PrintingSolutions.com will be an online provider of printing and B2B print services, focusing on the business market. This will be fortified with the company’s graphic art and website design services.
The online print shop will offer customers a one-stop shop for addressing their printing needs. Customers will be able to easily design and order customization on thousands of products, primarily small-quantity printed products. By automating and enhancing the print order process and electronically connecting our online printing services to carefully-selected commercial print vendors, it is believed, based on experience in the printing industry, that the company will significantly reduce the costs and inefficiencies associated with the traditional printing process. Our online print services are designed to be more convenient and cost-effective than printing alternatives provided through traditional print channels.
PrintingSolutions.com will simplify the design and ordering process in several ways, including the elimination of manual steps and handwritten forms used by traditional print shops. The company believes this will significantly reduce reprint-due-to-error costs and the associated print wastage incurred by commercial print vendors. Exact re-prints of previous orders will be available at a reduced cost. At the same time, the company will lower costs and improve capacity utilization for its commercial print vendors since it will electronically route orders to commercial print vendors that have idle capacity. PrintingSolutions.com also believes that these efficiencies, incorporated with lower overhead costs due to the online nature and automation, will allow the company to be more cost effective than traditional printing alternatives. Furthermore, the cost of printing will be greatly reduced by using the offshore printing press affiliate, Creative Designs and Printers.
In addition to providing customers with online print services directly through the PrintingSolutions.com website, the company will be conducting B2B through PrintingSolutionsB2B.com.
Graphic Art Design: PrintingSolutions.com will provide a graphic art design center where customers will describe their company to enable a graphic art designer to create a logo for them.
Website Design: Customers will also be able to have website designers create effective websites for their company. Customers will choose from either a template or a customized website, whichever suits their business needs.
Business Stationery: This will initially include:
All services provided by PrintingSolutions.com (business stationery products, website designers, and graphic art designs) originate overseas; when necessary, a United States-based team will provide assistance.
Customers will be able to work with the designers online for any changes or enhancements once the initial designs have been completed. Delivery of graphic art designs and websites will be done electronically, with the option of receiving a compact disk.
In the event that an error is made in printing an order, customers will have the option of returning it to have it reprinted. Otherwise, all sales will be final, since the printing will be customized and cannot be resold. Customers will not be able to cancel the order once the materials are printed.
Customers will be able to contact the company via the Internet through email, and interactive tools such as AOL instant messenger and Microsoft net-meeting. Additionally, the company will provide traditional telephone customer service.
The challenges for an online print shop which are not typically faced by other electronic commerce vendors include:
PrintingSolutions.com believes that, with our technology expertise, we will be able to address these challenges while also handling large numbers of customer design sessions and orders. We feel this represents a competitive advantage.
Customized printing will be offered in the future on products including:
PrintingSolutions.com will eventually provide franchising opportunities. As the need for doing business in the information age evolves, so will we. The company will provide resources for customers to remain on the cutting edge of technology.
PrintingSolutions.com will focus on small and start-up business customers in the United States. We plan to aggressively pursue and acquire customers through direct business promotions and convert them into repeat paying customers. We will continually strive to provide consumers with more cost-effective avenues, offering substantial savings rather than just a few cents.
PrintingSolutions.com will also be configured to stay ahead of, and capitalize on, emerging market trends such as integration of information/markets and increasing sophistication of online offerings. This will provide a continuously improving, superior customer experience and grow value.
There is a serious benefit deficiency in existing “brick and mortar” printing establishments that create inefficiencies in the ordering and production process. Utilizing the benefits of Internet selling will eliminate many of these problems and create a lower-cost environment.
At the present, PrintingSolutions.com faces major online competition from iPrint.com, which is an established online printer. However, iPrint.com does not offer the lowest cost products on the market, nor does it provide all of the printing services a business needs. Therefore, there is significant opportunity to gain market share.
The company will be primarily targeting small and start-up businesses in the United States; however the company plans to negotiate deals with big businesses. Vendors will include printers and graphic art designers around the world that will be able to help define these markets using the PrintingSolutions.com B2B portal. While the primary focus will be on business customers, PrintingSolutions.com’s ability to print in small quantities will allow the company to service the printing needs of individuals as well.
To ensure success, the company will continuously attract new customers, many of whom may have personal and long-standing relationships with traditional print and design shops, catalog vendors, office supply chains and stationery stores. Traditional print and design shops have many advantages which PrintingSolutions.com cannot offer its customers, including physical proximity and interpersonal business relationships. In addition, catalog vendors may be better able to combine orders to achieve economies of scale and may be more convenient for customers who also want to purchase non-printed products, such as office furniture.
PrintingSolutions.com plans to aggressively pursue and acquire customers through promotions and convert them into repeat paying customers. Direct business promotions are the most important vehicle that the company will use to acquire customers. These promotions may include providing the customer a product, such as a mailing label at no charge, or charging the customer only for shipping and handling, in order to introduce that customer to our products and services.
PrintingSolutions.com plans to expand its business and customer base by offering business promotions on a continuous basis. PrintingSolutions.com will continually strive to provide consumers with more cost-effective avenues, offering substantial savings rather than just a few cents. Using offshore print companies as partners and having partners bid on jobs will be one avenue used to ensure the best prices for our customers.
The following chart and table express the projected number of potential customers in the United States by market segment. Although it is planned to make PrintingSolutions.com a global company, the initial phase of market penetration will focus on the domestic market.
Note: Although the large business segment consists of the smallest number of businesses, this group generates the largest sales and revenues of all three segments. Additionally, it is believed that the company’s ability to gain market share in the third category, “Individual customers,” will be relatively small in comparison with the other two. This is due to the primary concentration of marketing efforts on the business segments.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Small Businesses Utilizing Internet | 8% | 4,970,000 | 5,342,750 | 5,743,456 | 6,174,215 | 6,637,281 | 7.50% |
Large Businesses Utilizing Internet | 6% | 113,600 | 119,848 | 126,440 | 133,394 | 140,731 | 5.50% |
Individuals Utilizing Internet w/Printing Needs | 27% | 5,430,000 | 6,896,100 | 8,758,047 | 11,122,720 | 14,125,854 | 27.00% |
Total | 18.75% | 10,513,600 | 12,358,698 | 14,627,943 | 17,430,329 | 20,903,866 | 18.75% |
Printing Solutions has chosen to focus on the small business market segment as its primary customer base because these customers usually have the lowest switching costs, do not have long-term relationships with other printing companies, and are the most aggressive in searching for low-cost printing services. Furthermore, Printing Solution’s ability to route jobs of various sizes to printers with temporary excess capacity matches well with these companies, who usually desire smaller print jobs than the larger companies.
As stated previously, PrintingSolutions.com will also focus on large businesses. The advantage with this market segment is that each job usually offers a higher margin than compared with the small business segment.
Finally, the company will also address individual needs. This is potentially the largest market; however, there is a relatively high churn rate in this segment that will require more extensive marketing efforts to attract new customers. This, in turn, lowers the margin and makes this segment the least attractive.
The evolution of vertical e-marketplaces
From isolated niche offerings . . . e-marketplaces begin their lives by providing a narrow range of targeted products for a buyer base. FairMarket, for example, was launched as a website where electronics manufacturers and distributors could auction surplus electronic components to resellers and system integrators. This highly-focused effort enables online markets to gain initial traction.
. . . to highly interconnected one-stop shops. Vertical e-marketplaces will grow to provide a single access point for commerce and information within an industry–combining multiple services like logistics, payments, and credit with product offerings in real time. As an example, e-marketplace participants purchasing containers of extruded plastic will be able to access specific cargo insurance quotes in the midst of arranging logistics tailored to that order.
2000 To 2001: Racing To Establish Credibility
Over the next 12 to 18 months, e-marketplaces will continue their attack on narrowly-scoped industry inefficiencies by focusing on simple themes:
2001+: Building Value through Networks.
Beginning in 2001, e-marketplaces will move beyond basic issues of critical mass and begin reaching out, beyond their websites, to integrate more intensely with other product and service providers. Market makers that make it to this more evolved stage will look to provide a broader set of capabilities to participants by:
Market Description
Printing can be a major area of expenditure for small businesses. Based on data from CAP Ventures, Inc., an independent print research firm, sales in the United States printing industry totaled $292 billion in 1998, of which $58 billion was derived from commercial printing operations. Short-run, customized items, which include a wide range of business, promotional and general office products, as well as consumer items, comprise a significant portion of these commercial printing operations. This market is highly fragmented, with an estimated 50,000 local and regional commercial printers in the United States.
The traditional process of purchasing short-run print items can be time consuming and error prone. Small businesses and consumers often lack the financial resources to create economies of scale when purchasing printed products. According to the International Data Corporation (IDC), the number of small businesses engaged in e-commerce will grow from 400,000 at the end of 1998 to nearly 2.8 million by the end of 2003.
The explosive growth of the Internet as a tool for global communications has enabled millions of people to interact electronically. The IDC estimates that there were 142 million Web users worldwide at the end of 1998, and expect this number will grow to approximately 502 million by the end of 2003. Rapid acceptance of the Internet as a communications platform, by both businesses and consumers, has created the foundation for significant growth in business-to-business and business-to-consumer e-commerce. IDC estimates that worldwide commerce over the Internet will increase from approximately $50 billion in 1998 to $1.3 trillion in 2003.
The Small Business Administration (SBA) estimates that more than 98% of all businesses in the United States have fewer than 100 employees. These businesses often lack the size and financial resources to create economies of scale. In particular, these organizations typically do not maintain dedicated procurement departments and often do not achieve significant purchasing leverage. That is why the Internet is so important for these businesses; it can provide small businesses and consumers with a number of advantages when making purchases, including:
Small businesses are taking advantage of the opportunities the Internet affords. The IDC estimates that the number of small businesses engaged in e-commerce will increase 47.1% annually, from 400,000 at the end of 1998 to almost 2.8 million at the end of 2003, signaling the broad adoption of the Internet by these small enterprises.
