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4

It’s All About the Money

Let’s dive into the financial reality of owning a print business! Find out what it really takes to start your own custom print shop.

Chapter 4: It's All About the Money

Alright now letʼs face the music. You will need money for your print shop, in order to make more money with your print shop. You could take up a business loan to get your business off the ground, or you might self-finance your entrepreneurial endeavors if you have the means. However you plan to do it, you need to be able to draw up a logical financial plan to get your shop running and maintain a healthy profit from your orders.

Screen printing has one of the lowest entry cost ceilings of all the decorative apparel printing methods. A simple home screen printing kit - a manual press, mesh screens, squeegees, consumables, and a flash dryer - can cost as little as $500 to get your print shop going. Once youʼve mastered the basics, you can start printing.

DTF Printing Start-Up

But, letʼs be realistic. DTF printing is the future. So, why not take a leap of faith and start there?

The lowest cost for businesses that are very new to the industry would be buying pre-printed transfer films from other businesses that specifically sells this. Youʼd be surprised as to how many options there are in the market for you to choose from. Simply send your artwork for printing, and then heat press it yourself.

This way, you would not need to pay so much for a DTF printer. Of course, then your product cost would be higher, production time would be longer, but it is definitely cheaper than buying the machine.

That is one way to kick start your print shop. However, if you plan to get a DTF printer anyway and maybe sell transfer films too, letʼs jump into the rabbithole of how much it could cost.

The total startup cost can range from as low as $10,000 to $50,000 or even more, depending on the scale and quality of your setup. It's important to research and choose the right equipment for your business needs and budget.

Entry level DTF printers could cost from $2000. However, a complete system, for example, the Xante F24 DTF printer, is priced at around $26,995. This model is known for its space-saving design, cost-effectiveness, and quick turnaround capabilities. Additionally, consider reaching out to suppliers for quotes and possibly look into financing options if needed.

As it is, the big question is where your initial capital comes from.

Business loan

Get a decent financial starting point. Factor in your repayment schedule, bear with the crazy interest charges, and also how well your business is doing.

Letʼs put an example into what could possibly be the situation for you should you decide to get a business loan to fund your print shop.

These are roughly what you will need for a head start. Do bear in mind that this is only a superficial estimation. You might need more (or less) based on what you already have, what you will most probably need, and where and how you plan to set your shop.

You must also remember that there will be fixed costs that you will need to cover along the road. This will most likely not be covered by your loan, and you might need to take it out of your own pockets before you start making money with your print shop.

Lay this all out in your business and financial plan so you will have a clear idea of what youʼre in for. Go into detail as much as possible so that you will not go astray from your budget.

Now, say the above numbers are correct and you take out a loan of $23000, how much will you need to make every month in order for you to be able to pay back your loan in a timely manner? Letʼs find out.

Based on the simple calculations above, with a rough estimation of 8% interest rates, you will need to make $500 per month at the very least, to be able to pay your loan in 5 years. With DTF printing, thatʼs about 25 printed shirts to sell at $20, each!

Of course, that is only the bare minimum to pay your business loan. Donʼt forget your other overhead expenses too such as your take home pay, utilities, insurance, and the likes.

Maintain your cash flow and youʼll make your money back in no time.

PRO TIP: Try to pay the bank back as soon as possible, as more time for repayment means more interest paid.

  • Self-financing: Use your personal savings to start your shop and get printing. This is the most straightforward method to finance your business, but it does have plenty of limitations. The most severe one being → you will have no back up money once you have used it up for your business.

    • When you look into these two options, taking a business loan makes more sense. Your personal savings can act as a saving net. Use it for a rainy day.

    Other Financing Options

    If you arenʼt eligible to apply for a regular business loan you could also look into Small Business Administration (SBA) microloans.

    There are also loans and leasing plans that are specific to the apparel decoration industry. For example, there might be leasing options for DTF printers that could be a better option if purchasing the real thing is too expensive.

    Weʼre including these as examples of loans or leasing plans you can find.

  • CIT printing press financing
  • Swing Design Finance & Payment Plans
  • Beacon Fundingʼs screen printing equipment financing program
  • Geneva Capitalʼs financing and leasing
  • Printaʼs leasing program

    • Some printing companies even offer their own financing options for equipment. For example, ScreenPrinting.com offers a ShopPay Installment option that allows you to split your purchase into four interest-free payments or monthly payments with interest.

    Look around, sleep on it and then decide whatʼs best for you and your print shop. Thereʼs always a way to work around your funds.

    Disclaimer: These are merely suggestions. YoPrint does not endorse the following plans.

    **Price estimations and interest rates are made based on current data in January 2024.