# CNC Routing Business challenges....



## woodwurker (Oct 18, 2009)

Hi All,

I am inquiring as to the interest of having a thread that incorporates the CNC machine itself with creating your own small business or side work and the struggles that everyone has faced. 

I am can stay plenty busy with the machine as I htink there is a pretty good call for that type of work around here with the many contacts that I have. I do not want to build my own as I just do not have the time to sit back, design and work out all the kinks of the machine. I am looking for more of a turnkey system that I can get in start and go.....I know there will be the learning curve and I know that we all learn from the very beginning of a vision. 

I think that the initial mmoney that will be spent on the machine and software can be recooped failry quickly.....I think that in the time of waiting on completing the a DIY kit...I could have already created the income that I would have saved by doing it myself.....I think....hmmm.

So in sayin all of that....anyone have any guidance, suggestions or situations where they might have things differently?

Thanks for the thoughts,

Mike


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## woodwurker (Oct 18, 2009)

I think alot of my time will be spent talking to people upfront to identify the what types of things people in this area would enjoy getting or needing. I like to think that I pretty wise when making descisions about things...and some would call me sort of anal.....why becasue I will sit and do the what if scenarios over and over....install a teeter tawter on the kitchen table and weigh out the pros and cons....I guess I am just looking for those people who have had their own small business in their own little part of the world and see what sort of issues they have run into. I want to keep this a hobby by I also want my hobby to pay for itself and also make a little on the side...does that constitute a business?...hahaha I hope not...becasue like so many of us..we dont want our hobby turning into a job unless we invisioned it that way from the start....well...I will sit back a wait for the people wiser than I to give me their supreme guidance and hopefully when the time comes that I have to make "that" business descision.....I will have had someone who has been there doen that and gotten the tshirt....who said "hmmmm...maybe you might do it this way insstead of that way".
Thanks agian for any input at all.
Mike


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## woodwurker (Oct 18, 2009)

wow...I would have thought I would have gotten o ton o of responses on this one...patiently waiting...grin


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## springwoodindustries (Oct 25, 2009)

Hi Mike,
I have CNC capacity in my shop, both wood and metal, and I find that most people have no idea what it takes to get an idea to the part. They want the part now for nothing. I would encourage you to look for a project or part that you want to build in small quantity and make a business of it. It may be something like engraving nameplates for homes. Anything that you can replicate with minimal changes that you control. You need to have some limits on the changes or you will quickly be out of business.

There are several good CNC routers out there. In most any size you want. I would suggest looking at something that runs Mach software so you can use their Wizards. Cut2D does a good job of getting the drawing to the code for fairly simple stuff.

Good luck,
Tom


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## Wild Horse (Sep 9, 2009)

I agree with Tom, as that's pretty much one of the principles of a small business...with a caveat, don't lock yourself into having all your eggs in one basket. Small businesses specializing in one particular thing seem to do well...until the market changes. It doesn't matter the reason the market changes, it only matters that it affects your production/bottom line. Prime example would be the auto industry affiliates. I have a friend that works for a rubber company that makes specific hoses for specific models of autos....great money for years, but now ???? Adaptability is the key...and the willingness to do so. So taking Tom's great example of finding a project/part and focusing on it is a great idea, but I suggest taking it to the next level after that. Nail that project down pat, then don't be stagnant...keep looking/experimenting into other projects, sort of on a prototype scale.

When I got into business, I focused on home entertainment centers, bookcases and curio style cabinets. A percentage of every job I did went back into the business as strictly investment...pretty much into tools needed to do other custom work that I was interested in. Eventually, my "anchor" of the entertainment centers, etc. gave way to my new anchor of kitchen and bath cabinetry. Often times, I find myself doing too many things on a renovation project...and after the sawdust settles, I find that a number of those things were not profitable. I guess that's ok, as long as I keep it to a minimum and don't take a slapdaddy loss on it.

I think with the cnc gig it's about the same.....initial investment of the machine/software/bits should cover what you are attempting to do for your project. Adding projects later, you need to take into consideration how large your investment will be into additional software/bits/etc...but most importantly, YOUR TIME !

Well, I guess that's enough of a rant this morning on the first cup of coffee, eh ? :blink:




springwoodindustries said:


> Hi Mike,
> I have CNC capacity in my shop, both wood and metal, and I find that most people have no idea what it takes to get an idea to the part. They want the part now for nothing. I would encourage you to look for a project or part that you want to build in small quantity and make a business of it. It may be something like engraving nameplates for homes. Anything that you can replicate with minimal changes that you control. You need to have some limits on the changes or you will quickly be out of business.
> 
> There are several good CNC routers out there. In most any size you want. I would suggest looking at something that runs Mach software so you can use their Wizards. Cut2D does a good job of getting the drawing to the code for fairly simple stuff.
> ...


