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Where to start with opening my own shop

stephon0913

Plastic
Joined
Aug 12, 2011
Location
Portland, OR
HI ALL,

let me start by saying it has been a dream of mine for the last few years to start my own shop. currently i have about 6 years manufacturing experience 3 of those cnc programming. i am confident that if i had the resources(money) for start up, even if that were enough to buy the very basic (mill lath band saw tooling, etc.) and run it out of my garage, i could make it take off after a year or so.i am passionate about what i do i love (just about)every aspect of of machining and manufacturing. i have quite a bit of connections in my area and my father in law has a huge client base at just about every metal shop in the region, between the two of us im sure we could have more than enough work in the first few months to get the ball rolling. the critical piece im missing is i havent been there and done that. im looking for some advice from some ppl who have been through it and can share some knowledge with me.sorry to be so short in writing but i think you get the basic idea. if you would like me to elaborate on anything just ask.THANKS.:cheers:

ps i have somewhat been working on a business proposal and wondering what kind of things should be listed on there, also say i just started out very small cnc mill in a garage small would i need a business licence for something like that?
 
I really don't want to pour cold water on your dream, but in all honesty, this sounds like how to make a small fortune....start out with a big fortune. Unless you have a lot of qualifications not listed, I don't think you have the experience yet. Its not only about making chips, its also marketing, bookkeeping, inventory control among others. I wouldn't depend on your father's connections, they may give you some small work, but, if it were me, I would not want to give major work to an unknown shop just starting up.

Talk to Ox and others that have started their own shops and are successful.

Tom
 
Sounds like you already have a plan.

Get a band saw and a lathe and start in your garage. Even if the business doesn't take off, a lathe and band saw are handy to have around.
 
Open up a bank account put on it DBA...joe shmo.

Run your money input and output through it part time for a year. After a year the balance (or lack of) will give you an idea.
 
Do you currently have a job? Do you have any money? Do you have any other skills? If you answered no to these questions then you have nothing to loose, break out the credit cards and buy some machines and go for it, the worst that will happen is you ruin your credit and they take the machines. I did this and it worked out fine. I was given this advice by a good friend who is mentally ill so take it for what it is worth. Being in business for yourself is risky if you are not into risk go get a job.
 
Talk to Ox and others that have started their own shops and are successful.

Tom

Huh?

I started with less than he says he has.

???

He says he's got 3 yrs in?
I had in 5000 hrs in 1.5 yrs.

I did NOT have any intention of starting a shop on my own when I left there either.
Starter werk found me, so I picked up the ball and ran with it.
(The whole story is in the other section .. ... well, half the story is there anyway. LOL!)


I started with less than he says he has.

And after twenty .... ??? .... three (I guess) years, I have most of it left...

Oh wait ... that's a song aint it?

No - actually, after 23 yrs it is looking like it may even be mine one day!


------------------------

Where to start with opening my own shop

Put your money down and drive it off the lot
Ox
 
there really is no way to say this without sounding like a prick so i apologize in advance and here goes. if you have to go to an online forum and ask a group of strangers how to start your business, your not ready to start a business. don't get me wrong, there are exceptions, but they are few and far between.

before i shut down my company last year in favor of a steady paycheck, health coverage, better work schedule, and much less stress, i was working 80-90 hour weeks and only 20-25 were doing my actual craft. the rest was hitting the streets looking for more work and writing up proposals trying to convince potential customers why they should pay me 4X what the indian and chinese companies were charging.

and be careful with talk of business licenses. most communities frown heavily on commercial manufacturing facilities in your garage. then if you do get a license (possibly a state and city depending on where you live), and sales tax id (possibly state and local depending on where you live), and federal EIN number, and insurance (don't get me started on insurance), it becomes whole new world when the guy with EPA on his shirt walks in unannounced one day with that damn clip board and goes "SOOO, i hear you manufacture things here...." (true story)

im not trying to discourage you, if its your dream go for it. im just giving you a little tiny piece of reality. its a tough life. rewarding, but tough.
 
