How To Grow Your Print Company Milwaukee WI

Do you know how to grow your printing business? Growth is measured in terms of revenue, number of employees, and number of locations. It seems like a simple concept. However, if that were true, then why are so many small printers in business for multiple generations? The fact is, there are many small printers out there beating each other up in an attempt to gain a competitive advantage with the common goal of growing.

Ins and Outs

When it comes to growing a print company, you have two options. The old-fashioned way is to grow organically—from within the nucleus of your firm. It requires hard work and perseverance to land new business on a consistent and recurring basis. That can take many years of knock down, smash mouth marketing campaigns and selling initiatives to attract the attention of new customers.

Retention rates must be strong and quality control standards play a role. Repeat business is the core base any growing businesses will build on. Customer satisfaction is important, and it stems from top-notch CSRs. Sales people are the force behind revenue growth. You need trustworthy candidates with knowledge of the products and services your company offers. There needs to be incentives to achieve growth in both gross dollars and value-added. The leaders must be challenged by continuously replenishing underperformers with new blood.

Some companies have complimented sales efforts by going online to tap beyond local or regional markets. These are essentially virtual sales forces that work 24/7 and have no physical or mental limitations. When successful, online sales can yield exponential annual growth. The down side of growing the business organically is that it can take years—even decades—depending upon demographics and other factors. Some niche printers buck this trend and grow faster than your run-of-the-mill general commercial sheetfed printer.

A quicker way to grow is by acquisition or merger. There are always opportunities to buy from the retirement-minded and financially-distressed. In today's marketplace, this may be necessary to keep up with the big boys, who are reshaping the way printers do business.

The by-product of any acquisition or merger is growth by size. Revenues, employee counts, and facilities can double overnight. The true effect on the bottom line is dependent on many facets, such as eliminating duplication in costs and equipment, cross-selling opportunities, improving workflow, minimizing customer crossover, and streamlining duties and responsibilities.

However, there are challenges to this approach. Absorbing the cost of an acquisition is part of the growing pains. A merger can be a more cost-friendly way to accomplish similar results as an acquisition. Still, owner personalities can clash and egos can run amuck.

The initiatives behind a merger are to grow the business, increase the depth of management by sharing resources, be better equipped to weather economic storms, and provide an exit strategy.

Many private-equity firms and strategic buyers pursue printers in the middle market with revenues between $25 million and $100 million. When a printing company grows to this size, it achieves a certain critical mass, where it benefits from strengthened purchasing power and a newly found ability to exploit cutting-edge technology.

In the end, growing your company should build value. Business and strategic planning are critical steps, and play a crucial role in long-term growth.

MargolisBecker LLC is a financial and management advisory firm specializing in the graphic arts industry. The company has prepared the PIA Ratios since 1960. If you have comments or questions, you can reach Stuart Margolis or Brian Enverso at (610) 667-4310, or smargolis@margolisbecker.com or benverso@margolisbecker.com.