3D Printing Business Plan Template
If you want to start a 3D Printing business or expand your current 3D Printing business, you need a business plan.
The following 3D Printing business plan template gives you the key elements to include in a winning 3D Printing business plan.
3D Printing Business Plan Example
I. Executive Summary
Business Overview
[Company Name], is a world-class 3D printing company in [insert location here], that focuses on providing high-quality 3D printing services to business entities, educational institutes, and other organizations. The Company uses the latest manufacturing technologies to build functional parts and prototypes in both metals and plastics. The Company aims to become one of the leading 3D printing companies in the area.
Products Served
[Company Name] will provide the following services:
- 3D printing
- Rapid prototyping
- 3D printing support services
- Selective laser sintering (SLS)
- Fused deposition modeling (FDM)
- Stereo lithography (SLA)
- Other related printing services
Customer Focus
[Company Name] will serve the community of [company location]. The Company will primarily offer its products and services to businesses, educational institutions and other organizations:
- Small Businesses-50%
- Government Organizations-20%
- High Schools, Colleges and Universities-20%
- Medium to Large Sized businesses- 10%
Management Team
[Company Name] is led by [Founder’s Name], who has been in the additive manufacturing and printing industry for [x] years. While [Founder] has never run a 3D printing company himself, he was the director of operations at one of the leading 3D printing and rapid prototyping services companies. As such, [Founder] has an in-depth knowledge of the 3D printing business, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is currently a high demand for technological advancements in 3D printing. In addition, the company surveyed the target market and received highly positive feedback pointing towards an explicit demand for the services, supporting the business after launch.
- The Company’s location is in a high-volume business area and will thus be highly convenient for its clients to contact the company for its services.
- The management team has a track record of success in the printing business.
- The 3D printing business is a proven business and has succeeded in communities throughout the United States.
Financial Highlights
[Company Name] is currently seeking $360,000 to launch its 3D printing press. Specifically, these funds will be used as follows:
- Design and build-out: $170,000
- Working capital: $190,000 to pay for marketing, salaries, equipment and supplies until [Company Name] reaches break-even.
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name], located in [insert location here], is a new, upscale 3D printing company focusing on providing professional and high-quality products to clients. The Company uses the latest manufacturing technologies to build functional parts and prototypes in both metals and plastics. The Company will offer world-class services in a way that it can compete in the highly competitive 3D printing and rapid prototyping services industry not only in the United States market but also in the global market.
The Company’s primary service includes all types of 3D printing services such as 3D printing, rapid prototyping, 3D printing support services, selective laser sintering (SLS), fused deposition modeling (FDM), stereolithography (SLA) and other related 3D printing and rapid prototyping services.
[Company Name]’s History
[Founder’s Name] is an entrepreneur with a passion for new 3D printing techniques. He has been in the additive manufacturing and printing industry for the last [x] years. [Company Name] will become a known 3D printing company in [Location], offering a complete printing and design service experience.
Upon surveying the local customer base and finding the potential location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property to assess the most desirable location for the 3D printing press.
Since incorporation, the company has achieved the following milestones:
- Found location and signed Letter of Intent to lease it
- Developed the company’s name, logo, and website
- Determined equipment and inventory requirements
- Began recruiting key employees with experience in the printing industry
[Company Name]’s Products/Services
The Company will provide the following services:
- 3D printing
- Rapid prototyping
- 3D printing support services
- Selective laser sintering (SLS)
- Fused deposition modeling (FDM)
- Stereo lithography (SLA)
- Other related printing services
III. Industry Analysis
The global 3D printing market reached a value of $16 billion last year and is expected to reach $57.1 billion in the next five years, exhibiting at a CAGR of 24.1%. Ease in the development of customized products, reduction in manufacturing cost and process downtime, government investments in 3D printing projects, and development of new industrial-grade 3D printing materials are some of the factors accelerating the growth of the market.
With a new class of better-performing machines, more materials available and greater ability to deliver 3D printed parts that are true to their mechanical properties, 3D printing has proven to be a significant time and cost-saving option for design and manufacturing.
Furthermore, 3D printing is aggressively expanding its footprint in different applications globally. The 3D printing technology has the access and ability to print simple and complex objects in small to large sizes. The automotive vertical is the fastest-growing vertical for the 3D printing market.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve small businesses, government organizations, high schools, colleges and universities.
The precise breakdown of businesses by sector is as follows:
| Total Businesses | 38,124 |
|---|---|
| Forestry, Fishing, Hunting, and Agriculture Support | 0.29% |
| Mining | 0.35% |
| Utilities | 0.23% |
| Construction | 9.64% |
| Manufacturing | 4.16% |
| Wholesale Trade | 5.62% |
| Retail Trade | 14.54% |
| Transportation and Warehousing | 2.83% |
| Information | 1.81% |
| Finance and Insurance | 6.56% |
| Real Estate and Rental and Leasing | 4.75% |
| Professional, Scientific and Technical Services | 11.36% |
| Management of Companies and Enterprises | 0.69% |
| Admin, Support, Waste Mgt, Remediation Services | 5.15% |
| Educational Services | 1.20% |
| Health Care and Social Assistance | 10.80% |
| Arts, Entertainment and Recreation | 1.66% |
| Accommodation and Food Services | 8.59% |
| Other Services (Except Public Administration) | 9.78% |
Customer Segmentation
The Company will primarily target the following three customer segments:
- Small Businesses: The Company will help businesses with prototyping or low-volume manufacturing by offering its 3D printing services.
