What does a $10 Million job shop look like? What departments, people? - Page 4
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  1. #61
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    10Mil gross/ year?
    He'd be better off buying 200 Hot Dog carts.....

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  3. #62
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    Quote Originally Posted by Mcgyver View Post
    Profit = Revenue - Expenses. Equity = Assets - Liabilities
    Ok I screwed that up... lol... which leads me to my next point applicable to growing a company...

    I was going through college and I decided walking out of exam week I had enough. Just picked off the lowly A.A. and A.S. degrees... I told the folks I usually studied with that I had enough of this dumb shit and if I needed any higher degree I'd just buy it if I need it sometime in life. The four other folks in my group were mistified how I can just buy my 4 year degree. I told them I'll just hire one of you. Fast forward... well.. thats how it goes.

    Don't confuse that with assuming I think I'm better than other people. I'm not. Others are better at other things while I'm better at other things. Exploit your strengths no matter who you are.

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  5. #63
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    What does a $10 Million job shop look like?

    Maybe like this after bankruptcy?

    bankruptcy.jpg

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  7. #64
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    There is no real answer to your question as several people have pointed out, with out a lot more information.
    From your layout of personell it looks like you have around 11 people who don't touch or bring in work. I think this is way too much to cash flow from 10m maybe 50-100m might justify that level.
    Assuming 2 machines per operator you will have 16 machines running 24 hrs a day there is no way 1 maintenance guy and 1 repair guy is going to keep up.
    Who is building fixtures?
    Who is handling tooling inventory and replacement?
    Who is handling employment, saftey compliance, insurance etc.?

    I owned a pretty lean shop, with quite a bit more in sales than you are talking about but our usual parts ran 20-50k in machine work and 5-30k in material. There is no way we could have supported that kind of labor overhead with that few of machinist.

    QA and shipping will totally depend on if you are doing military work and dealing with material certs, inspections, scrap control, long term storage packaging etc. You might need double the people and a few more titles.

    If you are rebuilding mining parts you might not need but someone to check parts and run a forklift.

    Good luck

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  9. #65
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    A $10 million gross is easily attainable in today's prices for material and outside process.

    What is most important is how much of that 10 you keep.

    I'm sure that some production shops can easily surpass this level, but it is unlikely that they can surpass the profits that tool companies generate with a fraction of their overhead.

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