Table of Content

    Do you want to start digital printing business?

    There are many benefits of starting a digital printing business. You can start it with a very low initial investment from your home, or you can increase its magnitude to any size depending on your investment. Moreover, it gives an incredibly high ROI as compared to other businesses started from comparable investments.
    Before you move on to starting this business, you will have to prepare comprehensive printing business plans which will establish the basis of your company’s future operations and decisions. If you are wondering how to write one then here we are providing you the business plan for printing company business startup named ‘Junes Printing Services’.

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    Executive Summary

    2.1 The Business

    Junes Printing Services will be a digital printing startup located in the main commercial market of Downtown Manhattan. The company will be owned by Elia Junes, a passionate Graphic Designer.

    2.2 Management

    The success of a startup heavily depends on its staff and management that’s why Junes planned it before starting a print shop. The main management of the company will comprise sales executives, graphic artists, technicians, and customer representatives.

    2.3 Customers

    Our target market is the corporate sector located in Manhattan. We will provide all sorts of digital printing services and our high-quality services will outperform our competition.

    2.4 Business Target

    Our target is to balance the initial cost of the startup with earned profits by the end of the first year and to achieve the net profit margin of $10k per month by the end of the first year.

    Digital Printing Business Plan - 3 Years Profit Forecast

    Business Plan for Investors
    Document for attracting equity financing for a startup or existing business. These business plans will comply with even the most complex investor requirements

    Company Summary

    3.1 Company Owner

    Junes Printing Services will be owned by Elia Junes, a business graduate from the University of Illinois. She is also an adept designer and is known for her exceptional graphics skills and innovative designs.

    3.2 Why the Business is being started

    Junes has always been passionate about starting her own printing shop business plan. Although she is a business graduate, her interest in graphic designing led her to start print shop business.

    3.3 How the Business will be started

    The printing shop business plan will be located in a 100-square-feet leased building in the main commercial market of the Downtown Manhattan. The company will initially procure twenty commercial printers, assorted office stationery, five filing cabinets, five work desks, a round table with chairs for meeting area and couch and chairs for customer waiting area.
    The startup summary is as follows:

    printing business plans - startup cost

    The detailed start-up requirements are given below:

    Start-up Expenses  
    Legal $75,500
    Consultants $0
    Insurance $62,750
    Rent $22,500
    Research and Development $42,750
    Expensed Equipment $42,750
    Signs $1,250
    TOTAL START-UP EXPENSES $247,500
    Start-up Assets $0
    Cash Required $322,500
    Start-up Inventory $52,625
    Other Current Assets $222,500
    Long-term Assets $125,000
    TOTAL ASSETS $121,875
    Total Requirements $245,000
    START-UP FUNDING $0
    START-UP FUNDING $273,125
    Start-up Expenses to Fund $121,875
    Start-up Assets to Fund $195,000
    TOTAL FUNDING REQUIRED $0
    Assets $203,125
    Non-cash Assets from Start-up $118,750
    Cash Requirements from Start-up $0
    Additional Cash Raised $118,750
    Cash Balance on Starting Date $121,875
    TOTAL ASSETS $0
    Liabilities and Capital $0
    Liabilities $0
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $0
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $0
    Capital $0
    Planned Investment $0
    Investor 1 $312,500
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $695,000
    Loss at Start-up (Start-up Expenses) $313,125
    TOTAL CAPITAL $221,875
    TOTAL CAPITAL AND LIABILITIES $221,875
    Total Funding $265,000
    Any questions? Get in Touch!

    Services for customers

    If you are writing a business plan for printing services, make sure to pay special attention to what services will you offer to your customers because the planning of many subsequent components depends on your services.

    Note

    The value of a digital printing business can be increased significantly if you also offer basic level graphic design services to your customers because many customers tend to modify and revise their designs after seeing them in print form.

    Junes Printing Services will offer following printing services to its customers:

    • Booklets and guides
    • Restaurant menus
    • Event flyers
    • Marketing brochures
    • Invitations and business cards
    • Newsletters

    Marketing Analysis of digital printing business

    The most important component of an effective digital printing business plan is its accurate marketing analysis that’s why it is advisable to seek the help of marketing experts. If you are starting this venture on small scale, you can take help from this digital printing business plans sample and carry out a marketing analysis yourself.
    For the marketing analysis before starting her venture, Junes acquired the services of marketing experts to help her through this phase. Marketing analysis is extremely important because it gives you an idea of your position in the market. Therefore, it must be considered before developing the printing shop business plan.

