When starting a new business, you should always make sure there is an increasing demand for the products or services you intend to offer. Without a good market, you won’t be able to survive. Moreover, if the market isn’t on an ascendant path, you risk to be good in the beginning, only to fail a few years later, when your products are going to become obsolete.
However, if you think about entering the industry of label printing, you have better chances to enjoy a healthy and steady growth of your business. Everybody needs labels, so someone has to print them. As long as there will be products on the shelves of the stores, they are going to need labels, so that people know what they buy before they open the box. You can identify opportunities on your local market, and then go ahead and purchase the needed equipment.
It’s wiser to approach some good potential clients before setting up your business, to make sure you are going to have some sales right off the bat. If you are smart, you can try to identify those companies that are involved in the mass production, as they are going to need a constant supply of labels for as long as their sales volume is going to be constant. Once you find these three first customers, ask them about their weekly or daily printing needs, so that you can estimate what type of machines you have to purchase. It’s one thing to need 4,000 labels per day and a totally different one to need 400,000.
“Before entering into label printing, you also need to estimate the potential of your local market, the market share of the main players and the slice of the pie you can hope to get within the first three or five years.” Andrea Wilson of Sticker Printing Vancouver stresses. “All these details are critical, as they can make it or break it for your business.”
Besides, you should also perform a SWOT analysis as it is an excellent tool for predicting success or failure. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and it can help you assess the market you want to enter and the assets that make you superior to your competitors. At the same time, this tool enables you to determine your weaknesses, so that you can strive to increase the quality of your services.
Although the entry barrier isn’t too high, it isn’t low either. You can start with one single printer and target companies that need less than 5,000 labels per day, and work your way up from there. This kind of equipment should be fairly inexpensive, especially if you try to find refurbished printers or special discounts and promotions. There is also the alternative of taking a business loan so that you can buy everything you need from the very beginning. Nonetheless, the best situation is the one n which you’ve saved enough money to start this business on your own, without needing financial support.