# How does this business model sound?



## ImprintSC (Dec 28, 2007)

I have years of experience selling printing along with promo products and wearable items in the B2B market. I am now considering starting my own business and would be interested in how this model sounds to viewers. 

Model: Use a retail location (above avg site but not inside shopping mall) to promote/display promotional products, screen printing, embroidery, signs, and banners. Sales would be made through this retail location as well as by making outside sales calls. My market would be a mix of past B2B customers that I already have contacts with, sports teams, walk-ins (small business, personal, other), small college sales (clubs, Greeks). 

Primary Equipment: SWF 4 head embroidery machine (dual function style), DTG HM 1 Kiosk printer, 24” vinyl cutter/plotter, heat press, mug press, etc. Why this? SWF machine would be large enough to handle nice sized jobs as well as flexible enough to handle 2 jobs simultaneously. DTG printer: I plan to contract out large screen print jobs and run all others on the DTG (hope this would simplify operations in shop and reduce environmental concerns). 

Personnel: ME (sales/operations/ETC), a manager (all equipment), other person (full/part time). 

So, I am interested in anyone’s comments/suggestions. Thanks!
TH


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## TahoeTomahawk (Apr 12, 2006)

The only problem you may run into in a smaller location is the pre-treating area. When we were in a smaller area, we pre-treated outside. Now that we are in a larger area, we built a separate room to do pre-treating.

Business model is good though!


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## ImprintSC (Dec 28, 2007)

THANKS for the feedback. I have my eye on a very good and affordable spot that is around 2000 sq ft which would easily allow for some extra space. I'll keep this in mind. 

I have also thought about adding traditional screenprinting at some point instead of outsourcing this part IF volume, etc dictates this. I just thought I would not start this way in the beginning as to keep things a little more simple and something that "I" might be more capable of mananging. 

TH


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## kriscad (Dec 18, 2006)

I think its a great idea if you outsource your screen printing and embroidery... something like a Instant Imprints. Custom T-shirts, Embroidery, Banners & Signs, Screen Printing, Tshirt printing, custom design tshirts.


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## ImprintSC (Dec 28, 2007)

kriscad said:


> I think its a great idea if you outsource your screen printing and embroidery... something like a Instant Imprints. Custom T-shirts, Embroidery, Banners & Signs, Screen Printing, Tshirt printing, custom design tshirts.


Very much so . . . in fact, I came VERY close to buying into this franchise. Why not? The franchise fee, markup on equipment package, and ongoing royalties seemed too much for "me". Already having years of experince "selling" most of these items, I didn't feel that this was the best move for me. I also wanted the flexibility to sell other things if I desired to do so (business printing, vertical markets through a website, etc.). I am hopeful that I can get start up assistance/training from vendors and hire the right people along with my capabilities. 

One note: I do not plan to outsource the embroidery work unless it is in very high volume or something that cannot be done in-house. 

Thanks.
TH


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## screenprinter1 (Jan 5, 2008)

If your specialty is and has always been selling, then I would focus primarily on that. It's good to be able to do a few things in house, but many of the processes you are describing can get very technical. You may find that over time you are spending too much time trying to figure it out, and not enough time selling which is where you will make your money. I deal exclusively with brokers who sub out their screen-printing to me, and most of them are extremely successful because they focus on what they are good at which is sales. When I first bought my company, we also did embroidery, and I ended up partnering with another embroidery company that had been doing it for years. The reason I didn't continue to do it was that I found that I was spending too much time trying to figure it out. My quality was mediocre at best, whereas on the screen-printing side we were doing absolutely awesome because of my years of experience. 

Now that's not to say that you can't do it, and that you might not find some success, but I just think you will be more successful in the long run sticking with what you are best at and teaming up with those who have been doing this for a long time. I see so many companies like the one you are trying to start who make a living, but just barely.

