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Sign Business

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How to Start a Sign Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 18, 2022 Updated on March 13, 2024

Investment range

$7,350 - $16,700

Revenue potential

$78,000 - $390,000 p.a.

Time to build

1 – 3 months

Profit potential

$55,000 - $117,000 p.a.

Industry trend

Even in the age of digital marketing, countless businesses and locals still use signs to spread the word and advertise. From store signage to street signs, and from yard signs to vinyl on vehicles, good signs boost visibility. 

The US sign industry is worth $14 billion and bouncing back nicely from a pandemic dip. You could start your own sign business, even from your home, grab a share of that growing market and provide a valuable service. 

But before you hit the ground running, you’ll need to learn how to start and manage the business. Luckily, you’ll learn everything you need to know in this step-by-step guide, and then be ready to launch your successful sign business.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a sign business has pros and cons to consider before deciding if it’s right for you.

• Good Money – Costs to make signs are low; profit margins are high
• Flexibility – Run your business from home, set your own hours
• Large Market  – Entrepreneurship is peaking = huge pool of potential customers
• Learning Curve – Learn how to use sign-making equipment
• Investment Required – Sign-making equipment is expensive

Sign industry trends

Industry size and growth.

• Industry size and past growth – The US sign industry was worth $14 billion in 2021 after modest growth during the previous five years.(( https://www.ibisworld.com/united-states/market-research-reports/billboard-sign-manufacturing-industry/ )) 
• Growth forecast – The US sign industry is projected to grow modestly the next five years.
• Number of businesses – In 2021, 29,345 sign businesses were operating in the US. 
• Number of people employed – In 2021, the US sign industry employed 95,305 people. 

Trends and challenges

Trends in the sign industry include:

• Digital signs, which are messages that appear on digital screens, are becoming more and more prevalent in the market. You see them in lobbies, advertising the businesses inside, and in restaurants, with a series of rotating menu images. 
• QR codes on signs are becoming more popular, which people can scan to learn more about a company.
• Along with signs for businesses, personal events also offer a growing opportunity for sign businesses, as people are getting back to holding family events. 

Challenges in the sign industry include:

• The proliferation of online sign companies is making the industry more competitive.
• Emerging technologies in sign-making make it necessary for sign companies to continuously update their technology.

How much does it cost to start a sign business?

Startup costs for a sign business range from $7,300 to $17,000. Costs include equipment, a computer, and graphic design software for signs.

To learn some of the best ways to make signs, you can take online print production courses on sites like Udemy . 

You’ll need a handful of items to successfully launch your sign business, including: 

• Sign plotter
• Graphic design software

How much can you earn from a sign business?

Prices for signs will vary based on the materials used and the time it takes. An average price of a street sign might be $50, which will probably be your largest segment of business unless you outsource larger store signs. 

These calculations will assume an average sale price will be about $150 since customers will probably want more than one sign. Your profit margin after costs of materials should be about 70%. 

In your first year or two, you could work from home and make 10 sales a week, bringing in $78,000 in annual revenue. This would mean $55,000 in profit, assuming that 70% margin. 

As your brand gains recognition and you get repeat business, sales could climb to 50 sales per week. At this stage, you’d rent a commercial space and hire staff, reducing your profit margin to around 30%. With annual revenue of $390,000, you’d make a fantastic profit of $117,000.

What barriers to entry are there?

The only barrier to entry that you’ll encounter is facing a competitive market.

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Step 2: hone your idea.

Now that you know what’s involved in starting a sign business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research sign businesses in your area and online to examine their products, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a yard card business or a sign-making business that also makes decals.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as digital signage or window stickers and magnetic vinyl vehicle signs.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

The signs that you make will depend on your sign-making equipment capabilities, or you could outsource the making of certain signs, reducing your profit margins. 

How much should you charge for signs?

Sign prices will depend on your costs and labor. You should aim for a profit margin of about 70% when you’re working by yourself. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will mainly be business owners. You can connect with them on LinkedIn or find them on Google or Yelp and call them directly. 

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a production facility or even a sign shop. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Signage Company Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “signs” or “custom signs”, boosts SEO
• Name should allow for expansion, for ex: “NextGen Sign Solutions” over “Real Estate Signs”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Signage Company Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Summarize the vision and strategy of your signage company, highlighting the range of sign products offered and the markets you aim to serve.
• Business Overview: Describe the types of signage your company will produce, including digital, outdoor, and custom business signs.
• Product and Services: List the services offered, such as design, production, installation, and maintenance of various types of signs.
• Market Analysis: Evaluate the demand for signage in your target market, identifying potential clients like businesses, schools, or event organizers.
• Competitive Analysis: Compare your company with other signage providers, focusing on your advantages in quality, technology, or turnaround time.
• Sales and Marketing: Outline your approach to attracting clients, using strategies like online marketing, partnerships with advertising agencies, or attending trade shows.
• Management Team: Highlight the experience and skills of your management team, particularly in design, production, and business operations.
• Operations Plan: Describe the production process, from design to manufacturing and installation, including quality control measures.
• Financial Plan: Provide an overview of start-up costs, pricing strategies, projected revenues, and profitability.
• Appendix: Include supplementary materials such as sample designs, client testimonials, or detailed market research to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to sign businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your sign business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a sign business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Sign Business Licenses and Permits

Starting a sign business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your sign business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as shopVOX , SQUARECOIL , or Better sign shop , to manage your projects, schedule, sales, and invoicing.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Starting a sign business can be a lucrative venture, and effective marketing strategies are key to success. Beyond the basics of creating a website and networking, here are practical tips to help your sign business thrive:

• Localized SEO Optimization: Ensure your online presence is optimized for local searches by incorporating location-based keywords, such as the city or region you serve, in your website content and meta tags.
• Google My Business (GMB) Optimization: Claim and optimize your Google My Business listing with accurate business information, high-quality images, and positive customer reviews to enhance visibility in local search results.
• Vehicle Wraps for Mobile Advertising: Turn your business vehicles into mobile billboards by incorporating eye-catching signage, promoting your services while on the move.
• Strategic Partnerships with Real Estate Agents: Collaborate with local real estate agents to provide signage for property listings, boosting your exposure to a broader audience.
• Community Event Sponsorship: Sponsor local events and community gatherings, providing signage for increased visibility and demonstrating your commitment to the community.
• Referral Programs: Establish referral programs with local businesses, offering incentives for clients they refer to your sign business, creating a mutually beneficial network.
• Social Media Engagement: Leverage social media platforms to showcase your portfolio, engage with the audience, and run targeted ads to reach potential customers.
• Innovative In-Store Displays: Collaborate with local businesses to create innovative in-store displays that showcase your sign designs, attracting attention and potential customers.
• Online Advertising Targeting Small Businesses: Utilize online advertising platforms, such as Google Ads and social media ads, targeting small businesses in your area searching for signage solutions.
• Participation in Trade Shows: Attend relevant trade shows or industry events to showcase your sign business, network with potential clients, and stay updated on industry trends.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your sign business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your sign business could be:

• Custom magnetic vehicle signs to jumpstart your business
• Generate more traffic with stunning street signs
• Advertise discounts and specials and watch your sales spike! 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a sign business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in signs for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in signs. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a sign business include:

• Sign Makers – make signs for customers
• General Manager – scheduling, ordering, accounting
• Marketing Lead – SEO strategies, social media, direct sales

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Sign Business – Start Making Money!

Good old-fashioned signs can still help businesses boost their bottom line, which is why they remain a big industry. If you have an eye for design and a desire to support businesses and locals, you can build a lucrative business — even a signage empire!

You have the business knowledge you need, so now it’s time to roll up your sleeves and launch your successful sign business.

• Sign Business FAQs

Yes, a sign making business can be profitable. Once you have all your equipment in place, it doesn’t cost much to make the signs, so you’ll have a high profit margin.

Sign prices will depend on your cost and labor to make them. You should aim for a profit margin of about 70% when you’re working by yourself. Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points.

Utilize search engine optimization techniques to improve online visibility. Utilize social media platforms to share photos of your work, customer testimonials, and promotions. Collaborate with local businesses, real estate agents, or event planners to offer signage solutions. Network with local printing companies or graphic designers who may require sign services. 

A sign business can utilize a wide range of sign materials and technologies. Some common sign materials include vinyl, acrylic, aluminum, wood, and fabric. Technologies utilized in sign production can include digital printing, screen printing, laser cutting, CNC routing , and LED lighting. 

Focus on using high-quality materials, employing skilled craftsmen, and implementing thorough quality control processes. Source materials from reliable suppliers known for their durability and longevity. Train your team members in proper sign production techniques and provide ongoing professional development opportunities.

