Laser Engraving Business Plan
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Below is a template to help you create each section of your Laser Engraving business plan.
Executive Summary
Business Overview
Laser Transformation is a startup laser engraving company located in Santa Monica, California. The company is founded by Jason Johnson, who has over 20 years of experience in laser engraving. Jason previously worked at a large-scale laser engraving business, where for 10 years he was employed as the manager to oversee a number of high-volume projects that demanded expertise and precision. He was favored by the clients of the business because he could assist in envisioning the rough ideas brought to the business by clients who knew what they wanted, but could not quite visualize it without Jason’s helpful expertise.
Product Offering
The following are the products and services that Laser Transformation will provide:
- Personalized and artistic pieces created from various metals.
- State-of-the-art laser engraving equipment
- A team of skilled craftsmen to oversee each project
- Custom engraving and custom signage
- Precision technology: providing the finest cutting of intricate detail
- Excellent client service and on-going communication
Customer Focus
Laser Transformation will target primarily businesses and civic or governmental agencies within the Los Angeles, California are. Also targeted are individuals seeking customized metal pieces for memorable occasions, or customized pieces for artwork presentations. Retail stores that may want to inventory artistic pieces for resale are also targeted as a secondary audience.
Management Team
Laser Transformation is a startup laser engraving company located in Santa Monica, California. The company is founded by Jason Johnson, the president of the company, who has over 20 years of experience in laser engraving. Jason previously worked at a large-scale laser engraving business, where for 10 years he was employed as the manager to oversee a number of high-volume projects that demanded expertise and precision. He was favored by the clients of the business because he could assist in envisioning the rough ideas brought to the business by clients who knew what they wanted, but could not quite visualize it without Jason’s helpful expertise.
Laser Transformation was founded in 2022 and has grown to include three people who manage the company and six employees who complete the assigned projects. Within management, the roles include Dante Severin, the artistic design and style manager. Dante was recruited by Jason while they both worked at the former place of employment.
Keith Martin is the marketing manager for Laser Transformation and his marketing targets are primarily artists and those who work with art engraving. Also recruited by Jason is Nancy Larsen, the office manager, who oversees the staff and manages the financial accounting.
Success Factors
Laser Transformation will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team of Laser Transformation
- State-of-the-art laser engraving equipment that is unavailable elsewhere in California
- A team of skilled craftsmen to oversee each project
- Custom engraving and custom signage
- Precision technology: providing the finest cutting of intricate detail
- Excellent client service and on-going communication.
- Laser Transformation offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Download the Laser Engraving business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Laser Transformation is seeking $200,000 in debt financing to launch its laser engraving company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for Laser Transformation.
Company Overview
Who is Laser Transformation?
Laser Transformation is a startup laser engraving company located in Santa Monica, California. The company is founded by Jason Johnson, who has over 20 years of experience in laser engraving. Jason previously worked at a large-scale laser engraving business, where for 10 years he was employed as the manager to oversee a number of high-volume projects that demanded expertise and precision. He was favored by the clients of the business because he could assist in envisioning the rough ideas brought to the business by clients who knew what they wanted, but could not quite visualize it without Jason’s helpful expertise.
Laser Transformation was founded in 2022 and has grown to include three people who manage the company and six employees who complete the assigned projects. As the company has grown, it now requires more office space to house additional employees and inventory. With the detailed service and equipment provided by Laser Transformation, it is considered the most comprehensive, premier laser engraving service in southern California.
Laser Transformation History
Laser Transformation was founded in 2022 by Jason Johnson, a former laser engraving professional in the industry. The expertise and client care offered by Jason led him to start the new company and provided a full array of laser engraving options for many of the same clients he used to service in his former company.
Laser Transformation takes envisioned designs and produces artistic and profound engravings that support artwork installations and business goals through both industries. Artists come to Laser Transformation for intricate pieces that require delicacy, as only Laser Transformation can provide.
Since incorporation, Laser Transformation has achieved the following milestones:
- Registered Laser Transformation, LLC to transact business in the state of California.
- Has a contract in place for a 10,000 square foot office at one of the midtown buildings
- Reached out to numerous contacts to include Laser Transformation in engraving projects.
- Began recruiting a staff of three and six office personnel to work at Laser Transformation.
