Where to Put Vending Machines: 27 Best Locations
March 2, 2023
If you’re looking to get into the vending machine business, you’ve come to the right spot. We analyzed existing resources and talked to the owner of Hill Vending to find out the best vending machine locations. Get ready to find out where to put vending machines!
Adam Hill bought his first vending machine route for $120K in 2014 and grew his vending machine business to $600K annually. He’s even started his own machine vending training course. In our interview, he explained there are four keys to vending machine business success:
- Location
- Machines
- Service
- Pricing
Adam said:
If you’re in a slow location, it doesn’t matter how good your machines, pricing, and service are. You won’t make any money. You have to have all four keys to be successful.
Click any of the above text to jump to that section of the article. Adam Hill told us: He went on to explain there are two main ways to choose a vending machine location: Check out our interview about the vending machine industry below: In addition to the two ways that Adam mentioned, we’ll also discuss buying a vending machine franchise. Keep reading to learn how to buy an existing vending machine route. Adam suggests buying an existing vending machine business from a business owner because: As you review a potential route for purchase, you’ll want to ask lots of questions about the following: Adam discusses all that and more in our Vending Machine Class. Sign up for early access. Adam explained: Next, we’ll discuss cold-calling businesses. Adam also discussed going to businesses and negotiating to place vending machines on their properties. He explained that this can be difficult because existing locations frequently have a service contract. He also gave tips on the best person to talk to: He also explained why you shouldn’t approach the general manager or property owner unless you are dealing with a solo entrepreneur. Check out our in-depth walkthrough on the vending machine industry. Next, we’ll discuss vending machine franchises. Vending machine owners can also use the franchise model to start a vending machine business. This vending machine business model is often used by major vending machines companies like Coca-Cola and Pepsi. In addition, other vending companies like Pharmabox use this model. There are two basic models that these franchising opportunities use: Check out our other blogs about vending machines including: Then sign up for our Vending Machine Bootcamp. You’ll want to consider the elements of choosing a location for your vending machines. The best locations for vending machines have the following characteristics: Let’s look at each of these a little more. You can legally put a vending machine anywhere you have an agreement with a property owner. There may be licensing requirements depending on your location, but as long as you follow the laws and have an agreement in place, you can put your vending machines in almost any location. The vending industry covers all types of products. Your ideal location will depend on what you sell in your vending machines. The right location for a snack machine is almost anywhere (except maybe the lines in amusement parks), but maybe you shouldn’t offer energy drinks in the waiting room in medical centers. Adam told us: Check out our blog about different types of vending machines to find the types that most interest you. The number of people passing a vending machine impacts whether you have profitable locations. Some locations have less than 50 people passing the vending machine daily, while airports can achieve up to 76 million travelers per day. A business that is busy 24/7 like a hospital is likely to be a better place for a vending machine than somewhere like an apartment complex pool that closes for half the day. You’ll want to make sure that your route is easy to get to regularly. The further you have to drive, the more business expenses you’ll have. It is harder to sell products if people can’t easily access the vending machines. Providing easy access means: Sometimes there will be a suitable location in areas that are off the beaten path. For instance, shopping malls and casinos often have hallways with a bathroom and drink machines. These machines regularly do well because people buy snacks or sports drinks while waiting for their friends. You probably want to avoid businesses where the property owner frequently changes. You don’t want to enter into a vending machine placement contract, then have to renegotiate with a new owner soon afterward. Next, we’ll discuss some of the best locations for vending machines. We’ve compiled some data on the best places to put a vending machine. We’ll cover: Consider some of the following vending machine location ideas. The top 10 airports have more than 100,000 people passing each day. Your vending machine business is sure to make some great revenue. You’ll need lots of machines and potentially a full staff to keep up with the foot traffic in the best locations. If you can’t secure one of the best locations, there are plenty of other options. A business owner that even secures a slower airport has over 600 people pass their vending locations every day. Placing vending machines at train and bus stations can be highly profitable. Amtrak, the largest U.S train station operator, carries more than 22.9 million riders in 160 communities. That comes out to 400 riders daily per community, but the highest travel rates see more than 34,000 people per day. Meanwhile, Greyhound Lines serves nearly 16 million passengers across 135 markets, or over 325 people per bus station daily. If you can negotiate a deal with the station property owners, they are a good place to put a vending machine. Hospitals and long-term care facilities are also high-volume places for vending operators. According to the Center for Disease Control, the average person goes to the doctor 2.5 times per year, and such facilities house nearly 240,000 people. There are three common areas to include vending machines: A waiting room is a great place to put a vending machine with healthy snacks like protein bars and granola bars. You’ll probably do well with drink machines as well. Provide vending needs for people waiting for their families and make a nice profit doing it. Employees need a place to get an easy snack or drink and a vending machine in the break room can be highly profitable. You’ll get a steady flow of revenue from these 24/7 businesses. Placing a vending machine near the nurses’ desks is a great way to make a huge profit because you can serve patients, visitors, and staff all from one machine. Another good place to put vending machines is in warehouses. Warehouses are commonly used as distribution centers, manufacturing facilities, and industrial parks. These businesses generally employ hundreds or thousands of people and operate 24/7. State laws typically guarantee two 15-minute breaks and a 30-minute break per shift. That means vending machines in the break room do well because employees don’t have time to leave the premises. A vending business can be highly profitable if you place machines in office buildings with 50 or more employees. Employees get hungry and thirsty throughout the day and vending machines provide options for people who forgot to bring something from home. That makes an office space a great location for vending machines. Apartment complexes are great locations for vending machines. Each complex is different, but many have multiple locations for people to pass a machine regularly including: Adam warned us: Keep reading to find out why a car dealership is on the best vending machine location list. Car dealerships make great locations for beverage services because they have lots of employees, plus the average consumer spends nearly three to four hours buying a car and several hours waiting every time they take the car for service. Guests in a hotel or motel will want a quick snack or drink even if they don’t want a full meal. Once you negotiate deals with these properties, you might wonder where to put your vending machine. You can place your vending machine: Given that hotels are 24/7, they can be top-grossing locations. Gyms and fitness centers are full of people working out. Where can you put a vending machine in a gym? Try the following locations to give your machines a competitive edge: Make sure to offer healthy snacks, water, and sports drinks. They don’t expect a full meal because that would weigh them down. Schools, community colleges, and universities are always busy. That makes them a great place for vending machines. Just to give you an idea there are: States often have regulations about the type of quick snack options you can provide on school property. You’ll also need to be ADA compliant. The answer for many colleges is probably no. Many private institutions are seeing large declines in enrollment. Some state-funded schools are doing well, but on average they are facing year-over-year declines (see enrolled students link above). If you can negotiate deals in these locations, you may find greater success because they have growing populations of college enrollment: Make sure to research the enrollment trends and percent of students who are online only. Every school releases information about this. Keep reading for another exception to the decline in foot traffic at colleges. If a college has a dorm, you might want to figure out how to get vending machine locations into it and the rest of the campus. Dorms tend to have lots of people at them 24/7. Don’t forget to integrate your card machine with their meal plans to get even better revenue. A retail store has two primary areas vending machines make sense: The front of the store should be things that people run in to get quickly like personal hygiene products, while the break rooms would be perfect for snack machines and drink machines. A gas station needs a variety of vending machines, but most machines will not be coin operated. They may be from one vendor or multiple vendors. They will typically include: It’s difficult to be all things to all people so if you choose to go with gas stations, start with one type of vending option and go from there. A shopping center is another great place for vending machines. You can place a vending machine: If there’s an amusement park in your area, you can find places to put vending machines like: They’ll be outside, so they’ll have more wear and tear. A sports complex will also have similar needs. These buildings make great locations for vending machines because they host meetings and conventions where people spend most of their days. You can place vending machines that offer: A car wash is a great place for a vending machine because people often want a drink. There are two types of car washes: If a restaurant has popular items that will stay good for a decent amount of time, it might boost business to offer them in vending machines. This is especially so in a location that makes it easy to pick up food on the way home from work. Check out this Pecan Pie Vending Machine outside Berdoll’s Farm: Offer to place a vending machine outside of a health food store and help them sell their products even when they’re closed. Communities that often sponsor athletic events that involve cycling and running might especially benefit from after hours service. Salons are bustling with activity and people will often get hungry or thirsty during a cut or dye job. Provide vending machines for employees or customers to get their snacks or drink on the go. You might even be able to offer alcohol in them. Offering drinks and snacks in a park is another great way to find vending machine locations. If