Some cost-effective options include designing and printing signs in-house using vinyl decals or digital printing, utilizing affordable sign materials like corrugated plastic or foam board, or repurposing existing materials creatively. Another option is to consider DIY signage using materials like paint, stencils, or pre-made letters.

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Signage Company Name
• Create a Signage Company Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Sign Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Sign Business - Start Making Money!

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How to Start a Sign Business

From business street signs to vinyl prints for local events, sign businesses manufacture and sell custom-made signs to the public. Some customers provide their own creative design. Others come with a vision, relying on the manufacturer’s artistic background and knowledge regarding images, placement, and size. Since signs can be manufactured a number of ways, most sign businesses specialize in a couple different methods, outsourcing the rest to trade-only suppliers.

Learn how to start your own Sign Business and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services .

Start a sign business by following these 10 steps:

• Plan your Sign Business
• Form your Sign Business into a Legal Entity
• Register your Sign Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Sign Business
• Get the Necessary Permits & Licenses for your Sign Business
• Get Sign Business Insurance
• Define your Sign Business Brand
• Create your Sign Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your sign business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Sign Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Want some help naming your sign business?

Business name generator, what are the costs involved in opening a sign business.

Many start-up sign business owners choose to work out of their homes until the company has realized significant growth. While this does offer a significant savings, experienced professionals warn against making this decision hastily. Make sure you have enough space to work and that your shop design allows for efficiency. Your workspace must also include an area to collaborate with current and prospective customers.

Once you’ve set up a workspace, you’ll need a few tools to get started. Specific tools required vary depending upon the types of signs you choose to manufacture in-house. Minimum estimated amount of initial capital needed is $5,000.

A basic shop needs the following:

• Sign plotter - $1,500 to $3,900
• Computer - $1,500 to $3,000
• Software - Graphic design software averages $200, while sign making software can run upwards of $5,000.
• Vector graphics - There are free graphics available, but many choose to subscribe, to ensure top quality images.
• Substrates - A list of basic substrates every sign shop should have on-hand can be found  here . Prices vary depending upon manufacturer, size, color, and thickness. $500 should be enough to get started.
• Insurance - Approximately $800 annually, depending upon your specific needs.
• Marketing materials
• Website - While your site doesn't have to be fancy, it should offer a portfolio of your work and answer the standard questions most new customers need to know.

Experienced sign makers recommend dedicating a good amount of time and money to your marketing strategy, particularly if you choose to work out of your home initially.

What are the ongoing expenses for a sign business?

Ongoing business expenses are fairly minimal. You will need to keep some materials on-hand at all times, but most will be ordered on an as-needed basis. Additional associated costs include:

• Website maintenance and hosting
• Marketing materials and time spent implementing your strategy
• Routine maintenance on equipment
• Business insurance
• Monthly software and imaging fees, which vary depending upon your needs

Once your business has grown to the point where you need a storefront, you will incur standard overhead expenses that come with that. Your insurance needs will change and you may want to consider adding a team member at this point as well.

Who is the target market?

Your ultimate goal should be to serve the needs of anyone who requires a sign, banner, or billboard. Since you will most likely not manufacture all of these things in-house, however, this will not happen overnight. Start out targeting the specific niches you wish to be a part of. Once you’ve built relationships with individuals you can outsource work to, then you can begin to add to your buyer personas.

How does a sign business make money?

Each client will require something different from the next, and are charged according to time spent on the project, material costs, and services rendered.

Industry leaders suggest applying the labor + material method for determining price. First, you’ll need to determine material costs associated with said project. Multiply that number by two. Determine how long it will take to create the sign and multiply that by your hourly shop rate. Standard rates in the U.S. are $50 to $60 per hour. Add these two figures together for project rate.

How much profit can a sign business make?

Most sign entrepreneurs report very high profit margins in this industry. Profits range anywhere from 50-95%. Your company’s profits will be defined by the amount and type of work you take on and how skilled you are at figuring labor costs when quoting a price to customers.

How can you make your business more profitable?

The most effective way to maximize profits is to offer sign installation as part of your services. Be sure to check with your state and county before doing so, as this often requires a special construction license.

For long-term success, it is suggested that you remain on top of the latest trends and try to never limit your business. By pigeonholing yourself into one niche, growth will be very slow and will eventually suffer, as customer needs evolve. Many sign businesses offer additional printing services, including coffee mugs/cups, stickers, and t-shirts.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship , partnership , limited liability company (LLC) , and corporation .

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your sign business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services . You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a sign business. Learn more about licensing requirements in your state by visiting  SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A sign business is generally run out of a storefront. Businesses operating out of a physical location typically require a  Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location :
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a sign business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening,  it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a location :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your sign business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Sign Business needs and how much it will cost you by reading our guide Business Insurance for Sign Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a sign business

The sign can be an exceptionally profitable business. As your work becomes more visible, word of mouth advertising will be your most valuable marketing tool. In the beginning, however, consider investing in the social media options, focusing on the local market. Many entrepreneurs have found success with newspaper ads, flyers, and cold calling. A simple, yet informative website with content curated specifically for prospective clients should also be part of your marketing strategy.

How to keep customers coming back

Gaining public interest is only the first step towards building a successful business. To complete the sale, ensure positive feedback, and retain clients long-term, it is critical that you produce quality work every time. This means partnering with the very best in suppliers and outsourcing to manufacturers whose mission aligns with yours.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

Individuals who are talented creatively and enjoy regular interaction and collaboration with the public are best suited for the sign sales and manufacturing industry. Like most business ventures, success requires hard work and dedication, but is very rewarding. Industry leaders indicate they’ve had the unique opportunity of watching long-time customers grow their businesses from small start-ups to million dollar enterprises.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a sign business?

In addition to routine administrative duties, a standard day in a sign shop includes the following activities:

• Meet with current and prospective clients to discuss their needs, questions, and vision
• Create design and layout of signs
• Manufacture product for client
• Ship out necessary design, instructions, and paperwork for outsourced work
• Network with suppliers and outsourcing manufacturers
• Reorder supplies when necessary
• Plan and execute marketing strategy

This industry is continuously introducing new techniques and technology, so it is important that business owners strive for innovation for long-term success.  The International Sign Association  is a great resource for business ideas, industry research, and networking.

What are some skills and experiences that will help you build a successful sign business?

Prior knowledge and experience in the industry would prove beneficial for short and long-term growth. This offers a unique opportunity to learn best practices, network with suppliers and manufacturers, and get a feel for the various business tools that are on the market. This experience will also assist in identifying which facets of the industry you’re most skilled at or would generate the most profit.

When involved in a creative profession, it’s easy to lose sight of the fact that you’re running a business. Strength in marketing and running a business are critical for the owner who plans on handling that aspect of the business. Motivation, drive, and a positive attitude are what will set you apart from the rest.

Whether you plan to complete the work yourself or hire an employee for the creative work, this industry requires an artistic eye and attention to detail. Much of your work will be done collaboratively, so strong communication skills and the ability to work with people from all backgrounds is also an important skill.

What is the growth potential for a sign business?

Industry leaders indicate high profit margins and stability are two great advantages to being a part of this profession. Technological advances afford greater opportunities for expansion, with marketing and growth opportunities only limited to your goals and drive for success.

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a sign business?

Insider tips from successful sign makers include:

• Make sure you and your customer are on the same page by preparing written prices and instructions for every order. With everything in writing, you’ve covered yourself against any future issues or grievances.
• Take pictures of your successes and share them in a portfolio. This not only shows the quality of your work, it can also inspire new customers who are considering their design needs.
• Carefully consider the layout of your shop to ensure efficiency.

How and when to build a team

Unless you choose to only accept projects that you can do the work on, outsourcing companies will, in essence, be a part of your team. These outsourced projects are a great opportunity to build your business both locally and nationally, but only if you partner with the most reputable organizations. For in-house work, most entrepreneurs choose to complete the work themselves, which eliminates the need for Worker’s Comp insurance and costs associated with payroll.

If accounting, marketing, and/or business isn’t your strong suit, it is suggested that you add a professional to your team or seek out additional training to maximize profits. Most can be hired on a freelance basis, keeping costs at a minimum.

Useful Links

Industry opportunities.

• International Sign Association

Have a Question? Leave a Comment!

• Business Ideas
• Registered Agents

How to Start a Sign Business in 14 Steps (In-Depth Guide)

Updated:   February 6, 2024

BusinessGuru.co is reader-supported. When you buy through links on my site, we may earn an affiliate commission. Learn more

Global signs are on the way up, with a 2022 evaluation of $25.54 billion . With a projected compound annual growth rate (CAGR) of 2.63%, now is a great time to get involved in running a successful sign business.

