Do you want to start an additive production business and need to write a plan? If YES, here is a sample additive manufacturing business plan template & feasibility report.
In our world today, inventors invent things that will help us save time, money and of course live a better life and one of such technology breakthroughs is the introduction of additive manufacturing. Additive manufacturing, which can also be referred to as 3D printing, is a transformative approach to industrial production that aids in the creation of lighter, stronger parts and systems.
This is indeed another unique technological advancement made possible by the transition from analog to digital processes. Below is a sample additive manufacturing company business plan template that will help you write yours without much stress.
A Sample Additive Manufacturing Business Plan Template
Table of Content
- 1 Industry Overview
- 2 Executive Summary
- 3 Our Product and Services Offerings
- 4 Our Mission and Vision Statement
- 5 Job Roles and Responsibilities
- 6 SWOT Analysis
- 7 MARKET ANALYSIS
- 8 Our Target Market
- 9 Our Competitive Advantage
- 10 SALES AND MARKETING STRATEGY
- 11 Sales Forecast
- 12 Publicity and Advertising Strategy
- 13 Financial Projections and Costing
- 14 BUSINESS GROWTH: Sustainability and Expansion Strategy
Additive manufacturing companies are known to leverage on the process of creating an object by building it one layer at a time. It is the opposite of subtractive manufacturing, in which an object is created by cutting away at a solid block of material until the final product is complete.
Additive manufacturing business is part of the 3D manufacturing industry and this industry primarily manufactures 3D printers. 3D printing is a form of additive manufacturing technology where a three-dimensional object is created by laying down successive layers of material. 3D printers offer product developers the ability to print parts and assemblies made of several materials with different mechanical and physical properties in a single build process.
The 3D Printing manufacturing industry over time has experienced rapid growth due to rapid technological advancements, falling costs and new uses for 3D printing technology. Going forward, the demand for 3D products and of course the revenue generated are projected to increase rapidly as 3D printer manufacturing explodes in popularity and accessibility, especially in consumer markets.
Statistics has it that in the United States of America alone, there are about 68 registered and licensed additive and 3D printer manufacturing companies responsible for employing about 3,814 and the industry rakes in a whooping sum of $4 billion annually.
The industry is projected to enjoy 22.5 percent annual growth between 2014 and 2019. Although the industry is still open to new investors, but the establishment with the dominant market share in the industry is Stratasys Ltd. Research carried out by IBISWorld shows that while the 3D printing industry is nearly three decades old, it has surged ahead in recent years.
The industry has been driven by rapid technological developments, falling costs and new applications for 3D-printing technology. Thus, over the five years to 2018, industry revenue is expected to increase at an annualized rate of 22.5 percent to $3.7 billion, including estimated growth of 19.6 percent.
If you are looking towards starting your own additive manufacturing business, then you should endeavor to learn the trade. The truth is that the technology and processes involved in this line of business requires a period of time (months) to learn.
Over and above, the additive manufacturing business is pretty much open to new entrepreneurs and investors. But they must first and foremost ensure that they have conducted thorough feasibility studies and market survey before situating the business in any location.
Future Technology™ Additive Manufacturing Company, Inc. is a U.S based additive manufacturing company. We have been able to secure a standard and well – positioned office facility in a conducive environment in Greater Boston – Massachusetts. We chose to start in Greater Boston because the city has continue to be a major center for venture capital investment, and high technology remains an important sector.
Future Technology™ Additive Manufacturing Company, Inc. will be leverage on additive manufacturing technology to create three-dimensional objects by laying down successive layers of material. We are well – positioned to offer product developers the ability to print parts and assemblies made of several materials with different mechanical and physical properties in a single build process.
Our business goal is to become one of the leading additive manufacturing companies in the United States and we will make sure that every job that leaves our facility can favorably compete with the best in the industry. Our workers are going to be selected from a pool of talented and highly creative additive manufacturing and 3D printers in and around Greater Boston – Massachusetts.
We will make sure that we take our entire workforce through the required trainings that will position them to meet the expectation of the company and to compete with leading additive manufacturing companies in the United States and throughout the globe.
At Future Technology™ Additive Manufacturing Company, Inc. our client’s best interest come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by delivering excellent and neat jobs and also meeting our client’s needs precisely and completely.
