How to Start a Custom Prints Business

Start a custom prints business by following these 10 steps:

1. Plan your Custom Prints Business
2. Form your Custom Prints Business into a Legal Entity
3. Register your Custom Prints Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Custom Prints Business
6. Get the Necessary Permits & Licenses for your Custom Prints Business
7. Get Custom Prints Business Insurance
8. Define your Custom Prints Business Brand
9. Create your Custom Prints Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your custom prints 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.

What will you name your business?

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 Custom Prints 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.

What are the costs involved in opening a custom prints business?

The costs involved in opening this business varies by how many things you want to specialize in. For instance, one entrepreneur started a business focusing only on custom-printed t-shirts. He used existing apps and web services to help print and ship (such as Printful) his t-shirts. This allowed him to build the cost of new orders into the t-shirts themselves and functionally launch a small business for under $500, with $16 going towards paying for a font on the site, $8 paying for a t-shirt mockup, and the rest going towards the actual printing of shirts.

In the long run, though, you'll probably want to own your equipment. It is possible to purchase small business screen printing packages, for instance, for less than $7,000. This includes necessary equipment such as the printer, flash cure unit, dryer, vacuum exposure unit, and assorted supplies such as ink, screens, coater, adhesive, temperature gun, and so on. For printing business cards, you can start out for under $2,000, as this primarily requires a high-quality color printer, good card stock, and programs such as Microsoft Publisher. As everything can be done from home, there is no overhead involving buying or leasing separate business space.

What are the ongoing expenses for a custom prints business?

The ongoing expenses of this business are effectively non-existent in the sense that they are built into your prices. For instance, you will periodically need to buy more ink, adhesive, screens, paper, and so on. However, you should price your wares so that when you do buy more supplies (and only when you run out or are close to running out), you will always have adequate funding to do so based on the previous sales.

Who is the target market?

Your preferred clients may vary depending on whether you want to specialize in a particular printing service or not. Generally, though, business people will be your preferred clients because they are likeliest to become steady clients, needing to periodically get more of their original business card designs, to change cards as their employers and information change, etc. Thus, while you would make more per t-shirt than per business card, those buying things like t-shirts are less likely to become repeat customers over the years.

How does a custom prints business make money?

A custom print business takes customer requests and charges money to print customized words and graphics onto different kinds of items.

How much can you charge customers?

How much you charge is typically rooted in how much a customer orders and how complex an order is. For instance, you might charge nearly $8 per shirt for 20-60 one-color t-shirts, but that price might go down to just under $6 a shirt if they order a $1,000. You may consider charging something like an extra twenty-five cents per shirt per extra color that is added. You should also consider charging approximately $2 extra per shirt if they want a double-sided design. You may also consider adding a one-time (per design) setup fee for every color added that ranges between $10 to $15.

For business cards, you may consider charging $3 to $5 for 25 single-sided cards with a basic matte coating and premium material. That price may jump to $35-$50 for ordering over 2,000 cards. If the cards are printed on color filled premium paper, you can charge between $7 to $9 for 25 of them, and a similar price range if the customer wants the cards printed on thicker, card stock material.

How much profit can a custom prints business make?

Obviously, the exact amount of profit that you earn is based on how many sales you make. One screenprinting expert estimates it is possible for this job to net above $100,000 in profits, but this is contingent on having numerous bulk orders (typically for companies and organizations). Realistically, you may need to diversify your printing services and create some dedicated sideline businesses online in order to reach six figures.

How can you make your business more profitable?

One way to be more profitable is to find a niche. To be honest, the market is flooded with t-shirts, so if you can find an area of fandom or pop culture that is underrepresented (or not represented at all), you can effectively corner that market. Also, try to meet people in person whenever possible. It can be easy for a work at home business to feel very isolated, but having face-to-face meetings with prospective clients can help you via traditional networking that leads to long-term business. Finally, don't underestimate the power of contests. Having online drawings or contests for small orders of t-shirts or business cards helps to build public excitement for your product at a low cost to you, which is great for advertising and public relations.

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 custom prints business is sued.

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.

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!

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.

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.

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 Custom Print business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Certificate of Occupancy

A custom prints 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 custom prints 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 custom prints 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.

Is this Business Right For You?

This job is ideal for someone who is good with both technology and people. It is necessary to be good with technology because you must know your way around the hardware and software necessary to print onto a variety of different surfaces. You must be good with people because your clientele is potentially very diverse—the professional who needs new business cards may be very different from the college student who wants to order an ironic t-shirt.

What happens during a typical day at a custom prints business?

In no particular order, your daily activities may include corresponding with existing customers, reaching out to potential customers, and managing your advertising (including a web page and social media presence). You may periodically clean and perform maintenance on your equipment and, in rare cases, order new equipment and new parts. Most of any given day will include creating your custom printed items and then shipping them to your customers.

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

Prior training and experience with things like art and design can be a major help, as it may give you familiarity with the hardware and software you'll be using as well as prepare you to help clients with their various requests. Any direct experience you have in designing and printing things like shirts, prints, and cards is helpful for the same reasons.

What is the growth potential for a custom prints business?

There is good growth potential for this business because you can start small and build your way up. For instance, you may start out only printing on certain items, and once you have become successful in that, you can branch out to other printing services. Since you will already have the equipment, you can also sell your own custom-designed shirts and prints through venues such as Etsy, offering you a different revenue stream.