Starting a Successful Photocopy Business or Xerox Business

If you’re ever in the vicinity of a school or a government services institution, there is a high likelihood that you’ll see businesses offering photocopy or xerox services. This is because people who go to these institutions are likely to need photocopy or xerox services.

For example, government services institution always demand photocopied or xeroxed versions of your original personal documents. Schools too always demand their students to photocopy or xerox learning materials.

For example, our shop is near a school and students come to us to have their school records photocopied and xeroxed. There isn’t a day when someone avails of our photocopy or xerox services.

But for the most part, you need to complement your photocopy or xerox business with other business offerings in order to earn a full-time income.

Here’s a guide to successfully starting a photocopy or xerox business:

Note: This information was taken from my actual experience in offering photocopy or xerox services in our shop and from various small business sources online.

1. Plan Your Photocopy or Xerox Business
1.1 It’s All About the Location
1.2 Determine What Services You Would Offer
1.3 Determine Your Costs
1.3.1 Rent
1.3.2 Salaries
1.3.3 Utilities
1.3.4 Photocopy Paper and Printer Ink
1.3.5 Printer Repairs

2. Get Your Business Documents In Order
2.1 Register Your Photocopy or Xerox Business
2.2 Get Capital for Your Photocopy or Xerox Business
2.3 Get Your Taxes in Order

3. Scale Up Your Photocopy or Xerox Business
3.1 Offer Retail Services
3.2 Offer Other Paper Processing Services
3.3 Open More Photocopy or Xerox Shops
3.4 Franchise Your Photocopy or Xerox Shop

Final Words

The Details:

1. Plan Your Photocopy or Xerox Business

You should first determine if the profit you would earn from your photocopy or xerox services is worth all your effort. Not planning properly can make you lose money instead of earning money:

1.1 It’s All About the Location:

Printers are very affordable these days and almost everyone can afford to photocopy or xerox their documents using their own printer. However, not many buy their own printer because a lot of people are not heavy users of printers.

They reckon that it’s more convenient for them to just pay for photocopy or xerox services. This is because printer inks are expensive and unless you’re mass photocopying or xeroxing documents, you’re better off financially just paying for photocopy or xerox services.

Also, a lot of people already expect that there would be businesses that offer photocopy or xerox services in places where documents are processed like schools and government institutions.

That’s why you should consider the location of your photocopy or xerox services business. You shouldn’t look for high foot traffic areas, you should instead look for high document traffic areas when considering your shop’s location.

For example, malls and entertainment places have a lot of foot traffic, but no one there is having their documents photocopied or xeroxed.

Examples of places/institutions with high document traffic are schools and government institutions like vehicle registries, social services, business registrations, tax payments, and so on.

1.2 Determine What Services You Would Offer:

You should also plan the photocopy or xerox services that you would offer so you can streamline your business for the most profit.

For example, government institutions mostly only require black and white copies of original documents. You can tailor your workflow and raw materials such that you only print out black and white documents. Less hassle but more profit for you.

If you plan to offer photocopy or xerox services near schools, be aware that students would both require black and white and colored photocopies of their school documents. There are even students that would require you to photocopy their documents from online sources.

Also, if you offer photocopy or Xerox services near schools, be aware that students would also likely demand that you also offer binding, lamination and other services related to school documents.

1.3 Determine Your Costs:

You should be able to offer your photocopy or xerox service at a competitive price without losing money. It’s no use starting a business only to lose money in the end. Here are a few costs you should consider:

1.3.1 Rent: This is probably your biggest cost. Consider also that rents increase on a regular basis.

1.3.2 Salaries: If you have employees, this would also be a big cost. Consider also that you have to regularly increase your employees’ salaries. You also need to pay their social security costs, bonuses, medical fees, and so on.