From designing and fabricating signs to installing and maintaining them, many profitable niches are waiting to be filled. This article will walk you through how to start a sign business. Topics include opening a business bank account, sourcing equipment for a sign making business, how to market to your target market, and more.

1. Conduct Sign Market Research

Market research is important to opening your own sign business. It offers insight into your local market saturation, target market audience, types of small business administration necessary for sign makers, trends in exterior and interior signs, and more.

Some details you’ll learn through market research as sign makers include:

• There are over 15,000 sign manufacturing firms in the U.S., mostly small local operators.
• The top 50 companies generate only 35% of revenue, indicating fragmentation and room for expansion.
• Digital signage and vehicle wraps are fast-growing segments. Billboards are always in demand.
• B2B clients like retailers, hospitals, schools, and office buildings account for over 60% of industry revenue.
• Events, trade shows, and local festivals also require temporary signage.
• Start-up costs range from $10k to $100k depending on services offered.
• Fabrication needs space for tools like vinyl cutters, whereas design & installation have lower overheads.
• Success comes from specialization and networking; most work is won through existing relationships and word-of-mouth.
• Location matters too. Set up near business parks to access B2B clients.
• Be visible on commuter routes to capture impulse local purchases.
• While there are low barriers to entry, new players must offer competitive prices, high quality, quick turnarounds, and excellent service to thrive.
• Investing in digital capabilities like CAD design and large-format printing boosts capacity and enables customization.

In summary, the outlook for the sign industry and new players is positive. There is ongoing demand from businesses requiring signage. Specializing in high-margin services like design, vehicle wraps or digital displays provides differentiation.

2. Analyze the Competition

Understanding the competitive landscape is crucial when entering the sign industry. Competitive analysis gives you insight into local businesses, saturation in the sign business industry, and trends in business website design.

Some ways to learn about competitors include:

• Start by identifying direct competitors in your geographic area and those serving your target client base.
• Drive around commercial districts and note existing sign shops’ locations, services, quality of signs, and branding.
• Search online directories like Yelp to find additional options, and read reviews to learn the pros and cons.
• Check competitors’ visibility in results to inform your own SEO and content strategy.
• Analyze their web traffic, social following, and engagement metrics as benchmarks.
• Research services, products, prices, and unique selling propositions.
• Assess strengths to emulate and weaknesses to avoid. Look for opportunities to differentiate.
• Study their clientele and partnerships for lead-generation ideas.
• Build a competitor SWOT analysis to inform your positioning.

The analysis provides insights into customer needs, pain points, and where competitors fall short. Use it to hone your niche, ideal clients, offerings, marketing, and operations. Offer unique products like vehicle wraps, or better services through fast turnarounds, expanded hours, or eco-friendly materials.

3. Costs to Start a Sign Business

Sign businesses start with an array of startup and ongoing costs. Costs accumulate for digital printing, ads on social media platforms, and day-to-day business operations. Let’s break down costs and see how they stack up.

Start-up Costs

• When launching a sign company, the initial costs consist of legal formation, securing a location, purchasing equipment, inventory, and more.
• Legal formation runs $100-$800 depending on incorporating vs LLC. Expect to spend around $500 total for all licensing, permits, insurance, and any association fees.
• Leasing a retail or commercial space can cost $15-$30 per sq ft monthly. Plan for 500-1000 sq ft for a small starter workspace and showroom, so budget $750-$3000 monthly. Purchasing a space may be preferable long-term; small industrial buildings range from $100,000-$500,000.
• Starting, opt for used equipment; a vinyl cutter ($2000-$4000), heat press ($300-$1000), and laminator ($500-$1500) offer essentials for signs and decals. Investing $10,000-$15,000 would cover those plus a quality printer and basic tools. Look for auctions and online deals to save.
• Initial inventory like vinyl, magnets, and substrate boards will run $2000-$5000 to have on hand. If doing installs, a sign installer truck or van costs $25,000-$40,000.
• Hire an accountant ($125/hr) to determine tax registrations needed and get payroll/bookkeeping set up ($300-$500).
• A shop assistant at $15/hr would cost $31,200 annually. As an owner, plan to go without salary initially and rely on $40,000-$70,000 savings.
• All in, expect around $70,000-$150,000 to start a lean but functional sign shop. Starting on the lower end enables testing the market before expanding.

Ongoing Costs

• Rent/mortgage: $750
• Salaries: $2000
• Insurance: $150
• Equipment leases: $500
• Utilities: $300
• Office expenses: $150
• Accounting software: $50
• Advertising: $500
• Loan payments: $500
• Accounting services $1500
• Legal/professional fees $500
• Licenses & permits $200
• Insurance $1000-$5000 depending on coverage
• Tax preparation fees $300
• Employee training $1000
• Equipment maintenance $1500
• The vehicle costs $2500
• Marketing $3000-$5000
• Trade shows $2000

Overall, factor $8,000-$12,000 in fixed monthly expenses, plus $15,000-$25,000 in annual costs as a conservative estimate when budgeting for an initial 1-2 person sign shop. Pursue low-cost startup strategies like used equipment and lean staffing to conserve capital for growth.

4. Form a Legal Business Entity

When starting a sign company, the legal structure you choose impacts taxes, liability, and business operations. The main options are:

Sole Proprietorship

A sole proprietorship is the simplest, with no formal registration needed beyond licenses. All profits and losses flow through to your tax return. However, you’re personally liable for any debts or lawsuits against the business. This poses risks for a sign shop handling large orders or installation projects.

Partnership

Forming a general partnership shares liability risks among partners, but each is still fully liable. You may need to pay back business debts from personal assets. Partnerships allow the pooling of resources and skills but require legal partnership agreements to define profit shares and decision-making.

Corporation

A corporation protects owners’ assets from business liabilities and debt. Profits are taxed at the corporate rate separately from personal income. Corporations can sell stock and have shareholders. However, they require substantial recordkeeping and formalities like board meetings, annual filings, and corporate taxes. This structure is better suited to large sign companies.

Limited Liability Company (LLC)

For most sign startups, a limited liability company (LLC) offers the best of both worlds. You get liability protection similar to a corporation without all the formality. Profits and losses pass through to your taxes like a partnership. LLCs can also protect your assets if the business is sued.

5. Register Your Business For Taxes

One of the first legal steps when forming your sign business is obtaining an Employer Identification Number, or EIN, from the IRS. This unique number identifies your business for tax purposes similar to a social security number for an individual.

The good news is applying for an EIN is free and easy through the IRS website. Simply follow these steps:

• Go to irs.gov/EIN and click the “Apply Online Now” button.
• Answer the questions about your business structure and details.
• Provide your personal information for verification.
• Confirm your business activities.
• Review your application details and submit.

You’ll receive your EIN immediately on the final confirmation screen. The whole process only takes about 10-15 minutes.

In addition to your federal EIN, contact your state revenue or taxation department about registering for sales tax collection. If selling taxable goods, you must collect and remit sales tax. The registration process varies by state but typically involves an application and a nominal fee.

Having an EIN and sales tax certificate legitimizes your sign business with vendors, lenders, and government agencies. It also saves hassle with accurate tax filing and remittances down the road. Take the time upfront to formally register your business – the credibility and compliance advantages are well worth it.

6. Setup Your Accounting

Proper accounting is crucial for any business, but especially for a new sign company. Investing in organizational tools and professional services early on will save major headaches down the road.

Open a Business Bank Account

Start by separating personal and business finances. Open a dedicated business checking account to use for all revenue, expenses, payroll, etc. Never commingle personal and company funds.

Accounting Software

Next, implement small business accounting software like QuickBooks to automate tracking income, expenditures, inventory, invoicing, taxes, and more. Linking your business bank and credit card accounts enables easy transaction import and reconciliation. This streamlines record keeping and provides real-time financial insights.

Hire an Accountant

While the software does the heavy lifting, partnering with an accountant provides expertise. A bookkeeper can handle accounts receivable/payable, payroll, monthly reconciliations, and reporting for around $100-$150/month. Come tax season, an accountant will prepare and file your corporate or individual returns for $500-$1500.

Apply for a Business Credit Card

For purchases, open a business credit card in your company’s name and use it for all sign shop expenditures. Avoid mingling personal credit. Cards for new businesses have modest limits ($1000-$5000) but increase with responsible use over time.

7. Obtain Licenses and Permits

Before opening your sign company, it is crucial to ensure you have secured all necessary licenses and permits. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

At minimum, you will need a general business license which enables formal registration and taxation in your city or county. Fees are typically under $100 annually. This foundational permit makes your company official in the eyes of local government.

