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How to Start a Profitable Laser Engraving Business in 2024

How to Start a Profitable Laser Engraving Business in 2024

Is it possible to make money from laser engraving in 2024?

Yes!

Not only have we started and grown a successful laser engraving business on Etsy and Shopify, but we've also helped thousands of customers start and grow their own businesses with our best-selling laser engraving equipment and supplies.

In this article, you'll learn step-by-step how to start a laser engraving business (based on our experience and what we wish we knew going in!).

By the end, you'll have a clear plan for creating a business strategy, gathering the right equipment, and selling products for profit. 💰

Let's dive right in!

What's inside:

How to Start a Laser Engraving Business This Year: The Step-by-Step Guide

Before we dive in, we need to get something off our chest. Building a business is hard. It's not for the faint of heart. But if you have a deep desire to build a successful craft business, you can certainly do it.

It will take consistent action and a willingness to keep moving forward, even when you don't see any results (yet).

And while we like to create neat and tidy step-by-step guides like these, you must know that there is no straight line to growing a business.

These are the basic steps, but they are just a starting point. As long as you keep moving forward and finding new ways to help customers and get the word out, you can make it happen, too.

With that in mind, let's get into the first step of launching a new laser engraving business, which is taking a good look at what's already out there.

@makerflocrafts Need some Monday motivation? Check out this cute transformation on one of our powder coated wine tumblers 🤩😍 done by @Vigo and Co #makerflocrafts #engravedtumbler #winelover #winenot #new #inspo #MondayMotivation #do #create ♬ did i tell u that i miss u - adore

Step #1 - See what's out there

It's hard to know what products you should make, how you should price them, and how you should market your business without seeing what's already out there.

So before you do fun things like choosing a laser engraving business name and buying a laser engraver, take a step back and look around to see what businesses are already in the space.

How many laser engraving businesses are in your local area? What do they sell? What's their brand vibe? Where do they advertise and sell their products? What kind of customers are they selling to?

Visiting a craft fair or show can help you see what items sell and how much they cost. You might even be able to talk to the business owners to ask them for their experience or advice.

Or ask business owners for advice in our Official MakerFlo Facebook Community or r/Laserengraving on Reddit.

Just remember that if you're selling locally, you want to know what your community is willing to spend on laser-engraved items, not someone who lives 12 hours away in a totally different place.

RELATED: How to Sell at Craft Shows: 7 Tips to Make More Money

For now, just get a feel for what products are popular, how people market their businesses, general price ranges, and other details you pick up on.

Step #2 - Brainstorm business ideas

Now that you've seen what's out there, you can begin to dream up ideas for your own business.

Here are some questions to ask yourself:

  • What kind of products would you like to make and sell?
  • What kind of customers do you want to serve?
  • Where will you sell your products?
  • How will you get the word out?

And more realistically:

  • How much time are you willing to spend to get your business off the ground?
  • Will it be a side hustle, or do you plan to grow it into something bigger?

Finally, money questions.

  • How much do you need to make from your business in order for it to be worth it to you?
  • How much are you able to spend on equipment and supplies to get up and running?

Pro Tip: Your time is valuable, so we recommend factoring in the hourly rate that you'll be working on your business when thinking about your ideal income.

RELATED: How to Start a Successful Tumbler Business: 23 Expert Tips

Thinking through these questions now will help you plan for the time and cost commitment of running a laser engraving business. You don't want to invest in a laser engraving machine only to find out that it's not sustainable for you.

@makerflocrafts 👀 this amazing crafter while she uses her xtool f1 to engrave a whole 20oz skinny! #engraved #makerflo #xtool #F1 #laserengraving #20ozskinnytumbler #mondaymotivation #inspo created by @Miramontes Customz ♬ Come Check This (Quickie Edit) - FETISH

Step #3 - Choose a laser engraver

Pinky promise us that you've finished the previous step. You have? Great!

Now, it's finally time to choose a laser engraver.

(Of course, if you already have one, you can totally skip this step. Just make sure that your laser engraver can handle the kind of products you want to make.)

How to choose the right laser engraver for your business?