you start a Hey Buddy Franchise, you can offer treats for humans and doggies in the same vending machine. Everyone will be happy when they get a treat with man’s best friend. Laundromats and vending machines go together like peanut butter and jelly. You can offer snack and drink machines, but don’t forget to offer products for laundry care, too. Check out Vend-Rite for vending machines specifically made for laundromats. If you’ve ever wondered how to start a laundromat business, we’ve got a blog about that, too. An RV Park is a great place for a vending machine because people often need drinks, ice, snacks, or personal hygiene items while traveling. If there is an RV Park near you, see if you can provide services. A waiting room is a great place to put a vending machine with healthy snacks like protein bars and granola bars. You’ll probably do well with drink machines as well. Provide vending needs for people waiting for a service to be completed and make a nice profit doing it. Employees need a place to get an easy snack or drink and a vending machine in the break room can be highly profitable. You’ll get a steady flow of revenue from these, especially in 24/7 businesses. Placing a vending machine near the nurses’ desks is a great way to make a huge profit because you can serve customers, visitors, and staff all from one machine. Firefighters commonly live at their stations during their shifts. They need drinks and snacks, so make it easy for them with a vending machine. Now that you know where to put vending machines, let’s look at how to find a vending machine location. There are a ton of ways to find vending machine locations. You might want to try some of the following ideas. You can look up businesses online to establish places you want to offer to put vending machines. I’m going to use Clark County, Nevada as an example. You’ll want to follow these steps: The following steps are sparsely cited because this is a strategy I use when conducting research for my consulting business. Let’s look at each step. Do a quick Google Search to find your local business licensing lookup. In this example, the search would look like “Clark County business license lookup.” The results should look similar to the picture below: You want to make sure that it is the real site, which means look for a .gov in most scenarios. Click the link that says “Business License Search.” That will bring you to a page that will be similar to the one below: We’ll discuss what to do here in the next step. On this step, you’ll have different ways to search for a business license including: Click on the “Search Business Category” option and it will take you to a page that looks like the one below: Each state will have slightly different options, but should be similar. I’ve done this in Dallas, Las Vegas, and Seattle, where all were similar. You can fill in as many of the following fields as you want. Once you’ve put in the information, click enter and you’ll get results like the ones below. You’ll want a list of businesses to research that includes about 50-250 businesses, depending on how many machines you are trying to place. I only found six hotels so I would need some more from other categories in this example. Next, we’ll want to review each business. If you click on one of the licenses, it will take you to the summary page, which looks like the picture below. You specifically want the address, phone number, and owners’ name from the screen. Do your research on them to find out: Once you find enough information, it’s time to reach out to them. Depending on the business, you can either do an email lookup, call them, or just go up there. An email or call is less expensive and might help establish if they are open to discussing your proposal. If they agree to meet with you, go visit them. If not, move on to the next business. When you visit the location, bring a: Remember to be friendly and observe the location so you can describe where you’d put the machines and how often you’d provide service. Once the property owner agrees that it makes sense to have a vending machine on their property, negotiate the terms and provide them a vending machine proposal contract. While many vending machine companies don’t like offering a percentage to the property owner, it is common to pay 5% to 20% of sales for lease of the space. Once they sign, start preparing to service their location. Now that you have established where to place your vending machines, it’s time to place them and provide stellar service to your customers. We’ve partnered with Adam to bring you the best information on starting a vending machine business. Sign up for our free class below: What are your favorite vending machine locations?In this article, we’ll focus on the first of the four keys: Location. When you’re done, you should understand:
3 Ways of Investing in Vending Machines
The corporate world was trying to make me bounce around a lot and I wanted to stay in my strip of paradise. I decided to leave my job, buy a vending machine route, and have been doing this ever since.
Buy Vending Machine Route
You don’t have to worry about finding the route. You can focus on the other three keys.
You need to link up with an education platform like UpFlip. You’ll be running your business by making mistakes if you don’t. There’s no college courses for this.Perform B2B Sales
The Facility Manager is normally much less busy and will accept your visit. He’s often sitting in an office and will enjoy your company. Once they like you, you have an in. Then you can propose replacing the service contract.The GM is the busiest person in the building. The gatekeeper (receptionist) is specifically instructed to brush people off politely.Buy a Vending Machine Franchise
Where Can I Learn How to Start a Vending Machine Business?
Where Can I Put a Vending Machine Near Me?
Where Can I Legally Put a Vending Machine?
Type of Vending Machine Business
I mostly sell food, but I have one cigarette machine.Foot Traffic
Hours of Operation
Distance from You
Accessibility to the Vending Machine
Infrequent Ownership Changes
Best Places to Put Vending Machines
#1. Airports Are the Best Locations for Vending Machines
#2. Where Can I Put My Vending Machine? Bus and Train Stations
#3. Hospitals and Care Facilities Are Good Locations
Waiting Rooms
Break Rooms
Reception Desk
#4. Warehouses Are Good Places to Put Vending Machines
#5. Where Can I Put a Vending Machine? Offices
#6. Where to Put a Vending Machine: Apartment Complexes
Don’t put machines outside. It wears them out.#7. Where Can I Put My Vending Machines? Car Dealerships
#8. Best Location for Vending Machine: Hotels
#9. Gyms Might Be Ideal Locations
#10. Want High Foot Traffic? Try Schools, Community Colleges, and Universities
Are vending machines a good investment on college campuses?
#11. Dorms: Best Vending Machine Locations
#12. Retail Locations are Great Vending Machine Locations
#13. Gas Stations Use Vending Machines Too!
#14. Shopping Centers are Good Vending Machine Locations
#15. Amusement Parks are Great Locations for Machine Vending
#16. Conference Centers Need Vending Machines
#17. Car Washes
#18. Restaurants Use Vending Machines to Save Time
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#19. Health Food Stores
#20. Hair Salons
#21. Parks are Great Places for Vending Machines
#22. Laundromats Need Specialty Vending Machines
#23. RV Parks Need Vending Machines
$24. Waiting Rooms: Visitors Love Vending Machines
#25. Break Rooms: Employees Need Snacks
#26. Reception Desks Like Vending Machines
#27 Fire Stations Need Food And Drinks
How to Find Vending Machine Locations
How to Find Locations For Vending Machine Using Business Lookups
Find Business Lookup Site for Your City
Review Search Options
Input Category, Date of License, or Zip Code
Review Businesses
Reach Out to Business Owners
Visit the Location
Provide a Vending Machine Contract Proposal
Ready to Take The Next Step?
Author
Brandon Boushy
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Unique business ideas across sectors and industries are waiting to be discovered. These businesses might cater to niche markets, invent and sell new products, or offer a traditional service in a new way.
Finding the right unique business idea can be a balancing act. You want to be different enough to stand out from the crowd, but not so different that there’s no market for your product or service. We’ll discuss the unique small business ideas that hit that sweet spot.
[su_note note_color="#dbeafc"] Click on any of the links below to jump straight to the section you want to learn more about, or just continue reading.
- Top 21 Unique Business Ideas 2024
- Unique Service Business Ideas
- Unique Cleaning Business Ideas
- Unique Business Ideas for Small Towns
- Unique Online Business Ideas
- Unique Business Ideas for Students
- Unique Brick-and-Mortar Shop Ideas
- Unique Business Ideas From Home
- Unique Business Development Ideas
- Finding the Right Unique Small Business Idea [/su_note]
Top 21 Unique Business Ideas 2024
- Dog walking business
- Fingerprinting business
- Personal chef
- Remote cleaning business
- Ewaste collection and recycling
- Window cleaning business
- Flower shop
- Mobile veterinary services
- Specialty food store
- Virtual interior designer
- Online bakery
- Voiceover business
- Transcription business
- Pet sitting services
- AI book business
- Axe throwing business
- Sensory deprivation tank business
- Cat cafe
- Drone photography
- Furniture restoration business
- Custom treehouse business
You’ll find more information on each of these small business ideas, along with more unusual business ideas, in the article below.
Unique Service Business Ideas
1. Dog Walking
• Average Annual Revenue: $34K+
• Average Profit Margins: 16%
• Startup Costs: $500-$5K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 1.7%
• Best For: Animal lovers and experts, pet owners, people who like working outdoors
High demand puts a dog walking business among the best small business ideas for animal lovers to start in 2024. As of 2023, 65.1 million households in the U.S. own at least one dog, and many of those need help taking care of them. That’s a lot of potential customers for your new business venture.
Another plus of dog walking is the potentially low startup costs compared to other businesses. You can set up a profile on a site like Rover and start providing services locally right away with a very small budget.
2. Fingerprinting
• Average Annual Revenue: $132K+
• Average Profit Margins: 9.1%
• Startup Costs: $500-$250K
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: -0.6%
• Best For: People with high professionalism, a commitment to security, and strong organization skills and attention to detail
Fingerprinting is another unique business idea with a potentially low initial investment.
These services have a broader customer base than many people realize, from criminal investigations to employment background checks and security clearances. If you’re able to attract customers and are skilled at providing customer service, fingerprinting can be a very lucrative business.
Dan Jurkowitsch is an expert in this unique niche market. He teaches people how to use this business model to start successful businesses. Hear his advice in this podcast interview:
3. Personal Chef Services
• Average Annual Revenue: $129K
• Average Profit Margins: 51.7%
• Startup Costs: $500-$5K
• Time to Revenue: 1-6 months
• Annual Market Growth Rate: 0.9%
• Best For: Culinary experts like chefs, cooks, and bakers with strong customer service skills
Being a personal chef is a great business idea for chefs who want to avoid the stress and high startup costs of food trucks and restaurants.
