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Do you want to start T-Shirt Printing s business plan?
Do you want to get into the business of t-shirt printing? Well, the market has immense potential provided you plan for it well.
At the core of every business is careful planning. To make sure that all the aspects of a business are planned, you need to outline a business plan. Moreover, when you are starting a business, it is evident that you will face unprecedented situations. If you have not planned for your major operations, you are likely to make the wrong decision during a crisis.
For reference, you can take help from this business plan t-shirt printing, written for Splash Prints. This template can help you if you wonder how I start my own t-shirt company. It can also help you manage operations, finances, and resources.
For greater and in-depth knowledge of the business world, you are recommended to g through some relevant strategic plan ssuch as a tattoo shop business plan.
Executive Summary
2.1 Business Introduction
Splash Prints will be a t-shirt printing company started in Orlando, Florida. It will be owned and managed by Halie James. The business will aim to become the main source of T-shirt printing in Florida for both its citizens and the tourists who visit its different theme parks throughout the year.
2.2 About the Management
Starting a t-shirt design company is all about creativity and management. If you have the creativity to bring forth services and products that are appealing to the customers, then all you have to do is manage the work, and the company will no doubt succeed. So, if you’re thinking about how to start a t-shirt design company, one of the first things you need to focus on is the business plan for investors.
Here, we are presenting the t-shirt printing business plan samplefor Splash Prints. You can follow along with this t-shirt printing business plan pdf to write a business plan for your business. You can also look at relevant plans such as screen print on T-shirt business plan to include all the necessary details of your business.
2.3 Customers of T-Shirt Printing Company
The customers of Splash Prints will belong to all domains and work areas. However, our focus groups will include:
- Teens
- Young Adults
- Tourists
- Retail Shops
2.4 Business Target
The target of our business is to become the main hub for t-shirt design and printing throughout Orlando and gain a 70% share of the market within two years.
Our financial targets to meet for the first three years of our launch are demonstrated below:
Company Summary
3.1 Company Owner
Halie James will be the owner of Splash Prints. She finished her MBA about a year ago, after which she started to focus on all the requirements needed for starting and maintaining a business. She even worked in an industry to learn the best management techniques that she could apply in her own business.
3.2 Company History
Splash T-Shirts had been a dream of Halie James ever since she was young. She wanted a business that could bring unique expression and a fresh perspective to the market. Therefore, she worked to start Splash T-Shirts, an artistic t-shirt design and print center that will allow various artists to showcase their works and provide these works of art to people at reasonable costs.
3.3 How the T-Shirt Printing s company will be started
Step1: Plan It Out!
You might be wondering how to start a small t shirt company. Well, the first step is always researching and planning.
This sample business plan for t shirt printing can help you with it. We have provided this business plan template for t shirt company for free so that anyone can benefit.
In this free t shirt printing business plan, we will provide a marketing plan, sales strategy, personnel, and financial plan for Splash Prints.
Step2: Define the Brand
Note
An important aspect of business plan for t shirt printing is developing a brand name around the company. A t-shirt business is purely a business dependent on self-expression. Therefore, Halie decided to do this by allowing artists to showcase their art in the store so that more people would be attracted.
Step3: Find the Perfect Space
The location of your business matters a lot, especially if it is an artistic business. To make her store stand out, Halie chose a central position in the market and chose an open concept store to provide more space.
Step4: Create Hype Online
It is crucial for any apparel business nowadays to use the internet to its advantage. Halie decided that she would set up social media profiles for her business on all the major websites and post regularly. She would also use the live feature to showcase interviews with the weekly artists.
Step5: Promote and Market
As the final nail on the board, Halie will utilize all physical and virtual resources she has to promote her business. She will hire expert marketing managers for this purpose.
