You Don't Need to Break the Bank to Start a Machine Shop!

Kurtis and Rebecca from ‪@MilSpecManufacturing‬ share their unique experiences on how they started their machine shop with a budget of under $40,000.
From sourcing affordable equipment and essential tools to optimizing workspace efficiency, Kurtis and Rebecca share their tips and cost-effective strategies to help aspiring shop owners kickstart their machining venture without breaking the bank.
Whether you're a seasoned machinist or a newcomer to the industry, this video might provide you some new insights!
What other recommendations would you give to somebody starting their own shop?
What topics would you like to see in their future episodes? Drop the comments below and let us know!
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[@Vankel83]

I started my shop 2005 with 45K and financed a new cnc mill for 48 months. I had plenty of work for it. Within 8 months I was adding another cnc, a lathe this time. I was lucky that when I got into business, I had work from my company I left. All I had to do was bid, win and deliver. First two years wear tough, 55-60 a week. Now going 19 years and 4 cnc mills & 2 cnc lathes. I don't think I could ever work for someone else.

[@MilSpecManufacturing]

That's awesome! Definitely nice to have work available from the beginning!

[@richhuntsd12]

Nice video. Congratulations on your new shop. I hope it all goes really well for you guys. Just a word of advise. “Don’t get to High or to Low “ emotionally. Keep practicing and find the work that fit’s your shop and that You guys are passionate about!😊

[@MilSpecManufacturing]

Great Advice, thanks!

[@Houcnc]

@@MilSpecManufacturingand work sometimes stops for weeks keep bussy stay in the shop clean practice keep the momentum going even if there’s no work

[@richmcdevitt9236]

With more than 50 years in the shop. I would recommend to you to always replace fuses in used machinery as it comes into your shop. There has been many a time the ‘removal crew’ has blown them as they began working before cutting power to the machines.

[@MilSpecManufacturing]

Great Advice! Thank you!

[@nushratgt5879]

shoutout to rebecca for being an amazing mentor to me♥️

[@user-ei9fv7iu6y]

Thank You for the in depth explanation of your start up choices and costs. I love working with the Haas machines, I have worked with many. Good luck with your business,

[@randomrouting]

Well done and thanks for sharing!

[@dirtboy896]

Much love to mil-spec manufacturing from 2SM performance

[@MilSpecManufacturing]

Thanks, Jon!!

[@user-tu5bj8mc1t]

Good info. I like how you broke down each cost and how you tackled each step.

[@MilSpecManufacturing]

Thanks you!

[@davidmiller5658]

Great info. Thank you for sharing and for your efforts to help others as they start their shops!

[@Freetheworldnow]

WWG1WGA ❤

[@MilSpecManufacturing]

Thank you for watching!

[@mannycalavera121]

Thanks for the shop tour and all the best for your future.

[@MilSpecManufacturing]

Thank you!

[@pioneermouldings4768]

Nice video and thanks for sharing, I wish you all the best. You’ve been stung in the early stages with service and commissioning charges. TBH I didnt expect just one machine from the thumbnail setup cost.

[@MilSpecManufacturing]

Thanks @pioneermouldings4768. It certainly was a learning experience. Hopefully, we can save someone from a future headache.

[@velaworks]

Great information. Keep up the great content!

[@MilSpecManufacturing]

Thank you for watching!

[@Jeff_369]

Great video!

[@skinnynhealthychannel]

one thing that hits every business owner: not everything goes smoothly every single time, there is always something. I would 100% open my own business and grow it, if I knew I would live at least 200 years but the reality is only 70 at best maybe 80, and near the end of those years only pain and sorrow. LET'S ME SEEK SOMETHING THAT WILL LAST FOREVER AND IT'S NOT IN THIS DECAYING WORLD.

[@TBJK07Jeep]

Congratulations. Friend of mine picked up an 08 VF3 with probing for 10k. He has about 20K total with rigging, transportation & electrical work. His allegedly had an issue with the high gear, which I found to be just a setting.

[@MilSpecManufacturing]

That's awesome! They are off to a great start!

[@shaneprice2102]

My wife and I are just scratching the surface on how to go about starting a small shop in our 2 car garage in San Diego. Any advice you could give us about the zoning to run a legit business out of the house? And what would be a good air compressor for a couple machines that wouldn’t make too much noise. Thanks for the video. My wife is a veteran and when she came across your video we both watched together and took notes. Good idea on the phase converter. People I spoke with said you can’t get 3 phase to our house. Be looking into that now.

