The pandemic forced a lot of businesses to close due to the lack of demand. Despite the situation, there was a surge in new business applications at the start of 2021. It shows that people are optimistic about the situation following the increase in vaccines administered by the authorities and the release of stimulus checks by the federal government.
While you have the option of following the pack that focused mainly on the retail and food sector, you can also use any skills you have to start a business. For instance, if you have graphic design skills and experience, you can set up your own company instead of working for someone else.
Here are the things you should consider if you’re planning to start a graphic design business.
Initial Expenses for the Business
The first thing you need to consider is the initial expenses you have for the business. Most graphic design businesses start with the business owner being the only employee. In this situation, you wouldn’t have to worry about renting space for the office since you’ll likely work at home. But you do have some things to buy, including the graphic design software and computer hardware for the business.
Software Requirements
First off, you might want to get the latest computer design programs in the market. These programs allow you to work on the projects of your clients with relative ease. While there are several free-to-use programs in the market, they may lack the features you can find in premium design programs. In this case, you may want to get the design programs from Adobe, including Photoshop, InDesign, and Illustrator, among others.
Hardware Requirements
In addition to the software, you should also look for a suitable computer that is powerful enough to run the design software you acquired. These programs have specific requirements for them to run properly. While the specifications of many computers can run the software, you may need something more powerful if you want to multi-task or open more than one window in your computer.
In this situation, you might want to consider building your own PC instead of buying a pre-assembled computer or laptop. This will allow you to include everything you need to run the design programs and other software on your computer. It will also allow you to increase your productivity and efficiency in your work.
Operating Expenses of the Business
Aside from the initial expenses, you should also consider the operating expenses of the business. Since you’ll likely work from home, you do not need to work about rent and utility expenses. But you need to consider the monthly subscription costs of the graphic design software. You can opt to subscribe to individual apps, or you can subscribe to all of them.
When you go for individual subscriptions, you may end up paying more if each time you need to use an app that you haven’t included in your subscription. So, it may be advisable to initially go for individual subscriptions before getting all of them as your business grows. In the end, your revenue should be more than enough to pay for the monthly subscription to these apps.
Target Market
You should also consider your target market so you’ll know where to promote your services. The majority of the market of graphic design businesses are advertising agencies. They provide the graphics design requirements of these companies.
You can also consider working with retailers looking for someone to design their logo and packaging. With the increasing number of retailers opening stores these days, you will likely find a retailer or two that will get your services. Other markets you can consider are non-profit organizations, restaurants, and other businesses.
Legal Documents
Another thing you need to do is to work on the legal documents of the business. By now, you should already have an idea about the name of your business. If you’re forming the business without a partner, you have the option of forming a sole proprietorship or a limited liability corporation (LLC).
If you opt for a sole proprietorship, you can look forward to simple tax filings, simple paperwork, and tax benefits as a self-employed individual. But you may find it challenging to establish business credit, and you’ll have no liability protection if you incur commercial debt.
On the other hand, an LLC gives you liability protection against commercial debt, and you have better market credibility, which allows you to access equity and debt financing. But an LLC also means more paperwork for you.
A graphic design business is a good option if you have the skills and knowledge in the industry, which is in demand at the moment.
Meta title: How to Set Up a Graphic Design Business
meta desc: Starting a business has become appealing as more people received vaccine doses from the authorities. Know the things to consider when setting up a graphic design business.