Matt


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## ImprintSC (Dec 28, 2007)

I appreciate your comments and think they have a lot of merit. Selling has been where I have had my most experience, but I am a very detailed oriented planner and manager. I am hopeful that this attribute will be helpful in my success. 

My goal is to find a good lead/manager type empolyee with experience with equipment/graphics. They along with various supplier training could help to ensure that I am capable of running all the equipment as well. Eventually, I would like to be expand and hire 1 or 2 people to assist with additional sales. 

Thus, I do see myself being very involved with the sales/marketing side and allowing another employee to be more responsible for production. 

Thanks. TH


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## karlking85 (Sep 26, 2007)

It sounds like you know what you want and are headed in the right direction. You have a good head on your shoulders, and I think your sales experience will definitely go a long way toward establishing a solid customer base.

Good luck to you.


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## ImprintSC (Dec 28, 2007)

Hey thanks. Doing something new, never allows you to "know" what is right or not, but I have given my plans/thoughts MANY hours of thought. I appreciate your comments. 

One of the concerns in my plans is using the DTG printer in place of having in-house screenprinting. Like I said, I will still try to contract out certain jobs (ie. 500 1 color black ink t's), but the bottomline is that I am looking to the DTG to be my in-house machine for t-shirt printing. I am sure I will use it at times where screen printing might be a better choice. However, if I run a job of 100 black ink shirts on my DTG equipment, I should still come out better than trying to contract this out. 

Thanks for your input. TH


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## karlking85 (Sep 26, 2007)

I am anxious to learn more about DTG myself, as I've never used this method before. Please let us know how it all turns out, okay?


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## kriscad (Dec 18, 2006)

ImprintSC said:


> Very much so . . . in fact, I came VERY close to buying into this franchise. Why not? The franchise fee, markup on equipment package, and ongoing royalties seemed too much for "me". Already having years of experince "selling" most of these items, I didn't feel that this was the best move for me. I also wanted the flexibility to sell other things if I desired to do so (business printing, vertical markets through a website, etc.). I am hopeful that I can get start up assistance/training from vendors and hire the right people along with my capabilities.
> 
> One note: I do not plan to outsource the embroidery work unless it is in very high volume or something that cannot be done in-house.
> 
> ...


You should call me sometime to discuss this...

We came very close to opening up satellite locations.


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## ImprintSC (Dec 28, 2007)

ImageIt said:


> The plan seems to be an expensive one. How many month of buffer will you have, should money not start flowing in immediately?
> 
> fred


Expensive? Yes. However, I belive my business model requires much of this. My number 1 market will be the B2B customer - small to large. With a convenient retail face for the business, I expect to attract the smaller customer as well as small walk-in consumer jobs. To attract the "larger" jobs, I plan on making sales calls to former customers, friends, etc. The "store" will also allow the B2B customers to fill like the business is "real" and substantial. (The store layout will encourage those who visit to look at promo products, etc in an professional environment, hopefulling adding to sales.) Perception to the B2B customer is very important. I realize that I will also need to back this up as well. 

In order to attract the B2B customers, I want to be able to look and operate as professionally as possible. This will not be a part time job but a full time job for me. I am fortunate enough to have enough money to get things going along with very good credit plus a working spouse to fill in the gaps. My current plans show me not making a profit until the 2nd year so I am aware this model may take some time to pay for itself. However, in the long run, I am hopeful that it payoff handsomely.

Thanks for your input.
TH


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## karlking85 (Sep 26, 2007)

You definitely know what you are doing. Excellent game plan.


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## ImprintSC (Dec 28, 2007)

Majority from field sales? Not necessarily. I want to be able to make sales calls on the businesses that require so. However, I also want to be convenient to the sports teams, church groups, and small businesses that ride by during lunch or before/after their work and say . . . "ah, there's that place I heard about. I think I will stop by, etc." 

