Small-unit toolroom for local manufacturers

Local manufacturers, plastics and pressing firms, engineering companies, prototype makers and product developers who need tooling quickly.

Quoted price per job based on machine time, materials and design work, plus repeat repair and modification work from regular customers.

• Toolmaking or machining experience
• Reading engineering drawings
• Accurate quoting and job planning
• Working to tight tolerances

• Public liability insurance, plus employer's liability once you take on staff
• Machine safety, guarding and risk assessments, check HSE guidance on workplace machinery
• Check the unit's lease terms, permitted use, three-phase power and business rates
• Late payment and reliance on one or two large customers, consider deposits for bigger jobs
• Customers' drawings and designs may be confidential, check any NDAs before signing

Startup costs are typically around £25,000 to £120,000, depending on the unit and how many milling, turning, grinding or CNC machines you buy. These are estimates, so price your machine list and unit carefully before committing.

Monthly revenue is typically around £4,000 to £20,000, depending on your machines, the jobs you win and your capacity. The estimate assumes at least about 35 hours a week. Revenue is not profit, so allow for rent, power and materials.

Check public liability insurance, plus employer's liability once you take on staff. Check HSE guidance on machine safety and risk assessments, and the unit's lease terms, permitted use, three-phase power and business rates. Check any NDAs before signing, as customers' designs may be confidential.