How to Finance Screen Printing Equipment
Financing equipment for a small business can be a difficult proposition. Most entrepreneurs start out with more ambition than credit or cash. So, most often the best financing option can be to start off small. While a full production screen press may be considered relatively inexpensive as far as business equipment is concerned, a full professional set up can still range from $1,800 to over $8,000 or more depending on the production capacity. With patience and the right plan, an entrepreneur can start small and grow a screen printing business without going into significant debt just to obtain the equipment.
Other People Are Reading
Things You'll Need
- $150 - $250 operating capital
- Small business checking account
- Computer with word processing software
Instructions
-
How to Finance Screen Printing Equipment
-
1
Search your local area for small cottage industry businesses that would make suitable customers. What you are looking for are neighborhood bakeries, cafés and small restaurants, antique shops, or any "mom and pop" establishment with four to 25 employees. You will need to scout at least 10 good prospects within a 5 to 10 minute driving distance. A good prospect will be a business that has screen-printed T-shirts, long sleeved Ts, or aprons as uniforms. You may want to take a picture of the company logo for future reference.
-
2
Design a simple yet business-like proposal for each prospect. The proposal should be general enough to apply to any of your prospects. The exception to this would be the design "tear-sheet" showing an example of the silk screened uniform. You can easily design the front and back of a T-shirt or apron using graphics captured by a digital camera or cell phone, or and image downloaded from the company's website. It might be best to copy the same design the company currently uses.
-
-
3
Invest in a small, all-in-one screen print unit. These may range in price, but you will be looking to create a small number of shirts and screens, so you won't need anything elaborate. Some of the latest units offer a trial period where you only need to pay a small portion of the total purchase price for the first 30 days of use. This can be more than enough time to complete several contracts for a screen printing service.
-
4
Request samples of T-shirts from wholesale vendors. You will use these samples for your presentation to your prospective customers in the next step.
-
5
Make your presentation to the sales prospects you identified in Step 1. Let them know that you are a new business concern, that you would appreciate their patronage, and that you are willing to negotiate a reasonable deal. Let them know you will do small quantities (two shirts per employee or more). Condition the low sales price on the use of a standard shirt (or color, white for example). Make sure you price your work so you make at least a 10 to 20 percent profit margin. Allow for a lower price if the customer is willing to pay up front or offer a 25 to 50 percent deposit.
-
6
Complete the business contract. If you are able to contract with at least two or three of your prospects, that should equal 25 to 100 (or more) shirts. Then, order the T-shirts from your preferred wholesaler (remember, you have contracted to deal in only one color and shirt type). It is possible to get a case of 100 white shirts from size small to extra large for less than $150 (even better deals can be found at online surplus sites or ebay.com auctions). Once you deliver and receive the balance of payment, you should be well on your way to earning the cash to acquire a high volume screen press. At this point, you can decide to replicate your previous effort until you can purchase in cash, or use the profits as the basis to seek bank or vendor financing.
-
1
Tips & Warnings
Many vendors will be more willing to finance with an established business (not to mention a down payment). Being able to show established and fulfilled contracts can earn you more goodwill than you might think.
