Makesmith CNC The Most Affordable Desktop CNC Router

Makesmith CNC The Most Affordable Desktop CNC Router by Bar Smith & Tom Beckett

About Us Owl’s Nest Café ~2011 UCSC Kresge Graduation 2013

About Us Bar Smith: • Electrical Engineering major Tom Beckett: • History major • TIM minor • TIM 80 C - Spring 2012

Our Project Desktop CNC Router: • CNC = Computer Numeric Control (meaning computer driven machine) • Router = the dremel tool you see • It cuts, mills, engraves, or shapes things out of raw material such as wood, plastic, foam, etc.

Developing the Idea • Bar goes to graduate lab one day, sees cool stuff • Bar comes home and looks online to buy similar tools for personal use • Bar finds underserved market: accessible CNC technology for engineers, hobbyists • Bar begins prototyping his own CNC machine

Funding • Very clear there was a market we could provide to • Starting our own business just after graduating was a dream • We did not want to give up any initial ownership of our company • We started researching Crowdfunding Platforms (ex. Kickstarter) • Low barriers-to-entry for business novices like us Some popular Crowdfunding Platforms:

Funding Crowdfunding Basics: • Minimum funding goal • Defined campaign duration • Estimate your costs • Write a LOT about your project • Take a LOT of pictures • Make a video • start developing your campaign early!!!. . .

Funding Kickstarter: • 5% platform fee (if you succeed) • 3 -5% amazon payments fee (if you succeed) • you get funds ONLY if you succeed • If you DON’T succeed, you get $0 funding Indiegogo: • 4% platform fee (if you succeed) • 9% platform fee (if you DON’T succeed) • you keep all funds raised • (OR pay no fees and get no funds if you DON’T succeed) Rocket Hub: • 4% platform fee + 4% credit card fee (if you succeed) • 8% platform fee + 4% credit card fee (if you DON’T succeed) • you keep all funds raised

Funding: • Kickstarter is the most popular • Several other CNC machines have had success there • We like the idea of “All or nothing. ” • If we need $10, 000 to make the project happen, $7, 500 doesn’t really help • Insufficient funding slows production down, which hurts the supporters that helped

Funding from Kickstarter dashboard Ends June 9 th! from Rockethub’s “success School”

Funding: Project Costs $3. 35 shipping of Free business cards $15. 00 domain name purchase $21. 12 Home Depot material testing supplies 3 lunches for our Video-making friend ( + some product development) = ~$75. 00 before Maker Faire … by then already at $40, 0000

Useful Methods and Tools from TIM Methods & Tools Utilized: • EVERYTHING. . . Bar did the Product Development. Specifically for me on this project: • Project Planning • Developing &Presenting Business Goals • Vision & Mission • PERT Charts • Porter Model • GANTT Aspects I would like to better develop: • Marketing Strategy • Market Research / Sizing

Insights from TIM In-Class & Beyond • Groups: Learn to communicate with people with various communication tools • Some teammates do not respond to email, but are always texting • Some respond only on Facebook • Find their preference • Lots of lost time spent waiting on responses that could be answered immediately • Groups: Deliver your deliverables to your teammates • The people in these classes are future Entrepreneurs • They are watching how you work; you should be watching how they work. • They could be your business partners some day. • You will need a team…

Insights from TIM In-Class & Beyond • Start your assignments early • Sleep on it • Think about it while doing other things • Be organized. • Be resourceful. • Video made for free. • Art done for free. • Don’t pay for services that people will make you think you need. • Learn how to use social media – for business • It’s becoming more and more of a necessity.

Insights from TIM In-Class & Beyond • “Always launch. ” – The Lean Startup by Eric Ries • There is always something that can be improved. • Turn in what you have… • Put yourself out there. • Friends, family, other connections are paying attention to what you are doing. • Opportunities lead to exponentially more opportunities. • It is uncomfortable… but entirely worth it.

Conclusion • Kickstarter might be the greatest thing to ever be available to a starting entrepreneur or business person. • Go try it!

Thank You Email us at: Makesmith. CNC@gmail. com Website: www. Makesmith. CNC. com Kickstarter: https: //www. kickstarter. com/projects/makesmithcnc/makesmith-cncthe-most-affordable-desktop-cnc-rout Any questions?