Welcome to ASK ROCK, a monthly advice column where industry expert Rock LaManna will answer your questions on topics such as: key financials for business, and how it can lead to profitable organic growth, M&As, strategic alliances, succession plans, and exit strategies. He will also talk about leadership and present family business case studies.
Do you have a question for Rock LaManna and the LaManna Alliance? Submit it here.
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Dear Rock,
We are a commercial offset printer in the middle of Nebraska. The thought of 3D printing and getting into that market intrigues me. How can we use 3D printing to add to our revenue stream, and how do we market it? ~ Ben Nonhof, General Manager, LIPS Printing Service
The promise of 3D printing is fascinating to anyone in the business. Unfortunately, intrigue does not drive revenue.
I’m not going to speculate on whether or not 3D printing will take off. At the moment, you know as well as I do that many printers are experimenting with it, and searching for a potential market.
The big question is whether or not you want to – or can be – one of those companies. Take a look at your long-term strategic plan and investment resources. As Warren Buffet says, “I don’t invest in anything unless I’m an expert in it.” (I’m paraphrasing, but you catch my drift.) Make sure you fully understand the market opportunity – or at least the notion that you’re spending money on investigating a market opportunity.
Then look at your current customer base. The first people who are going to buy an untested new technology are the people who trust you – your customers. Will they have need for this?
You also have to look internally. What type of talent will you need to run these machines? Do you have the infrastructure to pursue it?
When I attended the PRINT 13 conference in Chicago this past year, there was much discussion about 3D printing, but limited market application. If you’re serious about exploring the option, then attend conferences where experts on the 3D field are speaking. It can give you valuable insight.
Be aware the 3D technology has been around for 40 years, so there are a lot of people who are experts in the field. Find out where they’re headed.
Finally, it’s extremely important to factor in your cash flow with any decisions you make. Review my post on “cash traps” to avoid a common mistake printers make when they invest in a new business.
Rock LaManna is the President and CEO of the LaManna Alliance, a business advisory and consulting firm that helps printing owners and CEOs use their company financials to create successful strategies. He blogs regularly about family business solutions for the printing and print-related industry.
One Response
Great advice on this topic, Rock. So many see what they think is the “next big thing” and just jump without asking the important questions first.