Tool design and sourcing studio

Small and mid-sized manufacturers, product developers and start-ups that need custom tooling but have no in-house toolroom.

A design fee plus a margin on the machining you coordinate, and ongoing fees for revisions and repairs.

• Tool and die or mechanical design experience
• CAD software
• Project management
• Building supplier relationships

• Professional liability and commercial general liability insurance, because a design error can be costly
• Home-based business rules, check with your municipality
• Clear contracts on who owns the designs and who pays if a shop makes a mistake
• Depending on a few shops for quality and lead times, so line up backups
• Some provinces regulate the use of the term engineer, so check before using it in your marketing

Estimates suggest startup costs of typically around $3,000 to $15,000, depending on factors such as your CAD software and home office setup. Partner machine shops make the parts, so you do not need to equip your own workshop.

Monthly revenue is typically estimated at around $2,000 to $10,000, depending on how many projects you manage and the size of the tooling jobs. Hours can start at around 15 a week.

Check professional liability and commercial general liability insurance, since a design error can be costly, and home-based business rules with your municipality. Also check contracts on design ownership and mistakes, and whether your province regulates the term engineer in marketing.