    Bank/SBA Business Plan

    5.1 Market Trends

    There are about 7000 digital printing businesses in the United States, which generate about $10 billion every year. The industry is expected to grow at 1.9% every year. Despite the huge number of existing businesses, this market has a lot of potential provided that one plans and executes this business efficiently.

    5.2 Marketing Segmentation

    It is very important to analyze the market segmentation of the future customers of your services before developing a printing stote business plan because a successful and efficient marketing strategy can only be developed after we completely know our potential customers.
    Our target market is the corporate sector located in the Central Business District of the Manhattan which provides many opportunities to us. Manhattan houses more than 300,000 businesses as of 2014, including local, national and multinational businesses. Our experts have identified the following type of target audience which can become our future consumers:

    Digital Printing Business Plan - Market Segmentation

    The detailed marketing segmentation of our target audience is as follows:

    5.2.1 Corporate Sector:

    The biggest consumer of our services will be the corporate sector located in the Downtown Manhattan. The corporate sector includes product manufacturers and distributors, real estate owners, hotels, restaurants and food companies, IT and software development firms, branding and advertising agencies. These companies and businesses need digital printing services for mass printing their brand messages or for other purposes. This target group will contribute the biggest portion of our revenue hence our marketing strategy for business will be specifically tailored to attract this customer group.

    5.2.2 Institutions & Organizations:

    Our second target group comprises of various institutions and organizations located in Manhattan including government and public-sector organizations, schools, colleges and universities, political parties, religious and sports organizations, and non-profit organizations. These organizations also need digital printing services for promoting their messages and other purposes.

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    5.2.3 Print & Digital Media:

    Our third target group consists of print and digital media companies located in Manhattan. These companies include but are not limited to television studios, video production companies, publication companies.
    The detailed market analysis of our potential customers is given in the following table:

    Market Analysis
    Potential Customers Growth YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CAGR
    Corporate Sector 48% 22,334 32,344 43,665 52,544 66,432 10.00%
    Institutions & Organizations 18% 11,433 13,344 16,553 18,745 20,545 13.43%
    Print & Digital Media 34% 18,322 19,455 20,655 22,867 24,433 15.32%
    Total 100% 52,089 65,143 80,873 94,156 111,410 9.54%

    5.3 Business Target

    • To achieve the net profit margin of $10k/month by first year, $15k by second year, and $25k by third year
    • To balance the initial cost of the startup with earned profits by the end of the first year

    5.4 Product Pricing

    Product pricing is one of the most important factors in deciding the strategy for any business plan for printing company. After considering the market demands, we have priced all our products in similar ranges as of our competitors.

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    Strategy

    Like marketing analysis, sales strategy is also an important component of a printing shop business plan as it determines how the business will grow.

    6.1 Competitive Analysis

    As of 2018, there are about 7000 business plan for printing company in the United States, so we can say that we have a tough competition ahead. Although we have a lot of competitors, but none of them provides as high-quality services in the same price as provided by us. Secondly, we will facilitate our customers with online orders and free delivery service.

    6.2 Sales Strategy

    • We will ensure at least a 20% increase in website traffic each month and will ensure at least an 80% conversion rate, i.e. to turn 80% of our website visitors into our customers.
    • We will advertise our business in relevant business magazines, newspapers, TV stations, and social media.
    • We will offer a 20% discount on our services for the first three months of our launch.

