It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of a 3-D printing service while showcasing the expected financials and operations over the next three years. 3-D Printing Service, Inc. (“the Company”) is a
1.1 Products and Services
The 3-D Printing Service will provide services related to large scale component plastic mold printing, single item 3-D printing, and related services. The business intends to acquire state of the art of 3-D printers that will allow for most large scale plastic printing needs.
The business will earn ancillary fees for jobs that are extremely large or extremely complex in nature and require additional work.
The third section of the business plan will further describe the services offered by the 3-D Printing Service.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate. The financing will be used for the following:
Development of the Company’s 3-D Printing Service location.
Financing for the first six months of operation.
Capital to purchase state of the art 3-D printers.
Mr. Doe will contribute $10,000 to the venture.
1.3 Mission Statement
3-D Printing Service’s mission is to become the recognized leader in its targeted market for specialized plastic model printing services.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the printing industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and small businesses within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
3-D Printing Service, Inc. The Company is registered as a corporation in the State of
2.2 Required Funds
At this time, the 3-D Printing Service requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of 3D Printing Service, Inc.
2.5 Exit Strategy
If the businesIf the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of 3D Printing Service, Inc. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
3.1 Large 3-D Printing Services
The primary function of the business is to produce three dimensional plastic models produced from CAD files (primarily STL files) on behalf of individuals, small businesses, and large corporations. Through its state of art 3-D printers, the business will generally be able to produce 3D models that are three cubic feet in size.
The company will also be able to provide mass scale 3-D printing for orders that exceed the Company’s in-house printing capabilities. Mr. Doe is currently souring a number of other 3-D printing companies that will provide these services on behalf of the Company.
3.2 Small 3-D Printing Services
In addition to the Company’s large scale printing capabilities, the business will also able to provide small single scale productions of 3-D models. This is an important part of the business because it provides a predictable stream of revenue from its high transaction volume. Some individuals that have produced a unique design want to have the item produced on a single item basis. As such, the business will be able to generate substantial business from the general public that design items on a hobby basis.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the specialized printing industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic market condition in the
4.2 Industry Analysis
The industry has undergone significant changes in the last five years as specialized printing technology has allowed smaller businesses to acquire 3-D printing equipment. Newer 3-D printer technology coupled with the increase in the number of technology manufacturers has significant driven down the price of this type of service. However, the price of large scale 3-D printing equipment has remained high as small businesses and home based businesses do not have a regular need for this type of service.
4.3 Customer Profile
Common traits among clients will include:
Is a small or medium sized that is in need of large scale 3-D printing and modeling services.
Has a 3-D printing budget of $1,000 to $25,000.
Is located within 200 miles of the Company’s location.
May place order via the Internet by sending STL (3-D printing) files with the intent to receive the items via mail.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
3-D Printing Service intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Company.
5.1 Marketing Objectives
Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
Establish relationships with commercial printers that do not offer 3-D printing services within the targeted market.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the 3-D Printing Service to easily target individuals and businesses within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public.
The 3-D Printing Service will also use an internet based strategy. This is very important as many people seeking local services, such as outsourced 3-D printers, now the Internet to conduct their preliminary searches. Mr. Doe will register the 3-D Printing Service with online portals so that potential customers can easily reach the business. The Company will also develop its own online website.
The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the 3-D printing services that the Company is selling.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
The 3-D Printing Service will have an annual revenue growth rate of 8% per year.
The Owner will acquire $100,000 of debt funds to develop the business.
The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. However, small business and individuals will need 3-D printing services in any economic climate, and the high margins generated from print brokering services will ensure that the Company can remain profitable and cash flow positive at all times.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis
How to Start a 3D Printing Service
The first thing you need to do when starting a 3D printing service is to determine how much startup capital you need. For these types of businesses, the amount can vary greatly given that these can be operated as small home based operations or as large printing shops that can provide services to anyone in the world. A frequent question that we receive is how much does it cost to start a 3D printing service? Usually, we answer $50,000 to $100,000. We generally assume that the individual is seeking to develop a full scale and full service company. A substantial portion of these funds are directly used for furniture, fixture, and equipment purchases. You can assume that you are going to spend at least 50% of your startup budget on the equipment needed to run a 3D printing service.
