Going into business for yourself can be both exciting and stressful. These tips for starting and managing your own machine shop may help guide the process and ease the worries.
Choose Your Specialization
Machining is a competitive business. You’ll have greater success if you specialize. Determine what industries you can best serve in your location. In the Flagstaff area, that will include manufacturing, higher education, microbreweries, healthcare, and bioscience. Build on your experience.
You might decide to start out with making prototypes, performing metal repairs, or playing on your hobbies and enthusiasms by creating new parts or components for bikes, cars, or robotics.
If CNC software and programming is your niche, you might not even need a shop: you could work off a laptop at home preparing designs, software, or analysis for clients to hand off to other shops to manufacture.
Identify Potential Locations
Knowing the type of work you plan to do will help you identify how much and what type of space you’ll need for your operation. Scout out potential locations and make note of pros and cons. Will the equipment you need fit? Does the facility have enough electric power to run the machines? What about ventilation? Also, consider whether the location is convenient for potential clients and employees.
Write a Business Plan
Managing your own business starts with a detailed business plan. Writing one is possibly the most important tip for starting and managing your own machine shop. Specify start-up costs for equipment, insurance, rent or mortgage, utilities, marketing, and professional services like legal assistance and accounting. With legal assistance, determine whether you’ll structure your business as a solo practitioner, LLC, or other corporate structure.
Obtain Permits and a Business License
Handling required paperwork is another aspect of business management. Flagstaff requires you to register your business and obtain a business license. You may also need permits for the type of business you’ll run and for any building alterations you plan for your location. There will be considerable paperwork, and of course, you’ll have to obtain a tax identification number to pay federal and state taxes.
Buy or Lease Equipment
Once you’ve got financing and a location, it’s time to choose your machines. Even small machining operations need CNC (computer numerical control) compatible equipment and the software to run it. Start small with one or two machines, and buy more as your business grows.
Market Your Business
Marketing is a key component of managing a machine shop. Network and promote your business even before you open. Contact prospective clients and tell them about your plans. Set up social media accounts and a website and report on your progress toward opening day.
Becoming a business owner requires a new set of skills, like leadership, financial management, human resources, and marketing. Flagstaff has excellent educational resources, so taking classes in business administration to expand your skills is a good strategy to boost your success.
