Getting through the first year - entrepreneurship - Imprint Design Services

Black Enterprise, Oct, 2002 by Sonya Kimble-Ellis

making money in printing
typical job: 1,000 gift certificates

work performed                                cost to business

printing                                                $15.00
printing cost for 250 pages in one color:
paper                                                  $ 12.50
ink                                                    $ 37.50

total expenses                                         $ 37.50

time cost at $10 per hour

cutting--15 minutes:                                   $  2.50
design--25 minutes:                                    $  4.25
total time cost:                                       $  6.75

profit


charged salon for entire job                           $150.00
total expenses for project                             $ 44.25

total profit                                           $105.75

RELATED ARTICLE: breaking it down.

MAKE MONEY

"Always consider your profit margin" says Ebele. "I've never bought more supplies in a month than I needed. The business never had a loss. I always reinvested the money for supplies and took profits afterward."

KEEP TRACK OF YOUR TIME

"I try not to let running the business conflict with other aspects of my life, such as school," Ebele says. "The same amount of energy that goes into school is the same amount that goes into the business and extracurricular activities."

DEVISE A SYSTEM FOR COLLECTING CASH

"I would tell people they could pay me later, and I'd end up having to call them back about it. That was a constant stress. Make sure you structure your payment schedule," she advises.

AVOID LOSING CASH FLOW

Not everyone is as fortunate as Ebele, who didn't need start-up cash. Peter H. Seckel, a counselor at SCORE (Service Corps of Retired Executives) and author of the book Starting and Managing Your Own Business in New Jersey (SCORE, $21.50), suggests that you start saving money early. "Most customers don't pay until the job is finished, which means you need working capital," he says.

DON'T BE AFRAID TO ASK FOR ADVICE

"Even if you only have a vague idea of what you want to do year's from now, feel flee to discuss this early," says Seckel. You can get free, confidential advice from SCORE, which is sponsored by the Small Business Administration. Visit www.sba.org for more information.