Some of the franchise models suggest locating in high end strip malls with rents in the mid $20's sq/ft. This is not exactly what I have in mind. I missed a recent opportunity to have about 2000 sq ft 2 doors down from an Office Depot (ie. business shopper) at $2K/mth. Location is extremely important, but I am not looking for the mall crowd. Another location that I have my eye on is about the same price in a strip plaza for close to the same price and is about 150 feet from a busy Post Office. 

I don't see an office space as unprofessional; in fact, another place I am looking at is a mix of office and commercial space - traffic not quite as good. I'm not looking at anything even close to $5K/mth. Currently (but could change), I am not looking a 100% commercial place to screen print since my initial thought is to outsource traditional screen printing. 

Thanks.
TH


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## ImprintSC (Dec 28, 2007)

I am in no way suggesting NOT making sales calls. I have been doing so for the last 20 years (printing, promotions, wearables) for a distribitorship. I am suggesting that some types of entities require more regular, consistent contact. No one is going to "sit in a store" not doing something. My plan has me making calls and 1 to 1.5 other people "inside" hopefully involved with production, waitng on customers, etc. 
TH


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## karlking85 (Sep 26, 2007)

What happened with the space near Office Depot? That sounded like a really nice location, and pretty decent price.


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## tim3560 (Jan 7, 2007)

What's the rush? Why do you have to get all of that equipment at once? You're talking about a lot of equipment with a lot of learning curve. I was very excited and jumped into sublimation. Then I found out that my market wouldn't support it. When I went to screen printing and embroidery I took orders and outsourced for about a year before I got an 800 sq ft store and a single head embroidery machine. 4 months later I feel completely comfortable with taking jobs for embroidery, but I'm still learning new things every day.
The DTG shouldn't be taken lightly either. There are plenty of horror stories you can read on these forums. If you take on the DTG, you'd better be ready to devote the time to learn it. And not just have a dedicated employee to learn it and be the sole person responsible for it in your shop. What happens if you've promised a 50 shirt order on Friday for an event on Saturday and your employee calls in sick that morning?
If you take on all of the equipment you've mentioned, forget about outside sales, you won't have any time to devote to that.
By all means, follow your dreams, but take the time to invest in learning EVERYTHING yourself before you pass anything to employees.
I'm not trying to bad mouth your idea. If you had had experience with these machines in a different shop that would be one thing. I just hate to see someone invest $40K in equipment and rent and not be able to support it.


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## karlking85 (Sep 26, 2007)

With the exception of the DTG I don't think that is too much equipment to learn. And if he mainly plans on having a manager and one or two associates, those associates can focus primarily on sales in house while the manager can focus on the equipment with a higher learning curve. And why couldn't the sales staff learn to use the easy stuff like the heat press and mug press? I'm not saying they would learn it overnight, but it isn't that complicated really. 

The DTG can be trouble in the beginning, but perhaps he can find a manager that has prior experience with such equipment...wouldn't hurt. 

Oh well, just a thought...


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## tim3560 (Jan 7, 2007)

karlking85 said:


> With the exception of the DTG I don't think that is too much equipment to learn. And if he mainly plans on having a manager and one or two associates, those associates can focus primarily on sales in house while the manager can focus on the equipment with a higher learning curve. And why couldn't the sales staff learn to use the easy stuff like the heat press and mug press? I'm not saying they would learn it overnight, but it isn't that complicated really.
> 
> The DTG can be trouble in the beginning, but perhaps he can find a manager that has prior experience with such equipment...wouldn't hurt.
> 
> Oh well, just a thought...


Again, my main thought is that he doesn't get forced out of business by his expenses before he has the chance to prove himself.