The widespread adoption of the Internet as a purchasing vehicle has created a wealth of opportunities for businesses that offer products and services to small businesses and consumers. Simultaneously, it has given both small businesses and consumers a wider variety of products from which to choose at competitive prices.
Highlights of Market
E-marketplace Reports
The research shows that e-marketplaces will be responsible for 53% of all online business trade. Research also indicates that more companies are moving to make purchases and sales on the Internet and are looking to build deeper relationships with business partners. This research has also shown:
The B2B arena reshaping e-marketplaces. The initial wave of B2B e-commerce has been dominated by extranets that automate off-line processes between partners. However, the Net is now moving to a new business venue, e-marketplaces, where the dynamic many-to-many interactions will supplant stagnant one-to-one relationships. These new trading arenas will flourish because:
E-marketplaces will face a changing business environment. As more and more companies compete in the B2B market, there are going to be companies that will either have to sell or go out of business due to:
PrintingSolutions.com will ensure our success by combining the most functionally-rich e-marketplace with the best prices for our customers. PrintingSolutions.com will aggressively pursue partnerships and develop a large customer base to get a strong foothold in the markets it ventures into. New vertical e-marketplace rules will emerge. As the competition increases in these vertical e-marketplaces, the operators will have to update their strategies and change their business paradigm to:
The traditional process of purchasing printing can be time consuming and error prone. Businesses, particularly self-employed individuals and small businesses, often lack the financial resources to create economies of scale when purchasing printed products.
PrintingSolutions.com believes that consumers will choose products and services based on the following criteria:
Traditionally, the primary cost of printing customized products has been working with customers to decide what needs to be printed. This required a design phase that normally employed the services of a graphics team. By providing predefined templates that enable our customers to customize a product online, the company will eliminate the need for a graphics team for the most significant portion of the work. For products such as brochures and logo designs, PrintingSolutions.com will utilize its offshore resources to complete the job. By enabling customers to do the majority of their own design work, and utilizing the offshore resources, we will significantly reduce our overhead and pass substantial savings on to our customers.
For specialized printing services, PrintingSolutions.com will provide customer service through a combination of electronic and personal assistance. In addition to the above mentioned benefits, we will provide our customers with significant advantages over commercial print vendors. Based on knowledge within the commercial printing industry, we believe that, by integrating our technologies into those of our commercial print vendors and utilizing the “what-you-see-is-what-you-get” approach, we will significantly reduce reprint-due-to-error rates and print wastage.
The prime competitive threat comes from iPrint.com, a company that currently dominates the market. Its weakness, however, is charging too much. iPrint.com, is an Internet print shop that allows customers to create custom printed products. iPrint.com has developed cutting-edge technology and harnessed the power of the Internet to bring dramatic change to the centuries old printing industry. iPrint.com allows customers to design and order customized printed products such as business cards, office stationery, business checks and forms, personalized company post-it notes, logo coffee cups, promotional t-shirts and photo mouse pads. The company focuses on the business market.
Competitive threats also come from any company that is able to provide the services offered by PrintingSolutions.com at lower prices. The only way to accomplish that is for other companies to have what PrintingSolutions.com will have in terms of knowledge and overseas resources, both in the Internet technology field and printing resources.
The focus of competitors is on printing services, which are grossly overpriced. PrintingSolutions.com will focus on providing more than just printing: the company plans to provide an environment where companies can get their business running as quickly as possible for the best price. Additionally, once the B2B portion of the website is established, the company will be able to further promote competition and gain a larger customer base while limiting operational costs.
PrintingSolutions.com will differentiate itself from competitors by obtaining a global demand for its services. The company will constantly re-evaluate its rates and services to achieve a leading position in the industry, thus allowing customers to attain the services that PrintingSolutions.com provides with substantial savings over competitors’ prices.
The advantage of PrintingSolutions.com will be its team of highly-qualified professionals that have been working in the technology industry for years. Additionally, the company will benefit from having resources outside the United States, and will leverage them extremely well, while keeping the cost of operation down.
The objective of PrintingSolutions.com is to become the leading online provider of printing and private-brand print services. As part of the ongoing strategy, the company plans to:
Through the online print shop, PrintingSolutions.com will offer consumers a single location to satisfy the majority of their printing needs. The company will develop a user-friendly website for obtaining professional quality, mass-market printed products. This will provide customers a compelling alternative to traditional print channels. PrintingSolutions.com will also offer specialized websites and printing services for print items or quantities that are not generally offered in the self-service print shop. By automating the print order process and connecting online print services to carefully selected commercial print vendors, it is believed that the costs of printing will be significantly reduced.
PrintingSolutions.com will strive to develop the most recognized and trusted brand for printing services on the Internet. To expand our customer base and to extend the image of the company, we plan to aggressively promote the PrintingSolutions.com brand through a combination of online and traditional media advertising, public relations and participation in trade shows. The company also plans to expand our affiliate and co-branded online website strategies through agreements with a range of destination websites.
The company will be promoting PrintingSolutions.com and PrintingSolutionsB2B.com over the Internet through:
Internet ads are an obvious choice because that is the nature of our business. Marketing will also be done through printed media such as national newspapers and magazines. Newspaper and magazine ads will be used since our customers include business people who read various publications. Television ads will be used in certain markets, as PrintingSolutions.com will be targeting large cities with a great number of businesses.
PrintingSolutions.com’ products and services will address the need for assisting customers in obtaining their business stationery, graphic art designs and websites at more affordable prices than are currently being offered.
The company sets its pricing based on what competitors are offering, and cuts that number in half. Website development will be provided at a flat rate, with additional changes being billed at an hourly rate. PrintingSolutions.com will provide technical support as needed to ensure that a customer’s website gets up and running. We will provide free technical support for websites for their first six months. Beyond that, an hourly rate will be applied. Logo designs will also be charged at a flat rate and, as with the development of the websites, with additional changes being charged by the hour.
The company’s sales strategy will be relatively minimal since PrintingSolutions.com is offering distant, self-customizing services. It is expected that the company’s marketing efforts will bring customers to the website, and the benefits of convenience, customization and low price as advertised on the website will be the incentives to close a sale. Promotions and add-on products coupled with continuing low prices will create repeat business.
Most importantly, PrintingSolutions.com will provide our customers exactly what they want or there will be no charge.
The following table and charts show our projected sales and direct costs for the next three years.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Internet Printing Products | $250,000 | $2,910,000 | $5,820,000 |
Other | $0 | $0 | $0 |
Total Sales | $250,000 | $2,910,000 | $5,820,000 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Internet Printing Products | $80,000 | $125,000 | $200,000 |
Other | $0 | $0 | $0 |
Subtotal Direct Cost of Sales | $80,000 | $125,000 | $200,000 |
The company has strategic alliances with Network Systems, Software Developers, and Custom Designs and Printers. These alliances are valuable to us because they will allow the company to utilize the knowledge and resources of these firms with no additional cost to the business. PrintingSolutions.com plans to also form strategic alliances with search engines such as Yahoo! and Lycos to promote the website, as well as exploring the possibility of forming strategic partnerships with content providers such as America Online.
The e-marketplaces will become an enduring reality in the business landscape. While the growth of these venues will spur continuous change, the company will be participating in these e-marketplaces as buyers. PrintingSolutions.com will begin to experiment with these online marketplaces with a minimum of 1% of its procurement dollars. This level of effort will enable the company to optimize purchasing in a dynamic pricing world. There will be the added bonus of also understanding the different vertical markets so that, when the time comes, we will know where to look to form strategic alliances
The company also plans to pursue strategic relationships with leading destination websites and media companies in order to increase traffic to its website. By aggressively pursuing new relationships, we believe we can accelerate the acquisition of new customers and increase usage of our online print store.
Sample Milestones topic text.
The milestones table and chart show the specific detail about actual program activities that should be taking place during the year. Each one has its manager, starting date, ending date, and budget. During the year we will be keeping track of implementation against plan, with reports on the timely completion of these activities as planned.
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Sample Milestones | 1/4/2008 | 1/4/2008 | $0 | ABC | Department |
Finish Business Plan | 4/29/2009 | 5/29/2009 | $100 | Dude | Boss |
Acquire Financing | 5/9/2009 | 6/28/2009 | $200 | Dudette | Legumers |
Ah HA! Event | 5/19/2009 | 5/24/2009 | $60 | Marianne | Bosses |
Oh NO! Event | 6/28/2009 | 7/3/2009 | $0 | Gloworm | Nobs |
Grande Opening | 6/28/2009 | 7/3/2009 | $500 | Gloworm | Nobs |
Marketing Program Starts | 5/29/2009 | 6/23/2009 | $1,000 | Glower | Marketeers |
Plan vs. Actual Review | 10/24/2009 | 10/31/2009 | $0 | Galore | Alles |
First Break-even Month | 2/25/2010 | 3/27/2010 | $0 | Bouys | Salers |
Hire Employees | 1/24/2010 | 2/23/2010 | $150 | Gulls | HRM |
Upgrade Business Plan Pro | 4/14/2010 | 4/16/2010 | $100 | Brass | Bossies |
Totals | $2,110 |
PrintingSolutions.com will offer printing, website and graphic art design at affordable prices. The company’s proprietary product will be a website that will provide customers an avenue to create business stationery. PrintingSolutions.com will allow customers to track their purchases from start to finish. They will be able to view their selections online and make modifications at any time; customers will have access to service 24 hours a day, seven days a week.
The software that supports the online print shop is a collection of integrated software modules that will enable PrintingSolutions.com to quickly create, maintain, modify, or replace individual components. PrintingSolutions.com will create its proprietary software modules using development and technical standards and practices, and without significant dependencies on specific operating systems, databases, or Web server technologies. As a result, the company will be able to move portions of its software between different databases, operating systems, and Web server products to upgrade capacity or take advantage of price or performance improvements, as they become available.