Since you work one-on-one with customers, it’s much less hectic and demanding, and you won’t need a brick-and-mortar space.
Connecting with your target audience is often the trickiest part of starting a personal chef business. Having an online presence for your business, including a website and a strong social media following, can be the best way to grow small businesses in this niche.
You can even expand this online presence into another revenue stream by offering online courses in cooking techniques or connecting your chef services to an online store selling ingredients or cooking supplies.
Unique Cleaning Business Ideas
4. Remote Cleaning
• Average Annual Revenue: $74K+
• Average Profit Margins: 6.7%
• Startup Costs: $500-$30K
• Time to Revenue: 1-6 months
• Annual Market Growth Rate: 1.2%
• Best For: System-driven and organized entrepreneurs who are tech-savvy with strong digital marketing skills
Offering cleaning services may not be a unique business idea on its own, but it is when you run that company completely remotely. You can set up an online booking system, hire remote team members, and run a cleaning business without ever setting foot in a customer’s home.
Neel Parekh launched his cleaning company, MaidThis, in 2013. Today, it brings in an average revenue of $166,000 per month using a 100% remote business model. Learn how Neel started and grew this unique business idea in the interview below:
5. E-Waste Collection and Recycling
• Average Annual Revenue: $5.7M+
• Average Profit Margins: 2.9%
• Startup Costs: $100K-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 1.9%
• Best For: People who like physical work, entrepreneurs passionate about sustainability and the environment
Electronic waste, also known as e-waste, has been a growing problem over the past decade. Roughly 6.9 million tons are generated in the United States alone each year, of which only about 17% is properly recycled. Part of the problem is that many people don’t know how to properly dispose of electronics or lack services in their area to do so.
This makes an e-waste recycling service both a unique business idea with potentially high demand and a much-needed service to safeguard our natural resources.
This is another unique small business idea that could be done remotely. Kyle Landwehr started a junk removal business and has turned those systems into six-figure remote trash hauling businesses through the Junk Academy. Find out more in this podcast interview:
6. Window Cleaning
• Average Annual Revenue: $64K
• Average Profit Margins: 8.8%
• Startup Costs: $200-$5K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 0.9%
• Best For: Detail-oriented and hands-on entrepreneurs who excel at customer service
One way to stand out with a cleaning services business is to focus on a niche. Window cleaning can be an extremely profitable option because it’s a relatively untapped niche with a potentially wide customer base.
Both residential and commercial customers have a need for window cleaning services. This is also something many people can’t do themselves, particularly for multi-story buildings.
On The Spot Window Cleaning has grown to a $45,000-a-month business since its founding in 1998. Learn how owner Jeremiah Hickey started and grew this small business idea in his podcast interview:
Unique Business Ideas for Small Towns
7. Flower Shop
• Average Annual Revenue: $262K+
• Average Profit Margins: 5.4%
• Startup Costs: $100,000-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 2.8%
• Best For: Gardeners, florists, and other plant care professionals, creative entrepreneurs with a green thumb
A flower shop is among the best small-town business ideas. People everywhere love getting beautiful, sweet-smelling flower arrangements as a gift, but smaller towns often don’t have local businesses that provide the service.
Small business owners in the floral niche also have several options to add revenue streams. For example, you could sell herbs, potted plants, seeds, bulbs, and gardening supplies. You can also expand your customer base by selling edible flowers to local restaurants or partnering with other small businesses in the gift niche.
It doesn’t take much experience or business savvy to start a flower business. Dylan Capshaw started a flower business online when he was only 16. He’s since expanded it into a unique business, Stemistry, that combines a flower shop with a cafe. Hear his story in this podcast interview:
8. Mobile Veterinary Services
• Average Annual Revenue: $72K
• Average Profit Margins: 11.5%
• Startup Costs: $1K-$100K
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 1.1%
• Best For: Veterinarians, dog breeders and trainers, and other animal care experts
Being a veterinarian isn’t necessarily a unique business in its own right, but it is once you put it on wheels!
This is an innovative business idea for a small town or rural area. Pet owners in lower-population areas often have to travel a long distance to access vet care. Mobile services go to them, making transactions more lucrative because you’re giving customers much-needed convenience.
Granted, this unique business idea isn’t for everyone. You’ll need extensive training in animal healthcare. For those who already have this training, though, a mobile business model can be a great way to start a successful business venture.
9. Specialty Food Store
• Average Annual Revenue: $9.3M+
• Average Profit Margins: 1.8%
• Startup Costs: $100K-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 0.8%
• Best For: Foodies, cooks, and food service professionals with strong organization and inventory management skills
People who live in small towns still enjoy unique food, but it can be hard to come by outside of large cities. This is why a specialty food store is an excellent small business idea for small-town entrepreneurs.
Successful business owners in the specialty food niche need to be responsive to customer demands. The key is to find out what items are missing from your local markets and fill that gap.
Communicating with locals, both in person and through social media, is a great way to predict which specialty foods will fly off the shelf in your town.
Unique Online Business Ideas
10. Virtual Interior Design
• Average Annual Revenue: $168K+
• Average Profit Margins: 10.6%
• Startup Costs: $1K-$100K
• Time to Revenue: 1-3 months
• Annual Market Growth Rate: 1.2%
• Best For: Designers, artists, and creative entrepreneurs, real estate industry and home staging professionals
The expansion of virtual tools has created lots of opportunities for unusual business ideas, one being virtual interior design. Designers in this niche use virtual design software to make furnishing and decoration recommendations completely remotely.
Having a website and a strong social media presence is crucial for success as a virtual designer. You can demonstrate your authority and aesthetic with an online portfolio, virtual design workshops, or online courses that teach interior design basics.
11. Online Bakery Business
• Average Annual Revenue: $1.52M
• Average Profit Margins: 5.4%
• Startup Costs: $100-$3M
• Time to Revenue: 1-6 months
• Annual Market Growth Rate: 1.1%
• Best For: Cooks, bakers, and food experts who are system-driven, organized, and tech-literate
Similar to a cupcake food truck business or bakery catering service, an online bakery business can be a great way to profit from your baking skills without the expense of a brick-and-mortar space.
Instead of buying products at a bakery, customers order their baked goods through an online interface and then get products delivered, either through the mail or local delivery.
Along with lower expenses, this mode allows the business owner to work at their own pace. It’s also easier to control inventory when you’re preparing baked goods to order rather than trying to anticipate the demands of hungry customers.
12. Voiceover Business
• Average Annual Revenue: $73K+
• Average Profit Margins: 3.7%
• Startup Costs: $100-$500
• Time to Revenue: 1-3 months
• Annual Market Growth Rate: 9.12%
• Best For: Actors, singers, and performers who are patient, detail-focused, and excel at time management
If you’ve ever been told that you have a great voice for radio, then a voiceover business should be on your list of top small business ideas.
Voiceover artists take on a range of assignments, from voicing characters in cartoons and video games to reading audiobooks or content for apps like GPS systems. The main skills you’ll need are a clear speaking voice and the ability to read from a script.
The easiest way to start an online business in voice acting is to sign up for a freelance platform focused on the craft. Snap Recordings, Filmless, and Voice123 are among the most popular sites for building a career in this industry.
Unique Business Ideas for Students
13. Transcription Business
• Average Annual Revenue: $25K+
• Average Profit Margins: 9%
• Startup Costs: $0-$5K
• Time to Revenue: 1-3 months
• Annual Market Growth Rate: 1.9%
• Best For: Good listeners with fast typing skills
Students need a business with low startup costs—and it doesn’t get any lower than 0. While some new transcription business owners pay for advertising to attract customers, you can start for free by taking jobs through sites like TranscribeMe or Rev.
If you can type at a speed of at least 60 words per minute, transcription can be a good business idea. You can also find free and low-cost software to make the job easier. Typically, transcriptionists work at their own pace, so this is also an easy business to schedule around your classes and other activities.
14. Pet Sitting Services
• Average Annual Revenue: $34K+
• Average Profit Margins: 16%
• Startup Costs: $500-$5K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 1.7%
• Best For: Animal lovers, pet owners, people who are patient, organized, and great communicators
Many students need to fit their small business ideas around studying and homework time. This is what can make pet sitting a perfect fit. While you’ll need to feed and care for the animals, a lot of your work is just keeping an eye on them—basically, you can get paid for hanging out with cats and dogs.
Building your client base can be the tricky part of getting started in this niche business. Many small business owners in the pet sitting niche build a client list through websites like Rover, Wag!, and PetSitter. You can also connect with clients through social media sites like Nextdoor.
15. AI Book Business
• Average Annual Revenue: Unknown
• Average Profit Margins: 23.3%
• Startup Costs: $500-$5K
• Time to Revenue: 1-3 months
• Annual Market Growth Rate: 7.80%
• Best For: Strong editors with knowledge of generative AI and digital marketing skills
Generative artificial intelligence (AI) has opened up a host of new business ideas. Using AI to generate books is one way to leverage this new technology into a lucrative business opportunity.
