How to Start a Glowforge Business

1. Do market research

Market research is the process of gathering information about buyers and potential competitors (other sellers) to better understand market conditions. Before you spend money on your business, research to identify your target market (the ideal audience of buyers of your creations & their behaviors and what they want or need) and get to know the appetite for your products. You can’t sell to anyone and everyone. Limiting the audience you target actually improves your total number of sales, because the marketing messages you’re delivering are highly relevant.

2. Define your target audience

Start defining your target audience by identifying how you’ll position your brand and considering the specific products you want to make and sell.

One of the biggest challenges of entering the Laser products industry is competition: There are a lot of Glowforge businesses out there. Differentiating your brand and audience can help you break through. Rather than selling to every potential buyer, identify a niche based on your particular aesthetic and products. For example, if you have a whimsical aesthetic and create elegant wood and acrylic goods using high-quality materials, you might decide to target people planning weddings or other high-end events.

3. Decide where to sell your products

Many Glowforge business owners sell handmade goods online by creating an online store using ecommerce platforms like Shopify, or WordPress, or joining online marketplaces, such as Etsy or Amazon Handmade. You can also sell in-person at craft fairs or local markets, or approach local shops about carrying your items (wholesale). In each case, calculate the costs and potential audience reach associated with selling in the venue. 

Really think about what you’re most comfortable with… I’m all for testing your limits and conquering fears, but at the beginning we want to make it as comfortable and as easy as possible so it will be worth the long hours you’ll be putting in as a Solopreneur team of one. It will get better but the beginning is the hardest part!

In my case, I’m an Introvert through and through and clam up and get tongue tied in-person with strangers. Knowing this, I gravitated towards Wholesale selling and Selling Online in Marketplaces from the start, as it was wayyyy easier for me to just email and message people than actually talk to them! I am pushing myself out of my comfort zone this year to exhibit at some local craft markets and then working up my courage and people skills for an industry Trade Show at the end of the year.

4. Design your Glowforge products

You can use your competitor research to refine your initial product line. Ask yourself what kinds of products your target audience will need and identify gaps in competitor offerings. An ideal product meets a specific need unaddressed by other vendors. Meaning, don’t sell what everyone else sells… be unique and find your “niche” or themed focus for your product line for the best chance at success. Remember, you can’t sell everything to anyone and everyone. Next, finalize your designs, color options, and material choices. You might create mockups for review, or create a needs checklist.

Many Glowforge businesses also offer custom orders. If you’re comfortable creating bespoke items on demand—like personalized goods – think Wedding, Realtor Gifts, or Corporate gifting —consider including customization options for a surcharge. If you’re a skilled graphic designer, you can also sell svg cut files to other Glowforge users in exchange for a small fee. If you have no artistic bone in your body, not to worry there are millions of svg cut files available for purchase.

5. Plan your finances

The next step in starting a profitable Glowforge business is planning your finances. First, calculate your estimated expenses, making sure to account for the following:

  • Startup costs. The cost of your Glowforge machine, business licensing fees, and any initial marketing and branding investments.
  • Direct costs. The costs directly associated with manufacturing a product and completing an order, such as materials and shipping costs.
  • Overhead costs. Ongoing costs associated with running your businesses, such as software licensing expenses, marketplace selling fees, and marketing costs.

It’s OK to not have a solid figure for every expense at this stage. Your software licensing fees depend on which platform you use to create your online store, and marketing costs can vary based on your strategies. For these figures, create a budget estimate that tallies what you can expect to spend in each category based on research. 

You can use these estimates to determine the pricing for your products. Start by calculating the direct cost of each product and incorporate ongoing overhead costs as well as startup expenses into the pricing equation. 

For example, let’s say you sell personalized christmas ornaments with svg files you bought off of Etsy. You spend $5 on materials per product and anticipate 100 sales a month. Your monthly overhead cost is $500. 

Divide your monthly overhead expenses by 100 and add this figure to the direct cost of producing each ornament ($5) , arriving at a cost of $10 per ornament. Many businesses plan to pay down startup expenses over time, so you could add an additional $5 per ornament to pay down the cost of your Glowforge machine and other startup fees.

Once you’ve determined the cost of each item to your business, you can use a profit margin calculator to factor in your markup, determine item cost, and calculate your gross margin. Markups typically range from 20% to 100% of item cost. 

