state highway intersection that sees roughly 100,000 cars a day -- ok I got that info from a realtor.

The strip center is privately owned, so I was able to negotiate a great deal on it (although I haven't signed the lease yet). It's $1.50/square foot + elec/water with no additional maintenance fees. That's about half the price of everything else in the area or on the highway frontage road. At 1300 square feet, the space is smaller than I'd like, but I can make it work. The location is the key. I have 2,000 square feet of open warehouse work space I can use at the in-law's shop if I need it for big jobs.

So that's $2000/month in rent... call it $3000 with electric, phones, internet, insurance, etc. I hear most people start in their garages... I want to skip that step... I feel that it would do more harm than good. The $3000 is a huge chunk for me considering everything else I have to buy... but I think the location and visibility will more than pay for that.

I'm also looking at having to lease the necessary equipment to get started. How do you guys feel about leasing? Although, I don't really see that I have a choice. It's a means to an end.

 

[The Big Squeegee]

Welcome From OK
I did a lease. Would never do it again.

 

[Ken]

Yes, it seems you are on the thinking end of things here, and kudos to you for that...
Are you prepared to ride out the start-up phase? 3K rent, leasing costs, payroll. Alot of good plans fail because of under-funding. Wish you all the best.
Welcome from BC.
Ken

 

[OldPaint]

$3000, you better figure $5000 for the 1st couple months ....
permits, deposits, licences, county, city, state..all gona come lookin for their cut.....
i wish ya luck....you might be better off buyin a franchise....there you got people thinkin like you....

 

[grafixemporium]

Oh believe me, I've though about everything... at least twice.

The first month is going to be the killer... in the ballpark of $15k with permits, buildout, lease deposit, furniture, fixtures, materials, supplies, brochures, business cards and equipment leasing.

From there on out I'm figuring in the neighborhood of $10k/month in pure operating expenses including a minimal salary for myself and my employee. So I'd have to do $10k in revenue PLUS cost of raw materials to break even each month and be able to pay my bills at home, too.

Is that realistic? Roughly how much do some of you small shops pull in each month?

 

[Samm]

Silly question time....why not move in with the in-laws?

 

[dman0427]

Hey welcome to the forum, I'm in Houston as well.
If you want to add Sign Letters to your sales (interior/exterior), then hit me up.

I wish you the best with your business venture.

Damon
signsofhouston.com

 

[jiarby]

grafix emporium is not a great name (to me) for a business that wants to

emphasize marketing and promotions to all the bazillions of small businesses

It sounds like a sticker store.

15-20k is not impossible, but it's easier to do if you focus on bigger ticket items. You gotta sell alot of ASI swag to make 20k/mo but only a few wraps or electric signs.

 

[GARY CULY]

WELCOME ...30 years ago when i was an apprentice learning the brush i and even up to 10 years ago ill say id do it all again ...but in the last year or so with the signwriter field becoming so full with"start up newbies" and all the competition ..signwriting would not be my choice for a new venture ..it is more of a commodity [like buying a pair of levi's] than a craft anymore .theres few that can make it starting up now ..there may be a couple things ill chime in on ....dont get your overhead too high..at 3000.00 a moth ,all the materialls you need to stock ..3000.00 worth ,all the machine payments ..plus you dont even know how to run the machines quickly to manufacture ..youl go a couple months just getting a smooth work flow sir...plus you say 100.000 something people drive that road in front of the shop //well dont you think they allready have there own sign shop they do businees with? im saying ,all places have allready gotten work done SOMEWHERE ,so there not just going to "switch" companies so easily ..you may find it a bit hard to find a lot of work too...good luck to you and these men on here will help on bout anything ..most are very good signwriters and well educated in there craft

 

[jiarby]

Gary's right...
watch the expenses like a hawk and realize that every dollar you spend is one you won't have at the end of the year. Think like Monty Hall...
You can have $1000 cash, or behind door #3 is a heat press. With a screener in the family I'd save the heat press money and put it into a good laminator.

 

[Davidson Signs]

So that's $2000/month in rent... call it $3000 with electric, phones, internet, insurance, etc. I hear most people start in their garages... I want to skip that step... I feel that it would do more harm than good.

10 years ago I started out in my parents 2 car garage. We enclosed it, carpeted it, etc and for 3 years it worked beautifully. I did 80% wholesale work to print, trophy shops. Once I got my feet wet is when I decided that I wanted to venture out into the real world.

For me, doing that helped me get established when I opened the retail end of it. I could of moved out long before the 3 years but I wasn't paying rent so I took what I could get LOL

You seem to know what and which direction your headed. Personally since I sold a year and a half ago, I wouldn't do it on my own again. Where I'm located, there is a sign shop on every corner...kinda like 7-11's. Plus I like being on the other end of the spectrum, where I am now. I'm a single mom so dealing with it and doing it all on my own isn't an option any more. I still do a bit on the side, mostly outsource everything but won't get back into it full time.

Good luck with everything. Sounds like you have a good support system and you'll need it.

Oh and welcome to :signs101:

 

[steve b]

10,000 a month in expenses.....I would re-think this whole idea. Forget about the printer/laminator until you can pay for it cash. If you don't have enough $$$ in the bank to ride these bills out for at least 6 months your in trouble. Anyway to scale it down a bit and save $ for this approach?

steveb

 

[Air Art Girl]

you mention the plan but not your experience with graphics, layout, software, machines, application, etc. It's not that easy. Like someone mentioned, there is a learning curve here. Overhead will eat you up while you learn. Just because you have a retail location does not mean you will have work. If you are inexperienced, one bad job will spread by word of mouth faster then any paid advertising will. My advice would be to set up in the back of your in-laws, work off their clients until you learn what you're doing. When you have learned the equipment, production, etc, move to your own location.
It sounds like you have the desire and drive just don't set yourself up for failure by getting in too deep as a startup.