If designing and fabricating signs, specifically confirm these activities are covered in your general business permit. Some regions require specialized licensing for production facilities. For example, Los Angeles requires a Fabrication Unit Structural Permit for metalwork fabrication. Always check ordinances.

If installing signs or working on building exteriors, you may need additional credentials like a contractor’s license. For example in Florida, sign contractors need certain registrations and insurance. Research rules to avoid violations.

Your city or county planning department governs sign codes and permitting for things like size, placement, and illumination. Applying for sign permits and adhering to zoning ensures compliance. Some areas even require operating permits for portable signs or banners.

For e-commerce, look into local requirements around sales tax collection on shipped goods. Stay up to date on laws for states where you sell.

8. Get Business Insurance

Operating a sign business carries inherent risks that make insurance coverage essential. Without policies to protect your company, a single incident could lead to financial ruin.

For example, a fire could destroy your equipment and inventory. An employee could get injured on an install job and sue for damages. Or a Wrap could fail and damage a client’s expensive vehicle.

Being underinsured or foregoing coverage altogether leaves you vulnerable. Just one lawsuit or property loss could bankrupt your business if funds aren’t available to cover large, unexpected costs.

To get insured, first determine your specific risks and local requirements based on the services offered. Common sign shop policies include:

• General liability – Covers property damage, bodily injury, and more from accidents or harm.
• Commercial property – Protects your office, inventory, and equipment from damage/theft.
• Auto/fleet coverage – For company vehicles.
• Workers’ comp – Federally mandated for employees. Covers medical care and lost wages for job-related injuries.
• E&O insurance – Protects against claims of negligent work or financial harm to clients.

Choose a plan with adequate coverage levels for your specific risks, and add any optional policies like cyber liability or umbrella coverage. Pay premiums monthly or annually. Update coverage as your business grows.

Protecting your finances through business insurance should be a top priority. Comprehensive policies empower you to operate with confidence knowing you are protected from unforeseen losses.

9. Create an Office Space

Having a designated office provides credibility and efficiency for your sign company. An official workspace enables client meetings, design work, phone calls, and administrative tasks free from household distractions.

Home Office

Operating from a home office is an affordable starting point, with no extra rent costs. Stock an extra room with office furniture and supplies. Meet clients at their location or in coffee shops. But distractions like kids, pets, or chores can hamper productivity. Expect around $500 for the basic setup.

Coworking Office

For more professionalism, join a coworking space like WeWork . Open collaborative environments with meeting rooms, printing, WiFi, etc. foster productivity. Network with fellow entrepreneurs. Pricing averages $300-$500 monthly per dedicated desk.

Retail Office

Consider a small retail shop if designing and selling to local customers. High foot traffic yields impulse purchases. Install product displays. Manage walk-in orders and consultations. Leasing 500 sq ft would run $1000-$1500 monthly. Factor in buildout costs too.

Commercial Office

For established B2B firms, leasing commercial office space lends credibility. Customers expect a professional facility. Accommodate production machinery and a sales team. Expect $20-$40 per square foot in monthly rent, so 2000 sq ft averages $40,000-$80,000 annually.

10. Source Your Equipment

A sign shop requires specialized tools and materials like vinyl cutters, printers, and substrate boards. Stock up through new purchases, used deals, rentals, or leases.

Buying new machinery from companies like Roland , Mimaki, and Mutoh ensures the latest technology and warranties. A starter package of a printer, cutter, and accessories runs $10,000-$20,000. Financing spreads costs over time. New warrants performance but premium prices strain startup budgets.

Purchasing used equipment saves substantially. Check for auctions on sites like PublicSurplus and AuctionNation , where cities and schools sell old gear. Also browse Craigslist , Facebook Marketplace , OfferUp , and eBay for deals from other sign shops. Inspect condition and expect to make repairs. Factor in potential downtime and shorter lifespan.

Renting machinery periodically provides access without large capital outlays. Companies like BigRentz offer cutters, printers, laminators, and more for daily to monthly rentals. Useful for temporary spikes in production or trying new equipment. Downsides include frequent delivery fees and limited selection.

Leasing through vendors like FMV and Accurate Leasing locks in predictable monthly payments for 1-5 years. Conserve cash flow and upgrade more easily. But interest charges add up over time. Ensure work volume supports payments first. Consider leasing just the biggest ticket items.

11. Establish Your Brand Assets

Creating a strong brand identity is crucial for making your sign company recognizable, professional, and memorable. Investing in core assets promotes seamless operations and marketing.

Get a Business Phone Number

Start by purchasing a unique business phone number to list on all materials. Services like RingCentral offer vanity numbers, call routing, and voicemail to project capability.

Design a Logo

Next, design a logo that embodies your brand personality. Consider factors like industry, target audience, and visual identity of competitors. Services like Looka provide affordable, high-quality logo design and branding packages to fit any budget.

Print Business Cards

With a logo, create matching business cards, stationery, website, signage, and uniforms. Consistent visual branding boosts retention and perceptions. Order inexpensive, custom print materials from Vistaprint . Business cards lend credibility in sales meetings, networking events, and client pitches.

Buy a Domain Name

Purchase a domain name that matches your company name for branding continuity. Domains like Namecheap make registering your custom .com fast and affordable.

Design a Website

Building a professional website establishes your business online. Options include DIY site builders like Wix for easy drag-and-drop websites, or hiring a freelance web developer on Fiverr for custom coding. Include portfolio samples, service pages, and lead generation forms.

12. Join Associations and Groups

Joining local organizations and online communities provides invaluable connections when launching your sign company. Surround yourself with fellow industry experts for advice, referrals, and insider knowledge.

Local Associations

Seek out local chapters of national associations like the International Sign Association to access member benefits like training, advocacy, and networking. Attend mixers and events to meet other sign professionals in your region.

Local Meetups

Explore Meetup.com for relevant Meetups and events nearby. Network with other small business owners at marketing seminars and entrepreneur mixers to cross-promote. Setting up at local craft fairs or festivals also raises awareness.

Facebook Groups

Search Facebook for niche interest groups like the Wood Sign Makers: Building your business and SIGN MAKERS . The social support, advice, and connections within these free online communities are invaluable for newcomers.

13. How to Market a Sign Business

Implementing ongoing marketing is essential for attracting new sign shop customers and expanding your clientele. Leverage digital platforms, real-world promotion, referrals, and retention to boost visibility.

Personal Networking

Begin by tapping your existing network and past customers. Satisfied clients provide invaluable word-of-mouth referrals, social shares, and reviews. Deliver exemplary service, then stay top of mind with newsletters and special offers to encourage referrals. Offer a discount or gift for introductions that turn into sales.

Digital Marketing

For digital marketing, consider:

• Search ads through Google Ads target local searchers. Geo-fencing targets nearby smartphones.
• Facebook and Instagram ads showcase photos of your signs and designs. Retarget customers who visited your site.
• Start a YouTube channel with sign fabrication tutorials, portfolio walkthroughs, and behind-the-scenes.
• Create a company blog with tips for business signage. Optimize articles for local SEO.
• Email marketing nurtures leads with design inspiration and promo codes. Collect emails onsite with a popup.
• Update Google My Business listing with portfolio images. Request customer reviews.
• Sponsor local influencers or events for exposure to targeted audiences.

Traditional Marketing

For traditional marketing options:

• Network at the chamber and business association events. Bring promotional products.
• Hold an open house or shop tour for colleagues and vendors to see your operation.
• Partner with complementary providers like vehicle wrap installers or commercial interior designers for co-marketing.
• Distribute flyers and personalized letters to businesses that need signage. Follow up.
• Donate a banner or yard signs to community fundraisers in exchange for recognition.
• Rent a booth at industry trade shows and conferences.

Aim for an omnichannel mix based on your audience, service area, and budget. Stay active on top platforms where your customers spend time. Consistency and persistence grow brand awareness and sales over time.

14. Focus on the Customer

Providing exceptional customer service is crucial for any company, but especially so for a sign shop where projects are unique and clients have high expectations. Satisfied customers become vocal advocates who refer new businesses. Some ways to increase customer focus with potential customers and current ones include:

• Start by being responsive. Return all calls and emails ASAP, even if just to acknowledge and provide an update. Sign needs often have quick turnarounds so delays lose trust.
• Listen attentively to fully understand their branding and design needs. Then provide creative solutions tailored to their goals, audience, and budget.
• Keep clients involved and updated throughout the process. Show digital proofs for feedback. Provide production photos and videos that get them excited to see the result.
• When delivering, walk through the finished product and immediately resolve any concerns. Adjust or redo anything that falls short of expectations. Their long-term perception is shaped by how issues are handled.
• Follow up consistently after delivery to build the relationship. Check if any questions came up during installation or about use and care. Ask for feedback to improve processes.
• Go above and beyond to make each customer feel valued. Add little personal touches like handwritten notes or small branded gifts. Help them show off the final sign on social media.