Once you have determined how much capital you will use to start this business, it's time for the paperwork. Foremost, you should definitely hire both a CPA as well as attorney to determine the type of corporate structure that you will use to operate your 3D printing service. If you are going to be a single owner (or have a limited number of partners/investors), you can expect that these professionals will recommend that you use a limited liability company ("LLC") in order to carry out operations. However, there are exceptions to this rule so you should definitely have your CPA determine which type of corporate entity is right for your business. Once this step is completed, you and your CPA should determine which type of accounting software your business will use. It is imperative that these systems are put into place early as they will be used throughout the life of the business. It should be noted that once you determine which corporate entity you will be using, your lawyer or accountant should incorporate the business so that you receive your FEIN number. Prior to launching operations, you should have the appropriate workman's compensation and liability insurance policies in place.
As it relates to marketing, this is going to be one of your biggest upfront expenses related to your 3D printing service. Although this is a relatively new industry, the relatively low startup costs have driven a number of companies into the market. Additionally, many existing specialty prototyping and printing companies have also entered this market in order to add services to their existing offerings. As such, it is imperative for a 3D printing service to have an expansive marketing campaign that targets hobbyists, inventors, and prototyping firms. The upfront marketing costs are significant, but once your business has acquired clients - the ongoing need for a massive marketing campaign is minimal to moderate. Depending on the size and scope of your business, you can expect to spend $1,000 to $3,000 per month on traditional and online advertising.
Related to creating visibility for your 3D printing service, there is a strong need to have a substantial website. This online platform will need to showcase your business, your 3D printing services, hours of operation, and costs. Many large scale companies that provide this service often have online ordering capabilities where to-be-printed files are uploaded to the online platform. For any new business entering the 3D printing space, it is important that your website is able to readily accept large STL files as well as other CAD related inputs. This will help your business differentiate itself from larger competitors. Additionally, some companies have developed proprietary applications that can accept files from popular mobile devices and tablets. This is becoming common place among companies that offer 3D printing services.
In regards competition, one of the ways that 3D printing services are able to remain competitive is by using the latest in printing technology and design software. As this is a constantly changing industry (from a technological and operating perspective), it should be noted that you will most likely need to make continual investments into your 3d printing equipment. This will need to occur on a yearly basis.
If you are raising capital for your 3D printing service then you are certainly going to need a business plan. The primary ways that most entrepreneurs raise capital for these types of businesses is through private investment or a SBA loan. If you are seeking private investors then you are going to need to determine how much of a percentage you are willing to provide to a private funding source in exchange for the capital you need. When approaching the SBA and a bank for a business loan, you are also going to need a well drafted business plan. Central to this document is how you intend to repay the loan even if things do not go as planned with your 3D printing service. Most importantly, you need to showcase what you exactly intend to do with the money they are lending you. Banks do not often lending substantial sums of money for working capital purposes. As such, you need to clearly define the tangible assets that you will be purchasing that can be used as collateral. Your business plan should also focus on industry research that is specific fo a 3D printing service.
Another factor to consider when starting a 3D printing service are the employees that you will need in order to carry out operations. Your attorney should have an employee manual drafted that states, in no uncertain terms, how employees need to act, dress, and work at your facility. This will create a strong legal protection for you in the event that things do not go as planned. For most 3D printing services, employees involved in the business primarily consist of a fabricator, sales person, and bookkeeper. The number of employees you hire depends on the initial scope of the business you are launching. Usually, most 3D printing services start with the owner doing most of the work initially while ramping up support staff. An on-staff 3D printing manager is usually the last person to be hired.
Your 3D printing service will generally not need a large storefront or retail styled location. As discussed earlier, these businesses are usually found online, and you can anticipate that not many customers will come directly to your location in order to have 3D prototyping completed on their behalf. As such, finding an affordable industrial park location may be suitable for your business operations.
For early revenue growth, one of the common ways that 3D printing services get off the ground is by partnering with machining and prototyping companies. These businesses do not often have the capital to invest in large 3D printers. As such, beyond attracting business from individual users, these companies can provide you with highly predictable purchase orders that you can count on a regular basis. These types of accounts are especially important if you are looking to raise capital in the future. Banks and lenders love to see highly predictable streams of revenue generated from these businesses. As such, if you are able to develop ongoing accounts then you will be in a much better position to expand during your first five years of operation.
In closing the steps for how to start a 3D printing service is as follows:
These are great businesses to start given the low cost operating infrastructure and high gross margins generated. You can anticipate gross margins in the 70% to 85% range with pre-tax profit margins of 20% to 30% depending on your overhead costs. As such, once these businesses are profitable, they can be easily scaled.