Need some Sage business advice

[walnutman]

Hello all,
I am very close to pulling the trigger on a new Shopbot. I plan on using it partly for a small side business and partly for hobby/fun use. On the business side, I will in no way rely on income from the side business for family/living expenses. It will be only for additional income, play money, pay for tools, add to retirement funds etc. My goal is to generate around $15,000 to $20,000 per year net income minimum. I dont expect this in the first year or two, but by year three and beyond, that will be my minimum profit goal. I am still learning some of the possible products I want to offer, but Im looking at the signs, crafts, carvings, etc, and maybe some CNC services to other businesses. This is the weak point of my plan as I am still learing the realistic possibilites. Hence my question here on this great forum. Are my goals realistic and, with dilligent work and attention, easly obtainable? I should also note that I alrady have a "very small" side businees building outdoor and kid furniture now. This Shopbot idea was born from my desire to add some unique and custom engravings to the furniture. From there my imagination grew. Anyway, any sage advice from all you pros would be greatly appreciated.

Thanks in advance.

Jeff.

PS, I was able to visit one of the great forum members for a chance to see the Shopbot in action. Tom Byerlee. Thanks again Tom. It was great speaking with you and your advice on the machine was very helpful.

[matt_r]

Hi Jeff,
I have a full time job, but I have my PRT96 for a side business. I do a combination of cabinet work and cutting for 3 different small sign shops.

I put in about 10-15 hours per week into my router business. Honestly, its getting to the point where its getting tough to juggle both, but I manage. My gross sales the first year were about 3K. This past year, 06, it grew to about 14K, and I expect to grow even more this year. I don't expect to take on much more work in terms of volume, but I do plan to modify the type of work I do. I like doing the sign work. I do the cabinet stuff to fill the gaps - and its mostly work for friends.

So, yes, I think your goals are attainable. Sometimes its tough to flesh out what you will do with your bot, and how much you can make with it. I've tried to stay open to various opportunities that have come along. Some projects/jobs are worth doing, some are not. The key, is giving the time frame you've set for yourself. As you advertise your services, and word gets out, your business will grow. One of the best things for me has been leaving my business card on the push-pin board at the local sign supply shop. It has generated a number of clients for me. Another thing that has won me business is having quick turnaround. I try to not have a large backlog of work. Being able to turn things around in a few days has landed me a few jobs.
If you are doing this full time, you should have no trouble reaching your goals.

-Matt

[rookie432]

Jeff,
I'm with Matt on this. The only difference between Matt and I is turn around time. I'm not fast at all. I'm open and up front with my customers that I work full time and spend 10-20 hrs a week on side busines if time allows. I found that if you can do things for clients that they just can't get "anywhere". They will wait for you and pay your price. Anyway I already have enough stress. The client that comes in with the "I'm gonna be on your back until you get it done" attitude...well those are usually the guys that tend to get wishy washy when its time to collect. Don't have much room in my shop for those customers.

What you have to decide is what you are willing to fabricate for money because, believe me, if people realize you have a cnc there will be no shortage of people wanting you to make every strange widget they have managed to conjure up while standing in their morning shower.


It took me a while to realize I had no problems being busy with my cnc machine ...but not everything was profitable. For guys like us who can only commit 10-20 hrs per week to a "side business" we need to be much more focused on profitable endeavors.
Besides if I'm not gonna make money on the project I would rather be working on some strange widget I dreamed up after 3 days with no sleep.


Either that or just donating machine time to a good cause.

2cents

Bill