There are only three numbers you have to control to be very successful. They are overhead, profit margin and pieces per hour.
Overhead is lowest when the business is operated out of the home, garage or other available free space. Then you will be able to pay yourself and not have to worry about paying a landlord. The worst mistake is to open a shop in retail space where the public walks in, and you cannot control your time and productivity.
Profit margin is the difference between what you pay for a garment and what you sell it for. The vendors all know each other. So the potential for cost reduction is limited. However, the opportunity for higher prices is unlimited. People do not pay the same prices for the same work. Understanding who pays the most, and how to sell to these people will be critical.
Pieces per hour is a simple count of what was printed per hour. A typical person should print 120 one color shirts per hour. As the number of colors increases, the number of shirts printed per hour drops. There are a lot of factors that determine pieces per hour. Examples are the diameter of the press, tightness of the mesh in the screen, proximity of the conveyor dryer, and many more.
When you multiply profit margin per shirt times pieces per hour you will find one and two color work to be more profitable than three and four color work.
If you want to make money, do not extend credit. All customers, including friends and relatives, pay 50% down with order and balance when you are ready to deliver. Never deliver without full payment. Some large corporations and many schools are terrible about paying their bills. Let one of their employees pay you, because the employee will get reimbursed much quicker than you will be paid. You cannot afford to be the bank for large companies and schools.
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