[Canados]

Hi guys,
I'm new here and I need your help before starting my project. I woud like to start a new business involving a CNC styrofoam cutter for the production of decorations and sculptures. My main concern is if this type of businesses are scalable... and I wouldl like to hear from you what are the main issues.

Client are not a problem....... would you suggest it? Or it's time consuming for little profit?

thanks

[ger21]

In most cases, a CNC machine is added to make an existing business more profitable.
Buying a CNC machine in order to start a business will almost certainly end in failure.

How do you already have clients, for a business you have no experience in, making a product that you don't know if it will be profitable.
If it's not profitable, then you're not charging enough. If you charge more and can't sell, then you have no clients.

[LeeWay]

I agree with Gerry on this. I got into cnc machines after I had a business started and could not keep up with orders manually. You don't buy a cnc machine to see if a business might be viable. Plenty of people and companies already in business that will help you make a product if you receive orders already.
You can put in RFQ's here at the zone. There are other places as well.
I just don't think it is wise a start a business off being in the red.

[awerby]

What kind of styrofoam cutter did you have in mind, a router or a hot-wire machine? I've tried cutting styrofoam with a router, and it made a huge mess, with particles of foam clinging to everything (including myself). I wouldn't recommend this as a way of producing complex parts; you'd be better off molding the foam.

The hot-wire machine is a lot cleaner (although it smells worse) but it only makes sense to automate it if you're trying to make a lot of duplicate parts. A hand-operated hot wire cutter is simple enough to operate that you can do a lot of parts quickly without having to involve a computer.

[LeeWay]

Sometimes polyurethane foam in a mold is a better way to go depending on the product.
There are different types. open cell, closed cell etc.

[Canados]

thank you guys for your replies.

after reading them I understand that I'm missing something, and that it's not that easy as it seems. And... I suspect EPS fumes are toxic, even if it's 98% air, and 2% styrene

ger21, a guy I know bought the machine 2 years ago, and started to marketing locally. He's making furniture, number and letters for events, signs, home decorations, VERY HIGH margins

The machine is a hot wire cutter of EPS foam (like this, VIDEO) , and I would start the business with a friend of mine who is already working with it for another company. He can use the machine very well. When we spray resins or other products on the EPS, it becomes strong like a stone.

We would produce greek columns, furntirure, numbers and letters, exterior and interior home decorations, shop signs.

Polystyrene is cheap, and we can make good products and sell them with good margins.

[warrenb]

I am an unmarried bachelor with no family to feed that I am fine living in my car so failure does not concern me.... That's my discaimer...

Do it. No sense living with regret taking your chance. The only caveat. DO NOT go in to debt. Repeat...DO NOT go in to debt. The machines and software you have are relatively cheap. The machine you can always sell. The software, you can always use for design work down the road. Get the software first because you can always hire the machine. Then take that income to buy your own machinery.

Expect to work weeks, months, and years for basically no money. If you have the skills to design you can take gigs designing to cover the times you aren't earning with the machinery. All the while work your butt off to establish your presence and build a trusted and loyal customer base. 97 percent of my work comes from 3 of my most beloved and loyal customers. I have worked my ass off for them and they have invested an incredible amount of faith and money with me even when I have failed miserably. It sounds corny but we have a familial relationship with our combined struggles and work to take care of eachother. In Regards to failure ask me about a 30k scrapped part....

Those are the relations you must harness. If you aren't willing to do that work for basically nothing, you may need to think about self employment. Expect to be burned. Expect to be ripped off. Expect failure. Expect to be alone. Expect to look at yourself in the mirror and admit YOU failed. But when you get that check, even if it is only 100 bucks, expect an overwhelming feeling of success. Those are the customers you will eventually find
On the lighter side....
If you are willing to take the plunge and you have the skills to risk self employment, you have the skills employers are looking for. I always tell myself the worst thing that happens if I fail I have to get a job. I have failed many times the past 10 years, but I am still self employed.

[LeeWay]

That machine is only one aspect of such a business. There are other areas that you need to consider. You will need room for a spray booth and drying room and suitable equipment. These products will certainly be labor intensive. A storage warehouse that is pretty large for both raw materials and finished products. The materials are highly flammable, so will be regulated heavily. Logistics will need to be considered thoroughly. My business would not survive if it were only a brick and mortar for local customers. It require's the World Wide customer base it has through the internet and a website and word of mouth.
Your products will be large and very costly to ship even though they are light weight. They would still need crating to prevent damage. Like my business, yours is a niche market. Already having another business in this area locally has saturated or covered the local market. You entering the exact same spot will lower the margins due to competition.

I am not sure that you can even get setup correctly in such a business without at least a million dollars worth of capital to start with. I could be wrong, but I do not see how this type of business could be scalable.
IOW, don't jump in without doing an incredible amount of research to start with. I do wish you luck with whatever you decide.

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