XEROX CENTRE WITH WIRE BINDING AND

LAMINATION

INTRODUCTION

A printing and photocopying shop is not a usual business idea which one
considers while thinking of starting a business. But, one cannot deny the fact that
these are everywhere; schools, colleges, offices etc.

Despite the advancement of technology, the need for Xerox and printing still
exists. A photocopy & printing shop is a small business idea with low capital
investment.  Local copy and print shops are equipped to handle anything from
single-page printing to large-volume jobs using several types of media.

It is a lucrative business idea which can be started by students also. If you

are interested in venturing into a printing & photocopy business, consider the
below points.

PHOTOCOPYING

A photocopier (or copier) is a machine that makes paper copies of

documents and other visual images quickly and cheaply. Most current photocopiers
use a technology called xerography, a dry process using heat. (Xerographic office
photocopying was introduced by Xerox, in the 1960s, and over the following 20
years it gradually replaced copies made by Verifax, Photostat, carbon copy,
mimography machines and other duplicating machine. The prevalence of its use is
one of the factors that prevented the development of the paperless office heralded
early in the digital revolution.
 Photocopying is widely used in business, education, and government. There
have been many predictions that photocopiers will eventually become obsolete as
information workers continue to increase their digital document creation and
distribution, and rely less on distributing actual pieces of paper.

In 1937, Bulgarian physicist Georgi Nadjakov found that, when placed into
an electric field and exposed to light, some dielectrics acquire permanent electric
polarization in the exposed areas. That polarization persists in the dark and is
destroyed in light. Chester Carlson, the inventor of photocopying, was originally a
patent attorney, as well as a part-time researcher and inventor. His job at the patent
office in New York required him to make a large number of copies of important
papers. Carlson was arthritic and found this to be a painful and tedious process.
This motivated him to conduct experiments with photoconductivity.

Carlson used his kitchen for his "electrophotography" experiments, and, in

1938, he applied for a patent for the process. He made the first photocopy using a
zinc plate covered with sulphur. The words "10-22-38 Astoria" were written on a
microscope slide, which was placed on top of more sulphur and under a bright
light. After the slide was removed, a mirror image of the words remained. Carlson
tried to sell his invention to some companies, but failed because the process was
still underdeveloped. At the time, multiple copies were most commonly made at
the point of document origination, using carbon paper or manual duplicating
machines, and people did not see the need for an electronic machine.

Between 1939 and 1944, Carlson was turned down by over 20 companies,
including IBM and General Electric—neither of which believed there was a
significant market for copiers. In 1944, the Battelle Memorial Institute, a non-
profit organization in Columbus, Ohio, contracted with Carlson to refine his new
process. Over the next five years, the institute conducted experiments to improve
the process of electrophotography.

In 1947, Haloid Corporation approached Battelle to obtain a license to

develop and market a copying machine based on this technology. Haloid felt that
the word "electrophotography" was too complicated and did not have good recall
value. After consulting a professor of classical language at Ohio State University,
Haloid and Carlson changed the name of the process to "Xerography," which was
derived from Greek words that meant "dry writing." Haloid called the new copier
machines "Xerox Machines" and, in 1948, the word "Xerox" was trademarked.
Haloid eventually changed its name to Xerox Corporation. In 1949, Xerox
Corporation introduced the first xerographic copier called the Model A. Xerox
became so successful that, in North America, photocopying came to be popularly
known as "xeroxing." Xerox has actively fought to prevent "Xerox" from
becoming a genericized trademark.

Some languages include hybrid terms, such as the widely used Polish term
kserokopia ("xerocopy"), even though relatively few photocopiers are of the Xerox
brand. In the early 1950s, Radio Corporation of America (RCA) introduced a
variation on the process called Electrofax, whereby images are formed directly on
specially coated paper and rendered with a toner dispersed in a liquid. During the
1960s and through the 1980s, Savin Corporation developed and sold a line of
liquid-toner copiers that implemented a technology based on patents held by the
company.

Prior to the widespread adoption of xerographic copiers, photo-direct copies

produced by machines such as Kodak's Verifax were used. A primary obstacle
associated with the pre-xerographic copying technologies was the high cost of
supplies: a Verifax print required supplies costing USD $0.15 in 1969, while a
Xerox print could be made for USD $0.03 including paper and labor. At that time,
Thermofax photocopying machines in libraries could make letter-sized copies for
USD $0.25 or more (at a time when the minimum wage for a US worker was USD
$1.65). There are many brands of photocopier machines available in market, but
Xerox is leading brand in photocopier market.

LOCATION OF UNIT

In printing & photocopy business, your location is the deciding factor in the
success of your business. Unlike other business, printing & photocopy business
doesn’t require a high-visibility area, it just needs a relevant location. Start your
outlet near schools, tuitions, colleges or offices where you will be able to gain a lot
of customers.

EQUIPMENTS

To start a print & Xerox business, you would require a few basic
equipments. The most obvious one is a photocopier & printing machine. Choose
photocopiers that can produce 40-50 copies per minute as you will often have
regular customers with large volume requirements. You can either buy them or
have them at lease. But renting them will decrease the profit margin.

Another major thing you would require is a desktop with basic publishing
software like Corel Draw, Microsoft Office (which will have MS Word,
PowerPoint, Access and Excel installed) and other programs like Photoshop etc.
Other than these, you would require bulks of different sizes of printing paper such
as A4, A3, A2 etc; photo paper, staplers, spiral binder.
MARKETING

The key to making your photocopy & printing business stand out among
others is to offer better prices. The best marketing strategy in this business is to
give better services at lower prices to attract your potential customers. This is
because the potential customers for a print & Xerox business are students, and they
usually come with large volume requirements. So, it is a no-brainer that they would
look out for the shop which offers good services at a lower rate.

