5 Financial Red Flags Every Screen Printer Needs to Watch Out For

Most screen printers I know share the same story: long days, machines constantly running, orders stacked high — and yet the bank account doesn’t reflect the grind.

If you’ve ever ended a busy month wondering, “Where did all the money go?”, you’re not alone. The truth is, being busy doesn’t equal being profitable.

Many talented printers fail not because of poor craftsmanship, but because of financial blind spots. These red flags don’t show up on your press or your dryer — they show up in your numbers. And if you don’t notice them in time, they can slowly sink your shop.

Here are five you can’t afford to ignore.

1. You Don’t Actually Know Job Profitability

When a customer asks, “How much for 100 shirts?”, are you basing your price on hard numbers, or on what “feels right”?

That difference matters. A lot.

If you’re quoting without including setup time, screen cleaning, wasted prints, or even your own labor, you’re almost guaranteed to undercharge. What feels like a big win today can turn into a loss when the details add up.

What to do instead:

Start tracking every cost — materials, time, overhead. Even a simple spreadsheet is better than guessing. Once you know your true costs, you can price with confidence, not hope.

2. Cash Flow Is Always Tight

A profit on paper means nothing if your account balance can’t cover rent.

The catch with screen printing is timing: you buy blanks and ink upfront, but clients often take 30, 60, or even 90 days to pay. That gap is where shops get squeezed.

The warning signs are obvious:

You’re relying on credit cards or personal funds to cover bills.
Receivables look strong, but you’re short on actual cash.
You keep extending generous terms just to keep customers happy.

How to fix it:

Change your payment policies. Ask for deposits, set clear due dates, and don’t be afraid to follow up. Protect your cash, because without it, your business stalls.

3. Your Warehouse Is Full of “Frozen Cash”

Every box of blanks sitting on your shelf is money you can’t use.

Stocking up feels smart when you’re chasing bulk discounts, but dead inventory — outdated sizes, odd colors, or rarely used inks — just ties up cash and space.

The risks are clear:

You don’t know exactly how much stock you have.
Some items have been sitting untouched for over a year.
Storage is becoming a bigger issue than production.

The smarter approach:

Order lean. Build supplier relationships so you can restock quickly without overcommitting. Audit your inventory regularly and clear out dead stock — even if it means discounting.

4. One Client Controls Too Much of Your Revenue

Relying on a single big client feels safe — until it isn’t.

If one customer makes up more than half of your revenue, your business is at their mercy. One budget cut, one change of supplier, and your income disappears overnight.

What this means for you:

You’re always prioritizing their orders, sometimes at the expense of others.
You’re making big concessions on price or terms to keep them.
You’re vulnerable to sudden collapse if they leave.

The alternative:

Diversify. No single client should account for more than 30% of your revenue. Keep marketing, even when you’re “too busy.” A broad client mix is your safety net.

5. Treating Equipment Like It Will Last Forever

Your press, dryer, and exposure unit are your lifeline — but they won’t last forever.

Ignoring depreciation or avoiding long-term planning for replacements only sets you up for painful surprises. When a key machine breaks, the downtime can cost far more than the repair.

The danger signs:

No budget line for equipment replacement.
Constant patch jobs on old machines instead of upgrades.
Falling behind competitors with faster, more efficient gear.

How to stay ahead:

Plan for upgrades as part of your normal expenses. Set aside a monthly “equipment fund.” When the time comes, you’ll be ready to replace — not scrambling.