Advice on Starting Over

[grafixemporium]

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.

The 10k is a generous estimate and includes two salaries. Realistically I'm not going to draw a salary. And the guy helping me is not doing this for the money... at least not right off the bat. He's willing to sacrifice a year of his life to be successful down the road. I'm not going into this empty-handed. Actually, I will have about 6-8 months -- if I don't make a single penny -- to survive.

How do you propose I successfully do this without equipment? How many new businesses pay cash for all the start up equipment?? I'd guess not many. My In-laws have 2 manual presses that were bought used and paid for with cash, but their automated press is leased... and they're doing fine.

you mention the plan but not your experience with graphics, layout, software, machines, application, etc. It's not that easy.

Sorry, I figured that was a no brainer. Surely, I wouldn't get into this if I didn't know what I was doing. I've been a graphic artist for over 15 years and used my skills in a variety of different arenas.

It all began for me when I was a teenager playing in various bands around town. I learned Photoshop for the purpose of making flyers and newsletters. Later on, I got involved in IT for a few years. While working as the GM of a local computer store, I was exposed to the world of advertising. Without any real book knowledge, just using common sense and logic, I produced a series of print ads, brochures, pricelists, signs and banners for the company over the 4 years I was there. That company was eventually sold to another IT consulting group and I left. I went back to school and earned my Bachelor's degree in Marketing. From there I began working for ad agencies around town doing mostly design, copywriting and media planning. Over the last 5 years, when the screen printing shop was busy or when I was in between jobs, I worked there learning the craft. I've done quite a bit of vinyl work for them.

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

Good question actually. The idea has been discussed... openly and honestly... and the open warehouse space has been offered to me for free to help start the business. Let me answer this with a list of pros and cons...

PROS:

• Free Rent
• Large open Workspace
• Free Rent
• Free Rent

CONS:

• Space is unconditioned. $30k worth of printing gear should probably be kept inside... especially in our 100+ degree summers. Sure I could probably build an office, but it's not ideal.
• Officing there would take away all my screenprinting sales potential. That's a significant part of my initial revenues starting out... effectively cutting my business plan in half.
• There is a retail sign shop directly across the screen "SignsByTomorrow" with a very visible retail store front.
• It's the In-Laws. I love them... but I don't want to do anything to jeopardize our relationship. It can (and has at times) made things awkward for my wife.

I appreciate all the responses! I wasn't expecting so many! This is all very thought provoking.

 

[Bigdawg]

I did it... marketed as a small business resource center - only difference from you is we did screenprinting inhouse. Signs were secondary - started as a graphic design business.

There's a lot to learn when you do everything - and a lot of mistakes. Biggest is getting the pricing down to be competitive but not selling yourself short. Many times I thought I made money on a job and then added up the numbers and saw that i really didn't. Key is watching every little thing. Not just the money, but management of the company as a whole. One typo on a subbed-out product and you've lost money on the job.

Networking will be important for your business model too. Not just relying on the walk-in business. If you want to be a full-service center for small business (which is what we tried to be), you have to make those contacts outside the office - which means you'll be out of the office more than in. It is very difficult to get out there and market yourself when there are designs to get done, or banners to be made. A lot harder then I thought it would be.

Our storefront is closed now (although we retain the lease on the space) We still do some work for old customers, but are on hiatus from running a storefront. The last big pitfall you need to watch is the one we fell into. When you are a small family business one disaster (health or accident) can shut you down if you don't plan carefully in the beginning. We didn't (mostly because I never dreamed I'd actually make a living at it!!) and that's what bit us in the butt when hubby had health issues and couldn't screenprint anymore. Make sure you have people who can back you up - and then back up of the back up.

I know the model can work and I'll be trying it again myself - there's a lot of money in dealing with everything a small business needs, but price is ALWAYS a factor for most of them. Good luck to you.

 

[grafixemporium]

Thanks a bunch Stacy... I appreciate your thoughts. It sounds like your business model was a lot like mine. I do plan on "pounding the pavement" quite a bit. I'm also looking into joining various small business groups in the area such as the Chamber of Commerce, etc. Networking is the key!!

