Would you like to start a corporate printing business? Then of course you have to know that there are four main areas of capitalization needed in becoming a corporate printer. With such, you will need to apply for business loans in order to finance this new venture. So what are these areas?
Printing Equipment and Machines
At the very least, a good offset or digital commercial printer would set you back by $14,000 for one unit. It is just a simple operating machine but you could already start a small business with this. You see, those big elaborate units used in the printing of monthly glossies already cost more than a million dollars each.
Rental for Office Space and Production Area
A corporate printing business takes up so much space because of the size of the machines, equipment, the storage area needed, the number of people and the different departments. You cannot lump them all together. You will need an office where you entertain clients, a room for your creative department, the printing area, the finishing area, and then of course, the stock room, which may be last but not the least because you really have a lot of stocks to store. Some landlords in Sweden would require an advance payment and deposit. That is why a big chunk of your capitalization will just go to the deposit.
Preliminary Operating Costs
Printing eats up a lot of capital. While you may be able to impose 50% down payment and 50% cash on delivery system with some clients, you will have to give a credit line to others just to win their accounts. And this is especially true for big companies with big printing jobs. In the first few months, you can not expect your operations to have a rolling capital because it just not is possible. So you have to set aside some money that will get you through in supplies and operations for the next six months.
You have a new business so you have to let people know that you are already open and that you are offering such services. If you keep quiet, people will not know and you will not have clients. So you have to invest in marketing.
Such are the major expenses in starting a commercial printing company. So you need to consolidate what you have and how much you need in order to apply for corporate business loans. Fortunately, there are a lot of very good and reliable financial portals in Sweden that will help you find the bästa företagslån i Sverige with the best deals and they work pretty fast. You will most probably need collateral for that so that you will not have to pay so much interest.