Future Technology™ Additive Manufacturing Company, Inc. is a private business that is owned and managed by Mr. Ian Roberts. Ian Roberts studied Printing Technology at Illinois Institute of Technology and he has over 22 years’ experience working with a leading additive manufacturing company in the United States of America.
Our Product and Services Offerings
Future Technology™ Additive Manufacturing Company, Inc. was established with the aim of maximizing profits in the 3D Printers Manufacturing industry. We want to compete favorably with the leading additive manufacturing companies in the United States of America which is why we have but in place a competent quality assurance team that will ensure that all our products meet and even surpasses our customers’ expectations and match international standards.
We will work hard to ensure that Future Technology™ Additive Manufacturing Company, Inc. is not just accepted in Greater Boston – Massachusetts but also nationally. Our products and service offerings are listed below;
- Primary production of 3D printers
- Secondary production including build materials
- Maintenance and services
- Fused deposition modeling (FDM)
- Other related additive manufacturing services
Our Mission and Vision Statement
- Our vision is to establish a standard and world class additive manufacturing company whose products and brand will not only be accepted in Greater Boston – Massachusetts but also throughout the United States of America.
- Our mission is to build a world class additive manufacturing company that will be known to manufacture top notch products and to become the number one choice for aerospace companies, players in the medical industry, the transportation industry, the energy industry and consumer products manufacturers and other stake holders in and around the United States.
Our Business Structure
Future Technology™ Additive Manufacturing Company, Inc. intends starting small in Greater Boston – Massachusetts, but hopes to grow big in order to compete favorably with leading companies in the industry. We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own.
At Future Technology™ Additive Manufacturing Company, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to help us build a prosperous business that will benefit our stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Creative Director
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Additive/3D Printers (Technologist)
- Client Service Executive
Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Responsible for providing direction for the business
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Serve as project manager of the organization; works directly with employees
- Responsible for designing and approving concepts for additive manufacturing
- Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
- Accomplishes subsidiary objectives by establishing plans, budgets, and results measurements; allocating resources; reviewing progress; making mid-course corrections.
- Maintains quality service by establishing and enforcing organization standards.
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications / journals; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Make certain that production and development department perform efficiently, coordinate employee efforts, and facilitate communications between management and additive manufacturers / 3D printers (technologist) and rapid prototyping specialist
- Ensures that the organization works in line with international best practices.
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Future Technology™ Additive Manufacturing Company, Inc.
- Serves as internal auditor for Future Technology™ Additive Manufacturing Company, Inc.
Additive Manufacturers/3D Printers (Technologists)
- In charge of handling primary production of 3D printers, secondary production including build materials, maintenance and services, fused deposition modeling (FDM) and other related additive manufacturing services
- Liaising with clients to determine their requirement and budget
- Working to a brief, which details what the space will be used for, and finding out the client’s personal ideas and requirements
- Responsible for creating patterns and operating 3D printing machines cum equipment
- Responsible for negotiating fees and setting schedules for the project
- Responsible for researching and drawing up rough plans
- Responsible for developing detailed designs and choosing materials
- Responsible for preparing drafts or material based on an agreement brief
- Research and advice the organization on style, genre and other trendy info as it relates to additive manufacturing et al.
Client Service Executive
- Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the HR manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to potential clients when they make enquiries
- Receives parcels/documents for the company
- Distribute mails in the organization
Future Technology™ Additive Manufacturing Company, Inc. employed the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured additive manufacturing business that can favorably compete in the highly competitive additive manufacturing industry in the United States.
Part of what the team of business consultant did was to work with the management of our organization in conducting a SWOT analysis for Future Technology™ Additive Manufacturing Company, Inc. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Future Technology™ Additive Manufacturing Company, Inc.;
Our core strength lies in the power of our team; our workforce. We have a team of creative and highly proficient 3D printers and additive manufacturing technologists, a team with excellent qualifications and experience in various niche areas in the industry.
Aside from the synergy that exists in our carefully selected additive manufacturing technologists, we have some of the latest and efficient 3D printing machines and equipment and of course our work output and products will be guided by international best practices in the industry..
