Learn the core ingredients of a multi-billion dollar machine business.

1. Every business usually starts with the passion of an
entrepreneur.

2.  Profit and passion go hand in hand as the business
performs its operations. Such is the case of most small
machine shops. Instead of growing their operations,
they stay small because they are contented with the
service that they bring to their customers.
Nonetheless, these small machine shops are still very
vital in the machining market.

3.  Most multi-million dollar machine shops refuse to
bring services to minute and uncomplicated jobs
because it will interfere with their big contracts that
require much time and effort. Thus, these minor jobs
are reserved to small machine shops.

4.  Starting a machine shop is just like opening any business.
The business plan should contain the right materials,
equipment, and the processes that would be used. The
skills of the machinists must also be noted.
 But on top of all these, it is very important that safety
procedures would be detailed in the business plan.
Workers are highly exposed to various types of machines,
thus guards should be installed to prevent injuries.
 Examples of these safety tools are lathe guards and grinder
guards. These guards must be installed prior to operations
of the machine shop.

5.  When you have already executed the initial part of your
business plan, it is necessary to carefully study the
marketing and operating functions of the shop. This
two should match or else the customers would look for
another machine shop.

6.  Turning, drilling, boring and milling are some of the
basic machining operations conducted in small
machine shops. Turning refers to the process of
making a rotating tool with a cylindrical shape. The
turned project is attached to a rotating workpiece,
which also dictates the speed of turning.
 On the other hand, drilling is the process of making a
circular hole. Boring is the process of enlarging a hole,
while milling is the process of making a plane with the
use of a multiple cutting edge tool.

8.  Since your shop is small and has less contracts
compared to large machine shops, then your
customers expect quick delivery of products. This may
entail working overtime but just keep in mind that
providing the customers with what they need is the
top priority.

9.  Large machine companies usually have high asking
prices because of the amount of labor required. On the
other hand, since small machine shops have less
equipment, less machinists and less space, then your
prices must be more reasonable.

10.  Most customers are willing to pay a higher price for
quality, even if it means a longer time until delivery.
Thus, you may have higher prices compared to other
machine shops, but clients must be satisfied with the
quality of your work.
 ordable price.

11.  Later on, you could weigh the option of enlarging
your business. There are many business loan
plans available that could add to your capital for
expansion. Just make sure that you have studied
the feasibility of your plans before proceeding.