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JUL.30, 2021

Laser Engraving Business Plan Sample

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Laser Engraving Business Plan Sample

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    Laser engraving business plan for starting your own business

    If you want to break free of the 9 to 5 routine and get financially independent, business is the only thing that can make it possible. While many businesses require a lot of investment to stat, there is one that you can start with relatively small investment and that is laser engraving. In this laser engraving business plan sample, you will learn everything about starting a laser engraving business. From marketing to services, everything will be explained in this strategic plan of organization.

    Just like a business plan for pottery studio, we’ll tell you all there is to know about starting this business.

    Executive Summary

    2.1 The Business

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    Nassar Laser Engraving will be a registered and insured business in downtown Los Angeles. This location is selected because Larry Nassar, who is starting the business, knows how to start a laser engraving business at home. The business will provide all types of laser engraving and cutting services in the area.

    2.2 Management of Laser Engraving Business

    If you want to know how to start winery, you need to know the engraving company names. That is what we will be discussing in this document which is a complete business plan for a banker.

    To manage the business, Larry will hire two managers and an accountant. The managers will look after sales and operations respectively while the accountant will be responsible for bookkeeping.

    2.3 Customers of Laser Engraving Business

    In this business, which is closely related to a gift shop business plan, the customers will be from a range of different categories. These will include:

    • Students who want laser engraving and cutting for their projects.
    • Companies that offer customization options like etching names on their products.
    • People who want to get things customized for their own use.
    • Commercial customization companies that do not have their own equipment.

    2.4 Business Target

    The target of Nassar Laser Engraving is to become a profitable business, one that can help the owner, Larry Nassar make money. This target will be broken down into the following business goals:

    • Making permanent partnerships with commercial customers.
    • Providing excellent services and having more than 95% customer satisfaction.
    • Expanding the business to other areas of Los Angeles and then to other cities.
    • Establishing a reputable brand around the business.

    3 Years Profit Forecast - Event Venue Business Plan Template

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    Company Summary

    3.1 Company Owner

    Larry Nassar is the owner of the business. He has worked as a laser machine operator for five years and knows all there is to it. He wants to start a laser cutting machine small business and after careful study of the business in the area he has decided to setup his business in downtown Los Angeles.

    3.2 Why the Laser Engraving Business is being started?

    While finalizing laser engraving business names, Larry thought that it might be a good idea to tell why he is starting a laser engraving business. For one, he has had enough of his 9 to 5 life and wanted to start his own business to earn money and secondly, he has investment for a business and the only thing he can do is a laser engraving business.

    Just like we did in the business plan for gift baskets, the next thing is how the business will be started.

    3.3 How the Laser Engraving Business will be started?

    Step1: Planning

    Like any other business, the first thing that needs to be done in order to start the business is planning. In this stage a detailed survey of the market was conducted, and it was determined that starting this business was totally worth it. There is a high demand for the services we intend to provide and not a single notable service provider is there.

    Step2: Branding

    Once the business is finalized to be started, the next step is to make a brand for the business. As the business is going to be setup in a posh area of the city, it is important to have an established brand as people tend to trust them and are comfortable doing business with them.

    Step3: Building   

    While the brand building process is on its way, a building will be leased in downtown Los Angeles and the business will be setup there. All the equipment will be setup and the business will soon be ready to start taking orders.

    Step4: Going Online

    As people look for everything online these days, the next step will be to establish an online presence for the business. To do that, a website for the business will be made and social media pages will also be established.

    Startup Cost - Event Venue Business Plan Template

    Start-up Expenses
    Legal $250,000
    Consultants $0
    Insurance $29,000
    Rent $30,000
    Research and Development $25,000
    Expensed Equipment $56,000
    Signs $3,900
    TOTAL START-UP EXPENSES $393,900
    Start-up Assets $353,000
    Cash Required $365,000
    Start-up Inventory $37,000
    Other Current Assets $237,000
    Long-term Assets $280,000
    TOTAL ASSETS $1,272,000
    Total Requirements $1,665,900
    START-UP FUNDING
    Start-up Expenses to Fund $393,900
    Start-up Assets to Fund $1,272,000
    TOTAL FUNDING REQUIRED $1,665,900
    Assets
    Non-cash Assets from Start-up $1,662,000
    Cash Requirements from Start-up $388,000
    Additional Cash Raised $53,000
    Cash Balance on Starting Date $39,000
    TOTAL ASSETS $2,142,000
    Liabilities and Capital
    Liabilities $29,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $47,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $76,000
    Capital
    Planned Investment $1,665,900
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,665,900
    Loss at Start-up (Start-up Expenses) $400,100
    TOTAL CAPITAL $2,066,000
    TOTAL CAPITAL AND LIABILITIES $2,142,000
    Total Funding $1,665,900
    Any questions? Get in Touch!

