According to the US Census there are over 25,000 machine shops with less than 4 employees, not counting thousands of 1-man operations scattered across the country. Making a profit while owning a small machine shop can be tough in these economically depressed times. Here are some tips on making a profit.
Hire family or close friends and classify them as officers not employees. This will help with insurance charges. Check with your insurance agent and state for particular requirements.
Down size – Do you really need that 10,000 sf building? If possible run out of your shed, garage or barn. If not many self-storage facilities now offer storefronts.
Upgrade to CNC Milling – If you have all manual machines consider upgrading to a CNC.
Offer reduced rate services to local manufacturers. Locale manufacturers will have contracted large shops many miles away to machine their product. There are times when they … Read More