Screen Printing Business Plan Template
If you want to start a Screen Printing business or expand your current Screen Printing business, you need a business plan.
The following Screen Printing Company business plan template gives you the key elements to include in a winning Screen Printing business plan.
Screen Printing Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a screen printing business that specializes in custom apparel printing for companies, schools, organizations, events and small businesses. It also creates customized prints on a variety of substrates including paper, paperboard, plastic, glass, and metal.
Excellent customer service coupled with high-quality products, [Company Name] aims to be the top provider of screen printing services within the [location] area. [Company Name]’s staff are highly-trained and our equipment is top of the line and properly maintained to handle any client requests.
Products Served
[Company name] will provide the following services to its clients:
- Personalized designs
- Stationary and labels
- Apparel
- Labels and packaging
Customer Focus
[Company Name] will primarily serve the residents who live within a 10-mile radius of our business and workers within a one mile radius. The demographics of these customers are as follows:
- 63,524 residents
- 1,200 workers (who do not live the neighborhood)
- Average income of $59,800
- 65% married
- 51% in Mgt./Professional occupations
- Median age: 35 years
Management Team
[Company Name] is managed by [Founder’s name] who graduated from [University] where he majored in Business Management. He has been in the screen printing business for more than 10 years. His education and experience gave him an in-depth knowledge of the ins and outs of opening a screen printing business before he started [Company name].
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There are currently no affordable screen printing services in [location]. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when launched.
- Our location is in a high-volume traffic area and will thus be highly convenient to a significant number of passersby each day.
- The management team has a track record of success in the screen printing business.
- The screen printing business has proven to be a successful business in the United States.
Financial Highlights
[Company Name] is seeking a total funding of $190,000 to launch. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Store design/build, Equipment: $80,000
- Working capital: $110,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $1,080,000 | $2,472,768 | $2,830,825 | $3,240,728 | $3,709,986 |
| Total Expenses | $962,000 | $1,539,107 | $1,719,742 | $1,901,321 | $2,112,641 |
| EBITDA | $118,000 | $933,661 | $1,111,082 | $1,339,407 | $1,597,344 |
| Depreciation | $25,600 | $25,600 | $25,600 | $25,600 | $25,600 |
| EBIT | $92,400 | $908,061 | $1,085,482 | $1,313,807 | $1,571,744 |
| Interest | $29,946 | $26,202 | $22,459 | $18,716 | $14,973 |
| Pre Tax Income | $62,455 | $881,858 | $1,063,023 | $1,295,091 | $1,556,772 |
| Income Tax Expense | $21,859 | $308,650 | $372,058 | $453,282 | $544,870 |
| Net Income | $40,595 | $573,208 | $690,965 | $841,809 | $1,011,902 |
| Number of locations | 1 | 1 | 1 | 1 | 1 |
| Average customers/day | 75 | 100 | 125 | 150 | 175 |
II. Company Overview
Who is [Company Name]?
Located in [location], [Company Name] is a screen printing business that creates customized prints on a variety of substrates including fabric, paper, paperboard, plastic, glass, and metal. It specializes in custom apparel printing for companies, schools, organizations, events and small businesses.
Excellent customer service coupled with high-quality products, [Company Name] aims to be the top provider of screen printing services within the [location] area. [Company Name]’s staff are highly-trained and our equipment is top of the line and properly maintained to handle any client requests.
[Company Name]’s History
[Company Name] was founded by [Founder’s Name] in [Year]. [Founder’s Name] had been working at a custom clothing company for over 10 years when he realized that there is an increasing market for customized t-shirt printing. He has also previously worked part-time for a local printing business while studying and he used that background to study the feasibility of starting a screen printing business in the [location] area.
[Founder] graduated from [University Name] with a degree in Business Management. His education and past business experiences gave him the confidence to launch [Company Name].
Since incorporation, the Company has achieved the following milestones:
- Found location and signed the letter of Intent to lease it
- Developed the company’s name, logo and website
- Determined equipment and fixture requirements
- Begun recruiting key employees with previous screen printing business experience
[Company Name]’s Products/Services
The company will provide the following services:
- Personalized designs
- Stationary and labels
- Apparel
- Labels and packaging
III. Industry Analysis
The Screen Printing industry is expected to grow steadily over the next five years. Increased stability in the overall economy will likely boost consumer and business spending on the industry’s highly discretionary services. The industry will also benefit from comparatively little substitute competition in contrast with the broader Printing industry.
Key industry drivers include:
-Per capita disposable income-When disposable income increases, consumers are more likely to purchase screen printing services. When disposable income decreases, consumers instead become more likely to put off discretionary purchases, such as screen printing services.
-Corporate profit- Businesses are more likely to order custom apparel and other screen-printed goods when profit is growing. Conversely, businesses are more likely to cut nonessential spending, such as branded merchandise purchases, when profit is shrinking.