Providing an incredible client experience, not just an average transactional one, earns referrals, repeat business, and positive word-of-mouth. The extra effort to wow customers at every step ultimately fuels growth.

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How to Start a Successful Sign Business Without Experience

• October 18, 2019

Can you start a successful sign business without experience? Yes–so long as you surround yourself with the right people.

Today’s post compares the traditional path to launching a sign shop with starting as a Signworld partner .

The Traditional Path To Self-startership

Here’s a quick rundown of what inexperience sign shop owners will have to accomplish in the pre-opening phase:

• Develop a professional skill set. Before you even think of starting a sign business on your own, you’d better have the skills to back it up!
• Plan your business. The next step is to develop a business model. What will be your initial costs? Who is your target market? How long will it take for your company to break even? What will you name your business? Of course, planning a business and developing a profitable business model is easier said than done. Many businesses fail here, long before their doors open for business. Without proper business schooling or the help of somebody who’s walked this road before, the learning curve can be steep and unforgiving. Without experience, your only options are to invest in training, have somebody else do it for you, or completely wing it.
• Purchase your sign equipment. Once you’ve decided what signage you want to sell, you’ll need to acquire the necessary equipment. Without extensive contacts with vendors and sign industry reps, it can be tough to find a good deal–and that’s assuming you already know exactly what you’re looking for. Since you don’t have experience, you’ll need to dump even more labor hours into research, though that won’t protect you from oversight and errors in and of itself.
• Legalize your business and set up accounting. It’s a good idea to establish a legal business entity (such as an LLC) to prevent you from being personally liable in the event your business is sued. There are many ways to do this in 2019–some companies will even walk you through the process online. At this stage, you should also register for taxes, open a business bank account, set up your business accounting, acquire business insurance, and obtain all necessary permits and licenses.Unfortunately, this is the point where many self-starters stumble, lacking the skills or experience to handle these legal matters in a timely manner. And speed is a factor: as we all know, idling in the pre-opening phase has doomed many promising business ventures.
• Establish a web presence. A business website allows customers to learn more about your company, explore products and services, and even design and purchase signs entirely online. It is a tremendous asset for advertising, branding, networking, reputation management, and sales. Your website should work together with your social media and online citations to create a strong, authoritative, and up to date business presence.Here again, many self-starters struggle. Website design and online marketing are two vast disciplines that could cost you years of studying and thousands of dollars in tuition, web support, hosting, and trial-and-error paid advertising to master. Too many sign shops open their doors for business with no web presence, or terribly dated or unfinished websites that do more harm than good.

A better alternative: Start a successful sign business with Signworld

No experience? No problem. These are just a few of the ways we address the common pitfalls of self-startership:

• All the training you ever need. The Signworld business alliance offers all partners individualized training in signmaking hardware/software, installation, supplier relations, point-of-sale, marketing, website management, and all daily operations required to build a successful sign business. You do not need any experience or sign making skills to take advantage of our opportunity.
• Proven business plan. With Signworld, there’s no need to develop your own business plan. Put our profitable and cost-efficient model to work for you instead.
• A complete sign shop package. Don’t worry about tracking down individual vendors, learning what equipment you need, and finding good deals. Our start-up package includes everything you need to offer all in-demand business signage in 2019.
• Streamlined start-up process. We walk our partners through all legal and financial setup to save them any headaches while protecting them from any liabilities. You don’t need a law degree or a business planning background for perfect compliance and fast results.
• Total web setup and support. Let us set up your web presence and support you every step of the way with proven strategies and processes. Some of our owners make more than half of their sales through their websites alone, even though they joined the alliance with no real web savvy!

Call 888-765-7446 to learn more about starting a sign shop with the Signworld business alliance.

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Become an Owner

How to Start a Profitable Wooden Sign Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a wooden sign business plan., 3. develop a wooden sign brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for wooden sign., 6. open a business bank account and secure funding as needed., 7. set pricing for wooden sign services., 8. acquire wooden sign equipment and supplies., 9. obtain business insurance for wooden sign, if required., 10. begin marketing your wooden sign services., 11. expand your wooden sign business..

Embarking on a new venture requires a keen understanding of the marketplace. For your wooden sign business, performing a thorough market analysis is crucial to identifying your target customers, competitors, and potential for growth. Here's how you can get started:

• Analyze the customer base: Research who is buying wooden signs, understand their preferences, and identify niche markets. Look at demographics, buying patterns, and customer needs.
• Examine competitors: Identify other businesses offering similar products. Assess their product range, pricing, marketing strategies, and market share. Learn from their successes and weaknesses.
• Understand market trends: Stay up-to-date with current and emerging trends in home decor and personalized products. Watch for new design trends, materials, and technological advancements in sign-making.
• Assess the market size and growth potential: Estimate the size of the market for wooden signs and project future growth based on historical data and industry reports.
• Evaluate the supply chain: Research suppliers of raw materials and equipment necessary for creating wooden signs. Consider the quality, cost, and reliability of these suppliers.
• Regulatory considerations: Be aware of any regulations or certifications that may apply to the production and sale of wooden signs.

Are Wooden Sign businesses profitable?

Yes, wooden sign businesses can be profitable. To maximize profitability, it is important to focus on producing high-quality products, setting competitive prices, and marketing the business effectively. Additionally, it is important to have a strong understanding of the industry and the target market in order to ensure the business is successful.

Embarking on the journey of starting a wooden sign business requires a well-structured plan that outlines your vision and the steps to achieve it. A comprehensive business plan should serve as a roadmap guiding you through the intricacies of establishing, managing, and growing your wooden sign enterprise. Below are key elements to include in your draft:

• Executive Summary: Briefly describe your business, the products you'll offer, and your unique value proposition.
• Market Analysis: Research your target market, customer demographics, and analyze your competitors.
• Marketing Strategy: Define how you'll attract and retain customers, including pricing, promotion, and distribution channels.
• Operations Plan: Detail the production process, equipment needed, and day-to-day operations.
• Financial Projections: Include startup costs, pricing strategy, sales forecast, and profit margin analysis.
• Management Team: Outline the roles and responsibilities of key team members and any external support systems.
• Risk Assessment: Identify potential risks and outline strategies to mitigate them.

How does a Wooden Sign business make money?

A wooden sign business can make money by selling custom-made signs to businesses, organizations, and individuals. They can also create and sell other customized items such as signs for weddings, birthdays, and special occasions. The business can also offer design services to help customers create the perfect sign for their needs. Additionally, the business can offer services to install the signs or to provide maintenance or repair services for existing signs.

Developing a brand for your wooden sign business is crucial to creating a recognizable identity that will resonate with your customers and set you apart in the marketplace. This involves finding your unique voice and visual style that reflects the quality and craftsmanship of your products. Here are some key points to consider:

• Define Your Brand Personality: Choose a brand personality that aligns with your target audience’s values and interests, such as rustic charm, modern minimalism, or playful creativity.
• Create a Memorable Logo: Design a logo that captures the essence of your brand and is easily identifiable. It should work well on various materials and sizes, from your signs to your business cards.
• Select a Color Palette: Pick a color scheme that complements your wooden signs and is consistent with your brand’s personality. These colors should be used across all your marketing materials.
• Develop a Tagline: Craft a catchy and concise tagline that communicates the benefits of your products and sticks in the minds of your customers.
• Establish Brand Voice: Decide on a tone for your communications, whether it’s friendly, professional, or whimsical, and ensure it's consistent in all your messaging.
• Consistent Branding: Apply your branding consistently across all platforms, from your website and social media to packaging and advertising, to build a cohesive brand image.

How to come up with a name for your Wooden Sign business?

When coming up with a name for your Wooden Sign business, consider a name that reflects the unique type of signs you produce. Aim to make the name memorable and creative. Think of a name that is easy to spell and pronounce, and that conveys the personality of your business. Brainstorm a few words that describe your business and use them to create a unique name.

Before making your mark in the wooden sign industry, it's crucial to establish your business legally to ensure compliance and protect your interests. Formalizing your business registration is a fundamental step that varies based on your location, but typically involves the following actions:

• Choose a Business Structure: Decide whether you'll operate as a sole proprietorship, partnership, LLC, or corporation, each with its own legal and tax implications.
• Register Your Business Name: Ensure your business name is unique, reflects your brand, and is registered with the appropriate state authorities, sometimes through a 'Doing Business As' (DBA) filing.
• Obtain Necessary Permits and Licenses: Research and secure any required local, state, and federal permits or licenses to legally manufacture and sell wooden signs.
• Apply for an EIN: If you have employees or operate as a corporation or partnership, obtain an Employer Identification Number (EIN) from the IRS for tax purposes.
• Register for State Taxes: Register with your state tax agency to handle sales tax, payroll tax, and any other applicable state taxes.
• Comply with Local Zoning Laws: Verify that your business location is zoned for commercial activity, especially if you're operating from home.

