What to know before you open a machine shop

The satisfaction of owning your own shop - it’s a dream for many. Before you jump in, make sure you understand what’s involved in opening a machine shop for the first time.

At All Industrial Tool Supply, we’re happy to share our knowledge and experience to help you run a profitable business. Here are some things you should know before taking the plunge and opening a machine shop:

Have a plan

Write a business plan for your new machine shop. It should describe the industries you plan to target, and how much capital you’ll need for space, tools, and equipment. Your plan should describe the initial startup costs, and when you expect to be profitable and recover that investment.

Don’t forget that buying a machine is just the tip of the iceberg - you’ll need support equipment to inspect, deburr, move and store parts, as well as general hand tools and specialty tools.

Understand your market

Will you work in aerospace? Automotive? Have an understanding of who you think your customers will be before you begin, and have a plan to reach them. Don’t try to be everything to everyone - you should be prepared to turn down projects that aren’t a great fit, freeing you to pursue those that are.

Choose a location and obtain permits

Before signing a lease, make sure your location is zoned for the type of work you plan to do. Many municipalities have specific restrictions on the use of hazardous chemicals, waste collection, and noise ordinances. Make sure you understand the restrictions before committing to a space.

It’s also easy to overlook electrical power requirements. Make sure to confirm availability of the electrical power you’ll need to run your operation.

You’ll also need doors large enough to move machines and material in, as well.

Don’t forget to unplug

When you own a machine shop, you aren’t just a machinist, you’re a business owner responsible for taxes, human resources, marketing, customer support, and more. Stress levels can be high. Make sure you take some time for yourself on a regular basis to maintain your physical and mental health.

Need help?

Our team at All Industrial Tool Supply has a wealth of experience and education in machine shops. Write or call anytime for help.