Business plan of the printing house

1. A brief investment memorandum. Few can imagine modern business without advertising. Despite the development of Internet technologies, the printing of books, magazines, advertising products – one of the components of the promotion of almost every commercial organization.

Every day new private companies start to work, which need printing services in one form or another (advertising newspapers and flyers, menus, business cards). Therefore, such a branch as the printing industry is very developed, and the barrier to entry to the market is quite low due to the need for low initial investment and a relatively fast payback period, as well as a lack of special skills and knowledge.

Thanks to the speed and high quality of work, the printing house can stand out against the competition and win regular customers. In cities with population over 1 million people with a population of up to 4 million people, an average of 230 to 300 such enterprises are open on average.

The amount of initial investment is 1 687 186  rubles.
Break-even point is reached in the eighth month of work.
The payback period is from  21 months .

2. Description of business, product or service

Evaluating the concept of your project, it is important to imagine which segment you are planning to cover.

The most common areas of activity of printing houses:

• advertising sphere;
• production of magazines, books, newspapers;
• release of packaging products.

The least labor-consuming and most profitable sphere is the production of advertising products, therefore in this business plan this service is considered as the main one.

The company’s products are forms, forms, leaflets, bulletins, brochures. Consumers are individuals and legal entities, for example, advertising agencies, design studios, publishers.
Estimating the incomes that your printing house can bring, it is necessary to remember the seasonality of this business: the most active months of sales fall on the pre-New Year period. Opening hours of the printing house: daily from 09: 00-20: 00. The list and cost of services provided in your printing house are indicated below:

Over time, it is recommended to diversify the range by introducing print on T-shirts and mugs, making souvenirs, etc.

3. Description of the market

Potential consumers of printing services are individuals and legal entities that need the production of forms, forms, bulletins, leaflets, advertising brochures, prospectuses, as well as in the urgent and non-urgent production of copies of printed materials. It is recommended to involve schools and colleges that regularly need printing products and provide stable orders for a long period. The largest proportion in the total volume of clients are commercial organizations that require advertising products, then individuals and educational institutions. The smallest number of clients falls to non-profit organizations, for example, they include charitable organizations that need promotional brochures and brochures.

We will carry out SWOT analysis of your project activity.

4. Sales and marketing

Printing is the business that is best developed through the Internet. Let’s designate the main activities when launching an advertising campaign.

• Creation of an adaptive site with the help of which it will be possible to calculate the cost of printing services depending on the number of copies, sizes, color of the ordered goods. Also on the site should be listed the list of services provided, photo production, customer reviews, your contact information, links to profiles in social. networks. After the creation of the site, you need to resort to the help of a competent directory specialist who, with a moderate advertising budget (20,000 rubles per month), will be able to provide you with a flow of applications.
• Create a group in the contact and profile in the instagram. Systematic management of the group and profile in the social. networks will get from 2 orders a day later 6 months after the project is launched. If you do not have any sales experience in soc. networks, it is better to entrust the management and promotion of a professional. In the first months, for the development of the customer base, you can use promotions, such as:

– 15% discount on the first order;
– Discount to order until the end of the month;
– Refer a friend, get a discount.

• In addition to online attraction methods, you can use the exchange of promotional materials with other companies (courier services, food delivery, etc.)
• In addition, in your printing house it is desirable to find a sales manager who will sell the firm’s services through phone calls. This will allow you to find corporate customers and get feedback.

5. Production plan

Denote the main stages of the launch of the printing house.

1. Registration in state bodies

Opening of the printing house does not require special permits and licenses, so before opening it is enough to register as an individual entrepreneur with a simplified taxation system (6% of income) and open a settlement account.

2. Room search and repair

As for the location of the printing house, certain requirements are imposed on it:

• Area from 40 m2;
• Ventilation / ventilation of the room;
• The possibility of expanding in the future for a warehouse for finished products.

As a premise for a small printing house is suitable area of ​​40 square meters. m. Too small areas are not suitable for the reason that they will not allow placing all the equipment (and this is at least 5-6 cars). Plus, it is necessary to give room to operators, allocate a storage room for storing materials and finished products. Finally, you need to allocate space for visitors, arrange a soft sofa and chairs. Lease payments for an area of ​​40 square meters. m. Depending on the location will amount to about 28 – 40 thousand rubles a month.

3. Purchase of necessary equipment and inventory

The following equipment is needed to open the printing house:

• A digital press with a raster processor for offset printing (a device that transfers an image from a form to the surface of a material by means of a rubber cloth, is used for printing leaflets, forms, business documents, brochures, posters, business cards, postcards, booklets, coupons, photographs, overwhelming majority of production of the printing house);
• Cutting plotter (this is an apparatus for precise cutting of any stencils or images from various materials);
• Booklet maker (the device is designed for binding documents (fastening sheets of staples);
• Laser MFP;
• Thermo-press multifunctional (specialized modern equipment that allows you to transfer all kinds of images on different surfaces with high quality, it is used for applying the required images to caps, mugs, T-shirts);
• Cutter (used for cutting paper on flat parts and leveling edges);
• Laminator;
• A computer;
• Consumables: paper, thermo film, oracal, magnetic vinyl, paint.