Resources to help get you started:

Access invaluable resources designed specifically for wooden sign entrepreneurs, offering insights into market trends, operational excellence, and strategies for business expansion:

• Woodworking Network: A comprehensive platform providing news, best practices, and market trends for wood industry professionals. Visit site .
• Signs of the Times: Offers the latest on sign industry news, including wooden signs, with articles on techniques and business tips. Visit site .
• Custom Woodworking Business Magazine: Features advice on business management, woodworking techniques, and showcases success stories in the custom woodworking business. Visit magazine .
• The Woodworking Institute: Provides resources, education, and networking opportunities for woodworking professionals, including those making wooden signs. Visit institute .
• Small Business Administration (SBA): Offers a wealth of business advice, planning resources, and guides on financing for small businesses, applicable to wooden sign enterprises. Visit site .

Starting a wooden sign business requires compliance with various regulations. To ensure your business operates legally, it's essential to obtain the necessary licenses and permits. Here's a guide to help you navigate this process:

• Research Local Zoning Laws: Check with your local municipality to ensure your business location is zoned for manufacturing and selling wooden signs.
• Business License: Apply for a general business license with your city or county clerk's office to legally operate your business.
• Sales Tax Permit: If your state has sales tax, you will need to register for a sales tax permit with your state's Department of Revenue to collect and remit sales tax.
• Environmental Permits: Since you're working with wood, check if you need any environmental permits regarding dust collection and waste disposal.
• Sign Permit: Some localities require a sign permit before you can create or install signs for clients, especially if they are displayed outdoors.
• Employer Identification Number (EIN): If you plan to hire employees, you'll need an EIN from the IRS for tax purposes.
• Home Occupation Permit: If you're operating from home, this permit ensures that your business complies with specific home-based business regulations.

What licenses and permits are needed to run a wooden sign business?

Depending on the type of sign business and the location, the necessary licenses and permits may vary. Generally, a business license and other local permits may be required to operate a wooden sign business. Additional permits may also be required depending on the location, type of signs, and/or products/materials used. It is important to check with local authorities regarding any additional requirements before beginning operations.

Opening a business bank account is a critical step for managing your wooden sign business's finances, and securing funding can help you cover startup costs and grow your business. Here's a guide to help you establish your financial foundation:

• Research different banks to find the best business banking options, considering fees, services, and accessibility. It's often beneficial to choose a bank familiar with small businesses.
• Prepare the necessary documents, which typically include your business license, EIN (Employer Identification Number), and incorporation papers if applicable.
• Once your account is set up, utilize accounting software to track your finances and separate personal and business expenses.
• For funding, assess how much capital you'll need by creating a detailed business plan outlining your expected expenses and revenue.
• Explore various funding sources such as small business loans, business credit cards, personal savings, or investment from family and friends.
• Consider crowdfunding platforms or local business grants for additional funding opportunities, especially if you have a unique business proposition or community support.
• Stay informed about repayment terms and interest rates to ensure any debt taken on is manageable and won't hinder your business growth.

Setting the right pricing for your wooden sign services is crucial to ensure you cover costs, attract customers, and remain competitive. Here are some tips to help you price your offerings effectively:

• Cost Analysis: Calculate the cost of materials, labor, overheads, and any additional expenses to ensure each sign is priced to cover costs and provide a profit margin.
• Competitive Pricing: Research competitors' prices to ensure your services are competitively priced. You can price slightly higher if you offer superior quality or unique designs.
• Value-Based Pricing: Consider the perceived value of your signs to the customer. Custom, handcrafted signs can often command a higher price due to their uniqueness and personalization.
• Tiered Pricing Structure: Offer different pricing tiers based on sign size, complexity, and customization level to cater to a wider range of budgets and preferences.
• Discounts and Deals: Introduce bulk order discounts, seasonal deals, or loyalty programs to encourage larger purchases and repeat business.
• Transparent Pricing: Ensure your pricing is clear and transparent to avoid customer confusion and mistrust. Include any additional costs like shipping or taxes in your advertised prices.

What does it cost to start a Wooden Sign business?

Initiating a wooden sign business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $8500 for launching such an business. Please note, not all of these costs may be necessary to start up your wooden sign business.

Starting a wooden sign business requires careful selection of equipment and supplies to ensure you can create high-quality products. Here’s a guide to help you acquire the necessary tools and materials to bring your wooden sign creations to life.

• Wood: Choose high-quality wood like pine, cedar, or oak that's suitable for sign making.
• Saws: Invest in a reliable table saw and jigsaw for precise cuts.
• Sanders: Get both an orbital sander and sandpaper of varying grits for smooth finishes.
• Paints and Stains: Select a range of paints, stains, and sealants for color and protection.
• Brushes and Rollers: Acquire various sizes for different detail work and larger surfaces.
• CNC Router: Consider a computer-controlled router for intricate designs and lettering.
• Clamps and Adhesives: Ensure you have clamps and strong wood glue for assembling signs.
• Vinyl Cutter: A vinyl cutter can be useful for creating stencils and decals.
• Safety Gear: Don't forget protective eyewear, gloves, and a dust mask for your safety.

List of Software, Tools and Supplies Needed to Start a Wooden Sign Business:

• Computer with CAD software and a graphics/design program
• Router table
• Drill press
• Air compressor
• Sandpaper, bristle brushes, steel wool
• Finish materials (stains, paints, varnishes, etc.)
• High-speed engraving bit
• Carving and routing bits
• Vinyl cutting machine
• Wooden sign blanks
• Vinyl lettering

Securing business insurance is a critical step in protecting your wooden sign business from unforeseen events. Appropriate insurance coverage will safeguard your finances, assets, and provide peace of mind. Consider the following types of insurance:

• General Liability Insurance: Protects against financial loss as a result of bodily injury, property damage, or lawsuits that may arise from your business operations.
• Product Liability Insurance: Offers protection in case your wooden signs cause harm or are defective, covering legal fees and damages awarded.
• Commercial Property Insurance: Covers loss and damage to your physical assets, such as your workshop, tools, and inventory, due to incidents like fire, theft, or natural disasters.
• Business Interruption Insurance: Helps compensate for lost income if your business cannot operate due to covered disruptions.
• Professional Liability Insurance: Also known as errors and omissions insurance, it can cover claims related to negligence or mistakes in your professional services.

Marketing your wooden sign services is vital for attracting customers and growing your business. A strategic approach will help you reach your target audience effectively. Here are some essential steps to begin marketing your wooden sign business:

• Develop a strong brand identity that includes a memorable logo, color scheme, and tagline to make your business stand out.
• Create a professional website showcasing your portfolio, services, and customer testimonials to build credibility.
• Utilize social media platforms like Instagram, Pinterest, and Facebook to display your work and engage with potential customers.
• Offer promotions or discounts to first-time buyers to encourage sales and attract new clients.
• Participate in local craft fairs, farmers' markets, and community events to showcase your signs and network with local customers.
• Collaborate with local businesses and interior designers who might recommend your services to their clients.
• Invest in search engine optimization (SEO) for your website to increase visibility in search engine results.
• Request reviews and referrals from satisfied customers to build trust with potential clients.
• Consider paid advertising options, such as Google Ads or social media ads, to reach a broader audience.

Once your wooden sign business is established and running smoothly, it's time to think about growth and expansion. This can be done in a variety of ways, from diversifying your product range to reaching new markets. Here are some strategies to consider when looking to expand your wooden sign business:

• Diversify your product offerings: Introduce new designs, sizes, and customizable options to cater to a wider audience.
• Explore new markets: Target corporate clients, event planners, and other businesses that may need custom signage on a regular basis.
• Enhance your online presence: Optimize your website for search engines, engage with customers on social media, and consider online advertising to attract more visitors.
• Collaborate with local businesses: Partner with home decor shops, gift stores, or wedding venues to sell your signs in their establishments.
• Participate in craft fairs and markets: Set up booths at local and regional events to gain exposure and network with potential customers and suppliers.
• Invest in new technology: Use advanced tools such as CNC routers or laser cutters to improve efficiency and allow for more intricate designs.
• Offer workshops: Host classes teaching others how to make their own signs, which can also serve as a new revenue stream.