[@Oneklickmedia]

I started working for a company few months now and want to do side gigs in my garage when I’m off the 3 days 😂😂. Plus it’s always cool to have a CNC Machine at home while the other fellas have their Milwaukee tool box 😂

[@TonyCollinsTech]

Love your story, but how do you go about getting those remote contracts to do cad/cam programming? I never see anyone talking about hot to find work like this.

[@tannerbean3801]

Cool to see you could get up and running in weeks, with only $40k invested. I'm not an experienced machinist so I've gone the low and slow route over the last few years. I'm into a late 90's VMC with 4th axis rotary table and 5 axis trunnion & controller, an old Mori SL1A lathe, with 20hp RPC and screw compressor for about $12k (collecting those bargains on bastardized equipment over years instead of raking in the dough making chips). While your shop could have been done cheaper by doing your own electrical and machine repair (or by negotiating a broken machine price with the seller), $40k is not bad to get up and running so quickly. You can quickly make up those tens of thousands by making chips... For those reading, to whom a $40k investment is yet out of reach, I'd recommend getting familiar with electronics & electrical power/wiring. You can save big if you do that work yourself (properly and safely) in the beginning and throughout your first years as you build your shop & your business.

[@frankgrabasse4642]

I would recommend a different trade that can't be sent to mexico.

[@cm9779]

Good job. Wish you much good luck and success.

[@MilSpecManufacturing]

Thank you very much!

[@kayladebroisse3869]

What kind of zoning do you need for a small machine shop?

[@laprepper]

I’ve been thinking about buying a water jet for $45K but that’s a lot of money on the hopes of getting work! I kinda have a guy who might let me use his space but the machine needs a lot of power, air, water, it’s kind of a beast but they are sooo useful!

[@MilSpecManufacturing]

Yes they are! But If I can recommend anything, don’t rent from a friend. It never goes as planned.

[@garyeuscher4499]

Water jets require a lot and I mean a lot of maintenance. Stay away!!

[@tmw4138]

So- how did you acquire programming work into the beginning? I ask this because I've been deeply considering remote programming for companies, but I'm completely lost as to how to start to acquire work. This is a great video, the details youve provided are extremely helpful. Very well done.

[@MilSpecManufacturing]

Great question! In short, you need a great website, to advertise and build a network. ( Linkedin, Vendors, coworkers, etc.) Check out last Becca’s episode: “6 steps to kickstart your machine shop!” It applies to both a remote company and brick-and-mortars.

[@tmw4138]

Oh, heck yes! I'll check out all your videos. I'm new to your KZbin page, so I'm excited to dive in. Thank you for sharing a truly "down to earth" perspective on such a complex trade and business workings. Best wishes to you guys, I hope you crush the game!

[@matterofrights2344]

Here's hoping that is not a standard 4" concrete slab in that garage. If so, relocate quickly to a place with, at the very least, a 6" slab to place that machine on. Not trying to be a naysayer, just trying to keep you from going bankrupt from wasting material when the machine won't say leveled.

[@brianwaayenberg3099]

That’s really going to matter on the ground under the concrete. I run a vf2 in a thin pad. But it has a fantastic base under the concrete

[@MilSpecManufacturing]

Glad you mentioned that- alot of people forget to consider that. Especially the risk of having a rigging company coming in with heavy equipment to unload your machines. The concrete here is 10”

[@garyeuscher4499]

Machines should be checked for level every month. If you have to re level it, no big deal

[@matterofrights2344]

@@garyeuscher4499 Maintenance is not leveling, and if you are leveling a CNC once a month, something is seriously wrong.

[@leoarlinghaus]

This was an awesome vid! Id like to know how you found the programming work and what that profited over the first few months! Did you also quit your day job while doing all this?

[@MilSpecManufacturing]

Thank you! The key to getting work is having a killer website and SEO so Google can find and recommend you. There was a similar comment above and I suggested checking out Becca’s last episode called “6 steps to start your machine shop.” It’s a good basis on what to focus on to get customers in the beginning. On our busiest days, we would average $800/day. We kept working full-time until we have enough money saved to fully fund the next phase of getting a brick and mortar. Good thing too, there are always surprise expenses.

[@leoarlinghaus]

Awesome! I really appreciate the reply! I assume you guys had previous experience programming with fusion 360? Did you focus on milling programs in the beginning or all machines including lathes ect? I like the low over head approach you guys took. Many people like to just get a large loan which is risky!

[@MilSpecManufacturing]

@@leoarlinghaus We had been using Fusion360 for years before starting our company and took on jobs for any machine type. I agree with you. While cash flowing is slower, it builds a stable foundation to grow upon.

[@thirstybike]

Awesome video

[@MilSpecManufacturing]

Thanks, Will!

