Dear SL:
I have no "sample" business plans for a SB startup, per se. At any rate, they wouldn't
be particularly valuable because the circumstances surrounding each startup are usually
quite different.
There are many resources for business plans and your first step is a trip to the
library. Most business plans are written towards financing "the big idea." However, in
this case you need to focus on getting financing from a more limited group of investors,
such as friends, family and angels. You may not have to exhibit the returns VC's are
looking for, but you'll need to make it interesting for these people and that's not too
easy, either.
The key to making a SB work in this environment is either extreme specialization or to
have very deep vertical integration. Most of the SB's are focused on engineering support,
so I'd try to think about servicing a market where RP is probably underutilized at present
and concentrating there. Architecture is a possibility, but you'll have to study the needs
of companies in your area.
It's no big deal to work out of your home, (there are a number of SB's doing just that)
but most RP processes are pretty messy - so a garage is best (or a basement).
Consider that you might not even need machinery at first if you attack the right
market. If, for example, you could set yourself up as the "go-to guy" for all the
architects in your area that need models, you could subcontract the physical building to
SB's in your area. You would bring technical knowledge and guaranteed results to the party
- but you do have a chance of getting burned if the sub screws up. This might get you
going, but you'll also definitely have to bring things in-house before the sub-contractors
figure out who your customers are and approach them directly with prices well below yours.
What I'm getting at really is to try to think creatively about your approach to the
business problem before you spend any money.
It's never an easy thing to start a business, but with 700+ places for your customers
to go you really have to have a good plan to make this successful. The days of just buying
a machine and hanging up a shingle are over, although there's no shortage of people still
trying. One of my colleagues refers to it as "The Dream That Never Dies."
You'll need a different dream from the other guys to be successful.
Thanks and regards,
Ed
Ed Grenda
Castle Island Co.
The Worldwide Guide to Rapid Prototyping
