How to start a framing company and build it right

Starting a framing company can be a rewarding venture, blending craftsmanship and an eye for design with business savvy. The industry is worth billions, with steady demand for custom frames from homeowners, artists, and businesses alike.

This guide will walk you through the practical steps, from securing funding and obtaining licenses to acquiring equipment and building supplier relationships, to help you launch a successful framing company in the U.S.

Step 1: Create your business plan and validate your idea

Start by understanding your local market. Talk to potential clients like artists, photographers, and interior designers. Visit art fairs and galleries to observe popular frame styles and materials. This direct feedback is more valuable than generic online reports.

A common oversight is to ignore specific demands like conservation framing for heirlooms or oversized frames for corporate art. Identify an underserved segment you can specialize in, as this can set you apart from competitors from day one.

Analyze your competition

Use Google Maps to identify framing shops in your area. Review their websites and social media. Look beyond their prices and analyze their turnaround times, the quality of their work, and what makes their service unique.

For deeper data, your local library likely provides free access to business databases. You might want to ask for resources like ReferenceUSA to get detailed reports on local businesses, which can help you find gaps in the market.

Estimate your startup costs

With your research in hand, you can build a realistic budget. Initial costs for a small framing business typically range from $11,500 to $32,000. A financial plan for these investments helps set a solid foundation for your company.

Here is a general breakdown of what to expect:

• Equipment: A miter saw, underpinner, and mat cutter can cost between $5,000 and $15,000.
• Initial Inventory: Expect to spend $3,000 to $7,000 on moulding, mat boards, and glazing.
• Workspace: A deposit and first month's rent for a small workshop might be $2,000 to $5,000.
• Business Formalities: Licenses and insurance will likely run from $500 to $2,000.

Here are 4 immediate steps to take:

• Talk to three local artists or designers about what they look for in a framer.
• List five local competitors and note one unique service each one offers.
• Check your public library's website for access to business databases like ReferenceUSA.
• Create a draft budget that lists your top three equipment expenses.

Step 2: Set up your legal structure and get licensed

You might want to form a Limited Liability Company (LLC). It protects your personal assets if the business faces debt or a lawsuit. Many new owners skip this to save on fees, but operating as a sole proprietorship puts your home and savings at risk.

Filing for an LLC costs between $50 and $500 through your state's Secretary of State website. For taxes, an LLC offers pass-through taxation, meaning business profits pass to your personal tax return. This simplifies paperwork compared to a corporation.

Secure your permits and tax numbers

First, get a free Employer Identification Number (EIN) from the IRS website. You need this for taxes and to hire employees. Next, apply for a seller's permit, also called a resale certificate, from your state's department of revenue. This lets you buy wholesale supplies tax-free.

Most cities or counties also require a general business license to operate, which can cost $50 to $150 annually. Check your local city hall's website for the specific form. Processing times for these permits can range from a few days to several weeks, so apply early.

Here are 4 immediate steps to take:

• Visit your Secretary of State's website to review LLC filing fees and forms.
• Apply for a free Employer Identification Number (EIN) directly on the IRS website.
• Search for your state's "seller's permit" or "resale certificate" application online.
• Check your city or county clerk's website for business license requirements.

Step 3: Protect your business with the right insurance

Securing the right insurance is not just a formality. It protects your investment from day one. Start with General Liability insurance, which covers accidents like a customer slipping in your shop. A standard policy with $1 million in coverage typically costs $400 to $900 per year.

Many new framers forget Professional Liability insurance. This covers claims if you accidentally damage a client’s artwork. Given you handle valuable and often irreplaceable items, this protection is vital. Expect annual premiums to range from $500 to $1,500.

Cover your assets and team

You also need Commercial Property insurance. This protects your expensive equipment and inventory from theft or fire. In addition, if you plan to hire help, you must have Workers' Compensation insurance. State laws require it to cover employee injuries.

You might want to get quotes from providers like The Hartford, Hiscox, or Next Insurance. They specialize in small business policies and understand the risks associated with artisan work. An agent familiar with your trade can find better coverage for your specific needs.

Here are 4 immediate steps to take:

• Request a quote for a $1 million general liability policy.
• Ask an insurance agent specifically about professional liability for artwork.
• Create an inventory of your equipment to determine your commercial property needs.
• Check your state's requirements for workers' compensation insurance.