[@465maltbie]

Were you able to start this in your house? A lot of places wont issue a business license if you are working out of your home or garage.

[@MilSpecManufacturing]

Yes, we started our remote programming company out of our home. Then rented a brick and mortar once we were able to jump to the production side of manufacturing. The majority of machine shops we know do start in their own garages to keep overhead low until they can rent elsewhere. Thankfully, haven’t heard of them experiencing any issues with their BL, etc.

[@brianschultz5541]

I have been thinking of putting some machines in my barn to get started. How big of a breaker is required for your rotary phase converter?

[@MilSpecManufacturing]

I would need to double check on that. I do remember we had to upgrade from the original one. Every size RPC has different requirements, and they are usually listed online.

[@brianschultz5541]

@MilSpecManufacturing just curious what you are running

[@MilSpecManufacturing]

We use a 100A breaker to power the RPC and 20HP Haas VF4APC. Though the machine itself can only draw 40A Max. The RPC needs the large amperage just to kick over to convert power. After that, I barely noticed the power draw.@@brianschultz5541

[@allenklingsporn6993]

You'll need to know the full load of each machine you plan to use, in order to size your RPC and breaker(s). There is no one-size-fits-all approach here. For a 40hp RPC, the single phase breaker would need to be around 100a, preferably with a decent time delay for starting the idler. After you get all of your machinery hooked up to it though, you should actually take a full load measurement and then you could resize.

[@brianwaayenberg3099]

Strange the digital phase converter was a problem. I run my 08 vf2 on a phase perfect for many years now without issue. (Unless the clueless electrician used a vfd instead of a real digital converter. That would be a problem!)

[@MilSpecManufacturing]

I think the electrician was the biggest issue. We were lucky to come out with just blown fuses.

[@sandramills1133]

Hi. I'm sandy. So I thought I would watch your youtube. Very good job. In the beginning you said to keep overhead down. My son has a CAD CNC Machining business with 7 machines. He is in a City below LA California and he told me he spends 14,000 a month for overhead. What are you finding that you are spending per month for your overhead. Just curious.

[@sandramills1133]

Also I think he leases several machines from a friend

[@MilSpecManufacturing]

Hey Sandy, thanks for watching! Our overhead is less than $1,500 a month. We took the longer, but safe route in starting our company. It’s really helped keep our company well insulated from the woes of the economy.

[@jimb5051]

I need someone to operate my CNC shop.

[@travisspeedee]

I think you have rent on your house Or mortgage to pay I think that's overhead for a month...

[@featherrakka]

I appreciate the info, but you left out the one thing I really wanted to know. The cost of the place you are putting that fancy machine...

[@MilSpecManufacturing]

Yes, we intentionally left out that information at the request of our landlord who is a family friend.

[@WesleyHarcourtSTEAMandMORE]

Sounds like yhe transport invoice could be taken to small claims court

[@billdivine9501]

I’m closing my shop of 30+ years. If anyone wants manual lathes,Bridgeports , grinders, you let me know. All the taxes, licenses, permits, fees, etc. etc. etc. I’m so done with this.

[@Poncho-dd2pl]

I’m interested!

[@sanddeeppannu]

I am interested.

[@Oneklickmedia]

I’m new and noticed the old guys are retiring so 30yrs is a lot of time! Congratulations on the move

[@billdivine9501]

@@Oneklickmedia thank you! I really appreciate it. Everyone around me says the same thing, “ you can’t retire! What will you do???”Well, why the hell not? Plus, I’m going to do something different, not just sit on my ass! New career, volunteer, whatever, but running that old shop brought me down, made me sick, so much more pain than I can describe. I want to write a book about it warning others of staying in the “family business.”

[@Poncho-dd2pl]

the algorithm is telling me to start a shop

[@MilSpecManufacturing]

I like this algorithm!

[@paritoshmishra2532]

Haas vf4 10000/- how it's possible.

[@AlChemicalLife]

Because it's used

[@frankgrabasse4642]

Most shops fail. The big shops buy material in volume and get far better pricing. Same with supplies, lot charges on material, heat treating, etc. Manufacturing is a race to the bottom. Spend more to make less, and now with automation taking over the big shops will kill you on pricing. Then the simple fact that customers don't pay you until they feel like it. Plus taxes, rent, insurance, material, power have all gone way up in price. Find another trade. One that can't be sent to Mexico. And one that doesnt have a competing shop located behind every rock. Most communities are overloaded with Machining capacity. Never mind if you don't know someone you won't get any work.

[@thinker4life482]

MSI CPU.... MADE IN CHINA!!!! Get a Dell!!

[@JainoCMathew]

inspired 🫶