Small Precision Toolroom with CNC

Plastics molders, stamping and assembly plants, medical device and electronics makers, and other manufacturers that outsource tooling.

Quoted price per tooling project or an hourly machine rate, plus material. Repair, modification and maintenance work for existing tools can add steadier income.

• Toolmaking and CNC machining
• CAD/CAM programming
• Precision measuring and quality checks
• Quoting and project scheduling

• Local business license, zoning for industrial use and a certificate of occupancy; check with your city or county
• General liability, product liability and property insurance, plus workers' compensation once you hire
• OSHA safety requirements for machine guarding, noise and coolant or chip handling
• Large equipment costs and slow payment from some customers can strain cash flow
• Larger customers may ask for quality certifications such as ISO 9001, so ask early
• Export control rules (such as ITAR) may apply to some defense-related work

Startup costs are typically around $80,000 to $350,000, depending on the CNC mills, lathe, grinder and inspection equipment you buy, plus your leased space. Large equipment costs can strain cash flow, so plan your funding carefully.

Monthly revenue is typically around $12,000 to $60,000, depending on your customers, the jobs you win and staffing. Slow payment from some customers can strain cash flow, so treat these figures as revenue estimates, not profit.

Check local business license, industrial zoning and certificate of occupancy with your city or county. Check OSHA requirements for machine guarding, noise and coolant or chip handling, plus insurance. Larger customers may ask for ISO 9001, and ITAR may apply to some defense work.