The following is a description of the key software modules that will be found on the PrintingSolutions.com website:
Design Standards
PrintingSolutions.com will offer the following design standards:
Depth and Integration
PrintingSolutions.com will have depth, which means that the software will allow the customer to go beyond the basics. Depth will apply to each module individually: estimating, cost collection, and accounting. Software without depth is limited and can be frustrating to a consumer.
The company will have the ability to confirm customer information when processing an estimate. We will also be able to convert an estimate to a job and automatically allocate inventory, verify credit limits, allow for coverage, and put all outside buys on a ‘must buy’ list for purchasing and updating work-in-process. When a job is billed, all information will be fully automatic. Then, after billing, the work-in-process, job history, job archives, accounts receivable, sales tax, sales commission liability, sales revenue, production scheduling, active job file, and inventory files will all be automatically updated.
We will have depth in accounting. This implies the following:
Management will initially consist of Mr. Dalton Grant, president and CEO. Additionally, the company’s webmaster will act as assistant manager and oversee many of the day-to-day functions of the company.
Additional management personnel, such as a marketing manager and product managers, will be hired as growth dictates.
The company’s management philosophy will be based on responsibility and mutual respect. PrintingSolutions.com will maintain an environment and structure that will encourage productivity and respect for customers and fellow employees. Additionally, the environment will encourage employees to have fun by allowing creative independence and providing challenges that are realistic and rewarding. Printing Solution’s organizational structure is illustrated in the Personnel table below.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Dalton Grant | $34,785 | $35,000 | $47,825 |
Webmaster | $52,175 | $52,174 | $52,174 |
Website developers | $0 | $50,000 | $75,000 |
Marketing Coordinator | $34,785 | $34,783 | $39,131 |
Outsourcing Coordinator | $34,785 | $34,783 | $39,131 |
Office Assistant | $17,390 | $17,391 | $17,391 |
Total People | 5 | 5 | 5 |
Total Payroll | $173,921 | $224,131 | $270,652 |
Mr. Dalton Grant, President and CEO. Mr. Grant will be responsible for the direction and overall performance of PrintingSolutions.com. Mr. Grant was the CEO of Delta Printing Services. His previous positions included, Director of Network Systems Development in Nortel, in which he lead a team of over 350 people. His responsibilities at Nortel directly affected revenue of over $10 million.
Funding Requirements and Uses
The company will be raising $2 million for the purposes of:
Start-up Funding | |
Start-up Expenses to Fund | $880,000 |
Start-up Assets to Fund | $1,150,000 |
Total Funding Required | $2,030,000 |
Assets | |
Non-cash Assets from Start-up | $200,000 |
Cash Requirements from Start-up | $950,000 |
Additional Cash Raised | $0 |
Cash Balance on Starting Date | $950,000 |
Total Assets | $1,150,000 |
Liabilities and Capital | |
Liabilities | |
Current Borrowing | $500,000 |
Long-term Liabilities | $450,000 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
Total Liabilities | $950,000 |
Capital | |
Planned Investment | |
Investor 1 | $400,000 |
Investor 2 | $430,000 |
Dalton Grant | $250,000 |
Additional Investment Requirement | $0 |
Total Planned Investment | $1,080,000 |
Loss at Start-up (Start-up Expenses) | ($880,000) |
Total Capital | $200,000 |
Total Capital and Liabilities | $1,150,000 |
Total Funding | $2,030,000 |
PrintingSolutions.com currently has no operating history, which makes it difficult to forecast future operating results. The company will encounter risks and difficulties that start-ups frequently encounter in rapidly evolving and competitive markets. These risks include expanding the number of certified commercial print vendors and improving technological and logistical connections to these vendors. If these risks are not addressed successfully, the business will be seriously harmed.
Due to the nature of Internet business, the performance and fluctuations in quarterly sales and operating expenses will depend on the current marketplace and competition. The performance of PrintingSolutions.com will depend on market and industry risk factors that the company recognizes it will be subject to. The company’s view of its risks is as follows:
The success of PrintingSolutions.com will depend on a significant number of print-buying customers knowing about, and regularly using, our services. The market for Internet-enabled printing services is at an early stage of development. Many customers will be addressing issues such as quality, reliability, billing, delivery, and customer service for the first time in a self-service, Internet-based, print creation and ordering environment. Educating potential customers is a complex, time consuming and expensive process. In many cases, organizations must change established business practices and conduct business in new ways to use the services.
Nature and Limitation of Projections . This financial projection is based on sales volume at the levels described in the revenue section and presents, to the best of management’s knowledge and belief, the company’s expected assets, liabilities, capital, revenues, and expenses. The projections reflect management’s judgement of the expected conditions and its expected course of action given the hypothetical assumptions.
Nature of Operations. The company operates as an Oregon C-corporation.
Revenues. PrintingSolutions.com will generate revenues from the sale of a variety of printed products to end user customers. The company’s products and services will be available to customers through the PrintingSolutions.com and PrintingSolutionsB2B.com websites, managed PrintingSolutionsB2B.com affiliates and co-branded websites, and privately-branded websites.
The company will not recognize revenues until the product is shipped, collection of the receivable will be probable, and commercial print vendors have fulfilled all contractual obligations to the customer. PrintingSolutions.com will take title to all products that the company instructs its commercial print vendors to produce. PrintingSolutions.com believes that purchases by businesses will account for a majority of its revenues and will record sales net of discounts. The company will record the cost of promotional products that it will give away at no charge as a sales and marketing expense.
A significant portion of revenue will be generated through barter transactions with participants in the co-branded program in which PrintingSolutions.com will sell printed products in exchange for online advertising. Barter transaction revenues and related advertising costs will be recorded at the fair value of the goods or services provided or received, whichever will be more easily determined in the circumstances. The majority of revenues will be generated from sources within the United States; therefore, all sales will be in the United States dollar currency.
Expenses. The company’s expenses will be primarily those of salaries, sales commissions, and administrative costs. The company will categorize its operating expenses into research and development, sales and marketing, and general and administrative.
Research and development expenses will primarily consist of personnel costs, including costs related to consultants and outside contractors.
Sales and marketing expenses will consist of the cost of free promotional products, the cost of marketing programs including advertisements, costs to acquire email lists, personnel and related costs for our marketing staff and customer support groups, and participation in trade shows.
General and administrative expenses will primarily consist of personnel and related costs for corporate functions, including finance, accounting, legal, human resources, facilities, and management of commercial print vendor relationships.
Cost of sales. Cost of sales will primarily consist of direct expenses relating to printing products, rework and reprinting charges, shipping and handling fees, royalties on software licenses, and credit card processing fees.
The following chart and table outline the break-even analysis for PrintingSolutions.com.
Break-even Analysis | |
Monthly Revenue Break-even | $94,646 |
Assumptions: | |
Average Percent Variable Cost | 32% |
Estimated Monthly Fixed Cost | $64,359 |
PrintingSolutions.com is in the early stage of development; thus, initial projections have only been made on accounts that are believed to most drive the income statement. The following table provides Printing Solution’s projected income statements for 2000-2002. PrintingSolutions.com operates on a fiscal year ending in December. In order to reflect fiscal year projections of revenue and profit, only the last six months of year 2000 shows income. This reflects the projected launch date of the company.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $250,000 | $2,910,000 | $5,820,000 |
Direct Cost of Sales | $80,000 | $125,000 | $200,000 |
Other | $10,000 | $30,000 | $55,000 |
Total Cost of Sales | $90,000 | $155,000 | $255,000 |
Gross Margin | $160,000 | $2,755,000 | $5,565,000 |
Gross Margin % | 64.00% | 94.67% | 95.62% |
Expenses | |||
Payroll | $173,921 | $224,131 | $270,652 |
Marketing/Promotion | $429,998 | $360,000 | $565,000 |
Depreciation | $0 | $0 | $0 |
Software/IS expense | $90,000 | $60,000 | $85,000 |
Contract Labor | $26,091 | $35,000 | $35,000 |
Legal and Professiona expense | $20,002 | $10,000 | $10,000 |
Bank charges | $2,300 | $2,000 | $2,000 |
Rent | $30,000 | $15,000 | $15,000 |
Payroll Taxes | $0 | $0 | $0 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $772,312 | $706,131 | $982,652 |
Profit Before Interest and Taxes | ($612,312) | $2,048,869 | $4,582,348 |
EBITDA | ($612,312) | $2,048,869 | $4,582,348 |
Interest Expense | $83,535 | $63,252 | $42,084 |
Taxes Incurred | $0 | $496,404 | $1,153,984 |
Net Profit | ($695,847) | $1,489,213 | $3,386,280 |
Net Profit/Sales | -278.34% | 51.18% | 58.18% |
The following table has calculated that the company will have a negative cash outflow during the first year based on the start-up costs outlined in topic 2.0. However, the company will not begin financing or operations until July, 2000. In order to offset this supposed outflow, increases in the initial cash requirements in the Start-up table have been provided. The differences between calculated cash and actual needs will be used for other start-up costs. It is assumed that there will be no dividend payments for the first three years of business.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $62,500 | $727,500 | $1,455,000 |
Cash from Receivables | $128,267 | $1,552,257 | $3,675,524 |
Subtotal Cash from Operations | $190,767 | $2,279,757 | $5,130,524 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $190,767 | $2,279,757 | $5,130,524 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $173,921 | $224,131 | $270,652 |