Start with what you are planning to make. We recommend thinking ahead to the next 3 to 5 years. If you might want to engrave jewelry in a year or two, it's probably better to get a laser engraver that can handle metal engraving.

Get all the details you need on laser types and laser engraving basics in our beginner's guide to laser engraving.

So which laser engravers do we recommend?

We love the xTool brand of laser engravers for small businesses.

The xTool F1 and xTool F1 Ultra are ultra-fast but can still handle a ton of materials for most small laser engraving businesses.

Check out the differences between the xTool F1 and xTool F1 Ultra to see which one might be best for you. Or see more of the best laser engravers for small businesses and best laser engravers for tumblers.

[product=xtool-f1-fastest-portable-laser-engraver-with-ir-diode-laser]The original super-fast and portable laser engraver from xTool.[/product]

[product=xtool-f1-ultra-laser-engraver]The faster and more powerful upgrade from the original F1.[/product]

Of course, these aren't the only lasers out there. It pays to do good research in places like Reddit or Facebook Groups. Or ask other local laser engraving businesses for their two cents.

RELATED: Everything You Need to Start a Customization Business This Year

Step #4 - Practice engraving and making products to sell

It's so exciting to unbox your very first laser engraver.

Don't be discouraged if it takes you some time to get used to the engraving process. Everyone has to go through this step.

To practice, you'll need some laser engraving blanks like cutting boards, tumblers, glassware, or other objects you want to customize.

Also, TruFlat products are the perfect way to get started as they're made to be perfectly flat (so that you're not dealing with wood that bows or bends). 

[product=wood-for-laser-cutting]The best wood for laser cutting!.[/product]

⚠️ Caution: If you don't choose a ready-made laser engraving blank (like the ones we sell!) make sure you choose a material that's compatible with your laser engraver and doesn't create toxic fumes. (All of our engraving blanks are safe!)

This is just a practice stage. You'll probably end up with some things you can't really sell, but you can keep them or give them to friends.

Here are some articles that can help you in this stage:

Don't be afraid to ask others for feedback as you experiment with different products and designs. They can give you some guidance on what they like and don't like.

But the real test is who will spend money on your products, and you won't know this until you actually start selling stuff.


Step #5 - Set up your business

Quick disclaimer here: We are not qualified to give legal advice. All of these ideas are just suggestions. You'll want to do lots of research to figure out how to register your business, what different options you have, and which might be best for you.

When you're ready to sell, it's good to make things official. You can choose a business name, register your business in your local state or municipality, and make sure you're licensed to sell products.

You might want to make business cards, choose some simple brand colors, and even set up a website or social media profile. But none of that is necessary, so don't worry about it if it feels overwhelming.

Step #6 - Start selling and testing product ideas

Once you're licensed to sell products, you can finally start making money from your creations! Take a moment to celebrate! 🎉

Our advice? Don't waste any time getting your crafts in front of customers. Try craft fairs, networking events, local markets, and more.

And you're not limited to craft and art shows. You can sell pet-themed crafts at pet fairs, attract real estate businesses to create custom merch at real estate trade shows, make Halloween products for Halloween events, and more!

RELATED: How to Sell at Craft Shows: 7 Tips to Make More Money

Everything you do from here on out counts as a learning experience. Some things might sell out in a day. Other products might sit on shelves until they start collecting dust on the shelf. You might lose money on a bad decision. That's part of business.

The most important thing is to keep an open mind and notice what people spend money on. Good observation skills can help you make good business decisions so you can continue to grow.

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Step #7 - Find a profitable niche

At this point, you've been putting your business in front of real, paying customers, and you're starting to get some feedback on what products people like and don't like.

You're starting to notice which designs, which items, which customers, and which events bring in the most money for your business.

Now, you can look at the data, reduce things that don't make money, and increase the ones that do.

For example, once you find out the type of customer that buys the most stuff from you, you can brainstorm more ideas of products they might like. Or if you always sell tumblers during back-to-school season, you can prepare more stock for the next year.

For example, we've really seen the popularity of selling things in a set. For example, a decanter set, matching coasters, or a charcuterie set complete with bowls and spoons. People love matching sets, and you can sell these for more of a premium than single, standalone products.

You can always adjust your niche, branding, and business strategies until you find the you-shaped space in the market.

