Are you about starting a laser engraving company? If YES, here is a complete sample laser engraving business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a laser engraving business. We also took it further by analyzing and drafting a sample laser engraving marketing plan template backed up by actionable guerrilla marketing ideas for laser engraving companies. So let’s proceed to the business planning section.
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
Why Start a Laser Engraving Business?
Starting a business is perhaps one of the surest ways to grow out of poverty and become truly wealthy. The truth is that there are several business opportunities that an aspiring entrepreneur can start from the scratch and grow into a success. One of such businesses is a laser engraving business.
If you intend starting your own laser engraving business, then you must take out time to learn the trade because it only takes someone with the skills to make a success out of this business.
You must consider some factors when getting a location for your business. Since the laser engraving business is somewhat hazardous because of the chemicals involved, the facility being used must meet certain standards. It must be located in an industrial area and not in a residential part of town.
This is done to prevent people from inhaling the harmful chemicals. The facility is also required to meet all the health, fire and safety standards of the state or country you are operating in. People who want to start on a small scale can still choose to start from their garage and grow from there. If you want to start from your garage, be sure to make sure that it is safe and you are not breaking the law.
If you have made up your mind to start a laser engraving business, then you should consider reading through this business plan as it will help you to successfully write yours.
A Sample Laser Engraving Business Plan Template
1. Industry Overview
Laser engraving companies are part of the engraving industry and players in this industry engraves designs, numbers or text on a broad range of surfaces (e.g. plaques, jerseys, trophies, invitations, firearms, electronics, laptops and industrial ID tags et al) for consumers and businesses. Their services include laser engraving, reverse engraving and other engraving techniques that are applicable to the materials they want to work with.
Laser engraving permanently marks an item, providing a check and balance against counterfeit products or replicas. In ID cards, multilayer formats are used to alter the color of the lower layer’s pigments without affecting the top transparent layer. This ensures a product is safe from fraud, produces high quality images and text, is tamper-proof and customizable to each organization’s needs.
So also, laser engraving can provide serial numbers, time stamps, part numbers, component labels, date codes, bar codes, or industry specific codes. Needless to say, laser engraving has become an important tool in parts identification, inventory control and tracking, safety and warning notification and loss prevention.
In the united states, per capita disposable income has increased steadily in the last five years, many thanks to increase in employment. As disposable income increased, consumers have been more willing to increase spending on discretionary services in order to customize the products they have purchased or gifts they want to give out.
Going forward, revenue is expected to continue to increase. Manufacturing output will continue to increase, which will inspire demand from consumer product and material processing companies. The Engraving Services industry that laser engraving business is part of is indeed a very large industry and pretty much active in all the parts of the world.
Statistics has it that in the United States of America alone, there are about 4,332 registered engraving companies responsible for employing about 12,236 people and the industry rakes in a whooping sum of $2bn annually. The industry is projected to experience 4.1 percent growth within 2013 and 2018. No company can boast of having a lion share of the available market in the industry.
A recent report published by IBISWorld shows that the Engraving Services industry exhibits low barriers to entry. The report shows that the industry is highly fragmented, due to being comprised of small engraving companies that cater to a market niche of consumers, such as consumers that want to personalize their items with monograms.
As a result, new industry entrants face low barriers to entry, due to being able to cater to demand from a plethora of markets, such as medical device manufacturers that require engravings like bar codes and product serial numbers. According to Epilog Laser, the capital outlay required to enter the Engraving Services industry is low, with new companies only requiring about $8,000 in capital expenditures. Basically, engraving service cum laser engraving companies only require a laser, computer and graphic software.
Some of the factors that encourage entrepreneurs to start their own laser engraving company could be that the business is easy to set up and the startup capital is affordable; you can actually start your own laser engraving business from the comfort of your house. All you need to do is to create an office somewhere in your house.
Over and above, the engraving services industry is very open to any aspiring entrepreneur who has acquired the required trainings, skills, tools and perhaps professional certifications to start his or her own laser engraving business.
2. Executive Summary
Grange Henry® Laser Engraving Services, LLC is a standard laser engraving company that will be based in Santa Fe – New Mexico. We have been able to secure a standard workshop in an industrial estate in Santa Fe – New Mexico. We are set to compete in the highly competitive engraving industry not only in New Mexico, but also throughout the United States.
Grange Henry® Laser Engraving Services, LLC will make use of laser technology to engrave designs, numbers or text on a broad range of surfaces (e.g. plaques, jerseys, trophies, invitations, firearms, electronics, laptops and industrial ID tags, jewelry, wedding glasses, craft supplies, bags and purses, computer supplies, personalized dog collars and tags, woodworking, pint glasses, pens, tools and golf tees et al) for consumers and businesses.
Our business goal is to become one of the leading laser engraving 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 and highly experienced laser engraving technicians in and around Santa Fe. We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectations of the company.
At Grange Henry® Laser Engraving Services, 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.
