Studies indicate that good signage can significantly boost sales. Specifically, monument signs can increase sales by 9.3%, pole signs by 15.6%, and larger storefront signs by 7.7%. To effectively market a sign shop, eye-catching graphics are essential.
The basic equipment necessary to start a sign business includes:
- Software
- Plotter
- Vinyl cutter
- Materials
A personal computer is essential for designing and producing signs. It’s often better to specialize in specific areas of sign making such as vinyl lettering or digital signage rather than trying to cover every type.
A sign business can indeed be profitable, with profit margins ranging between 50-95%. To succeed, it’s crucial to:
- Source durable, long-lasting materials
- Train staff in efficient production techniques
Cost-effective signs often utilize vinyl decals, digital printing, corrugated plastic, and foam board. For those interested in making signs themselves, DIY options involve paint, stencils, and pre-made letters.
The sign industry is experiencing consistent growth. With a revenue of $22 billion in 2018 and a global market of $40 billion in 2020, the sector is expected to see a 0.19% Compound Annual Growth Rate (CAGR) by 2026.
Operating a sign business comes with low overhead costs. Many businesses operate from a home office equipped with a computer, printer, and necessary software. Product diversity and flexibility in scheduling can offer competitive advantages. Sign businesses typically have high profit margins, often selling signs for $40-50 that cost about $3 in materials.
Types of Signs
The common types of signs include:
- Identification
- Directional
- Informational
- Regulatory