# Trying to start up for about $55-60,000



## Piratekillsit (May 9, 2012)

I am trying to start a screen pringting shop for abot $50,000. Im looking at a lowrider package, automatic embrioder machine, hydrographic dip set up and heat transfer. i think this will be enough money what the set up im looking at. i want to be able to fill large orders and have the abilty. i dont know what a good deal would be for ma and an invester who is just putting up the money and will not be involved in the biz in any way. i dont know where to start by generating sales, and contracts that will bring steady income and i really dont know the varity of products i will be able to offer. the numbers look great and thats only 1/3 of a avarge loan for a small biz. i really need a good idea of how to figure out my projected sales so i can set up a bussiness plan and how much i plan to make in the first year and five years. i will be setting up a website for large orders and custum gear. my local market is about 200,000. what are my chances of sucess? how many of these new shops fail? and what can i offer that most others dont? any help would be great the forums are a big help so far but im looking for sepific info at this point if all goes well i could have this thing going in a couple months... and how much and insurance and legal fees?


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## KabirC (Aug 29, 2011)

Make sure to factor in the cost of your website and also online marketing (if you need any help, lemme know). Chances of success are as good as you make them really, if you go out there and get the word out as much as possible and do a great job, then you will have a higher chance of success than someone who just has a website and doesn't get the word out as much.


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## binki (Jul 16, 2006)

This is doable. Aside from the screen printing setup, look at a 4 head embroidery machine, a vinyl cutter and heat press. that will book you out around your $50K with a building rental and supplies. 

You will need to advertise and do outside sales though. Google adwords will get you up front really quick and a one page website will help people find you. 

Good luck.


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## Piratekillsit (May 9, 2012)

any thoughts on the lowrider package from silkscreeningsupplies.com ? it looks right to me but i dont really know what to look for in a whole kit... what other things might i need to get going? and what are they not sending me enough of? i am going to max out the whole get and get the best of everything... dont want to cut corrners and end up paying for it later. we have a couple of large accounts we want to go after right away and i want to be set up to handle that. also how many inks should i have it does not look like the package comes with the right varity that im going to need and im also not sure on the quilty of the ink... i would like to do all soft inks... but will i need the other types of ink aswell or is that going to be good for any order that comes my way?


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## cremaster (May 15, 2010)

It sounds like you're biting off more than you can chew. Especially for a start-up. 

If it were me, I'd pick one thing to specialize in - screen-printing, embroidery or hydrographic dip set up and heat transfer - and really learn how to do it well. And, how to sell it well. Then, 'leg in' to the other areas. 

About the LowRider package, if your limited for space, it's an idea. Otherwise, I'd look at something better. (Especially with your budget!)


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## Piratekillsit (May 9, 2012)

cremaster said:


> It sounds like you're biting off more than you can chew. Especially for a start-up.
> 
> If it were me, I'd pick one thing to specialize in - screen-printing, embroidery or hydrographic dip set up and heat transfer - and really learn how to do it well. And, how to sell it well. Then, 'leg in' to the other areas.
> 
> About the LowRider package, if your limited for space, it's an idea. Otherwise, I'd look at something better. (Especially with your budget!)


im trying to start a whole bussiness with that amount of money. most small bussiness loans are about $150,000. i just want to be able to do anything that is going to generate profit while still staying within a specific type of setup. i figure printing and embrodery go hand and hand. and to set up for hydrographics is only another 5,000 so i might as well have some thing on the side that will generate profit in a small area and that takes little time and has about %850 profit margin. thats all by order and i dont have to have alot of stock on hand to perform this service. the up side to the hydrographing is that there is "no" competition in the area. the cost to camo dip a gun is about $9 and the charge is about $250 and the whole process from start to finish is about 15min. the goal would be to under cut companys that are states away and be able to get the customer there item back in a more timely fashion. it take 2-3 weeks to send out... with us you would get it back in 2-3 days. just seems like a smart plan of action.


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## VTG (Dec 16, 2010)

cremaster said:


> It sounds like you're biting off more than you can chew. Especially for a start-up.
> 
> If it were me, I'd pick one thing to specialize in - screen-printing, embroidery or hydrographic dip set up and heat transfer - and really learn how to do it well. And, how to sell it well. Then, 'leg in' to the other areas.
> 
> About the LowRider package, if your limited for space, it's an idea. Otherwise, I'd look at something better. (Especially with your budget!)


