starting up new business

[matty82]

Hi guys,

Only just discovered this little gem of a website, and thought Id get some ideas from people.

Im looking at starting my own cnc milling business, specialising in mainly automotive parts. Ive been involved in and around cars (mainly drag racing) for the best part of 15 years, and I reckon there's a definate market out there for good quality billet parts.

Was just after a bit of advice/suggestions from those out there who have started a business up from scratch, what to look out for and things like that. I have spoken to a few places and found a couple of machines that I like, its just a matter of getting some $$$$ and going for it. Any help would be greatly appreciated.

Cheers,

Matt

[duform]

Hi Matt,

Names Luke. I just started my own business as well. I am an Australian but now live in Montreal Canada. I worked in the marine industry in Australia but recently launched my own consultancy called Duform™ | Consultants Duform | Commercialization Consultants.

I have expanded my business from consulting to now contract manufacturing as I just bought myself a CNC CO2 Laser Cutter. I also set up another company that manufactures home gift products that I now distribute to retail stores in Quebec and Ontario. I bought the laser cutter to build my product catalogue but also provide contract manufacturing (controlling my costs and offering short run product launches that meet demand).

I agree, this website is great to get in touch with like minded people. My push for setting up my own business was I have to spend an equal amount of time in Australia as I do in Canada so working for a company was not possible. I quit my job, and sat down for around 3 months preparing a business model that will allow for the least amount of capital investment, with maximum returns.

Although I am still very new to setting up my own company, the learning curve has been very rapid and I am now secure with my investment.

If you want to talk more, you can get me on Skype. luke_duform. Otherwise send me an email luke@duform.com

Good Luck mate.

Luke Kirkwood

[Dualkit]

Not to be a kill joy, but the automotive field is pretty cut throat, a lot of R & D time to prove a product if you do it right. In other words get some out in the field to prove the durability of a product before selling thousands and find out you have issues. Once you have something you can manufacture, market and sell for a profit, somebody will make knock-offs and all your R & D time will not get repaid. I sold dual alternator kits, hence the name "Dualkit" and found many people copied my design. As far as rampant copying I have more than a few times had people ask me how much to make something automotive and sent me a link to an E-bay ad. It isn't worth it to spend the time to patent everything you come up with, a person just has to make a few changes and they can get around a patent. If you are going to do automotive products the best bet is to come up with a high dollar, low volume item that won't attract the copy cats. Another example, had a friend get an o-ring set for fuel injection that wasn't right. He searched the internet over and found what seems like a 100 people selling the same kit with the same one wrong O-ring in it. Obvious one person marketed a bad product and 99 people copied it.

[duform]

Hi DualKit,

I like your point of view. I use to be the R&D manager for a marina company so a lot of money goes into field testing and patents (when the right technology is developed). When you have a multimillion dollar marina go in and it is expected to last over 25 years, your R&D has to be spot on.

I did a big flip and now manufacture small home ware products. I believe in speed to market with short product life-cycle. Get in and out before the copycats and start something new. Patents are only worth the time and money you are willing to waste.

But as you stated to Matt, I agree. He should focus on very low volume, high cost parts that never sit on a store shelf but get thrown straight into a drag car. Costs are easier to control, less headaches.

[matty82]

Thanks for taking the time reply guys. Most of the stuff I'd be looking at doing would be almost one-off custom jobs to suit a particular engine or car type. I have made a few things in the past after hours at work, and they mainly consisted of adaptor plates, brackets and custom things like that, so Im not really too concerned about R&D or anything like that.

But once I do start my business, I have some ideas for products I want to try and get out there, but even if they sell well, Id probably only sell 30 a year I reckon. The rest will just be custom jobs for guys who want shiny billet parts for there cars. And Im not worried about copycats, because the stuff I make is high quality and precision, and unless you have good skills, you cant copy that!

Matt