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Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on January 27, 2022
Investment range
$7,050 - $16,100
Revenue potential
$130,000 - $650,000 p.a.
Time to build
1 – 3 months
Profit potential
$100,000 - $200,000 p.a.
Industry trend
Growing
Commitment
Flexible
Here are the most important things to consider when starting a 3D printing business:
Starting a 3D printing business has pros and cons that you should consider before deciding if it’s right for you.
The US 3D printer manufacturing industry has strongly recovered from the pandemic slump. The opportunity is there for the bold entrepreneur to jump in and ride the wave.
Trends
Challenges
Startup costs for a 3D printing business range from $7,000 to $16,000. The highest costs are the printer itself and the 3D design software. The high end reflects purchasing a more expensive printer with better functionality. Other than those items, you just need printing materials such as plastic or metal, in addition to enough space to create a small studio.
You could also take an online course through a site like Udemy for less than $30. Courses are self-study and can be completed in 4–8 hours.
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| Setting up a business name and corporation | $150–$200 | $175 |
| Business licenses and permits | $100–$300 | $200 |
| Insurance | $100–$300 | $200 |
| Business cards and brochures | $200–$300 | $250 |
| Website setup | $1,000–$3,000 | $2,000 |
| 3D Printer | $3,000–$7,000 | $5,000 |
| Design software | $2,000–$4,000 | $3,000 |
| Materials for printing | $500–$1,000 | $750 |
| Total | $7,050–$16,100 | $11,575 |
Prices for 3D prints vary greatly depending on the complexity but can range from $30 to $1,000 or more. If you specialize in prototypes, designs are likely to be complex, so these calculations will assume an average price of $500. Your profit margin after the cost of materials should be around 80%.
In your first year or two, you could work from home and sell five prints a week, bringing in $130,000 in annual revenue. This would mean over $100,000 in profit, assuming that 80% margin. As your brand gains recognition, sales could climb to 25 prints a week. At this stage, you’d rent a commercial space and hire staff, reducing your margin to 30%. With an expected annual revenue of $650,000, you’d make nearly $200,000.
There are a few barriers to entry for a 3D printing business. Beyond mastering the 3D printing process, your biggest challenges will be:
Now that you know what’s involved in starting a 3D printing business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Research 3D printing businesses in your area to examine their services, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a 3D prototype printing business.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as 3D printed toys.
This could jumpstart your word-of-mouth marketing and attract clients right away.
Your services will depend on the capabilities of your 3D printer. If it has advanced capabilities, prototypes will be your highest-priced services. However, you should probably offer a wide range of services to maximize revenue.
There are several ways to make money with 3D printing, including:
Overall, there are many opportunities to make money with 3D printing, and the field is constantly evolving. By staying up to date on new technologies and trends, building a strong reputation for quality and reliability, and finding a niche in the market, you can create a successful 3D printing business.
Prices will vary based on the complexity of the print and the materials used. Complex items may cost $1,000 or more. You’ll price products on a case-by-case basis. When you’re working by yourself and from home, you should aim for a profit margin of about 80%.
Once you know your costs, you can use our profit margin calculator to determine your markup (also, use our Markup Calculator) and final price point. Remember, the price you use at launch should be subject to change if warranted by the market.
If you do mostly prototypes, your target market will be entrepreneurs. You can find them on sites like LinkedIn. You could also partner with local business incubators and small business development centers to get referrals.
In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a production facility. Find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Here are some ideas for brainstorming your business name:
Discover over 370 unique 3D printing business name ideas here. If you want your business name to include specific keywords, you can also use our 3D printing business name generator. Just type in a few keywords, hit Generate, and you’ll have dozens of suggestions at your fingertips.
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a home inspection business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to 3D printing businesses.
If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your 3D printing business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
Choose Your State
The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online, or by mail/fax. Visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best options, other than friends and family, for funding a 3D printing business. You might also try crowdfunding since 3D printing is such a booming industry.
Starting a 3D printing business requires obtaining a number of licenses and permits from local, state, and federal governments.
It’s important to note that several states are considering a ban on the 3D printing of firearms. New Jersey already has such a ban in place. Be aware that additional regulations may be on the horizon.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health license and permit from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your 3D printing business as a sole proprietorship. Opening a business bank account is quite simple and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As the opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You can use industry-specific software, such as MakerOS, 3DPrinterOS, or All3DP, to manage your workflows, machines, quotes, and invoicing.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.
However, people are unlikely to find your website unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Here are some powerful marketing strategies for your future business:
Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your 3D printing meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your 3D printing business could be:
You may not like to network or use personal connections for business gain but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a 3D printing business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been in 3D printing for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in 3D printing. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a 3D printing business would include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
If you want to get into an industry that is growing by leaps and bounds, look no further. 3D printing is the market for you, expected to more than quadruple in size in the next few years.
Considering the potential money you could make, startup costs are a relatively small investment. It’s also a business with virtually unlimited growth potential, so your small at-home business could become something huge. Now that you understand what’s involved in 3D printing from a business perspective, get ready to launch your new business and start building a 3D printing empire.
Even with a small 3D printing operation at home, you could make six figures. 3D printing prices are customized based on the complexity of the print and can run upwards of $1,000 for complex designs.
The cost of 3D printers varies based on type, size, capabilities, and brand. Entry-level printers for beginners typically range from $200 to $600, mid-range models cost between $600 and $2,000, and high-end industrial printers start at $2,000 and can exceed $10,000.
The most common materials used in 3D printing are plastic, metal, resin, wood, composites, and ceramics.
The prices for common 3D printing materials are approximately as follows: PLA (polylactic acid) costs between $20 and $50 per 2.2 pounds, ABS (acrylonitrile-butadiene-styrene) is also $20 to $50 per 2.2 pounds, PET (polyethylene terephthalate) ranges from $30 to $60 per 2.2 pounds, Nylon varies from $40 to $100 2.2 pounds, and Resin costs between $50 and $150 per quart.
Yes, 3D printing can be a side hustle for individuals who are interested in making some extra income outside of their regular job.
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