# If you had $10,000....



## ThatGuyWhoPrints (Jul 11, 2012)

I might be getting a loan from a friend. they asked me "if i gave you $10,000 to start your business how would you spend my money?" I had no REAL answer.

So I ask you..
If you had $10,000 to start your screen printing business or clothing line from SCRATCH, how would you spend every penny of that money to ensure you would be successful?

Please leave your thoughts


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## joeshaul (Mar 1, 2008)

Budget, and prepare to not to spend all of that $10,000 in m opinion. 

First thing's first, you should decide if you want to do screen printing as a business, or do a clothing line. Doing both will probably be too much to take on at the get go. You will have teething issues with screen printing, especially if you've never done it before and then you might end up selling a subpar quality product which doesn't make a good first impression and in the event of a clothing line could kill your whole line. 

If going the screen printing route, you will want to set aside a budget for equipment, startup stock (inks, shirts, screens, etc), rent for a couple of months if you cannot do it from your current residence/do not have a building (prepare for security deposits/etc too), and of course, having some extra money to maybe attend a seminar or set aside for trial and error as you learn. As you do some jobs, you'll probably get more leads and your business can grow from there, after you've learned the craft, then you might see about making your own line on the side. The late night Yudu infomercial might have you sold on "screen printing is JUST THIS EASY!", but watch Ryonet's screen printing DVD set and you'll get a taste for how many variables and procedures there are when it comes to screen printing.

A brand requires a lot less overhead, but requires a lot more marketing. Focus should be the following: A website (should probably pay for a few months in advance much like rent), a good marketing plan to hit your target audience, and product. You'll probably need to allocate a good portion product as prices always get cheaper in bulk and if you're going for a line, you'll probably want some fancy shirts with fancy techniques which always cost a bit extra. You would also want to test the waters with your design before getting it fully developed into a product. Pass your design by with members of your target audience to see what they think, if they think it's good, go for a batch of product. Allocate some money for possible road trips, and possible giveaway product, however don't just throw t-shirts at an audience in my opinion, instead see if you can get into contact with folks to see if they will sport your merchandise (IE: if you're targeting a hip hop crowd, talk with some local rappers/dj's/etc). If you lack design skills, you'll probably also want to set aside some money so someone can make your vision come to life (although I'd at least have a decent quality sketch or something, seems a little bit blasphemous to have a clothing line when you weren't the driving force behind the design!)

You will also need a few hundred bucks set aside for business licenses/permits/etc regardless of which business you choose. 

A friend with money to help you out is great, but as I've aged, I've changed my paradigm and I'd look at it from the opposite end of the spectrum and say "If I had little/no money, how would I start a business?".


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## ThatGuyWhoPrints (Jul 11, 2012)

Thank you so much for your input. if you don't mind tailoring this to what i am trying to accomplish let me explain my goal.

I am starting up my own clothing line to reach out to military personnel. i do not want to outsource my jobs. i did screen printing as a summer job in high school so i know the basics. what i was hoping to accomplish was launch my line and print my line as well. and of course pick up jobs along the way for other people to keep my equipment going when im not printing my own shirts.


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## joeshaul (Mar 1, 2008)

ThatGuyWhoPrints said:


> Thank you so much for your input. if you don't mind tailoring this to what i am trying to accomplish let me explain my goal.
> 
> I am starting up my own clothing line to reach out to military personnel. i do not want to outsource my jobs. i did screen printing as a summer job in high school so i know the basics. what i was hoping to accomplish was launch my line and print my line as well. and of course pick up jobs along the way for other people to keep my equipment going when im not printing my own shirts.


One of the big factors is still will you be renting a place to do business at, or will you be doing it from your own residence? Rent is one of the major killers of startup businesses, and can fluctuate greatly depending on your location. I would personally set aside around $1000 for a 4 color press startup kit, you might also be able to pick up a used one on a good deal. About $750 for various extra screening supplies (more/different types of inks, screens, chemicals, etc). About $1500 for various product (you'll want to stock the ol basic tee for walkin customers, but for your line, probably want to go with some of the fashion tees as well). If you're a designer, you could probably design your own site and everything to save on costs there, set aside roughly $300 for hosting/domain name/certificates for the first year. I'd set aside around ~$2500 for a decent computer/software package assuming you don't have one already (there are trial versions of Corel/Adobe CS/some RIPs that might get you by for a little while). Set aside another $1000 for professional printed catalogs, business cards, postcards, flyers, and the like. Unsure of base dynamics as I've never really catered to the military market, but you might want to visit some local bases and show your line, give away some samples and get some input, lets call it $500 for some simple travel and marketing there. Probably wouldn't do that until a decent catalog and site was built, but would need some money set aside for that as well. This would leave you roughly around $2.5k for rent, but I would adjust and adapt as necessary (IE: make due with existing computer, or look at buying someone who is getting out of the biz's operation so that you don't have to buy the RIP/design software and so on). Those are rough figures off the top of my head, so take it with a bit of salt!


