# Average yearly growth Rate for Screen Printing



## kedkennels (Feb 25, 2010)

What is the average growth rate for a screen printing business?


----------



## binki (Jul 16, 2006)

If you sell 100 shirts in your first year and 200 in your second that is 100% growth. 

So, it really doesn't matter what the national or local growth rate is. What does matter is yours. 

Consider this. You can sell large orders of shirts, say a 4000 t-shirt order and make maybe around $7K or $8K. Or you can sell team uniforms, say 200 and make the same amount of money. The margin is the same but the amount of garments you sell and the time you spend are a lot different. Additionally, you now have time to spend on other money making projects so you can grow without as much added cost. 

If you have outside salesmen then you can grow faster than if you had none. 

Some milestones you can keep in mind, just a rule of thumb. 

Your net after all costs (including your salary) but before taxes should be around 35%. 
Your ability to gross $500K/yr ($175K profit) will depend on you having at least one real good salesman, a graphic artist and 2 or 3 production employees. 
You ability to gross $1 Million/yr ($350K profit) will depend on you having 2 to 4 salesmen an office manager, an artist and 3-5 production employees.

Production facility size for $500K can be done in 1500/sqft (very tight but can be done) but to go to a million you may need closer to 8,000/sqft. 

Now if you work out of your home you will really have to work the bushes to get work. 
If you have a commercial space you will still have to make outside sales but you will have some walkins (which means someone has to be there)
If you have a retail location with lots of walking traffic you can do well with just inside sales and as you get known around town your business will pick up quite well.


----------



## VAUnlimited (Feb 14, 2010)

Binki, I have to thank you for this info. Can you point me to more information like this? I recently suffered a severe reduction in income from my day job and I need to decide wether to focus my energy on building this screen printing business to offset/overtake the deficit.


----------



## binki (Jul 16, 2006)

I wrote this a while back:
http://www.t-shirtforums.com/t-shirt-articles/t17054.html


----------