If it were me, I'd go with one thing at a time, but he may be a very technical person that could learn extremely quickly. So lets go with the best case senario that he learns all his equipment after about a month and all goes well. We have NO idea how much capital he has to deal with. I'm assuming that he's taking out a loan to pay for all of his startup.
The equipment alone in this situation in lease payments will likely be over $1,000 per month. Rent is $2,000 per month. 3 employees will be around $3000 more per month if he only pays them $10 per hour. I doubt he can find someone with prior experience that will likely take a pay cut to come work for a new business. Realistically, this "manager" will probably want around $25 to $40K a year to take on that kind of responsibility. $25K makes it around $12.50 per hour which will run him $2,000 per month on that one employee. Utilities for that size shop with that much equipment would put him from $150 to $500 or more especially in the winter months. Internet/business phone will be around $120 per month. Best case, I see him starting out with about $8,300 per month of pay out regardless of sales.
It all adds up, and if he can't devote the time to sales, and doesn't want to spend more money on advertising and marketing, where will the money come from.
Start small, work up with the capital that you build, not with the capital you hope you'll have.


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## ImprintSC (Dec 28, 2007)

Too much too soon? Possibly, but I don't think so. I have based part of my model decision on my 20 years in the printing and promotional product market and what/who my local competition does/is. Also weighing in on this is my 2 year research at looking at doing this as a franchisee with Instant Imprints. I liked the Instant Imprints model but did not think "one size fits all" thus the reason I have tried to do something a less labor intensive and scaled back a bit to allow me to grow into it. 

Could I reduce the equipment startup? Yes, but I think I can actually do "more" sales with more equipment. What I mean is that I would have 1-1.5 people in the store primarily as production people. I would expect to be in the store possibly 1/3rd of the time and the rest of the time selling. Yes, less equipment is possible, but I think 1 high quality embroidery machine, a higher end DTG, and other basic equipment is not too difficult IF I FIND the right people and cross train as well. If I include in house screen printing, I fear minor environmental concerns, more uniquely trained employees needed, larger space, etc. 

Having already sold much of this for 20 yrs, I know that some of my customers will immediately transition their business to me. This will surely help in allowing me to get sales started in a positive direction, but I am still making conservative projections on my sales in year 1 as I want am sure things will move slower than I anticipate. 

One fear that I have in reducing the amount of equipment might be that it would be even harder to justify 1-1.5 staff. Why do I want a small staff? This would allow someone to answer the phone, process an outsourced order, work production, etc. while I make sales calls. 

Thanks to ALL for your comments. Keep them coming! This is VERY helpful to me.
TH

_P.S. The space near Office Depot is gone (for now) - too bad._


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## tim3560 (Jan 7, 2007)

ImprintSC said:


> Too much too soon? Possibly, but I don't think so. I have based part of my model decision on my 20 years in the printing and promotional product market and what/who my local competition does/is. Also weighing in on this is my 2 year research at looking at doing this as a franchisee with Instant Imprints. I liked the Instant Imprints model but did not think "one size fits all" thus the reason I have tried to do something a less labor intensive and scaled back a bit to allow me to grow into it.
> 
> Could I reduce the equipment startup? Yes, but I think I can actually do "more" sales with more equipment. What I mean is that I would have 1-1.5 people in the store primarily as production people. I would expect to be in the store possibly 1/3rd of the time and the rest of the time selling. Yes, less equipment is possible, but I think 1 high quality embroidery machine, a higher end DTG, and other basic equipment is not too difficult IF I FIND the right people and cross train as well. If I include in house screen printing, I fear minor environmental concerns, more uniquely trained employees needed, larger space, etc.
> 
> ...


I hope that you succeed. How do you plan to cover all of your costs?


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## screenprinter1 (Jan 5, 2008)

I think you are receiving some very good advice. There are many good concerns that have been brought up as well. I think we all want to see you succeed. I have worked with nothing but promotional sales guys for a long time, and one thing that most of them consistently do is underestimate how much time and how big the learning curve is for each process that you are talking about. One of the posts talked about the type of individuals you could get as managers and how much they might cost if they have experience. He is exactly right. Keep in mind that at $10.00 an hour your labor force will consist of mostly students who have no prior experience. 

I think the main question you need to answer, is will the customers you currently have accept mediocre products and if so for how long. They may carry you for a little while, but a year is an awfully long time. You will find it very difficult to to only spend 1/3 of your time selling. 