As a new additive manufacturing company in Greater Boston – Massachusetts, it might take some time for our organization to break into the market and gain acceptance especially from the government and other high – profile clients in the fast growing industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
Additive manufacturing can significantly reduce material waste, reduce the amount of production steps, inventory being held, and reduce the amount of distinct parts needed for an assembly. That perhaps will open up opportunities for a business such as ours. As a standard additive manufacturing company, we are ready to take advantage of any opportunity that is available in the industry.
Manufacturers across multiple industries represent the largest market for an additive manufacturing company. As these key markets import larger portions of goods from foreign producers, industry revenue suffers. In 2018, import penetration into the manufacturing sector is expected to rise, presenting a potential threat to the industry.
- Market Trends
The additive manufacturing industry over time has experienced rapid growth due to rapid technological advancements, falling costs and new uses of the 3D printing technology. The continuing advancement in 3D printing has also opened up new opportunities for end-use and mass customization applications. One of the most exciting applications realized today is the opportunity to reproduce aftermarket parts for restoring classic cars.
Going forward, the demand for additive manufacturing products and 3D printing service and of course the revenue generated is projected to increase rapidly as the industry explodes in popularity and accessibility, especially in consumer markets.
As an additive manufacturing company with the aspiration to favorably compete in the industry, you are expected to keep tabs with new trends and products that are always coming up in the industry.
Our Target Market
Before starting our additive manufacturing company, we were certain that there is a wide range of both corporate and individual clients who will need our products and services. We will ensure that we develop strategic pacts with corporate organizations. This will give us several options to generate revenue for our company.
In view of that, we have created strategies that will enable us reach out to our target market and for the start, we will concentrate only on these key industries where the amazing capabilities of additive manufacturing has greatly transformed their production;
- Aerospace industry
- Medical industry
- Transportation industry (Automotive suppliers and companies)
- Energy industry
- Consumer Products manufacturing industry
Our Competitive Advantage
Although the competition in this industry in the United States is pretty much on the lower level because there are just about 68 companies. But the fact that additive manufacturing is profitable and it enjoys strong demand from some industries means that clients will only purchase your products if they know that they can get nothing but the best from you.
We are quite aware that to be highly competitive in the industry means that you are not only expected to deliver consistent and highly creative designs, but you must be able to meet set targets. No one would want to order products from you if don’t always meet up with the target date of completion of projects.
Our competitive advantage lies in the power of our team; our workforce. We have a team of creative and highly proficient 3D printers and additive manufacturing technologists, a team with excellent qualifications and experience in various niche areas in the industry. Aside from the synergy that exists in our carefully selected staff, we have some of the latest machines and equipment and of course our work output and product will be guided by international best practices.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
SALES AND MARKETING STRATEGY
We are not ignorant of the fact that there are growing competitions in the additive manufacturing industry, which is why we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their set targets and the overall business goal of Future Technology™ Additive Manufacturing Company, Inc.
Our goal is to grow Future Technology™ Additive Manufacturing Company, Inc. to become one of the leading additive manufacturing companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in Greater Boston – Massachusetts but also in other cities in the United States of America.
Future Technology™ Additive Manufacturing Company, Inc. is set to make use of the following marketing and sales strategies to attract clients and win additive manufacturing contracts;
- Introduce our additive manufacturing company by sending introductory letters alongside our brochure to players in the Aerospace industry, Medical industry, Transportation industry, Energy industry, Consumer Products manufacturing industry and key stake holders in and around the United States of America.
- Promptness in bidding for additive manufacturing contracts from the government and other cooperate organizations
- Advertise our business in relevant business magazines, newspapers, TV and radio stations
- List our business on yellow pages ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still produce top – notch products
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Join local chambers of commerce and industries to network and market our services
- Encourage word of mouth marketing from loyal and satisfied clients
Sources of Income
Future Technology™ Additive Manufacturing Company, Inc. is established with the aim of maximizing profits in the additive manufacturing industry and we are going to go ensure that we do all it takes to meet and surpass the expectations of our clients.
