Machine Shop Business Plan and SWOT Analysis

Machine Shop Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Machine Shop Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Machine Shop business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Machine shops provide a very unique service to the economy. Using CAD renderings and other inputs they are able to produce a number of parts produced from metal as well as other materials that are used within the manufacturing process. Although they are a business that usually operates behind the scenes, they are extremely important part of how manufacturing businesses conduct their operations. As such, most machine shops are able to remain profitable in most economic climates. This is especially true among businesses that specialize in prototyping. Usually, most machine shops are able to generate extremely high gross margins from their services given the precision level of engineering and machining that is needed in order to reduce these products. Once established, machine shops are generally able to generate highly predictable streams of revenue from ongoing purchase orders relating to this production of specific parts. The barriers to entry for machine shop are relatively high given that the owner operator usually needs to have an extensive amount of experience in order to provide these services and products to the client base. The startup cost for machine shop generally range anywhere from $100,000 upwards of $1 million depending on the initial size of the business, location, and specialized nature of the services provided.

As with any business that is launching operations, it is important that a machine shop business plan is developed. Within this document a profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios paid should be developed in order to properly present the business plan to a bank, lender, or investor. Usually, most banks, investors, and other funding sources are very happy to provide capital to machine shops given the large tangible equipment base that will be used at from the proceeds of the loan. The gross margins generated from services are also relatively high. As such, this is a business that is very economically viable and favored by financial institutions.

A machine shop marketing plan should also be developed so that a appropriate way to develop ongoing relationships with manufacturing firms and engineering firms can occur. These relationships are of the utmost importance to most machine shops given that they require ongoing relationships in order to maintain a highly predictable revenue stream. As with any business these days, it is important to have expansive online presence that showcases previous work of the machine shop, hours of operation, production capabilities, and how a potential engineer or manufacturing firm can place an order for these specialized parts and services. It is generally not necessary to develop marketing strategies that target the general public and less the machine shop is specializing in automotive parts.

Most owner operators of these businesses also develop a machine shop SWOT analysis. This document showcases the strengths, weaknesses, opportunities, and threats that face a machine shop business on a day-to-day basis. For strengths, once established these businesses generally remain profitable at all times. Additionally, the competition for a machine shop is relatively limited in any local market. For weaknesses, the startup expenses are extremely high and the barriers to entry are high as well. As it relates to opportunities, these businesses can often expand rapidly once they establish a strong brand name in that they are able to receive ongoing purchase orders on a regular basis. Pertaining to threats, there are no real major threats that face machine shop businesses at this time.

In closing, machine shops can be highly lucrative and profitable small business investments. However, it is extremely important that the owner operator has a complete understanding of all operating facets of these businesses as they are extremely difficult to operate.