With a franchise you are also getting all of their technical support if they are any good. 

How good are you at Photoshop and Illustrator? Troubleshooting computer/printer problems? Can you digitize for embroidery, if not are the people you are subbing to any good? 

Matt


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## karlking85 (Sep 26, 2007)

I agree with one more thing you said-with less equipment, you will likely take in less sales. Now I have to admit your startup plan would make me nervous if it were me in the same position, only because I am more conservative in my investments, but for you, I see it working out in the long run. You are very confident in yourself and your experience, that's a plus. You are an excellent seller, plus 2. You apparently have a steady flow of startup capital to float you through the beginning, plus 3. 

Do you have enough to go at least a year without realizing any profit? From a post you made earlier, it sounds as if you do. Your plan is on a grand scale to some of us, I'm sure, I know it is to me. But at the same time, others would still consider it small potatoes (Trump Tees anybody?) 

If you can handle a serious cash crunch, and can consistently convert new and existing customers, then I think you'll do fine. Better than fine actually, if you are able to fully utilize the equipment, you will be running rings around the nearest competition. 

Best of luck man.


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## tim3560 (Jan 7, 2007)

karlking85 said:


> I agree with one more thing you said-with less equipment, you will likely take in less sales.


I disagree completely. You might take in less money in gross sales but you'll have less costs in equipment. If you have the embroidery machine and the vinyl cutter and heat presses, but contract out the dtg and screenprinting, doesn't that give you more time to devote to sales? You would also have plenty of equipment to make money with. Once you build up clientele and capital, then worry about getting more equipment and another employee.
Or keep the dtg and heat presses and vinyl cutter and farm out the embroidery. there aren't enough hours in the day to run all of those machines and do sales.


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## binki (Jul 16, 2006)

I would scratch the DTG and 24" plotter and get a 54" solvent printer/cutter. Way more profitable and much more versatile and it can do shirt material. If you do any volume at all in tshirt then you should probably go to a multi-color full auto screen print setup. DTG is sexy but you can get double the screen print equipment for the same price as a DTG that does the same volume. 

Don't know your location but in SoCal a dedicated sales person in this space can average $100K or more a month in gross sales. That is enough to support about 5-7 full time people.


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## karlking85 (Sep 26, 2007)

tim3560 said:


> I disagree completely. You might take in less money in gross sales but you'll have less costs in equipment. If you have the embroidery machine and the vinyl cutter and heat presses, but contract out the dtg and screenprinting, doesn't that give you more time to devote to sales? You would also have plenty of equipment to make money with. Once you build up clientele and capital, then worry about getting more equipment and another employee.
> Or keep the dtg and heat presses and vinyl cutter and farm out the embroidery. there aren't enough hours in the day to run all of those machines and do sales.


 
Well, I won't disagree with that. However, I never said that he should keep ALL the equipment in house (or at least, that's not what I intended) The screenprinting should be outsourced I believe, and the DTG is something I know very little about. I know that they can be troublesome, but the owners I have spoken with that have mastered the equipment have been very satisfied with their purchases.


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## tim3560 (Jan 7, 2007)

karlking85 said:


> I know that they can be troublesome, but the owners I have spoken with that have mastered the equipment have been very satisfied with their purchases.


That's correct. Those that have devoted the time to learning their machines inside and out, and haven't recieved a bum machine, can achieve and have achieved great results. I work with a member of this forum that has given me t-shirts with great looking results. I doubt that he has much more equipment than his computer/software and his dtg, let alone all the other equipment in question. It's just rediculous to think that you can just spend a bunch of money and start turning a profit the second you open your doors. The kind of money that this startup is going to require to pay the bills, realistically won't happen for at LEAST 6 months, I'm thinking more towards a minimum of a year.


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## PeteB (Oct 10, 2007)

there is no guarantee that your business will be successful, but your model is OK. 

please carefully watch your cashflow as you are not expecting to turn a profit immediately. 

watch your sales, and ensure that they build as per your model's monthly plan. my thought is that if you are a "natural" salesperson you can't help but succeed.