Laser Transformation Services
The following will be the products and services Laser Transformation will provide:
- Laser engraving for artists and artistic projects
- Laser engraving for corporate purposes, including customized signage
- Professional advice and consulting for large or intricate pieces
- A wide array of metals and other surface-treated options for engraving
- Fast turnaround service for corporate pieces
- Comprehensive services and excellent customer service
Industry Analysis
The laser engraving industry is expected to grow over the next five years to over $6 billion. The growth will be driven by greater production capacity as the capabilities of laser engraving machines grows. Additionally, the advent of computer-driven processes will continue to improve, providing faster laser engraving processes as a result. Designs for engraving will also continue to improve, adding to the growth factor of the industry over the next five to six years.
Costs will likely be reduced as certain metals become more available for engraving and additional items, such as vegan leather, become available as alternatives to metals alone. The creation, particularly in the artistic world, of additional textiles and fabrics, promises to add more engraving opportunities throughout the industry as the art form evolves.
Download the Laser Engraving business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Laser Transformation will target primarily businesses and civic or government agencies within the region of Los Angeles, California. Also targeted are individuals seeking customized metal pieces for memorable occasions, or customized pieces for artwork presentations. Retail stores that may want to inventory artistic pieces for resale are also targeted as a secondary audience.
Customer Segmentation
Laser Transformation will primarily target the following customer profiles:
- Businesses who require laser engraving for promotional or gifting purposes
- Civic or governmental agencies
- Artists and those who create artwork
- Individuals seeking customized pieces
- Retail stores that choose to carry inventory
Competitive Analysis
Direct and Indirect Competitors
Laser Transformation will face competition from other companies with similar business profiles. A description of each competitor company is below.
Talbot Event Planners
Talbot Event Planners, founded in 2006, focus primarily on wedding and anniversary events. As the premier event planners in the Santa Monica, California region, the company is often called upon to provide laser engraving for guest appreciation gifts, high-quality business gifts, presentations and awards and other items that require laser engraving. Although Talbot Event Planners do not offer direct laser engraving, the company is considered an indirect competitor, as other engravers could be selected or engaged in other applications in lieu of Laser Transformation.
Currently on contract with Talbot Event Planners until 2025, Laser Transformation works closely with the clients to fulfill their requests for upscale and often modern unique pieces. In addition, Laser Transformation offers previews and invites customers to view their showroom, where many examples of their work are offered for review.
Exceptional Engraving Company
The Exceptional Engraving Company was founded in 2022 by Hakim and Osana Burei and primarily targets the region of Santa Monica for customers who require laser engraving for home decor items. Such decor may include large wall hangings, metalware staircases, engraving on glass windows or etched in plastics. Any item of decor found within a home is part of the scope of Exceptional Engraving Company.
Hakim Burei migrated from the county of Malaysia in 2005, bringing with him a vast knowledge of engraving that he practiced for many years. The addition of metals and laser cutting or engraving was a learned art form when Hakim arrived in the U.S. and the gift of engraving has remained with him throughout his career.
LaserArt Productions
Viewing laser engraving as primarily an art form, LaserArt Productions serves to back up artistic concepts and ideas provided by artists who work with metals, glass, plastic, and some ceramics. LaserArt Productions was founded by Cherie Tigert in 1999. Cherie is an artist who works in metals and glass and, when she found few companies that could offer laser engraving in 1999, she founded her own company to do so. The latest technologies are employed the LaserArt Productions, which enable the company to provide engraving on some materials not typically capable of the process. Materials such as leather and vinyl are engraved, for example, which opens the door for artists to use engravings that enhance those materials to the fullest extent of their artistic interests.
Download the Laser Engraving business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Laser Transformation will be able to offer the following advantages over their competition:
- Friendly, knowledgeable, and highly-qualified team of Laser Transformation.
- State-of-the-art laser engraving equipment that is unavailable elsewhere in California.
- A team of skilled craftsmen to oversee each project, whether art or logo design.
- Custom engraving and custom signage using the newest forms of laser engraving.
- Precision technology: providing the finest cutting of intricate detail.
- Excellent client service and on-going consulting and communication.
- Laser Transformation offers the best pricing in town. Their pricing structure is the most cost effective compared to the competition.
Marketing Plan
Brand & Value Proposition
Laser Transformation will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees who are able to provide state-of-the-art laser engraving equipment that is unavailable elsewhere in California.
- A team of skilled craftsmen to oversee each project, whether art-related or logo design.
- Custom engraving and custom signage using the newest forms of laser engraving.
- Unbeatable pricing to its clients; they will offer the lowest pricing in the city.