The key to success with an AI book business is knowing how to identify your target audience and market to them effectively. That’s how Joe Popelas made over $1M in his first year selling AI-generated books. Hear his story and advice in this podcast interview:
Unique Brick-and-Mortar Shop Ideas
16. Axe Throwing Business
• Average Annual Revenue: $454K
• Average Profit Margins: 9.91%
• Startup Costs: $100K-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 1.9%
• Best For: Outgoing and fun-loving entrepreneurs with strong system-building and marketing skills
If you want to provide your area with a unique entertainment option, starting an axe-throwing establishment can be both a very fun and an extremely profitable business opportunity. Originating in Canada, this is a relatively new industry that’s skyrocketed in popularity over the past decade.
Along with charging customers for axe-throwing sessions, you can expand your revenue streams by hosting tournaments, selling memberships, or having an on-site shop that sells refreshments and merchandise.
17. Sensory Deprivation Tank Business
• Average Annual Revenue: $1.1M+
• Average Profit Margins: 12.07%
• Startup Costs: $100K-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 1.1%
• Best For: Wellness-oriented entrepreneurs with strong customer service and marketing skills
First developed in the 1950s, sensory deprivation tanks (also known as flotation tanks or isolation tanks) have seen substantial growth in popularity in recent years. They can help people unplug from the distractions of modern life, so it’s no surprise that so many of them have popped up across the United States since 2020.
Ryan Duey’s transformative experience in a float tank led him to open his own flotation therapy spa, Capitol Floats. He’s since built on that business by making and selling his own cold plunge tanks and sensory deprivation tanks. Hear how he built his business in this podcast interview:
18. Cat Cafe
• Average Annual Revenue: $865K+
• Average Profit Margins: 5.8%
• Startup Cost: $1K-$100K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 1.2%
• Best For: Animal lovers, baristas and food service professionals
Some of the top unique businesses are twists on old classics. Cat cafes are one example of this, putting a new spin on the classic coffee shop.
Connecting with other businesses is a critical first step to opening a cat cafe. Primarily, you’ll need an animal partner that can provide well-socialized cats for guests to interact with (and adopt, if they fall in love with a floof during their visit).
Cat cafes can set up multiple revenue streams to increase their odds of success. This can include selling merchandise and pet-friendly snacks in addition to the typical cafe offerings. They can also charge an entrance fee for the cat space.
Unique Business Ideas From Home
19. Drone Photography and Videography
• Average Annual Revenue: $50K
• Average Profit Margins: 7.3%
• Startup Costs: $1K-$10K
• Time to Revenue: 1-6 months
• Annual Market Growth Rate: 0.3%
• Best For: Photographers and visual artists, tech-literate and creative entrepreneurs
Drone photography is a relatively new industry, and that’s part of what makes it a good small business idea. While the market for photography services can be crowded, most photographers can’t take overhead shots. Offering that unique service can help a new small business owner stand out in their local market.
This niche business in the photography industry is often in high demand as a B2B business. For instance, real estate industry professionals use drone photography to sell their properties, while advertising professionals use it in commercials and other marketing materials.
Mile High Productions built a strong customer base of real estate agents, earning an average revenue of $35,000 a month. Learn how it grew in this YouTube interview:
20. Furniture Restoration and Flipping
• Average Annual Revenue: $111K+
• Average Profit Margins: 1.9%
• Startup Costs: $100K-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 6.55%
• Best For: Woodworkers, interior designers, creative entrepreneurs who like working with their hands
Furniture restoration is among the best home business ideas for makers, tinkerers, and other hands-on entrepreneurs. It lets you make a living from breathing new life into old things, which makes it sustainable and eco-friendly, as well.
The best business plan for a furniture restoration business often includes multiple services. You can restore pieces for clients or buy, fix up, and flip old furniture you find at thrift stores, flea markets, and antique stores.
Jennifer Beck started in furniture retail sales, then built on her passion for restoration into her own business with Saved By Design. Learn how she got started in this podcast interview:
21. Custom Treehouse Business
• Average Annual Revenue: $696K+
• Average Profit Margins: 3.4%
• Startup Costs: $1K-$100K
• Time to Revenue: 1-6 months
• Annual Market Growth Rate: -1.3%
• Best For: Carpenters, designers, and construction professionals with strong customer service and communication skills
Treehouses aren’t just for kids anymore. From unique Airbnbs to fun home offices and entertainment spaces, there are a variety of reasons people add custom treehouses to their properties.
You don’t have to only build treehouses, either. Often, business owners in this niche market build other backyard spaces for customers, like decks and sheds.
Anthony and Jamie Taylor-Weber and started their innovative business, Outdoor Office, from their home garage. Now, it brings in a revenue of $1.2M a year. See how they did it in this YouTube interview:
Unique Business Development Ideas
Having a unique business concept doesn’t need to mean you’re inventing a completely new thing from scratch. Here are some tips on ways to turn any concept into a unique business idea.
Take Your Business on the Road
Convenience is king in the modern world. Taking your product or service straight to customers can give you a definite leg up on your competition.
Mobile vet services are one example of this, and you can apply the concept to just about any niche. From food trucks to mobile clothing boutiques or hair salons, there’s a way to take just about any type of business on the road.
This approach has benefits for business owners as well as customers. It often costs less to start, for one thing, and has lower overhead expenses compared to brick-and-mortar shops. It also makes any type of business super-scalable—just buy another truck for the fleet, and you’ve effectively doubled your capacity.
Combine Compatible Ideas in New Ways
One of the businesses referenced above is Stemistry, a combination flower shop and coffee shop. By bringing these concepts together, Dylan Capshaw expanded his revenue streams and target audience.
A cat cafe is another example of this. People love cafes, and they love playing with pets—so why not put the two together into one place?
You can take the same approach with other business ideas. This can be a way to put a new spin on a familiar concept, or it can add profitability to a new idea that may take a while to gain traction otherwise.
Share Independent Research and Education Resources
You might think that teaching other people about your industry is counterproductive for growing business revenue. After all, if your customers know how to do things themselves, why would they pay you?
But think about it: most people know how to clean a home, but cleaning businesses are still very profitable.
Providing educational resources, like online courses, white papers, infographics, or how-to videos, establishes your authority in your industry. You can also use these as an additional revenue stream or as marketing materials to attract new customers.
Finding the Right Unique Small Business Idea
This list of unusual business ideas certainly isn’t comprehensive. There are unique business ideas not yet implemented in every industry. Now it’s time for you to go out and find the right one for you.
What is your favorite unique business idea? Let us know in the comments!
Why do some companies scale while others grow, burn out, and collapse? Why do some small business owners barely work and make millions, while others become a slave to their business?
Over the last two years, we have gotten inside looks into some amazing businesses, and the owners all share similar insights. Their secret? You need standard operating procedures.
Remarkably, the largest companies in the world make up to $2 million per employee (excluding the energy industry) while solo entrepreneurs make an average of $50k per year. SOPs, or standard operating procedures, are the basis for these gains because they are the stepping stone to automating a business.
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We’ll look at how to implement standard operating procedures to help your company run more smoothly. We’ll also provide SOP templates and examples to get you started. Click on a link below to jump ahead to the part that interests you.
- What are SOPs (Standard Operating Procedures) in Business?
- Standard Operating Procedure (SOP) Templates
- 5 Elements of SOPs
- How to Create SOPs
- What are the three types of SOP format?
- What is a Standard Operating Procedure (SOP) Plan?
- Sample Standard Operating Procedure Checklist
- SOP Frequently Asked Questions
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What Are SOPs (Standard Operating Procedures) in Business?
A standard operating procedure (SOP) defines the step-by-step process to complete a routine task. SOPs are created to help companies:
- Perform more effectively
- Maintain quality
- Maintain consistency
- Reduce rework
- Comply with regulations
- Delegate tasks
- Grow
Even small businesses and startups benefit from SOPs. For example, entrepreneur Christopher Mondragon told us:
[su_quote]Exceptional customer service will help cleaning companies start making money in days. Two things I do that others don’t is my phone support is available from 7 a.m. -11 p.m., seven days a week. I also have an online system where people can go online, put in their information, and book it without talking to anyone. Customers love it![/su_quote]
These are the kind of SOPs Chris used to grow his cleaning business to $1.5 million in record time. Would you like to achieve more in your business?
Find out how Chris did it below.
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Then sign up for our 7-figure cleaning blueprint where we provide all the tools Chris uses to succeed.
If cleaning doesn’t sound like the right business for you, get ready to dig deeper into what makes a good standard operating procedure.
Industries That Use Standard Operating Procedures
Every industry has standard operating procedures. Some industries have more government regulation and therefore more stringent SOP documents. Some of the most regulated industries include:
- Manufacturing
- Transportation
- Health care
- Financial institutions
- Energy production
- Professional services
- Business administration services
In fact, there are over three million regulations governing businesses in the United States.