Grange Henry® Laser Engraving Services, LLC is founded by Grange Henry, an engineer par excellence who graduated with from Illinois Institute of Technology (B.Engr. in Metal & Metallurgy). He has over 7 years’ hands-on experience that can help Grange Henry® Laser Engraving Services, LLC to favorably compete with other laser engraving services in the United States of America.
3. Our Products and Services
Grange Henry® Laser Engraving Services, LLC is established with the aim of maximizing profits in the industry. We want to compete favorably with the leading laser engraving companies in the United States which is why we have put in place a competent quality assurance team that will ensure that every job carried out in our industry or related services rendered meet and even surpass our customers’ expectations.
We will work hard to ensure that Grange Henry® Laser Engraving Services, LLC is not just accepted in Santa Fe – New Mexico but also in other cities in the United States of America. Our products and services include;
- Electronic metal engraving services, excluding metal name plates
- Etching and engraving metal name plates
- Etching and engraving non precious metal hollow/flatware/cutlery and precious metals
- Other engraving services
4. Our Mission and Vision Statement
- Our vision is to establish a standard laser engraving company whose services, products and brand will not only be accepted in Santa Fe – New Mexico but also in other cities in the United States of America.
- Our mission is to provide professional laser engraving services that will assist businesses, individuals, households and organizations in ensuring that their metal products / tools / equipment are customized and highly presentable. We want to build a laser engraving company that can favorably compete with other leading brands in the industry.
Our Business Structure
Grange Henry® Laser Engraving Services intends starting small in Santa Fe – New Mexico, but hopes to grow big in order to compete favorably with leading laser engraving companies in the industry. We are aware of the importance of building a solid business structure that can support the picture of the kind of business we want to own, this is why we are committed to only hire the best hands within our area of operation.
At Grange Henry® Laser Engraving Services, LLC, we will ensure that we 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 the 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. 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 Engraving Expert)
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Laser Engraving 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
- Creates, interconnects, and implements 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
- Assesses the success of the organization
Head, Technical Services (Laser Engraving Expert):
- Serves as project manager for the organization; works directly with employees
- Develops strategic plan by studying technological and financial opportunities; presenting assumptions; recommending objectives.
- Achieves 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; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Makes certain that the technical department perform efficiently, coordinate employee efforts, and facilitate communications between management and technicians
- Ensures that the organization works in line with international best practices as it relates to laser engraving services.
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
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Accountable for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
Sales and Marketing Manager
- Identifies development opportunities; follows up on development leads and contacts;
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Creates new markets cum businesses for the organization
- Authorizes 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.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Grange Henry® Laser Engraving Services, LLC
- Serves as internal auditor for Grange Henry® Laser Engraving Services, LLC.
Laser Engraving (Technicians)
- Responsible for carrying out electronic metal engraving services, excluding metal name plates
- Handles etching and engraving metal name plates
- Handles etching and engraving nonprecious metal hollow/flatware/cutlery and precious metals
- Handles other engraving 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
- Steadily stays abreast of any new information on the organizations’ services, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
6. SWOT Analysis
We are quite conscious that there are several laser engraving companies scattered all across the United States, which is why we are following the due process of establishing a business. We know that if proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, influence on the opportunities that will be available to us, alleviate our risks and be equipped to confront our threats.
Grange Henry® Laser Engraving Services, 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 engraving business that can compete in the highly competitive laser engraving industry in the United States.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Grange Henry® Laser Engraving Services, LLC;
The power of our team is of course our major strong point. We have a team of certified and highly trained laser engraving (technicians). Aside from the synergy that exists in our carefully selected workforce, we have state of the art workshop with highly efficient tools and machines plus the fact that our services will be guided by international best practices.
As a new laser engraving company in Santa Fe – New Mexico, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the highly competitive laser engraving 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.
Laser engraving was once thought of as a process only used by industrial companies that could personalize items for corporate use. However, today – with numerous small businesses cropping up and the rise in the maker movement- laser engraving has moved from just a small number of companies offering services to a growing industry that takes only a small investment to give home businesses or small vendors a little something special to offer customers. As a laser engraving 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 engraving 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
With small scale businesses becoming increasingly popular, laser engraving has become a way for them to differentiate from the competition. Loads of players in this industry even offer blanket laser engraving services, meaning you send the item you want engraved to them and they send it back with whatever logo, name or graphic you want on it.
Engraving custom graphics, names or logos on mass-produced electronic gadgets is a great way to set something apart from an ever-increasing crowd of products. As a matter of fact, progress in laser cutting and engraving have led to the development of new accessories, and leading to better uses. Rotary attachments, optical lenses, air compressors, pin tables and photo processing software.
Before now, laser engraving machines and cutting systems were pretty expensive and hard to come by. Supply was limited and, more importantly, the cost to own a machine exceeded what typical home business or small vendor is willing to pay.
In recent time, laser engraving is no longer just for big factories; potential buyers can own these machines for far less than they may realize. Whether you are looking to purchase or lease-to-own a laser, or even rent time on one, there are locations worldwide that can cater to your needs.
