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You might consider targeting a niche market by specializing in a certain aspect of your industry such as weddings.
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Written by: Carolyn Young
Carolyn Young has over 25 years of experience in business in various roles, including bank management, marketing management, and business education.
Published on January 18, 2022
Updated on October 7, 2022
Investment range
$2,250 - $15,600
Revenue potential
$60,000 - $300,000 p.a.
Time to build
0 – 3 months
Profit potential
$40,000 - $210,000 p.a.
Industry trend
Declining
Commitment
Flexible
In our digital age, it’s hard to believe that paper stationery is still in use – but it is! The stationery industry is worth nearly $6 billion in the United States alone. If you like to be creative and have an eye for design, your own stationery business could capture a slice of that market and put some cash in your pocket. You don’t have to have equipment to print it at home – you can outsource the printing while you just create your designs digitally.
It won’t be as easy, however, to design a stationery business. You’ll need to prepare yourself by doing a little homework first. Fortunately, this step-by-step guide has everything you need to know about the nitty-gritty details of the stationery business.
Starting a stationery business has pros and cons that you should consider before deciding if it’s right for you.
The stationery industry in the US is worth nearly $6 billion but has been in a steady decline for the last decade. However, a multi-billion-dollar industry still offers tremendous potential.
Trends in the stationery industry include:
Some challenges also exist in the stationery industry which include:
Startup costs for a stationery business range from about $2,200 to $15,000. The high-end includes a computer and equipment to set up your own printing operation. This kind of investment will save you the cost of outsourcing your printing. The low end of the cost range assumes that you already have a computer and will not do your own printing.
You’ll need a handful of items to successfully launch your stationery business if you do your own printing, including:
Start-up Costs | Ballpark Range | Average |
---|---|---|
Setting up a business name and corporation | $150 - $200 | $175 |
Business licenses and permits | $100 - $300 | $200 |
Insurance | $100 - $300 | $200 |
Business cards and brochures | $200 - $300 | $250 |
Website setup | $1,000 - $3,000 | $2,000 |
Stationery Design Software | $500 - $1,000 | $750 |
Computer | $0 - $2,000 | $1,000 |
Miscellaneous embellishment supplies | $200 - $500 | $350 |
Printer and paper to print yourself | $0 - $3,000 | $1,500 |
Letter Press | $0 - $5,000 | $2,500 |
Total | $2,250 - $15,600 | $8,925 |
Stationery prices run from $200 to $1,000 for a stationery package, with an average of $600. If you outsource your printing, your profit margin should be about 70%.
In your first year or two, you could work from home and sell 100 packages in a year, bringing in $60,000 in annual revenue. This would mean over $40,000 in profit, assuming that 70% margin. As your brand gains recognition, sales could climb to 500 packages a year. With expected annual revenue of $300,000, you would make about $210,000.
There are a few barriers to entry for a stationery business. Your biggest challenges will be:
Now that you know what’s involved in starting a stationery business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Research stationery businesses in your area to examine their products, price points, customer reviews, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a sympathy note stationery business.
You might consider targeting a niche market by specializing in a certain aspect of your industry such as weddings.
This could jumpstart your word-of-mouth marketing and attract clients right away.
You’ll need to design stationery packages to offer, such as a save the date, invitation, and thank you note package. You can also design some embellishment add-ons to increase your revenue.
Prices for stationery packages range from $200 to $1,000 or more. Your ongoing costs will be printing and miscellaneous embellishment materials. You should aim for a profit margin of about 70%.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the price you use at launch should be subject to change if warranted by the market.
Your target market will depend on what you decide to specialize in. If you specialize in weddings, your target market will be people in the younger range, as well as their parents. Overall, your market is likely to be primarily women. You can probably find your target market on sites like Instagram and Facebook.
It’s highly likely that you will always run your business from home, but if you ever decide that you need an office you can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
Here are some ideas for brainstorming your business name:
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:
If you’ve never created a business plan, it can be an intimidating task. You might consider finding and hiring a business plan specialist at Fiverr to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to stationery businesses.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your stationery business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose an LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using ZenBusiness’s online LLC formation service. They will check that your business name is available before filing, submit your Articles of Organization and be on hand to answer any questions you might have.
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Your best bet is to finance the business with personal funds to stay out of debt. Your next best alternative is probably friends and family financing.
Starting a stationery business requires obtaining a number of licenses and permits from local, state, and federal governments.
Federal regulations, licenses, and permits associated with starting your business include doing business as, health license and permit from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level licenses and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your stationery business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You can use industry-specific software, such as CSDT, GoFrugal, or Lasting, to manage your inventory, billing, printing workflow, and purchases.
Some of your business will come from the casual online visitors, but still, you should invest in digital marketing! Getting the word out is especially important for new businesses, as it’ll boost customer and brand awareness.
Once your website is up and running, link it to your social media accounts and vice versa. Social media is a great tool for promoting your business because you can create engaging posts that advertise your products:
Take advantage of your website, social media presence and real-life activities to increase awareness of your offerings and build your brand. Some suggestions include:
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism. They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your stationery business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your stationery business could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a stationery business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in stationery for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in stationery. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
It’s unlikely that you will need employees for your business. However, if you ever need to hire an assistant, free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com.
You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
A stationery business is a great opportunity to make substantial money working from home. You just need a computer, some software, and an eye for design. Even though the industry is declining, it’s still worth $6 billion, and you can still take advantage of that market and get your share.
You’ll also have some fun letting your creative juices flow! You’ve gotten off to an auspicious beginning by loading up on information, so go start designing your way to success!
You can start a stationery business for a little over $2,000 if you already have a computer. You can outsource your printing so that you don’t have to buy equipment. If you want to set up your own printing operation, it could cost about $15,000.
Since you can run a stationery business from home, you’ll have high-profit margins, about 70%. Stationery package prices range from $200 to $1,000, so even if you sell 1 package a week, you can put some money in your pocket.
You may need various business licenses and permits at the state and local levels. Check with your local governments for requirements or visit MyCorporation’s Business License Compliance page.
Yes, they do! While it’s true that the industry has been in decline it still brings in $6 billion in the U.S. alone, so opportunities still exist. Many people clearly still prefer paper invitations and notes over less personal digital invitations.
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