How To Start A Laser Engraving And Cutting Business? [In 8 Steps]

Looking to venture into the laser engraving and cutting business? You've come to the right place!

Thanks to advancements in technology, laser engraving machines have become more compact, affordable, and accessible, making it easier for anyone to start a profitable business with one.

Our comprehensive step-by-step guide is designed to help you start your own laser engraving business. 

Step 1: Select a Laser Engraver

This step is crucial in starting a laser engraving business, as the laser machine is your biggest investment.

For beginners, a diode laser engraver is a great option due to its affordability. As the business grows, you can upgrade to a CO2 or fiber laser machine.

The xTool S1 20W is a great option for beginners. As your business expands, you can purchase a 40W diode laser module to improve engraving or cutting performance without having to buy an entire machine.

Step 2: Learn How to Use a Laser Engraver/Cutter

1. Materials and Testing

First, you need to know what materials you can engrave and cut with your laser machine. 

Before you start engraving, you need to do a speed and power test on a piece of that material. It will help you choose the optimal settings for engraving or cutting.

2. Laser Engraver Software

You also need to learn to use laser engraver software that run the machine. xTool machines have dedicated software, which is beginner friendly. You can also use LightBurn with xTool machines. It is an advanced software for experts.

3. Tutorials

xTool has a blog, video tutorials, and detailed guides that you can follow.

Moreover, you can also learn from some laser engraving and cutting YouTube channels. Some of them are Build Dad Build, LA Hobby Guy, and Paw Paw’s Workshop. You can see their videos and follow their tips, tricks, and hacks to get the best results.

You can also join the xTool’s Facebook group, where people share their projects and guide with each other. You will get to know a lot, and our moderators will also help you out if you are struggling with anything.

4. Safety

Safety is very important, and you need to take all safety measures before using the machine. 

Firstly, you should wear protective glasses to keep your eyes safe if you use an open laser machine or an enclosed machine without a light-filtering cover.

XTOOL S1

Class 1 Safe Laser Cutter

Best enclosed diode laser. Safe for home use. Ideal choice for both DIY and Business Projects.

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Keep the machine area clear. There shouldn’t be combustible materials near it. Moreover, never leave the machine unattended.

Another important thing is that you should never try a new material before you get to know about its composition and whether it is safe for laser or not.

You also need to make sure there is proper ventilation. Some materials might produce toxic fumes, so you should also know how to filter them and improve the ventilation of the area where you are using the machine.

With all safety measures, you are ready to start the engraving and cutting.

Step 3: Find the Profitable Niche

If you want to boost your sales and earn a handsome profit, you need to select the right niche for you laser engraving and cutting business.

There are many niches, such making customized gifts and décor items. These niches are very vast, so you can also narrow them down and pick something that is profitable as well as hot selling.

For instance, you pick the niche of décor items, but as it is a vast niche, you can narrow it down to signs, minimalist décor items, wall hangings, or wall clocks.

You can search for similar products on Etsy and other online marketplaces to get an idea of the demand of the market. You can also check what local businesses are selling in their stores and craft shows. Once you understand the potential of the product, you can start making it.

Step 4: Buy Materials & Design Files

For making any product, you need to buy suitable material. For instance, if you are thinking about creating an engraved photo, you need to select wood that will offer better contrast and has fewer visible grains.

Here are some sites of buying materials for your laser engraving business:

• HTV/Vinyl: Crafthtv
• Stainless Steel Cups and Powder Coated/Glitter Items: MakerFloCrafts
• Tumblers: Bare Tumblers, Bulk Tumblers
• Leather: Tribal Spirit Music
• Wood, Acrylic, and Other Materials: Maker Stock, Smokey Hill Designs, Woodpeckers

After materials, you also need the design files for the project.  There are pre-made design files available, and you can purchase them for your commercial laser engraving projects. Plus, you can also search for free design file websites.

You can also create the designs on your own, which allows you the maximized personalization. Below are some common design software.

• Inkscape
• Adobe Illustrator
• Photoshop
• CorelDraw

Step 5: Go to the Market

Selling products is the struggling step in starting a laser engraver business. You can make dozens of products, but if you can’t sell them, your effort is useless.

First, you can try selling products on Etsy. Other than Etsy, you can try Amazon, eBay, or other marketplaces. If you have a blog or website, you can also promote your products there.

Social media is the best place to kickstart your laser engraving business. You can create a brand-new page and then start promoting your products. With the help of paid advertising, you can gain a lot of customers, given that you know how to use Facebook ads or you have a particular person for that.

Another way to get instant sales at the early stage is through the help of friends and family. You can tell them about your products and ask them to promote them through social media or word of mouth.

You can also visit the nearby shops, restaurants, and businesses to show them your product range and how you can customize products for them.

Attending craft shows can also be a great marketing strategy for your laser engraving and cutting business. Craft shows attract a specific group of people who are interested in unique, handmade products. By attending craft shows, you can reach this audience and showcase your products to potential buyers.

Step 6: Pricing

First, you need to keep the material cost in mind. You have purchased the material, so make sure how many items you can make from it. After the material cost, you need to add advertising cost, electricity cost, shipping cost, packaging, and whatever the expenses are. You also need to keep in mind that the laser machine you are using is a big (while worthy) upfront investment, so you also need a return for that.

Once you determine the cost of making the product, you can set a suitable retail and wholesale price. Make sure there is enough margin to cover your own labor cost and machine investment. Try to keep the price as reasonable as possible.

Step 7: Grow Your Laser Engraving Business

When you want to make a living through the laser engraving and cutting business, you need to grow it gradually. For growth, you need some reliable customers or partners.

If you are making customized gifts and items, you can contact companies and businesses and tell them about the customized gifts and boxes you make. They might ask you for special corporate boxes, keychains, pens, or anything they want.

You can contact nearby schools and show your engraved products. It could be wooden alphabets and numbers, wooden toys, building blocks, DIY toys, etc. 

Nearby stores also require wall clocks, toys, customized items, décor items, and many other things. You can show your product range and ask about their requirements.

The more reliable customers and partners you have, the more reliable your business will be. You will have a constant income stream.

Step 8: Improve Your Productivity

Once you have reliable customers, a healthy online seller profile, and constant orders to work on, it is time to scale your business. You need more machines to increase productivity.

If you have a 10W or 20W xTool S1 diode laser machine, you can get a higher power laser module and other accessories, such as rotary attachment. You can also get the infrared laser module to engrave more objects.

You can also get a CO2 laser machine as it is capable of cutting and engraving a wider range of materials. It has the potential to increase your product range. Upgrade your existing machine and buy new ones gradually, then you can quickly scale your business and increase productivity.

XTOOL S1

Best Entry-level Laser Cutter for Business

Best enclosed diode laser. Safe for home use. Ideal choice for both DIY and Business Projects.

Learn More