Starting a Business with a Laser Cutting Machine: The Ultimate Guide

Thanks to amazing advances in technology, laser cutters have become accessible and affordable for small business owners and entrepreneurs. With some startup capital and knowledge, laser cutting can be an extremely lucrative business opportunity. This comprehensive guide covers everything you need to launch a successful laser cutting business.

An Introduction to Laser Cutting

Laser cutting uses a high-power, concentrated laser beam to cut through materials like wood, plastic, glass, and metal. A CO2 laser, one of the most common types, directs a focused beam at the material. The intense heat of the laser melts, burns, or vaporizes the material along the cut line. Compared to tools like CNC routers or waterjets, lasers provide remarkably clean, precise cuts with no blade force or splashback.

Laser cutters are highly versatile tools with applications across many industries:

  • Cutting parts, prototypes and production runs
  • Engraving designs, logos and textures
  • Custom signage, decor, and lighting
  • Architectural models and sculptures
  • Stencils, puzzles and board games

For creative entrepreneurs and inventors, a laser cutter can be the foundation of a highly profitable fabrication business. With some business savvy and tireless self-promotion, laser cutting can become a full-time, successful enterprise.

Choosing Your Laser Cutter

The first major step is selecting and purchasing the right laser cutting machine. Here are key factors to consider:

Laser Power and Cutting Area

Higher power lasers can cut thicker and stronger materials much faster. But they also require more workspace, ventilation, and power. Consider the types of materials and projects you‘ll be working with, and choose a laser with adequate power and cutting area.

For example, a 60W CO2 laser with 18 x 32" bed (like the OMTech Orion series) can handle most typical small business jobs. For cutting very thick steel or tackling industrial work, a 100-150W fiber laser with larger bed would be recommended.

Machine Cost

Laser cutters range tremendously in price. Hobbyist machines can start under $10,000, while heavy duty industrial fiber lasers run over $100,000. As a starting small business, you‘ll want find the "sweet spot" – an affordable but robust machine in the $5,000 – $20,000 range.

Well known, reputable brands like Epilog, Trotec and OMTech offer excellent laser cutters suited for small businesses. Having strong technical support can be crucial when starting out.

Ongoing Operating Costs

Factor in running costs for electricity, replacement parts, exhaust systems, and cooling water (for CO2 lasers). Higher power lasers generally have higher electrical and cooling demands, so keep operating costs in mind when selecting your machine.

Lease vs Buy

Purchasing a laser cutter requires significant upfront capital. But some suppliers offer lease-to-own financing options with smaller monthly payments. This can greatly reduce your initial investment in the business.

Setting Up Your Laser Cutter

Properly setting up your new laser cutter takes careful planning and preparation:

Space Requirements

Make sure to allow adequate space around the machine for access, ventilation and materials flow. Avoid cramped spaces. Most systems require ducting to the outside to remove exhaust fumes, so have a plan for the duct routing.

Electrical Power

Laser cutters require significant electrical power, often 220V circuits. Have a licensed electrician install a dedicated, grounded circuit for your machine.

Exhaust System

A fume extraction system is vital for safe, pleasant operation. Portable or central filtration units feature HEPA filters to capture smoke, fumes and particles generated by laser cutting. Proper ventilation improves cut quality and prevents buildup of flammable gases.

Cooling System

CO2 laser tubes produce a lot of excess heat and must be actively cooled to prevent damage. Options are air cooling or water cooling with chillers/recirculators. Make sure cooling pumps have backup power to avoid downtime from outages.


Laser cutters run on specialized software like LightBurn, which allows you to set up your cut paths, engraving patterns, speeds and power settings. Most machines come with software licenses included.


Precisely calibrating a laser cutter maximizes cutting accuracy and quality. Perform careful axis alignment and beam calibration when setting up your machine.

Safety First

Running a laser cutting business comes with serious safety considerations:

  • Wear appropriate eyewear at all times to protect your eyes from the intense laser beam radiation.
  • Use fume extraction and breathing masks/respirators to avoid inhaling harmful smoke and particulates.
  • Keep a fire extinguisher on hand and be mindful of flammable materials, as lasers can easily ignite them.
  • Locate laser cutters in their own safe, isolated rooms away from children, high traffic areas, or combustible items.
  • Post clearly visible warning signs on laser rooms to prevent accidental entry and exposure.
  • Thoroughly train all employees on proper machine operation, hazards, and emergency procedures.

Attracting Laser Cutting Business

To be successful, you need a steady stream of business. Effective marketing of your laser cutting services across several channels is key, including:

  • A professional website showcasing your capabilities and portfolio of finished pieces.
  • Networking with potential clients like construction firms, hardware stores, interior designers, schools, and other local businesses.
  • Promoting your business on social media platforms like Instagram and Facebook.
  • Offering promotions and discounts to first-time customers.
  • Partnering with complementary businesses like sign shops for customer referrals.

Consider offering free basic samples to showcase your quality. Be sure to highlight your rapid turnaround and ability to handle both small and large jobs.

Pricing Your Laser Cutting Services

Establishing competitive but profitable pricing for your laser cutting services is crucial. Consider all your operating costs like materials, labor, consumables, marketing expenses, and machine lease/loan payments. Then factor in your desired profit margin. You can charge per hour shop rates, or provide project-based pricing. Offer tiered pricing plans for high, medium and low-volume customers. Value-based pricing considers the finished product value, not just time spent cutting.

For example, a competitive rate for a new CO2 laser cutting business might be $75-150/hr shop time plus $0.25-$2 per cut inch, depending on materials. Offer 10-20% discounts on higher-volume work. Review pricing annually and adjust as needed.

In Summary

Launching a laser cutting startup takes significant capital, effort, skill and safety considerations. But the versatility of computer-controlled laser cutters also opens up diverse business opportunities across many industries. With smart planning and entrepreneurial drive, laser cutting can become a fulfilling and financially sustainable career.