Business Plan for a Prototyping/Hobbyist Shop - Can It Be Done?

[scwhite]

At 65 years of age I have some money in the bank, a 2700 square foot building suitable for a shop in inner St. Paul, MN, experience starting and operating a business (not related to machining) and an enduring interest in machining (albeit, no experience). My recent mid-winter get-away to Austin, TX was spent using the TechShop Tormach machine. My question to this group is;

Is it possible to combine these assets into with a financially viable work space oriented towards serious hobbyists and budding entrepreneurs?

Current thoughts:

· Building costs $3000/month to run

· $75000 worth of machines, benches, etc. ≈$1200/month x 7 years

For Instance

o Tormach 1100 @ $15000

o Tormach Slant Pro Lathe @ $20000

· Cost/month ≈$5000

Questions that seem important:

· If the facilities are available 24/7, what is going to be the workable number of users vs monthly costs to users?

· Is it workable for the users to pay for a base membership and then so much per reserved machining time?

· Can a handful of users operate a facility on a co-operative basis, i.e., not need a full time manager/care taker?

· How/where would one go to find these users?

· In TX I talked to several TechShop members that were in the process of taking delivery of their own Tormachs. They’d developed products and were selling them to the point that having a machine in their garages now made sense. Would this type of user be common or would hobbyists with more casual desires be the main user?

· Is there a market for offering training, like TechShop and my local makerspace does, where the house and instructors split fees to run classes for newbies?​

Thoughts and Ideas, Everyone??

Ok I got one question you say you have no experience as a machinist but you are interested
In it . Just how are you planing on teaching this trade without any experience when you need to learn the trade yourself . You would have to hire a journeyman machinist and pay him $45,000. Per year just to teach school .

 

[GLCarlson]

If you'd prefer to do a careful evaluation before plunging in, go to your local SCORE chapter. There's an excellent one in MSP. They can help you realistically evaluate what you need, costs, risks, and potential market. And point you to the tools you need to create that business plan. They will also help you assess your probability of success.

 

[coolidge]

The OP is near used Haas CNC mills and lathes at those prices, way better idea and if it goes belly up way easier to resell.

On our local craigslist, look how wide the ways are, note they are linear rails, look at the base its solid cast iron, manual or CNC operation. https://portland.craigslist.org/grg/tls/6096286006.html

 

[MattM]

Hate to say this but this is one of the dumbest business plans I have ever heard of. (And I've been on the losing side of a few .)

This just screams of large capital investment, large time investment, large liability, and very negative ROI.

I wouldn't touch it with a ten foot screaming hot blue swarf.