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Step 1
Find and procure the property. Because you are manufacturing items, you will most likely have to find a property that is zoned commercial intensive. Using a business plan will make it easier to procure financing for the property.
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Step 2
Procure all state, county and city licenses and permits. Each state, county and city has different permits, but you will need to register your business with the state, get a federal employment identification number (FEIN) and a state sales tax number.
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Step 3
Purchase or lease the machinery needed to open the shop. You will need such things as head borers, cnc fixtures, cnc tooling packages and collets. You will also need drill chucks and adapters, fly cutters, indexers, dividing heads and spacers, lathe and mill chucks, lathe tools, machinery pads and mounts. There are many more pieces of equipment and tools that are needed just to open the shop.
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Step 4
Set up the office – you will need invoicing and billing software, accounting software (or hire an accountant), a list of vendors for various parts and metals and a list of businesses who might use your services. Hire employees who have experience working in a machine shop.
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Step 5
Purchase inventory – you will need to keep some parts, such as valve seals, keepers, spark plugs, racing pistons and other popular items in stock.
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Step 6
Advertise your services with local businesses and individuals that may use them. Do not forget about the local racers.