Bill Payments | $717,104 | $1,175,362 | $2,096,935 |
Subtotal Spent on Operations | $891,024 | $1,399,493 | $2,367,587 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $166,656 | $166,656 | $166,688 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $45,000 | $45,000 | $45,000 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $1,102,680 | $1,611,149 | $2,579,275 |
Net Cash Flow | ($911,914) | $668,609 | $2,551,249 |
Cash Balance | $38,086 | $706,695 | $3,257,944 |
The following table outlines some key financial information for PrintingSolutions.com.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $38,086 | $706,695 | $3,257,944 |
Accounts Receivable | $59,233 | $689,476 | $1,378,952 |
Inventory | $14,667 | $22,917 | $36,667 |
Other Current Assets | $200,000 | $200,000 | $200,000 |
Total Current Assets | $311,986 | $1,619,088 | $4,873,563 |
Long-term Assets | |||
Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 |
Total Assets | $311,986 | $1,619,088 | $4,873,563 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $69,489 | $99,033 | $178,917 |
Current Borrowing | $333,344 | $166,688 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $402,833 | $265,721 | $178,917 |
Long-term Liabilities | $405,000 | $360,000 | $315,000 |
Total Liabilities | $807,833 | $625,721 | $493,917 |
Paid-in Capital | $1,080,000 | $1,080,000 | $1,080,000 |
Retained Earnings | ($880,000) | ($1,575,847) | ($86,634) |
Earnings | ($695,847) | $1,489,213 | $3,386,280 |
Total Capital | ($495,847) | $993,366 | $4,379,646 |
Total Liabilities and Capital | $311,986 | $1,619,088 | $4,873,563 |
Net Worth | ($495,847) | $993,366 | $4,379,646 |
The table below provides key ratios in the Industry Profile column for the commercial printing industry, as found in the Standard Industry Classifications (SIC) index, code 2759. We have projected healthy ratios for the first three years of operation, and foresee a continuing upwards trend throughout the company’s life.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 1064.00% | 100.00% | 2.00% |
Percent of Total Assets | ||||
Accounts Receivable | 18.99% | 42.58% | 28.29% | 27.00% |
Inventory | 4.70% | 1.42% | 0.75% | 11.70% |
Other Current Assets | 64.11% | 12.35% | 4.10% | 23.60% |
Total Current Assets | 100.00% | 100.00% | 100.00% | 62.30% |
Long-term Assets | 0.00% | 0.00% | 0.00% | 37.70% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 129.12% | 16.41% | 3.67% | 30.60% |
Long-term Liabilities | 129.81% | 22.23% | 6.46% | 25.50% |
Total Liabilities | 258.93% | 38.65% | 10.13% | 56.10% |
Net Worth | -158.93% | 61.35% | 89.87% | 43.90% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 64.00% | 94.67% | 95.62% | 36.90% |
Selling, General & Administrative Expenses | 280.80% | 47.95% | 39.59% | 19.10% |
Advertising Expenses | 40.00% | 6.01% | 4.30% | 0.60% |
Profit Before Interest and Taxes | -244.92% | 70.41% | 78.73% | 2.40% |
Main Ratios | ||||
Current | 0.77 | 6.09 | 27.24 | 2.06 |
Quick | 0.74 | 6.01 | 27.03 | 1.44 |
Total Debt to Total Assets | 258.93% | 38.65% | 10.13% | 56.10% |
Pre-tax Return on Net Worth | 140.34% | 199.89% | 103.67% | 4.90% |
Pre-tax Return on Assets | -223.04% | 122.64% | 93.16% | 11.20% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -278.34% | 51.18% | 58.18% | n.a |
Return on Equity | 0.00% | 149.92% | 77.32% | n.a |
Activity Ratios | ||||
Accounts Receivable Turnover | 3.17 | 3.17 | 3.17 | n.a |
Collection Days | 55 | 63 | 86 | n.a |
Inventory Turnover | 10.91 | 6.65 | 6.71 | n.a |
Accounts Payable Turnover | 11.32 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 26 | 23 | n.a |
Total Asset Turnover | 0.80 | 1.80 | 1.19 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.00 | 0.63 | 0.11 | n.a |
Current Liab. to Liab. | 0.50 | 0.42 | 0.36 | n.a |
Liquidity Ratios | ||||
Net Working Capital | ($90,847) | $1,353,366 | $4,694,646 | n.a |
Interest Coverage | -7.33 | 32.39 | 108.88 | n.a |
Additional Ratios | ||||
Assets to Sales | 1.25 | 0.56 | 0.84 | n.a |
Current Debt/Total Assets | 129% | 16% | 4% | n.a |
Acid Test | 0.59 | 3.41 | 19.33 | n.a |
Sales/Net Worth | 0.00 | 2.93 | 1.33 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Internet Printing Products | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $41,667 | $43,667 | $42,667 | $41,667 | $40,667 | $39,667 |
Other | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Sales | $0 | $0 | $0 | $0 | $0 | $0 | $41,667 | $43,667 | $42,667 | $41,667 | $40,667 | $39,667 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Internet Printing Products | $0 | $0 | $0 | $0 | $0 | $0 | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Dalton Grant | 0% | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 |
Webmaster | 0% | $4,348 | $4,348 | $4,348 | $4,348 | $4,348 | $4,348 | $4,348 | $4,348 | $4,348 | $4,348 | $4,348 | $4,348 |
Website developers | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Marketing Coordinator | 0% | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 |
Outsourcing Coordinator | 0% | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 |
Office Assistant | 0% | $1,449 | $1,449 | $1,449 | $1,449 | $1,449 | $1,449 | $1,449 | $1,449 | $1,449 | $1,449 | $1,449 | $1,449 |
Total People | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | |
Total Payroll | $14,494 | $14,494 | $14,494 | $14,494 | $14,494 | $14,494 | $14,493 | $14,493 | $14,493 | $14,493 | $14,493 | $14,493 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $0 | $0 | $0 | $0 | $0 | $41,667 | $43,667 | $42,667 | $41,667 | $40,667 | $39,667 | |
Direct Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 | $13,333 | |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | |
Total Cost of Sales | $0 | $0 | $0 | $0 | $0 | $0 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | $15,000 | |
Gross Margin | $0 | $0 | $0 | $0 | $0 | $0 | $26,667 | $28,667 | $27,667 | $26,667 | $25,667 | $24,667 | |
Gross Margin % | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 64.00% | 65.65% | 64.84% | 64.00% | 63.11% | 62.18% | |
Expenses | |||||||||||||
Payroll | $14,494 | $14,494 | $14,494 | $14,494 | $14,494 | $14,494 | $14,493 | $14,493 | $14,493 | $14,493 | $14,493 | $14,493 | |
Marketing/Promotion | $35,833 | $35,833 | $35,833 | $35,833 | $35,833 | $35,833 | $35,833 | $35,833 | $35,833 | $35,833 | $35,833 | $35,833 | |
Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Software/IS expense | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | $7,500 | |
Contract Labor | $0 | $0 | $0 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | $2,899 | |
Legal and Professiona expense | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | $1,667 | |
Bank charges | $50 | $50 | $50 | $50 | $50 | $50 | $333 | $333 | $333 | $333 | $333 | $333 | |
Rent | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | $2,500 | |
Payroll Taxes | 15% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $62,044 | $62,044 | $62,044 | $64,943 | $64,943 | $64,943 | $65,225 | $65,225 | $65,225 | $65,225 | $65,225 | $65,225 | |
Profit Before Interest and Taxes | ($62,044) | ($62,044) | ($62,044) | ($64,943) | ($64,943) | ($64,943) | ($38,558) | ($36,558) | ($37,558) | ($38,558) | ($39,558) | ($40,558) | |
EBITDA | ($62,044) | ($62,044) | ($62,044) | ($64,943) | ($64,943) | ($64,943) | ($38,558) | ($36,558) | ($37,558) | ($38,558) | ($39,558) | ($40,558) | |
Interest Expense | $7,770 | $7,623 | $7,476 | $7,329 | $7,182 | $7,035 | $6,888 | $6,741 | $6,594 | $6,447 | $6,300 | $6,153 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($69,814) | ($69,667) | ($69,520) | ($72,272) | ($72,125) | ($71,978) | ($45,446) | ($43,299) | ($44,152) | ($45,005) | ($45,858) | ($46,711) | |
Net Profit/Sales | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | -109.07% | -99.16% | -103.48% | -108.01% | -112.77% | -117.76% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $0 | $0 | $0 | $0 | $0 | $10,417 | $10,917 | $10,667 | $10,417 | $10,167 | $9,917 | |
Cash from Receivables | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,042 | $31,300 | $32,725 | $31,975 | $31,225 | |
Subtotal Cash from Operations | $0 | $0 | $0 | $0 | $0 | $0 | $10,417 | $11,958 | $41,967 | $43,142 | $42,142 | $41,142 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $0 | $0 | $0 | $0 | $0 | $10,417 | $11,958 | $41,967 | $43,142 | $42,142 | $41,142 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $14,494 | $14,494 | $14,494 | $14,494 | $14,494 | $14,494 | $14,493 | $14,493 | $14,493 | $14,493 | $14,493 | $14,493 | |
Bill Payments | $1,844 | $55,315 | $55,168 | $55,117 | $57,773 | $57,626 | $58,477 | $86,793 | $72,468 | $72,321 | $72,174 | $72,027 | |
Subtotal Spent on Operations | $16,338 | $69,809 | $69,662 | $69,611 | $72,267 | $72,120 | $72,970 | $101,286 | $86,961 | $86,814 | $86,667 | $86,520 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $13,888 | $13,888 | $13,888 | $13,888 | $13,888 | $13,888 | $13,888 | $13,888 | $13,888 | $13,888 | $13,888 | $13,888 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | $3,750 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $33,976 | $87,447 | $87,300 | $87,249 | $89,905 | $89,758 | $90,608 | $118,924 | $104,599 | $104,452 | $104,305 | $104,158 | |
Net Cash Flow | ($33,976) | ($87,447) | ($87,300) | ($87,249) | ($89,905) | ($89,758) | ($80,191) | ($106,965) | ($62,632) | ($61,310) | ($62,163) | ($63,016) | |
Cash Balance | $916,024 | $828,577 | $741,277 | $654,028 | $564,123 | $474,365 | $394,174 | $287,209 | $224,576 | $163,266 | $101,103 | $38,086 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $950,000 | $916,024 | $828,577 | $741,277 | $654,028 | $564,123 | $474,365 | $394,174 | $287,209 | $224,576 | $163,266 | $101,103 | $38,086 |
Accounts Receivable | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $31,250 | $62,958 | $63,658 | $62,183 | $60,708 | $59,233 |
Inventory | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $14,667 | $14,667 | $14,667 | $14,667 | $14,667 | $14,667 |
Other Current Assets | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 | $200,000 |
Total Current Assets | $1,150,000 | $1,116,024 | $1,028,577 | $941,277 | $854,028 | $764,123 | $674,365 | $640,091 | $564,834 | $502,901 | $440,116 | $376,478 | $311,986 |
Long-term Assets | |||||||||||||
Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Assets | $1,150,000 | $1,116,024 | $1,028,577 | $941,277 | $854,028 | $764,123 | $674,365 | $640,091 | $564,834 | $502,901 | $440,116 | $376,478 | $311,986 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $53,476 | $53,334 | $53,192 | $55,852 | $55,710 | $55,568 | $84,377 | $70,057 | $69,915 | $69,773 | $69,631 | $69,489 |
Current Borrowing | $500,000 | $486,112 | $472,224 | $458,336 | $444,448 | $430,560 | $416,672 | $402,784 | $388,896 | $375,008 | $361,120 | $347,232 | $333,344 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $500,000 | $539,588 | $525,558 | $511,528 | $500,300 | $486,270 | $472,240 | $487,161 | $458,953 | $444,923 | $430,893 | $416,863 | $402,833 |
