Small tool and die job shop

Local manufacturers, plastics and metal stamping firms, machine builders and other shops that need quick custom work or repairs.

Quoted price per job or an hourly shop rate, with repeat repair and maintenance work from a few regular customers.

• Toolmaking or machining experience
• Reading engineering drawings
• CAD/CAM or CNC programming
• Quoting jobs accurately

• Commercial general liability and equipment insurance, and WCB/WSIB coverage once you hire (rules differ by province)
• Zoning and lease terms for industrial units, including power supply, check with your municipality
• Red Seal toolmaker or machinist certification is not always required but customers often value it, check your province
• Some customers ask for confidentiality agreements, and defence-related work may need Controlled Goods registration, check the requirements
• Slow customer payment can strain cash flow, so agree terms and deposits up front

Estimates suggest startup costs of typically around $80,000 to $250,000, depending on the machines you buy, such as milling machines, a lathe, a grinder and ideally a CNC machine, and on your premises.

Monthly revenue is typically estimated at around $10,000 to $40,000, depending on the work you win from local manufacturers and how quickly customers pay. Full-time hours are usually needed, starting at around 40 hours a week.

Check insurance needs, including commercial general liability and equipment cover, and WCB/WSIB once you hire, as rules differ by province. Also check zoning and lease terms for industrial units, and whether customers expect Red Seal certification or Controlled Goods registration.