| Start-up Expenses | |
| Legal | $113,400 |
| Consultants | $0 |
| Insurance | $22,200 |
| Rent | $31,600 |
| Research and Development | $10,000 |
| Expensed Equipment | $53,200 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $233,800 |
| Start-up Assets | $132,400 |
| Cash Required | $239,000 |
| Start-up Inventory | $39,000 |
| Other Current Assets | $122,000 |
| Long-term Assets | $287,000 |
| TOTAL ASSETS | $819,400 |
| Total Requirements | $1,053,200 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $233,800 |
| Start-up Assets to Fund | $819,400 |
| TOTAL FUNDING REQUIRED | $1,053,200 |
| Assets | |
| Non-cash Assets from Start-up | $990,800 |
| Cash Requirements from Start-up | $133,000 |
| Additional Cash Raised | $50,000 |
| Cash Balance on Starting Date | $35,000 |
| TOTAL ASSETS | $1,208,800 |
| Liabilities and Capital | |
| Liabilities | $13,200 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $58,100 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $71,300 |
| Capital | |
| Planned Investment | $1,053,200 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,053,200 |
| Loss at Start-up (Start-up Expenses) | $84,300 |
| TOTAL CAPITAL | $1,137,500 |
| TOTAL CAPITAL AND LIABILITIES | $1,208,800 |
| Total Funding | $1,053,200 |
Services
A business is defined by the services it provides. Therefore, you have to be very careful when deciding the range and scope of your services in the t shirt printing company business plan. Deciding on your services in the t shirt printing business plan will help you manage all the other aspects of your business in a better and more efficient way.
So, when you’re wondering how do you start your own t shirt company, think about the unique benefit you will give your customers through your services. This will be a very crucial base for your business’s success.
In this t shirt printing business plan template free, we are describing all the unique services provided by Splash Prints.
- Customized Design
Splash Prints will provide customers with a platform to design their very own prints for their t-shirts. Through this platform, customers will not only be able to decide the material and other particulars of the shirt but also be able to specify the areas they want their design. Customers can also reach out to our designers for better ideas.
- Customized Printing
In addition to the t-shirt designs available in our stores, our customers can also have custom-designed t-shirts printed within a day.
- Regular Collections
As the store is based around the idea of selling t-shirts, we will offer regular collections of t-shirt designs for customers to choose from.
- Special Collections
Once a month, Splash Prints will partner with top-notch artists to design a special collection of shirts that will be available for a week only.
Marketing Analysis of T-Shirt Printing Company
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Before starting a tshirt printing company, it is important to know who you are going to serve. Besides, you need to explore the macroeconomic trends of the market to gauge your position among other businesses. All these aspects are to be grouped into a marketing plan such as the one we have provided in this sample business plan t shirt printing.
In this business plan for t shirt printing pdf, we are providing the general market trends for t-shirt enterprise. In addition, we are providing a stepwise guide on how to make a successful t shirt company. We are also documenting the marketing plan for t shirt printing business so that you can have a thorough understanding of each aspect.
You can also visit greeting card business plan or another printed t shirts business plan to be more prepared.
5.1 Market Trends
According to GrandViewResearch, the U.S. custom t-shirt printing business has a market value of $3.96 billion and it is steadily growing with a growth rate of 9.7%. It is expected to reach $7.57 billion in market value by 2028, which means that this is the prime time to start an influential business in this domain.
To know how to start my own t shirt brand, you can refer to the sections above.
5.2 Marketing Segmentation
The customers of Splash Prints are divided into the following categories:
Business Plan for Investors
5.2.1 Teens
Our primary customers will be teens in the surrounding area because this is traditionally the group that is most attracted to colorful new designs. Therefore, we expect to have frequent visits by teens who are looking for comic-related or trendy t-shirts.
5.2.2 Young Adults
The second group of customers will be the young adults. This group is expected to avail of customizable design options.
5.2.3 Tourists
As Florida is filled with theme parks, it gains a lot of tourists throughout the year. Splash Prints will try to attract them by establishing deals with different theme parks. We will set up small stands with a small collection in these theme parks where tourists can look at some of our products. This will be done to attract them to our main shop.
5.2.4 Retail Shops
We will also be targeting local retail shops and supplying them with small portions of our collections so that we have a greater reach than just our one initial shop.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Teens | 34% | 33,900 | 40,680 | 48,816 | 58,579 | 70,295 | 10.00% |
| Young Adults | 28% | 26,800 | 32,160 | 38,592 | 46,310 | 55,572 | 10.00% |
| Tourists | 12% | 12,700 | 15,240 | 18,288 | 21,946 | 26,335 | 10.00% |
| Retail Shops | 26% | 22,300 | 26,760 | 32,112 | 38,534 | 46,241 | 11.00% |
| Total | 100% | 95,700 | 114,840 | 137,808 | 165,370 | 198,444 | 10% |
5.3 Business Target
- To become the highest quality custom T-Shirt Printing business in Orlando.
