Team Thomas of thomasnet.com provides insight into some of the most common hurdles experienced by growing machining businesses. Read the full article at https://blog.thomasnet.com/tips-growing-cnc-machining-business.
Starting a new business can be a challenging endeavor, especially if the entrepreneur is entering a crowded market with large, well-established competitors already in place. Small CNC machine shops face hurdles similar to those of other small businesses, and, like their non-industrial counterparts, have the same potential for securing contracts and growing within the industry despite these obstacles.
Here are some tips and suggestions that may help in establishing or expanding your small CNC shop.
For many start-up machine shop owners, the early days can be an uncertain time in which numerous concerns, such as volume expectations, client lists, or even floor plans, have yet to be resolved. In these circumstances, existing friendships and business connections can be valuable assets.
Whether having friends steer clients in your direction, enter into partnerships, or simply provide advice on business practices, relying on your current connections can give you a useful leg-up.
Target Your Segment of the Marketplace
It is generally a good practice to focus on the specific types of purchasers that will buy your products at the best volume rate. For example, if your shop specializes in producing gear shafts with a diameter under five inches, try to establish relationships with companies that purchase this product at a rate favorable to your production cycle and turnover.
Targeting your market niche will help you make the best use of your specialty. A good example of a company who targets a niche market is Fanuc Spares. They focus only on this specific manufacturer and specialize only in replacement parts. This proved to be a very successful model for what may seem like a limited market. Another marketing method is…