maynemag,
We used to primarally be an offset printing company, but the offset printing industry is slowly declining and has been for years (recently it was listed as one of the top 10 ENDANGERED industries. So I had a buddy I had been doing business with for years, he owned a screen print shop and offered to sell it to me (owner financed). Seemed to be the property thing to do, timeing was right as I was nearing completion on our new building and we were going to have extra space. I jumped on it, seemed like making dollars per item we print instead of pennies (like in offset printing) would be terrific.
Now I regret ever doing so. I soon realized that screen printing is the bottom of the barrel in the graphics industry. Sucky work, sucky customers, sucky profit. But after moving to our new building, we had lots of customers asking for signage. We purchased one of those great Master Cutters off ebay, and added signage to our product line. That was OK, I wasted a heck of a lot of time and vinyl learning to do it, but I really needed the additional revenue. After about three years of using the cheapo cutter, I decided to purchase (business lease) an additional cutter (professional quality this time) and a Muto printer and a laminator ($23K for the combo deal). I then invested several thousand more into additional substrates and materials.
This time our expansion went much better, I love doing the digital thing, much better than screen or offset printing - in profit and in cleanlyness.
Straight up, it is wise to expand your business, and you will like the sign industry much better than screen printing.
But, all these "pros" are right about the money. It is going to be an absoulte nightmare without a $25,000 or more investment. I leased our equipment, first and last months lease up front as a deposit, and 58 more payments of $530/mth. We are not big time sign guys like most of the guys on this forum, but our sign equipment pays for it's monthly payment every couple or three days.
This morning a preacher walked into our shop, placed an order for two (identical text only) banners, we spent less than an hour total customer service and art and production time for $200. Shortly after, I spent a hour and 15 minutes discoussing the details of a screen printing job with another customer, ultimately he said he couldn't afford our price for the 20 shirt order, and left.
Simple banners and signs are much more profitable than screen printing, and generally you have a higher quality customer and more satisfying customer encounter than with screen printing.
Assuming that you can prove to a leasing company that you already have enough positive cash flow that you can make the payments, assuming you have decent credit (dont have to be perfect credit, just decent, like a 640 score or higher), you can likely use the $3k as a deposit to get the lease, and you can likely negotiate some supplies and software as a throughin in the deal.
So the skinny is:
1) they are right, trying to start a sign shop, even in a small way, on just $3k investment in equipment is going to be a nightmare.
2) they are wrong, $3k can get you in the sign industry, with some additional financing, and you, as a graphics professional, can learn the skills to be sucessful.
3) wraps are very very very difficult, we have done a couple of partial wraps, but I no longer solicit for that type of business. To be profitable you really would need to hire someone with a lot of experiance. Even with my two partial wrap jobs, I got an experianced freelancer to help us out. forget wraps for now (maybe later after you have more experiance), and concentrate on lightweight signage and banners.