Help me become a small business owner
December 26, 2006 8:36 AM Subscribe
I would like to explore the idea of opening a copy center. Where do I start?
There is definitely a strong need in the area I live (St. Thomas US Virgin Islands) for a one stop shop for copies and printing. Think Kinko's but independent.
Currently people go to Office Max, but they have limited service and their machine is often broken.
I would like to start small, maybe a drop off service where I do the copying and would later expand to a service more similar to the states. A front self-service area and a more developed behind the counter service. I would want to be able to offer the basics, copies, binding, lamenting, oversize printing, etc. and expand from there.
Where do I begin and how do I go about putting together a business plan?
There are franchises out there (specifically Minute Man) but I'd rather be out on my own (for start up cost reasons and to be able to play by my own drum)
I see a need, and I feel I can meet it. But I need some direction.
Thanks Hive Mind.
There is definitely a strong need in the area I live (St. Thomas US Virgin Islands) for a one stop shop for copies and printing. Think Kinko's but independent.
Currently people go to Office Max, but they have limited service and their machine is often broken.
I would like to start small, maybe a drop off service where I do the copying and would later expand to a service more similar to the states. A front self-service area and a more developed behind the counter service. I would want to be able to offer the basics, copies, binding, lamenting, oversize printing, etc. and expand from there.
Where do I begin and how do I go about putting together a business plan?
There are franchises out there (specifically Minute Man) but I'd rather be out on my own (for start up cost reasons and to be able to play by my own drum)
I see a need, and I feel I can meet it. But I need some direction.
Thanks Hive Mind.
One of the first things your going to need to do is to work out just how much finance you have, and how much you can get if you need to.
Once you've got this you'll then need to scout around to find a suitable property, and see how much they are. Then you have a rough estimate of how much money you'll have left for the venture, and can do some simple sums to work out how viable the business is.
Don't forget that you're going to have quite high expenses every month with printer cartridges / drums / maintenance of the equipment, or are going to have to get pretty clued up yourself about everything.
You'll also need to make sure that there is enough demand as you think there is. Compose a simple questionnaire and stop maybe 20 - 50 random people that you don't know to find demand for it. This of course is very basic, and won't give you a totally accurate number, but it will help you work out if its just a need you see or something others have.
Hope that helps. You probably know most of that, and I'm just repeating what others have said.
posted by philsi at 9:06 AM on December 26, 2006
Once you've got this you'll then need to scout around to find a suitable property, and see how much they are. Then you have a rough estimate of how much money you'll have left for the venture, and can do some simple sums to work out how viable the business is.
Don't forget that you're going to have quite high expenses every month with printer cartridges / drums / maintenance of the equipment, or are going to have to get pretty clued up yourself about everything.
You'll also need to make sure that there is enough demand as you think there is. Compose a simple questionnaire and stop maybe 20 - 50 random people that you don't know to find demand for it. This of course is very basic, and won't give you a totally accurate number, but it will help you work out if its just a need you see or something others have.
Hope that helps. You probably know most of that, and I'm just repeating what others have said.
posted by philsi at 9:06 AM on December 26, 2006
Response by poster: I think the issue with the Office max copier is less service contract and more poor management.
I also think that a large bulk of the business in the area would be b2b as oppose to the general public (though I think there is a general need there too).
Also I would rather approach the business with the mindset of estimating the minium reasonable start up as oppose to "how can I make this work with what I have". I have a few warm leads on capitol and would rather approach them with "this is what I can do with X" as oppose to how much are you willing to invest.
Anyway - all of this is very much the first few baby steps. So any and all opinions and info are welcome.
posted by crewshell at 9:22 AM on December 26, 2006
I also think that a large bulk of the business in the area would be b2b as oppose to the general public (though I think there is a general need there too).
Also I would rather approach the business with the mindset of estimating the minium reasonable start up as oppose to "how can I make this work with what I have". I have a few warm leads on capitol and would rather approach them with "this is what I can do with X" as oppose to how much are you willing to invest.
Anyway - all of this is very much the first few baby steps. So any and all opinions and info are welcome.
posted by crewshell at 9:22 AM on December 26, 2006
Get a premium copier if you're worried about service -- there has to be something where you just refill toner. Perhaps internet forums talk about such a copier?
My aunt tried the copy business though and it was a tough run. Really, you have to learn about pricing, where your profits are going to be, advertising, etc.