Promotions Strategy
The promotions strategy for Laser Transformation is as follows:
Word of Mouth/Referrals
Laser Transformation has built up an extensive list of contacts over the years by providing exceptional service and expertise to former clients. The contacts and clients will follow to the new company and help spread the word of Laser Transformation.
Professional Associations and Networking
Industry networking and local business associations will be targeted for new business opportunities. In addition, trade shows that focus on art, artistic formats, design and home decor will also be targeted. Business applications that carry large volume sales will also be targeted by Laser Transformation.
Print Advertising
Print advertising will be found in local and regional magazines and online in social media ads. In addition, advertising will be conducted through artist workshops and art forums online.
Website/SEO Marketing
Laser Transformation will fully utilize their website. The website will be well organized, informative, and list all the products and services that Laser Transformation provides. The website will also list their contact information and pages will demonstrate the beautiful application of laser engraving found on the samples. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “laser engraving company” or “engraving near me,” Laser Transformation will be listed at the top of the search results.
Pricing
The pricing of Laser Transformation will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
Operations Plan
The following will be the operations plan for Laser Transformation.
Operation Functions:
- Jason Johnson is the owner and president of the company. Jason oversees all staff and manages client relations. He has spent the past year recruiting the following staff:
- Dante Severin is the artistic design and style manager for the company. He oversees consultations and assists in design-making for any client who requests assistance.
- Nancy Larson is the office manager who manages the office administration, client files, and accounts payable.
- Keith Martin, with a ten-year background of marketing experience, is the marketing manager who generates all marketing efforts for Laser Transformation.
Download the Laser Engraving business plan template (including a customizable financial model) to your computer here <–
Milestones:
Laser Transformation will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease office space
- 5/15/202X – Finalize personnel and staff employment contracts for the Laser Transformation
- 6/1/202X – Finalize contracts for Laser Transformation clients
- 6/15/202X – Begin networking at industry events
- 6/22/202X – Begin moving into Laser Transformation office
- 7/1/202X – Laser Transformation opens its doors for business
Management Team
The company is founded by Jason Johnson, the president of the company, who has over 20 years of experience in laser engraving. Jason previously worked at a large-scale laser engraving business, where for 10 years he was employed as the manager to oversee a number of high-volume projects that demanded expertise and precision. He was favored by the clients of the business because he could assist in envisioning the rough ideas brought to the business by clients who knew what they wanted, but could not quite visualize it without Jason’s helpful expertise.
Laser Transformation was founded in 2022 and has grown to include three people who manage the company and six employees who complete the assigned projects. Within management, the roles include Dante Severin, the artistic design and style manager. Dante was recruited by Jason while they both worked at the former place of employment. Also recruited by Jason is Nancy Larsen, the office manager, who oversees the staff and manages the financial accounting.
Keith Martin, with a ten-year background of marketing experience, is the marketing manager who generates all marketing communications and promotions for Laser Transformation. He employs a number of creative methods to market Laser Transformation, including samples to be offered at trade shows and networking events.
Financial Plan
Key Revenue & Costs
The revenue drivers for Laser Transformation are the fees they will charge to customers for their services.
The cost drivers will be the overhead costs required in order to staff Laser Transformation. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
Laser Transformation is seeking $200,000 in debt financing to launch its laser engraving company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the print ads and marketing costs. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
Download the Laser Engraving business plan template (including a customizable financial model) to your computer here <–
Key Assumptions
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of customers per Month: 40
- Average revenue per Month: $28,000
- Office Lease per Year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Laser Engraving Business Plan FAQs
What Is a Laser Engraving Business Plan?
A laser engraving business plan is a plan to start and/or grow your laser engraving business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
What are the Main Types of Laser Engraving Businesses?
There are a number of different kinds of laser engraving businesses, some examples include: Bulk/corporate engraving, Glass engraving, Metal engraving, Niche/high-end engraving, and Wood engraving.
How Do You Get Funding for Your Laser Engraving Business Plan?
Laser Engraving businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Laser Engraving Business?
Starting a laser engraving business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
- Develop A Laser Engraving Business Plan - The first step in starting a business is to create a detailed laser engraving business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
- Choose Your Legal Structure - It's important to select an appropriate legal entity for your laser engraving business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your laser engraving business is in compliance with local laws.
- Register Your Laser Engraving Business - Once you have chosen a legal structure, the next step is to register your laser engraving business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
- Identify Financing Options - It’s likely that you’ll need some capital to start your laser engraving business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
- Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
- Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
- Acquire Necessary Laser Engraving Equipment & Supplies - In order to start your laser engraving business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
- Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your laser engraving business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.