How to Start a Vehicle Wrapping Business in 13 Steps

Key considerations to remember when starting your vehicle wrapping business:

1. Choose a location — Select a location with adequate space for wrapping vehicles, storing materials, and parking customer vehicles. Consider proximity to high-traffic areas and potential clients, such as car dealerships and businesses with vehicle fleets.
2. Tools and equipment — Invest in high-quality tools and equipment necessary for vehicle wrapping, such as heat guns, squeegees, cutting tools, cleaning supplies, and measuring devices.
3. Materials — Source high-quality vinyl films and wrapping materials from reputable suppliers. Offer a wide range of colors, finishes, and brands to meet diverse customer preferences.
4. Technology — Use design software to create custom graphics and mockups for clients. Consider investing in a large-format printer if you plan to print custom wraps in-house.
5. Hire staff — Hire skilled and experienced wrap installers, designers, and administrative support.
6. Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
7. Legal business aspects — Register for taxes, open a business bank account, and get an EIN.
8. Marketing strategies — Use a combination of online marketing (SEO, social media, email marketing) and offline methods (local advertising, flyers, events) to promote your business. Offer promotions, discounts, and referral programs to attract and retain customers.

You May Also Wonder:

How profitable is a vehicle wrapping business?

Profit margins for car wrapping are high, and you can bring in revenue of an average of $3,000 per car. The key is getting trained so that you can provide great service. If you make your customers happy, they’ll come back and give you referrals.

How long does car wrap last?

The longevity of a car wrap depends on factors such as the quality of the wrap material, the installation process, and the exposure to elements such as sunlight and weather conditions. A well-installed car wrap using high-quality vinyl material can last up to 5-7 years, with proper care and maintenance.

What color car is easiest to wrap?

The color of the car that is easiest to wrap depends on the design and material used for the wrap. Generally, lighter colors such as white, silver, or beige are easier to wrap as they require less material to cover and are less likely to show imperfections or bubbles. However, experienced installers can successfully wrap cars of any color.

Can I start a vehicle wrapping business on the side?

Starting a vehicle wrapping business on the side is possible but requires careful planning and investment in equipment, supplies, and marketing efforts. Consider the local demand for car wrapping services, competition, and pricing strategies. Ensure you have adequate space for storage, cutting, and installation of the vinyl wraps. Evaluate your time and resources to balance the demands of your primary job and the business.

What is the hardest part of wrapping a car?

The hardest part of wrapping a car is achieving a seamless and smooth finish, especially on complex curves, corners, and edges. The installation process requires attention to detail, precision, and skill to avoid wrinkles, bubbles, or creases. Proper surface preparation, cleaning, and priming are essential to ensure the vinyl adheres well and lasts long.

Can I offer custom designs and graphics for vehicle wraps?

Yes, offering custom designs and graphics for vehicle wraps can be a lucrative service to attract customers and differentiate your business from competitors. Consider investing in graphic design software, printing equipment, and cutters to create custom designs and logos. Ensure you have a clear understanding of the client’s brand and preferences, and offer mock-ups or digital proofs before proceeding with the installation.

Step 1: Decide if the Business Is Right for You

Pros and cons

Starting a vehicle wrapping business has pros and cons to consider before deciding if it’s right for you.

Vehicle wrapping industry trends

Industry size and growth

• Industry size and past growth – The global car wraps industry was valued at $4 billion in 2020.((https://www.grandviewresearch.com/industry-analysis/automotive-wrap-film-market))
• Growth forecast – The global vehicle wrap industry is projected to grow an impressive 22.4% annually through 2028.

Trends and challenges

Trends in the vehicle wrapping industry include:

• More and more car owners are turning to wrapping to change the look of their car with bold patterns and metallic finishes.
• Carbon fiber wraps, which are stronger than steel, are starting to gain market share. 

Challenges in the vehicle wrapping industry include:

• It’s easy to make mistakes when wrapping a car, which presents a risk for vehicle wrapping businesses. 
• There is currently a vinyl wrap shortage due to a shortage of raw materials to produce it, leading to delays in vinyl wrap installations.

How much does it cost to start a vehicle wrapping business?

Startup costs for a vehicle wrapping business range from $10,000 to $18,000. Costs include a garage rental, equipment, education, and certification. If you’re able to use your own garage or already have an available space, your costs would be considerably reduced. 

You’ll need to find hands-on vehicle wrapping training in your area, such as Avery Dennison. The cost for two two-day courses plus the exam is about $2,500.

You’ll need a handful of items to successfully launch your vehicle wrapping business, including: 

• Heat guns
• Tucking tools
• Hood, trunk, and door props
• Cutting tools
• Magnets
• Adhesive Promoters
• Vinyl

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$150 - $200	$175
Business licenses and permits	$100 - $300	$200
Insurance	$100-$300	$200
Business cards and brochures	$200 - $300	$250
Website setup	$1,000 - $3,000	$2,000
Garage space rental deposit	$3,000 - $5,000	$4,000
Wrapping Equipment	$3,000 - $6,000	$4,500
Education and certification	$2,500 - $3,000	$2,750
Total	$10,050 - $18,100	$14,075

How much can you earn from a vehicle wrapping business?

The average price to wrap a car is $3,000. Your profit margin after materials, labor, and rent should be about 30%.

