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’.
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.
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.
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.
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:
The detailed start-up requirements are given below:
|Research and Development||$42,750|
|TOTAL START-UP EXPENSES||$247,500|
|Other Current Assets||$222,500|
|Start-up Expenses to Fund||$121,875|
|Start-up Assets to Fund||$195,000|
|TOTAL FUNDING REQUIRED||$0|
|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|
|Accounts Payable (Outstanding Bills)||$0|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$695,000|
|Loss at Start-up (Start-up Expenses)||$313,125|
|TOTAL CAPITAL AND LIABILITIES||$221,875|
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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
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 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:
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.
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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:
|Potential Customers||Growth||YEAR 1||YEAR 2||YEAR 3||YEAR 4||YEAR 5||CAGR|
|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%|
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.
Alex provided prompt reply and good…
Alex provided prompt reply and good understanding and research, thank you
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
6.4 Sales Yearly
6.5 Sales Forecast
|Unit Sales||Year 1||Year 2||Year 3|
|Booklets, guides and newsletters||187,330||260,320||258,240|
|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|
|Invitations and business cards||$140.00||$120.00||$100.00|
|Booklets, guides and newsletters||$214,800||$274,000||$333,200|
|Invitations and business cards||$62,350||$72,300||$82,250|
|Direct Unit Costs||Year 1||Year 2||Year 3|
|Booklets, guides and newsletters||$0.70||$0.80||$0.90|
|Invitations and business cards||$0.70||$0.75||$0.80|
|Direct Cost of Sales|
|Booklets, guides and newsletters||$98,300||$183,000||$267,700|
|Invitations and business cards||$27,700||$69,200||$110,700|
|Subtotal Direct Cost of Sales||$294,100||$699,400||$1,104,700|
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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
|Year 1||Year 2||Year 3|
|Front Desk Officer||$20,000||$23,300||$30,000|
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
|Year 1||Year 2||Year 3|
|Current Interest Rate||10.00%||11.00%||12.00%|
|Long-term Interest Rate||10.00%||10.00%||10.00%|
8.2 Brake-even Analysis
|Monthly Units Break-even||5530|
|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 1||Year 2||Year 3|
|Direct Cost of Sales||$15,100||$19,153||$23,206|
|TOTAL COST OF SALES||$15,100||$19,153||$23,206|
|Gross Margin %||94.98%||94.72%||94.46%|
|Sales and Marketing and Other Expenses||$1,850||$2,000||$2,150|
|Total Operating Expenses||$188,766||$220,744||$252,722|
|Profit Before Interest and Taxes||$105,205||$146,040||$186,875|
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|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|
|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|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$201,259||$237,468||$273,677|
|TOTAL LONG-TERM ASSETS||$980||$610||$240|
|Liabilities and Capital||Year 1||Year 2||Year 3|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$9,482||$10,792||$12,102|
|TOTAL LIABILITIES AND CAPITAL||$198,839||$232,978||$267,117|
8.6 Business Ratios
|Year 1||Year 2||Year 3||Industry Profile|
|Percent of Total Assets|
|Other Current Assets||1.75%||2.02%||2.29%||27.40%|
|Total Current Assets||138.53%||150.99%||163.45%||54.60%|
|Percent of Sales|
|Selling, General & Administrative Expenses||74.29%||71.83%||69.37%||65.20%|
|Profit Before Interest and Taxes||26.47%||29.30%||32.13%||2.86%|
|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.|
|Accounts Receivable Turnover||4.56||4.56||4.56||N.A.|
|Accounts Payable Turnover||14.17||14.67||15.17||N.A.|
|Total Asset Turnover||1.84||1.55||1.26||N.A.|
|Debt to Net Worth||0||-0.02||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$120,943||$140,664||$160,385||N.A.|
|Assets to Sales||0.45||0.48||0.51||N.A.|
|Current Debt/Total Assets||4%||3%||2%||N.A.|