Printing is the one service that almost every business that exists will need to purchase in some shape or form. They could need business cards, stationery, service forms, flyers, post cards and warranty cards. Every business is a potential prospect and can become a loyal client that orders printing every year or sooner. Also private people may need printing done. The terrific fact about a printing business is there is no end to potential customers that can be acquired by an aggressive marketing campaign.
Since all of these paying customers exist, waiting for a printing expert to call on them and compete for their business, this can be a cash cow business. Getting started in the business can be accomplished in many ways. You can buy an existing business with their client list and an immediate cash flow. You can start a small in the home printing service. Another way to get started is to make a deal with several printing companies that you will sell their products on a broker's agreement. A printing broker can go where the quality and price are and compete with just about any one in the business. They can buy locally or over the Internet at wholesale prices. The beauty of this facet of the printing business is there is little investment needed other than a phone, computer and the knowledge of where to get jobs done.
If you want to own a facility this is very possible in almost any city as there is a turnover in this business and there are usually businesses for sale. You should checkout listings in the local paper, on the Internet and through business brokers. Any one of these can give you a lead to an owner that is looking to sell. Most of the printing businesses that are for sale can be purchased with the help of the owner or with outside financing if the deal is a large dollar situation. A large printing company can have considerable money in equipment and the building they own. They also will have a loyal customer base and an art file that is worth its weight in gold. This is an important asset, as the artwork may not need to be done again on repeat runs.
There are all types of printing companies. There are companies that print on high quality paper. Others may print catalogs or insert flyers for newspapers. Large poster printing is another printing specialty company. Screen-printing is a unique type of printing company as they do decals, bumper stickers, advertising boards, signs for bus, shirts, hats and cups. They can get a printed logo or text on just about any object that will take printing ink. All of these businesses can be very profitable once a clientele is in place. If the buyer has the money or can make a deal with the current owner, buying a going business is worth the investment if they are profitable.
Finding the right printing company for you
If you know the business then you will probably know already which area you would like to stay in. Local newspaper listings and the Internet will give you a quick overview of what is available. A business broker may have more detailed list to study. They should also have some idea of what kind of money is needed for each type of printing company. This source can speed up the looking process by several weeks or more. Hopefully they will have some of the specialty printing businesses in their lists. Some of these specialty companies are extremely profitable as the specialty cuts down the competition to a few providers.
If you need help with the purchase, the broker will know if the owner is willing to be a source of financing or is willing to go along with terms. There are so many ways a knowledgeable broker can help with the purchase. They can help with getting a fair price based on the financials of the company and not pie in the sky. Their ability to be a fair go-between for the buyer and the seller will expedite the sale. They can deliver terms the buyer can live with after the purchase.
The printing business has so many possible avenues that a buyer can pursue, there should be a deal that will suit the buyer. A very special segment of the printing business is the printing of circuit boards for computer companies and special equipment manufacturers. Advertising specialty items need to be printed. Almost every city has a company that does this type of business on a large scale.
Finding the money to complete the sale
Money is the grease that makes the deal happen. This critical element can be a stumbling block or just another problem to work through. If both parties take the attitude that this problem can be resolved, then normally there will be a way to make this happen. If the seller does not need the full balance in cash from the sale, it is possible that they will take back paper for a period of time. If they cannot or will not finance the sale, then the buyer will need to come up with other sources to get the money that is needed.
There are many companies listed on the Net that are in the business of making loans to facilitate a business purchase. Their requirements are varied and will depend on the purchase price, the company profitability, the credit rating of the buyer, the down payment and the length of the loan. If they agree to finance the purchase then the buyer will usually get a lower price for the purchase as the seller is receiving complete cash out.
Your own bank may be interested in making the loan. Friends and relatives are another source of funds. You may be able to get an SBA loan to make the sale. The buyer may have other assets that can be borrowed against to get the necessary funds. In any event the sale will not happen if the total price cannot be covered in some way. The buyer needs to be realistic if the funds are difficult to arrange and realize that this deal may not be possible.
Conclusions
Printing is a necessary service that most businesses need and cannot do without. This means that a person getting into this business has a huge number of possible clients to go after. This also means that there is always the prospect of extended growth for the company. This is a big plus for any new business owner.
The variety of printing businesses also opens many doors for the possible buyer. The many types of businesses that make up the printing industry will let the potential buyer find a niche that is just right for them. There are also franchise operations available and off shoots like screen-printing and specialty printing companies. This gives the buyer a selection to consider and study for the best fit for them, both financially and from an owner's viewpoint. There is also the printing broker aspect that may be the easiest to enter, as the money needed to do it is rather small. This business category is full of many different opportunities.
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Henthorn is president of Spiral Marketers, a marketing firm which includes a number of partnerships that range from cutting-edge software development, business and personal improvement coaching, online e-commerce businesses, and more.
He was formerly was president and principal broker of a resort / commercial real estate brokerage in Honolulu which specialized in representing sellers in transactions up to $50MM.
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