# Starting a Business and Financing Required



## George899 (Sep 16, 2013)

Hi Folks,

This is my first post to a forum so I hope I can do it correctly and not step on anyone's toes. First Query I'm starting a Home Based Business and I'm thinking of using a DTG Anajet Sprint Printer. It costs £8,995 to buy up front or I can lease it for about £360 per month. Which is the better approach Buy or Rent? 
Second Query If I wanted to have unique graphics designed what is the going rate that members of the Forum have paid for the same services. Having gotten and paid for the design of the graphic do you then have to pay royalties? Can you get a buy out from the designer so you don't have to pay royalties? Any advice? Third query how much do you think I would need to start from home and to add a website that can take orders? Thanking you all in advance for your answers. On a more personal note a member "Debiak" responded to my "Introduction" of myself on the Forums and we exchanged a few friendly e-mails to each others private boxes. After 5 messages we were both locked of of further messages to our private boxes. So if anyone is in touch with Debiak or she see this post I haven't forgotten her I just don't know how to contact her again. Any advice on this would also be welcome. Thanks everyone. George


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## Smalldeal (Sep 2, 2013)

Its always better to buy. If you don't have to capital to buy a printer, just lease for a month or 2 and put the profits toward your own printer. By the way, you can always delete your private messages to clear up space!


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## George899 (Sep 16, 2013)

Smalldeal said:


> Its always better to buy. If you don't have to capital to buy a printer, just lease for a month or 2 and put the profits toward your own printer. By the way, you can always delete your private messages to clear up space!


Hi Smalldeal,

Many thanks for your reply. If I outlay the Capital sum for the printer upfront it'll mean my breakeven point is pushed much, much, further down the sales numbers pipeline. I have the capital to buy the printer but I'll also need working capital to pay for graphics, website supplies and e-commerce abilities so I'm unsure how much I'll need for all of that. As far as leasing is concerned I'm located in the UK and leasing is a legal agreement for a minimum of 3 years for a set monthly payment so it's not possible to lease for a month or two. Also I've emptied my private message box and I suspect Debiak has done the same but we still have not been able to contact each other by that means again. Thank you again for your response. Has anyone else got any advice or figures that might help initial business plan, planning etc. Cheers George


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## charles95405 (Feb 1, 2007)

Without answering your specific questions let new give a few observations....
1) buying or leasing a DT G for a home based operation is probably doomed to fail because
Without a store front and customer list you will not be able to sell the number of shirts per day to make a liveable wage..just figure you profit per shirt to see the bottom line.ALL DTG machines require daily use. If you are doing dark, do not pre treat in the same room as the printer.
2) if new to the business you should have cash reserves equal to 6 months operation
3) DTG is not the answer for 50 or more units..for that use screen prints...if photos are the subject use plastisol or transfers from one of our sponsors
4) consider dye sublimation...you can be up and running for less than one month rental or lease of a DTG.
Outsource to start to build a solid customer base

Good luck


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## 4C Print Shop (Sep 8, 2010)

George,

Your only option now is to outsource your jobs. Later you can but your own DTG printer when you have a customer base. Also you don't need a store front to run a successful company


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## George899 (Sep 16, 2013)

Hi MrDean, Nice to meet you. Thank you for your reply. Can you really outsource it all and still make a profit for yourself. I would think if that were possible most other printers would be doing it? I take it that you started without a storefront. How long on average, if there is an average does it take to get into profit? Cheers George


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## charles95405 (Feb 1, 2007)

In my town it would be difficult to run a successful DTG business from home as the amount of trafficmight be in excess of what is permited due to zoning.when starting out and you out source, you will make a profit from the first order. As your customer base grows then you can get the equipment to expand. When I started,I did nothing but sublimation...then later I added vinyl and rhinestones..now I am on my second DTG.. It was not a quick and easy process as I never leased or made loans for equipment.


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## 4C Print Shop (Sep 8, 2010)

George899 said:


> Hi MrDean, Nice to meet you. Thank you for your reply. Can you really outsource it all and still make a profit for yourself. I would think if that were possible most other printers would be doing it? I take it that you started without a storefront. How long on average, if there is an average does it take to get into profit? Cheers George



Yes you can outsource it all and make a profit but it takes some work to find the right DTG shop and yes we still don't have a store front after 3 years and we do more volume than most order fulfillment companies on here. 
As Charles said if you outsource your jobs you will start to make a profit very early but if you decided to buy your own equipment, it will take you about 1-2 years to really get cemented. The other advantage of outsourcing is what if you wanted to change your mind after a year in the business, then the investment would have been minimal.


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## 4C Print Shop (Sep 8, 2010)

Charles,

The Order fulfillment part of the DTG business is way bigger than a lot of us think. Yes, we have the same problems with zoning laws but there are ways around it.


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## VictorConcepts (May 27, 2013)

There are many ways to decorate garments. It does take a lot of trial and error as I've tried tons of new and traditional ways of doing so to offer customers. 

Absolute cheapest to start out with I'd say is Inkjet transfer, but it's not very professional as it leaves emulsion down even where there is no ink. So if the paper is 8.5" by 11" the emulsion that is laid down is 8.5" by 11". 

I have recently taken a inkjet transfer for white shirts for what would have been a 4 color screen print for only 15 shirts and contour cut the transfer with my vinyl cutter to get rid of the excess emulsion. They came out absolutely awesome!! I was skeptical at first but after doing them they came out pretty darn good!

*Next *I'd say Laser printer transfer, most don't have a laser printer at home, so that's why this is second in my eyes. These transfers only leave behind the ink from the print but with my tests on them they do not last long what so ever compared to the many inkjet transfers I have tried. There is also a two step process for dark shirts to semi easily transfer a full color image, but again in my tests it flakes off way to soon for it to be sold professionally. 

*Thirdly* Buy a heatpress for a couple hundred and you can have a local vinyl shop cut you out some high end vinyl transfers if you are only doing a few shirts, or do plastisol transfers for some higher runs. Also you should have one for the inkjet and laser transfers but you can use an iron.

*Finally* Take some of your own time to do some heavy researching. I take a little time each day to do more and more research to better and improve my skills and find some free info on youtube, which is great! Especially to learn how to design yourself, because when I do a company logos or design work I never sell the final design because in my eyes it is worth way to much in imprinting to let go. I charge $100 flat fee and I keep the design and either license it or I do the printing myself for the customer.


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## Printavo (Oct 7, 2007)

You could also be a contractor to build up some cash to buy your own equipment. This would heavily reduce your risk and learn more about the businesses at the same time.


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## earlhines (Oct 1, 2013)

Not sure if anyone answered your other question but no, you will not owe any royalties to a graphic designer who creates your logo. When you pay him, that is your contract to own the design. He creates it for a fee. You pay that fee and the law stipulates it is now yours, 100%. Good luck.


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## 20vK (Jul 9, 2011)

…or you could find a graphic designer who you can work with also wants to get into the business.

Perhaps share the initial costs, work and skills - just a thought


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## George899 (Sep 16, 2013)

Many thanks Earlhines, That's good to know. I want to get some of my own ideas onto a shirt but I've no experience of the business or how it works. Thanks again. George


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## George899 (Sep 16, 2013)

Hi 20vK Nice to meet you. Unfortunately I don't know any graphic designers nor any who want to get into the business. Cheers George


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