Re: OT: need advice from machinists

Posted by cdmn on September 10, 2005 at 21:14:36 from (66.228.230.4):

In Reply to: OT: need advice from machinists posted by Midwest redneck on September 10, 2005 at 15:50:54:

I'd say go to some Small Business Administration sponsored workshops. They know what investment it takes to carry a person. I'll bet they will tell you you need about $500,000 in capital, or more to support one employee. Compare to an average farmer, or even an owner-operator trucking operation.
A friend of mine started out by saying he wanted to make at least twice as much if he was working for himself instead of a company, or else it wasn't worth giving up the advantages(?)of a big organization. He operated a high-end used car lot.
Another guy I listened to said any business he started would have to be able to make money for him even if he was injured, sick, or on vacation. He ended up starting campground condominiums all over the country. Sold a few lots, used the money to finance another one. Hired managers and began to live off the rent. That's how it's done. Too late for that idea now. Back then, I found it hard to imagine so many people would live in aluminum houses after they retired.
It's really hard to make a living doing what is a hobby for other people.
Some shops up here demand $200 minimum before you get in the door. Then they tell you it's a 4 week wait to get on the schedule. They'd just as soon make the hobbyists go and bug someone else.
If I were to get serious, I'd want a waterjet machine and some wire-edm-machines (Both of which can be leased). You'll need to run them around the clock. You'd need multiple operators, multiple marketing types, multiple business types and at least a couple programmers. Say a nice little company with $1million a year payroll, and yours being 10% off the top for a management fee.
Just another note: About 10 years ago, I believe our shop was thriving with about $30 per hour overhead, and $20 per hour wages. Overhead went up (accountants can do that) and the business died. I'm out of touch now.

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