    6.3 Sales Monthly

    Digital Printing Business Plan - Sales Monthly

    6.4 Sales Yearly

    Digital Printing Business Plan - Sales Yearly

    6.5 Sales Forecast

    Digital Printing Business Plan - Unit Sales

    Sales Forecast      
    Unit Sales Year 1 Year 2 Year 3
    Booklets, guides and newsletters 187,330 260,320 258,240
    Restaurant menus 802,370 815,430 823,540
    Event flyers 539,320 770230 1,002,310
    Marketing brochures 265,450 322,390 393,320
    Invitations and business cards 1,435,320 1,250,430 1,762,450
    TOTAL UNIT SALES 3,229,790 3,418,800 4,239,860
    Unit Prices Year 1 Year 2 Year 3
    Booklets, guides and newsletters $140.00 $150.00 $160.00
    Restaurant menus $600.00 $800.00 $1,000.00
    Event flyers $700.00 $800.00 $900.00
    Marketing brochures $650.00 $750.00 $850.00
    Invitations and business cards $140.00 $120.00 $100.00
    Sales
    Booklets, guides and newsletters $214,800 $274,000 $333,200
    Restaurant menus $120,050 $194,500 $268,500
    Event flyers $50,110 $71,600 $93,000
    Marketing brochures $139,350 $194,600 $249,850
    Invitations and business cards $62,350 $72,300 $82,250
    TOTAL SALES
    Direct Unit Costs Year 1 Year 2 Year 3
    Booklets, guides and newsletters $0.70 $0.80 $0.90
    Restaurant menus $0.40 $0.45 $0.50
    Event flyers $0.30 $0.35 $0.40
    Marketing brochures $3.00 $3.50 $4.00
    Invitations and business cards $0.70 $0.75 $0.80
    Direct Cost of Sales
    Booklets, guides and newsletters $98,300 $183,000 $267,700
    Restaurant menus $66,600 $119,900 $173,200
    Event flyers $17,900 $35,000 $52,100
    Marketing brochures $19,400 $67,600 $115,800
    Invitations and business cards $27,700 $69,200 $110,700
    Subtotal Direct Cost of Sales $294,100 $699,400 $1,104,700
    Any questions? Get in Touch!

    Personnel plan

    Personel plan shows information about the staff of a company along with their salaries. If you don’t know how to make one, you can take help from this sample business plan for a printing company. Junes has developed the following personnel plan for her company.

    7.1 Company Staff

    Junes will act as the General Manager of the company and will initially hire following people:

    • 1 Accountant to maintain financial and other records
    • 2 Sales Executives responsible to market and discover new ventures
    • 2 Graphic Artists to design and modify print media
    • 3 Technicians to operate the printing machines
    • 2 Managing Assistants to manage the company’s official website and social media pages
    • 4 Customer Representatives to interact with customers and record their orders
    • 4 Drivers to transport or deliver printed materials
    • 1 Front Desk Officer to act as a receptionist
    • 1 Security Officer

    7.2 Average Salary of Employees

     Personnel Plan      
    Year 1 Year 2 Year 3
    Accountant $85,000 $95,000 $105,000
    Sales Executives $85,000 $92,000 $109,000
    Graphic Artists $166,000 $173,000 $180,000
    Technicians $35,000 $42,000 $59,000
    Managing Assistants $60,000 $63,300 $70,000
    Customer Representatives $63,300 $70,000 $76,700
    Drivers $36,700 $43,400 $50,100
    Front Desk Officer $20,000 $23,300 $30,000
    Security Officer $40,000 $45,000 $52,000
    Total Salaries $466,000 $507,000 $574,800

    Financial Plan

    The success of a business heavily depends on its accurate financial analysis so make sure to pay special attention to your financial plan before opening a print shop.

    8.1 Important Assumptions

     General Assumptions      
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 10.00% 11.00% 12.00%
    Long-term Interest Rate 10.00% 10.00% 10.00%
    Tax Rate 26.42% 27.76% 28.12%
    Other 0 0 0

    8.2 Brake-even Analysis

    Digital Printing Business Plan - Brake-even Analysis

     Brake-Even Analysis  
    Monthly Units Break-even 5530
    Monthly Revenue Break-even $159,740
    Assumptions:
    Average Per-Unit Revenue $260.87
    Average Per-Unit Variable Cost $0.89
    Estimated Monthly Fixed Cost $196,410

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss      
    Year 1 Year 2 Year 3
    Sales $309,069 $385,934 $462,799
    Direct Cost of Sales $15,100 $19,153 $23,206
    Other $0 $0 $0
    TOTAL COST OF SALES $15,100 $19,153 $23,206
    Gross Margin $293,969 $366,781 $439,593
    Gross Margin % 94.98% 94.72% 94.46%
    Expenses
    Payroll $138,036 $162,898 $187,760
    Sales and Marketing and Other Expenses $1,850 $2,000 $2,150
    Depreciation $2,070 $2,070 $2,070
    Leased Equipment $0 $0 $0
    Utilities $4,000 $4,250 $4,500
    Insurance $1,800 $1,800 $1,800
    Rent $6,500 $7,000 $7,500
    Payroll Taxes $34,510 $40,726 $46,942
    Other $0 $0 $0
    Total Operating Expenses $188,766 $220,744 $252,722
    Profit Before Interest and Taxes $105,205 $146,040 $186,875
    EBITDA $107,275 $148,110 $188,945
    Interest Expense $0 $0 $0
    Taxes Incurred $26,838 $37,315 $47,792
    Net Profit $78,367 $108,725 $139,083
    Net Profit/Sales 30.00% 39.32% 48.64%