    Services

    Note

    While discussing the available engraving business opportunities, it is important to note that deciding the services that we will be providing is one of the most important parts of the business.

    If you want to know laser engraving business how it is profitable, you need to determine the services to be provided. Let’s see how to set up a laser cutter and what services to provide:

    Precision Cutting

    This service will be provided to the customers who want to get wood or thin sheet metal cut to an exact shape. Lasers are the best way to cut anything to an exact shape.

    Laser Engraving

    Another important service that will be provided by the laser engraving business will be engraving things on various metallic and wooden structures.

    Laser Etching

    Etching things with lasers will also be one of the major services to be provided by the business.

    Customization

    Lasty, all types of customization services possible with a laser engraving machine will also be provided by Nassar Laser Engraving.

    Marketing Analysis of Laser Engraving Business

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    To make any of the laser engraving business ideas work, it is important to have proper marketing analysis of the business we are going to enter. In the marketing analysis run by Larry Nassar, it was determined that the business will be highly successful. This is mainly because there is little to no competition in the area and the demand is high. That makes laser etching business ideas a profitable venture and we will hopefully make a lot of profit from the business.

    5.1 Market Trends

    If we have a look at the market tends of laser engraving home business, we can see that the business has only grown over the last decade or so. There has been in a steady increase in the demand for these services. However, the more important thing is that the rise in demand is not at par with the rise in service providers. That has created a gap in the market, one that we can use to make our venture successful.

    5.2 Marketing Segmentation

    The next important part of this laser engraving business plan sample is the discussion of the market segments that we will be doing business with, and they are the following:

    Marketing Segmentation - Event Venue Business Plan Template

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    5.2.1 Private Customers

    These will be the customers who want the services for themselves. These people will hire our services for laser engraving, etching, and cutting. The transactions with these customers will be smaller in magnitude but larger in volume.

    5.2.2 Local Businesses

    Local businesses that provide the services to other customers but do not have the equipment of their own will fall into this market segment.

    5.2.3 Corporate Clients

    Large corporations that want to include laser engraving and etching with their products will fall into this category.

    5.2.4 Remote Clients

    People who are from other cities and want our services will also make a notable market segment for us. We will receive the items via post, modify it the way the customer wants and send it back to them.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Private Customers 40% 42,000 44,000 45,000 48,000 51,000 10.00%
    Local Businesses 22% 27,000 29,000 31,000 33,000 37,000 10.00%
    Corporate Clients 20% 23,000 24,000 25,000 27,000 28,000 10.00%
    Remote Clients 18% 17,000 19,000 22,000 26,000 29,000 11.00%
    Total 100% 109,000 116,000 123,000 134,000 145,000 10%

    5.3 Business Target

    • To provide dependable and reliable laser cutting, engraving, and etching services to the clients.
    • To become the number one laser services provider in the area and eventually the state.
    • To make at least $266,000 in profit per annum by the end of second year.
    • To establish a brand around Nassar Laser Engraving.

    5.4 Product Pricing

    We will charge the premium price for our services. This will be done because there is not a lot of competition in the area and people will hire our services no matter how much we may charge. We will, however, offer discounted rates to bulk buyers and on B2B transactions.

    Marketing Strategy

    For successfully executing laser cut business ideas, it is important to have a solid marketing strategy as no business can be successful without that. Before starting the laser engraving business Larry carried out a detailed survey of the market to make the strategy. He has determined that running a complete competitive analysis and making a sales strategy are the most important things to make the business a success.

    Just like we did in the tattoo shop business plan, now we will shed some light on these aspects of the business.

    6.1 Competitive Analysis

    1. After complete analysis of the market, it has been determined that there is no competitor in the area.
    2. It has been found that the companies and businesses providing the service in the area are overcrowded by customers and do not provide credible and dependable services.
    3. There is a high demand for the services in the are with a lot of B2B and B2C customers.
    Any questions? Get in Touch

    6.2 Sales Strategy

    • Larry will use all available advertisement and promotion channels to promote the business.
    • Better rates will be offered to bulk buyers and B2B customers to get permanent clients.
    • Quality of the work will always be kept at the highest possible standards to make sure we have a sustained inflow of customers.