In view of the high cost of new equipment, you can search for options supported, then the price will be about 2 times lower. In this business plan, equipment that has been in production for no more than three years is listed.

* The expendable inventory includes: paper, anti-scoring material for offset printing machines, cartridges for printer, cardboard, metal / plastic springs, calendar loops, magnetic vinyl, oracle.

4. Staff search

The most difficult thing is to find professional printers, as for quality work requires experience and profile education. Search for such experts is better done on the portal hh.ru, access to the resume will cost 15 000 rubles. You will also need an experienced sales manager and manager-managers who will deal with meeting customers, calculating the cost and transferring the finished product. They are also more suitable to search on the above site or to search through friends or soc. network.

5. Marketing policy

Denote the main types of costs that you will face in the process of implementing an advertising campaign:

1. Creation and promotion of the site – 150 000 rubles;
2. The budget for contextual advertising is 20,000 rubles;
3. Promotion of the group and profile in social. network – 10 000 rubles;
4. Promo leaflets – 2 000 rubles.

Calendar layout of the printing house opening

6. Organizational structure

The chief employee of your printing house is a printer who prepares materials and a printing machine for production, fixing and printing of all kinds of printing products, preventive maintenance and repair of a printing press, monitors compliance with speed and print schedules. The printer’s work schedule is 2/2 for 12 hours a day, the salary is the highest at the enterprise (45,000 rubles), since candidates with experience and profile education are required. Ideally, these employees were specialists of a wide range and could work with a plotter, a booklet maker, a thermo press. But even in this case, it is necessary to hire assistants who will perform the work under the supervision of printers. In the first months, when the customer base is not yet established and there are not enough orders, two printers are enough, then – without helpers with a salary of 15,000 rubles.

The next employee who needs to be involved is a sales manager who carries out calls to potential customers and offers printing services. The manager can work remotely, payment for his work is based on the number of services sold (15%). The candidate must also have experience in sales, should develop selling scripts for conversations, submit monthly reports to the director on the number of contacts worked out and conversion.

Also, the staff should hire a designer who develops layouts of leaflets, booklets, business cards, postcards, calendars, and also prepares files for printing. The salary of the designer is 18,000 rubles, the operating mode is 5/2.

Reception of clients and their consultation is carried out by the manager. He also calculates the cost of orders, accepts incoming calls, responds to customer reports, etc. Since the printing house works on a daily basis, there is a need to hire two managers who work in shifts, their wages are 15,000 rubles per month.

7. Financial plan

Investments in the opening of the printing house look like this:

Current expenses in the first month of work are presented below:

** Depreciation is accrued on a straight-line basis over 7 years.
The total amount of initial investment is 1 687 186 rubles.
The forecast of financial indicators of the enterprise for 2 years:

These tables are calculated on the basis of the average prices for each of the group of services of the printing house, and you can add additional items to your price list, then you can count on large income figures. 12 months after the opening of the printing house, you will be able to hire additional employees – printer assistants, their wages are taken into account in the costs of the financial plan.

It is assumed that the first two years you will actively develop the marketing policy of the printing house, so advertising costs do not change during this time, but with a steady flow of customers over time, these costs will be significantly lower. As can be seen from the presented data, the break-even point of the printing house will come already at the eighth month of the project launch, i.е. from now on your financial result will be positive. At the same time, a full return on investment can be expected after 20 months of operation. Profitability of sales of your business will be 29% after a year of operation.

8. Risk factors

External risks:

• increase in the number of competitors. To reduce the risk of remaining without orders, special offers, promotions, to study the offers of competitors should be introduced and to offer customers better and more favorable conditions;
• adverse market conjecture. The growth of inflation, depreciation of the national currency, the economic crisis – all this has a negative impact on business activities. To reduce such risks, the client should be serviced as high as possible and individually, and the range of services should be diversified, in this case, even under adverse external conditions, the client will choose you;
• the emergence of new equipment that functionally surpasses yours. Progress does not stand still, and every year there are new offset machines, printers, computers, which will provide faster and high-quality work of your printing house. In order not to lag behind competitors, continuous monitoring of new technologies is required, an assessment of the appropriateness of their implementation.

Internal risks:

• the breakdown of equipment can lead to layoffs at the workplace and, as a consequence, to a decrease in revenue. To minimize this risk, it is necessary to hire really experienced specialists and also to inspect the equipment;
• risk of dismissal of key employees. To stimulate staff to work in your company, it is necessary to conduct corporate events, give out bonuses in case of honest work, etc .;
• risk of inopportune receipt and shortage of expendable equipment. In order to minimize such cases, it is necessary to carefully write down all the conditions in contracts with suppliers, in particular, the conditions for calculating fine penalties in case of non-compliance with contracts.