Wanting to startup - my view on options

Business Philosophy
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So I have been trading for about 6 months, still low volumes, but it’s in addition to my day job so that suits me. I see lots of people ask about starting up, so I thought I’d give my view of why I went the way i did.

First, everyone is different, has different background/knowledge and experience.

Personally, i have worked in process improvement for years, and am a programme manager by day. So pretty organised, competent manager, understand business and have seen good and bad management and processes.

So for me, the gap was the machining skills and equipment.

I sourced some 2nd hand equipment and ran it in my garage, making simple parts I needed for my motorcycle.

Youtube was a big help, and I can now make parts to a reasonable standard, but I’m still far from the level of a formally trained machinist.

So, competing for job shop work wouldn’t have been an option for me, no contacts, I have a day job, very limited time, limited equipment, and limited skill set/experience to draw upon.

The way I moved forward is I found machining opportunities in my hobbies, simple parts that solved problems, I researched and took the best from other similar products, but applied to my own little niche hobby area.

My logic was, competition for common/commodity type products would be fierce, which would mean I couldn’t stay competitive once people took the idea and outsourced it (a sad reality). I also couldn’t keep up with big volumes. So I focused on a really niche area.

I made some parts, had them tested by people i knew and trusted, then once the kinks were worked out I launched on social media to buy/sell groups for my specific hobby. This was pretty much zero cost, apart from a few free parts so word spread.

I saw my first product as a way to get the R&D paid for, so the money I invested up front would get paid back through sales. This first product is not about profit, in fact its not even about cashflow. Expect to be dipping into your personal money a lot till you have a decent range of products or a reasonable amount of volume.

As a start up, everything takes time, and lots more than you imagine.

Getting a part dialled in through cam/cad/machining and product feedback is a big part of that time, but so is learning, goofing a part. Not to be underestimated is the time it takes to build a brand, answer queries, make a website etc.

So what are the takeaways:

  1. you dont need to be a time served machinist to give it a go
  2. if you make your own products and sell them direct you get 100% of the profits, but 100% of the headaches too
  3. If you focus on a hobby you are happy spending money on, then it will likely be a product category others are happy to spend money too
  4. expect it to take time to build into profit making territory, know this before you start and be sure you have the money available to see it through, but don’t kid yourself its a business until it is self-sustaining, running something in the evening/weekend will likely be a hobby level at first - that is OK, but recognise it as what it is.
  5. product development and building a brand is very time consuming

So it’s not an easy path, but it’s totally doable.

Over the next few months I will bring out a broader range of products and be able to make that jump to turning a real profit

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Sage advice @AndrewGiles!

Realistic expectations up front is one of the many keys to success down the road!

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I am trying to start my own business with a product I am working on. And I totally agree with what you said. Job shop machining is VERY competitive with many shops having years and years of experience of how to machine more efficiently and making parts faster.

For me, with little machining experience, the best way to start a machining business is to create a product. One that customers want, and one that I can take my limited time and money to specialize in that product, To create a niche that allows you to make money doing what you love is hard to do. One way to make a good product is to find where there are other product very similar on the market, but do a poor job, and are only used because there isn’t anything better out there. Take those products, and create a similar one that fulfils the customers needs, at a price there are willing to pay. Sometimes it is simple this like making it 2 inches bigger, and designing it so it will not break after 2 months of use. Yes, This means your designs could be copied,and sent off to china and made for less. I would look at these products as a learning experience, a way to learn about starting a business, handling customers, warranties, production processes and a way to get off the ground. Just make the most of that product that you can, and If someone in china copies it, use the skill, money, and equipment that you have gained in the process to.

  1. repeat the first process, or
  2. enter a slightly different market that originally you did not have the equipment, skills or processes in place to compete in.

just my 2 cents.

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Very good advice and the exact approach i’m taking, by the time someone has copied my design and taken it to China i will have the resources and reach to move on to the next planned product. Stay one step ahead.

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@Warren_Bullock may give you some ideas and tips.

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