Having more customers knocking on your door than you can handle may seem like a good problem to have—but another shop will get the business you can’t accommodate. These three tips for expanding your machining business could help you capture those new clients before someone else does.
Consider Your Cashflow
Even if your shop is going gangbusters, you must be careful with your business finances. Build a reserve fund in case of a downturn, and make sure you are easily able to service your debt.
Talk to your accountant or a trusted mentor in the metalworking industry to get an unbiased opinion about whether now is a good time to expand or if it would be better to wait before you take on the expense of expansion. Even with a lot of work coming in the door, you could still find yourself in a bind if a machine breaks down, an experienced employee quits, or a family emergency occurs.
Lean In to Your Niche
While you may not regard your shop as a specialized operation, your clients may see it that way. Do you notice you get one type of work more often than another? Build on your niche, whether it’s repair, replacement parts, or specialty metal cutting.
Follow the 80-20 Rule
A time-tested way to lean into your niche is to follow the 80-20 rule. The 80-20- rule means that 20 percent of the inputs account for 80 percent of the outputs. Analyze your business to identify where most of your revenue comes from and where you are putting in a lot of costly effort for too little reward. Concentrate on those areas that provide the most return for the least input.
Take It Slowly
An important tip for expanding your machining business is to take it slowly. Don’t try to scale up all at once. A slow and steady approach is better in the long run. Every new piece of equipment means a new maintenance schedule, new training, and possibly adding staff.
The 80-20 principle can guide your decisions for acquiring new equipment. For example, a new plasma cutting machine can be cost-efficient and save time. But adding one may mean adding new ventilation systems, and plasma cutters don’t work well on very thick or very thin materials. And if most of your revenue comes from bending metal, a new cutting machine might not be the right direction to take.
Keep Current With Upgrades
Technological improvements naturally accelerate. Make sure you stay current with software upgrades for your CNC machines. These can speed production, add capability, and save money when properly applied. If you fall behind on easily installed upgrades, your competitors can take advantage.
Use Digital Marketing and Video To Promote Your Business
Take a critical look at your website and social media accounts. If you don’t have them, set them up, and commit to updating them regularly.
Video has become essential to capture the attention of website visitors and social media followers. Include videos that show your (clean, uncluttered!) shop in action, providing prospective customers an opportunity to see what you have to offer.