Epilog has its laser engraving/cutting tools in a wide variety of shops across the U.S. and has numerous distribution houses throughout the world. It also offers academia and universities ways to find systems by geographic location. With the advancement in laser technology, accessibility to this technology has given rise to the adoption of laser engravers in fabrication labs, school labs and more in order to teach students.
8. Our Target Market
Before starting our laser engraving business in Santa Fe – New Mexico, we conducted a market survey and feasibility studies and we are certain that there is a wide range of clients who would need our services. Below is a list of the people and organizations that we will specifically market our products and services to;
- Woodworking companies
- Metalworking companies
- Digital and retail signage companies
- Model-making companies
- Gadgets and sports equipment dealers
- Branding companies
Our competitive advantage
Without a shadow of doubt, there are loads of big time investors that have stakes in the laser engraving industry; but one thing is certain, there is room big enough to accommodate big laser engraving companies and the smaller ones.
We are quite aware that to be highly competitive in the industry means that you are not only expected to deliver highly reliable and well – engraved products, 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.
We can boast of our ability to manage external (outsourcing) contracts, ability to pass on cost increases and access to low cost inputs. Again, have a team of certified and highly trained laser engraving (technicians) in various niche areas in the industry. Aside from the synergy that exists in our carefully selected workforce, we have state-of-the-workshop with highly efficient tools and machines plus the fact that our services 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.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Grange Henry® Laser Engraving Services, LLC is established with the aim of maximizing profits in the industry and we are going to do all it takes to meet and surpass the expectations of our clients. Grange Henry® Laser Engraving Services, LLC will generate income by offering the following services;
- Electronic metal engraving services, excluding metal name plates
- Etching and engraving metal name plates
- Etching and engraving nonprecious metal hollow/flatware/cutlery and precious metals
- Other engraving services
10. Sales Forecast
We are well positioned to take on the available market in the laser engraving industry and we are quite optimistic that we will meet our set target of generating enough profits from our first six month of operation and grow our company to profitability and enviable heights.
We have been able to critically examine the laser engraving services market and 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 Grange Henry® Laser Engraving Services, LLC, it is based on the location of our business and of course the wide range of our services and target market;
- First Fiscal Year: $250,000
- Second Fiscal Year: $550,000
- Third Fiscal Year: $900,000
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 engraving 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 stiff competitions in the laser engraving 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 Grange Henry® Laser Engraving Services, LLC.
Our corporate goal is to grow Grange Henry® Laser Engraving Services, LLC to become one of the top 10 laser engraving brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market.
Grange Henry® Laser Engraving Services, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our laser engraving services company by sending introductory letters alongside our brochure to individuals, woodworking companies, metalworking companies, digital and retail signage companies, model-making companies, corporate organizations, and key stake holders in the United States of America.
- Promptness in bidding for laser engraving contracts
- 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
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
- Join local chambers of commerce and industries with the aim of networking and marketing our services.
11. Publicity and Advertising Strategy
Despite the fact that our laser engraving company is well located, we will still go ahead to intensify publicity for the business.
Grange Henry® Laser Engraving Services, LLC has a long term plan of welcoming clients from all over the United States which is why we will deliberately build our brand to be well accepted in Santa Fe – New Mexico 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 Grange Henry® Laser Engraving Services, 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 we position our banners and billboards in strategic positions all around Santa Fe – New Mexico
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our laser engraving 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 members wear our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
At Grange Henry® Laser Engraving Services, LLC we will keep the prices of our services below the average market rate by keeping our overhead low and by collecting payment in advance from organizations that would hire our services. In addition, we will also offer special discounted rates to all our customers at regular intervals.
We are aware that there are some one – off laser engraving contracts which are always lucrative; we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
- Payment Options
The payment policy adopted by Grange Henry® Laser Engraving Services, 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 Grange Henry® Laser Engraving Services, 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)
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.
The tools 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 a standard laser engraving services company; it might differ in other countries due to the value of their money.
However, this is what it would cost us to set up Grange Henry® Laser Engraving Services, 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 our employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $100,000.
- The amount required to purchase the needed laser engraving equipment and machine – $25,000
- Equipping the office (computers, printers, markers, internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $30,000
- Amount required to purchase software applications to run our business – $3,500
- The amount needed in 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 engraving company in the United States.
Generating Startup Capital for Grange Henry® Laser Engraving Services, 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 engraving business. No doubt raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through.
Grange Henry® Laser Engraving Services, LLC is a business that will be owned and managed by Engr. Grange Henry 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 commerce lies in the number of loyal customers that they have, the capacity and competence 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 Grange Henry® Laser Engraving Services, LLC is to build a business that will survive off its cash flow without 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 laser engraving services a little bit cheaper than what is obtainable in the market and also to ensure that our finished jobs can favorably compete with the best in any part of the world, and we are prepared to survive on lower profit margin for a while.
Grange Henry® Laser Engraving Services, LLC will make sure 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 retraining of our workforce is at the top burner.
We know that if that 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 workshop 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 of the needed laser engraving equipment / machines: 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 laser engraving services industries: In Progress