In your first year or two, you might wrap one car per week, bringing in $156,000 in annual revenue. This would mean $47,000 in profit, assuming that 30% margin. As your brand gains recognition and you ramp up your marketing, sales could climb to three cars per week. With annual revenue of nearly $470,000, you’d make a tidy profit of $140,000.

What barriers to entry are there?

There are a few barriers to entry for a vehicle wrapping business. Your biggest challenges will be:

• The startup costs of education and equipment
• Standing out from established vehicle wrapping firms

Step 2: Hone Your Idea

Now that you know what’s involved in starting a vehicle wrapping business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research vehicle wrapping businesses in your area to examine their products/services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a business that does custom advertising vinyl wraps, or metal-colored wraps.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Determine your services

You’ll just need to determine what you want to specialize in. You could offer single-color wraps, patterned wraps, or advertising wraps.

How much should you charge for vehicle wrapping?

Your prices will depend on the size of the car and your cost of materials. The average price to wrap a sedan is about $3,000. After costs of materials, labor, and rent, you should aim for a profit margin of 30%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

If you decide to specialize in advertising wraps, your target market will be small business owners. You can find them on LinkedIn, or you can call on them directly. You can find local small businesses on Google or Yelp.

Where? Choose your business premises

You’ll likely need to rent out a garage space. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “auto wrapping” or “car wrapping”, boosts SEO
• Name should allow for expansion, for ex: “ProWrap Solutions” over “Food Truck Wrappers”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Business Plan

Here are the key components of a business plan:

• Executive Summary: Present a brief overview of your vehicle wrapping business, focusing on offering high-quality, customized vehicle wraps for advertising and personalization purposes.
• Business Overview: Describe your business’s focus on providing vehicle wrap services, including design, printing, and application of vinyl wraps for cars, trucks, and fleets.
• Product and Services: Detail the variety of vehicle wrap services offered, such as full-body wraps, custom graphics, and protective coatings.
• Market Analysis: Assess the demand for vehicle wraps, identifying potential customers like businesses seeking mobile advertising or individuals wanting personalized car designs.
• Competitive Analysis: Compare your services with other local vehicle wrapping or signage companies, emphasizing your strengths in design quality, material durability, or installation expertise.
• Sales and Marketing: Outline your strategy for attracting clients, using tactics like online marketing, partnerships with automotive businesses, or showcasing portfolio work.
• Management Team: Highlight the experience and skills of your team, particularly in graphic design, vinyl application, and business management.
• Operations Plan: Describe the operational process, including client consultations, design development, wrap production, and application.
• Financial Plan: Provide an overview of financial aspects, covering startup costs, pricing strategy, and projected income.
• Appendix: Include supplementary documents such as design portfolios, customer testimonials, or detailed market research to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to vehicle wrapping businesses.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your vehicle wrapping business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have. 

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a vehicle wrapping business. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Business Licenses/Permits

Starting a vehicle wrapping business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your vehicle wrapping business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as ordant, cyrious, or WRAPSHOP, to manage your estimates, invoicing, and payments.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Marketing

Here are some powerful marketing strategies for your future business:

• Strategic Partnerships: Forge partnerships with auto dealerships, car rental companies, or local businesses, offering them exclusive discounts in exchange for referrals and collaborative marketing efforts.
• Social Media Campaigns: Leverage visually appealing content on platforms like Instagram and Facebook to showcase your best vehicle wraps, before-and-after transformations, and customer testimonials to build brand awareness.
• Targeted Local Advertising: Invest in targeted local advertising, such as billboards, bus stop ads, and local radio spots, to reach potential customers in your immediate area and generate local interest.
• Fleet Discounts: Offer special discounts for businesses looking to wrap multiple vehicles in their fleet, encouraging them to choose your services for a cohesive and professional look.
• Creative Content Marketing: Develop content related to vehicle wrapping, such as blog posts, videos, or infographics, to establish your business as an authority in the industry and attract organic traffic.
• Customer Referral Program: Implement a customer referral program where satisfied clients receive incentives for referring new customers, expanding your reach through word-of-mouth marketing.
• Attend Car Shows and Events: Participate in local car shows and community events to showcase your work, network with potential clients, and generate buzz about your business.
• Limited-Time Promotions: Create urgency and encourage quick decisions by offering limited-time promotions or discounts, motivating potential clients to choose your services sooner rather than later.
• Localized SEO Optimization: Optimize your online presence for local search by ensuring accurate business information on Google My Business, Yelp, and other local directories, helping potential customers find your services easily.
• Customer Testimonials: Encourage satisfied customers to leave positive reviews online, and prominently display these testimonials on your marketing materials and social media to build trust and credibility.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your vehicle wrapping business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your vehicle wrapping business could be: 

• Grow your business with unforgettable vehicle decals 
• Make your car pop with bold vinyl wrap designs
• Tired of your car’s color? Forget paint, wrap it in vinyl!

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a vehicle wrapping business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in vehicle wrapping for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in vehicle wrapping. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a vehicle wrapping business include:

• Vehicle Wrappers – assist with wrapping cars
• General Manager – ordering, estimates, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Start Making Money!

If you want to start a business in a booming industry, vehicle wrapping fits the bill. The industry is projected to expand more than 22% each of the next six years, so now is the perfect time to hop aboard. You’ll need to invest in training and equipment, but at an average of $3,000 per car, you can make really good money. The training doesn’t take long, so you can get into business quickly. 

Now that you’ve got the business part down, go get that training wrapped up and launch your successful new vehicle wrapping venture!