I can’t imagine running a business that has employees without a clearly defined SOP document. We have dozens of them just to get this blog out to you. We have a keyword research SOP, a blog writing SOP, an editing SOP, a graphic design SOP, a WordPress SOP, not to mention all the accounting, payroll, and other SOP documents that businesses like ours need to follow.
Why Are SOPs Important?
Standard operating procedures are important because they:
- Reduce training time
- Increase quality
- Improve brand loyalty
- Reduce regulatory penalties
- Prevent knowledge loss
Standard Operating Procedure (SOP) Templates
Our mission at UpFlip is to provide the best tools to help you succeed in business. That’s why we've created a template for SOP creation and other helpful resources. Check out some of the standard operating procedure documents we’ve created for you:
- Standard Operating Procedure pdf
- Step-by-Step Standard Operating Procedure template word
- Stample Standard Operating Procedure Checklist for Hiring and Onboarding
- Sample SOP Document
5 Elements of SOPs
A standard operating procedure (SOP) should include at a bare minimum:
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If you want a more formal SOP document, you might also want to include a header, scope, appendix, revision history, and signatures.
How to Create SOPs
Creating Standard operating procedures follows a simple process:
- Identify Pain Points
- Establish Solution
- Implement Solution
- Write the SOP Document
- Implement SOP
- Train Employees
- Refine and Update
Entrepreneur Adam Hill also uses SOPs in his vending machine business. He uses them for standardizing machines, determining his route, and deciding how much to pay for a vending route. Check out our interview with him below.
You can also pre-enroll for our free vending machine training course.
Let’s look at each step in the process so you can start creating your own effective SOPs.
Step 1. Identify Pain Points
Pain points are routine tasks that impact your company on a regular basis. Your pain points may be challenges like:
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- Training new employees to do a specific job
- Complying with industry regulations
- Reducing the time a business process consumes
- Improving quality control
- Reviewing employee performance
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Make sure to identify why these are pain points, how much time or money they consume, and what solutions you could use to solve them. This step will be the basis for the purpose section for your SOP forms when you create them.
Next, we’ll provide an example of a pain point.
SOP Example Pain Point:
We’re going to provide standard operating procedure examples throughout the article.
Given one of the main pain points companies have today is the ability to find employees, I’m going to tackle this concern in many of the SOP examples. You might describe the pain point in one of the following manners:
- Hiring new employees costs the company $10,000 in lost productivity every time we hire. The goal of this SOP is to improve the company’s retention of employees.
- Our business is growing so fast that we can’t hire enough employees. We aim to attract more candidates so we can fill positions faster.
Step 2. Establish Solution
Once you’ve identified a problem, you’ll want to identify the solution.
Business processes will vary from company to company, but you want to consider solutions that solve the problem as easily as possible. Using the hiring example, some solutions might include:
- Adopt an SOP to offer current employees up to 5% more pay than competing job offers to reduce turnover.
- Increase employee referral bonuses.
- Increase pay packages for new hires.
- Partner with a staffing agency to offer temp-to-hire positions.
- Run paid ads for job openings.
- Include salaries in job descriptions.
- Remove or reduce educational or experience requirements from job descriptions.
- Do keyword research for job descriptions.
Numerous solutions can be implemented to solve any problem with business processes. Hopefully, you’re starting to get some ideas about what standard operating procedure we’re going to create to solve the problem of not finding enough employees.
Step 3. Implement a Solution
Next, you’ll want to implement the solution to your problem. When you’re in the process of SOP creation, you may not get it right the first time, but make sure to write step-by-step instructions of what you did. This will be the basis for the SOP format.
Many of the suggestions to solve employers’ hiring problems employers centered around the job description, which means you might want to adopt standard operating procedures that work like this:
- Perform keyword research for job descriptions.
- Analyze pay for a position on the local level and set your salaries on the high end. (Yes, I know it costs more, but better pay means better candidates and happier employees. If the pay is higher than that of current employees, give your entire team a raise so they don’t get upset.)
- Write the job description. Make sure to include the keywords and salary information.
- Reduce or remove educational or experience requirements from existing job descriptions.
- Share the posting with employees. Remind them about your referral program. Add a perk and ask them to share.
- Share the posting on job boards. You don’t have to do paid promotion at first, but it might help if you need an employee fast.
- Contact a staffing agency. Discuss your needs and budget with them.
- Run paid ads. If the above steps haven’t been successful, paying for preferential treatment in the job listings is worthwhile.
Step 4. Write the SOP Document
Now that you have a process, you’ll want to write the SOP document. You want to make it foolproof. Personally, I like to give the document to someone who has no understanding of the subject and ask them to follow the directions in the standard operating procedure.
Let’s look at how to write SOPs.
How to Write a Standard Operating Procedure
Writing SOPs shouldn’t be difficult. The point is to make them easy to follow. You’ll want to:
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- Consider your target audience
- Create a cover page
- Add a Table of Contents
- Include the Purpose
- Include Roles and Responsibilities
- Include Quality Requirements
- Write the Standard Operating Procedure (SOP)
- Provide References
- Include the Revision History
- Include Document Authorization
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Consider Your Target Audience
Before you begin developing SOPs, you should identify the relevant employees, their prior knowledge, and the SOP format most likely to communicate the SOPs properly. Do they need technical SOPs, step-by-step instructions, or hierarchical SOPs?
Make sure to write in an active voice and use language employees understand. Once you’ve considered these factors, you can begin writing.
Create a Cover Page
The first page you’ll create is a cover page. It should be obvious what the standard operating procedure is about. The best way to do that is to create a title page with the:
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- Name of the company
- Name of the standard operating procedure
- Unique SOP identification number
- Most recent revision date
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We'll provide you with an SOP cover page template. Get your copy and more helpful documents in our free SOP template download below.
Add a Table of Contents
If your standard operating procedures don’t fit on a single page, include a table of contents. This is especially true if you have a three-inch-thick notebook with all the standard operating procedures. No one wants to read an entire rule book to find a single policy.
Include the Purpose
The purpose or scope tells people what the SOP is about. You should have already defined this in the previous steps. Now it’s just a matter of communicating what the SOP covers, what it doesn’t cover, and why employees perform the new SOP as directed.
If you provide digital (not printed) standard operating procedures, provide links to other SOPs mentioned in the purpose.
Roles and Responsibilities
You’ll want to define who will implement the standard operating procedure, who will check the procedure, and anyone who may need to be aware of the SOP.
Quality Requirements
Depending on the standard operating procedure, you may have quality control measures in place to make sure you achieve a positive outcome.
For instance, a t-shirt design SOP might specify that an acceptable design is only 1/16” off-center and that the measurements are taken by a machine. You might also want a human to check every 10 pieces to verify there is no equipment failure.
Write the Standard Operating Procedure
SOP writing should be as concise as possible and should include images for a better understanding of the intent. Make sure to give examples of the key steps. Digital SOPs can have videos so people can watch the SOP in action.
Provide References
If there are additional resources that a team member needs to understand, make sure to include them in the resources. This might include customer complaints, organizational knowledge, internal processes, relevant laws, and more.
Include Revision History
As you grow, your standard operating procedure will evolve to be more effective. You’ll want to document changes. This can be helpful for helping employees understand how the SOP format has changed over time and why.
Document Who Authorized The SOP
Large organizations might need authorizations from specific people before they implement standard operating procedures. Make sure to include a space for these.
Step 5. Implement the SOP
At this point, you’ve defined the SOP and written out the documentation, but you still need to implement it. Implementation could mean:
- Adopting and integrating software into your business
- Buying new tools or equipment (This is common in fields that require personal protective equipment.)
- Training employees
During this stage, your main goal is preparing your business to implement clearly defined SOPs. If your new SOP impacts other SOPs, edit them as well. For instance, new compliance standards would impact both the onboarding process and ongoing employee training SOPs.
Step 6. Training Employees
Creating SOP templates for your employees to work with can help you achieve more with fewer resources, but you’ll need to train your employees on the new SOP to reach maximum efficiency. Common ways of training employees on the company policies include:
- Providing written SOPs upon hire.
- Top employees training new employees.
- Sending an email about policy changes.
- Having a team meeting or training. These can be virtual or in-person, but allowing employees to perform the step-by-step SOP to see it in action normally works best. It helps them see the SOP’s impact on their workflow and provides useful feedback.
Step 7. Refine and Update
No matter how effective SOP writing is, you’ll always find better ways to complete a process as technology changes, your skill sets increase, and your business grows.
After you create standard operating procedures, make sure to go back to them occasionally and make sure that they still adhere to regulatory compliance and best practices.
What Are the Three Types of SOP Format?
A standard operating procedure will normally use one of three SOP formats:
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- Step-by-step SOP
- Hierarchical SOP
- Flow Chart SOP
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Let’s look at each SOP format to understand how to create standard operating procedure documents.
Step-by-Step SOP
A step-by-step SOP shows how to complete a task by completing a series of steps from a sequentially ordered list. How-to guides and recipes are good examples, but there are many other uses as well.