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## ThatGuyWhoPrints (Jul 11, 2012)

Great advice! this helps put things into perspective for me. i will be operating out of my garage so no rent there. and i do have all the software needed and a good computer and a lot of computer knowledge and skills so it looks like im off to a good start!


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## Ezra4ever (May 11, 2011)

Great question Dustin and great responses!

I am also starting with 10K and still in the process of how and where I want to spend it. Material? marketing? Website?...etc....

I was told to "Never put all the eggs in one basket".....lol

All I know is most of my $, I plan on using towards buying products and marketing/marketing material. 

Good luck to both of us!


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## binki (Jul 16, 2006)

you can do a screen printer and maybe have some left over for a heat press and vinyl cutter.


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## Flagrant-T (Nov 11, 2009)

If I had $10K cash and wanted to start a screen printing business, I would take about a grand and go to the SGIA Vegas event, take a bunch of seminars and learn all about the newest equipment. Then since I am in Vegas, I would take the remaining $9000 and go on a 24-48 drinking and gambling binge. At the end of it, depending on if I won or lost, I'd go with either a full auto shop...or more likely a Ryonet Silver Press and a couple wood screens.

You might be better off listening to some of the other advice though...

Good luck,
Nick


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## Riderz Ready (Sep 18, 2008)

You are making the same mistake many have made before and and many will make after you. I would guess of those 99% are not here to post after six months. Scour the forums and find all the post "No sales - please help". There out there by the dozens. 

You can do all the research in the world, buy the best equipment, build the best web site, have the coolest designs and you will still soon be posting, "Slow sales please help."

Therre is only one thing that matters - marketing and selling your brand. The days of putting up a great site and doing some SEO and having people find your site are long gone. This is a saturated market and unless you have or have access to someone who is a professional at such nothing else will matter.

You should not be spending one dime on equipment in a start up or rest assured in will be in the classifieds like so many before you. Everything made should be outsourced until you can sell enough to justify buying the equipment. 

Test the market with your concept before running off spending $10K.


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## GraphicGuy (Dec 8, 2008)

I say do as I have. You have a dream just go for it....
Listen to what others are saying but find your own truth in it.
Don't let others crush your dreams. It can be a hard road starting your own thing but don' t loose sight of the dream.
If something was so difficult why are so many doing it? You can do it to.
Use your head. I'm sure most of us on these forums jumped in with both feet and delt with whatever came after. Sometimes it's the best way. Once you do it will be sink or swim. Be a swimmer...
There's my speech.
Best of luck to you


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## NEWAGEHOODIE (Aug 1, 2012)

You need to start with a good business plan detailing how you plan to spend the money. There is much to consider went starting a business. Whatever you decide to do make sure you allocate enough fund to a sale rep and marketing plan.


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## Louie2010 (Feb 26, 2010)

There are many other with much more knowledge than I when it comes to equipment, so I leave that for others.

One thing I do feel worth mentioning is about the loan. Loans from friends can be tricky. Many friendships have been ruined because of them. So make sure that you want to take money and owe this friend before moving forward. Then if you still want to it is wise to have some type of written agreement the covers everything so there are no surprises.

Is the friend going to have any ownership because of this loan? Or is their the expectation that they will have a say in how things should be done? Because often things start slower then expected and just as often the investor feels they should have some say in how their investment is being spent.

What are the terms of the loan? Will there be interest paid on the money? Will you be expected to make regular payments to them, or is it to be returned in one lump sum? When are you expected to repay the loan? What are the penalties or consequences if you can't meet those terms? Do they expect repayment before you begin drawing a salary, or do they expect their money back before you start "making" money.

Do yourself and your friend a favor and sit down beforehand and talk about all aspects and scenarios and the write it all down and sign it. As uncomfortable as that may seem, it is a thousand times less awkward then discussing these things after the fact.

You don't want to be doing what you feel is best and have your friend and others close to him resenting you, feeling that you are taking advantage of him because something wasn't openly discussed.

I wish you well.


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## Themban (Jul 26, 2012)

You need to write up a business plan, you'll discover in the long run that it will not only help you explain the breakdown of your venture but also to successfully run your biz.


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