How To Start a Sign Business

So, you want to start a sign business, i don’t blame you at all.  owning a sign shop can be a lot of fun and it has allowed me live a pretty full life.  i get to meet new people, design and create cool & useful signs, wine & dine prospective clients and travel to some pretty cool places.  most of all … i get to color pretty pictures for a living … at least that’s what i tell the kids..

… but before you do anything … you should ask yourself some questions.  Why, exactly, do you want to get in the sign game?  Why do you want to own a sign shop?  Why do you want to start a sign business?  Do you want creative freedom?  Do you like the hands-on aspect of building signs?  Do you think that there is “easy money” in the sign industry?  Do you want to build a solid and stable small business to retire in?

Whatever your reasons are, until you know exactly WHY you are starting a sign company then it can be difficult to figure out if you’ve succeeded.

Alright, if you are still sure you want to get into the sign industry and you still have a dream to own your own sign shop, then read on.

Best of luck and keep checking back as we continue to expand the site and add more useful tools and information.

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What Do I Need to Open a Print Shop Business?

How to make money putting up signs or advertisements, what makes good signage.

• How to Make an Angle Sign on a Keyboard
• How Can Signs Affect a Business?

Starting a sign business requires knowledge of various markets, sign types, manufacturing, installation and selling skills. Signs are manufactured in a number of ways, from traditional hand painting, engraving and neon tube shaping to computer-cut vinyl, screen printing and digital printing. Each method requires specialized equipment and skill, but many sign shops offer in-house fabrication of one or two sign-types and outsource others to trade-only suppliers. Starting your sign shop begins with market research and a business plan.

Perform market research in your area to obtain information on prospective customers, possible signage needs and sign shop competitors. Market research is a necessary element of any business startup, used for the assessment and creation of business strategies and probable market needs.

Create a business plan for your sign business. You may create a business plan on your own on hire a business consultant. A properly formatted business plan will be necessary if you are applying for outside financing.

Apply for financing if needed through your local bank or the U.S. Small Business Administration (See Resources).

Obtain a local business permit, state tax registration and state retail sales certificate. Some states will require you to obtain a contractor license if you install or repair certain types of signage. If our sign business will operate as a corporation, limited liability company or partnership, file the necessary paperwork with your state's business office. You will also need a taxpayer identification number and Employer Identification Number from the Internal Revenue Service if you are hiring employees.

Secure your shop space or office. You may run your sign business from home if local zoning ordinances allow, or rent a retail or warehouse space that suits your needs. Your work space size and utility requirements will vary according to the type of sign business you are starting.

Purchase necessary sign making and installation equipment, supplies and a reliable vehicle if you will offer delivery or on-site service. Your equipment, supplies and vehicle needs will vary according to the type of sign business you will operate. Your sign equipment and supply distributor is an excellent source of information, and may offer bundled startup shop packages.

Obtain business liability insurance and surety bonding if required in your state from your insurance company if you are installing or maintaining signs on customer property.

• SignIndustry: The Pitfalls of Starting a Sign Business, Part I
• Sign & Digital Graphics: So You Want to Start a Wide Format Printing Business?
• Entrepreneur: Creating Memorable Business Signs
• U.S. Small Business Administration
• Visit the SCORE websites for free startup advice, business plan help and loan assistance.
• Specialize in one or two in-house sign manufacturing methods and outsource others with partner trade-only sign companies.
• Avoid installation or repair of signage you are not familiar with or licensed for, particularly electrical signage and signs that are integrated with architectural features used as structural supports. Contract with licensed electrical contractors or structural engineers experienced with signage to avoid injury and possible fines and legal penalties.
• Always obtain local building permits before installing any signage to avoid fines and penalties.

Matt McKay began his writing career in 1999, writing training programs and articles for a national corporation. His work has appeared in various online publications and materials for private companies. McKay has experience in entrepreneurship, corporate training, human resources, technology and the music business.

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Print Shop Business Plan Template

Written by Dave Lavinsky

Print Shop Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their print shop companies.

If you’re unfamiliar with creating a print shop business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a print shop business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Print Shop Business Plan?

A business plan provides a snapshot of your print shop business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Print Shop

If you’re looking to start a print shop business or grow your existing print shop company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your print shop business to improve your chances of success. Your print shop business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Print Shop Businesses

With regards to funding, the main sources of funding for a print shop business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for print shop companies.

Finish Your Business Plan Today!

How to write a business plan for a print shop business.

If you want to start a print shop business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your print shop business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of print shop business you are running and the status. For example, are you a startup, do you have a print shop business that you would like to grow, or are you operating a chain of print shop businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the print shop industry.
• Discuss the type of print shop business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of print shop business you are operating.

For example, you might specialize in one of the following types of print shop businesses:

• Digital printing : This type of printing is one of the most cost-effective and fast printing processes available today. Electronic files and digital images replace the need for paper, press set-up and ink, which helps reduce the carbon footprint on the earth.
• Offset lithography printing: Used for magazines, circulars, brochures and books, this type of print shop specializes in larger volumes and includes traditional methods of binding.
• Screen printing: Any material that is not flat is a candidate for screen printing: shirts, hats, fabric bags, etc. Screen printing forces ink through a screening process that is replicated onto fabric or other materials used.
• 3D printing: This type of printing is performed through design, initiated by a computer program, followed by the print process in a 3D printer. The 3D printer is calibrated and outfitted with special plastics to fulfill the specifications of the 3D computer program.

In addition to explaining the type of print shop business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of printing projects completed, the amount of revenue earned, or reaching X number of clients served, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the print shop industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the print shop industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your print shop business plan:

• How big is the print shop industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your print shop business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your print shop business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, charitable organizations, corporations, and innovators.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of print shop business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Print Shop Business Plan in 1 Day!

Don’t you wish there was a faster, easier way to finish your business plan?

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other print shop businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. Stores that house copy machines or overseas service companies may be examples of indirect competitors. You will want to mention any direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of print shop business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide bundled services including printing and binding?
• Will you offer large 3D printing projects that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a print shop business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of print shop company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide cover design, book layout and digital printing to create a niche service for authors?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your print shop company. Document where your company is situated and mention how the site will impact your success. For example, is your print shop business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your print shop marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your print shop business, including answering calls, planning and providing printed items or 3D printed items, billing customers and assisting with maintenance of equipment, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth print project , or when you hope to reach $X in revenue. It could also be when you expect to expand your print shop business to a new city.

Management Team

To demonstrate your print shop business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing print shop businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a print shop business or successfully running a small co-op of screen printers.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 5 new customers per day, and/or offer discounted packaged pricing? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your print shop business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a print shop business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of corporations on a monthly printing contract.

Writing a business plan for your print shop business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the print shop industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful print shop business.

Print Shop Business Plan FAQs

What is the easiest way to complete my print shop business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your print shop business plan.

How Do You Start a Print Shop Business?

Starting a Print Shop business is easy with these 14 steps:

• Choose the Name for Your Print Shop Business
• Create Your Print Shop Business Plan
• Choose the Legal Structure for Your Print Shop Business
• Secure Startup Funding for Your Print Shop Business (If Needed)
• Secure a Location for Your Business
• Register Your Print Shop Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Print Shop Business
• Buy or Lease the Right Print Shop Business Equipment
• Develop Your Print Shop Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Print Shop Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Print Shop business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how a Growthink business plan writer can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Signs And Lettering Shop Business Plan

Signs and lettering shops can target key demographics and establish projects within the residential market by using this free, printable business plan.

Sample text from Signs And Lettering Shop Business Plan:

1.0 Executive Summary

Introduction: [COMPANY NAME] was formed in 2006. [NAME] and [NAME] are here to provide the best products and services to their customers and community. In the past four years they have been able to provide products and services to many local businesses and individuals in the area, like race car drivers, excavation businesses, real estate agents, churches, fire departments (for two local towns), tow truck services, and charity events where we donated the vinyl.

Our Services: [COMPANY NAME] provided the following products:

• Real estate signs

• Sign boards

Graphics on:

• Airplanes

• Tow trucks

The Market: In 2009, the U.S. sign industry had shipments of $49.5 billion and employed 262,700 employees. The most recent U.S. Census Bureau data (2006) reported "sign manufacturing" as an $11.7 billion industry. For sign companies and those suppliers selling products and services to sign companies, accurate information on the profile of the industry is crucial to making informed, well-founded decisions about how and where to locate facilities, pursue business opportunities, and develop products to serve new markets.

Financial Considerations: The current financial plan for [COMPANY NAME] is to obtain grant funding in the amount of $106,000. The grant funds will be used to expand the signage and Lettering business in the following ways.

