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Profit from knowledge
With just 20-something years to retirement and zero faith in the government's ability to look after even a tiny percentage of my OAP costs I've decided it's time to radically improve my profits. Part of the process involves some business studies and some of the facts I've discovered are frightening.
For example, look at UK companies' average earnings per employee across businesses based on selling either labour, products, services or knowledge and the differences are vast. The lower end of labour-based businesses are averaging £17,000 while the higher end of knowledge industries are looking at over £120,000. That difference is just too large to ignore.
Fascinatingly, simple, automated, digital printing machines, designed to demystify the printing process are clearly pushing printing companies down the average earnings scale. At its pinnacle, screen printing can be seen as a knowledge-based process. De-skill the job and it quickly becomes a service. Add some automation and the business drops to simply providing a printed product. Commoditise the product, which is happening, and printers simply become labourers, moving ink and paper around.
I have to say, unless I could guarantee some serious print volumes or sales of high value associated products and services, I'd carefully explore the opportunities of niche, technology-driven screen printing sectors before launching a new printing company.
The secrets are simple: find cash rich customers; listen to what they want; develop innovative, value added products and services; and deliver on your promises. I'd chuckle at this last sentence if it wasn't exactly what lies ahead for my business. Jump on and share the ride.
Jon Barrett
Editor