-Total advertising expenditure- Advertisers are a major market for the industry. Marketing products made by the industry include branded apparel, stickers and posters. When advertising expenditure increases, so does demand for the industry.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the schools, businesses, companies, and residents of [company location] and the immediate surrounding areas. The area we serve is densely populated and also has a number of schools and businesses that will definitely need our services for events and conferences. Larger businesses will be able to use our services for their packaging, branding, uniforms and signages. We also accept one-off orders from local residents for their customized gifts or personal items.
The precise demographics of the town in which our retail location resides is as follows:
| Glendale | Highland | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following customer segments:
- Local Businesses: Our location is surrounded by small to large-sized businesses. These businesses often need customized printing for their branding.
- Schools: There are a number of public and private schools in the area and we can help them with T-shirt printing, as well as any school logo item.
- Local Residents: Our company customizes almost anything, from apparel to stationary to signage. We offer one-time personalization services that will appeal to local residents looking for unique, customized gifts.
V. Competitive Analysis
Direct & Indirect Competitors
Textile Printers
Founded in 1972, Textile Printers provides screen printing and promotional products for individuals, businesses, schools, and non-profits. The company takes the time to properly prepare designs, but typically fulfills orders in seven to ten working days. Pricing is available by private consultation only.
Custom Screen Printing
Established in 1999, Custom Screen Printing creates screen printed products for customers at over 30 locations across the U.S. It prides itself on quick turnaround and affordability, and requires no minimum order. Pricing for Reflective Edge’s services are available by private consultation only. Product categories include: Apparel, Signs, Decals, Magnetics and Banners.
Custom Ink
Custom Ink is a screen printing business specializing in custom t-shirt creations. In addition to screen printing, Impress Ink can also provide embroidery, personalization, and custom labels and branding services. Screen printing may include glow in the dark printing, puff printing, discharge ink, and metallic ink. For custom t-shirt design services, the company has an online ‘design studio’ feature where each customer can create their screen print designs and then send them to the company for printing or a quote. Custom Ink also has a graphic design team in house for clients requiring professional design work. In addition to screen printing on t-shirts, the company can also provide printing and embroidery services on polo’s, tank tops, hoodies, bags, hats, and more.
Competitive Pricing
Competitor pricing is highly customized and depends on the product type, order size and product specification details.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location is near the center of town, giving us access to businesses, schools and nearby residences. We also offer adequate parking making it easy for customers to patronize us.
- High quality printing at an affordable price: The screen printing services offered by [Company Name] are similar in quality to its most premium positioned competitor. [Company Name] will offer these services at a much more affordable price without compromising the quality of our outputs.
- Management: Our management team has years of business and marketing experience that allow us to market to and serve customers in a much more sophisticated manner than our competitors.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Convenient location
- High quality products
- Personalized items at an affordable price
- Customer-focused service
Promotions Strategy
[Company Name] expects its target market to be residents and businesses in [location]. The [Company’s] promotions strategy to reach these individuals includes:
Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, sports programs, and similar channels will be a major promotion effort.
Community Events/Organizations
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.
Commuter Advertising
We will drive attention toward [Company name] by hiring workers to hold signs alongside [route or highway]. Advertising on heavily traveled commute routes are an opportunity to alert large numbers of working individuals with disposable income of our opening.
Customer Loyalty Programs
[Company name] will create a customer loyalty program to keep its best clients coming back again and again. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other promotions for our services.
VII. Operations Plan
Functional Roles
[Company name] will render its printing services on a per order basis, but will remain open daily for walk-in customers and phone orders. In order to execute on [Company Name]’s business model, the Company needs to perform several functions. The majority of employees will be involved in the creative process and production.
Service Functions
-
- Layout and design
- Sales Manager
- Customer service
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Administrative Functions
-
-
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Hiring and training staff
-
Milestones
[Company name]’s long term goal is to become a well-known screen printing shop in [location]. We seek to be the standard by which other providers are judged.
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Launch [Company Name] |
| [Date 5] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is managed by [Founder’s name] who has been in the clothing manufacturing and screen printing business for more than 10 years. He acquired an in-depth knowledge of the ins and outs of opening a screen printing business before he started [Company name].
[Founder] graduated from [University] where he majored in Business Management.
Hiring Plan
[Founder] will serve as [Company name]’s manager. In order to launch the business, we need to hire the following personnel:
-
-
- Digital Designer (1)
- Store manager (1)
- Production Staff: Printing (3)
- Administrative Assistant
-
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from its screen printing services. As with most services, the major cost for the company will be labor expenses, supply cost, and rent. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is seeking a total funding of $190,000 to launch. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.
Specifically, these funds will be used as follows:
-
-
- Store design/build, Equipment: $80,000
- Working capital: $110,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
-
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | |
|---|---|
| FY 1 | 75 |
| FY 2 | 100 |
| FY 3 | 125 |
| FY 4 | 150 |
| FY 5 | 175 |
| Annual Lease ( per location) | $50,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
