Any one run a small shop

[champ110]

Just wondering if any one runs a small fab shop. Im working on starting my own as the isn't anything in the area. I need to find out how to figure projected income for my business plan. Also any tips or advice is welcome.

[Bugpac]

Projecting income is a guessing game, Income all depends on what effort is put forth.. Its a tuff call to make IMO..

[N8ball]

I would start with a specific product. Railing for example. Find out how many homes are being built near you (demand). Building permit numbers should be available from your local municipality (city, county, or whatever). Examine all of the competition (supply), Carpenters for example can build railing, just not out of metal. Also look at how easy it is to outsource that work. Can the railing be made in Mexico and shipped, or is your product unique enough to only be done by you? SWAG how much of the work you can realistically get. Just because there are 3 other companies doing a similar thing, doesn't mean you will get 1\4 of the jobs.

Add up all recurring costs (rent, power, insurance, welding and grinding consumables, etc.) Also add up nonrecurring costs (equipment). Figure what kind of profit margin you need to grow at a steady rate, and also how much you need to pay yourself to survive. Adding all these things will give you an idea of how much revenue you need to generate.

You will have to figure out how much you can actually generate, and how much it will cost to make it. Write it all down and crunch the numbers.

Good Luck!

[ProtoDie]

I have a small CNC machining, fab & design shop,

Plan on working 24/7 with unpaid vacations, 1st, and 2nd shift,,, President & janitor and every position in between.
Work 85 hours & hope to get paid fo 30.

Banks are pretty tough with lending to small business in this area (MI) anyhow.

If you have a spouse with a job, hopefully she has health care. This would help a lot.
If you can keep your personal assets seperate from the business,,,that is best if it does not work out.

Or if you have a job, and can start your business on the side, that would be a great way to safely build your customer base.

Most of this sounds negative,,,,sorry,,,cause it is & the economy is tough right now.

But If this is what you want to do,,,,then do it.
We spend more time working than anything else,,,so if you enjoy your job / or work, then it is not really a job, it is a lifestyle.