I kind of agree with cremaster, this is a pretty ambitious agenda for a start-up. Not saying it can't be done, but it will definitely be a challenge trying to start-up with all of these services right from the very start. I think I'd be more inclined to pick one or two services, get them rolling, and then add on additional services as needed. 

Here are a few questions:

Do you have a business plan yet? Does the business plan outline some milestones and projections to support this ambitious plan?

Are you planning to start as a one-person operation, or do you plan to hire some employees to help you with the day-to-day operations?

Will you operate from a garage or rent a facility (overhead)?

Do you have any experience in any of these production areas or are you a newbie who plans to learn on-the-fly?

How do you intend to promote your services? A website (alone) is not going to cut it. You need to develop some sort of advertising & marketing plan to let folks know your business exists.

Do you have any selling experience? If your marketing plans works, and some customers contact you, are you comfortable with the sales part of the business.

I could go on and on ... just make sure you have a PLAN before you invest any money (especially important since it sounds like it's not your money being invested).

Lastly, the only reason to get the low-rider package (IMO) is if you are limited with space, otherwise, I think you'd be better off getting a better press and a large conveyor dryer. Personally, I love M&R presses and dryers.

If you have the funding, try to avoid buying cheap stuff that you'll outgrow quickly.

Good luck.


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## binki (Jul 16, 2006)

if you are committed then you can do it. we did. we offer much more than you are describing and we did it from day one.


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## VTG (Dec 16, 2010)

binki said:


> if you are committed then you can do it. *we *did. *we* offer much more than you are describing and *we* did it from day one.


Binki, for the sake of providing sound and realistic advice for the OP ... can you please clarify?

- When you say "*we*", does that mean you had some help (you and at least one other person) or did you do it solo from day one?

The OP said, ""*I"* am trying to start a screen printing shop ...", which leads me to believe he may be trying to do this alone. 

_IMO, it's an ambitious plan for one person._

- Did you (binki) have any prior experience? Or did you just dive in head first without any experience?

_IMO, it's an ambitious plan for one person with no experience._

- Did you (binki) have a business plan? Or did you just wake up one day, buy all of the equipment, and start a business?

_IMO, it's an ambitious plan for one person with no experience and no plan.
_
Anything is possible, but here's to hoping that the OP has all three ... some help, some experience, and a plan. If this is the case, then his chance for success will be much better.

Just my opinion.


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## wormil (Jan 7, 2008)

You didn't mention your experience level. If you have cosiderable experience in more than one of these skill sets then maybe. In general it's foolish to open a business in a field with which you have no experience but doubly so to go big unless you can hire the expertise you need. That said, if you lack experience then I would suggest taking one bite at a time. You are risking another's money, what would you do if it were your own?


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## binki (Jul 16, 2006)

Do a search on posts by binki and your questions will be answered. But here is the short form...

We started as 2 people, now we are 3. We started with a business plan and 2 years of research on many types of business but we had over 10 years of experience in sourcing promotional products. 

We developed software for a living and with software now running almost all artwork in almost all aspects of promotional products, screen printing and embroidery, we had some knowledge of what needed to be done.

We also outsourced all of our work for 1 full year before starting to purchase equipment. We still outsource some of our work. You don't have to do everything in house, just want increases your profit and makes sense. 

My recommendation still stands though. $50K is a well funded startup for screen printing, embroidery, banners and heat press operations. Can it be done with one person? In the beginning, probably. 

Here is my formula for gross sales and number of people needed. 

< 50K 1 person and 500 sqft
50K to 100K 2 people and 1k sqft
100K to 250K 3 people and 1.5k sqft
250K to 500K 5 people and 1.5k sqft
500K to 1M 8 people and up to 9k sqft ($1million a year gross need much more space than $550K)

What you have to have more than anything else is desire. You have to really want to make it work and be willing to work night and day to do it. Last weekend *'WE' *did a 38 hour day with only 2 meal breaks and a half our nap (not at the same time) each. If you can't do that then you should just go work for someone else and collect a paycheck. 

This is all based on my research before we started out and since being in business doing this for over 5 years. Your mileage may vary. 

Good luck.


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## beanie357 (Mar 27, 2011)

The urge to succeed in this biz will require many hours. You will need help eventually. Some of the tasks can be outsourced (digitizing, vectorizing, contract embroidery, contract printers, etc.)