• Additional equipment

• Hire additional personal

• Purchase additional equipment needed to expand his business

• Capital reserve

The major focus for grant funding is as follows:

• 50% women owned business

• Job creation

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How to Start a Sign Business

Complete Guide to Starting and Operating a Successful Sign Shop

Sign Shop Business Plan

A good business plan is a helpful tool to help you keep organized and on track as your setup your vinyl graphics sign shop. Like a good map, it can help you get where you want to go. Your business plan will serve as a blueprint that will help you visually layout your business strategy and allow you to make changes on paper first before you implement things for real. A good business plan should accomplish the following goals:

-A good business plan gives your sign business a specific path to follow. It will help you create your business the way you want it to be. -A good business plan can communicate your business strategy to your employees and customers. It can establish your plan for the company and will let you to measure your progress using your plan as a benchmark. -A good business plan can help you grow as a sign business owner by helping you in concentrate on things like competition and growth opportunities. It will force you to change your though process from that of a standard consumer to that of a business man. -A good business plan provides your lending institution or partners with insight into what your goals and objectives are. -A good business plan prepares you to manage your business, rather than letting your business to manage you. -A successful business plan sets realistic goals, is factual and objective, and presents your goals in measurable terms.

Your Business plan can be laid out in many ways and can vary in length, however, all successful plans convey the following information clearly and concisely:

-The nature of your business (what product or service is your company going to provide the public) -Your business’s goals and objectives. (where do you want to be in 3 years) -The steps you plan to take to achieve your objectives -An action plan for implementing your plan -Anticipated potential problems and strategies for overcoming them

Your business plan should answer the following questions.

-Who are your potential customers? -Why will they purchase your product or service? -What is your marketing plan? -Who are your competitors? What are their strengths and weaknesses and how will you compete with them? -Which of your management skills are weak. How will you compensate? -What are your current financial resources? -What is your projected financial condition of your company over a set period of time!

As stated before there is no one “correct” format for a business plan. However, most effective business plans include the same basic information. More important than a specific format, however, is your ability to present your ideas in a clear and concise manner. Many people would like to skip having to write out a plan but doing that is like leaving on a trip with no map, no compass and no directions. You simply do not know where you will end up.

How to write a business plan for a printing shop?

Putting together a business plan for a printing shop can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing printing shop, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a printing shop?

• What information is needed to create a business plan for a printing shop?
• How do I build a financial forecast for a printing shop?

The written part of a printing shop business plan

• What tool should I use to write my printing shop business plan?

Having a clear understanding of why you want to write a business plan for your printing shop will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a printing shop business plan.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your printing shop is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your printing shop, you'll have to:

• Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
• Determine the pace at which the business needs to progress to meet its objectives as scheduled,
• Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To get visibility on future cash flows

If your small printing shop runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your printing shop's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your printing shop business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your printing shop's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your printing shop.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your printing shop and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your printing shop's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your printing shop, let's explore what information is required to create a compelling plan.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Information needed to create a business plan for a printing shop

Drafting a printing shop business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a printing shop

As you consider writing your business plan for a printing shop, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your printing shop.

You might find that customers may be increasingly interested in non-traditional printing options, such as vinyl prints, canvas wraps, and other specialty products. Additionally, customers could be looking for more eco-friendly printing options, such as recycled paper or water-based inks.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your printing shop.

Developing the marketing plan for a printing shop

Before delving into your printing shop business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a printing shop

As you embark on starting or expanding your printing shop, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

The staffing costs for a printing shop might include wages for a manager, customer service representatives, and production workers, as well as payroll taxes and benefits. The equipment costs might include the purchase of printing presses, paper cutters, computers, and software, as well as ongoing maintenance and upkeep of the machinery.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your printing shop's financial forecast?

The financial forecast of your printing shop's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a printing shop are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a printing shop shows how much revenue and profit your business is expected to make in the future.

A healthy printing shop's P&L statement should show:

• Sales growing at (minimum) or above (better) inflation
• Stable (minimum) or expanding (better) profit margins
• A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established printing shop.

The projected balance sheet of your printing shop

The balance sheet for a printing shop is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your printing shop's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your printing shop's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The projected cash flow statement

A cash flow forecast for a printing shop shows how much cash the business is projected to generate or consume.

The cash flow statement is divided into 3 main areas:

• The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
• The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
• The financing cash flow shows how much cash is raised or distributed to investors and lenders

Looking at the cash flow forecast helps you to ensure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

It is also a best practice to include a monthly cash flow statement in the appendices of your printing shop business plan so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your printing shop as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your printing shop, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your printing shop business plan, let's shift our focus to the written part of the plan.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The written part of a printing shop business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a printing shop business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your printing shop's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your printing shop's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

In your printing shop business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your printing shop, you may emphasize the potential benefits of the area. You could highlight the area's access to a large customer base, its business-friendly environment, and its potential for growth. You might mention that the area has transportation links which could facilitate the delivery of goods, and is well-positioned to reach other markets. Additionally, you could point out the proximity to amenities such as restaurants, entertainment, and other services. Overall, you may present the area as an attractive destination for businesses that could realize a good return on their investment.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your printing shop might offer services such as full-colour printing, large format printing, and custom design to its customers. Full-colour printing is an ideal choice for businesses that need to create promotional materials, such as brochures, flyers, and posters. Large format printing is perfect for producing banners, signs, and posters, and custom design can help customers create unique visuals with the help of a professional designer. All of these services are designed to help customers create marketing materials that will help attract more customers to their business.

4. The market analysis

When presenting your market analysis in your printing shop business plan, you should detail the customers' demographics and segmentation, target market, competition, barriers to entry, and any regulations that may apply.

The goal of this section is to help the reader understand how big and attractive your market is, and demonstrate that you have a solid understanding of the industry.

You should start with the demographics and segmentation subsection, which gives an overview of the addressable market for your printing shop, the main trends in the marketplace, and introduces the different customer segments and their preferences in terms of purchasing habits and budgets.

The target market section should follow and zoom on the customer segments your printing shop is targeting, and explain how your products and services meet the specific needs of these customers.

For example, your target market might include small businesses. This segment would include those who need high-quality printing services in order to create materials for their business operations, such as brochures, business cards, and flyers. Additionally, they may need more specialized printing services such as large-format printing or specialty papers.

Then comes the competition subsection, where you should introduce your main competitors and explain what differentiates you from them.

Finally, you should finish your market analysis by giving an overview of the main regulations applicable to your printing shop.

5. The strategy section

When you write the strategy section of your printing shop business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your printing shop may face the risk of a decrease in demand for print products, as more businesses switch to digital formats. This could mean that your shop has to adjust its services to accommodate new technologies, or risk losing customers. Additionally, your shop might face the risk of a disruption in its supply chain, either due to a natural disaster or an unexpected increase in demand. This could lead to delays in the delivery of materials, resulting in a disruption of your operations.

6. The operations section

The operations of your printing shop must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your printing shop - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as a large printing press and a variety of inks and papers. These items could be considered intellectual property of the printing shop, as they are integral to the operations of the business. Additionally, the shop might have a portfolio of designs that it has produced over time, as well as customer databases and contacts, which could be considered intellectual property as well.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will present the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of what goes in your printing shop business plan, let's look at the solutions you can use to draft yours.

What tool should I use to write my printing shop's business plan?

In this section, we will be reviewing the two main solutions for creating a printing shop business plan:

• Using specialized online business plan software,
• Outsourcing the plan to the business plan writer.

Using an online business plan software for your printing shop's business plan

The modern and most efficient way to write a printing shop business plan is to use business plan software .

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Hiring a business plan writer to write your printing shop's business plan

Outsourcing your printing shop business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the printing shop business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your printing shop's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a printing shop business plan is not advisable. Allow me to explain the reasons.

Firstly, creating an accurate and error-free financial forecast on Excel or any spreadsheet demands technical expertise in accounting principles and financial modelling. Without a degree in finance and accounting and significant financial modelling experience, it's unlikely that the reader will fully trust your numbers.

Secondly, relying on spreadsheets is inefficient. While it may have been the go-to option in the past, technology has evolved, and software now performs such tasks much faster and more accurately.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software offers ease in comparing actuals versus forecasts and maintaining up-to-date forecasts for clear visibility on future cash flows, as we discussed earlier in this guide. Such tasks are cumbersome when using spreadsheets.

Now, let's address the written part of your printing shop business plan. While it may be less prone to errors, using software can significantly boost productivity. Word processors lack instructions and examples for each section of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they lack automated formatting capabilities.

In summary, while some entrepreneurs may consider Word or Excel for their business plan, it's far from the best or most efficient solution when compared to specialized software.

• A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
• Having an up-to-date business plan is the only way to keep visibility on your printing shop's future cash flows.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your printing shop. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

• In-depth business plan structure
• Key steps to write a business plan?
• Free business plan template

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Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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