Step 4: Find a location and buy equipment

Look for a commercial space between 500 and 800 square feet, zoned for retail or light industrial use. When you negotiate a lease, you might ask for a tenant improvement allowance to help cover costs for better lighting or ventilation. This is a common request.

Many new owners underestimate storage needs. Ten-foot moulding sticks and large 32x40-inch mat boards take up significant room, so factor that into your layout from the start.

Acquire your framing equipment

Your equipment budget will be a large part of your startup costs, but quality machines produce quality work. You might want to start with these core items:

• Miter Saw: A professional 10-inch or 12-inch saw costs $500 to $1,200.
• Underpinner: This joins frame corners and runs from $1,500 to $4,000.
• Mat Cutter: A 60-inch wall-mounted model is about $1,000 to $3,000.

It can be tempting to buy cheaper, hobby-grade machines, but they often lack the precision for professional work and wear out quickly under daily use.

Build supplier relationships

Reach out to major suppliers like Larson-Juhl, Roma Moulding, and Crescent to open wholesale accounts. Some require a minimum first order of $300 to $500. They will send you corner samples and moulding catalogs, which are your main sales assets.

Here are 4 immediate steps to take:

• Search commercial listings for spaces zoned for light industrial or retail use.
• Ask a potential landlord about a tenant improvement allowance.
• Get price quotes for a professional miter saw and an underpinner.
• Request wholesale account applications from two different moulding suppliers.

Step 5: Set up your payment and billing systems

For custom work, you should require a 50% deposit before you start. The final balance is due upon pickup. This protects you from buying materials for a project a client might abandon. Many new framers learn this lesson the hard way.

Accept cash, checks, and all major credit cards. For larger corporate jobs or gallery orders, it is wise to use a simple contract. This document should outline the project scope, timeline, and payment schedule. It adds a layer of professionalism and clarity for both you and your client.

For a framing business that needs to take payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit, and digital wallets directly through your smartphone. Just tap and you are done.

At just 1.99% per transaction with no hidden costs or extra hardware, it is a cost-effective choice. Other providers often charge between 2.5% and 3.5%. This makes JIM particularly useful for taking deposits at a client's home or processing sales at an art fair.

• Get Started: Download the JIM app for iOS.
• Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
• Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers.

Here are 4 immediate steps to take:

• Decide on your standard payment terms, like requiring a 50% deposit.
• Create a simple contract template for large or corporate client work.
• Download the JIM app to see how it works for mobile payments.
• Compare JIM's 1.99% transaction rate against other payment solutions.

Step 6: Secure funding and manage your finances

For your initial capital, you might look into an SBA 7(a) loan. These government-backed loans often have favorable terms for small businesses. For amounts under $50,000, the application process can be more direct. Approval typically requires a solid business plan and a good credit score.

You can also pursue equipment financing specifically for your miter saw and underpinner. Lenders often view these loans favorably because the equipment acts as collateral. This approach frees up your cash for other startup needs like inventory and marketing.

Manage your cash flow

Plan to have enough working capital to cover at least six months of operating expenses, which could be $10,000 to $20,000. Many new owners miscalculate this because they forget that initial moulding and mat board orders tie up cash before the first sale is even made.

In addition to loans, search for grants. Check with your local arts council or city's economic development office, as they sometimes offer funds for small creative businesses. These are competitive but do not require repayment, which can give your finances a healthy start.

Here are 4 immediate steps to take:

• Review the requirements for an SBA 7(a) loan on the SBA website.
• Request a quote for equipment financing from a commercial lender.
• Calculate your estimated operating expenses for a six-month period.
• Search your local arts council's website for small business grant programs.

Step 7: Hire your team and set up operations

Your first hire will likely be a part-time Framing Assistant. This person can handle customer consultations, mat cutting, and basic assembly. Expect to offer a wage between $18 and $25 per hour, based on their hands-on experience.

A frequent misstep is to hire for personality but forget to test for precision. You might want to include a simple hands-on task in the interview, like cutting a mat window. This quickly shows you their skill level and attention to detail.

Streamline your workflow

While not required, encouraging your staff to get a Certified Picture Framer (CPF) credential from the Professional Picture Framers Association (PPFA) adds credibility. It shows clients a commitment to high standards.

To manage jobs, consider industry-specific software like FrameReady. It helps you track orders, calculate pricing, and manage inventory from one place. This organization prevents mistakes and saves time as your order volume grows.