Long-term Liabilities | $450,000 | $446,250 | $442,500 | $438,750 | $435,000 | $431,250 | $427,500 | $423,750 | $420,000 | $416,250 | $412,500 | $408,750 | $405,000 |
Total Liabilities | $950,000 | $985,838 | $968,058 | $950,278 | $935,300 | $917,520 | $899,740 | $910,911 | $878,953 | $861,173 | $843,393 | $825,613 | $807,833 |
Paid-in Capital | $1,080,000 | $1,080,000 | $1,080,000 | $1,080,000 | $1,080,000 | $1,080,000 | $1,080,000 | $1,080,000 | $1,080,000 | $1,080,000 | $1,080,000 | $1,080,000 | $1,080,000 |
Retained Earnings | ($880,000) | ($880,000) | ($880,000) | ($880,000) | ($880,000) | ($880,000) | ($880,000) | ($880,000) | ($880,000) | ($880,000) | ($880,000) | ($880,000) | ($880,000) |
Earnings | $0 | ($69,814) | ($139,480) | ($209,000) | ($281,272) | ($353,397) | ($425,374) | ($470,821) | ($514,120) | ($558,272) | ($603,277) | ($649,136) | ($695,847) |
Total Capital | $200,000 | $130,186 | $60,520 | ($9,000) | ($81,272) | ($153,397) | ($225,374) | ($270,821) | ($314,120) | ($358,272) | ($403,277) | ($449,136) | ($495,847) |
Total Liabilities and Capital | $1,150,000 | $1,116,024 | $1,028,577 | $941,277 | $854,028 | $764,123 | $674,365 | $640,091 | $564,834 | $502,901 | $440,116 | $376,478 | $311,986 |
Net Worth | $200,000 | $130,186 | $60,520 | ($9,000) | ($81,272) | ($153,397) | ($225,374) | ($270,821) | ($314,120) | ($358,272) | ($403,277) | ($449,136) | ($495,847) |
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Home » Business Plans » B2B Sector
Are you about starting a flex printing press company? If YES, here is a complete sample flex printing press business plan template & FREE feasibility report.
As an aspiring entrepreneur who is looking towards starting a business, one of the businesses you can choose to start is a flex printing business. Starting up a flex printing business needs significant investment capital, solid planning, and attention to detail in order to keep your business profitable.
In recent time, the demand for the services provided by flex printing press maybe on the decrease because of load options that are available.
So, if you have decided to start your own flex printing press business, then you should ensure that you carry out thorough feasibility studies and market survey. This will enable you properly locate the business in a good location; a location with the right demographic composition and then hit the ground running.
Business plan is yet another very important business document that you should not take for granted when launching your own flex printing business. Below is a sample flex printing business plan template that can help you to successfully write your own with little or no difficulty.
1. industry overview.
The printing industry is indeed a very large industry with many subsets and flex printing press is one of the active lines of business in the industry.
Flexible printing refers to sign printing of vinyl banners. Flexography is a form of printing which utilizes a flexible relief plate. Digital printing cum flex printing has a higher cost per page than more traditional offset printing methods, but this price is usually offset by avoiding the cost of all the technical steps required to make printing plates.
It also allows for on-demand printing, short turnaround time, and even a modification of the image (variable data) used for each impression. Over the past decade, the rise of online media has provided fierce competition for operators in printing-related industries.
Despite this trend, and in some ways because of it, the Digital Printing industry has recorded growth. As commercial printers have experienced declining demand, they have increasingly adopted digital printing techniques over more traditional printing press operations, since these services lower overhead costs and enable operators to offer customers greater flexibility.
As a result, Digital Printing industry participation and revenue have surged, but represent the conversion of existing printers to digital operations, rather than new entrants into the printing market.
The Digital Printing Services Industry is indeed a very large industry and pretty much active in all the parts of the world. Statistics has it that in the united states of America alone, there are about 7,047 registered and licensed digital printing services (flex printing press inclusive) responsible for employing about 50,447 people and the industry rakes in a whooping sum of $11 billion annually.
The industry is projected to enjoy 3.6 percent annual growth and the Digital Printing industry has no companies with major market shares.
Research carried out by IBISWorld shows that the over the past five years, the Digital Printing industry that flex printing is a part of has grown by 3.6 percent to reach revenue of $11 billion in 2019. In the same time – frame, the number of businesses have grown by 5.5 percent and the number of employees by 4.8 percent.
If you are looking towards starting your own flex printing business, then you should endeavor to learn the trade. The truth is that the technology and processes involve in this line of business will require a period of time (months) to learn.
Over and above, the flex printing business is pretty much open to new entrepreneurs and investors to come in and build a successful business. But they must first and foremost ensure that they conduct thorough feasibility studies and market survey before situating the business in any location.
Crystal Clear™ Flex Printing Press, Inc. is a standard printing press. We have been able to secure a well – positioned office facility in a busy business district in Greater Los Angeles Area – California. We are a world class flex printing press that is set to compete in the highly competitive digital printing services industry not only in the United States market, but also in the global market.
Crystal Clear™ Flex Printing Press, Inc. will be involved in the all aspect of flex printing used for large board, Digital banner, paper, PVC, mesh fabrics, and foot cloth, Indoor wall paper, ceiling films, Textiles, Car sticker, bus shelters and related printing services.
Our business goal is to become one of the leading flex printing press businesses in the United States and we will make sure that every flex printing job that leaves our press can favorable compete with the best in the industry.
Our workers are going to be selected from a pool of talented and highly creative printers in and around Greater Los Angeles Area – California. We will make sure that we take all our workforce through the required training that will position them to meet the expectation of the company and to compete with leading flex printing services companies in the United States.
At Crystal Clear™ Flex Printing Press, Inc. our client’s best interest come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by delivering excellent and neat jobs and also meet our client’s needs precisely and completely.
Crystal Clear™ Flex Printing Press, Inc. is a private business that is owned and managed by Mr. Leonard Phil and his immediate family members. Leonard Phil studied Printing Technology at Illinois Institute of Technology and he has over 10 years of hands-on experience working with one of the leading flex printing companies in the United States of America.
Crystal Clear™ Flex Printing Press, Inc. was established with the aim of maximizing profits in the digital printing press industry.
We want to compete favorably with the leading flex printing press companies in the United States of America which is why we have put in place a competent quality assurance team that will ensure that all our flex printing services for large board, Digital banner, paper, PVC, mesh fabrics, and foot cloth, Indoor wall paper, ceiling films,
Textiles, Car sticker, bus shelters and other related printing services rendered meet and even surpass our customers’ expectations and match up with international best practices.
We will work hard to ensure that Crystal Clear™ Flex Printing Press, Inc. is not just accepted in Greater Los Angeles Area – California but also nationally throughout the United States of America.
Our Business Structure
Crystal Clear™ Flex Printing Press, Inc. is a flex printing press business that intends starting small in Greater Los Angeles Area – California, but hopes to grow big in order to compete favorably with leading flex printing companies in the industry both in the United States and on a global stage.
We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own, this is why we are committed to only hire the best hands within our area of operation.
At Crystal Clear™ Flex Printing Press, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
Flex Printing Machine Operators
Client Service Executive
Chief Executive Officer – CEO:
Accounting Clerk/Cashier:
Crystal Clear™ Flex Printing Press, Inc. employed the services of a core professionals in the area of business consulting and structuring to assist our organization in building a well – structured flex printing business that can favorably compete in the highly competitive digital printing services industry.
Part of what the business consultant did was to work with the management of our organization in conducting a SWOT analysis for Crystal Clear™ Flex Printing Press, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Crystal Clear™ Flex Printing Press, Inc.;
Our core strength lies in the power of our team; our workforce. We have a team of creative and highly proficient workforce, a team with excellent qualifications and experience in various niche areas in the printing industry. Aside from the synergy that exists in our carefully selected workers, we have some of the latest flex printing machines and equipment and of course our work output and services will be guided by international best practices in the industry.
As a new flex printing press business in Greater Los Angeles Area – California, it might take some time for our organization to break into the market and gain acceptance especially from the government and other high-profile clients in the already saturated and highly competitive digital printing services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
No doubt, the opportunities in the digital printing services industry is massive considering the number of individuals and corporate organizations that would need the services of flex printing companies. As a standard flex printing press business, we are ready to take advantage of any opportunity that is available in the industry.
A major threat that is common to businesses such as ours is the fact that printing-related industries have generally suffered due to competition from digital media and the fact that print advertising expenditure in the United States of America is expected to decline in 2019, posing a potential threat to the industry.
A notable trend in this industry shows that as commercial printers have experienced declining demand, they have increasingly adopted new digital printing techniques. As a flex printing business with the aspiration to favorably compete in the industry, you are expected to keep tabs with new trends and products that are always coming up in the industry.
