Laser cutting refers to the technology or practice of utilizing laser to cut materials, mostly for industrial manufacturing purposes. However, there is a growing need for laser cutting machines in recent years. Even some small businesses, hobbyists and schools are known to show significant interest in this technology as well. This reason became the driving motivation for many people today to know more about the laser cutting industry.
Also known as etching or engraving, laser cutting is now considered in the science community as one of the coolest and reliable methods of bringing a design to life. While it may sound like it’s coming from a sci-fi movie, we must start to accept the fact using lasers as cutting tools is not an impossibility anymore. There is now a growing industry due to this unorthodox concept. Contrary to popular belief, laser isn’t actually that powerful – but they can produce sufficient power to vaporize and cut through solid materials like a sheet of steel.
But before you get overwhelmed with all of the possibilities associated with laser cutting, you must first educate yourself on how an average individual like you could be a part of it. Is it only for rich people?
If you have a dream of managing your own laser cutting business, here is a step-by-step guide that you can follow through to ensure your eventual success:
- Step #1: Start with a plan
- Step #2: Establish a legal entity
- Step #3: Register for Taxes
- Step #4: Open up a bank account for your business
- Step #5: Process all the necessary permits and licenses
- Step #6: Avail a business insurance
- Step #7: Choose a reputable laser cutting machine provider
- Step #8: Create a presence online
- Final Thoughts
Step #1: Start with a plan
Regardless of what type of business you’re opting to create, it is highly imperative for you to start out with a plan. Every successful business owner would most likely mention careful planning as part of their success. As for your future laser cutting business, take some time to do extensive research in answering these essential topics:
- The name of your business/Your brand.
- Your target markets.
- The initial costs.
Take note that choosing a name for your business is a crucial one. It will be the main identity of your company, so make sure that it will sound compelling and easy to remember. You should also try to check whether your business name is still available as a web domain so that no one else may take it from you.
For your target market, you can look for people who are involved with trophy making businesses, wedding invitations, and if you’re bold enough, you can go for those working around automotive, mobile, electronics, and jewelry industry. When a specific target market, make sure to consider the possible materials, prices, and time that you need to commit to finish each project.
The initial costs for aspiring laser cutting business owners could reach a minimum of $10,000. This amount could be used to purchase the basic resources such as a laser system, computer, and other important software. Just a little disclaimer that the mentioned figure doesn’t account for your place of operations or for hiring employees for additional manpower. If you already have a studio or garage that’s been unused for ages, then you can use the space to save money.
Step #2: Establish a legal entity
Now that you have everything planned out, it is time to make your business entity a legal one. Forming a legal entity can maintain the separation of your business and personal assets as well as enjoy any tax benefits.
Step #3: Register for Taxes
Regardless of your country of origin, you will surely need to register in a set of either state or federal tax requirements before you open your business.
Step #4: Open up a bank account for your business
Having a business bank account enables you to record your expenses and other sources of income. This way you can have a clear understanding of how your business performs in the aspect of finance.
Step #5: Process all the necessary permits and licenses
Permits and licenses make your business safe from any substantial fines that could ruin the cash flow of your business. In worse cases, businesses that operate without permits could result in total closure and seizing all of your business properties.
Step #6: Avail a business insurance
Ensuring your business protects it from any losses in case of unexpected events like property damage, legal liability, employee-related risks, etc.
Step #7: Choose a reputable laser cutting machine provider
In order to provide the highest quality of service, you will also need high-quality resources. Have a search on the best laser cutting systems manufacturers online and see what they can offer for you.
Step #8: Create a presence online
Your customers would most likely come from online referrals and those that are looking for companies similar to yours. Take advantage of different online platforms to spread the influence of your brand.
Owning a laser cutting business is not as difficult as you might think. With enough knowledge, determination and patience, you can eventually gain your foothold in the world of laser cutting industry.
Sean Felix Lim is an author for ten years now and has contributed a lot of his works with industry analysis research for different modern technologies manufacturing companies. He is also a professor and currently teaching Economics.