Is laser engraving business profitable? Take a look at this guide to learn how to launch one of these companies and make money at the same time. The laser engraving market was worth $2.1 billion in 2019 and is expected to grow to $3 billion in 2024. That’s a 6% increase!
This proves the laser engraving industry is booming whether it’s producing engraved jewelry or automotive parts. Wondering “is laser engraving business profitable?” Read on to learn why it is profitable and how to launch a successful business.
What Is Laser Engraving?
Before we jump into how to start a laser engraving business, it’s important to understand what it means. This is where laser cuts, marks, or etches a wide range of materials including metal, rubber, wood, or plastic.
You use a laser engraving machine to do this as they produce the best marking options. To find the best option for you, check this link: https://www.lasitlaser.com/laser-marking-metals/.
Consider What Type Of Business You Want
To have a successful laser engraving business, decide on which material to work with so you can get the best laser engraver machine. This will also let you know the product you want to produce. For instance, you can create customized jewelry with laser engraving.
You can do this through ablating where the surface of the jewelry is vaporized. Or consider annealing which changes the color of the material without harming it. Laser engraving also gives you more freedom as they are accurate and easily recreate your digital designs.
Or try automotive manufacturing where you engrave specific marks on the tiniest automotive parts. Barcodes, QR codes, and serial numbers have to be engraved on anything safety-related like airbags so it’s a profitable business.
You can also use laser engraving for medical devices, electronics, and gift items like keychains.
Getting The Equipment
It’s important to get the right machine for your business especially if you hope to scale and mass-produce your products. Find one that has a bigger work surface so you can produce pieces with different dimensions and a wide range of applications. Know that machines with 12 x 8-inch beds are the standard size and a fantastic choice for beginners.
You should also consider the power of the machine. Even though there’s a wide range, find one that has a maximum power output of 25 watts so it works with most common materials.
It’s important to remember the quality of your laser engraver reflects your business so don’t choose the cheapest option. This is especially crucial at the beginning because technical issues are inevitable.
Establish Your Business Plan
Create a detailed plan of your business during the planning stage. Outline your business’s vision and mission whether it’s about how many items you sell or your geographical reach. You must also include estimates of your startup and running costs based on research. Throughout the process, record your expenses and inflows so you know when you’ll break even.
Then, figure out your target audience, what they like, their pain points, and what you can offer them. Now you can start brainstorming laser engraving business name ideas. You should check whether your chosen brand name is available as a website and buy it so you can use the domain later on.
Become A Legal Entity And Tax Compliant
Create a limited liability company or LLC, so you’re not personally liable should a problem arise. If not, you can start your small business as a sole proprietorship and start attracting customers. You must then figure out the legal requirements for paying business tax.
Set up a business credit card as it protects your personal assets and lets you build up a strong credit score, a lifesaver if you need a loan in the future.
Because you’re buying and operating laser machines, there are potential risks so you must keep your business safe. Find the best insurance options for your business to protect you and your staff.
One of the most important insurance policies is the general liability insurance. This covers you from libel, slander, and injuries caused to customers from your products. You should also consider purchasing product liability insurance.
Create A Strong Brand Identity
A strong brand identity is the lifeblood of a business, everything from the logo to the color palette. If you’re unsure how to create a visual identity, hire a graphic designer to help you so you can use it on your social media channels and website.
You should also create a blog for your product so you can reach more audiences online. In fact, 91% of marketers use content marketing to promote brand awareness, proving it’s a powerful tool.
Post about your product, your business story, and write informative articles to drive traffic. Remember to optimize your content for search engines with relevant industry keywords so your posts rank higher.
And don’t forget traditional marketing methods. If there are any local events involving your target market then contact them for further details. For instance, if you’re making jewelry then set up a stand at a local handicraft market to reach a larger customer base.
Is Laser Engraving Business Profitable?
Now you know the answer to “is laser engraving business profitable?” There’s a huge market for laser engraved goods whether it’s the jewelry or automotive industry. Before producing items, create a business plan, know your target audience, and become a legal entity.
Once you’re set-up, create a strong web presence and brand identity so you can further your reach. Good luck!
Did you find this article helpful? If so, check out our posts on everything from business to technology.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.