Murray Laser

 Murray Laser 
Business Plan 
Jason Akers, Owner 
Created on May 31, 2021 1 

MURRAY LASER 
Executive Summary 

Product 

Murray Laser focuses on providing custom cut and engineered flat and bent metal pieces including coatings for manufacturers in the US. 

Customers 

The target customers are manufacturers who have to be nimble in engineering and building fast solutions for retail and e-commerce. Because of the COVID19 pandemic, manufacturers are being asked to not rely on long supply chains and cheap overseas manufacturing. Yet waiting on traditional manufacturing methods like stamping tools and machinery would cause them to loose valuable opportunities. Laser cut parts allow these manufacturers to create custom solutions at volume in record time. 

Future of the Company 

The planned future of the company is to build a client base and competent workforce and expand by adding additional lasers and future processes such as stamping, forming, welding, punching and assembly. This will all be done toward the mind of being flexible and full-service. 

Company Description 

Mission Statement 

To provide high quality, fast solutions for nimble manufacturing. 

Principal Members 

Jason Akers — Owner 
Shamar Browder — Operations Manager 

Legal Structure 

Murray Laser is a Limited Liability Corporation located in Murray, KY 

 Market Research Industry 

According to Marketwatch.com: “…laser cutting machine market and it is poised to grow by USD 1.02 bn during 2020-2024 progressing at a CAGR of 4% during the forecast period. Our reports on laser cutting machine market provides a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis covering around 25 vendors.” Reshoring of suppliers is becoming a better strategy for the following reasons: 
• Cost of doing business in China is rising 
• Growing recognition that Total Cost of Ownership (TCO) matters more than piece part cost 
• Supply chain challenges coming to the fore 
• Automation and advanced manufacturing technology 

Detailed Description of Customers 

The target customers for Murray Laser are diverse. The main target however are higher volume customers such as Talos Engineering in Laverge, TN, MCA Fabrication in Manchester, TN and Pan Osten in Bowling Green, KY. The owner has built personal relationships with each of these companies. These companies work with the largest retail companies in the world - Amazon, Walmart and some of the largest logistics companies such as FedEx and UPS. All of these customers have thrived in the wake of the COVID19 pandemic and American consumer habits have changed to a model (storefront) that depends on moving products quickly and accurately (online). We will branch out to different markets as opportunity allows. Laser flexibility makes it great for retail sales as well. Signs and other markets are growing as people work on improving their own spaces. In addition, local tool shops and other manufacturing plants will be able to utilize laser flexibility for prototyping and avoiding the waste that comes from machining and other processes. The plan for the customer base is to utilize diverse customers and products to eliminate idle time on machinery and with labor. 

Company Advantages 

Murray Laser offers advantages over other manufacturing. 
• Stamping tools take 6-8 weeks minimum to build. Lasers can cut the part the same day it was conceived. 
• Changing a stamping tool design (such as a hole size) would take days and hours and be costly. A laser change only requires a new digital file. 
• The Western Kentucky area does not have a manufacturing company that is so adaptable and able to support the other businesses in such a cost effective and quick manner. 
• Tariffs on material and goods from China has shifted the manufacturing landscape to make American manufacturers more competitive in the domestic market. 
• Adaptability, speed and cost effectiveness make laser cutting the only viable option for some types of manufacturing. Murray Laser will compete with other laser and fabrication shops but will offer advantages as well: • Smaller economy of scale. Smaller footprint and more adaptable labor. 
• 22 years of manufacturing experience including ISO 9001 and automotive manufacturing knowledge. 
• Proven business model which has grown another laser and fabrication shop from 1 million dollars in sales over a three year period to 4 million dollars in sales in a 6 month period. 
• Knowledgeable service base for full service products (powder coating, welding, other supplier contacts).

Regulations 
• Federal, state and local tax laws 
• Federal and state employment laws 

Service Line Product/Service Services Include: 
• Laser cut pieces for the following industries: 
o Automotive 
o Retail 
o E-commerce 
o Industrial applications 

Future plans include: 
• Welding 
• Punching 

Pricing Structure 

Murray Laser will offer its services at an hourly rate and quote by the job to each customer. The pricing model will be $170 per hour of laser time PLUS material costs marked up by 10%. The cost model will be roughly as follows: 
• 50% material costs 
• 15% labor costs 
• 15% costs of operations 

The profit will be: 
• 20% of sale 
• Plus all return on scrap material 

Product Lifecycle 

Laser cutting services will be offered to clients first come first served with profit and delivery being the main driving factors. 

Intellectual Property Rights 

All designs are customer owned and will be protected. 

Research and Development 
The company is planning to conduct the following research and development: 
• Working with our sales force to determine market trends and opportunities with growth industries and targeting them. 
• Finding the most efficient equipment and methods for our operations. 

Marketing & Sales Growth Strategy 

To grow the company, Murray Laser will do the following: 
• Work with existing fabrication shops to take overflow. This is a common problem as the laser and fabrication resources in this area cannot keep up with demand. 
• Work with sales professionals with personal relationships with the manufacturing base in this area. 
• Broaden sales by offering commissions to ANY person who brings business. 
• Developing relationships with local manufacturers to become a service provider network. 

Communicate with the Customer 

Murray Laser will communicate with its customers by: 
• Meeting with local managers within targeted companies 
• Using social media such as Twitter, YouTube, Facebook, and LinkedIn 
• Providing contact information on the company website 

How to Sell 

Murray Laser will use Sutter Metal Solutions to sell its product in the Mid-TN/KY area. We will also hire additional sales personnel on commission. We will also provide company social media and online marketing support. The company will increase awareness to our targeted customers through online advertising, proactive public relations campaigns, and attending tradeshows. 

Costs Equipment 
• Used Amada laser. ($100,000) 
*Used Amada Brake Press ($35,000)
• We will shop used inventories. A ENSIS 3015 is optimal due to familiarity and parts availability. 
• Forklift 8K ton ($9,000) 
• Flatbed delivery truck ($15000) 
• 100 PSI (min) Air compressor ($7500) 
• Periphery equipment such as grinders and hand tools ($2000) Materials 
• Consumable gases such as Nitrogen, Oxygen and Laser Mixes ($5000 startup) 
• Spare parts for laser ($2500) 
• Metal inventory ($7500 startup) 
• PPE and other supplies ($500) 
• Packaging supplies ($1000) 
Site 
• Rent for location and modifications and utilities (First 6 months) - ($25000) 
• Electrical hookups and rigging ($7000) Computer and Software 
• 3 - Desktop computers and peripherals - ($5000) 
• 1 - license for SigmaNest and AutoCAD Software ($10000) 
Payroll 
• First 6 months payroll - ($15000) 

Total Startup Costs 
• Roughly $250,000