Investor Financing vs Bank Financing - Page 2
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  1. #21
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    ^^^
    The comment was after reading and discussing on here (years ago) regarding small business/buildings - so around 10k square feet and less.
    It was regarding the effort involved and also cost, of moving premises (organising/electrics/airlines/heating/network/shifting machines/make good previous facility/machine downtime etc) is not cheap corn.
    If you're 5k sqft now, and lifted and shifted to 6kft, the (moving) cost and effort is pretty much the same as if you went to a 10k.
    So moving once costs less than moving 2 or 3 times was the nub, providing you can afford it of course.
    So the figures need to be sound and you probably need to be at nearly max capacity etc to make it economically viable.

    Regarding gentle expansion, nothing wrong with that again if the figures add up.
    If you're lucky and in a row of business units, and next door becomes vacant, just punch a hole in the wall and away you go. This worked well for me but my place was 850sq feet, so doubling only went to 1700 (11 CNCs in there though).

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  3. #22
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    Ok....so not as much expanding capacity as growing floor space.

    That completely makes sense....hell, most of us could probably double in size just by moving a couple holes on the belt!!!




    Sent from my iPhone using Tapatalk

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  5. #23
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    Quote Originally Posted by barbter View Post
    Regarding gentle expansion, nothing wrong with that again if the figures add up.
    If you're lucky and in a row of business units, and next door becomes vacant, just punch a hole in the wall and away you go. This worked well for me but my place was 850sq feet, so doubling only went to 1700 (11 CNCs in there though).
    I have about 2400 sq ft in my shop with 3 cnc machines. How did you fit 11 cnc's in there?

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    Venture capitalists are nice when you are selling your business to retire, and have done your homework to know how to make your company attractive.

    Beyond that, I can’t think of many times that I’d find them useful.

    And I can’t think of a circumstance where I’ve seen someone take money from an investor and leave the situation happy about it...even with growth. Once you lose control, you’ve lost control.




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  7. #25
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    Quote Originally Posted by converterking View Post
    I have about 2400 sq ft in my shop with 3 cnc machines. How did you fit 11 cnc's in there?
    Using AutoCAD and a tape measure
    Here's one side with 6 in.
    Stood on a CNC lathe, with another in front of it, 2x Robodrills and the Feeler (same size as Robodrill) to the right.
    The 2 Robodrills were replaced with 2x more Feelers.
    Bottom left is a Chevalier #40 machine (X660 travel).
    Other unit had 3x Chevalier in a row side by side (X850mm)
    1x Prototrak (Bridgeport R8 clone) and 1x Prototrak Lathe (2" bore)
    Assy next door and mezz floor with office and CMM/Inspection on top.
    Attached Thumbnails Attached Thumbnails capture.jpg  

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  9. #26
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    Now there is a guying renting by the square ft and using it by the cubic ft!

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  11. #27
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    Quote Originally Posted by garyhlucas View Post
    Now there is a guying renting by the square ft and using it by the cubic ft!
    If (2) people are in the shop at the same time and one farts, the winders blow out....

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  13. #28
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    Quote Originally Posted by garyhlucas View Post
    Now there is a guying renting by the square ft and using it by the cubic ft!
    Yes!
    We did have restricted room for growth as we were an end building in a row. So we could only ever expand one way which we did when the neighbour moved out.
    Having come from a big factory with huge wasted space and constantly insolvent because of the rent and business rates that had to be "found" every month on the first of the month before you've even made a washer, when doing it for myself, I was very cautious.
    Probably too cautious, but maximizing floor area (and walls!) was the best solution. And so easy to keep multiple machines running on your own.
    It was easier to sleep at night with low overhead. I'm not a business man as debt doesn't sit easy with me. I'm an engineer.

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