Starting up a new firm?

[bolton78]

(admin please move if this is in the wrong place,thanks,aint sure where to put it)

I'm seriously thinking of starting up my own machine shop,ive more than likely got the custom,cos the company i work for is really,really struggling to find a good local machining company,therefore im thinking of setting up for myself and getting the work of my boss,which i think he would give to me cos he is so desperate to get this work done,at the moment i reckon i would have a minimum of 5 years work.

Problem is i aint got the 1st idea of where to start.Is anybody else got there own company who can point me in the right direction?

I.E

Premises
TAX
VAT
Buying machine's

etc

[cam1]

Hi:
Basing a large investment in a business on a "contract" with your boss (soon to be x boss) is risky. Ask yourself who else will you machine parts for when or if the contract
were cancelled?
You need to have a client base in order to survive. Start small (preferably at home), invest in the best tooling you can afford, and when you have a steady (not big) flow of work entering, then think about leaving your day job.

regards

[Kool Parts]

Bolton78,
There are many things that "could" go wrong. I have been on the receiving end of most of them. But if your employer is on board with this, then I would lean on them for a lot of the answers. After all they are in business now so they know the ropes. If they give you the "well when you get set up we will see" then you know to run. But if this really helps them as much as you then they will do everything they can. Luck!!
Gary

[inthedark]

Go see the guys at S.C.O.R.E. they will help and it's free. You should have a local office near you.

[ironDigit]

hi there,

i got 2 pence i can spare,

pence1 : Could it be that there are more comp's in the area just as desperate to get their work done as your own employer ?

or is pence 2 of matter and he's just not prepared to pay fair/enough ,so most shops won't take on a contract.

When they do get their parts done ,where and who makes them .At what costs and conditions?That could rule pence in or out.

I'ld try to stay employed and negotiate a deal for parts you make in your sparetime and try to build up to a full-time comp.

good luck now.

[ISHY]

Risky, but if I were you I would talk to your employer first, if you can get him on board you have something to take to the bank so they will be more likely to help. I assume you already know how to use the machines etc?

[billystein]

I have just left my job. it was time to work at my shop full time. I really got busy and had to work here 7 days a week. I have been working full time and coming here for 30 or 40 hours a week. I got my own place 1 year ago. I got a new haas mini mill in January. I have been pretty busy all year.
I do not know if I have enough cash flow to stay "unemployed" but I made it through the first months payments. The jobs are coming and the $$$ is ok so with some hard work and a little luck I think I will be all right. I told my wife that I would find a job after 2 months if things got bad.
Just remember. just because your shop makes $100,000. doesn't mean you made that much.
this is the 4th year in business. starting a machine shop without major capital is very expensive. probably more than most small businesses. until now I have been able to gete 2 cnc vmc's many tools and supplies but I have not really made a living from the shop.
the next year will tell a big story in my business and I look forward to the challenge.

billy

[cam1]

Hope it works out for you billystein!
Luck is where opportunity meets preparation.

regards

[Zumba]

5 years work eh?

See if your boss wants to invest in your business. You'll trade him parts for equity. Explain to him your pricing schedule. If he laughs at the idea, then you're back to square one... no shop and more importantly, no clients. If he likes the idea, start researching.

I'd recommend getting someone else on board to take care of logistics, accounting, and new client relations.