    8.3.1 Profit Monthly

    Digital Printing Business Plan - PROFIT MONTHLY

    8.3.2 Profit Yearly

    Digital Printing Business Plan - PROFIT YEARLY

    8.3.3 Gross Margin Monthly

    Digital Printing Business Plan - GROSS MARGIN MONTHLY

    8.3.4 Gross Margin Yearly

    Digital Printing Business Plan - GROSS MARGIN YEARLY

    8.4 Projected Cash Flow

    Digital Printing Business Plan - Projected Cash Flow Diagram

     Pro Forma Cash Flow      
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $40,124 $45,046 $50,068
    Cash from Receivables $7,023 $8,610 $9,297
    SUBTOTAL CASH FROM OPERATIONS $47,143 $53,651 $59,359
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $47,143 $53,651 $55,359
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $21,647 $24,204 $26,951
    Bill Payments $13,539 $15,385 $170,631
    SUBTOTAL SPENT ON OPERATIONS $35,296 $39,549 $43,582
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $35,296 $35,489 $43,882
    Net Cash Flow $11,551 $13,167 $15,683
    Cash Balance $21,823 $22,381 $28,239

    8.5 Projected Balance Sheet

     Pro Forma Balance Sheet      
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $184,666 $218,525 $252,384
    Accounts Receivable $12,613 $14,493 $16,373
    Inventory $2,980 $3,450 $3,920
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $201,259 $237,468 $273,677
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $12,420 $14,490 $16,560
    TOTAL LONG-TERM ASSETS $980 $610 $240
    TOTAL ASSETS $198,839 $232,978 $267,117
    Liabilities and Capital Year 1 Year 2 Year 3
    Current Liabilities
    Accounts Payable $9,482 $10,792 $12,102
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $9,482 $10,792 $12,102
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $9,482 $10,792 $12,102
    Paid-in Capital $30,000 $30,000 $30,000
    Retained Earnings $48,651 $72,636 $96,621
    Earnings $100,709 $119,555 $138,401
    TOTAL CAPITAL $189,360 $222,190 $255,020
    TOTAL LIABILITIES AND CAPITAL $198,839 $232,978 $267,117
    Net Worth $182,060 $226,240 $270,420

    8.6 Business Ratios

     Ratio Analysis        
    Year 1 Year 2 Year 3 Industry Profile
    Sales Growth 4.35% 30.82% 63.29% 4.00%
    Percent of Total Assets
    Accounts Receivable 5.61% 4.71% 3.81% 9.70%
    Inventory 1.85% 1.82% 1.79% 9.80%
    Other Current Assets 1.75% 2.02% 2.29% 27.40%
    Total Current Assets 138.53% 150.99% 163.45% 54.60%
    Long-term Assets -9.47% -21.01% -32.55% 58.40%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.68% 3.04% 2.76% 27.30%
    Long-term Liabilities 0.00% 0.00% 0.00% 25.80%
    Total Liabilities 4.68% 3.04% 2.76% 54.10%
    NET WORTH 99.32% 101.04% 102.76% 44.90%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.18% 93.85% 93.52% 0.00%
    Selling, General & Administrative Expenses 74.29% 71.83% 69.37% 65.20%
    Advertising Expenses 2.06% 1.11% 0.28% 1.40%
    Profit Before Interest and Taxes 26.47% 29.30% 32.13% 2.86%
    Main Ratios
    Current 25.86 29.39 32.92 1.63
    Quick 25.4 28.88 32.36 0.84
    Total Debt to Total Assets 2.68% 1.04% 0.76% 67.10%
    Pre-tax Return on Net Worth 66.83% 71.26% 75.69% 4.40%
    Pre-tax Return on Assets 64.88% 69.75% 74.62% 9.00%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 19.20% 21.16% 23.12% N.A.
    Return on Equity 47.79% 50.53% 53.27% N.A.
    Activity Ratios
    Accounts Receivable Turnover 4.56 4.56 4.56 N.A.
    Collection Days 92 99 106 N.A.
    Inventory Turnover 19.7 22.55 25.4 N.A.
    Accounts Payable Turnover 14.17 14.67 15.17 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 1.84 1.55 1.26 N.A.
    Debt Ratios
    Debt to Net Worth 0 -0.02 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $120,943 $140,664 $160,385 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.45 0.48 0.51 N.A.
    Current Debt/Total Assets 4% 3% 2% N.A.
    Acid Test 23.66 27.01 30.36 N.A.
    Sales/Net Worth 1.68 1.29 0.9 N.A.
    Dividend Payout 0 0 0 N.A.

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