You may think the market is totally saturated, but there's always room for new ideas! If you can find something of value that other businesses aren't doing yet, that's your best bet for staying ahead of the competition.

Step #8 - Experiment with new product ideas and designs

You never know when you might run into something that makes a lot of money for your business. Even when you know your top earners, it's great to add in new products to see what new things you can discover.

Here are some idea-packed articles to get your creative juices flowing:

@makerflocrafts Have you seen this new Xtool F1? It’s a portable laser cutter and engraver, with 2 powerful lasers! Check it out on our site for more details! #laser #laserengraving #diodelaser #portable #engraving #makerflo #makerflocrafts #xtool #xtoolf1 #gadgets #technology #smallbusiness #buildyourempire #fyp #foryou #tiktok #tiktokviral ♬ Epic - DM Production

Step #9 - Consider starting an online shop

Another way to increase your sales is by starting an online store on a platform like Etsy. We've written a guide to choosing Shopify vs Etsy for your online store.

This is totally optional! We recommend starting with in-person sales and figuring out your niche before investing in an online store.

Step #10 - Measure and improve your performance

This is optional, but if you want to grow your business more quickly, we recommend tracking your sales metrics. This is really easy when you use digital payment processors like Square, Shopify POS, or PayPal POS since they track all the data for you.

Every month, quarter, or end of the year, you can look back at your data and figure out what's what.

  • Which products are selling?
  • What time of the year is most profitable?
  • Are we increasing profits or slowly declining?
  • Are we making an ROI on our total investment?

This data is what helps experienced business owners make good decisions and keep growing their business year after year.

We do this, too, and we wholeheartedly recommend it to you!

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Is it possible to start a profitable laser engraving business in 2024?

Of course it is!

That said, it's not as easy as it was many years ago.

Nowadays, a lot of people are buying laser engravers and creating craft businesses. (And don't get us wrong, that makes our hearts very happy!)

BUT - since there are a lot more engraving businesses out there, you'll need to find a way to stand out.

That means very high-quality products, good service, and new product ideas or designs that other businesses aren't offering. It takes time to figure this out, but it's totally possible.

For example, we've found that fast and careful shipping and careful shipping makes us super popular with our customers.

Also, our gift-ready packaging saves our customers time because they can give the gift as-is without worrying about finding another box!

Since most of our laser engraving customers are buying products as gifts, we try to do everything we can to make the gift-giving experience as smooth and positive as possible.

Why start a laser engraving business?

Some people want to have a second stream of income or earn enough to quit their day job. Others just enjoy it for the fun of it, and any money they make is a bonus.

This looks different for everyone. What's important is that YOU know your reason for starting a business, and it's strong enough to keep you moving forward even when the going gets tough.

Frequently Asked Questions (FAQs)

What's the startup cost for a laser engraving business?

You'll buy:

  • A laser engraver, which can cost anywhere from $1599 for the xTool F1 to $5000 and above as you get into more advanced machines
  • Laser engraving blanks (price depends on what you pick, and you can get discounts when buying in bulk)
  • Other laser engraving equipment like an air purifier, safety goggles, and more

Find a list of things to prepare in our roundup of everything you need to start a customization business.

It's safe to say that you'll be investing around $2K or more for your initial setup.

Finally, you want to consider the cost of your time. If you were working for another job, you'd make an hourly wage or salary, so every hour you spend on your laser engraving is technically costing you that hourly wage. It's up to you if you want to pay yourself for the time you spend or not.

What do I need to start a laser engraving business?

You'll need a laser engraver, the proper safety equipment, and the blanks you want to customize! Here's everything you need to start a customization business.

How do I sell laser-engraved items?

You can sell online, in person, or a mix of both. For in-person sales, craft fairs and trade shows are great places to get exposure and start selling products. Learn how to sell at craft shows and how to start a successful tumbler business (though the advice inside that article would apply to almost any laser-engraving business!).

You can also place products in local stores or approach businesses and ask if they'd like custom merch or trinkets made. Online, you can try a platform like Etsy or something similar.

We recommend starting with in-person sales because it's easier to sell in person, get feedback in real-time, and find out what's selling.

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