At ButtonMakers, we have 2 different options for cutting out graphics, the ProMaker Punch and the MultiCutter. You can also just use scissors if you want. In this video, Becky Buttons compares the two options. 

The MultiCutter can be adjusted to work with 1 inch. 1.5 inch, 2.25 inch, 3 inch, and 3.5 inch buttons in one machine. The ProMaker Punches are dedicated to only one size. But! Time is money and if you're serious about making money with you button maker, the ProMaker Punch is the way to go.