Future Technology™ Additive Manufacturing Company, Inc. will generate income by engaging in;
- Primary production of 3D printers
- Secondary production including build materials
- Maintenance and services
- Fused deposition modeling (FDM)
- Other related additive manufacturing services
This industry is opening up for increase sales going forward because as additive manufacturing technologies have advanced, 3D printed parts have moved absolutely outside the Research and Development arena and onto the production line. These crucial processes are developing and producing concepts which were in time past unachievable in the manufacturing world.
We are well positioned to take on the available market in additive manufacturing / 3D printers manufacturing industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our additive manufacturing company to enviable heights.
We have been able to examine the additive manufacturing and 3D printers market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Future Technology™ Additive Manufacturing Company, Inc., it is based on the location of our business and of course the wide range of our products and target market;
- First Fiscal Year (FY1): $550,000
- Second Fiscal Year (FY2): $900,000
- Third Fiscal Year (FY3): $1.7 million
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same additive manufacturing/3D printer products and services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Our Pricing Structure
If you are conversant with the additive manufacturing industry, you will realize that the pricing structure ranges from fixed price rate to per square foot billing and even to the quantity of materials to the production of a product. Almost all additive manufacturing companies adopt all the available pricing system as it applies to the quantity of the job or project they are expected to execute.
At Future Technology™ Additive Manufacturing Company, Inc. we will adopt all the pricing system as is obtainable in the industry but we will ensure that we keep the prices of our products and services a little below the average market rate by keeping our overhead low and by collecting payment in advance from our customers. In addition, we will also offer special discounted rates to all our customers at regular intervals.
- Payment Options
The payment policy adopted by Future Technology™ Additive Manufacturing Company, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Future Technology™ Additive Manufacturing Company, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via online bank transfer
- Payment via mobile money
- Payment via Point of Sales Machines (POS Machines)
- Payment via check
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our products and services without any stress on their part.
Publicity and Advertising Strategy
We have been able to work with brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to become the number one choice for both corporate clients and individual clients in the whole of the Greater Boston and beyond which is why we have made provisions for effective publicity and advertisement of our additive manufacturing company.
Below are the platforms we intend to leverage on to promote and advertise Future Technology™ Additive Manufacturing Company, Inc.;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community – based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
- Install our Bill Boards on strategic locations all around Greater Boston – Massachusetts
- List our additive manufacturing company in local directories / yellow pages
- Advertise our additive manufacturing company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo.
Financial Projections and Costing
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. When it comes to setting up an additive manufacturing business, the materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting an additive manufacturing company; it might differ in other countries due to the value of their money. However, this is what it would cost us to setup Future Technology™ Additive Manufacturing Company, Inc. in Greater Boston – Massachusetts, U.S;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Acquiring an office space or warehouse that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $150,000.
- Equipping the office (computers, 3D printing machines and equipment, servers / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $150,000
- Amount required to purchase the needed software applications – $ 3,500
- Launching an official Website will cost – $500
- Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about two hundred thousand (550,000) U.S. dollars to successfully set up a medium scale but standard additive manufacturing company in the United States of America.
Generating Funds/Startup Capital for Future Technology™ Additive Manufacturing Company, Inc.
Future Technology™ Additive Manufacturing Company, Inc. is owned by Mr. Ian Roberts. He decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $100,000 (Personal savings $85,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $450,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
BUSINESS GROWTH: Sustainability and Expansion Strategy
Part of the plans we have in place to sustain Future Technology™ Additive Manufacturing Company, Inc. is to ensure that we continue to make available quality additive manufacturing/3D products, and improvise on how to do things faster and cheaper. We are not going to relent in providing conducive environment for our workers and also the required trainings that will help them deliver excellent services at all times.
We are quite aware that our customers are key component to the growth and survival of our business hence we are going to continuously engage them to give us ideas on how to serve them better. We will not waste time in adopting new technology, best practices and diversifying our services once the need arises.
Our key sustainability and expansion strategy as a business is to ensure that we only hire competent and technically sound employees, create a conducive working environment and employee benefits for all our staff members. We know that if we implement our business strategies, we will grow our additive manufacturing business beyond Greater Boston – Massachusetts to other states in the U.S in record time.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard office facility plus renovation of the facility: Competed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Secure trademark for our products: In Progress
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed 3D printing machines and other equipment: Completed
- Purchase of the needed furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in the industries: In Progress