In fact, every blog we write on how to start a business follows a standard operating procedure (SOP) template. We just alter them based on the requirements to start each business.
These SOPs follow the sequence:
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- Step 1.
- Step 2.
- Step 3.
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These are the most common SOPs and are sometimes referred to as step-by-step instructions or workflows. These can be automated in many scenarios to create a quality output faster.
Hierarchical Format SOP
When written instructions would be too complex for employees to follow, you may need to break them down into a hierarchical SOP where the knowledge for one part of the task is covered in one SOP document, and the next part of the process is separate.
For example, hiring employees is a huge task. If you try to include the entire process in one step-by-step guide, it will be overwhelmingly long.
Developing standard operating procedures using the hierarchical format might follow an SOP template that looks like this:
- SOP: Hiring Employees (SOP1)
a. Notifying HR of Hiring Needs (link to SOP2)
i. Submit termination paperwork
ii. Submit form to create job description
iii. Other associated tasks (List all)
b. Researching Hiring Market (Link to SOP3)
c. Creating Job Descriptions (Link to SOP4)
d. Sharing Job Descriptions (Link to SOP5)
e. Interviewing Applicants (Link to SOP6)
f. Confirming New Hire Job Acceptance (Link to SOP7)
g. Preparing New Hire Paperwork (Link to SOP8)
h. Procuring Tools (Link to SOP9)
I. Granting Software Access (Link to SOP10)
j. Setting Up Workspace (Link to SOP11)
k. First Day Tasks (Link to SOP12)
l. Orientation Tasks (Link to SOP13)
m. Probationary Meetings (Link to SOP14)
Each of the letters in this list would serve a specific purpose that has hierarchical steps. The full process to complete the fourteen tasks listed could require hundreds or thousands of steps, and the people involved could span across different teams of employees.
Flow Chart SOP
When processes depend on changing variables. use flow charts like the one below. To create an SOP template for a flow chart, you need to determine what the relevant decisions are.
As an example, we created this flow chart to help you decide what type of standard operating procedure templates to use. There are 3 relevant decisions that impact which template you should create:
Based on the answers, you get a different result that shows you how to make SOPs easier to follow. Using this strategy maintains organizational knowledge and can be the basis for an SOP plan, which we’ll discuss next.
What Is a Standard Operating Procedure (SOP) Plan?
An SOP plan is a document you may need to create when you grow from being a single person running a small business to hiring employees.
You have certain ways you like things done, and the best way to get employees to follow your hierarchical steps is to create an SOP for anything that is important to you. You’ll then train the employees using the SOP and provide them documents and work tools that make it easier to follow the SOP.
You might include the following elements in an SOP plan:
- What SOPs you need
- Templates for standard operating procedures
- SOP naming conventions
- When and how to edit each standard operating procedures template
Sample Standard Operating Procedure Checklist
We’ve created a sample standard operating procedure checklist for hiring and onboarding employees. Download the checklist along with the standard operating procedure guidelines and other templates we created to help you get started with SOPs.
SOP Frequently Asked Questions
What is an SOP?
The SOP meaning in business stands for standard operating procedure. The definition of standard operating procedure is a written process that is followed every time the process needs to be repeated.
Why SOPS Are Important
SOPs are important because the majority of tasks are repeated consistently during the course of business. Documenting and following standard operating procedures helps businesses:
- Reduce decision making
- Increase efficiency
- Increase quality
- Comply with government regulations
- Train new employees
- Maintain the body of knowledge
Technical vs. Management SOPs
Technical SOPs explain how to perform and complete tasks while management SOPs explain how to create, update, distribute, and oversee other SOPs. As an example, Technical SOPs are used for routine tasks like payroll, work orders, and inspections, while management SOPs are used to maintain consistency in the SOP full form creation.
How Businesses Use SOPs to Improve Efficiency
Every time you make a decision, you have to think about the factors that go into the decision. When businesses create standard operating procedures, they eliminate the decision-making process for that procedure, which increases efficiency.
This also makes training easier because everyone has the same method of performing a task. This standardization also decreases defects and errors, which leads to greater efficiency.
What is a Standard Operating Procedures Manual?
A standard operating procedure manual is a list of all standard operating procedures gathered in one place.
Today, an SOP manual is best kept in the cloud where all employees can access it, but for brick and mortar businesses, the standard operating guidelines may also need to be printed and stored in a readily accessible location.
What Are SOPs Doing for Your Business?
As you can see, there are many benefits to implementing SOPs in a business. No matter the size of your company, you can benefit from defining your standard operating procedures.
What are some ways that you have defined your business operations?
- Complying with Government Regulations
- Automating Processes
- Training Employees
- Other - Tell us in the comments!
Have you ever wondered how to start a screen-printing business? You can start screen printing with $10,000 or less. We’ll show you how to make a great living running a screen printer.
Forrest Wedmore and Clint Graham started The Foundry in 2010 as a custom t-shirt company. The screen printing company that they were using was struggling and sold them the screen printing equipment for $10,000. 11 years later the Foundry is making nearly $1m per year!
Forrest took the time to explain they started The Foundry. He gave us a ton of great advice about how to start your own t-shirt company that we’ll include while providing a step-by-step guide to start a screen-printing business.
This is the type of printing Forrest does. Printers focus on printing for specific brands.
A business plan using this model typically focuses on a niche market to satisfy their needs and may expand into other markets later while maintaining the same brand.
Many clothing companies, print-on-demand companies, or other e-commerce businesses hire a printer to press and ship the clothing their customers order from their website.
Printers can make great money doing this because they will typically get an additional payment for handling the shipping.
Your screen printing business will need to produce t-shirts, and you'll be doing it. Otherwise, you should research print-on-demand companies like Printful.
If you don't already print garments, you’ll need to learn how to operate different types of machines.
Some of the typical techniques you’ll need to learn include:
Forrest walks you through the direct to garment printing process at the 8:14 mark of the interview.
Printsome offers a good infographic on deciding what kind of technique you want to use.
The best way to learn these screen printing and heat transfer techniques is hands-on, which means purchasing your own machines or finding someone who will teach you.
Other ways to learn t-shirt printing skills, like heat transfer, are YouTube videos and manufacturer training courses. Just search "screen printing training courses" to find great resources.
Marketing is about going where your target audience is to help them become aware of your screen printing services. Marketing can be done both online and through other channels.
Three of the largest marketing companies expect digital marketing to make up over half of all ad spend in 2021. To read more of their insights, check out this blog.
You’ll need to be familiar with the largest places where you can market your print shop:
The saving grace for the logo is they include the word "print shop" in the logo. Without that, it would be hard to tell what it is. Make sure to make it easy for people to understand what your company does.
Each location has different licenses, permits, or tax forms required. Use the SBA License and Permits page to identify what your custom tees company needs. Keep reading for information on different legal structures.
There are several opportunities to purchase t-shirt franchises.
Franchising.com has two franchise opportunities in the United States that allow you to start a t-shirt business using a reputable company’s name and business processes.
A franchise makes it where an entrepreneur can benefit from the reputation of an established clothing printer that has already worked out many of the kinks of starting from scratch.
A new screen printing business requires inventory. You’ll need the shirts you’ll be selling, product display stands, registers, computers for design, and the machines for adding designs.
You’ll need machines based on the different types of t-shirts. These can range from heat presses to DTG printers to embroidery stations.
A professional t-shirt printing machine that is recommended in other blogs is the Brother DTG Printers.
Starting a Clothing Line offers a list of manufacturers by location and type of clothing. It’s a great place to start when looking for manufacturers.
Hiring people requires posting “now hiring” signs and posting on prominent job boards. Some places you can start posting job requirements are:
A crucial portion of successfully starting a small business is managing the finances. Here are some tips and resources to help you get started with the financial management of your print shop.
You’ll need unemployment insurance and worker’s compensation if you have employees. You may also want a general liability policy to protect against unforeseen events that could cause substantial losses.
One of the best ways to learn what works in marketing and business is to follow others who rock their industries. Some of the top influencers to follow are:
Step 1: What’s the Best Way to Start a Screen-Printing Business?
The first step in the process of starting a screen printing shop is to research to determine whether a print shop is right for you. Screen printers can make great money, but every business owner has a different mindset. You may want to run a store focused on a specific group, such as company t-shirts, one that caters to everyone, or you may want a warehouse where you focus on e-commerce. You aren’t limited to just one type, but the type of printing company you choose will impact every decision you make going forward. The Foundry focuses on printing, embroidery, and selling custom garments. Forrest told us: [su_quote]We primarily focus on garments for sporting goods because they have a ton of relationships with surf shops and other stores.[/su_quote] Many consumers start their shopping experience online, so a shop that can sell clothing in person or online is recommended to start your clothing line. Keep reading for different types of printing companies.Printing for Private Label T-shirts
This is the type of printing Forrest does. Printers focus on printing for specific brands.
A business plan using this model typically focuses on a niche market to satisfy their needs and may expand into other markets later while maintaining the same brand.