    6.3 Sales Monthly

    Sales Monthly - Event Venue Business Plan Template

    6.4 Sales Yearly

    Sales Yearly - Event Venue Business Plan Template

    6.5 Sales Forecast

    Unit Sales - Event Venue Business Plan Template

    Sales Forecast
    Unit Sales Year 1 Year 2 Year 3
    Precision Cutting 45,000 47,700 50,562
    Laser Engraving 40,000 42,400 44,944
    Laser Etching 43,000 45,580 48,315
    Customization 46,000 48,760 51,686
    TOTAL UNIT SALES 174,000 184,440 195,506
    Unit Prices Year 1 Year 2 Year 3
    Precision Cutting $60.00 $69.60 $80.74
    Laser Engraving $62.00 $71.92 $83.43
    Laser Etching $59.00 $68.44 $79.39
    Customization $65.00 $75.40 $87.46
    Sales
    Precision Cutting $2,700,000.00 $3,319,920.00 $4,082,173.63
    Laser Engraving $2,480,000.00 $3,049,408.00 $3,749,552.08
    Laser Etching $2,537,000.00 $3,119,495.20 $3,835,731.30
    Customization $2,990,000.00 $3,676,504.00 $4,520,629.32
    TOTAL SALES $10,707,000.00 $13,165,327.20 $16,188,086.33
    Direct Unit Costs Year 1 Year 2 Year 3
    Precision Cutting $58.00 $66.00 $76.00
    Laser Engraving $60.00 $68.00 $79.00
    Laser Etching $57.00 $65.00 $75.00
    Customization $63.00 $72.00 $83.00
    Direct Cost of Sales
    Precision Cutting $2,610,000.00 $3,148,200.00 $3,842,712.00
    Laser Engraving $2,400,000.00 $2,883,200.00 $3,550,576.00
    Laser Etching $2,451,000.00 $2,962,700.00 $3,623,610.00
    Customization $2,898,000.00 $3,510,720.00 $4,289,904.80
    Subtotal Direct Cost of Sales $10,359,000.00 $12,504,820.00 $15,306,802.80

    Personnel plan

    Just like we did in the t-shirt printing business plan, the next thing that needs to be discussed to know laser engraving business how it is profitable, is the people that will be needed to run the business effectively and efficiently. Now, we will be talking about the manpower requirement to make this laser engraving business plan a workable business.

    Any questions? Get in Touch

    7.1 Company Staff

    The following people will be needed to run the business:

    • Larry Nassar will be the owner and CEO of the business.
    • 2 managers for operations and marketing.
    • 3 Laser operators.
    • 2 designers.
    • 1 technician.
    • 2 helpers.
    • 1 guard.
    • 1 reception clerk.
    • 1 accountant.

    7.2 Average Salary of Employees

    Personnel Plan
    Year 1 Year 2 Year 3
    Operations Manager $14,000 $15,400 $16,940
    Marketing Manager $13,000 $14,300 $15,730
    Laser Operators $32,000 $35,200 $38,720
    Designers $20,000 $22,000 $24,200
    Technician $10,000 $11,000 $12,100
    Helpers $18,000 $19,800 $21,780
    Guard $9,000 $9,900 $10,890
    Reception Clerk $8,000 $8,800 $9,680
    Accountant $10,000 $11,000 $12,100
    Total Salaries $134,000 $147,400 $162,140

    Financial Plan

    If you can get a laser business for sale, you will not have to make a financial plan for it but if you want to start it from scratch, financial plan is one of the most important things to consider. The situation here is quite different as compared to a business plan for an art gallery. We need equipment that is costly, and we need trained people who can run those machines. Here is an overview of all the costs involved in starting the business.

    • The cost of leasing or renting a location to establish the business.
    • The salaries of the employees.
    • The cost of buying the laser cutting and engraving equipment.
    • The money that will be needed to the marketing of the business.
    • The money needed to make a website and promote it.

    8.1 Important Assumptions

    General Assumptions
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.19% 8.22% 8.26%
    Long-term Interest Rate 8.38% 8.45% 8.51%
    Tax Rate 24.10% 24.33% 25.30%
    Other 0 0 0

    8.2 Break-even Analysis

    Break-even Analysis - Event Venue Business Plan Template

    Break-Even Analysis
    Monthly Units Break-even 5345
    Monthly Revenue Break-even $132,500
    Assumptions:
    Average Per-Unit Revenue $235.00
    Average Per-Unit Variable Cost $0.66
    Estimated Monthly Fixed Cost $163,400

    8.3 Projected Profit and Loss

    Pro Forma Profit And Loss
    Year 1 Year 2 Year 3
    Sales $10,707,000 $13,165,327 $16,188,086
    Direct Cost of Sales $10,359,000 $12,504,820 $15,306,803
    Other $0 $0 $0
    TOTAL COST OF SALES $10,359,000 $12,504,820 $15,306,803
    Gross Margin $348,000 $660,507 $881,284
    Gross Margin % 3.25% 5.02% 5.44%
    Expenses
    Payroll $134,000 $147,400 $162,140
    Sales and Marketing and Other Expenses $138,000 $140,000 $146,000
    Depreciation $2,100 $2,300 $2,480
    Leased Equipment $0 $0 $0
    Utilities $2,900 $3,000 $3,100
    Insurance $2,100 $2,100 $2,100
    Rent $2,900 $3,000 $3,100
    Payroll Taxes $28,000 $29,000 $31,000
    Other $0 $0 $0
    Total Operating Expenses $310,000 $326,800 $349,920
    Profit Before Interest and Taxes $38,000 $333,707 $531,364
    EBITDA $38,000 $333,707 $531,364
    Interest Expense $0 $0 $0
    Taxes Incurred $7,600 $66,741 $106,273
    Net Profit $30,400 $266,966 $425,091
    Net Profit/Sales 0.28% 2.03% 2.63%

