Starting up a laser-based business or transitioning an existing equipment-based operation into a services business, Specialty Contract Manufacturing (SCM) affords the entrepreneur some interesting opportunities. SCM advantages are (1.) the ability to be selective in projects and customers, and broaden out the customer base; (2.) having cashflow early in the business cycle assuming you have laser systems available; and (3.) leveraging your client-paid projects into Intellectual Property that protects both clients and suppliers from competitive pressures. One disadvantage is the questionable valuation of your company at the time of an exit because of the investment market’s perception of ‘contract manufacturing’ as nothing special.
Topics
Lasers
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© 2005 Laser Institute of America.
2005
Laser Institute of America
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