Are you about starting a laser cutting business? If YES, here is a complete sample laser cutting business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a laser cutting business. We also took it further by analyzing and drafting a sample laser cutting marketing plan template backed up by actionable guerrilla marketing ideas for laser cutting companies. So let’s proceed to the business planning section.
Why Start a Laser Cutting Business?
One prolific and fast raising business that an aspiring entrepreneur who has background in laser technology can start is a laser cutting business. If you intend starting your own laser cutting business, then you must learn the trade because the truth is that it only takes someone who has the technical skills to make it really big in this business.
What you need to put in place in other to successfully launch this business is the machines and equipment, a good knowledge of different designs, the legislations guiding the industry as well as strong entrepreneurial skills and determination.
If you are interested in starting a laser cutting company, then you should be ready to conduct thorough feasibility studies and market survey before committing your money and other resources to it. Aside from a detailed feasibility studies and market survey, one of the important documents that will aid the success of the business is a good and workable business plan.
If you want to start a laser cutting business, then you should consider reading through this business plan that will help you to successfully launch yours.
A Sample Laser Cutting Business Plan Template
1. Industry Overview
Laser cutting technology is a technology that uses a laser to cut materials, and it is usually used for industrial manufacturing applications. Industrial laser cutters are used to cut flat-sheet material as well as structural and piping materials.
As a matter of fact, schools, small businesses, and hobbyists have fully embraced the use of laser cutting technology. Laser cutting works by directing the output of a high-power laser most commonly through optics.
The laser cutting business has been exposed to the full force of the global economy over the past five years. While the industry quickly rebounded in 2010 and continued to improve till date, domestic and international demand have softened and the industry has yet to reach its pre-recession high.
However, the industry is expected to experience a less volatile period over the five years to 2023 as metal price fluctuations settle down.
If you are a keen follower of the trends in the laser cutting business and of course any other laser technology related business, you will realize that players in this industry ensure that they position their workshops close to clients to reduce transportation costs and turnover time.
This is one of the major reasons why you can easily find laser cutting plants located in manufacturing cum industrial estates.
No doubt, the laser cutting technology business has come to stay and the good part of it is that it enjoys the support of environmentalists and the government.
Over and above, the laser cutting technology industry is very open to any aspiring entrepreneur who have acquired the required training, skills, tools and perhaps professional certifications to start his or her own business.
2. Executive Summary
Precision® Laser Cutting Technology, LLC is a standard laser cutting technology company that will be based in Fargo-Moorhead – North Dakota.
We have been able to secure a standard office facility in a central industrial estate in Fargo-Moorhead – North Dakota. We are a laser cutting company that is set to compete in the highly competitive industry in North Dakota.
Precision® Laser Cutting Technology, LLC will leverage on different methods of cutting using lasers, with different types used to cut different materials. Some of the methods we will make use of are vaporization, melt and blow, melt, blow and burn, thermal stress cracking, scribing, cold cutting and burning stabilized laser cutting.
Our business goal is to become one of the leading laser cutting companies in the united states and we will make sure that we do all we can to compete favorably with leaders in the industry.
Our workers are going to be selected from a pool of certified laser cutting technicians in and around Fargo-Moorhead and also from any part of the United States of America as the business grows. We will make sure that we take all our workforce through the required trainings that will position them to meet the expectation of the company.
At Precision® Laser Cutting Technology, LLC, our client’s best interest will always 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 meeting our client’s needs precisely and completely.
Precision® Laser Cutting Technology, LLC is founded by Skye Morgan an engineer par excellence who graduated with from Illinois Institute of Technology (B.Engr.). He has over 7 years’ of hands on experience that can help Precision® Laser Cutting Technology, LLC to favorably compete with other leading laser cutting businesses in the United States.
3. Our Products and Services
Precision® Laser Cutting Technology, LLC is established with the aim of maximizing profits in the industry. We want to compete favorably with other companies in the United States which is why we have but in place a competent team that will ensure that every job carried out or related services rendered meets and even surpasses our customers’ expectations.
Our products and services are basically different methods in cutting using lasers, with different types used to cut different materials. Some of the methods we will use are;
- Melt and blow
- Melt blow and burn
- Thermal stress cracking
- Cold cutting
- Burning stabilized laser cutting
4. Our Mission and Vision Statement
- Our vision is to establish a standard laser cutting company whose services and brand will not only be accepted in Fargo-Moorhead – North Dakota but also in other cities in the United States of America.
