The #1 Reason Most Laser Businesses Fail in Year One

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If I knew then, what I know now…

If you started a laser business, or you’re about to, there’s something you need to hear before you put another dollar or another hour into it. Most laser businesses don’t survive year one.

Why? They don’t fail because their products were bad. They don’t fail because their laser broke. They fail because of one thing that is completely invisible until the damage is already done.

Let’s dive in it!

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Invisible Mindset Trap

So, here’s how it goes.

You’ve done your research, you found your machine, it arrives, and you are ready to go. You start making things — coasters, keychains, signs, ornaments. The classics.

People love them. You get your first sale, maybe to a neighbor or coworkers – and it is an absolute rush!

So you make more things. You stay up late. You perfect your settings. You’re creating, you’re selling, you’re showing up.

You feel like an entrepreneur.

But then you sit down at the end of month three and you do the math. And the math does not math.

You spent $200 on materials. You sold $300 worth of product. But you worked — what — 40 hours that month?

Let’s calculate! $100 profit divided by 40 hours equals $2.50 an hour. You are paying yourself less than minimum wage to run a business you love. And that is the trap.

And here’s the part that really gets me — it doesn’t feel like a trap while you’re in it.

Because you ARE making sales. People do love your work. You’re not failing, you’re just… grinding.

Until one day the excitement wears off, the sales slow down or stop, and life gets complicated.

And the business that was supposed to give you freedom becomes another thing that drains you. So, you walk away thinking, “I guess this just wasn’t for me.”

It was for you. You just got caught in the number one laser business killer in year one. And that is: thinking like a crafter instead of a business owner.

“Crafter” In Chief

Now before you throw something at me, I am a crafter I love making things. That is never going away and I would never want it to. But there is a difference between making for the love of it and running a business. And in year one, most of us never actually make that switch.

Here’s how the Crafter Mindset shows up — and it is sneaky — in three very specific ways.

Number one: Pricing for materials, not for value.

When you’re thinking like a crafter, you look at a product and think, ‘This cost me $3 in materials and took me 20 minutes — I’ll charge $8.’

But a business owner asks a completely different question: what would a customer PAY for this result?
What problem does this solve?
What is the transformation worth?

Because your $8 laser-engraved gift? When it’s positioned right, it’s a $45 experience. I’ve done it. My son does it. Same laser time, same materials — totally different price.

Here’s an example so you maybe finally believe me. When I was growing up, my mom was a screenprinter. Ya know, putting the images onto t-shirts. I got into it eventually, too!

A blank t-shirt – $2. The inks for the print – $1. Selling the shirt for… $25. Sometimes more depending on the design and where you are selling them.

I wasn’t making $8 Walmart “graphic tees” I was making wearable ART.

Number two: Selling products instead of solving problems.

Crafters make things and then try to find someone to buy them. Craft shows, community yard sales, things like that.

Business owners find a problem their customer HAS, and then make the thing that solves it.

This sounds like a tiny shift, but it changes everything — what you make, who you target, how you price it, how you describe it.

‘Here’s a nice wooden sign’ is a maker pitch. ‘Here’s a fun customizable gift for the mom who is impossible to shop for’ is a business pitch.

Which one sells faster?

I sell jewelry. No one needs jewelry to survive, but they do need that whimsical conversation piece that is going to tie together their entire outfit for that cruize they’ve been planning.

You don’t need to invent new products. You just need “business-itize” the way you market your products.

Number three: Not knowing your real numbers.

And I don’t mean just your material costs.

I mean your time per piece, your overhead, your average order value, your best-selling products by actual profit — not just by volume.

I used to make things that sold constantly and I was SO proud of how fast they moved. And then I actually did the math and realized they were some of my WORST performers in terms of real profit per hour.

I was just keeping myself busy. And busy is not mean profitable.

As a business, you have to decide to either simplify, increase price or axe it.

We’re just getting into it, but it’s things like this that is why I started the Ignite and Scale Summit. It’s a 3-day learning event where a huge group of laser business owners (some who you may recognize here from youtube) have transformative lessons on how to find your perfect product and scale your laser business. New or old. But, before I get more into that, let’s cover some easy steps to get into this business mindset.

Big Business Brain Time

So, how do you make the switch? How do you go from crafter brain to business brain without losing the love of what you do?

Here’s the good news: you do not have to become a spreadsheet person. No TPS reports!

But there are three things I want you to start doing this week — or honestly, right now.

First: Do your hourly rate math.

Take your revenue from the last 30 days, subtract your material costs, and divide what’s left by the number of hours you actually worked. Write that number down.

How does it feel? If it’s under $15 an hour, we have work to do. You should be aiming for at least $25 to $30 an hour minimum, and many of you with six months of experience should be hitting $50 or more.

That’s not greedy. That’s a business.

And if you excuse it with things like, “Well, I watch TV when I’m putting things together or blah blah blah.” That doesn’t mean you should be paid less. That just means you have a really cool job.

Second: Audit your product line by profit per hour, not by sales volume.

Your bestselling product is not necessarily your most profitable product. Make a simple list.

What did each product sell for?
What did materials cost?
How long did it take?

Divide the profit by the time taken to make it. I promise you that list is going to surprise you.

Third: Pick one problem, not one product.

Instead of thinking, ‘I’m going to sell laser cut earrings,’ think, ‘I’m going to be the go-to person for unique gifts for teachers in my area.’

Now everything gets easier. Your marketing, your products, your pricing, your ideal customer. You’re not just a crafter anymore.

You’re solving a specific problem for a specific person or group of people.

That is a business.

I made this exact shift and it changed everything for me. Not overnight — it took me embarrassingly long, honestly. And its something I have to check myself with throughout the years. But once it clicks, you’ll stop working for $2 an hour and start working smarter for a whole lot more.

I’m no genius. I’m just a silly goose who started a thing, took like 5 years figuring it out, and 7 more years perfecting it.

Ignite & Scale Your Laser Business

If you’re sitting there going, ‘Oh no, I think I have the crafter mindset problem’ — first of all, that awareness is everything. You are already farther along in your business journey and don’t even know it! But don’t just sit with it.

Invest in yourself and your business at the Ignite & Scale Summit with me May 12th through 14th. This is where we take all of this — the pricing, the positioning, the product itself — and we actually work through it for YOUR business.

I’ve got JJ with ChalkWatts, Michael from Laser Engraving 911, Bail from Just One More Project and a BUNCH of other speakers going over Product Creation, Etsy Strategies, and Marketing Ideas and maybe even the motivation you need to pivot your laser business toward a whole new direction.

We’ve got free offers from Laser Map Maker, Cuttle.xyz and you even get a chance to win a free mini laser from Raymoto.

It is coming up fast. I would love to see you there.

And in the meantime, rad my pricing strategies for Craft Markets video right here. It might be the most important 10 minutes you spend on your business today.

Thank you so much, and happy crafting!

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