Want Open my own shop. not shure

[alexibm]

Hi !
My name is Alex. I live in Baltimore,Maryland.

For number of years I have worked as structural steel detailer and produced drawings/CNC-outputs for CNC plasma cutters. Have good CAD knowledge: Autodesk Inventor/Autocad as well as couple other packages tailored to structural steel. Know a lot about welding/cutting steel.

Recently, I have been thinking about opening small CNC shop, that would not deal with structural steel.

My budget is $25-$30k, have space (my huge garage), my father is truck driver - so, I have transportation to haul materials.

my questions are
1) Is $30k a realistic budget ?
2) What kind equipment can I purchase ?
3) What kind of services/products can I offer with such equipment?
4) Will there be a demand for such products ?

One thing I found quickly - guitar/musical intrument parts are in demand.

Thanks !

[SirSmash]

1) I don't see why not if you want to make smaller parts. You don't seem to have much overhead.

2) I'm sure you don't want to blow the entire budget in one shot, it really depends how big of a machine and how many axis' you want. You can easily pickup a 3-axis mill that would do guitar/musical parts, if you want a 5-axis to build boat hulls then you need more money or an insane amount of time where you can learn how to build the machine itself.

3) Whatever you want really, you can do custom design from the ground up, you could let people send you a CAD file and then you ship the part back to them, you could do PCB's, you could take building designs and make models, you could make replacement parts for classic vehicles, etc.

4) I don't believe you said anything other than not dealing with structural steel but there is always a demand for parts and custom products.

[RGeo]

I agree with everything sirsmash said, but whatever you do, keep your overhead as low as possible. I used to have a shop, and when things were good, I got a bigger shop, I bought professional CAD packages, I bought some machines, and I bought a new van. Just then my work dried up, but the bills did not. It's best to work from your bank account rather than your credit line. Maybe buy one small VMC, then wait until you can afford you next machine, cash. Never buy something that would take your bank balance lower than 3 months worth of operating costs. It’s not a bad idea to find some actual work first. That’s how I started my shop; my main flaw was I attempted to grow too fast. Be patient, be frugal, be smart, and don’t let your emotions run your business. Buy what you need based on facts. Keep track of how much each machine makes you in revenue and don’t even think about buying a second one, until the first one has paid for itself. Business is war, it doesn’t mean you can’t be nice to people socially, but when it comes to business (war), dollars are like bullets, and it’s no fun being at war with no bullets.

[thedave]

I have just jumped in myself, and have just started what I hope will turn into a full-time business some day. I highly recommending Bootstraping the business. Buy the minimum to get started, build some parts and sell them. Re-invest all of the profits and repeat. The goal is to keep your day job until you can't afford to stay. It takes longer to do this, and it is harder. However, It is safer and allows you to build a debt free solid business before stepping out. RGeo is spot on. I did that before myself. Here is a link to the Bootstrapers bible. It's free. Great info in there.

http://changethis.com/manifesto/show...strappersBible

[RGeo]

I just downloaded and looked it over, it sounds like the guy knows something. Good looking out, thedave.
/
Maybe one day, I'll try again, but I'll do so with a clear head, not like a teenage boy buying his first POS car, and thinking its Greased Lightning!
/
When self-employed, it’s best to be brutally honest with yourself, otherwise you are working for an idiot.

[DouglasR]

$30k is a bit light, but if you can get one decent cutter, and plan your jobs accordingly you may be able to "stair step" your way up.

In 2001 I started my own shop with $50k. Bought CNC's, some conventional machines, tools, and rented a spot. Started with nice easy jobs that didn't stress me while I got used to the new diggs and such.

I'll never go back!