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 a comprehensive business plan 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 a digital printing business startup named ‘Junes Printing Services’.

Executive Summary

2.1 The Business

Junes Printing Services will be a digital printing startup located in the main commercial market of the 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 of 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

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 business. 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 business 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:

Digital Printing Business Plan 1

The detailed start-up requirements are given below:

Start-up Expenses 
Research and Development$42,750
Expensed Equipment$42,750
Start-up Assets$0
Cash Required$322,500
Start-up Inventory$52,625
Other Current Assets$222,500
Long-term Assets$125,000
Total Requirements$245,000
Start-up Expenses to Fund$121,875
Start-up Assets to Fund$195,000
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
Liabilities and Capital$0
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
Planned Investment$0
Investor 1$312,500
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$313,125
Total Funding$265,000

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.
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.

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 shop 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 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.

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 CustomersGrowthYEAR 1YEAR 2YEAR 3YEAR 4YEAR 5CAGR
Corporate Sector48%22,33432,34443,66552,54466,43210.00%
Institutions & Organizations18%11,43313,34416,55318,74520,54513.43%
Print & Digital Media34%18,32219,45520,65522,86724,43315.32%

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. After considering the market demands, we have priced all our products in the similar ranges as of our competitors.


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

6.1 Competitive Analysis

As of 2018, there are about 7000 digital printing businesses 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 SalesYear 1Year 2Year 3
Booklets, guides and newsletters187,330260,320258,240
Restaurant menus802,370815,430823,540
Event flyers539,3207702301,002,310
Marketing brochures265,450322,390393,320
Invitations and business cards1,435,3201,250,4301,762,450
TOTAL UNIT SALES3,229,7903,418,8004,239,860
Unit PricesYear 1Year 2Year 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
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
Direct Unit CostsYear 1Year 2Year 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

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 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 1Year 2Year 3
Sales Executives$85,000$92,000$109,000
Graphic Artists$166,000$173,000$180,000
Managing Assistants$60,000$63,300$70,000
Customer Representatives$63,300$70,000$76,700
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 1Year 2Year 3
Plan Month123
Current Interest Rate10.00%11.00%12.00%
Long-term Interest Rate10.00%10.00%10.00%
Tax Rate26.42%27.76%28.12%

8.2 Brake-even Analysis

Digital Printing Business Plan - Brake-even Analysis

 Brake-Even Analysis 
Monthly Units Break-even5530
Monthly Revenue Break-even$159,740
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 1Year 2Year 3
Direct Cost of Sales$15,100$19,153$23,206
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%
Sales and Marketing and Other Expenses$1,850$2,000$2,150
Leased Equipment$0$0$0
Payroll Taxes$34,510$40,726$46,942
Total Operating Expenses$188,766$220,744$252,722
Profit Before Interest and Taxes$105,205$146,040$186,875
Interest Expense$0$0$0
Taxes Incurred$26,838$37,315$47,792
Net Profit$78,367$108,725$139,083
Net Profit/Sales30.00%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 ReceivedYear 1Year 2Year 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
ExpendituresYear 1Year 2Year 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
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   
AssetsYear 1Year 2Year 3
Current Assets
Accounts Receivable$12,613$14,493$16,373
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 ASSETS$198,839 $232,978 $267,117
Liabilities and CapitalYear 1Year 2Year 3
Current Liabilities
Accounts Payable$9,482$10,792$12,102
Current Borrowing$0$0$0
Other Current Liabilities$0$0$0
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
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 1Year 2Year 3Industry Profile
Sales Growth4.35%30.82%63.29%4.00%
Percent of Total Assets
Accounts Receivable5.61%4.71%3.81%9.70%
Other Current Assets1.75%2.02%2.29%27.40%
Total Current Assets138.53%150.99%163.45%54.60%
Long-term Assets-9.47%-21.01%-32.55%58.40%
TOTAL ASSETS100.00%100.00%100.00%100.00%
Current Liabilities4.68%3.04%2.76%27.30%
Long-term Liabilities0.00%0.00%0.00%25.80%
Total Liabilities4.68%3.04%2.76%54.10%
NET WORTH99.32%101.04%102.76%44.90%
Percent of Sales
Gross Margin94.18%93.85%93.52%0.00%
Selling, General & Administrative Expenses74.29%71.83%69.37%65.20%
Advertising Expenses2.06%1.11%0.28%1.40%
Profit Before Interest and Taxes26.47%29.30%32.13%2.86%
Main Ratios
Total Debt to Total Assets2.68%1.04%0.76%67.10%
Pre-tax Return on Net Worth66.83%71.26%75.69%4.40%
Pre-tax Return on Assets64.88%69.75%74.62%9.00%
Additional RatiosYear 1Year 2Year 3
Net Profit Margin19.20%21.16%23.12%N.A.
Return on Equity47.79%50.53%53.27%N.A.
Activity Ratios
Accounts Receivable Turnover4.564.564.56N.A.
Collection Days9299106N.A.
Inventory Turnover19.722.5525.4N.A.
Accounts Payable Turnover14.1714.6715.17N.A.
Payment Days272727N.A.
Total Asset Turnover1.841.551.26N.A.
Debt Ratios
Debt to Net Worth0-0.02-0.04N.A.
Current Liab. to Liab.111N.A.
Liquidity Ratios
Net Working Capital$120,943$140,664$160,385N.A.
Interest Coverage000N.A.
Additional Ratios
Assets to Sales0.450.480.51N.A.
Current Debt/Total Assets4%3%2%N.A.
Acid Test23.6627.0130.36N.A.
Sales/Net Worth1.681.290.9N.A.
Dividend Payout000N.A.