    8.3.1 Profit Monthly

    Profit Monthly - Event Venue Business Plan Template

    8.3.2 Profit Yearly

    Profit Yearly - Event Venue Business Plan Template

    Any questions? Get in Touch

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - Event Venue Business Plan Template

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Event Venue Business Plan Template

    8.4 Projected Cash Flow

    Projected Cash Flow - Event Venue Business Plan Template

    Pro Forma Cash Flow
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $55,000 $59,400 $64,152
    Cash from Receivables $20,000 $21,600 $23,328
    SUBTOTAL CASH FROM OPERATIONS $75,000 $81,750 $88,290
    Additional Cash Received
    Sales Tax, VAT, HST/GST Received $0 $0 $0
    New Current Borrowing $0 $0 $0
    New Other Liabilities (interest-free) $0 $0 $0
    New Long-term Liabilities $0 $0 $0
    Sales of Other Current Assets $0 $0 $0
    Sales of Long-term Assets $0 $0 $0
    New Investment Received $0 $0 $0
    SUBTOTAL CASH RECEIVED $75,000 $82,000 $89,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $39,000 $42,000 $44,000
    Bill Payments $24,000 $26,000 $28,000
    SUBTOTAL SPENT ON OPERATIONS $63,000 $68,000 $72,000
    Additional Cash Spent
    Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
    Principal Repayment of Current Borrowing $0 $0 $0
    Other Liabilities Principal Repayment $0 $0 $0
    Long-term Liabilities Principal Repayment $0 $0 $0
    Purchase Other Current Assets $0 $0 $0
    Purchase Long-term Assets $0 $0 $0
    Dividends $0 $0 $0
    SUBTOTAL CASH SPENT $63,000 $68,040 $73,483
    Net Cash Flow $21,000 $22,000 $23,000
    Cash Balance $27,000 $29,000 $31,000

    8.5 Projected Balance Sheet

    Pro Forma Balance Sheet
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $280,000 $313,600 $344,960
    Accounts Receivable $24,000 $26,880 $30,213
    Inventory $4,300 $4,816 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $291,000 $325,920 $366,334
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $18,000 $20,160 $22,680
    TOTAL LONG-TERM ASSETS $24,200 $27,104 $30,492
    TOTAL ASSETS $293,000 $328,160 $369,180
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $19,000 $21,280 $23,919
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $17,000 $19,040 $21,401
    Paid-in Capital $30,000 $30,000 $31,000
    Retained Earnings $53,000 $57,770 $63,547
    Earnings $201,000 $219,090 $240,999
    TOTAL CAPITAL $286,000 $311,740 $342,914
    TOTAL LIABILITIES AND CAPITAL $303,000 $328,160 $369,180
    Net Worth $298,000 $324,820 $357,302

    8.6 Business Ratios

    Ratio Analysis
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.22% 8.00% 8.86% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.24% 10.24% 11.34% 9.80%
    Inventory 5.43% 6.02% 6.67% 9.90%
    Other Current Assets 2.11% 2.34% 2.59% 2.40%
    Total Current Assets 150.09% 151.00% 152.00% 158.00%
    Long-term Assets 11.50% 11.60% 11.64% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.96% 5.00% 5.05% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.70% 7.76% 7.83% 7.38%
    NET WORTH 100.70% 101.51% 102.44% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 95.40% 97.98% 100.72% 99.00%
    Selling, General & Administrative Expenses 93.50% 96.02% 98.71% 97.80%
    Advertising Expenses 1.54% 1.58% 1.63% 1.40%
    Profit Before Interest and Taxes 41.30% 42.42% 43.60% 33.90%
    Main Ratios
    Current 34 35 36 32
    Quick 34 34.4 35.26 33
    Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
    Pre-tax Return on Net Worth 74.08% 74.70% 75.00% 75.00%
    Pre-tax Return on Assets 94.66% 99.39% 104.36% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 33.14% 34.17% 35.23% N.A.
    Return on Equity 55.78% 57.51% 59.29% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32.6 34.23 35 N.A.
    Accounts Payable Turnover 15 16 16.3 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.5 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.04 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $245,000 $258,720 $273,208 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.86 0.87 0.87 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 29.03 29.12 29.16 N.A.
    Sales/Net Worth 2.1 2.2 2.3 N.A.
    Dividend Payout 0 0 0 N.A.

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