Do you currently have a job? Do you have any money? Do you have any other skills? If you answered no to these questions then you have nothing to loose, break out the credit cards and buy some machines and go for it, the worst that will happen is you ruin your credit and they take the machines. I did this and it worked out fine. I was given this advice by a good friend who is mentally ill so take it for what it is worth. Being in business for yourself is risky if you are not into risk go get a job.

ROFLMAO, yea, i have 2 of those mentally ill friends. i've wanted to kick BOTH their asses over the last 20 years or so for their brilliant ideas.
 
Do you currently have a job? Do you have any money? Do you have any other skills? If you answered no to these questions then you have nothing to loose, break out the credit cards and buy some machines and go for it, the worst that will happen is you ruin your credit and they take the machines. I did this and it worked out fine. I was given this advice by a good friend who is mentally ill so take it for what it is worth. Being in business for yourself is risky if you are not into risk go get a job.

I do have a job right now, don't have a lot of money but i do have a variety of skills. My skills vary from building computers and components to wiring car stereos and home theater systems by trade i am a machinist that knows cad/cam software. i am a risk taker which is why i want to take this on so badly. so much of what i hear from shop owners is the stress of finding customers or getting business, in my position with associations ive make throughout my career, and with the help of my father in law and all his connections with every shop within a 200 mi radius, i think i would have a good shot at coming out ahead in the first year (which would probably be out of my garage:))we have spoken about this topic many times before he is willing to go in on it with me, with his background in marketing,sales and finance and my background as a machinist, and a very low overhead for the first years most likely, i believe i have descent shot at really doing something other than going bankrupt. more or less im just trying to make conversation with some guys that have experienced this and know it first hand, and maybe get a little advice as well. thanks!:cheers:
 
Having nothing to lose and nothing to fall back on is the worlds greatest motivator. Alot of people will tell you that doing this is too hard or there is too much competition or you dont have enough experience, and it is all true but ambition and drive will overcome all. I know it sounds like a nike commercial but there are a million reasons not to start a business but what the hell else have you got to do?
 
There is no greater motivator than fear, fear of being destitute is one of my favs, no body will tell you when it is time to go to work, or when to stop either.
3 years in is just enough to be enthusiastic, but not know a lot, (dont take it personal), there is a LOT to a biz, even more so for a machine shop.
If you are going to be a job shop, start with an MSC, or equivalent catalog, and figure 1 of everything and a few of some of the more popular items to have on hand, or, be able to procure quickly when a job comes thru.
Learn as much as you can about doing biz, as well as being a good machinist, the boneyards are full of good biz guys that couldn't machine their way out of a wet paper bag, and great machinists who couldn't mange going to the can without it
being bad for the biz.
Not trying to discourage you, that will happen by itself, you have to be a good learner, and you have to believe in who you are, as well as where you are headed.
Being in charge of your own destiny is a lot more responsibility than most realize, but, the reward, when it comes, is worth the fight. (That's what I keep telling myself anyway!)


My .02, and worth every penny!!
 
The first thing you should look into are city and county laws governing business license. When I first started my shop was in L.A., but the location was considered county, and didn't require a business license. When I moved it to Ontario, the city required it, and swooped in fast! Also, although I make cutting tools, to the cities engineer's, I don't "make" anything. I only alter existing cutting tools, or blanks. Which is technically correct.
Spend a little time researching as many aspect's of the venture that you can. Or even try to get a few solid commitment's from your partner's contact's and go for it. What's the worse that could happen?
An accounting, or business class wouldn't hurt either. Or if you're working, pick up a machine and try it part time at night. You'll know pretty quick if being in business is for you.
 
I live in Portland, and just started up a small fab/machine shop, granted I have a lot of work coming from a niche field, making stands and mounting systems for glass artists, I'm 25 and didn't think twice about "going for it" If I need to I can still work at a job for someone else, and go to my shop in the evening to finish something up. I also just got a business license and insurance, took a little time, but it really wasn't difficult at all. I get a very large (for me) job a couple times a year that I just dump right back into my machines and tooling and there is nothing more rewarding then moving a new machine into my shop, which use to be my garage but I've upgraded, having earned it and looking at the new possibilities that are available with it. Don't let anything hold you back whats the point of not going for it? Plus Portland is booming right now everyone I know is busy, I could even use some cnc help making molds for the glass industry.
 
