Plea for advice with THE rude question

[George Elston]

We have recently purchased a VersaLaser 200 30W with the "fine attachment" which should halve the beam and double the power. I have contacted Embroidery and silk screen shops, that want to show samples and take orders for us, and several photographers (for engraved marble and frames), other artisans in the area (glass and stone) are very excited and should provide business. A Party rental store wants a sample case with everything from laser cut and embossed invitations, to laser engraved soap, and wine glasses etc. There are a couple of other laser etchers in town (West Palm Beach, FL) but they are at sign shops and don't go after other business. I also have people asking about etching laptops and mp3 players. And thanks to all the people here that have contributed great advice.

Now the problem, we have invested a lot in this venture, (and still have a little left), but it's time to fish or cut bait, and the plan was to push the business full time and fly or die as they say. BUT, an old friend has offered me full time employment and I am tempted to take it and work the business in my "spare time". I should mention also that I have worked with lasers for the last ten years, but to expose printing plates, (different animal, but I know the breed). I ran the graphics dept for a national printer, until our local plant was closed, so I have computer graphic skills and know the software.

So...... the RUDE question! I know there is more experience here than I could gain in a hundred years. So if you guys and gals can't give me a clue it's not to be had. We need to net about 6K a month, to pay all the bills, (personal and business) the job offer would not quite do that, but it would provide a big portion.

What is a realistic figure for the first year, with 2 people, 1 small laser and lots of energy and desperation? As opposed to working to build the business weekends and spare time? I should mention that the JOB is running another print shop, it's 60 miles away and is 10-12 hrs a day plus drive, so not much spare time.

So... should I take the easy safe road and go work for my friend, or stick to the plan and build the laser etching business or go down in flames? I would rather take my chances, but I'm hoping that I can show my wife some numbers that will help my case.

I hope y'all can give me some advice, either way. I promise to show my wife ALL answers. I have to give an answer on Mon. and the Laser arrives May 10th. God Bless you all.
And thanks again

George

[Scott Shepherd]

Hi George, I think you should take the other job and send me all your leads. I promise to take good care of them all

[Mike Null]

Take the job and build your laser business as you can with a good customer base. Words are nice to hear but orders convert to dollars.

Regular customers who re-order will determine your success.

[Nancy Laird]

Take the job and build your laser business as you can with a good customer base. Words are nice to hear but orders convert to dollars.

Regular customers who re-order will determine your success.

I totally agree with Mike--take the job and do the lasering on the side until such time as you get your business built up. We bought our first (used) laser about two years ago and started building our business, then managed to buy a second laser last fall. LOML and I both have full-time day jobs and we do this work at night and on weekends--and we managed to gross over $14K last year. We didn't get into this business to get rich or be able to retire on the job (as we both have SS and hubby has his military retirement), but when we retire at the end of this year, it will be nice to know that we will have that "little bit of extra" income to supplement and put our income at just about what it is now, without busting our butts to do it.

Nancy

[Joe Pelonio]

I agree with the others, take the job. I already had a steady sign busines when I added the laser, and even with the "built in" customers it took me 6 months before I made enough to cover the cost and start making money. I've had months where I made more than 6k in laser work but others that were a lot less.

You also have to be aware that some of your potential customers that you spoke to may fizzle out when it comes time to actually place orders.

[Keith Outten]

George,

You may want to consider your local economy and factor it into the equation. There are areas of the country that are suffering right now, a new startup business would be a tough go if this is the case.

The job offered by your friend doesn't seem to allow any spare time to work on a part time laser engraving business. Ten to twelve hour days with two+ hours of commuting time leaves little time to eat and sleep. If the other half of your team is your wife it would pretty much put the entire burden of bringing up a new business on her shoulders.

Last but not least I expect very few could pull six grand per month from engraving jobs alone with just one laser engraver. Just starting up adds more then just a challenge to an already tough job establishing a customer base.

.

[Mike Mackenzie]

George,

I would see if you can work a deal out to where you set-up the laser at this new job. If he is a friend that might work, then you can do your job as well as build the laser business and you can do it all in one place. Not to mention you will probably find things that need lasering at the new job or for there customers.

The only real problem I see here is when would you see your wife ! I know get her on the payroll as well .

[Larry Bratton]

George:
You use the term WE, I assume you mean you and your wife. Can she assist with running the business your developing while your working your other job?

I recently made a large (I consider nearly $30k to be large) investment in our laser. Although I have another business to provide our income, we wanted to build on something we could do together without having to hire other people. I looked at this as an investment in mine and my wife's future. I want her to have an interest and be able to do the laser business too, in case something were to happen to me. She would have a way to earn a living. The other business is something that she could not and would not be able to handle, this would be.

Yes, I agree with the others. With a $6k per month liability, that would be tough just starting up without something to fall back on. Take the job and then figure out how to go forward to grow the business without putting yourself in the "poor house" so to speak. Good luck!

[Charles McKinley]

Hi George,

The reason most start ups fail is lack of csh flow. You can even be profitable but not having CASH at a slow time will sink you.

It sounds like you have a lot of experience in the field but need some more business education. Look for the Small Business Development Center in your area. This is a Fedral program to help you get things started on the right footing. It is located in the business dept. of a university. They have a lot of information on line as well. Ask if they offer a Small business Jumpstart program. This will allow you to determine things like what is your "unit", fixed cost", variable cost, cash flow and breakeven point. Armed with this information you will be able to better judge if YOU can make it. Everyones' situation is different. Answering these questions your self will give you insite on how much you will have to make and how many widgets you have to crank out to hit that mark.

Good luck with your decision.

I wish you and your wife the best.

[Mike Null]

George:

There's quite a lot of equipment you'll need besides the laser. You could end up spending several thousand more for that and supplies.

[Craig Hogarth]

George:

There's quite a lot of equipment you'll need besides the laser. You could end up spending several thousand more for that and supplies.

That is no joke. I wish someone would have told me that a couple months ago.

[Keith Outten]

Why don't we put together a comprehensive list of supplies and equipment necessary to start a laser engraving business. I expect with such a large group we are unlikely to miss anything and a lot of people would benefit from such a list.

Who wants to start?
.

[Gary Hair]

George,
I am going to advise contrary to what everyone else has said. If you go at this endeavor part time it will most likely fail. Your "part time" sounds like it will be weekends only - again, this sounds destined to fail.

The only way you could make a go of it would be to do it full-time. But, if you don't have 12 months of expenses at your access then you are going to have a rough time of it. It still could fail but if you are generating some revenue then the 12 months of expenses could last for quite a bit longer than 12 months - make sense?

I say, fish or cut bait!

Gary

P.S. September 1st 2006 I quit my job. December 15th my wife quit her job. We are very glad we made those decisions and are positive it will work out - failure is not an option!

[Nancy Laird]

Why don't we put together a comprehensive list of supplies and equipment necessary to start a laser engraving business. I expect with such a large group we are unlikely to miss anything and a lot of people would benefit from such a list.

Who wants to start?
.

Keith, what a good idea! Can we start a new thread and make it a sticky for a while? It would probably help a LOT.

Nancy

[Mike Null]

George:

Mike McKenzie's idea is a sound one.

With the potential customer list you have shown us I truly doubt that you'll get $500 a month. These are not people who want to buy your product or service rather they are people who want to make money off your service. What you are doing is no more than an add on for them and if you try to get a fair price for your work you'll find that you aren't so welcome.

If you want to find out how committed they are to selling your service ask them to buy the samples.

Based on what you're telling us I don't think you have a snowball's chance in hell of doing $3,000 a month let alone $6,000.

Sorry to be so harsh but I don't want to see you make a big financial mistake.