A 65% markup on your ornament, would set your sale price at $24.75, common where I live for a personalized handmade ornament, and give you a $9.75 profit per personalized ornament. 

6. Form your business

With a solid plan, you’re ready to form your business. Depending on your business entity and state, along with local laws, you may also need to get a business license and register your business with the state. Visit your state’s website to determine these requirements for your business type. It’s common for the Secretary of State’s office or the Department of Revenue/Taxation to handle business licensing matters. Also check in with your local City or County if you live more rural, as they often require business licenses for operating within their limits, and can help instruct you on further requirements.

If you form a sole proprietorship, you must register your business name using a doing business as (or DBA) to open a business bank account. 

For example, I live in the City of Bend, Oregon. I’m required to maintain a City Business License, a Home Business Operating Permit (I run my entire business out of a 200 sq. ft. shed in my backyard), I filed for a Sales Tax Permit with the State so I can purchase supplies I make my products with tax-free, and I’ve incorporated into a Single-member LLC business entity for liability protection of my personal assets and pay a yearly LLC fee to my state at tax time. Yes, every layer of red-tape wants a yearly fee paid for maintaining said license/permit. At least it’s tax deductible.

7. Purchase supplies and make products

Now the fun part: purchasing your Glowforge machine [use my referral link for an up to $500 Glowforge Discount] and additional cutting materials and supplies, and then get started making products! Because you’re making products yourself, you likely don’t have to worry about storing large amounts of inventory—handmade goods makers often offer made-to-order or custom products. When you maintain minimal inventory, you can focus on photographing and listing products to fulfill weekly sales estimates in each category.

8. Set up your online store

Once you’re ready to start selling, set up your online store. You can use an ecommerce platform like Shopify to design your website, list your products, and accept various payment methods. You can also list and sell your items on an online marketplace like Amazon Handmade or Etsy. When you feel you’ve got the hang of making and fulfilling orders, you can venture into the Wholesale side of Retail and sell in larger bulk quantities at a discount to Retailers nationwide on Faire Wholesale Marketplace. [Check out How to Sell Glowforge products Wholesale on Faire – coming soon…]

You’re probably thinking, there’s a lot more that goes in to running a business than just 8 steps, yes, but we’re focusing here on Starting and getting the basics done so as to not overwhelm you to the point that you stop moving forward and give up. You’ll never reach your goal of laserpreneurship if you never start. We will deep dive into each of these steps in focused blog articles. We’ll post links as they are completed. Feel free to reach out to us with any questions in the mean time. You got this!

Glowforge Business FAQs

Are Glowforge businesses profitable?
Yes, successful Glowforge business owners can earn significant profits selling their own Glowforge designs in-person at markets, online on their website, through social media, on handmade marketplaces, and even wholesale to independent Retailers.
How much money do I need to start a Glowforge business?
Glowforge businesses have relatively low start-up expenses. Costs include your Glowforge machine, materials, and business licensing fees.

Depending on the machine you purchase, add $500-$1000 to the cost of the machine to cover supplies, licenses, materials, packaging, software, and design files.
Do I need experience in crafting or design to start a Glowforge business?
No, you can purchase pre-made design files to create projects using your Glowforge machine. Plus Glowforges are the most user-friendly and easy to learn laser cutting machines available. You can start making products for your business from the moment you unpack your new Glowforge.
Sarah in her workshop

my mantras

DO what you LOVE
and LOVE what you DO!

Think BIG, start small.

Laser Cut Profits - How to Start a Glowforge Business

My Journey from Hobby to Hustle to Laserpreneur!

I started with a Glowforge Pro at the end of 2019, then we all know what 2020 brought – I was getting jiggy with it to keep my sanity and my local coffee/gift shop asked me if I could make anything creative & cool for them to sell since they couldn’t source anything. I made ornaments, tic tac toe games, signs, magnets, and jewelry. It sold like hot cakes!

What started in the corner downstairs in our 240 sq ft Tiny House, soon overtook it, then filled a 200sq ft Shed Workshop and has continued to grow. Fast forward to now and I have a thriving 6-figure laser product based wholesale business with retailers nationwide including a well-known retailer giant, a direct to consumer website and this blog where I’m going to share all of my knowledge I’ve learned the hard way to help you on your own journey to laserpreneurship. Sharing is caring!