Do You Really Need $100K To Start a Machine Shop? | The Impractical Machinists 05

Thinking of starting a machine shop? Wondering if you really need $100K to start a machine shop?
Join special guest Ian Sandusky as he shares his journey and insider advice on choosing the right equipment, financing strategies, and managing the true costs of machining-from tooling to software. Discover the pros and cons of new versus used equipment, the importance of avoiding unnecessary debt, and practical tips for overcoming challenges. Packed with valuable insights and some good laughs, this episode is a must-listen for anyone in the machining industry!
Timestamps:
00:22:05 Why Manual Machines Still Matter
00:36:56 Heat Shrink
00:47:08 New vs. Used Machines
00:51:08 What It Really Takes to Start a Shop
01:30:02 Tooling Deals
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Patrick Mcclintock: IG: / job_shopper_tn or PM@Job Shopper TN
Cameron Graves: IG: / machiningiscool or PM@Machiningiscool
Bradley Thomas: IG: / marvelmachining or PM@Marvel
Connect with Ian Sandusky on LinkedIn ( / ian-sandusky-3a223227 ) or learn more about Lakewood Machine and Tool at
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Lakewood Machine (lakewoodmachin...)
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[@iansandusky417]

Thank you very much for having me gents, it was a pleasure!

[@MarvelMachining]

Let's do it again sometime!

[@ArthurField]

Ian man, you dropped some great info to consider, in regards to hiring others to take over some of your responsibilities to free you up to have more time to work on what you excel at. Makes me thing of this book I've read a few times now called "Buy Back Your Time" essentially the author shares his views that often business owners hire wrong, when they should be hiring people to do the things they don't like, so they can do more of what they like.

[@patrickmcclintock7027]

That was a ton of fun dude.

[@rollin9692]

This made me realize a lot of the problems I have running a shop, are self-inflicted issues. Doing things I can have an apprentice do. Just been taking on to much spreading myself thin when I can have some else pack parts and make the apprienctice set up the machines as best as he can. Most related machine shop / content and I appreciate all of the input and thank you all for sharing your experiences.

[@CiviL_Machine]

Can start with next to nothing and buy tools with the money from the job before it. You need gusto and drive that's all you need. A genuine desire to help your customer will get you as far as you want to go!!!! My shop is built 5k at a time.

[@iansandusky417]

Hear hear!

[@alexeymironov1544]

That is one way it can be done for sure!

[@SBSOLOCO]

So much truth to this episode! Before I quit the day job I knew I needed 2 machines minimum. Having one machine doesn’t get you very far. Most the time you’re just sitting around waiting for jobs to get done twiddling your thumbs. With two, you can let one run while you make fixturing or setup short 2nd ops. Now you’re making double your rate with the same amount of time and effort pretty much. I would rather have two cheap spindles starting out vs one expensive fast spindle as a one man show. 🤙

[@LoneWolfPrecisionLLC]

Amen I've got two spindle but need to upgrade my compressor to run both. Should be soon and I'm excited

[@MarvelMachining]

I started with my VF2SS, (I did have a Ez Trak) but I didn't add my VF3SS for about a year. I do highly recommend adding a second machine as soon as possible, not even just for a second spindle to be running, but as a back up if one machine is to ever have problems.

[@SBSOLOCO]

@@MarvelMachining Oh yea that too. lol. Probably the most important aspect of two machines, that backup!

[@motivemachineworks6890]

My first machine was a 1994 Haas VF0 I bought for $7000. The next was a 1999 VF0e for 13k. I inspected both in person, testing backlash, listening to the spindle, etc. Be prepared to fix them yourself. Haas service where I am is usually weeks away. I also didn't want to spend several thousand in maintenance for a $7000 machine. It can be done. I replaced X axis motor cables, draw bars, TRPs, basic stuff like that. I also had a Haas tech who helped me for a few cases of beer on the side secretly. There is always a way! That's the most important thing. I agree people always come up with an excuse why they can't do it. No sense buying the $100k machine if you have no idea how your business is going to pan out. We now have 4 doosans all purchased new in 2019, 2020, 2021, and 2022. Virtually debt free on the whole shop. Great insight in this episode!

[@foxone6411b]

I'm a one man shop with a tormach 770m out of my single car garage in a triplex making close to $70k gross from one customer in the past 10 months and doing it full time in SoCal. It's not much money but I enjoy the additional time I get with my kids. BTW, I bought my mill outright so not having a machine payment is very nice.

[@alexeymironov1544]

Great video with great guys! Full of useful info I wish I knew before I was starting out on my own, back in 2018. Great tip about the machine Insurance. We have it here and we used it before. Spindle seized out of nowhere on a machine with only 26k hours. Insurance company covered a new spindle we quoted from OEM, minus a 10% deductible. So yeah, well worth it to have it! Also, for anyone thinking about starting out on their own, whatever amount of $ you estimated you will need to get started, multiply it by 3 and you will be close to what it will cost you. Believe me, there is always that one more thing that you will need to buy that you never thought you need, until you need it. Machine shop business is an investment intensive business.