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## dobrientruckers (Oct 31, 2009)

Adding one thing to Tom and WH's thoughts is to take a look at the competition and do what you can to make your offering unique enough to set you apart. 

The industry I'm in is very cut throat with unscrupulous companies constantly "knocking off" original ideas. Heaven forbid you hit a home run with a product because it will immediately start coming from China and be sold retail for what it cost you to make it.

Bottom line, a nitch market can be a double edged sword - you own the market share in the beginning but sucess breeds competition.

So yep, that's why I'm buying a CNC router - to make many new products faster than they can be knocked off and hopefully unique enough to make copying a little less easy.

Dennis


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## woodwurker (Oct 18, 2009)

I agree with all of you. I haver come to understand one thing around this area...the economy does in fact affect the purchase power of the one holding the purse strings....however just do to my recent trip this past weekend to a rather large craft show, I did not see one booth that had CNC releted material with the exception of a plasma cutter cnc machine that did strictly metal work. I walked out with the thoguht that I could go ahead and spend the 5K and hget the machine that I want and roll from there. I do not really have the meny in my pocket to spend...but I also realize that to go into a small business sometimes you have to spend money to make money. This is and will be a part time gig that will keep me home rather than go outside the home to do what I do for a living fulltime.....electronic security systemes and video systems....to much time away from home after hours and like all business everyone wants it all done for nothing. So with that being said, I am looking to spend the money up front and pour all of the profit back intot he machine to get it paid off as quickly as possible and from there start building up from there and hopefully the word of mouth clients will by then realize what capabilities I have to achinve what they want as an end product. I am looking at plaques, mantles, maybe some signage, but mostly to do what I enjoy and take seriously the quote by a friend of mine name Derrick Hayes - " Use your skills or someone else will" 

Am I going down the wrong road...or am I looking at things correctly?


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## Wild Horse (Sep 9, 2009)

Dead on Mike....dead on.


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## woodwurker (Oct 18, 2009)

How did you come out on the deer huntin trip? I would hope that you have some venison in your freezer by now.
Mike


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## springwoodindustries (Oct 25, 2009)

A CNC machine is a great thing to add to a shop. It allows you to do things you can't do any other way economically. Good luck in the move up.


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## Wild Horse (Sep 9, 2009)

Did very well Mike, thanks for asking. It was prime time for sure, and even tho' I got the smaller of the two bucks that were fighting in front of me it still made the book. I'm set for the winter now, with venison, buff, walleye and perch.


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## bagofdonuts88 (Nov 6, 2009)

One suggestion I would make to your venture, is to charge the right price accordingly to customer expectations. I have been in the router business for 20 years. I know what I can do on a machine and how quickly it can be done. The key is to pace output and price it accordingly to turn around time. If you are asked to turn a pc around $asap$ you need to price it that way. One you are getting paid for the pressures of getting it done and done correctly the first time. Also you will be able to manage your back log, and not become tied to your machine 24/7. One great book to read on the woodworking small business would the "The Business of Woodworking" by Bill Norlin. In his book he covers the business start to end, in a simple to understand way. Check out his section on estimating!

Good luck on your venture!!


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## rocket67 (Aug 30, 2009)

*Probably a good idea to start Part Time?*

We started using a CNC Router within our business about 2 years ago. It has been a very profitable experience for us.

Our business retails, manufacture and install built in robes with sliding door fronts. We were outsourcing our Router work, but found that the time it took to have the panels Routered and then delivered to us for painting/polishing prior to manufacture of the robe was costing us sales.

So we set up our own paint shop and bought our first CNC Router - An Excitech from China. This venture has been very successful and we recently purchased another 3 CNC Routers.

Two of these new Routers are for development work. A 4ft x 8ft machine and a small 2ft x 3ft4" machine. I am just about to crank up the small machine in my garage for the first time. My idea is exactly as you state - Find a product that i can sell at craft fairs or online. Recently while on holiday in Tasmania, my wife bought some CNC Routered cars with clocks in the middle of them. The kids really liked them. There are a multitude of things to make on your CNC.

No doubt your idea can work, as long as you find the right product. Hope it goes well for you. Here are some photos of our CNC Routers -


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## woodwurker (Oct 18, 2009)

I took your advice....the book on CD is on its way...shold be here tomorrow...thanks for the tip donut...much appreciated.


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