Desktop Publisher

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Vital Information
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Start-up Investment

Low - $700.00 (If computer and printer is financed). Home-based
operation.

High - $4,000 - $10,000 Buy equipment and set up office.
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Break - even time - 90 days to 6 months
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Estimate of Annual Revenue and Profit

Revenue $20,000 - $250,000
Profit (Pre-tax) $16,000 - $110,00
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An Exploding Market

According to recent estimates by business consulting firms this
market has grown from roughly 3 million in annual sales in 1985
to almost 3 billion in 1991, and there is no end in sight. One
of the real opportunities and challenges of this business is
the fact that there are still millions of clients out there that
as yet do not even know that they need the services of a dekstop
publishing service.

Desktop publishers use computers, laser printers and sophisticated
software program in the preparation of high quality graphic
material. The price of the equipment used is continuing to come
down dramatically, therefore the start-up estimates may be high.
The quality of graphic material which can be produced in this
manner is so high that only a professional can detect the
difference between material designed by desktop publishing and
material which has been typeset. The latter has a somewhat
higher resolution which is not noticeable to the naked eye. Much
of the material you see in newspapers such as USA Today and
magazines was prepared through desktop publishing.

Desktop publishers prepare graphic materials such as: brochures,
flyers, full page advertisements, newsletters, books, proposals,
forms and much more. Some desktop publishers will also perform
word processing services for their clients. While some desktop
publishers will prepare almost any kind of graphic material,
many will specialize in one or more, such as newsletters.

While prior computer knowledge is a plus anyone who has a desire
to learn the operation of a computer can acquire the ability to
become a desktop publisher.

Quality laser printers which a few years ago sold for $4,000 to
$7,000 can now be bought for under $1,000. The laser printer is
the key element in making desktop publishing possible. The laser
in the printer is activated to "paint" a picture of the computer
file which was created through desktop publishing software. As
such it acts as a photocopier, by scanning back and forth at high
speeds while the drum containing the toner rotates back and forth.
The toner is similar to that used in photocopiers. It is attracted
to, or repelled from the imaged or 'un-imaged' areas of the drum.
As it passes the rotating drum it is transferred onto a piece of
paper. This is called "camera-ready" material. It is taken to a
printer to be reproduced.

To truly understand the continuing magnitude of this field, it is
important to realize that until the invention of the laser printer,
graphic material was either produced by graphic designers or
typesetters in printing businesses. Since graphic designers were,
and still are quire expensive their services were generally only
available to the medium-sized and larger companies. The typesetter,
on the other hand, who rarely had artistic ability prepared art-
work for those who could afford the graphic designer. This
material generally looked second class. Desktop publishing for the
first time has made it possible for any size company to present
itself with graphic material which looks every bit as good as the
material that huge corporation use to sell their products and
services.

Who Are The Customers And How To Find Them

Almost any size company and organization is a potential customer.
Many of the large companies have down-sized their P.R. and
Advertising Departments during this recession. And medium-sized
and small companies rarely have the equipment or personnel to
perform this very specialized work in-house.

Potential customers are, for example: restaurants which require
menu design, a painter who needs flyer to pass out, a legal firm
which requires hundreds of different forms, a hotel which needs
brochures, a writer who needs a cover design for his book, and we
could add hundreds of other situations to this list.

You should join one or more Chambers of Commerce in your community
and surrounding communities and other organizations which allow you
to meet potential customers. Advertising is both daily newspapers -
business section, or in the classified section under "business
Services" will be very worthwhile. As soon as feasible an ad in the
Yellow Pages will give your business additional visibility.
Advertising in other business related publications in your
community will also be beneficial. Direct mail directed to
businesses and organizations will also be highly beneficial in most
businesses, once you have found your first few customers, especially
the "first big one" it will be easier to find other clients. Word
of mouth of a satisfied client will go a long way and it will be
your most effective advertising.

The quality and eye-appeal of your brochure and other sales material
will be of vital importance. After all you are a desktop publisher
and therefore your brochure should very professional looking.
Clients will also want to see some work ("your portfolio") which
you have prepared for clients.

One of the best leads for new business will be the never ending
flow of junk mail which you will receive from both local and out-of-
town companies. Much of this material will not be very professional
in appearance. You can gently and diplomatically suggest to a
potential client how much more effective their sales campaign will
be with professional looking material.. Since many potential graphic
material is too expensive for their budget they will be pleasantly
surprised when they learn from you that it can be prepared for $15
to $30 per page.

Operating Your Business

Most anyone without prior computer background, unless they are young
enough to have had computer instructions in high school, will be
initiated by computers. Yet slowly but surely computers are becoming
as much a part of our lives as automobiles. And if you consider how
little most people know about the operation of the automobile engine,
but how well they can drive you will realize how easy it is to learn
the operation of a computer. While books, operating manuals and even
classroom instructions will be most helpful, the most effective way
to learn is through practice. Basic knowledge of most software
programs, including desktop publishing software can be acquired in
about 20 hours. To become truly proficient will take about 2-3 months.

This business lends itself well to be operated from your home. Since
you will be receiving clients it is important that your home-office
be presentable and well kept. As you business grows you can move to
larger quarters in an office.

Your initial expenses in addition to the equipment itself will pertain
to basic office supplies, the preparation and reproduction of your
sales material, advertising, postage and miscellaneous expenses. If at
all possible get a second telephone line just for your office so you
can insure it will always be answered professionally. An answering
machine or telephone answering service will communicate with your
clients in your absence.

Owners of new businesses will spend the majority of their time, during
the start-up phase on finding new business. Your new clients will be
looking for quality graphic material which is prepared in a relatively
short time span (generally from 2 to several days depending on the
project - larger projects may take substantially more time), at a
reasonable price. The cost of your services are determined by what
your competition charges which is pretty well determined by general
cost of living expenses in your community.

It will be a good idea if you do some snooping around and visit some
of your competitors as a "potential client". You will find their
advertisements in local business publications and the Yellow Pages.

Since you are selling a service most of your revenue will go to the
bottom - line and will become profit to you. Operating expenses will
be relatively small for general office supplies, paper, laser printer
toner, etc. Of course, you may have to finance the purchase of your
equipment over a period of time. If your credit is good, financing
will be relatively easy to obtain through most computer stores. Since
new computer equipment is becoming outdated at an ever increasing
speed it is best to buy equipment on the lower end of the price range
even if your budget can stand the higher outlay of capital.

Small businesses and organizations will be requesting credit
extension. Your care in granting this privilege is important.
Nothing is more aggravating then selling a service "your time" and
not get paid. It is not at all unreasonable to request payment up
front with new and small business clients. Once you have granted
credit to a business or organizations set down strict rules and stick
to them. In general there rarely is justification to carry any client
beyond 60 days.

As you expand and require assistance to carry the work-load consider
hiring "outside contractors" instead of employees. There are many
individuals who have the knowledge and equipment to free-lance with
desktop publishing. You will be saving the various benefits which
are required to pay to employees and which average about 20 - 30% of
salary.

Resources

Publications: Publish, P.C. World, Mac World are the best known
publication. New ones are coming on the market on an on going basis.

Organizations:

Most of the major desktop publishing software programs sponsor user
clubs/organizations throughout the country, such as Ventura Publishing.

Education:

Almost all colleges and university have an extensive curriculm in
various computer instructions including desktop publishing. There are
also various private instructions available thorough seminars, etc.,
however, these tend to be quite expensive.

For additional information helpful in setting up your new business,
information about licenses, permits, the legal structure of your
business, taxes, insurance and much more refer to the Business
Start-Up Fact Finder Manual