How to Start a Small Machine Shop
- 1). Write a business plan for your small machine shop. The business plan is a document that details your plans, mission, goals, financing needs and level of expertise. Your local Small Business Association representative will be able to help you with this document. This document is used when requesting funding from various financial institutions.
- 2). Select a location for your new shop. The ideal location is somewhere close to the manufacturers or industrial park. A local realtor should be able to assist you with this process. However, if you're already doing work like this on the side, you may have your shop set up at your home. If this is working for you, don't move it. Just be sure that wherever you decide to locate is zoned properly for your commercial business.
- 3). Stock up on supplies, equipment and parts necessary for the jobs you plan to do. If you need to invest further in tools that you don't currently own, do it now. If you can hold off until your business sees some profit, choose to wait, though. You don't have to have everything all at once.
- 4). Keep track of your jobs, profits, inventory and taxes by setting up an organized office area. You can choose to track all transactions using your computer, or you may like the idea of keeping track of everything on paper. Either way, you must remain organized.
- 5). Contact other businesses in your area directly in order to market your business. Talk to plant foremen, purchasing specialists and industrial engineers at your local manufacturing businesses. Develop a network among these professionals in order to stay in the loop locally.
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