The United States manufacturing industry has surpassed 2 trillion dollars in annual revenue. A big chunk of that revenue is thanks to the CNC machines employed in the production process. CNC machining has become more and more integrated into the manufacturing process and advancements in technology have made them more efficient and more widely available.
If you’re thinking about getting into the manufacturing or CNC machining business, there is a giant market out there awaiting you. Below is an overview of the CNC machining business and what you need to do to break into it.
The basics are steps that all businesses of any kind must take. These include: creating a name and brand for your company; registering it as a legal entity; creating a concise business plan, especially if you’ll be looking for investors (there are many websites out there which offer templates for business plans).
It may be a good idea to consult with a lawyer when setting up your business. Getting registered properly and taking care of taxes can be pretty complicated and not something you’d want to attempt on your own.
Investing in the Right Equipment
CNC machines are getting more and more specialized. It’d be great if there was one machine that can do everything. However, as the manufacturing industry has gotten increasingly complex, the jobs that machines can do have become increasingly narrow.
And investing in multiple expensive machines often isn’t possible for a startup company. So, you’ll have to figure out exactly which kind of machining you’ll intend to do and likely offer a small number of services, at least to start. This will keep your starting costs at a minimum.
For example, many small machining startups begin with sheet metal or wood carving CNC machines. For example, the X-Carve is an affordable CNC machine that’s perfect for startup businesses.
Develop a Marketing Plan
Bringing your product to market is another challenge that many startups face. Even if you offer a terrific product, you’ll have to find a way to make your product known.
Approaching buyers directly is one way to do this. Informing companies or customers of the services you offer with cold calls and emails is a common approach. However, this is a rather low percentage method and requires reaching out to many different prospects.
Another way to do this is by using tools offered by site like LinkedIn. They offer a “sales navigator” tool, letting you reach out to a number of potential customers.
Understanding the Machining Business
There is a lot that goes into starting a business. The machining market is huge and there are many niches out there to fill. Starting up your company and obtaining your first client will certainly be a challenge and not many take the chance. But that just means there is ample opportunity out there.
Focusing on the small details can yield amazing results. Create a quality product, find clients that you can trust and you’ll be on your way to a big piece of that 2 trillion dollar pie!