How To Open a Machine Shop

Knowledge on tools and machines is the best skill that you must possess if you plan to open a machine shop. You may have the best equipment, the right amount of money and the most strategic business place for a machine shop, but if you do not know how to operate a simple machine or are not familiar with the uses of your tools, your machine shop business will not be successful. Apart from the said skill, you will need these tips to help you open a machine shop:

  1. Search for the best place to situate your machine shop. Since machines and tools could have massive sizes, choose a property that is big enough to accommodate all your instruments. You may need to purchase a property. Leasing one is also an option but since machine shops run on long terms of operation, the lease fees can accumulate to a huge amount, and may even surpass the price of the property. Make sure the location of the property is allowed by zoning laws for machine shop operation business. Strictly speaking, the location for a machine shop should be the number one consideration when putting up this kind of business. Without a suitable place, it is impossible to establish a machine shop.
  2. Construct a business plan for your machine shop. Write down the equipment you need to purchase, the number of persons you have to hire as well as your target customers. It is also important that you include the different types of services you will be rendering.
  3. Register your machine shop business with the proper government agency in your state, city or county. Apply for a state sales tax number. Comply with all laws and regulations that cover machine shop operation.
  4. Organize all the equipment you need to operate your machine shop. You may purchase your tools and machinery. You may also lease them if you do not have enough money to buy them out right. Do not be discouraged if you cannot buy your own equipment yet. As your machine shop business prospers, you will be able to make purchases in due time. Know also, what tools you need. Consider investing on head borers, cnc tooling packages, drill chucks, adapters, fly cutters, machinery pads and collets.
  5. Put an office space in your machine shop yard. You may set up a small building in one area where you can accommodate your customers, keep your billing files, costumer lists, computers, filing cabinets, tables and other office paraphernalia related to your business.
  6. Employ people who have previous work experience with machine shop jobs. It is hard to train people on the job. So make it a requirement for applicants that they should have knowledge and expertise with machines and tools.
  7. Hire a secretary for your office. You will need someone who will do telephone calls, send billing statements to customers, handle payroll lists, file data and man the office.
  8. Stock up your machine shop with tools and spare parts especially those that are hard to locate or which often come short with supplies.
  9. Contact a supplier who can give you ample provisions for your needs.

Managing a machine shop business can be a challenging job. Manage your business personally so you can monitor its development more efficiently. You may assign an overseer if you cannot be physically around all the time, but at least, be present and run it on your own 90 percent of the time. 


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