Initial investment: 1,300,000 rubles
♦ Business plan payback period: 24 months
♦ Rate of return: 45%
Every day more and more private organizations begin to work that need printing services in one form or another (advertising in newspapers and flyers, menus, business cards).
As a rule, they require a small circulation. Therefore, entrepreneurs are purposefully looking for small companies that are ready to work with small volumes of orders for reasonable money.
A detailed printing business plan is the first thing you need to start this profitable business.
An ideal option for beginners in this field would be to open a mini printing house.
This option has a number of advantages:
- payback many times faster;
- a smaller initial investment than is required to open a large printing services business;
- there is great potential for expansion.
Typography Business Plan: Planning
Resume for a typography project
This business plan is a project for the creation and development of the N printing house in Moscow.
The organization will be located in the premises at the address: Moscow, st. X, d. 1.
The building is within walking distance from the central square, which makes it accessible to residents from anywhere in the city. At the same time, the cost of rent is much lower than for similar areas in the center.
The objectives of the business plan are:
- Satisfy the needs of customers in obtaining printing services at an affordable price, but at the same time high quality.
- Get profit.
- Creation of additional jobs.
It is worth going back to the goals stated in the business plan of the printing house from time to time to check: is it moving in the right direction?
Printing house services
Basically, the provision of printing services to customers forms three categories:
- Newspaper printing and advertising production.
- Magazine production and book production.
- Manufacture of packaging products, labels, stickers for goods.
At the same time, such a type of service as printing brochures and calendars (which are usually called promotional products) is carried out by almost all printing houses.
After all, the level of demand for these services is the highest and the population needs to get the result as quickly as possible.
On this urgent need, mini-printers can earn extra money. For example, the accrual of an additional 10% to the cost of services that must be completed “in the morning.”
There are small requirements for the capacity of a mini printing house, but they are also indicated in the business plan.
Some entrepreneurs manage to simply allocate about 20 square meters in an established company.
If you open a printing house from scratch, you will need to find an office for rent with an area of 30-40 sq. (except warehouse). Complies with fire safety and SES requirements for operating permit.
Marketing plan typography
The geographical atlas, which is stored in the British Museum in London, is considered the heaviest printed book. Its weight is 320 kilograms.
The printing services market, as well as related projects, also suffered from the 2008-09 crisis. But in 2010, most companies reached the pre-crisis level of turnover.
In the future, this direction showed only an increase in indicators.
However, in recent years, some print shop owners have found that revenues have fallen by 10-15%. This affected, first of all, those projects that provided services of a narrow focus.
It is important that current customers, having placed an order, immediately receive the result. Therefore, companies with sufficient potential to work at such a pace received only an increase in order volumes. While highly specialized companies have lost their positions.
In addition, the market is significantly crowding out the diffusion of digital technologies. This reduced the cost of some services.
Based on these data from the business plan, we conclude that in order to develop and stay on top, printers must increase the speed of the company and the volume of orders. So a decrease in the average price will not affect the size of the total revenue.
Target audience of the typography
The target audience of the current business plan of the printing house N are individuals and legal entities that need printing and copying services (printing brochures, booklets, special forms, copying various materials in various formats).
Also, representatives of schools and universities in need of printing services for methodological materials and educational products can contact the target audience of a printing company.
The expected proportion of categories in the current business plan is as follows: legal entities make up approximately 55% of the audience, 35% are individuals, and only 10% are schools and universities.
Printing house advertising campaign
To advertise the services of printing house N, the following business plan techniques will be used:
- Advertising in newspapers.
The cost of this service is affordable, but it has a significant impact on increasing the company’s recognition and encourages potential customers to apply, listing competitive advantages.
- Advertising printing houses in subway cars.
It allows you to reach the maximum audience of potential customers.
- It is important to note that the notary’s office is located in a neighboring building.
Your visitors are N potential customers.
A prominent poster above the entrance to the building and a banner on the wall with a list of services will be used to attract them.
Interesting to know: What business is relevant today?
Competitive advantages of printing house
The printing services market is predominantly occupied by large organizations that accept orders only for large print runs, or by small companies that provide services in a limited range.
The competitive advantages of the N printing house, indicated in the business plan, are:
- a wide range of services;
- execution of orders in a short time;
- affordable prices;
- the possibility of ordering prints in small print runs.
Printing house staff
|Quantity||Salary (rub.)||Total (fr.)|
|Print Assistant||two||22 500||45000|
|Prepress Specialist||a||20 000||20 000|
|Responsible for collecting orders||a||27000||27000|
|Total:||145 000 rub|
Thus, the monthly cost of wages for employees of the printing house will amount to 145,000 rubles.
