Whilst you don’t often hear of new companies in the metal fabrication world – it can be a wise decision if the knowledge is there. Entrepreneurs often shy away from this industry as it relies so much on prior knowledge in order to be a profitable venture. This is why if you’re considering starting a metal fabrication company, you should make sure that either you or a business partner has more than sufficient knowledge on things like the various metal fabrication methods and sheet metal machinery. Today, we will be exploring some fundamental steps and things to think about when building a metal fabrication business from the ground up.
Establishing a plan
A physical plan or strategy is essential. A business plan will help you stay on track in the early stages. It is also great at amalgamating things like budgets and market research into one file. If you’re looking at gaining outside financial aid, then a business plan will most likely be required as they will help convince your potential financer why your company is worth investing in. Your plan should be concise and to the point. You must be able to find a way to include all the essential facts, figures and information in the plan without making it too wordy or dense.
Funding your company
If you’re not funding your new business yourself, then you will need to source the funds from elsewhere. There are a variety of different loaning solutions that you can consider – whether they be from big banks or smaller firms that specialise in self-owned business loans. It’s important to note, though, that no matter what option you go with, you’ll need a business plan to back-up your claims and convince them.
Picking a path
This is something that you will need to establish when you write up your business plan. Within the metal fabrication world, there are a few different paths that you can go down. You may choose to be a company that specialises in one particular type of metal fabrication method or one that can deal with a broad range of them. Be sure to pick one and stick with it. If you pick a single method – then you can always expand further down the track with other types as your business grows.
Knowing what type of metal fabrication your company will be performing is essential to this point as you’re going to want to only purchase the appropriate sheet metal machinery. Safety equipment such as gloves and helmets are vital – regardless of what type of fabrication you will be doing.
The list of machinery needed will begin to grow as the more types of fabrication techniques that your company decides to employ grows. Regardless of if you’re concentrating on one method or multiple – be sure to only spend on what you know you’ll need to use immediately.
Things like slitter folders or plasma cutters are great tools for new workshops. Don’t waste your money on specialised equipment that you’ll rarely use. Sheet metal machinery and tools such as these are unlikely to be a good investment as they will only apply to a few niche jobs.
Ensure that the business side of things is in order
It’s one thing to have all the knowledge of the industry and purchase the appropriate tools and sheet metal machinery – but you’ll also need to set-up your business and licence it officially so you can be recognised as an official business. This involves registering your business name with the Australian Securities & Investment Commission (ASIC) as well as ensuring all your finances and taxes are in order. The fees for registering a business name in Australia are $36 for a year and $85 for three. Please note that you are only required to register a business name if you’re running a business under a name that is something other than your own.
Do you need sheet metal machinery for your business?
Whether you’re upgrading your equipment or purchasing some for your new business – ACRA Machinery is here for all your sheet metal machinery needs. We specialise in a wide range of sheet metal machinery both new and used, including slitter folders, turret punches, press brakes