Die-cutting refers to the process of mass-producing cut-out shapes with utmost accuracy. Compared to the traditional method (which mostly involves a precision knife and stencils), die-cutting allows you to produce the exact same shape with the exact same dimensions over and over again, resulting in accurate and consistent results.
Before, businesses had to rely on professional services with heavy-duty industrial die-cutting machines to produce the paper products that they needed, such as envelopes, stickers, and labels. Today, businesses of any size can create their own die-cut products with a small manual or digital die-cutting machine. In fact, you can even start your own die-cutting business that focuses on producing paper products for other businesses and customers.
If this sounds like a solid business idea to you, here’s what you need to know about it before you start:
Choosing the right type of die-cutting machine
Die-cutting machines come in a wide variety of sizes, functions, and capabilities. There are die-cutting machines that take up a whole table, while there are machines that are the size of a toaster oven. Moreover, some machines can cut almost any type of material, and others are limited to paper and paper products only.
However, there are two main types of die-cutting machines that you have to consider first: the manual and the digital machine. As the name suggests, a manual die-cutting machine cuts shapes out of paper with specialized metal shapes and a crank or lever. This type of machine is great for small businesses that only need a few specific shapes to work with. Moreover, they are relatively inexpensive and are small enough to fit on most work tables.
But if you want a faster, more capable, and more accurate machine, a digital die-cutting machine is the way to go. Die cutters have a blade inside of them that they use to cut any type of shape accurately and consistently. Using a software program, you can create the shape that you want to create digitally before letting the machine do its work, which allows you more freedom in terms of design and dimension.
Before choosing a die-cutting machine for your business, consider the type of products you want to create as well as your plans to scale. For example, if you want to cater to businesses that want to create labels for their products, you may need a digital machine to be able to mass-produce labels quickly and accurately. Moreover, if you have more budget to spare, you may want to go with a bigger and more capable machine to allow for easy scaling in the future.
Decide what products you want to create
Having a die-cutting machine will allow you to offer a wide variety of products to your customers. Here are examples of things you can create with a die-cutting machine:
- Envelopes
- Stickers
- Gift tags
- Party favors
- Pillow boxes
- File dividers
- Greeting cards
- Labels
- Phone case backings
And many more! While you can definitely offer any and all products that you can think of, finding a niche or specializing in only a certain number of products is the better way to go, especially if you are just starting. For instance, you may want to start by offering products made out of sticker paper, such as novelty stickers, labels, wall stickers, and sticky quotes, among others. Once you gain enough traction and receive more orders that your machine can handle, that’s the time to scale.
More than the practical side of things, you also have to consider the competition. Are there a lot of die-cutting businesses in your area? What kind of products do they offer? Do they specialize in anything? What edge can you have against them? Producing die-cut products can be a very lucrative business, but only if you’re not competing against a thousand others in your area.
Consider the investment
First, consider the cost of the die-cutting machine itself, as well as other tools that you need to produce the products that you want to create (e.g. computer, software program, worktable, storage bins, etc.). Apart from that, you also have to think about the investment of time and effort. If you’re doing this business full-time, then it shouldn’t be a problem. But if you’re also working a day job, consider the energy that you have to expend and the time that you have to commit to this business.
Starting a business with a die-cutting machine can be a solid investment. But before you dive into it, be sure to take these factors into consideration to ensure that you make the right choices and are fully ready to commit to a business.
