This is a laser machine, or some may call it a money printing machine.
And with one, I'm going to try to start a laser engraving and cutting business in seven days.
I'll be going over the whole process, from designing to engraving to marketing.
With people reportedly making tens of thousands of dollars, let's see how much money I can make.
The first thing we need is a laser machine.
A laser machine uses a laser to engrave and cut material.
It can be used to personalize and create a bunch of different products, from coasters to signs, to cutting boards, to art, to the list is basically endless.
That's what makes it a great tool to earn money with.
I've been looking into a laser machine to buy and came across a brand called Xtool.
They offer a variety of laser machines for beginners to pros.
Hmm, which one should I get?
This is the P2, their flagship CO2 model.
It looks insane.
It's laser is straight up cutting that wood like butter and No way.
It can engrave on a toothpick?
What?
It costs $4,500.
Woo!
And on that note, how much is it going to cost to start a laser engraving and cutting business?
To calculate, I'll be using this business startup calculator spreadsheet.
Let's start with equipment.
As mentioned, XTool offers a variety of laser machines, ranging from $500 to $4,500.
Being new to all of this, it's probably best I start with one on the lower end, but the toothpick, the P2, looks like it will give me the most flexibility.
So I think I'm going to go with it.
I also kind of just want to go all out for you guys.
Next software.
This will cost $0 as X tool offers its own free laser machine software for marketing.
Assuming I run paid ads for six months to kickstart the business, I'm going to budget in at least 180.
$1 a day for 180 days.
For inventory costs, it'll depend on the materials I need to create my products.
For now, I'll just allocate a budget of $200.
Finally, other costs.
I'm planning to sell my products on Etsy.
It is an online marketplace that focuses on arts and crafts, and they charge 20 cents per listing.
Assuming I publish around 50 listings, I'll be paying $10 in listing fees.
In total, it's looking like this laser business will cost me $4,890 to get off the ground.
It is quite an investment, but once I break even, the laser machine essentially becomes a money printing machine.
The question is, will I break even?
I guess there's only one way to find out.
And now we wait for it to arrive.
In the meantime, if you're thinking of starting your own laser business or really any business you can download the business startup calculator spreadsheet I used for free.
The description it's actually a part of a free business startup kit that comes with eight other templates to help you start a new business.
These include a business name brainstorming workbook, a business plan template and a marketing plan template.
I'll be using these to build my new laser venture.
These templates were made by hubspot, which is today's video sponsor.
A big thanks to them for providing these useful resources.
The laser machine arrived and it was huge.
Luckily i had my friend to set it up with me.
Do we know what we're doing sean, Not really just figuring it all out?
We eventually figured it out and got the machine up and running.
It was now time to put it to the test through three challenges, starting with level one, cardboard.
Using XTool software, I was able to see a live preview inside the machine and placed a vector of a heart on the cardboard to cut up.
It was go time.
Boom, baby.
This is fire.
Level two, chopstick.
This was a test in engraving wood and accuracy.
And it killed it.
Finally, level three, toothpick.
The moment of truth.
Was it real?
Oh, crap.
It lasered into the metal.
I clamped down the toothpick and tried again.
It's real!
With the laser machine ready to go, it's time to get to business.
I need to decide on a product to create and sell.
To help select my first product, I have three criteria that I want it to meet.
Number one, it is a B2B or wedding product.
Products made for businesses and weddings typically sell for more compared to regular products for the everyday customer.
This is because businesses and weddings have greater needs and are willing to pay a premium to meet those needs, AKA higher profit margins for me.
Number two, it is easy to ship.
Since I'll be shipping these products out myself, I would prefer the product not to be too big or bulky.
This will make packing easier, lower the risk of damage in transit and reduce shipping costs, which will benefit both the customer and my sales.
Number three, it takes advantage of my laser machine.
With the P2, I have a competitive advantage of being able to create products that many other laser machines out there can't.
I'm gonna try to find a product that makes full use of my laser machine's strengths.
I spent the rest of the day searching on Etsy and Google for that perfect first product.
Eventually, I settled on business signs.
They are a B2B product, are relatively easy to ship and take advantage of my laser machine's large bed size and high accuracy.
But first, I need to see if I know how to even make one.
Today, I'm gonna make a prototype sign.
To start, I won't be using wood, but rather a cheaper material to practice with, cardboard.
Secret tip, you can get tons of free cardboard and boxes at Costco.
They give them out like free samples.
I'm going to begin with a large piece of white cardboard, cutting it into three smaller pieces so that it could fit inside my laser machine.
Using Adobe Illustrator, I designed my sign and exported it as an SVG file to be dragged into XTools software.
I'm going to adjust the size and have everything cut on one of my smaller cardboard pieces.
What I'll end up with is a backing with letter cutouts and the letters themselves.
Next, I'm going to load two more cardboard pieces in, but just cut out the backing.
I'll then have all the ingredients I need to spray paint.
I'm going to apply several coats of red onto one plain backing piece and let it dry.
Then I'm going to place the backing with letter cutouts on top and use it as a stencil to glue in the letters.
Oddly satisfying, isn't it?
I'm now going to lift up the backing with later cutouts and actually apply glue on it as well as on the last backing piece.
I have to sandwich everything together.
And presenting my sign.
You gotta subscribe for this.
I think it turned out amazing and was a great practice run.
While the steps will be slightly different with wood, this experience really showed me what it takes to create a business sign.
And that's the thing.
It's too much work.
While fun, I can imagine business signs being tough to scale.
I think I missed a fourth criterion for my product, and that is it is easy to make.
Running a laser engraving and cutting business is not like print on demand or drop shipping.
I'm not ordering products from a factory.
I am the factory.
I have to make the design, source the materials, engrave and cut the product, assemble it and ship it out myself.
While this process lets me keep more of my revenue, it's best if my product is easy to make to reduce the workload.
I don't think business signs are gonna work.
I am in trouble.
I am nearing the end of the challenge and I don't even have a product yet.
I gotta figure something out.
The thing with the laser machine is that it's easy to get stuck in analysis paralysis.
Because it's possible to make so many different products, it's hard to decide on only one product to sell.
But maybe that was what I was doing wrong.
On day six, I hustled my idea out.
I went to the store and bought the proper materials I needed.
I got to lasering, took photos, and quickly set up a new Etsy store and listing.
Or should I say, listings.
Currently, I have several different products listed up on Etsy in hopes that I make sales with one or a couple of them.
I'm gonna keep them a secret for now because, while today is day seven, I am not ending the challenge.
Honestly, going into this challenge as a complete laser noob, I didn't expect to make money in these short seven days.
Now is when the real challenge begins.
I'm gonna work on this business for however long it takes me to find success.
It might take 30 days, 90 days, six months.
I don't know, but I'm invested.
Like literally, I have to make back that $4,890.
Oh my God, I got an order.
I'll see you in part two.
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Peace out.