- To be an expression of creativity in the business.
- To gain a net profit of $20k/month by the end of our second year.
- To establish a loyal customer base interested in a sustainable fashion.
5.4 Product Pricing
Our prices will be slightly higher than other printing stores in the market, but our print quality will be better than our competitors. We will also offer exclusive deals and discounts to our customers.
Marketing Strategy
Marketing is an important part of learning how to start a home t shirt business. You need to develop a business plan of t shirt printing to manage this part well. It should follow a similar structure as this sample business plan t shirt printing. You can also refer to a gift shop business plan to get more diverse sales strategy ideas.
Here, we are presenting the marketing strategy that Splash Prints will employ to boost its sales:
6.1 Competitive Analysis
- We will arrange for art shows every week to provide a refreshing experience to our customers.
- Only we among our competitors will be supporting local artists in displaying their work.
- Our customers will be able to design their shirts as they want.
- We will offer sustainable fashion choices to customers where they can also bring old t-shirts to get printed.
6.2 Sales Strategy
- We will advertise our company in theme parks in the area.
- We will put small collections in retail stores.
- We will use social media to create hype for the artist’s collections.
- We will offer exclusive discounts to recurring customers.
- We will set a yearly competition for ‘Shirt of the Year’ with a reward for the winner.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Customized Design | 2,500 | 2,650 | 2,809 |
| Customized Printing | 1,500 | 1,590 | 1,685 |
| Regular Collections | 2,550 | 2,703 | 2,865 |
| Special Collections | 1,550 | 1,643 | 1,742 |
| TOTAL UNIT SALES | 8,100 | 8,586 | 9,101 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Customized Design | $125.00 | $145.00 | $168.20 |
| Customized Printing | $125.00 | $145.00 | $168.20 |
| Regular Collections | $100.00 | $116.00 | $134.56 |
| Special Collections | $85.00 | $98.60 | $114.38 |
| Sales | |||
| Customized Design | $312,500.00 | $384,250.00 | $472,473.80 |
| Customized Printing | $187,500.00 | $230,550.00 | $283,484.28 |
| Regular Collections | $255,000.00 | $313,548.00 | $385,538.62 |
| Special Collections | $131,750.00 | $161,999.80 | $199,194.95 |
| TOTAL SALES | $886,750.00 | $1,090,347.80 | $1,340,691.65 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Customized Design | $20.00 | $22.00 | $23.10 |
| Customized Printing | $20.00 | $22.00 | $23.10 |
| Regular Collections | $24.00 | $26.40 | $27.72 |
| Special Collections | $18.00 | $19.80 | $20.79 |
| Direct Cost of Sales | |||
| Customized Design | $50,000.00 | $58,300.00 | $64,887.90 |
| Customized Printing | $30,000.00 | $34,980.00 | $38,932.74 |
| Regular Collections | $61,200.00 | $71,359.20 | $79,422.79 |
| Special Collections | $27,900.00 | $32,531.40 | $36,207.45 |
| Subtotal Direct Cost of Sales | $169,100.00 | $197,170.60 | $219,450.88 |
Personnel plan
In the t-shirt printing business, customers will have to interact with your employees daily. To make sure that the customers are satisfied with your services, it is essential to have employees with great interpersonal skills.
When you explore how to start a successful t shirt brand, you should also take down the type of employees you will be needing. Moreover, it is a good practice to also include the performance appraisal and reward system in your t shirts printing business plan.
Here, we are listing the staff required by Splash Prints with the average expected salaries.
7.1 Company Staff
- 1 Manager
- 4 Sales Officials
- 2 Cleaners
- 2 HR & Media Managers
- 1 Accountant
- 1 Receptionist
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Manager | $32,000 | $35,200 | $38,720 |
| Sales Officials | $88,000 | $96,800 | $106,480 |
| Cleaners | $42,500 | $46,750 | $51,425 |
| HR & Media Managers | $42,500 | $46,750 | $51,425 |
| Accountant | $25,000 | $27,500 | $30,250 |
| Receptionist | $25,000 | $27,500 | $30,250 |
| Total Salaries | $255,000 | $280,500 | $308,550 |
Financial Plan
T shirt startup costs can be daunting. But the good thing is that all business-related finances can be managed and turned into profit via a detailed business plan. For this purpose, most entrepreneurs hire a professional financial analyst.