- Government Organizations: The Company will also target government organizations that require a variety of 3D printing services.
- High Schools, Colleges and Universities: The Company will support educational institutions in selecting the necessary equipment, resources, and training required while implementing 3D printing objects.
V. Competitive Analysis
Direct & Indirect Competitors
Prototype One
Prototype One is one of the most renowned 3D printing companies and has been in business for xx years. Prototype One offers a wide array of 3D printing services to allow product developers, designers, and engineers an easier path to move from prototyping to low-volume production. Their suite of services and capabilities are the most comprehensive of any other competitor.
3D Printing Solutions
3D Printing Solutions provides its customers with thousands of 3D services for the architecture, engineering, and construction sectors. The company’s products include coordinate measuring machines, laser trackers and projectors, mappers, scanners, and software. Customers are able to browse through their vast database of designs from one central location. 3D Printing Solutions categorizes designs to make it easy to find what its customers are looking for.
XO 3D Printing
XO 3D Printing was established in [xx] and caters to a high-end clientele as it provides platforms to facilitate the development of 3D printing applications in industries such as healthcare, automotive, aerospace, and art and design. With more than 120 3D printers, they have unmatched capacity that reliably delivers parts within days.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Management: The management team has [x] years of working experience in a 3D printing company that allows them to serve customers in a more sophisticated manner than the competitors.
- Relationships: Having lived in the community for xx years, [Founder’s Name] knows all the local leaders, media, and other influencers. Furthermore, he will be able to draw from his existing personal and professional relationships to develop an initial client base.
- Great service at an affordable price: The complete array of 3D printing services offered by [Company Name] nearly equals the most premium positioned competitor, [Competitor Name]. However, [Company Name] will offer these services at a much more affordable price.
- Location: [Company Name]’s location is near the business center of town, giving the company access to educational institutions and private and public sector organizations who want to avail of 3D printing services.
VI. Marketing Plan
The [Company Name] Brand
[Company name] seeks to position itself as an upper-middle-market competitor in the 3D printing industry. Customers can expect to receive professionally printed objects from skilled printing operators at a moderate price point.
The [Company Name] brand will focus on the company’s unique value proposition:
- Offering a wide variety of customized 3D printing services and capabilities
- Convenient location
- Customer-focused service
- Moderate price point
Promotions Strategy
[Company Name] expects its target market to small businesses, government organizations and high schools, colleges and universities. The Company’s promotions strategy to reach the audience includes:
Pre-Opening Events
Before opening, [Company Name] will organize pre-opening events designed for prospective customers, local merchants, and press contacts. These events will create buzz, and awareness for [Company Name] in the area.
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its products in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Public Relations
[Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its offerings in various media outlets like newspapers, podcasts, television stations, radio shows, etc.
Social Media Marketing
One of the most cost-effective and practical marketing tools for increasing company visibility in social media. The Company will use social media to develop engaging content in terms of different 3D designs and customer reviews that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the 3D printing services. The customers can expect to receive high-quality modeling and printing services at a more affordable price than what they pay at an ultra-premium printing company.
VII. Operations Plan
Functional Roles
[Company name] will render its 3D printing services on a per-order basis and will also remain open for phone and email orders. The majority of employees will be involved in the creative process and production.
To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:
Service Functions
- 3D printing
- Rapid prototyping
- 3D printing support services
- Sales manager
Administrative Functions
- General & administrative functions including legal, marketing, etc.
- Customer service
- Hiring and training staff
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who has been in the additive manufacturing and printing industry for [x] years. While [Founder] has never run a 3D printing company himself, he was the director of operations at one of the leading 3D printing and rapid prototyping services companies. As such, [Founder] has an in-depth knowledge of 3D printing, including:
- Elements of Graphic Design
- Different modeling techniques
- The essentials of Selective laser sintering (SLS)
[Founder] graduated from the University of ABC where he majored in Printing Technology.
Hiring Plan
[Founder] will serve as the CEO. In order to launch the 3D printing press, the company will need to hire the following personnel:
- Creative Director
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Accountant
- 3D Printing Machine Operators
- Client Service Executive
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the 3D printing services. The major costs for the company will be the build out of the 3d printing facility, printing equipment and supplies, and staff salaries. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market. Moreover, rent for the prime location is also one of the notable cost drivers for the [Company Name].
Capital Requirements and Use of Funds
[Company Name] is currently seeking $360,000 to launch its 3D printing press. Specifically, these funds will be used as follows:
- Design and build-out: $170,000
- Working capital: $190,000 to pay for marketing, salaries, equipment and supplies until [Company Name] reaches break-even.
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Average Number of Clients | |
|---|---|
| FY 1 | 42 |
| FY 2 | 63 |
| FY 3 | 96 |
| FY 4 | 162 |
| FY 5 | 243 |
| Annual Rent | $36,000.00 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