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## sunnydayz (Jun 22, 2007)

I would suggest one thing and that is that if you purchase the HM1 and embroidery machine, SWF has a great training program and they welcome you to bring your employees as well to a full day of training. I think this would be very bennificial to you to do. When I went to the training for my machine when I bought it, there was a company of four employees there and they had no idea what the machine even did. My advice would be to find your employees first and make them learn everything there is to know about the equipment before you even buy it and then make them go to the full day training so that you can feel confident leaving them to run it while you are not there.

There was a post awhile ago about a guy who left his employee there to run his new machine only to have the employee fill his white ink with pretreatment instead of ink, very costly mistake


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## ImprintSC (Dec 28, 2007)

I've been away for a few days and unable to reply to all the comments, but WOW - thanks for keeping this discussion going. To respond to a few things: 

I do appreciate the caution toward doing too much at once and all in the beginning. (You should see my original model - much, much larger). As said before, I come from a "distributor" background doing more than $16MM a year in sales with multiple offices. Sometimes that makes me want this to be a little larger/faster. 

I do not expect to be making a profit until early in my 2nd year and have been planning for such (hopefully sooner). I have tried to estimate my 1st year sales to being similar to what I was selling to my customers (although I believe it will be larger since I was also competing with several salespeople in my own company for customers). Yr 2, I am expecting to have most (not all) bugs worked out and think sales/profits will rise significantly. Do I have tons of money? 

In my equipment choices, I tried to choose items that are "less" complicated or less cumbersome to own/operate. I don't want to imply that a 1 hr training video takes care of this, but I am hopeful that my choices are somewhat easier than others. 

I am looking to the HM1 DTG to bridge my gap to screen printing. I don't want to have the space, environmental, training, etc issues of screenprinting to begin with ("maybe" later when the business is ready, I will be too). I see this unit setting me apart from my competition - can offer short to med run color shirts. This "perception" will be a plus. Not necessarily where I will be most profitable, but a marketing plus that allows customers to see me as being "cutting edge." 

Embroidery: I like the modular design aspect (and $) of the SWF equipment. Here, I might adjust my startup model down to a 2 head instead of a 4. This doesn't change a lot for my training needs, but would reduce my $ needs. 

"I" think my key is not so much in my equipment costs, but in who I find to be an employee/partner. We will can agree that the right people always make a difference. My goal is to find someone with some graphics experience/ability (mine is fair/basic) who (hopefully) has some experience with embroidery machines (or equipment of some type), AND friendly/trustworthy/etc. I think this type of person can learn to operate the DTG (due to graphics + equipment) experience. 

Another reason for my model choice: it is a little different from others. No one in my area operates their business as I am suggesting. Nothing against other choices, but I see my business idea as a way to enhance my customer's BUSINESS, church, ball team, etc. I want to call on customer's and be their assistant with marketing their business, have them come in to a store that is CLEAN and PROFESSIONAL, etc, etc, etc. Some competitors are in dark, dirty, dingy places that are uninviting. 

THANKS to all for their continuous feedback. 
TH

I want it to be a professional "image" place.


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## PeteB (Oct 10, 2007)

how different do you see your model from Instant Imprints or EmbroidMe ?


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## ImprintSC (Dec 28, 2007)

PeteB said:


> how different do you see your model from Instant Imprints or EmbroidMe ?


My model is certainly similiar. I looked at both. I was flown to EmbroidMe HQ (on them) and paid for a trip to San Diego to visit II. I think II is MUCH more B2B oriented than EmbroidMe. Not knocking E, but many of their stores felt more like a "monogram" shop which might be OK, just now what "I" want. 

How different? No $30K+ franchise fee or 6%ish royalties for LIFE, non competes, etc. I truly like the idea of the II model, but I also want the flexibilty of my OWN business. I have not seen the "branding" aspect with either of these make much of a difference. 