It is important to state that in recent time, for any flex printing press business to continue to stay in business and grow, they must continue to come up with highly creative design and concepts and also engage in other printing related services.
Before starting our flex printing business, we are certain that there is a wide range of clients who cannot successfully carry out promotions and branding of their products and services without engaging the services of a flex printing press. We will ensure that we develop strategic pacts with corporate organizations, advertising and branding agencies, and religious organizations et al. This will give us several options to generate revenue for our company.
In view of that, we have created strategies that will enable us reach out to various corporate organizations and individuals who we know can’t afford to do without our services. We have conducted our market research and survey and we will ensure that all our flex printing services are well accepted in the market place.
Below is a list of the people and organizations that we will specifically market our products and services to;
Our competitive advantage
The competition in the flex printing industry is getting stiffer by the day, you have to be highly creative and come up with appealing designs and concepts and very neat jobs in order to survive in the industry. The flex printing line of business is indeed profitable and at the same time a highly competitive; it enjoys strong demand as organizations and individuals continue to print materials for promotional purposes. Clients will only engage your services if they know that they can get nothing but the best from you.
We are quite aware that to be highly competitive in the business means that you are not only expected to be able to deliver neat jobs, but you must be able to meet set targets. No one would want to engage your services if don’t always meet up with the target date of completion of projects.
We can boast of having well – trained staff that is ready to deliver and we have some of the latest and efficient digital printing machines and equipment and of course our work output and services will be guided by international best practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
We are not ignorant of the stiff competition in the flex printing industry; there are loads of flex printing press and other digital printing companies jostling for contracts which is why we have been able to hire some of the best freelance marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their set targets and the overall business goal of Crystal Clear™ Flex Printing Press, Inc.
Our goal is to grow Crystal Clear™ Flex Printing Press, Inc. to become one of the leading flex printing companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Greater Los Angeles Area – California but also in other cities in the United States of America.
Crystal Clear™ Flex Printing Press, Inc. is set to make use of the following marketing and sales strategies to attract clients and win flex printing contracts;
Sources of Income
Crystal Clear™ Flex Printing Press, Inc. is established with the aim of maximizing profits in the flex printing services industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients.
Crystal Clear™ Flex Printing Press, Inc. will generate income by offering flex printing used for large board, Digital banner, paper, PVC, mesh fabrics, and foot cloth, Indoor wall paper, ceiling films, Textiles, Car sticker, bus shelters and other printing related services.
We are well positioned to take on the available market in flex printing industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our flex printing press business to enviable heights.
We have been able to examine the flex printing market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Greater Los Angeles Area – California.
Below are the sales projections for Crystal Clear™ Flex Printing Press, Inc., it is based on the location of our business and of course the wide range of our services and target market;
N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same flex printing services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
We have been able to work with brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for clients in the whole of the Great Los Angeles area and beyond which is why we have made provisions for effective publicity and advertisement of our flex printing press business.
Below are the platforms we intend to leverage on to promote and advertise Crystal Clear™ Flex Printing Press, Inc.;
If you are conversant with the flex printing cum digital printing services industry, you will realize that the pricing structure ranges from fixed price rate to per square foot billing and even to the quantity of materials to be printed on.
At Crystal Clear™ Flex Printing Press, Inc. we will adopt all the pricing system as is obtainable in the industry but we will ensure that we keep the prices of our services a little below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to all our customers at regular intervals.
We are aware that there are some one – off flex printing services jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
The payment policy adopted by Crystal Clear™ Flex Printing Press, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Crystal Clear™ Flex Printing Press, Inc. will make available to her clients;
In view of the above, we have chosen banking platforms that will enable our clients make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
From our market research and feasibility studies, we were able to come up with the following financial projections as it relates to establishing our own standard and world class flex printing press business in the United States of America;
We will need about one hundred twenty thousand (120,000) U.S. dollars to successfully set up a medium scale but standard flex printing press business in the United States of America.
Generating Funds/Startup Capital for Crystal Clear™ Flex Printing Press, Inc.
Crystal Clear™ Flex Printing Press, Inc. is a family business that will be owned by Mr. Leonard Phil and his immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
N.B: We have been able to generate about $50,000 (Personal savings $35,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $70,000 from our bank. All the papers and document have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
One of our major goals of starting Crystal Clear™ Flex Printing Press, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our flex printing services a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Crystal Clear™ Flex Printing Press, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken care of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.
We know that if we effectively execute all that is stated above, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List/Milestone
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This is a practical guide that will walk you step by step through all the essentials of starting your business. The book is packed with guides, worksheets and checklists. These strategies are absolutely crucial to your business' success yet are simple and easy to apply.
Checklist for Starting a Business: Essential Ingredients for Success
If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!
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The Single Most Important Ingredient for Business Success
The first and most important thing you need to acquire in order to succeed in a small business is... knowledge.
Sounds exaggerated? Listen to this...
According to research conducted by Dun & Bradstreet, 90% of all small business failures can be traced to poor management resulting from lack of knowledge.
This is backed up by my own personal observations. In my 31 years as a business coach and consultant to small businesses, I've seen practically dozens of small business owners go under and lose their businesses -- not because they weren't talented or smart enough -- but because they were trying to re-invent the wheel rather than rely on proven, tested methods that work.
Conclusion: if you are really serious about succeeding in a business... If you want to avoid the common traps and mistakes... it is absolutely imperative that you acquire the right knowledge.
"Why Invent Mediocrity, When You Can Copy Genius?"
That's an excellent quote I picked up from a fellow business owner a few years back. What this means is that you should see what is working and try to duplicate Printing Business. Why go through all the trouble of inventing something new, that you don't even know will ever work, when you can easily learn from and duplicate something that has been a proven success?
[ Note: One of the BIGGEST mistakes almost all new businesses make is that they WASTE tons of valuable time, energy and money on trying to create something "new", that has never been tested or proven... only to find out later that it was a total loss. Don't make the same mistake! ]
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Here's what you'll discover in the 'How to Start a Printing Business Plan' PDF book:
Success Tip: Setting Goals
Good management is the key to success and good management starts with setting goals. Set goals for yourself for the accomplishment of the many tasks necessary in starting and managing your business successfully. Be specific. Write down the goals in measurable terms of performance. Break major goals down into sub-goals, showing what you expect to achieve in the next two to three months, the next six months, the next year, and the next five years. Beside each goal and sub-goal place a specific date showing when it is to be achieved.
Plan the action you must take to attain the goals. While the effort required to reach each sub-goal should be great enough to challenge you, it should not be so great or unreasonable as to discourage you. Do not plan to reach too many goals all at one time.
Establish priorities. Plan in advance how to measure results so you can know exactly how well you are doing. This is what is meant by "measurable" goals. If you can’t keep score as you go along you are likely to lose motivation. Re-work your plan of action to allow for obstacles which may stand in your way. Try to foresee obstacles and plan ways to avert or minimize them.
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Here're other free books in the "how to start a business" series that may interest you:
Here's a Sample 'Executive Summary' for a Printing Business plan :
COMPANY NAME is a 100% woman privately owned and operated S Corporation with well established relationships in the rapidly-growing Tri-Valley region of San Francisco's East Bay. It was incorporated in 2004. COMPANY NAME was founded by INSERT NAME and fully operated by INSERT NAMES who is established as Vice President of Sales and Acquisitions. Located in the rapidly-growing Tri-Valley region of San Francisco's East Bay, Dublin is located at the crossroads of I-580 and I-680. Dublin is 14.01 square miles in size and currently has an approximate population of 41,907 (and growing). Dublin has a mild climate and a positive attitude toward commercial, industrial and residential growth. COMPANY NAME already does well in the area and even nationwide and overseas due to the company's availability and presence online. In the early 1990s, INSERT NAME launched his career in the printing industry with a sales position at a regional auto sales publication. Over the next few years, he made great professional strides, continuing his career with the #1 rated local daily newspaper. In 1995, he took the next step in his career as a sales representative with one of the premier, high-end printers in the country, Lithographix. INSERT NAME spent the next decade working for various high-end commercial printers, learning the industry, increasing his printing knowledge, and building relationships. His growing list of clients learned that his experience and expertise were second to none. In early 2004, these customers began expressing their desire to have Mike manage ALL of their printing needs, not just the high-end projects. There was a need in the marketplace to have a company that could facilitate all levels of printing. And so, in the fall of 2004, in response to these client demands, INSERT NAME, launched COMPANY NAME. INSERT NAME has over 12 years of marketing and sales experience across a broad spectrum of business types. She has worked as a marketing manager for the Clayton, CA office of Better Homes Realty; as a product marketing manager for Premenos, an EDI software developer; as a marketing manager at Net Wireless, where she directed all collateral and direct mail efforts; as an account executive at AT&T's cable accounts division; and most recently as a sales representative at All American Label. Her in-depth understanding of marketing and sales needs across various business platforms leaves her uniquely qualified to help clients strategize and fulfill their own promotional needs.
1.1 Objectives
1. To generate generous annual sales by the third year of this plan. 2. To establish a tiered client hierarchy:
3. To hire permanent employees and eliminate the need for independent contractors, providing more job stability to the area. 4. To establish business and sell services in the greater Northern and Southern California areas. 5. To be a true one-stop operation by being able to accommodate all of a customer's printing needs from consulting and design assistance to printing, binding, and distribution. Our goal is to eliminate the need for our customers to source any printing outside of our scope. 6. To promote an awareness of green technology and eco-friendly product and publication and so as to support sales and income goals through aggressive marketing and telephone contact. This awareness will come from both marketing and word-of-mouth referrals.