Franchise
A franchise is just a business that has already developed a reputation and business processes. They let owners purchase the right to use a company's branding and process in exchange for a licensing fee and percentage of revenue. Franchises also help you with aspects like marketing, sales, and sourcing equipment. To learn more about starting a franchise printing company, check out our blog about Big Frog.Retail T-shirt Printers
Printers that operate this way are commonly in malls and have shops that focus on retail customers that have small order sizes. They'll typically have a higher price per shirt, but that's because the costs associated with the screens and design are covered by a smaller order than bulk print orders. With the rise of eCommerce, this part of the industry is hurting. Closures of retail stores have been increasing for at least the last 3 years according to Moneywise. Despite this, Digital Commerce says retail sales have increased around 3% per year since 2007, meaning locations that stay open make money. This business model works with franchisees and stores that run a tight ship. They tend to need sales of $40k/month to be safe. Otherwise, you’ll probably want to start a different way. That is comparable to what Forrest told us about his costs: [su_quote]I have to make around $1,200 per day to break even.[/su_quote]Printing for E-commerce
Many clothing companies, print-on-demand companies, or other e-commerce businesses hire a printer to press and ship the clothing their customers order from their website.
Printers can make great money doing this because they will typically get an additional payment for handling the shipping.
How much does it cost to start a screen-printing business?
Forrest told us "We started the business with $10,000 and a U-haul." When starting a screen-printing business, start-up costs can range from a few hundred dollars to $150k for a franchise.Is a screen-printing business profitable?
It can be profitable as they are making around $3,500 per day, but you'll need to control the expenses in the early stages of the company.Step 2: Learning how to screen-print
The next step is learning how to start screen-printing. Some of the skills you might need include:- Design.
- Technology.
- Business Skills.
Design Skills
Before you can begin screen printing shirts, you'll need a design for your screen printing press or other types of printers. T-shirt designs will typically be designed using digital software, like Photoshop or Illustrator. Adobe has a ton of tutorials on how to use both. If you are using a screen printer, you'll then create the screen from the design, which we'll go into later. If you want to avoid this step, there are other types of printers. For instance, a direct-to-garment printer costs around $22,000 for the printer and the software. This equipment allows you to go straight from design to print.Technology
The next skill you need to develop is familiarity with the technology aspect of the industry. The technology falls into two categories:- Production and screen printing skills.
- Technology to support your business.
Production and Printing Skills
Your screen printing business will need to produce t-shirts, and you'll be doing it. Otherwise, you should research print-on-demand companies like Printful.
If you don't already print garments, you’ll need to learn how to operate different types of machines.
Some of the typical techniques you’ll need to learn include:
Forrest walks you through the direct to garment printing process at the 8:14 mark of the interview.
Printsome offers a good infographic on deciding what kind of technique you want to use.
The best way to learn these screen printing and heat transfer techniques is hands-on, which means purchasing your own machines or finding someone who will teach you.
Other ways to learn t-shirt printing skills, like heat transfer, are YouTube videos and manufacturer training courses. Just search "screen printing training courses" to find great resources.
Technology to support your screen printing business
I’ve seen people spend $25k to not get what they want from technology investments. It’s important to understand the technical aspect before you start. Technology that will need to be used includes:- An eCommerce platform. Read Investopedia’s review of the best platforms.
- Payment processors.
- Editing Software.
- Marketing Software.
Business Skills
Business skills cover a wide range, including accounting, pricing, shipping, and managing inventory. To educate yourself on all of these would be a lifetime of learning. We’ve provided a list of useful resources for getting more familiar with the subject matter:- Accounting – Udemy, EDX
- Pricing – Coursera, Udemy
- Shipping – Shopify, BigCommerce
- Inventory Management – TradeGecko, Unleashed
- Marketing- We'll cover this in greater detail below
Marketing
Marketing is about going where your target audience is to help them become aware of your screen printing services. Marketing can be done both online and through other channels.
Three of the largest marketing companies expect digital marketing to make up over half of all ad spend in 2021. To read more of their insights, check out this blog.
You’ll need to be familiar with the largest places where you can market your print shop:
- Facebook/Instagram -Direct-to-Consumer traffic
- Google - Search Traffic
- Amazon - Largest Retailer, great for private brands
- LinkedIn - Great for B2B sales
Step 3: Shirt Business Name
I can’t stress enough the importance of what you name your company. It will communicate what the company is all about. Keep reading for best practices.Does the name explain the business?
The Foundry Co does not clearly state what it does: screen print and embroider clothing and other products. It references metalworking both in the name and the logo. I feel like this is something that could make running a business a challenge, but the name also conveys the idea of well-made craftsmanship. The easier it is to identify what the company is focused on, the easier it is for your target audience to find it while preventing wasted spending on industries that use similar wording.Is it easy to spell?
Make sure your business name is easy to remember when using a search engine. A crazy name like Onomatopoeia Printing makes searching for your business difficult cause it’s hard to spell. The Foundry is easy to spell and remember. Because people tend to type fast, it can be helpful to register domain names for common misspellings of your company's name and forward them to your website to make it easier for customers to find you.Location
Including your state, county, or city identifies you as a local business. For example, Windy City Screen Printing would be focused on screen printing in Chicago.Branding
Does your name fit your branding? Some business owners focus on visual ideas for a logo before a name. The Foundry’s logo looks like this:
The saving grace for the logo is they include the word "print shop" in the logo. Without that, it would be hard to tell what it is. Make sure to make it easy for people to understand what your company does.
Register a .com
Find a name for which the .com domain is available. It’s the most recognizable. You can search by clicking here.Give it a go!
See how people like it. Make sure to check what happens if people shorten it. You wouldn’t want to name a business Super Crazy Athletic Tees because it would get shortened to SCAT, and you don’t want that to be associated with your brand. Check Google Trends. Read articles like Five Tools for Naming a Business. Finally, register your business name with the government.Step 4: Write a T-shirt Screen Printing Business Plan
You need a business plan to help define your vision for the screen printing company’s objectives and strategy. Its purpose is to drive the direction of your screen printers' decisions, secure financing, and develop partnerships with other businesses. Having a flexible business plan that is constantly evolving is a great approach to the process and allows for businesses to pivot when necessary. Here are some resources to help with this step.Templates
We’ve gathered templates to help you develop your business plan. Here are some of the best:- One-page business plan
- U.S. Small Business Administration (SBA) Business Guide
- State-specific templates
- Business Plan Template for a Startup Business
Resources
It gets better! Here’s some free and low-cost education on business plans:- UpFlip's blog How to Write a Business Plan
- SCORE’s free business plans and startup assistance resources
- The Complete Business Plan Course (Includes 50 Templates)
Step 5: Establish the legal structure to screen-print
You’ve created a name and business plan. It's time to establish the legal structure. For best results, hire legal representation that has experience starting a business, like an attorney, accountant, or tax specialist. They’ll help you get your business started quickly so you can start printing faster.Licenses, permits, and tax forms
Each location has different licenses, permits, or tax forms required. Use the SBA License and Permits page to identify what your custom tees company needs. Keep reading for information on different legal structures.
Sole proprietorship
A sole proprietorship is the easiest way to start a t-shirt business, but the structure doesn’t protect the owner’s assets from legal issues. That means if something goes wrong, you could lose both your printing company and your home. This structure should only be used if you can’t afford an LLC because shirt businesses have work and materials that can cause injuries to employees or customers. To start a sole proprietorship, fill out a special tax form called a Schedule C. Sole proprietors can also join the American Independent Business Alliance.Limited Liability Corporation (LLC)
An LLC is the most common business structure used in the United States because the company protects the owner’s assets. It’s similar to partnerships and corporations but can be a single-member LLC in most states. An LLC requires a document called an operating agreement. Each state has different requirements. Here’s a link to find your state’s requirements. People may register in specific states due to the cost of doing business. Delaware and Nevada are common states to file an LLC because of their business-friendly laws. Here’s a blog on the top 10 states to get an LLC.Partnerships and corporations
Partnerships and corporations are typically for massive organizations or legal firms. Unless there is a specific reason you need a partnership, it is better to do a multi-person LLC. Investopedia has good information about partnerships and corporations here.Franchise
There are several opportunities to purchase t-shirt franchises.
Franchising.com has two franchise opportunities in the United States that allow you to start a t-shirt business using a reputable company’s name and business processes.
A franchise makes it where an entrepreneur can benefit from the reputation of an established clothing printer that has already worked out many of the kinks of starting from scratch.
Step 6: Getting Ready for Customers
Your screen printing business is now an entity, but there’s more to do. The order you do the rest of the steps will depend on the resources you have, your skill sets, and the type of print company you are running. There are six areas of business you will need to focus on to get you running:- Location – Where will you be working?
- Equipment and Inventory – What will you have in stock and how will you pay for it?
- Employees – Will you have employees and how will you make sure it is a safe environment?
- Finances – How will you keep track of transactions and financial records?
- Insurance – How can you protect what you are building?
- Marketing – How will you find customers?