1.3.3 Utilities: You have to pay electricity and water bills. You may also have to pay for internet connection.

1.3.4 Photocopy Paper and Printer Ink: The more you photocopy, the more photocopy paper and ink you use. Consider also that there would be printing errors. So allocate also for wastage costs.

1.3.5 Printer Repairs: Your printer would break down at some point. Your repair bill would depend on the damage of your printer. There would even be situations where you have to replace your printer.

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2. Get Your Business Documents In Order

Depending on the size of your photocopy or xerox service business, you might need to register it as a business entitty:

2.1 Register Your Photocopy or Xerox Business:

Register your business. Choose a business name that’s not already taken. Usually, photocopy shops can be registered as sole proprietorships which simplifies your business structure.

If you are just adding your photocopy services business to a business you are already in, like a retail business, there is no further need to register your photocopy business.

But if your photocopy service business also integrates other services related to paper processing like binding and laminating, you need to register not only your photocopying services business but your entire paper processing business.

But for the most part, most photocopy services business only offer photocopying services as a small part of their business and they register their main business only.

2.2 Get Capital for Your Xerox Business:

You can use your own savings or borrow to finance your photocopy or xerox services business. This is because the photocopy or xerox business doesn’t require a lot of capital to setup.

You can even use secondhand or refurbished photocopy equipment to start your photocopy or xerox service business. There are many online shops that sell secondhand or refurbished photocopy equipments.

You can even buy on a loan basis photocopy paper and printer ink. However, this largely depends on your negotiation skills with your suppliers.

But one thing is for sure, you cannot start a photocopy or xerox service business if you have no money. Secure money first before even planning to start a photocopy or xerox business.

2.3 Get Your Taxes in Order:

Once your photocopy or Xerox service business is up and running, you would eventually have to pay taxes.

But even before you start your photocopy service business, you should determine first how much tax you are likely to pay. Depending on the government jurisdiction you are in, your taxes can eat up a large part of your profits.

Also, improperly lodging your taxes can land you in deep trouble. You may be financially penalized for doing so whether you did it on purpose or by accident.

But not everything is bad when it comes to taxes. There are governments that actually assist you financially if ever you are losing financially in business. That’s why it’s important to know government assistance and taxes when it comes to running a business.

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3. Scale Up Your Photocopy or Xerox Business

There would be instances where your photocopy or xerox service business would experience downtimes. Any moment you’re not making money from your business is bad. That’s why you should scale up your business service offerings to make up for these downtimes.

Some of these could be:

3.1 Offer Retail Services:

While waiting for customers to avail of your photocopy or xerox services, you may want to sell retail products to your customers.

For example, you can sell stationaries, paper, pens and other school and office supplies to your customers. This especially applies if you are located in the school district where students have a constant need for school supplies.

You can offer as many varied retail products as you can. Together with your photocopy or xerox business, you can retail food like snacks, clothes, toys, and so on.

3.2 Offer Other Paper Processing Services:

You can offer book binding and lamination services. This especially applies if you are in the school district. Students have a constant need for such paper processing services.

3.3 Open More Photocopy or Xerox Shops:

If you’re making a lot of money with your photocopy or xerox services business, you might consider expanding into a new territory. For example, you may branch out to another school or government institution location.

3.4 Franchise Your Photocopy or Xerox Shop:

If the brand of your photocopy or xerox service business becomes popular, you can consider franchising your business. Franchising is a good way of expanding your business without needing much capital.

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Final Words

A photocopy or xerox service business is a good business to have in high document areas such as near school and government institutions.

In fact, location is one of the greatest success factors in a photocopy or xerox service business. This is because there are just so many locations were there is a constant demand for photocopy or xerox services.

Usually, photocopy or xerox services come in tandem with retail services. It is common to see photocopy or xerox services also selling retail products besides offering their photocopy services.

But don’t think that there is no growth in a photocopy or xerox service business. There are now franchises that offer complete printing solutions and not just photocopy or xerox services. You can start with one shop and actually end up with a franchising business.

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