ABOUT THE PROMOTER

Name :

Sex :

Permanent Address :

Marital Status :

Nationality :
FINANCIAL ASPECTS

(A) FIXED CAPITAL

(1) LAND & BUILDING:

Land with Commercial Building: 100 sq. ft. @ Rs. 25 per sq. ft.

Rent : Rs.2500/-

(2) MACHINERY & EQUIPMENT

Sl. Rate per No. of Amount

Description
No. unit (Rs) Units (Rs)
1. XEROX Photocopier Machine 2,20,000 1 2,20,000
2. Desktop Computer 37,000 1 37,000
3. Computer Table with Chair 9,000 1 9,000
4. EXCELAM XL-12 Lamination Machine A3 5,000 1 5,000
5. Epson All In One Colour Printer 18,000 1 18,000
6. Manual Leg Type Coil Binding Machine A3 10,000 1 10,000
7. Metal A3 Paper Cutter 900 1 900
8. Kangaroo Heavy Duty Stapler 1400 1 1400

TOTAL 3,01,300

(3) PREOPERATIVE EXPENSES Rs.25,000

(4) TOTAL FIXED CAPITAL Rs.3,26,300
(B) WORKING CAPITAL (PER MONTH)

(i) Staff & Labour (Per Month):

Sl. Rate Amount
Personnel No.
No. (In Rs.) (In Rs.)
1. Proprietor/ Manager 1 10000 10,000/-
2. Skilled workers 1 7000 7,000/-
Total: 17,000/-
Perquisites @ 20% on the total salary 3,400/-
Grand Total 21,400/-

(ii) Raw Material (Per month):

Sl. Rate Value
Item description Qty.
No. (Rs.) (In Rs.)
1. A4 paper 13 Reams 200 2,600/-
2. Legal paper 2 Reams 240 480/-
3. Bond sheet 5 Reams 300 1,500/-
4. A3 paper 4 Reams 380 1,520/-
5. A4 Photo printing glossy paper 5 Packets 150 700/-
6. Wire binding materials L.S. 2,000/-
7. Lamination materials L.S. 2,000/-
8. Others 1,500/-
Total: 12,300/-

(iii) Utilities: (Per Month)

1. Electricity 1,000/-
2. Water charges 500/-
Total: - 1,500/-

(iv) Miscellaneous Expenses (Per Month)

 Sl. No. Description Amount (Rs)
1. Rent 2,500/-
2. Office expenses 500/-
3. Consumables 500/-
4. Repairs and maintenance 2,000/-
5. Advertisement expenses 1,000/-
Total: - 6,500/-

(v) TOTAL WORKING CAPITAL (PER MONTH) Rs.41,700/-

(C) TOTAL CAPITAL INVESTMENT:

1. Machinery & Equipment 3,26,300/-

2. Working Capital per month 41,700/-

Total: 3,68,000/-

(D) MEANS OF FINANCE:

Total Project Cost 3,68,000/-

Promoter contribution 83,000/-

Finance required from the Bank 2,85,000/-

FINANCIAL ANALYSIS

(1) Cost of Production (Per Annum)

1. Recurring Expenses 5,00,400/-

2. Depreciation on Machinery @ 10% 30,000/-

3. Interest on Total Investment @ 12.0% 44,160/-

Total: 5,74,560/-

Say 5,74,500/-

(2) Turn Over (per year) by Sales

Rate/ Unit
Product Quantity Value (Rs.)
(Rs.)
Printout / B/W 62,000 1.50 93,000
Photocopy
(A4&Legal) Colour 28,000 10.00 2,80,000
B/W A3 photocopy 24,000 4.00 96,000
Printout bond sheet 30,000 3.00 90,000
Wire binding 1,900 25.00 47,500
Lamination 6,000 18.00 1,08,000
Photo printing 1200 150 1,80,000
Total 8,94,500
(3) Net Profit (per year)

Sales Value (-) Cost of Production

8,94,500 (-) 5,74,500 = Rs.3,20,000

(4) Net Profit Ratio:

Net profit X 100 3,20,000 X 100 = 35.77%

Turn Over/Annum 8,94,500

(5) Rate of Return on Investment:

(Net Profit/Total Capital Investment)

Annual Profit X 100 3,20,000 X 100 = 86.96%

Total Capital Investment 3,68,000
(6) Break Even Point/Analysis:

Fixed Cost (Per Annum):

1. Rent Rs. 30,000/-

2. Depreciation Rs. 30,000/-

3. Interest on Capital Investment Rs. 44,160/-

4. 40% of Wages of Staff & Labour Rs. 1,02,720/-

5. 40% of other contingent expenses Rs. 26,400/-

Total Fixed Cost: Rs. 2,33,280/-

Say: Rs. 2,33,300/-

Break Even Point:

Fixed Cost X 100 2,33,300/- X 100 = 42.17%

Fixed Cost + Annual Profit 2,33,300/- + 3,20,000/-
REPAYMENT SCHEDULE

Repayment of loan Rs.2.85 lakh will be in 5years with 60 instalments. The

rate of interest has been calculated @ 12.0% per annum however the rate of
interest may vary while implementing the project.

(Rs. in lakhs)

Total Total
Year Months Principle Instalment Interest
Interest repayment

1 12 0.44 0.76 0.32 0.32 0.44

2 12 0.50 0.76 0.26 0.58 0.94

3 12 0.56 0.76 0.20 0.78 1.50

4 12 0.63 0.76 0.13 0.91 2.13

5 12 0.72 0.76 0.04 0.95 2.85

The promoter may also add stationery items in the sales to improve his net
profit. Those goods may have requirements for the customers who visit the
photocopying shop for printing and other purposes.