Step 7: Location
Finding a location will vary based on the type of screen printing business you are running. For instance, if there are certain major clients you are trying to target, being located near them can be beneficial. Otherwise, you may want to choose the location based on the wealth distribution of the area, based on the price of space, or choose a central location that is convenient for more people. When deciding to rent a space for a clothing line, consider:- How will I store equipment and inventory?
- Is there space for a home-based office?
- Will customers be coming to my location?
- How much inventory will I have?
- How much display space do I need?
- How much space is needed to store inventory?
How much space do I need for t-shirt printing equipment?
A discussion in T-shirt Forums suggests a minimum of 320 square feet for a 6 color/6 station clothing printing machine. That assumes you only have one screen printer machine. You’ll need more space for silk screen supplies, inventory, and office space. Typically you'll want about 500 square feet per occupant plus space for the tee shirt printing machine. That means at the very least you'll need about 900 square feet to make sure you have the space you need to work and store everything. To find spaces to rent in your area, contact a local commercial real estate agent. You can search for them in your area here.Step 8: Professional T-shirt Printing Machines and Product Displays
A new screen printing business requires inventory. You’ll need the shirts you’ll be selling, product display stands, registers, computers for design, and the machines for adding designs.
You’ll need machines based on the different types of t-shirts. These can range from heat presses to DTG printers to embroidery stations.
A professional t-shirt printing machine that is recommended in other blogs is the Brother DTG Printers.
Starting a Clothing Line offers a list of manufacturers by location and type of clothing. It’s a great place to start when looking for manufacturers.
Used printing machines and product displays
Screen printing equipment for shirts and product displays can often be found at huge discounts if you buy them used. You can find printers and product displays through most online markets, pawnshops, going-out-of-business sales, and other places. If you are considering buying an existing business, the equipment, the suppliers, and the client list are the most valuable aspects of the company. Learn more about valuing an existing business in our guide about buying businesses.Step 9: Employees
Forrest emphasized the importance of great employees. He told us: [su_quote]I'd rather pay people well enough that they care about the business. We average around $3,500/day with 6 employees so we can afford to pay them. Invest in them and they will perform amazingly for you.[/su_quote] He also told us not to make the same mistakes he did. Screen printers tend to be creative. They have a different mindset than accountants. He said that every creative should have a great bookkeeper. [su_quote]At first you might balk at the costs of hiring a great bookkeeper, but they are worth it. I wish I'd hired one much earlier.[/su_quote] When you hire employees, you'll need to meet some obligations. Let's discuss common requirements.Tax filing and withholding
Federal and state tax filing requirements apply to new employers. You must keep records of employment taxes for at least four years, including special forms and accounting for state taxes. Don’t worry! We’ve got you covered! Check out the IRS guide for employers here.Federal employment and labor law posters
All employers must display Workplace Posters, which you can download from the website. Other requirements include:- Employment Eligibility Verification (Form I-9)
- State’s New Hire Program
- Worker’s Compensation Insurance
- Disability Insurance—varies by states
- Occupational Safety and Health Administration (OSHA)
Job Posting
Hiring people requires posting “now hiring” signs and posting on prominent job boards. Some places you can start posting job requirements are:
Interviews
Having a prepared list of questions for interviews can make hiring the right people easier. Indeed offers a variety of resources to help you make better hiring decisions. Read their guide: How to hire your first employee. Given this is a skilled trade, I'd recommend having them do a physical test to identify silk screen supplies and show you how to do screen printing. While you can teach someone how to operate a clothes printing machine, it's easier if they know how.Compensation
Employees are typically a company’s biggest expense. There are four common pay structures in business:- Salary
- Hourly
- Commission
- Hybrid
Salary
Flat weekly/monthly rate based on a person working a specific number of hours. This is typically reserved for owners, managers, and some admin roles. You might want to assign this to yourself for budgeting purposes.Hourly
This pay structure just tracks the hours an employee works and pays them a set hourly rate. This pay structure is solely based on time, not performance. In Portland, Sanford says, “I pay my employees $14 to $16 per hour.”Commission
Typically used in sales to give employees a percentage of revenue. It is a strictly performance-based compensation model.Hybrid Models
Hybrid models combine two pay structures — for instance, hourly and commission—to compensate for time and performance. The hourly rate will typically be lower than an hourly rate without commission, but the commission should make it where high-performing employees make more than they would without commission. These structures also help reduce the variability of pay from week to week. Paying employees an hourly wage works for most screenprinting businesses, but depending on your business structure, a commission or hybrid payment model might make sense. The article, “How to Create a Pay Structure That Promotes Team and Company Growth” offers some insights into thinking about pay structure. Also check out payscale.com for estimates on how much to pay for screen printers in your area.Step 10: Financial Management
A crucial portion of successfully starting a small business is managing the finances. Here are some tips and resources to help you get started with the financial management of your print shop.
Budget! Budget! Budget!
A budget is the most important tool you can use in business. Without it, your screen printing business might not make it through the first few years. Some of the best free budgeting software includes:- dsBudget – open-source software that requires some development experience
- Quickbooks – used by millions to make their accounting easy by setting up rules, directly connecting with their bank(s), and more.
- Xero – I have some experience with them. I was introduced to them through an Australian client, and people love them. It allows you to automate most of your processes but is meant to be set up by an accountant and software developer so that the platform works specifically based on your location(s) tax needs.
Consider the many funding options
While Forrest started Foundry with a $10k loan from family, other printers we have talked to have started their company with less than $1,000. In our interview with Marcus from Portland Gear, Marcus suggests beginners use the following:- Shopify
- A print-on-demand company.
- Social media marketing of less than $500/mo.
- Personal funds
- A loan from family or friends
- Funds from a business partner(s)
- Government programs
- Crowdfunding
- Credit cards
- Home equity loan
- Rollover for business startups (ROBS)
Develop a pricing structure
Screen printing prices vary, so research the market in your area to come up with a good pricing structure. Forrest told us: [su_quote]I typically mark up the cost of the shirts 100% and don't allow people to bring in their shirts to print.[/su_quote]Step 11: Sales Tax and Insurance
Sales Taxes
All but five states and some cities (or counties) require sales tax. You can find a guide on applying for sales tax on TaxJar. After you register to pay sales taxes, you will need to keep track of the sales to pay them according to state laws. I would highly recommend speaking with an accountant that specializes in taxes to help you comply with your business’s unique needs.Insurance
You’ll need unemployment insurance and worker’s compensation if you have employees. You may also want a general liability policy to protect against unforeseen events that could cause substantial losses.
Unemployment Insurance
Unemployment insurance protects employees from entirely losing income when they lose their jobs. It is paid for on both the federal and state level. Federal unemployment insurance is driven by a 6% tax on the first $7,000 of each employee’s income, a total of $420/year per employee. Your state taxes can reduce the federal portion down to $42/year per employee, but each state has different requirements. You can find a full list of agencies that deal with UI on nolo.com.Workers Compensation
Workers Compensation is for when people are injured on the job. There are both federal and state requirements. You can find both federal and state requirements at dol.gov. The policies protect against excessive costs when an employee is injured through acceptable business practices.General Liability Policy
A general liability policy is not required, but it is highly advised if people other than employees will be at your location. It protects against lawsuits. Contact an insurance agent to get a quote.Step 12: Marketing
You’re ready to sell shirts. You have the location, equipment, inventory, and employees, but no clients! How are you going to let people know you have a press, ink, and are ready to print quality tees? Marketing is crucial! Forrest stressed the importance of asking to show all your work on social media. [su_quote]During the early stages of the business, getting clients can be hard. Make sure to ask if you can share the work you do. It will often bring in new people. The other business will typically share it as well to help you gain exposure.[/su_quote] That tip can save money during the start-up phase. Other suggestions he had are:- Build relationships. Networking is what makes a business succeed. It pays off.
- Continually focus on SEO. Start by familiarizing yourself with Google requirements.
- Check the customers’ previous print jobs to give you ideas of how to sell more shirts.
- Follow up! It makes a difference.
- Try to upsell them. If you love their artwork, suggest putting it on stickers too.
- Use analytics.
- Don't forget business cards.
Influencers
One of the best ways to learn what works in marketing and business is to follow others who rock their industries. Some of the top influencers to follow are:
- Gary V – He turned a wine company into serial entrepreneurship with a focus on marketing. If you struggle with marketing, check out what he does. He's awesome!
- Screen Printing Blogs – a list of 40 blogs focused on t-shirt printing.
- SEO Influencers – Randy Fishkin, Danny Sullivan, and Neil Patel
Is it hard to start a screen-printing business?
Forrest told us: [su_quote]You want to use automation. If you screen print manually for years, you'll get worn out fast. You can make great money, but it's hard work.[/su_quote] If screen printing T-shirts sounds interesting to you, ask yourself the following questions:- Do I have the required screen printing start-up costs?
- Am I comfortable operating a screen printing machine?
- Will I be comfortable speaking to clients?
- Where will I buy my screen printing supplies?
- Why am I starting a clothing business?
- Do I need employees or advice?
- What will I need to feel successful?
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