Never spend all your money upfront. You will need operating cash along the way! I suggest a careful picking and choosing of top name equipment, used, and spend the time needed to accumulate it. Make a list of everything you will need. 55-60k is a chunk of moola, but can be spent in a heartbeat without direction.

Buy a press once. 6/4 vastex, workhorse, will serve you forever. Buy a 220v oven, run the electric. Buy up grade a notch or two. It will pay off in ease of learning and production down the road. Put good lights in your shop. 

Spend the time and money to practice. Go the the thrift store and buy bags and bags of garments. Then go home and start trying all the different white inks, curing techniques, and variables from screens on to the end product. Start with a one pot emulsion to remove variables while you are experimenting. Buy a gallon. You will need it. Start with good screens, not someones used saggy wood crapola. Even new static screens (aluminum) are not that expensive. Read the forum about vendors. Do not automatically go the one who advertises the biggest or bestest.

Get sprayway crazy wipes for ink. Ink has a life of it,s own. Cut up your trial shirts into rags. You'll need a lot. Keep your work area spotless, saves ag everyday. Think the whole process through first.

Now go start that list, and good luck!


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## VTG (Dec 16, 2010)

Pirate, i hope you've been paying attention. Lots of great advice here from TSF members with a lot of experience.

As Binki clarified, he started with 2 people, a plan, lots of research, and some level of experience. He also outsourced his work for a full year before purchasing equipment. Your chances for success will be much better if you take a similar approach.

$50-60k is a lot of money, more than enough for a decent start-up, but it will evaporate instantly if you buy all of the equipment on day one. As beanie mentioned, you will need some additional funds for basic operating costs.

Good luck my friend, wishing you success on your journey, start with a good PLAN and make it happen.


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## Piratekillsit (May 9, 2012)

this is starting out with two people. not looking at pushing our own design yet just printing others logos for work shirts and the like.... bands... i have a couple of sources that are in to printing. one runs a print shop that does $276,000 in screen printing alone. witch i can only assume is pretty high. the only hard part at this point is comming up with projected sales for a bussiness plan to present to my invester. i know that i can do this. i wanted to get a job doing some screen printing but they dont hire without experince. i have some friends that do it and have done it, so i will have training and also people on the ground floor if this thing takes off. i found a web desinger and graphic artist. and i have and art major for a final look at product be for we print. just looks like the right thing to start up. profit is there but how do i access it and find out how much i should plan on making in the first year and the first five years...


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## wormil (Jan 7, 2008)

Projected sales and profits are going to be WAG's due to lack of experience and/or existing customer base. You'll need to calculate your break even based on costs then design a plan to exceed that and make a profit. Binki's suggestion of beginning by outsourcing will get you on the road with very low overhead and give you a base sales potential. Shops are always looking for brokers to work with so start there then move in gradually as sales support equipment purchases.

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## binki (Jul 16, 2006)

For projected sales figure some factor like 50 shirts an hour for 6 hours a day sold at $X per shirt. Multiply that by 250 (work days in a year) and you have your annual gross. Figure a 30% net (low for this industry) and you will have an idea of what you can do.

We just revised our business plan and purchased load of new equipment. We basically need to increase our gross by 50% to cover the cost of the equipment and everything after that is gravy. We have the customers and the work, we just needed to add more bandwidth.


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## Preston (Mar 21, 2006)

My opinion of the lowrider package is run as fast as you can the other way. The only time you would ever want to put large heat source underneath a press is if you were limited on space and were located where it is cold all the time.

I will be quite honest with you. You can make a lot of money screen printing if you work hard but it is a brutal cut throat business. To tackle the numbers you need an automatic press. It is the only way you are going to be able to turn enough product fast enough. In one hour on a automatic press you can print as much as you could printing all day on that manual and you will not be tired.

With the amount of money you are planing on putting in to start you can get a nice automatic, conveyor dryer, single point exposure unit, all the other odds and ends you need and still have enough for a single head embroidery machine.

Either look for a good used press or buy new. To start looking for a used press keep checking garmentequipmentauction.com . For new I would highly recommend Anatol. If you can fit it in your space and budget get at least an 8 color press. Call Anatol and talk to Paul Schmidt.


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## hbapparel (Jan 16, 2012)

I just opened up a few weeks ago and right now I outsource everything except vinyl to keep my overhead down and to make sure I can make it before I invest thousands into equipment.


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