Estimating your Start Up Costs

PURCHASING YOUR SIGN MAKING EQUIPMENT

Before you begin the process of raising capital to startup your new venture you need to estimate how much money you are going to need. To help you do this, I have compiled a list of the basic equipment that you will need to make signs and operate your shop along with the approximate price. The list below would be the basics for a home sign shop.

1. Vinyl Cutter & Software – $2,500 – $5,000
2. Shop Computer – $500 – $1,000 (check sign cutting software for speed requirements)
3. Transfer tape applicator – $100 – $300
4. Furniture and Fixtures – $500
5. Initial Vinyl & Substrate Inventory – $500
6. Other Miscellaneous (tools, etc.. – $500
7. Marketing money. $200

Minimum estimated amount of initial capital needed – $5,000 *

If you are going to have a free standing retail location you will need to add the following expenses to your list. The amounts are just estimates.

1. Deposit for your location. $500
2. Three months lease payments (minimum) $2000
3. Reserve for utilities. $600
4. Reserve for insurance (or prepay a year) $800
5. Miscellaneous materials for signs, extra furniture and fixtures, etc.. $500

Rough estimate for a free standing shop – $10,000

To be on the conservative side, you should also add to this list a reserve for you to live off of while you are getting things going. If you have a second source of income this may not be necessary. The main goal is to forecast everything and allocate for it in advance.