This data will be included in the project development and maintenance cost table in the financial section of the printing house business plan.
The functions of the staff are as follows:
- Printer – is engaged in the production of all paper products. Carries out preparation of the machine for printing and post-press control of the result. Maintains and maintains equipment. Responsibility for detecting defects and timely delivery of orders.
- Printer Wizard: Provides necessary assistance and assists the printer.
- Cutter — provides services for cutting runs, installing metal and plastic binding springs, as well as piccolo rings.
- Prepress Specialist: Checks that the design meets the specifications.
- Order Receiving Manager – Controls the acceptance of orders in the printing house, interviews customers who have submitted applications and is looking for new ones, accepts payment for services and concludes contracts, monitors the timely delivery of products to customers.
Also Read: Step by Step Photo Studio Business Plan
Typography business plan: project implementation
Printing house calendar plan
It is important to outline a plan for bringing the press project to life in stages in order to fully control this process. Thanks to this section of the business plan, you will be able to track whether everything is going according to plan and how much you are investing in the allotted time.
- Registration of a company, preparation of a business plan, registration of activity permits, printing order.
- Find a suitable room for a printing house and conclude a lease agreement.
- Repairs on leased premises.
To perform these services, it is worth inviting a team of specialists.
At the same time, it is also important to bring facilities in line with the standards of bodies such as the fire safety service and SES.
- Purchase of equipment, its installation and connection.
Since the printing house uses complex and expensive equipment, it is better not to risk installing it yourself.
Of course, if you are not an expert in this matter and do not know how to do the job better than any invited teacher.
In addition, it should be borne in mind that when they are installed by individuals, and not by representatives of companies, the warranty often becomes invalid or its validity period is reduced.
- Advertising campaign.
It starts about a month before the opening of the printing house, but remains active throughout its existence.
At the moment of reaching the financial break-even point, you can stop investing the same large sums in this direction.
- Recruitment of employees, their registration in accordance with the Labor Code, briefing and, if necessary, passing refresher courses.
- Opening of the printing house.
Calculation of expenses for opening a printing house
|Preparation of documents, business plan||15,000|
|Purchase of premises (area – 20 m2)||100,000|
|Purchase of printing equipment||480 000|
|Installing and configuring equipment||10,000|
|Advertising campaign costs||100,000|
|Financing the project before reaching the break-even point||545 000|
The opening of printing house N in Moscow requires a capital investment of 1,300,000 rubles.
The entire amount will be covered by the personal funds of the business initiator.
The initial cost of the project in the business plan includes the amount required for current financing until the break-even point is reached.
Typography business plan: financial section
Expenses for maintaining and developing the printing house
|Product cost||Cost, rub.)|
|Purchase of materials necessary for the operation of equipment||165 000|
|Buy a stock of paper in different sizes||100,000|
|Salary for print shop employees||145 000|
|Total:||525 000 rub|
Therefore, to maintain and develop the project, monthly investments in the amount of 525,000 rubles are required.
Printing house payback
To assess the income of the printing house in the business plan, an analysis is carried out:
- demand for the services of similar companies;
- the average cost of providing the most demanded services in printing house N;
- market indicators and forecasts of its growth.
|Name of service||Circulation||Service cost (rub.)||Final price (rub.)|
|Printing A4 magazines||1000||22 500||33000|
|A4 booklet printing||5000||8500||11 800|
|A4 booklet printing||1000||8000||12 300|
|A photocopy of an A4 document, b/w||—||0.5/print||17/print|
There is also a 10% surcharge for urgent services, which is indicated in the business plan.
Based on these data, the payback period for the N printing house project will be 24 months.
Potential Risks of a Typography Business
In order not to burn out, the entrepreneur must assess in advance the possible risks of activity and provide in the business plan for the procedure in case of their occurrence.
This list may include the following:
- High level of competition at the territorial level.
- The lack of qualified craftsmen specializing in the repair and maintenance of printing equipment.
- The period of recovery or reaching an equilibrium level increases.
- Great dependence on the volume of the order at the time of its implementation in a mini printing house.
We recommend watching an interesting video about
how to open a printing house in a crisis and is it worth it:
Now no business can fully function without printing services.
Although there are rumors that the printing business is disappearing and will be replaced by alternatives, there is still room for growth.
It is enough for the initiator of the project to draw up a competent business plan for a mini printing house in order to join this routine. Then the activity will be worthwhile and will bring a considerable stable income.