COMPANY NAME is a printing solutions provider dedicated to offering a single source for all printing needs with a priority on earning and maintaining our customer's trust. COMPANY NAME will maintain a consistent and reasonable margin while providing customers with a fair price and exceptional service in the United States and abroad. The company will also maintain a friendly, fair, and creative work environment that respects new ideas and hard work. With the demise of the newspaper industry many advertisers are seeking ways to reach each consumer in the market place without major expenses of direct mail and postage costs. COMPANY NAME has created a solution, the PRODUCT NAME. [INSERT PRODUCT FUNCTION]. Customers are able to pick and choose market zone coverage by zip codes and receive a cost effective way to reach consumers in their desired demographic areas. COSTCO Business Value Book, COMPANY NAME and their advertising team has been chosen to produce the quarterly COSTCO BVB book for the Livermore / Pleasanton market. Many other Costco’s are now considering COMPANY NAME to produce the very same advertising vehicle for their warehouse’s. Both of these vehicles allow our sales force to cross sell into all vehicles and build relationships for our design, print and collateral capabilities.
The keys to the success of COMPANY NAME are:
COMPANY NAME is a 100% woman privately owned and operated S Corporation with well established relationships in the rapidly-growing Tri-Valley region of San Francisco's East Bay. It was incorporated in 2004, but was conceived and begun in 1996. COMPANY NAME was founded by INSERT NAME and fully operated by INSERT NAMES, who is established as Vice President of Sales and Acquisitions. Located in the rapidly-growing Tri-Valley region of San Francisco's East Bay, Dublin is located at the crossroads of I-580 and I-680. Dublin is 14.01 square miles in size and currently has an approximate population of 41,907 (and growing). Dublin has a mild climate and a positive attitude toward commercial, industrial and residential growth. Touch Plate, Inc. already does well in the area and even nationwide and overseas due to the company's availability and presence availability online.
COMPANY NAME is a privately-held California S-Corporation. INSERT NAME the company's founder, is the President and Operations Manager. INSERT NAME is the Vice President of Sales and Acquisitions. INSERT NAME will be handling the marketing, sales and commercial print volume.
COMPANY NAME was incorporated in February of 2004 by INSERT NAME. The company has been 100% female owned and operated since the date of incorporation. As the printing industry's time is waning, COMPANY NAME is already merging into the advertising and publishing industries with the company publication PRODUCT NAME, which focuses on an eco friendly yet modern way of lifestyle and business. Although 92% of the company's sales are Northern California based, COMPANY NAME does have a healthy amount of clientele in other parts of the country and abroad.
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| 2007 | 2008 | 2009 |
Sales | $1,063,976 | $936,713 | $594,077 |
Gross Margin | $1,063,976 | $936,713 | $594,077 |
Gross Margin % | 100.00% | 100.00% | 100.00% |
Operating Expenses | $1,036,136 | $851,427 | $591,948 |
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Balance Sheet |
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| 2007 | 2008 | 2009 |
Current Assets |
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Cash | $8,912 | $34,489 | $835 |
Other Current Assets | $3,198 | $3,198 | $54,912 |
Total Current Assets | $12,110 | $37,687 | $55,747 |
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Long-term Assets |
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Long-term Assets | $0 | $0 | $0 |
Accumulated Depreciation | $0 | $0 | $39,916 |
Total Long-term Assets | $0 | $0 | ($39,916) |
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Total Assets | $12,110 | $37,687 | $15,831 |
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Current Liabilities |
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Accounts Payable | $0 | $0 | ($1,962) |
Current Borrowing | ($23,066) | ($37,784) | $4,361 |
Other Current Liabilities (interest free) | $0 | $0 | $0 |
Total Current Liabilities | ($23,066) | ($37,784) | $2,399 |
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Long-term Liabilities | $16,747 | $66,247 | $4,361 |
Total Liabilities | ($6,319) | $28,463 | $6,760 |
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Paid-in Capital | $0 | $0 | $0 |
Retained Earnings | ($161,344) | ($201,388) | ($294,588) |
Earnings | $179,773 | $210,612 | $303,659 |
Total Capital | $18,429 | $9,224 | $9,071 |
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Total Capital and Liabilities | $12,110 | $37,687 | $15,831 |
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Other Inputs |
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Payment Days | 0 | 0 | 0 |
3.0 Products
COMPANY NAME provides custom solutions for business printing needs. COMPANY NAME is a service for customers that are looking for a one-stop solution for all of their printing needs. The company provides them with an overall cost savings through strategy of job specific solution sales. COMPANY NAME solutions focus on the needs of the customer, the time frame for the project and the overall scope of work. With well established vendor partners, COMPANY NAME can accommodate any job size with solutions tailored to the specific need and can further reduce costs by aggregating and allocating among the various sources. Products and services include: SERVICES:
Teams have been touted as a way to replace managers, evoke initiative, assist in leadership development and save the Queen. In reality, the synergy that's possible in teamwork usually turns out to be chaos. Here are 10 tips on making the most of your team.
1. Give the team (or have them create) a big enough vision or outcome.
If the goal isn't bigger than the personalities of the team members, the team's effectiveness will be mediocre, due to ego.
2. Train all team members in the standards of behavior of the team's communication, response and interaction.
These ground rules are designed to keep the team's communication clean and make team membership mean something. Bad attitudes, delayed responses, nattering, gossiping, whining or politicking are grounds forexplusion.
3. Have the team vote the Team Leader.
Leadership is still required in a team environment. Not a manager, but a Team Leader. A Team Leader should have the confidence of everyone and not the person with the power to hire and fire, unless the members are OK with that.
4. Install structures to support the team and keep it moving.
Daily or weekly reporting, public display of team goals/results,etc., helps everyone on the team get that they ARE on a team and that the team is accomplishing something.
5. Teams need a member/manager who manages the details and flow of idea sand information.
Have one team member be the person who makes sure that ideas are catalogued, agreements are kept, promises are made and that input from team members "goes" somewhere good and not into the ethers.
6. Include periodic meetings where the agenda is how the team can work better together -- and no other agenda for that meeting.
It's KEY that two things happen, otherwise these "effectiveness"meetings become too personal/venting/gripe sessions. First, make it aground rule that any unresolved/uncommunicated issues among/between team members must be completed resolved PRIOR to the next effectiveness meeting. This will help the meetings be positive and healthy progress/bragging sessions vs hurtful or finger-pointing slugfests. Second, have every team member make one suggestion for team effectiveness improvement prior to the meeting, so they can propose it during the meeting.
7. Know when a team approach is called and know when it's "not enough."
8. Continual, accurate and frequent acknowledgment
A big part of what makes the synergy of a team work is that individual team members are publicly acknowledged for what they've done to help the team and/or forward the outcome/goal. However, keep this praise accurate vs manipulative puffery.
9. Team meetings should be exciting moments of creating, not reporting.
Pose a great question or significant problem for the meeting,don't make it be a boring reporting session -- that's why God invented email and copy machines. If there's any reporting to do, keep it short shares about the wins and progress.
10. Teams work best when people enjoy each other's company.
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Document description.
This printing company business plan template has 33 pages and is a MS Word file type listed under our business plan kit documents.
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Updated: Jun 5, 2024, 10:00am
Understanding print-on-demand, identify your niche, pick and design your product, set up your store, market your business, manage your pod business, frequently asked questions (faqs).
Starting a print-on-demand (POD) business taps into the zeitgeist of entrepreneurship, combining creativity with technology to cater to niche markets. Imagine merging your original designs with an eager online audience, minus the hassle of inventory. This model allows artists and entrepreneurs to create custom products per order, cutting down on waste and reducing risk. With every click, your art transforms into merchandise, shipped directly to your customer’s doorstep. This isn’t just a business venture; it’s a digital atelier where your designs meet demand, effortlessly.
In a world where immediacy meets customization, the print-on-demand business model is reshaping how products are created and sold. This digital-centric approach aligns with the growing demand for personalized goods, served fresh to the consumer without the traditional wait.
PPOD is an order fulfillment method where items are printed and produced as each sale is made. Unlike pre-made inventory, a POD item does not exist until a customer chooses it. At its core, it’s a just-in-time production model that focuses on personalization and eliminates the need for bulk production.
Traditional retail is akin to casting a net. Produce in volume and hope for a catch. Conversely, POD operates more like a fishing line, crafting a single lure for each individual fish that shows interest. The traditional model demands significant upfront investment for inventory, a gamble on trends and a challenge of storage space. POD sidesteps these issues by creating products only after they’ve been ordered, reducing the financial burden on the seller and creating space for boundless creativity in the market.
Carving out a unique space in the print-on-demand market isn’t just beneficial. It’s essential for your brand’s identity and survival. By zeroing in on a niche, you tailor your business to serve a specific segment of the market, creating a direct path to consumers who seek out products that resonate personally with them.
Start by scouting for untapped areas within the market. Look for interests, hobbies or communities that are underserved. By filling these gaps, your products become the sought-after answer to a previously unmet need.
Stay ahead by keeping a pulse on current consumer behaviors and preferences. Use tools such as Google Trends to monitor what potential customers are searching for. Aligning your offerings with these interests can position you as a go-to source.
Engage in social listening by monitoring social platforms and forums related to your potential niche. Observing conversations can provide insights into what products might resonate and what gaps exist in the current market offerings.
Position yourself as an expert within your niche. Create content that educates and entertains, all while showcasing your products. This not only builds trust but also fosters a community around your brand.
The core of your print-on-demand business lies in the products you choose and the designs you apply. This stage is where your brand’s vision comes to life and where your market’s needs meet your creative expression.
Consider the products that best serve as the vehicle for your designs. Whether it’s apparel, accessories or home decor, your ‘canvas’ should align with your brand ethos and appeal to your target niche. Quality is as important as the aesthetic appeal. Durable materials and comfortable fits go a long way in ensuring customer satisfaction and repeat business.
Your designs are the heartbeat of your products. They must capture the essence of your niche and stand up to market trends. Employ a mix of timeless concepts and timely themes to keep your offerings fresh and relevant. Don’t go with too many variations at first.
Before committing to a full product line, test your designs. Use digital mock-ups and advertise them on social media or your website to gauge interest. This can be an informative feedback loop, helping to refine your designs with real-world data.
Quality in print translates to quality in perception. Ensure your designs are high-resolution and formatted to fit the specifications of your chosen products. Clear, crisp prints are essential for a professional look that builds credibility and satisfaction.