Cannot remember as much about EmbroidMe, but II has a 4 head and 1 head embroidery unit in their standard package along with traditional screen printing equipment. 

Thanks.
Tim


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## PeteB (Oct 10, 2007)

excellent Tim. you've done your homework. as i said before, just watch your cashflow, i'm sure you are on a winner.


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## sunnydayz (Jun 22, 2007)

ImprintSC;
I am looking to the HM1 DTG to bridge my gap to screen printing. I don't want to have the space said:


> I would not under estitmate the learning curve doing DTG, There is alot you will need to train also with the HM1. I think that is what I see the most with buyers of the machines thinking they are simple and then becoming upset when they find there is alot more to the machines then simply printing. I have seen several posts lately where people were under the assumption that they would just buy a machine and it would run when they wanted it to with no other work involved. These machines take a regular maintenance routine and there is alot to learn as with any printing method to be able to make money with them.


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## ImprintSC (Dec 28, 2007)

Sounds like good advice. I will look into this aspect in more detail. Thanks.
TH


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## tim3560 (Jan 7, 2007)

sunnydayz said:


> I would not under estitmate the learning curve doing DTG, There is alot you will need to train also with the HM1. I think that is what I see the most with buyers of the machines thinking they are simple and then becoming upset when they find there is alot more to the machines then simply printing. I have seen several posts lately where people were under the assumption that they would just buy a machine and it would run when they wanted it to with no other work involved. These machines take a regular maintenance routine and there is alot to learn as with any printing method to be able to make money with them.


A lot of that is true with the embroidery machines. I think that should be the main point of this topic. You don't just open the box and hit start on any of these machines. I was guilty of thinking "after 3 days of training on my embroidery machine, I'll be set." I was so mentally exhausted after that 3 days that I didn't touch the machine for another week. I just played with the software and the manual to get a feel for it. 
The other main point is that you're talking about around $100K for startup costs. You need 10% down on your machines, my single head was just over 3K and $350 per month. About 8 or 9 thousand for your rent, lease payments, and employee paychecks. Probably another 1 or 2 thousand to get the shop set up like you want it with fixtures, stations, cash register, paint, furniture. A little on the side for those little mess ups, ex., extra print head, extra ink, embroidery supplies. Inventory for your customers to see unless you just want to slap a catalog in front of them. The rest is back up money for when your shop's income doesn't cover the bills like you expect. This won't be like Wonka's Chocolate Factory no matter what you think. You won't just open the gate to a waiting crowd ready to rush in. If you think otherwise, you're setting yourself up for failure.
The time that you think will be there will not be, at least during startup.


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## TPrintDesigner (Sep 16, 2007)

Instead of taking a chance on this business model, why don't you study what succesful businesses are doing in your part of the world and copy them?

I would spend a little more on the embroidery machine and buy a 6 head. This can still be run by one operator and will give you 50% more production capacity. There is nothing worse than standing around whilst waiting for a machine to cycle.....those two extra heads will easily pay your staff wages by the end of a week.


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## ImprintSC (Dec 28, 2007)

Fancy equipment? Mmm . . . I would rather look at it a different way . . . proper equipment to fit the needs of my market. 

I think what you did is great. It is bright, crisp and clean. One of the things I desire is to make the floor inviting (like you did). I have a "friend" who can do "stamped concrete" that will be relatively inexpensive. In the customer area, I would like to use simple, but nice, matching furnture (table, few chairs, inviting counter area). I would definitely be looking at as many other places and borrow ideas where I can. 

Having "pretty equipment" around is NOT my idea of image. Having the right equipment around is.

Thanks. TH


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## ImprintSC (Dec 28, 2007)

dean said:


> Instead of taking a chance on this business model, why don't you study what succesful businesses are doing in your part of the world and copy them?
> 
> I would spend a little more on the embroidery machine and buy a 6 head. This can still be run by one operator and will give you 50% more production capacity. There is nothing worse than standing around whilst waiting for a machine to cycle.....those two extra heads will easily pay your staff wages by the end of a week.


