A growing number of people are purchasing yard signs, also known as yard cards, for birthdays, anniversaries, and other events. An estimated $18 million is spent on the franchise sign and banner market in the US. As a means of self-expression while confined to their homes, yard signs became increasingly popular as a result of the pandemic. You might make money by starting a yard sign business, which can be started for not much money.
There are difficulties in starting a yard sign business, and to be successful you need to be ready and knowledgeable. This step-by-step guide has all the information and insight you need to begin your entrepreneurial journey and start brightening up yards everywhere!
Step 1: Find Out if this is the Right Business for You?
Positives Vs Negatives
| Low Initial Investment: A beginning kit for producing signs costs around $2,000! Get inventive! – Enjoy yourself when designing. Rental of signs is an alternative in addition to buying them in terms of sales | Market saturation with regards to online sign printing businesses creates competition. Marketing expenditures – To attract customers, marketing funds will be needed. |
Industry Trends
- Industry size and historical growth – According to market researcher IBISWorld, the US sign and banner franchise industry will be worth $18 million in 2021.
- Forecast for growth: According to industry researcher Mordor Intelligence, the printed signage market will rise by more than $1 billion by 2026 from its estimated global value of over $40 billion in 2020.[2]
- IBISWorld reports that there are 21 sign and banner manufacturing franchises in the US.
- Employed: There are 144 persons working in the sector.
Cost of Starting Yard Sign Business
Starting a yard sign business might cost anywhere between $4,000 and $9,000. Your initial package for producing signs and a website setup are the two biggest expenses.
Is Yard Sign Business Profitable?
A yard sign typically costs $100 to rent for one day, and an additional $40 to $50 per day after that. Since signs are frequently used for one-time events, most people prefer to rent them rather than own them. You should aim for an 80% profit margin on rentals.
You may rent 10 signs every week in your first year or two, earning more than $50,000 a year. If the assumed 80% margin is accurate, this would result in a profit of nearly $40,000. Sales of up to 25 signs each week may be possible as your brand becomes more well-known. You would earn more than $100,000 with a projected annual income of $130,000.
Entry Barriers
- Due to the fierce competition, you’ll need to invest in marketing to attract clients.
- To make yours stand out, you’ll need to create original signs.
Step 2: Create a Strategy
Identify a Gap
Examine the products, costs, and customer feedback of local yard sign companies by conducting online research. Finding a market gap to fill is what you’re after. Perhaps a business that sells social messaging signage is lacking from the local market, for example.
Your word-of-mouth advertising may gain momentum as a result, drawing customers in right immediately.
Solutions
Choosing the types of signs to create, the quantity you want to have on hand, and whether you want to sell, rent, or do both of these things are all important decisions. Depending on your preferences, you might select to focus on a certain type of sign or provide a variety, such as:
- birthday cards
- congratulatory signs
- commemorative markers
- Social-message signs
- Vacation banners
- Greeting cards
- individual signs
Pricing
A day’s rental for a yard sign costs about $100, and each subsequent day costs $40 to $50. A minimum profit margin of 80% is what you should aim for.
The Step By Step Profit Margin Calculator can be used to calculate your markup and final price point once you have an understanding of your costs. Keep in mind that the launch price may need to be adjusted if market conditions justify it.
Target Market
Your target market will depend on the type of signs you choose to create, but it will often be large. Your best bet will be homeowners, who tend to be more established people. You can discover them on Facebook or LinkedIn.
Location
You can prefer to operate your company from home in the beginning to save money. However, when your company expands and your sign production output increases, you might find that you need to hire personnel for a variety of positions and/or rent office space that includes a sign production area. Utilize websites like Instant Offices, Crexi, and Craigslist to find rental opportunities for commercial space in your neighborhood.
You might want to abide by these general guidelines while selecting a commercial space:
- central site that is reachable via public transportation
- large, well-ventilated, and well-lit
- As your firm expands, you can extend your flexible lease.
- Unrequited big repairs or renovations, ready to use space
Step 3: Write a Business Plan
Every company requires a plan. This will serve as a manual to help you through the launch process for your firm while staying focused on your major objectives. An investor’s and partner’s ability to comprehend your company and its goals is also enhanced by a business plan:
- A concise synopsis of the full business strategy should be written as the executive summary.
- Overview of the business, including its vision, mission, ownership, and goals.
- Products and Services: Clearly describe what you have to offer.
- Market Analysis: Conduct a SWOT analysis and evaluate market trends, such as variances in demand and development potential.
- Competitive Analysis: Evaluate your primary rivals’ strengths and shortcomings while compiling a list of your services’ benefits.
- Sales and marketing: Consider the unique selling propositions (USPs) of your businesses and create sales, marketing, and promotional plans.
- Overview of the management team, including a description of each member’s responsibilities and educational background, as well as a corporate organizational chart.
- Operations Plan: Your company’s operations plan covers logistics, office location, essential assets, and equipment.
- Financial Plan: Three years of financial planning, including startup expenses, break-even analysis, profit and loss projections, cash flow, and a balance sheet.
- Include any extra financial or business-related documents in the appendix.
Step 4: Create a Marketing Plan
Even though some of your clients will be infrequent web users, you should nonetheless spend money on digital marketing! It’s crucial for new firms to spread the word because it will increase brand and client recognition.
Establish links between your social media accounts and your website once it is live. The ability to create interesting posts that promote your items on social media makes it an excellent tool for business promotion:
- Facebook is a fantastic tool for paid advertising since it enables you to target particular demographics, such men under 50 in the Cleveland area.
- Facebook-like advantages with a different audience on Instagram.
- Website: SEO will assist in advancing the position of your website higher in pertinent search results, which is essential for boosting sales. On your website, be sure to maximize the calls to action. Test out different text, color, size, and positioning options for calls to action like “Rent Now.” As a result, purchases may rise significantly.
- Google and Yelp: Listing on Google My Business and Yelp might be essential for businesses that depend on local clients to increase visibility and attract new clients.
Kickstart Marketing
To raise awareness of your services and establish your brand, make use of your website, social media presence, and in-person activities. Below are a few ideas.
- A video about your product should be posted. It might succeed if you use comedy.
- Offer only a single copy of your goods in a limited edition.
- Send regular emails to consumers and prospects as part of your email marketing or newsletter strategy. Individualize them.
- Blog creation: Create a blog and post frequently. Share on many sites while varying your material.
- Choose platforms that will allow you to reach your target market and run targeted social media marketing.
- Use Google AdWords for pay-per-click advertising to appear in search results more quickly. Initial keyword research is required.
- Publish infographics and include them into your material after creating them.