3 Vital Questions About Operating a Signage Printing Business

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Signage is not dead. Despite the growing popularity of digital marketing, many businesses are still brick and mortar. In fact, some of the profitable ones use multiple sales channels. One of the reasons is the fact that thousands of Americans still don’t use or are not active on the Internet.

All these then make signage printing a lucrative business opportunity. The question is, how does one start, and how much does it cost?

1. What’s the Cost of Operating Signage Printing?

Many factors affect overall business spending, but usually, it depends on whether the company is a franchise or not. A printing franchise cost can reach over $150,000, but the initial investment may be only a third of that.

The franchise fee can also significantly vary. Some may ask at least $100,000, but others may request around half of that.

Franchising may sound capital intensive, but it can still be much cheaper than starting a business from scratch. Entrepreneurs can already rely on a tried-and-tested, sound business model. They can also receive many types of support from the franchisor.

Besides capital, they also need to consider taxes. Some states won’t ask for personal income tax, while others have a more favorable corporate income tax. A lot will ask for a franchise tax.

There are many ways to meet the cost of a sign business. These include:

  • Bootstrapping – Businesses use their savings or other sources of income as capital. They may also ask for investments or loans from friends and family. These individuals may extend financial help without interest.
  • Loans – Signage printing companies can also apply for business loans from banks and credit unions. They may even approach their state’s Small Business Administration (SBA) offices to know some options. For those who get a franchise, they may ask the franchisor if it extends financing.


2. What Business Permits or Licenses Do Signage Printing Businesses Need?

The business permits and licenses needed are no different from most types of industries. For one, they need to have secure an IRS number for the business, although the rules can vary depending on the company structure (e.g., proprietorship, corporation, or partnership).

These companies are usually private, so they may not have to file an application or report their income to the Securities and Exchange Commission (SEC).

Licenses and permits may also be federal or state. Usually, digital signage businesses deal with states, which have control over a broader range of commercial activities.

3. Can One Open a Signage Business Franchise Outside the United States?

The answer is yes, it’s possible, but the business owner needs to consider many factors they do so. These include culture, laws, and target market penetration. Of these three, it’s the legality that one should focus on.

For example, many countries may allow foreign businesses to operate, but there may be restrictions. They may need to be only a part-owner, which means American entrepreneurs may have to search for a local business partner.

Franchisors may help guide the entrepreneurs on the legality of opening such a business overseas. They may even assist business owners in setting up one, from looking for commercial rent to marketing.

Opening a signage business remains a profitable endeavor. Entrepreneurs can also look into franchising to maximize the value of a brand. Regardless of the path a business owner likes to take, operating one still demands careful consideration and strategy.

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