I could imagine all the hotel and tourism business there might be a source for if they lack business centers. So, you might want to look into that also.
But, yes, the comment about truly assessing need is going to be your best shot. I am sure you'd do better than OfficeMax and if they are busy and they can't meet that demand, you'd be set to meet it.
About 70% of small businesses fail or something like that, but to the victors go the spoils. It would be nice to own a sucessful business in paradise so good luck!
posted by skepticallypleased at 9:50 AM on December 26, 2006
My aunt tried the copy business though and it was a tough run. Really, you have to learn about pricing, where your profits are going to be, advertising, etc.
I could imagine all the hotel and tourism business there might be a source for if they lack business centers. So, you might want to look into that also.
But, yes, the comment about truly assessing need is going to be your best shot. I am sure you'd do better than OfficeMax and if they are busy and they can't meet that demand, you'd be set to meet it.
About 70% of small businesses fail or something like that, but to the victors go the spoils. It would be nice to own a sucessful business in paradise so good luck!
posted by skepticallypleased at 9:50 AM on December 26, 2006
read the book 'copy this!' by the kinko's founder.
posted by Izzmeister at 10:05 AM on December 26, 2006
posted by Izzmeister at 10:05 AM on December 26, 2006
Go Xerox, their customer servicable modules are much nicer for making sure your machine is easily serviced. I've worked at both and OfficeMax and a Kinkos, and I can tell you.. being able to replace your own fuser is easier then waiting for the Tech to come in and do it for you. Especially if there isn't a tech available for your area.
Color prints are really where the money is, you get a DocuColor 12 (I think that's their latest and greatest these days), Xerox charges you something on the order of $.14 per click, depending on how much you're projected to sell. You then turn around and sell those color prints for upwards to $.99 per page... learn to print 11x17 2-up prints and cut them in half for large orders (you still only pay the $.14 but you make $1.98 for the two prints... cheaty huh?). Black and white prints and binding aren't going to make you as much, but you'll still make money off them. As you can tell, you're going to be making lots of cash on certain services, while others are really only to get them in the door.
If you're not already good at DTP, get good, or do like a lot of copy centers do, and get a DTP contractor out of India, pay something like $300 a month, and then turn around and charge that out at $60/hr.
Just off the top of my head, you'll probably need a laminator, ream paper cutter, color copier, b/w copier, fax machine, computer with adobe software for illustrator and photoshop, microsoft office for publisher and powerpoint and if you've got money left over a mac (or pc) with the same stuff, and lots of paper.
Again, francising is going to save you A LOT of money at the start, since they can levee discounts from Xerox and others to get you cheaper leases and click rates. But in the long run, if you can self-finance, you'll make more.
Any questions, email, profile, etc.
posted by gregschoen at 10:11 AM on December 26, 2006
Color prints are really where the money is, you get a DocuColor 12 (I think that's their latest and greatest these days), Xerox charges you something on the order of $.14 per click, depending on how much you're projected to sell. You then turn around and sell those color prints for upwards to $.99 per page... learn to print 11x17 2-up prints and cut them in half for large orders (you still only pay the $.14 but you make $1.98 for the two prints... cheaty huh?). Black and white prints and binding aren't going to make you as much, but you'll still make money off them. As you can tell, you're going to be making lots of cash on certain services, while others are really only to get them in the door.
If you're not already good at DTP, get good, or do like a lot of copy centers do, and get a DTP contractor out of India, pay something like $300 a month, and then turn around and charge that out at $60/hr.
Just off the top of my head, you'll probably need a laminator, ream paper cutter, color copier, b/w copier, fax machine, computer with adobe software for illustrator and photoshop, microsoft office for publisher and powerpoint and if you've got money left over a mac (or pc) with the same stuff, and lots of paper.
Again, francising is going to save you A LOT of money at the start, since they can levee discounts from Xerox and others to get you cheaper leases and click rates. But in the long run, if you can self-finance, you'll make more.
Any questions, email, profile, etc.
posted by gregschoen at 10:11 AM on December 26, 2006
This thread is closed to new comments.
(Also, as a former-copy-shop-employee-who-listened-to-lots-of-gossip-around-the-shop, I'd say you're right to avoid franchises--in my experience, they are very helpful for startups but your costs to them grow as your profits do and eventually they can strangle a business.)
posted by bcwinters at 9:03 AM on December 26, 2006