I am looking for some free info from people who have had experience in this and seem to know what they are talking about. I am looking to open a machine shop, it has been a dream of mine since highschool. I am an experienced machinst and know what I want to do. My question is do I buy the machinery and hope the work comes or do I beat on doors get the work hurry up and buy the machinery and hope I can keep my first customers happy with my delivery time. I already have the building so that is not the problem.
Thanks to all that help.
Shawn

Equipment first, customer second. When I opened my shop I went and bought a cnc mill, I had no customers and still had my old job. It's hard to get customers without equipment. customers want to know what your capabilties are, can you handle the work you are trying to get? Not sure what type of work you are trying for. as far as cnc stuff haas is a good place to start, with about $500. down and good credit you can lease a haas mini mill for about $500. to $700. a month I think you can do just about the same with a lathe. There are lots of used machines out there as well shop around. The one thing thats difficult is to have enough money on hand at all times for material, tooling, hidden costs equipment break downs and so on. Hope this helped, I would think you are going to get a lot of advice on this subject. Lots of luck. You can't fail if you don't give up.

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Don Cook

On the other hand, anybody can buy a machine, but getting work for it is a different story, that's my personel experience.
I think the ideal get the job , get what ever equpment You need after You that job. In reality it's a little both, buy equipment here and there at good deals, and still add more for certain jobs.
If You like to spend money and buy things, starting a machine shop is the way to go......
Live is an adventure
Frank

I started my shop 3 years ago. The first thing I did was line up a couple of customers with jobs that had long lead times. I then went out and bought the machine that I need for the majority of the work. I ended up buying new because it was a lot easier to get financed, and I could get better interest rates.
The one piece of advice that I would give you is, figure out how much $$$ you think you are going to need for the first few months, then double it. As cook said the toughest thing in the beginning is having the money for tooling and material, until you start getting paid.

Good Luck!
How hope things go well for you.
Clint

Thank you all for the advice so far, keep it coming. I need all the advice I can get. If someone outthere has seeds for the money tree let me know.
Shawn

Cook makes the best sense.Equipment first then the work.Otherwise you're putting the cart before the horse.If you are working elsewhere keep the steady job till you really know what you're getting into.Especially aerospace.You'll need iso certification and all sorts of other crap for aerospace.My advice is prototype and r&d work for your own product.If you're a well seasoned machinist there's no limit to what you can create.I'm presently engaged in doing exactly that.But with mini machines (taig cnc micromill,harbor freight mini lathe,etc).If just one out of several of my ideas catches a stores interest and i'm shure more than one will then it's just a matter of farming the work out perhaps even to my own boss and let them deal with the production problems.If you believe in your skills then use them to your fullest potential.Over 25 yrs i've had to invent a jig or fixture to make some other persons part (mostly aerospace) and if i can invent that then why not something of my own.Thats the way i look at it if i don't i'll be spending the rest of my days doing other peoples inventions making them ritch and me old.Good luck on your endeavor whatever it may be.

Hi Shawn,
First off, I wish you the best, starting down the path of becoming a new machine shop owner is a extremely tough at best, some the keys to success are; solid business plan, good credit, good contacts, good salesmanship and thick skin. We have been in business for 30 years, with many ups and downs, even more now with our overseas competition. Foresight only comes with experience, so expect to fall every once in a while and learn from it, quoting from many; "A good business man makes a mistake once, a poor business man makes the same mistake twice and expects different results". Now enough of my BS, and onto the sales pitch, If you are in need of some good used equipment, I have several VMC's, lathes and misc equipment for sale. These are all running on our shop floor. We have learned our lessons too, and we are redesigning how we do business, more production oriented equipment.
GOOD LUCK and BEST WISHES!!!!!!!!!!!!!!!!!

Chip Coale
Digna Machine Corp
410-876-6336

I am looking for a lathe, let me know what you have.
Thanks for the advice.
Shawn

You have a PM

Chip

Shawn,
I went down the road a couple of yrs ago, I did just go out and get the equipment then I found the customers. The one problem that I had was my partner was young and was happy to be an owner and not work anymore.
So that left me to do all the work, find the sales, buy the materials,do the programs, etc. I quickly realized this and decided to buy him out.
What I would recommend is that you stay in the place you are and purchase the equipment outright do what you can on the side for a discounted cash price, keep good records the thing you won't be prepared for will be the extra costs, Insurance is huge especially on new equipment and property, and taxes
materials just starting out are going to be COD until you establish yourself (about 2 yrs.) not trying to discourage just thought of a couple of things.
Jerry