As you build your team, a healthy financial benchmark is to keep total payroll costs under 30% of your gross revenue. This figure helps you maintain profitability while you expand.

Here are 4 immediate steps to take:

• Draft a job description for a part-time Framing Assistant.
• Visit the PPFA website to review the Certified Picture Framer (CPF) requirements.
• Request a demo for a business software like FrameReady.
• Calculate a sample payroll budget based on your revenue projections.

Step 8: Market your business and find customers

Build local partnerships

Your best clients are often other businesses. Reach out to local interior designers, real estate stagers, and photographers. You might offer them a 15-20% trade discount on their orders. This builds a reliable stream of repeat work that is not dependent on walk-in traffic.

Many new owners just wait for customers to find them. This is a slow way to grow. Proactive outreach is what separates a hobby from a profitable company. Dedicate four to six hours each week to marketing activities, especially in the first six months.

Create your online storefront

Set up a simple website with a portfolio of your best work. Also, create an Instagram account. Framing is visual, so high-quality photos of finished projects attract clients who value craftsmanship. Post consistently to show you are active and open for business.

You should also claim your free Google Business Profile. Fill it out completely with your address, hours, and photos. Ask your first few happy customers to leave a review. Positive reviews can boost your local search ranking significantly within 60 to 90 days.

Here are 4 immediate steps to take:

• Identify three local interior designers or galleries to contact.
• Create an Instagram business profile and post five portfolio images.
• Draft an email template that offers a 20% trade discount.
• Set up and fully complete your Google Business Profile.

Step 9: Price your services for profit

Most framers use a cost-plus pricing model. You calculate the total cost of materials and labor, then add a markup to determine the final price. This ensures every job is profitable. A typical gross profit margin for custom framing is between 60% and 70%.

Calculate your material and labor costs

For materials, a standard markup is 2.5 to 3 times your wholesale cost. If moulding costs you $4 per foot, you would charge the client $10 to $12 per foot. Apply this same multiplier to mat board, glazing, and backing materials.

Next, determine your shop's hourly labor rate. A good starting point is between $60 and $90 per hour. A common mistake is to underprice your time. Remember to account for consultation, design, cutting, assembly, and finishing for every single project.

Set your final price

Let's price a simple 16x20 inch frame. If your materials cost $40 wholesale, you would bill $120 for them using a 3x markup. If the job takes one hour of labor at $75, your total price for the client would be $195.

Also, factor in a 10-15% waste allowance on materials like moulding, as mis-cuts and flaws happen. While it is smart to know what competitors charge, do not just copy their prices. Your pricing must reflect your unique material costs, labor, and overhead.

Here are 4 immediate steps to take:

• Calculate the material cost for a standard 16x20 frame using your wholesale price lists.
• Set an hourly shop rate based on your skill level and local market.
• Price a sample project using a 3x materials markup plus your labor rate.
• Call two local competitors for a quote on a basic frame to gauge the market.

Step 10: Implement quality control and scale your operations

To maintain a reputation for quality, you should inspect every finished frame for four key points: tight corners with no gaps, flawless glazing without scratches, a dust-free seal, and secure hanging hardware. A good goal is to keep your remake rate below 2% of all orders.

Many owners find that as they get busier, small details can slip. A simple checklist for each job helps prevent this. You might also encourage your team to pursue the Certified Picture Framer (CPF) credential to formalize their skills and show a commitment to professional standards.

Know when to grow

Once you consistently process more than 15-20 orders per week, it is likely time to hire another part-time assistant. This frees you to focus on sales and complex projects. Another sign is when your workspace feels cramped or disorganized, which can slow you down.

When you find that your manual mat cutter is the main bottleneck, you might want to invest in a computerized mat cutter (CMC). While a significant purchase, it can reduce cutting time by over 70% and open up creative design options that justify higher prices.

Here are 4 immediate steps to take:

• Create a final inspection checklist with at least four quality control points.
• Set a weekly order volume that will trigger your search for a new hire.
• Research the cost and benefits of a computerized mat cutter (CMC).
• Review the Certified Picture Framer (CPF) guidelines on the PPFA website.

Conclusion

You have the roadmap to launch your framing business. Remember that your eye for design and commitment to quality are what clients will pay for. Trust your craft and your business plan. The market is ready for your unique touch.

And when you make that first sale, you will want an easy way to get paid. JIM lets you accept payments right on your smartphone, with no extra hardware and a simple 1.99% rate. Download JIM and you are ready for business.