- Our mission is to provide professional laser cutting technology services that will assist manufacturing businesses, individuals, households and organizations in ensuring that any metal or solid they cut or design are always in good shape and highly presentable. We want to build a laser cutting company that can favorably compete with other leading brands in the industry.
Our Business Structure
Precision® Laser Cutting Technology, LLC, is a company that intends starting small in Fargo-Moorhead – North Dakota, but hopes to grow big later on. We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own.
At Precision® Laser Cutting Technology, LLC, we will hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all 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
- Head, Technical Services (Laser Cutting Technology Expert)
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Laser Cutting Technology Technicians (10)
- Client Service Executive
5. 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, appraising job results and developing incentives
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Head, Technical Services (Laser Cutting Technology Expert):
- 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.
- Makes certain that the laser cutting technology department performs efficiently, coordinate employee efforts, and facilitate communications between management and technicians
- Ensures that the organization work in line with international laser cutting technology 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.
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Identifies development opportunities; follows up on development leads and contacts
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Develops, executes and evaluates new plans for expanding sales
- Creates new markets cum businesses for the organization
- Empowers 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 Precision® Laser Cutting Technology, LLC
- Serves as internal auditor for Precision® Laser Cutting Technology, LLC.
Laser Cutting Technicians
- Responsible for carrying out different methods such as vaporization, melt and blow, melt blow and burn, thermal stress cracking, scribing, cold cutting and burning stabilized laser cutting in cutting using lasers, with different types used to cut different material.
- Work with clients to achieve their expectations as it relates to cutting and design of any metal or materials.
- Handles any other related laser cutting technology services as instructed by the Head, Laser cutting technology services.
Client Service Executive
- Welcomes clients and potential clients 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 creative director 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 clients when they make enquiries
6. SWOT Analysis
We are quite aware that there are several laser cutting technology companies all across the United States, which is why we are following the due process of establishing a business so as to compete with them. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.
Precision® Laser Cutting Technology, LLC engaged the services of a professional in the area of business consulting and structuring to assist our organization in building a well – structured laser cutting technology business that can favorably compete in the highly competitive laser cutting industry in the United States.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Precision® Laser Cutting Technology, LLC;
Our core strength lies in the power of our team; our workforce. We have a team of certified and highly trained technicians in the various niche areas in the industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by international best practices in the laser cutting industry.
As a new laser cutting company in Fargo-Moorhead – North Dakota, it might take some time for our organization to break into the market and gain acceptance in the already saturated and highly competitive industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to pump into promoting our business the way we would want to.
The opportunities in the laser cutting technology services industry is massive considering the number of metal related businesses who can’t run their business without the help of professional laser cutting experts. As a laser cutting company, we are ready to take advantage of any opportunity that is available in the industry.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new laser cutting company in same location where our target market exists and who may want to adopt same Business model like us.
7. MARKET ANALYSIS
- Market Trends
It is important to state that technology and global trends play a major role in the laser cutting industry. The first objective of players in this industry is to maximize their return on investment. Scanning devices are used to get a 3-dimensional computer model of the rough stone. So also, inclusions are photographed and placed on the 3D model, which is then used to find an optimal way to cut the rough ‘stone’.
Another trend is that the laser cutting industry has galloped ahead in recent years as a result of the rapid technological developments in our world, and the growing number of metal and materials related manufacturers who would naturally embrace laser technology in cutting and designing. In the coming years, demand for laser cutting technology is projected to continue growing.
Lastly, the laser cutting technology industry is still going to be dominated by operators who have succeeded in positioning their company in cities that are notable for this trade, or in locations that are considered industrial hubs.
8. Our Target Market
Before starting our laser cutting technology business in Fargo-Moorhead – North Dakota, we conducted a market survey and feasibility studies and we are certain that there is a wide range of clients who cannot successfully run their businesses without the services of laser cutting companies. Below is a list of the people and organizations that we will market our services to;
- Manufacturing companies that requires the designing and cutting of metals and other solid materials
- Business/companies that are into diamond mining and other precious stones
- Entrepreneurs and Startups who are into the retailing of diamond
Our competitive advantage
Surviving in the business world as a laser cutting company requires more than your expertise, knowing how to deliver standard cut metals and solid materials but also how to network with key people that matters; decision makers that can decide who will get a laser cutting contract.
Without a shadow of doubt, there are loads of big time investors, that have a stake in the industry; but one thing is certain, there is room big enough to accommodate everyone.
