I am interested in starting a business in Promotional items ranging from T-Shirts, cups, pens, paper, bags, etc. All items being customized to suit the customers needs and requests. My business would start off small from home and depending on the sales volume I would eventually move into a small location suitable to staff a small group with the necessary printing equipment. There would be no store inventory and I would start off purchasing from a wholesaler and subcontracting the printing until I have enough revenue to lease equipment, office space and hire additional staff.
Long run costs of this type of business would include inventory, Internet support for website development and maintenance, Office location and advertising; they are all variable costs that depend on the success of the existing performance. Short run costs would be a computer in which the current success of the business relies for orders and items available; which would be the one fixed costs while all other related costs are variable. Fixed costs would include insurance and telephone.
A similar business in which I would like to see my company eventually compete with would be The Bargains Group. They are an online promotional supply company that started it's business 17 years ago from home. The owner (Mom and wife) started the business from home and it eventually expanded to operating in it's own office space and 20 employees. The Bargains Group is now a multimillion dollar company that started off with a $1000.00 investment by the owner.
Long run costs associated with her success were inventory, office space and wages. Short run costs related to the start up of the company would have been the requirement of computer. Fixed costs included telephone and advertising.
http://www.bargainsgroup.com/Products1.aspx
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