To make a detailed financial plan that can guarantee success, you need to draft balance sheets for at least three years. You need to figure out your average expenditures against the profit so that you don’t go into a loss. Moreover, you need to draw graphs for break-even analysis and gross margins to have a clearer idea of your net worth and financial standing.
For an in-depth understanding of the components of a financial plan, you may also visit photography company business plan.
In this printing t shirt business plan, we are providing the financial plan for Splash Prints for guidance:
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.20% | 8.26% |
| Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
| Tax Rate | 24.03% | 24.21% | 24.60% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5340 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $231.00 |
| Average Per-Unit Variable Cost | $0.62 |
| Estimated Monthly Fixed Cost | $163,800 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $886,750 | $1,090,348 | $1,340,692 |
| Direct Cost of Sales | $169,100 | $197,171 | $219,451 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $169,100 | $197,171 | $219,451 |
| Gross Margin | $717,650 | $893,177 | $1,121,241 |
| Gross Margin % | 80.93% | 81.92% | 83.63% |
| Expenses | |||
| Payroll | $255,000 | $280,500 | $308,550 |
| Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
| Depreciation | $2,300 | $2,350 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $2,900 | $3,000 | $3,200 |
| Payroll Taxes | $24,000 | $25,000 | $27,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $434,200 | $463,950 | $502,450 |
| Profit Before Interest and Taxes | $283,450 | $429,227 | $618,791 |
| EBITDA | $283,450 | $429,227 | $618,791 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $56,690 | $85,845 | $123,758 |
| Net Profit | $226,760 | $343,382 | $495,033 |
| Net Profit/Sales | 25.57% | 31.49% | 36.92% |
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 Sales | $51,000 | $55,080 | $59,486 |
| Cash from Receivables | $22,000 | $23,760 | $25,661 |
| SUBTOTAL CASH FROM OPERATIONS | $73,000 | $79,570 | $85,936 |
| 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 | $74,000 | $79,000 | $85,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $42,000 | $42,000 | $45,000 |
| Bill Payments | $27,000 | $28,000 | $31,000 |
| SUBTOTAL SPENT ON OPERATIONS | $69,000 | $70,000 | $76,000 |
| 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 | $69,000 | $74,520 | $80,482 |
| Net Cash Flow | $21,000 | $23,000 | $25,000 |
| Cash Balance | $27,000 | $30,000 | $33,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $24,000 | $26,880 | $30,213 |
| Inventory | $4,300 | $4,816 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $282,000 | $315,840 | $355,004 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
| TOTAL LONG-TERM ASSETS | $24,400 | $27,328 | $30,744 |
| TOTAL ASSETS | $294,000 | $329,280 | $370,440 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,700 | $20,944 | $23,541 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,000 | $21,280 | $23,919 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,000 | $16,800 | $18,883 |
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $53,000 | $57,770 | $63,547 |
| Earnings | $193,400 | $210,806 | $231,887 |
| TOTAL CAPITAL | $285,000 | $310,650 | $341,715 |
| TOTAL LIABILITIES AND CAPITAL | $300,000 | $329,280 | $370,440 |
| Net Worth | $293,400 | $319,806 | $351,787 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
| Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
| Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
| Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
| NET WORTH | 100.45% | 101.25% | 102.19% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
| Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.8 | 34.645 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.08% | 74.89% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 96.30% | 101.12% | 106.17% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.56% | 34.60% | 35.67% | N.A. |
| Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
| Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQ
- Is a t shirt business profitable?
Yes. Just as the success of a record store is based on its record label business plan, A t-shirt business can prove profitable as long as you develop a good and thorough printing t shirts business plan.
- How do I create a Tshirt business plan?
You can follow the business plan given above to draft your t-shirt strategic plan. As a guide, you should also investigate how to create your own t shirts at home and an enterprise on a large scale.
- Is screen printing shirts profitable?
Screen printing shirts can be profitable if you enter the market after thorough research on how to build a t-shirt business.
- Is the online t-shirt business profitable?
The online t-shirt business is immensely profitable especially if you offer customization options to your customers.
If you succeed in developing an accurate business plan for t shirt printing company like the one provided above, then there is a greater chance of success for your online t-shirt business.
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