Starting Small Business

Hi Everyone,
I am interested in starting my own business doing invitations and stationary. I have a BFA in Visual Arts, and have been a Digital Artist for a video game company for the past 3 years. I am most familiar with the Adobe CS3 programs for all of my 2D design. I am also expecting my first child in October and am very interested in working from home after he arrives =D I was just wondering if anyone here would have some advice on where to get the best paper, cardstock, etc. I'm guessing it's best to buy these things in bulk. I am also looking into some grants and business incentives within my state to help with the startup. There is a lot to offer, especially for women here. And then the big question- how and where to get started with the printing? I am not very fond of the idea of using my home printers. Any advice would be greatly appreciated. Thanks so much =D

Heather,

In addition to any other responses you may receive here, also note that there have been a few topics in this forum along these lines you should search out for useful information.

First and foremost, work with your accountant to put together a realistic business plan. Check with your municipality/county/state about establishing your business, collecting sales tax, paying any business taxes and license fees, etc. Establish yourself as an LLC or other protected entity, which can also offer some tax breaks for you as well as some protection against lawsuits.

Check your area for similar businesses and understand realistically what your competition is. Take a survey by talking frankly with folks in the same business -- ask direct questions. (The worst that can happen is they won't talk with you.) And afterwards, be honest in your assessment. Do NOT kid yourself. You want to make sure you will have a viable business before you invest the time, energy and money.

Check with your local chamber of commerce or other groups made up of merchants in your area and attend their meetings. Join any association whose membership is in your business and participate actively.

As for paper, check out "paper merchants" in your area and set your self up with an account so you can get paper wholesale. Look for top brands, such as Strathmore, Crane's, and similar. Stock with a rag content (25% or greater cotton fiber) in either a laid or wove finish in white, off-whites, creams, ivories, or pastels is a good start. Text stocks with deckle edges are also a high-end look.

Check what kind of computer hardware, peripherals and software you will need to conduct business.

I wish you good luck.

Neil

It would also be helpful if you said where you are (State and Country). The forums have people from all over the world and the tax rules and services are different everywhere.

Hey guys,
Thanks so much for the information. I am currently living in Louisiana. I was thinking of starting this out part time and keeping my other job part time until business could pick up, or until I would have a large enough selection to shop around. I am also thinking of starting out with an Etsy store, does anyone have any experience with that? I know of someone who is doing the same line of work and her stuff has really taken off there. For those of you who are not familiar, it is like an ebay store but for handmade items.

Neil, you mentioned going to a paper merchant for the paper. Could I also buy different colored envelopes there? I am having trouble finding a place like this in Baton Rouge, but I will keep searching.

Heather,

Part time or full time, you should still go through the steps I recommended so you go into this business with your eyes open. You'll have a better handle on the viability of the business, the pitfalls, and what you need to do from a legal and tax standpoint.

I have no idea what an Etsy store is.

As for paper merchants, these are authorized mill agents (distributors) for the various brands, and as wholesale stockhouses, can work with you to get you what you need, when you need it. They can also make recommendations for your needs, and provide samples and swatch books. They carry full lines, grades, weights and colors for the papermills they represent. As paper is heavy, and shipping cost is based upon weight, bulk, and distance, ideally you want to deal with merchants in your area.

If you find a particular stock you like, you can contact the papermill and ask who are the agents in your area. Many are designer-friendly and can also supply samples and swatchbooks at no charge.

Note that you will have minimum shipping orders when ordering wholesale -- but it is a lot cheaper than buying from a storefront retailer.

Neil

I'm guessing it's best to buy these things in bulk.




Be careful about buying in too big a quantity. Bulk to you means (I expect) 1000s of sheets. To a paper vendor it means millions. Don't get taken by purchasing more paper than you will safely use in a year. Paper, especially in opened packages, will go bad over time.

I'm with Don ... purchasing lots of paper and stock can be an utter waste. I do not recommend buying in bulk any more. I don't purchase stock until a customer orders the stock from a paper sample. If it's cards and invitations, you can purchase them in small quantities by buying wholesale from a scrapbook or paper store. In Australia we use A4 size for standard size paper and card and these can be purchased in stationery stores in packs of 10-25 sheets with matching envelopes available. No matter what stock you have, the customer will always want something different, or the stock they choose isn't being made any more. It's false economy to try to stock everything unless you are going to be a walk-in store yourself.

From the legal standpoint, we have to register and have an ABN (Australian Business Number) in order to operate as a sole trader business. Plus there are tax and GST implications when turning over a certain amount.

Also, make sure the paper/card stocks and envelopes are suitable for your printer. Many of the stocks do not work in all printers and that will become a waste of money too. Envelopes are the most tricky to print whether laser or otherwise.

I have a very high end laser printer (value $12K) and it even has trouble with certain types of envelopes. The cost of consumables must also be taken into account.

Karen,

you can purchase them in small quantities by buying wholesale from a scrapbook
or paper store.




But be aware that you are still placing another middleman in the chain and paying another markup. I agree that purchasing more paper than can be used in, say a month or so could be hazardous if you cannot store it in a temperature and humidity controlled environment, or you may be throwing out more than you've saved from buying very large quantities. Again, I recommend (here in the U.S.) establishing a business relationship with a paper merchant.

Also note that if you use a particular printer regularly, you might be able to get the printer to hold your stock on the plant floor for you.

Neil