I started dreaming small 6 years ago. I built my shop and added machines as I could afford them. Worked a day job until the stress got the best of me. I had no work to speak of when I started, no money, and nothing special to offer. First week in the shop, I cleaned out my bank account and bought a Lucas 4" boring mill. Work has been overwhelming lately. I have only done one job on that boring mill. The customers all tell me that mill is why the called in the first place. No one else has capacity like that. In 2 months I have landed 4 major customers, all projecting $100k/yr each in work for me.

If you can find yourself a big machine, the small work will just flow in. At least thats my experience.

Dont forget, if you get a job, do it reasonable and absolutely perfect. I did an all nighter to get a new customer running, and he said it was the most beautiful part he has seen. That all nighter also landed me a few more POs for the week.

Good luck,
Josh
 
where I'd start is: get your first machine, something specialized and that you are good with. Start taking side work, in off shifts and weekends while keeping the day job. See how things go for a while but whatever ya do, keep the 2 separate and stay tight lipped about what you have at home. Some bosses won't care but there are always those that do. You'll be able to tell what work is out there and at what margin you can get work... thats the biggest variable in the industry. What a guy in detroit is willing to pay may not even be close to the price in Oregon. Biggest thing about being a shop owner is the hours never stop.....the guys who work their 8 and go home that are owners are a mionority.. always something that needs done by the owner.
 
Since it hasn't been said yet, Get a hot dog cart.

Seriously, save your money, buy your machinery used, carefully. Operate part time or as a hobby, let it grow, stay out of debt. You'll find you'll have more in tooling and inspection gear than in the machine.
Keep your day job. Take a course at the local community college if you can't write a business plan.
 
im looking for some advice from some ppl who have been through it and can share some knowledge with me

It's the stuff that's NOT OBVIOUS that can be a problem if you have never had the self employment experience. Coming up to speed on all the paperwork (at once in a short period of time) can be overwhelming, confusing, frustrating, etc.
There is no real way have knowledge of it beforehand, other than talk to others that have gone thru the
learning curve.

You may love machining and machine work, but you may hate dealing with all the other requirements and paper work. Especially since it does not make you money and takes up a lot of your time.
You may possibly need to be a machinist, book keeper, janitor, salesman, machine mechanic, etc.

There's also a guy named Murphy that likes to impart his 'laws' onto you and weave them into your day. He can make things extra interesting......

And all kidding aside, 1+ on the HOT DOG CART

Get a:
Hot Dog Cart
Small band saw
Bridgeport
15" Engine Lathe
Mig welder.

HDC makes you a living, the rest is for hobby and part time side job activity.
 
Keep your day job and work for your self in the eve. Once you day job gets in the way of making money on the side... quit. I had a supervisor of mine (i design tool and dies) he went to machining school when he was out of high school (machined maybe the next 5ish yrs). At the age of 45 he said "f" it and quit his high paying job started setting up for a shop and bought his own machines. Yr later he had his own machines bought and paid for quit his job and did it full time 7 days a week. 200,000 in sales him self first yr.
 
I don't know of all the paperwerk that you guys complain about so much?

Now granted, I haven't handled paperwerk since '97, but I did most all of it for the first 8 yrs.
I don't recall much. ??? ...and I had employees during that time as well. And anyone getting started shouldn't have to be concerned with that aspect for a while IMO.

One thing that I would say is that unless you have just the right work, that first and maybe the second employee will likely not make you one thin dime as you yourself begin to be more and more of a manager, and less and less of a machinist. (You _ yourself don't make many chips on your own anymore simply doo to "running a business" instead of machining)


----------------------

I am Ox and I approve this h'yah post!
 
You kinda have to want to do it because you like making parts and love machines, not for the idea of the money cause there's other opportunities for that.

Now since it sounds like the funds are a bit low to get going my advise is you get a 2nd job so you can have a good feel like 80hr+ weeks. If after 6 months there's somehow still no money aside, forget it. If in 6months you're tired of 80hr weeks, forget it. Now if you already have a love for 80hr weeks, then I guess just borrow some money and give it a try.
 








 
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