Your pricing strategy should reflect the quality of your products, the spending power of your niche and your overall business costs. It’s a delicate balance between being competitively priced and maintaining healthy profit margins.
Creating a digital storefront for your print-on-demand business marks a significant milestone. It’s where your products meet their audience and where customers engage with your brand story.
Select a print-on-demand partner as the cornerstone of your fulfillment process. Evaluate potential partners for their product quality, fulfillment timelines and overall reliability. The right partner will align with your brand, offer the products you plan to sell and meet your standards for quality. This choice extends your brand’s reach and reputation.
Your online store is the virtual face of your brand. Aim for a welcoming and easily navigable space where customers can find their desired products effortlessly. Key elements include a clean design, crisp product images and readily accessible product information.
Ensure your store supports a smooth shopping journey with reliable payment processing, intuitive shopping cart design and secure transaction protocols. Trust and efficiency are paramount in converting and retaining customers.
A store optimized for a superior UX is likely to retain visitors. This encompasses mobile-responsive designs, quick load times and streamlined checkout processes. Attention to detail in user experience can reduce bounce rates and boost conversions substantially.
Foster customer trust through transparency. Articulate your shipping, returns and customer service policies clearly and make them easy to find. Customers are more comfortable making purchases when they understand the terms.
Consider your store’s launch as an event to generate excitement and attract customers. A strategic launch might include special promotions, collaborations with influencers or targeted advertising campaigns to generate interest and direct traffic to your store.
When setting up your store, remember that you’re not just listing products—you’re constructing an experience. Every aspect of your store should reflect the dedication and quality behind your print-on-demand business.
Marketing your print-on-demand business is about connecting your products with the people who will love them most. It’s a dynamic process that involves strategy, adaptability and an understanding of where your audience spends their time.
Your brand identity is the narrative thread that connects your products to your customers. Craft a story that encapsulates your mission, your aesthetic and the value you provide. This narrative should be consistent across all marketing materials and platforms to create a memorable brand presence.
Social media platforms are pivotal for reaching out to your target audience. Use platforms favored by your demographic to showcase your products with engaging content. Regular posts, stories and interactions with followers build a community around your brand.
Content marketing attracts and retains customers by creating and sharing valuable content. Blog posts, videos and infographics about topics related to your niche can drive traffic to your store, improve search engine rankings and position you as an authority in your field.
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Collecting emails allows for direct communication with your customers. Send newsletters, product updates and personalized offers to foster loyalty and encourage repeat purchases. The right email at the right time can turn a prospect into a customer and a customer into a brand ambassador.
Paid ads can amplify your reach quickly and effectively. Platforms, such as Google Ads or Facebook’s targeted advertising, can place your products in front of potential customers who have expressed interest in similar items.
Collaborate with influencers who resonate with your niche. Their endorsement can introduce your brand to a broader yet still targeted audience. Choose influencers whose followers align with your ideal customer profile for a more effective partnership.
Launching a print-on-demand business is just the beginning. Managing your operations effectively is vital for longevity and success. Evaluating your strategy and adapting to customer feedback regularly can keep your products fresh and relevant.
Track which products are your best sellers and understand your traffic sources. Tools, such as Google Analytics, can offer insights into customer behavior, helping you to refine your marketing efforts and inventory decisions.
Respond to customer inquiries promptly and resolve issues with a personal touch. Establishing a reputation for attentive customer service can lead to repeat purchases and word-of-mouth referrals.
Continuously assess your production workflow and order fulfillment processes. Identifying bottlenecks and implementing solutions can reduce costs and improve delivery times.
While print-on-demand often eliminates the need for physical inventory, managing your design assets and their availability on different products is crucial. Ensure your designs are updated and properly formatted for the range of products you offer. As you scale, you’ll appreciate having an organized system in place before you need it.
Build a relationship with your audience through social media and email campaigns. Share behind-the-scenes content, new product launches and customer testimonials to keep your audience engaged and invested in your brand.
Regularly add new designs to your portfolio and retire ones that are less popular. Staying on top of trends and seasons keeps your product line exciting and relevant.
Keep a close watch on your finances. Regular reviews of your revenue, profit margins and expenses will inform business decisions and strategies for growth.
Use analytics tools to track the success of your marketing efforts. Monitor metrics, such as website traffic, conversion rates and social media engagement. Use this data to understand customer behavior and refine your marketing strategies.
Marketing your print-on-demand business requires thoughtful planning and execution. It’s a mix of brand storytelling, strategic online engagement and continuous adjustment based on data and customer feedback. Each marketing action should be an intentional step toward building a strong, vibrant brand that resonates with your audience and brings your products into the spotlight.
A printon-demand business offers the flexibility to create and sell without the burdens of traditional retail models. Success hinges on your ability to understand your audience, offer desirable products and maintain a dynamic approach to business management. It’s a field where creativity meets commerce and attentive stewardship can lead to a rewarding venture. It’s about being agile in business strategies, anticipating trends and forging connections with customers. Those who navigate these waters well can look forward to the potential for growth and the satisfaction of customers wearing and sharing their brand with pride.
Starting a print-on-demand business typically requires a minimal upfront investment, mainly for website setup and design software. Many POD platforms allow you to create and list products for free, charging only when a product is sold.
No, you don’t need to be a designer. You can use design tools with pre-made templates or hire freelance designers to create your product designs.
Returns and exchange policies vary by provider but, generally, the POD company handles issues related to manufacturing errors while you’re responsible for customer service.
Print-on-demand can be profitable if you manage to create unique designs, market effectively and keep overhead costs low. Profits depend on your niche, product quality and pricing strategy.
Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.
Looking for a printing press business plan for your new or existing enterprise in Nigeria or anywhere globally?
Download this printing press business plan, which you can download to present to NIRSAL, BOI, BOA, and other investors.
1.0. Company Summary:
InkWonder is a printing press company that provides quality printing and also affordable services to that will not burden its customer’s pockets. Situated in a strategic location around Ejigbo, Isolo LGA, Lagos Nigeria, the business will satisfy the print needs of companies and startups around the area and the location being close to the metropolis of the city; it makes it easily accessible for whoever seeks it services.
Services we offer;
The business satisfies a public demand for the need of getting ink on paper for many purposes it could be creating awareness, branding, official purposes which include maybe invitation cards, handbills, posters, calendars, notepads, brochures, booklets, and catalogs just to mention a few among others.
Ensuring success in this business will require edge cutting and uniqueness in some areas like graphics design, quality printing machines,s and quality printing paper.
2.0. Goals and Objectives
The goal of this business aside from yielding profits is to make sure it is the go-to print shop for all businesses in the area and also providing fast and reliable services to its customer which will bolster trust and help in garnering more customers. The business hopes to win over its customers by promising to provide the best print services at an affordable price. The objectives set for the business to ensure its steady rise to it being a steady income earning business are;
3.0. Material and Equipment
To get going in this business, here is a list of materials expected to be acquired;
4.0. Competitive Advantage
Our Competitive Advantage
As in other industries, there are others that offer the services we offer but in order to garner trust and rally consumers to our side we have taken into consideration a few points which we will work on so as to ensure uniqueness and make sure our services are sought amongst others;
Above is a part of the printing press business plan template in Nigeria. If you want the complete printing press business plan sample with the full financial plan, calculations, and more, follow the procedures to download it.
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Writing a printing press business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready ...
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If you are wondering how to write one, then here is a printing and photocopy business plan sample to help you write your own. Executive Summary. Thinktank will be a business service provider based in Miami, Florida. Founded by Mrs. Cindy Smith, Thinktank will offer a variety of business services including postal, shipping, faxing, and copying ...
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Free business plan template. A fill-in-the-blank template designed for business owners. Download Now. Sample Plans. ... and a B2B portal for the untapped printing press and graphic art design industries. To accomplish this, the company will combine high-quality workmanship with the lowest costs in the industry. ...
A Sample Digital Printing Shop Business Plan Template. 1. Industry Overview. Operators in the printing industry mainly print on paper, textile products, metal, glass, plastic and other materials, excluding fabric. Printing shops engage in a variety of printing processes which include lithographic, gravure, screen, flexographic, digital and ...
1.0 Executive Summary. Larry B. Newman Printing Company seeks to offer its customers a set of services that effectively manages their image, focusing on quality and customization. LBNPC strives to gain a competitive advantage by further enforcing its brand image and association with top quality products.
Research carried out by IBISWorld shows that the over the past five years, the Digital Printing industry that flex printing is a part of has grown by 3.6 percent to reach revenue of $11 billion in 2019. In the same time - frame, the number of businesses have grown by 5.5 percent and the number of employees by 4.8 percent.
TG PRINTING PRESS BUSINESS PLAN 1. Executive Summary Tigist prenting press is a new print and press firm, formed as a sole an independent business which runs and owned by the university enterprise and development directorate. The prime objective of this business plan is to established well equipped and state-of-the- art printing facilities managed by experienced staff who have ample and ...
400+ sample business plans will guide you through each section of your plan as a business mentor. 1. Executive Summary Printing Press Business Plan | Business Plan 2023 6/50 ... Printing Press Business Plan | Business Plan 2023 15/50. Impressions PrintHouse [Impressions PrintHouse], founded in [Year], carved a niche for themselves by focusing ...
A complete Photocopy and Printing business plan template. This fill-in-the-blanks template includes every section of your business plan, including Executive Summary, Objectives, SWOT Analysis, Marketing Analysis and Strategy, Operations Plan, Financial Projections and more (a similar template is sold elsewhere for $69.95).
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Starting a print-on-demand (POD) business taps into the zeitgeist of entrepreneurship, combining creativity with technology to cater to niche markets. Imagine merging your original designs with an ...
Above is a part of the printing press business plan template in Nigeria. If you want the complete printing press business plan sample with the full financial plan, calculations, and more, follow the procedures to download it. Thereafter, send us your email address through text message to +234 701 754 2853. The text must contain the title of the ...
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