[@LoneWolfPrecisionLLC]

Definitely start used if you dont have customers but do due diligence and see the machine in person. Bought a used machine that the tech did not inspect well and the photos hid way cover damage. Made it work for a year then got a repeat production contract and bought a brother. On the up hill now to pay it all off but the first few months sucked

[@markdion9932]

love the show. look at the John Grimsmo and John Saunders.

[@wheelieking71]

At 7:28 in the vid: I could not agree with Ian more! With the largest ever shop thread on PM I feel pretty qualified to make this comment. "What if you don't want to grow?" Excactly! I can't count how many people have scolded me for my decisions stunting my business growth. And no matter what I said or told them, I could not make them understand, I was already bigger than I ever wanted to be. Great point Ian!

[@patrickmcclintock7027]

Hey Bill. Man I haven’t seen you around in a long time. Thanks for watching and thanks for the comment. It was definitely an enlightening talk!

[@wheelieking71]

@@patrickmcclintock7027 I'm still here doing the same thing. Just kinda slacked off the social media stuff. Especially "the thread". I figued it had run its course and I accomplished exactly what I set out to do with it. Which was document a small shop start-up. And share everything. Good, bad, ugly. FWIW, I started my shop with $25k that I borrowed from my MIL, Put $20 down on a $50k haas VF2ss, and rented Featurecam from Delcam. The rest is history (as fully documented in "the thread, LOL) As you guys point out, you dont need $100k to start!

[@edwalker7400]

I like the Bootstrap approach, Used machines for cash pay as you go, hard to beat.

[@arinchang6579]

Great video....thanks for putting this on. Good honest talk about the machine shop business. Starting any business is HARD.....one with machinery is even HARDER. Think of it in levels/stages where each step is a increment of overhead (startup, machinery, employees, building)...your sales > each stage of over head per year+your salary>what you could make at a 9-5.

[@iansandusky417]

This is the way!

[@TrPrecisionMachining]

good video Ian

[@chadmaurer4002]

Great episode guys! It's cool to hear the perspective of other shop owners that are going through the same stuff. Keep it up!

[@YCM30cnc]

And for what it's worth; some guy saw me ogling a TM1P at IMTS 2018 and said 'Just buy one, you won't regret it. I started with a used TM2P making Ducati bling, and I'm here now to buy two Robodrills to keep up.' He was right, and I'd love to buy him a beer if I knew who he was LOL. Hope to see some of you guys at IMTS 2024

[@StuartWoods-sj9qz]

Ian is a ture gentleman and plays down his abilities. Great guy to work for and with ! Great podcast guys keep it up

[@patrickmcclintock7027]

Agreed. I’ve always found people who brag about their skills fall short. The ones that are humble are typically the best.

[@gibbonsgarage2582]

The 30-40 percent markup from msc for afi products I saw first hand in the south east. Always go through tooling reps

[@TUKByV]

Interesting.

[@cast6736]

What website is for the auction on the cnc?

[@shaneprice2102]

Hey Brad, I am a small start up in my garage. Where did you get the grey tool bins at that are sitting on the black tool box behind you on the Podcast? I would like to get a few of those to sit on a desk along side my new Minimill that’s getting shipped. Thanks.

[@Dellpodder]

Those look like drill dispensers. Huot makes them in America, but there's plenty of knockoffs out there.

[@patrickmcclintock7027]

Huot drill indexes! They’re not cheap but super handy for organizing.

[@noahdboss1195]

What auction site do you guys use?

[@aeroearth]

Missing a "0" from the $$$ to start a machine shop. Can start with $0 of course, like I did.

[@Travis_Barrett_MFG]

Has anyone used the Techniks milling chucks looking for an opinion on them.

[@kitchensdragons]

10 out of 10 would wear hat backwards and work at a machine shop! 👍

[@Jfromtech]

Most shops are 100k anymore let alone the tools and machines

[@waller393]

shit i need like 5mil lol

[@iansandusky417]

Same dude lmao

[@trace12345678900]

lol I’m not even a year in and I’ve spent over 500k. I’m getting close to having everything I need but it will take more than you think and plan for.

[@MarvelMachining]

@@trace12345678900 I don't have $500k in my shop. My 4 machines combined I paid $104k for, I don't think I could add up another $400k in misc equipment, even adding my building cost I don't think I would hit $500k

[@trace12345678900]

@@MarvelMachining oh I’m not saying you’re wrong I was just adding another view point. I wasn’t including my building - that was another 250k. I bought a 3 year old 5 axis mill and a brand new dual spindle Y axis lathe. I also have (2) 3/4 axis mills and a waterjet. Along with other misc stuff. Gets pricey quick

[@mikeskupniewitz8057]

interesting video.... but why are 75% of the ones talking unable were a baseball cap correctly???... enjoy the channel still...

[@iansandusky417]

My heads on backwards

[@MarvelMachining]

My hat didn’t come with instructions

[@approachingtarget.4503]

Isn't 100k the cost of one machine? Not including the brick and mortar building cost. The cheapest machine shop here (5 in all) is a million dollars per year. The good shops are 5 million in business expenses.

[@MarvelMachining]

There are plenty of machines under $100k, my 4 machines, combined costs was $104k

[@approachingtarget.4503]

@@MarvelMachining whats you production load?