We are quite aware that to be highly competitive in the industry means that you are not only expected to deliver consistent and highly reliable cut metals and solid materials, but you must be able to meet set targets. No one would want to continue to hire your services 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 certified and highly trained technicians with excellent qualifications and experience in various niche areas in the laser cutting industry. Aside from the synergy that exists in our carefully selected workforce, our services will be guided by international best practices in the laser cutting technology services industry.
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.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Precision® Laser Cutting Technology, LLC is established with the aim of maximizing profits in the industry and we are going to go all the way to ensure that we do all it takes and all that is permitted by the law in the United States to meet and surpass the expectations of all our clients.
Precision® Laser Cutting Technology, LLC will generate income by offering the following laser cutting technology related services;
- Melt and blow
- Melt blow and burn
- Thermal stress cracking
- Cold cutting
- Burning stabilized laser cutting
10. Sales Forecast
One thing is certain, there would always be metal related manufacturing companies, miners of diamonds and solid minerals who would need the services of laser cutting companies.
We are well positioned to take on the available market in the 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 company to profitability.
We have been able to critically examine the laser cutting technology services 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 Precision® Laser Cutting Technology, LLC; it is based on the location of our business and the wide range of our services and target market;
- First Fiscal Year: $250,000
- Second Fiscal Year: $450,000
- Third Fiscal Year: $1.2 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 laser cutting technology 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.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there are competitions in the laser cutting industry, hence 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 equipped to meet their targets and the overall business goal of Precision® Laser Cutting Technology, LLC.
Our corporate goal is to grow Precision® Laser Cutting Technology, LLC to become one of the top 10 laser cutting brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the market. Precision® Laser Cutting Technology, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our laser cutting company by sending introductory letters alongside our brochure to manufacturing companies that deal in precious stones, metal and solid materials and key stake holders in the United States of America.
- Promptness in bidding for laser cutting contracts from the big time diamond mines and merchants
- 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 deliver excellent services
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal clients
11. Publicity and Advertising Strategy
Despite the fact that our laser cutting technology company is well located, we will still go ahead to intensify publicity for the business. Precision® Laser Cutting Technology, LLC has a long term plan of welcoming clients from all over the world which is why we will deliberately build our brand to be well accepted in Fargo-Moorhead – North Dakota before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand throughout the United States of America. Here are the platforms we intend leveraging on to promote and advertise Precision® Laser Cutting Technology, LLC;
- Place adverts on community based newspapers, radio and TV stations
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Fargo-Moorhead – North Dakota
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our laser cutting technology business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and vans and ensure that all our staff wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
At Precision® Laser Cutting Technology, LLC we will keep the prices of our laser cutting services below the average market rate by keeping our overhead low and by collecting payment in advance from organizations who would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.
- Payment Options
The payment policy adopted by Precision® Laser Cutting Technology, LLC 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 Precision® Laser Cutting Technology, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via POS
- Payment via mobile money platform
- Payment via online bank transfer
- Payment via check
In view of the above, we have chosen banking platforms that will enable our clients make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
Having done our due diligence, this is what it would cost us to set up Precision® Laser Cutting Technology, LLC in the United of America;
- 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 a workshop facility that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
- The amount required to purchase laser cutting equipment and machine – $25,000
- Equipping the office (computers, printers, projectors, internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
- Amount required to purchase the needed software applications to run our business – $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 and fifty thousand (250,000) U.S. dollars to successfully set up a medium scale but standard laser cutting company in the United States of America.
Generating Startup Capital for Precision® Laser Cutting Technology, LLC
No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a laser cutting business.
Precision® Laser Cutting Technology, LLC is a business that will be owned and managed by Engr. Clement Knox and his immediate family members. They are the sole financier of the business which is why they have 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 $70,000 and soft loan from family members $30,000) and we are at the final stages of obtaining a loan facility of $150,000 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.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and capability of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Precision® Laser Cutting Technology, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our services a little bit cheaper than what is obtainable in the market and also to ensure that our laser cut materials can favorably compete with laser cut materials from any part of the world, and we are prepared to survive on lower profit margin for a while.
Precision® Laser Cutting Technology, LLC will ensure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
We know that if this is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- 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 for our business: Completed
- 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
- Purchase of repair and installation tools and equipment: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase laser cutting technology equipment/machines: Completed
- Purchase of 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 laser cutting technology industries: In Progress