I'm sorry about your setback and your husband's health. It's something I'm definitely thinking about... and have thought a great deal about as it relates to my in-law's screen printing business. I will definitely look to start grooming a replacement sooner rather than later. That's one thing that many small business owners forget to consider in the beginning... an exit strategy. The reality is, we aren't going to be around forever. We have to consider how that will affect our businesses and how will that, in turn, affect our families. So whether you plan to sell your business or groom someone to take over when you are ready to step back, you have to at least take it into consideration in the beginning.

Glad to hear of your success. I hope you can get back to it soon!

 

[OldPaint]

$10k for 8 months is $80,000.00 the way i do math.
if i had $80k...i sure as hell wouldnt be in this business........and i been at it since 1985!!!!
i have seen PROFITS dwindle to almost non existance with the advent of PRINTERS who think as long as they keep the machine running for $2 sq ft they make money!!!!!!
plus the CRAFTSMAN
aspect is not here anymore. like you ponit out anyone with no ART but pocket full of cash can get into this business now...AND THERE PROFITS are now so small seems to me ....a lot more hours, materials, and expensive equipment to make little money. what sence does this make???
$80,000.00 if i had it......you would make more return on your money in shorter time by building a RENT A STORAGE SPACE.....

 

[grafixemporium]

$80,000.00 if i had it......you would make more return on your money in shorter time by building a RENT A STORAGE SPACE.....

Man, you sure sound jaded in your message. Sounds as if you don't enjoy what you do. If you don't enjoy it and you're not making a good living at it, perhaps it's time for a change?

Remember, if you do what you do well... with a smile on your face... at a fair price... and you're honest and ethical about it... you are already running a business better than 90% of the people out there.

I'm not sure how real estate is in Florida, but I can tell you that Houston is probably one of the best places to buy property as far as bang for your buck goes. But I assure you, $80k isn't even gonna get you a nice piece of commercial real estate around here. Thanks for the idea, but I think I'll stick to my original plan.

like you ponit out anyone with no ART but pocket full of cash can get into this business now...

I pointed that out? When? Where? Please don't misquote me or put words in my mouth. I never said any such thing. And are you suggesting I have no artistic background or abilities? How do you know that? I've been a graphic designer for 15 years. Let's be realistic here... if I had a pocket full of cash, I'd be doing whatever I did to get that pocket full of cash... not trying to start a new business.

 

[SignManiac]

Another important thing to consider. You need to develop a strong portfolio of exceptional work if you want to compete with other shops. In some cases that can get make the difference between getting the job or not regardless of price.

Not sure if you have one already to start with but even a collection of fictitious sign designs can help show your skill level. Although having done real signs locally will add to credibility.

As they say, A picture is worth a thousand words.

 

[jiarby]

either way...
Good Luck! Make sure your shop in Houston doesn't flood when it rains alot. Sounds like you have alot more going for you than most noobs that come here with their Cricuts!

Product diversification is a good thing.

 

[grafixemporium]

Another important thing to consider. You need to develop a strong portfolio of exceptional work if you want to compete with other shops. In some cases that can get make the difference between getting the job or not regardless of price.

That's a great tip Maniac. I've got a page on my website (that I'm still building) for a photo portfolio. I've got a pretty good foundation of signs and vinyl I've done while working at the print shop I can use to kick start it. I've also designed a billboard or two while working in the advertising world.

 

[grafixemporium]

Product diversification is a good thing.

I think that's a pretty solid statement. Whether it's signs or anything else, I think a lot of businesses shoot themselves in the foot by not going for the easy money to supplement your main source of revenue.

 

[Air Art Girl]

In your first post, you didn't reveal your entire background. Now that you have explained your experience, sounds like you have an understanding of the industry. Still..........starting out, I would take advantage of your in-laws 2000 sq ft and start there before jumping into a long expensive lease. Establish some good local clients, do your networking, find out what need in the community your customers want. If the in-laws have been around and have a good reputation, that will help. The expenses will eat you up if the clients aren't there.

 

[OneUpTenn]

I wish I would have started this 10 years ago!