Precision machining job shop in a small industrial unit

Local manufacturers, equipment makers, medical and electronics companies, and larger shops that outsource overflow work.

Quoted price per part or batch, plus setup and tooling charges, with ongoing purchase orders from repeat customers.

• CNC programming and setup
• Reading and interpreting drawings
• Quality inspection and measuring
• Quoting and job scheduling
• Customer relationships

• Check city or county zoning, building permits and any business license for an industrial unit
• General liability, product liability and property insurance, plus workers' compensation once you hire
• Customers may ask for quality certifications such as ISO 9001, so check what your target customers require
• Cash flow, since customers often pay on 30 to 60 day terms while you buy material and pay rent upfront
• Check rules on handling coolants, oils and metal waste, and electrical supply for larger machines

Startup costs are estimated at typically around $60,000 to $300,000, depending on the number and type of CNC machines, the industrial unit you rent, tooling and inspection equipment.

Monthly revenue is estimated at typically around $8,000 to $40,000, depending on your machines, the customers and repeat orders you win and the batch sizes you take on. Expect full-time hours of at least about 40 a week.

Check city or county zoning, building permits and any business license for an industrial unit. Also check insurance, quality certifications such as ISO 9001 that customers may require, and rules on handling coolants, oils and metal waste and the electrical supply.