 
I'll look into the 6 head idea . . . it might be worthwhile. However, I am already getting slammed (politely) about having too much equipment as it is and spending too much money to start. 
Thanks for the input/suggestion.
TH


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## ImprintSC (Dec 28, 2007)

No problem being roughed up a little . . .the business world is no different. You stated: "For someone as concerned about image as you appear to be, i'm surprised you don't have a more definitive plan." True, BUT it is in my plan (about $3300 for a 24" vinyl cutter/plotter, computer, scanner, software). There are other things not mentioned as my original post is about a business model, not the entire plan. 

This is not a debate. I simply was asking opinions about my model. You have clearly made your point and that is fine. However, you keep bringing up mostly the same things implying not how my model might work or not, but my "possible" lack of money, a full plan, business knowledge, management ability . . . enough. 

No hard feelings, but this is no longer healthy. I do appreciate some of your other posts and look forward to reading more in other places. Take care and good luck to you as well.

TH


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## tim3560 (Jan 7, 2007)

ImprintSC said:


> No problem being roughed up a little . . .the business world is no different. You stated: "For someone as concerned about image as you appear to be, i'm surprised you don't have a more definitive plan." True, BUT it is in my plan (about $3300 for a 24" vinyl cutter/plotter, computer, scanner, software). There are other things not mentioned as my original post is about a business model, not the entire plan.


In your business model you never said where the money is coming from. Your original model is a great one for someone with plenty of money that previously knows how work an array of machines, not for someone starting with scratch. We're (most of us anyway) not on this board to attack anyone, but just as I was talked out of a few mistakes, I feel as though we're trying not to let you make any that we can talk you out of before hand. 
When I first started, less than a year ago, I had big ideas of grandeur (sp?) too, and now I have a comfortably stable business with plenty of room to go. One major thing that I underestimated was the time factor. You never have as much as you want. If you are learning, and training at the same time, you will be overwhelmed. Don't think that if you don't have everything in house that you won't get the business. Most new customers go on price and personality. If they have the need and they like you and your prices, you're in. Your previous experience in sales and pre made customer list will no doubt help you get ahead of the game. There is nothing wrong with contracting out, whether it be screenprinting, dtg, or embroidery, so there's just no reason to start out so big.
I don't know you from the next guy but I don't want to see you make mistakes that shut you down prematurely.


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## ImprintSC (Dec 28, 2007)

Money: Still deciding on this. I am fortunate to be in a position to have several options. Most likely, I will either take out a 5-7 year note for most of this OR use an IRA rolled over into a C Corp retirement plan that purchases stock in my "new company" (much more complicated than this, but this is basically how it works). I do recognize that this can almost be a luxury to have funds available. 

I agree on outsourcing many things, especially in the beginning. In understanding and predicting my market, I think there may be a strong benefit to have some of these capabilities "in house". Thus, I have tried to consider what I could put in my model that handles the majority of these things, at least on a small scale. Larger scale - to be outsourced. (In fact, I have already met with my accountant to handle outsourcing my payroll.)

My business plan started out about 2x the size of where it currently is. Talk about thinking big! I do want to use caution where needed, and in all reality, in my model/plan, I do not plan to literally open the doors and have every piece of equipment up and running on day one. At this point, I have no timetable. I am still deciding if "this" is what I plan to do or not. Realistically, I would imagine opening with 1 other employee for a couple of months, add the "simpliest" stuff first, then add either the embroidery or DTG next, then the other - all probably in a 6 month window. (I'm still working this out.) During this period, I would completely outsource as needed. 

Your input is appreciated and respected. Caution and prudence is wise in any business venture. Thanks for your (and others) help along this journey.
TH


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## Give Is To Live (Oct 27, 2011)

Start small said:


> Brilliant.


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