You’ve got the skills, the machines, and maybe a few jobs lined up. That's a great start!
But if you want to build a machine shop that runs smooth and pays the bills, it takes more than just a lathe and a good work ethic. You'll need a solid plan that helps you set prices, attract clients, and stay on top of the costs.
Wondering how to draft a plan?
No worries! This machine shop business plan sample is here just for your help!
Machine Shop Business Plan Sample
Let’s explore a sample business plan of ForgeAxis Precision and get useful information to create each section of your plan.
1. Executive Summary
ForgeAxis Precision is a machine shop in Dayton, Ohio. We focus on CNC (Computer Numerical Control) machining, metal fabrication, and custom parts—especially when accuracy really matters.
We mostly work with companies in aerospace, automotive, medical, and industrial manufacturing. Whether someone needs a one-off prototype or a short production run, we try to make the process easy and dependable.
Our shop runs on modern machines, but it's our hands-on team that really makes the difference. We're easy to work with, honest about timelines, and focused on getting the job done right — no delays, no surprises.
Vision Statement
Our vision is to become the Midwest’s most trusted name in precision machining by offering high-quality, fast-turnaround services with a customer-first mindset.
Market Opportunities
Across industries, the demand for precision components is growing—especially in sectors like aerospace and medical devices, where even the smallest detail matters. In Ohio and the surrounding region, many companies are looking for machine shops that can deliver custom solutions quickly and consistently. ForgeAxis is stepping in to meet that demand with a flexible, small-batch approach that larger shops often can’t provide.
Unique Selling Proposition (USP)
ForgeAxis Precision stands out by focusing on high-accuracy work, quick turnaround times, and great communication.
- We specialize in small-batch and prototype jobs that require tight tolerances.
- We work with tough materials like aluminum, stainless steel, and titanium.
- Our team keeps clients updated and involved from start to finish.
- Everything we do is built around precision, speed, and trust.
Marketing Plan
We’re using a simple, effective marketing strategy to reach the right customers and grow our presence:
- A professional, SEO-optimized website that brings in leads from Google.
- Listings on trusted platforms like ThomasNet and MFG.com.
- Targeted outreach on LinkedIn to engineers and purchasing teams.
- Referrals and partnerships with design firms and local fabricators.
Financial Outlook
Here’s an overview of ForgeAxis Precision’s expected performance over the first three years, showing our potential for growth and long-term profitability:
| Financial Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $450,000 | $875,000 | $1,400,000 |
| Gross Profit | $225,000 | $481,250 | $770,000 |
| Gross Margin | 50% | 55% | 55% |
| Net Profit (After Tax) | -$13,500 | $112,200 | $297,200 |
| Net Cash Flow | -$93,500 | -$222,800 | -$82,800 |
Funding Request
We’re seeking $425,000 in funding to:
- Add new CNC machines and quality control equipment.
- Upgrade software tools for design and inspection.
- Hire and train additional staff.
- Cover materials, certifications, and working capital.
- Grow our marketing and outreach efforts.
This funding will help ForgeAxis Precision become a trusted name in Ohio’s manufacturing network, delivering precision parts, great service, and long-term value.
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2. Business Overview
ForgeAxis Precision is a machine shop based in Dayton, Ohio, built to support industries that need parts made right—and consistently.
We specialize in CNC machining, metal fabrication, and custom prototyping, helping businesses turn ideas into real, working parts that meet tight specs and deadlines.
Whether it’s an aerospace part made from titanium, a custom tool for a factory line, or a small batch of components for a new medical device, we bring together skilled people, modern equipment, and a mindset that’s all about problem-solving.
We work closely with engineers, project managers, and product designers to understand exactly what they need—then we make it happen. Fast, accurate, and with no runaround.
Mission Statement
To deliver precise, reliable machining solutions with speed, quality, and real partnership—so our clients can keep moving forward.
Core Values
- Customer-focused – We listen and deliver exactly what our customers need.
- Precision you can count on – We take pride in getting every detail right.
- Honest and reliable – We do what we say, with no surprises.
- Always getting better – We keep learning and improving every day.
- Proud of our craft – We care about our work, and it shows in every part we make.
Business Model
ForgeAxis Precision runs as a service-based manufacturing business. Here's how we work:
- We take on small to mid-size jobs for companies that need high-precision parts made from a variety of materials.
- We help customers test and refine their designs with fast turnaround on one-off or low-volume builds.
- From machining to surface treatments and inspection, we offer an end-to-end solution under one roof.
- Whether it’s a single prototype or recurring orders, we offer transparent quotes that match the job size and complexity.
Future Goals
At ForgeAxis Precision, our future goals are:
- Bring in and train skilled machinists who care about the work as much as we do
- Use better tech to make our work faster, smoother, and more accurate
- Keep expanding at a steady pace without losing our quality or personal touch
3. Products and Services
At ForgeAxis Precision, we offer high-quality machining and fabrication services that are designed around each client’s specific needs.
While most of our work is custom and made-to-order, we also create some reusable tooling and small-batch parts for regular clients. Here's a closer look at what we offer:
Products
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Custom metal parts
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Tooling (jigs, fixtures)
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Replacement machine parts
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Fasteners and fittings
-
Metal signs or panels
Services
-
CNC machining (precision cutting)
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Milling and turning (shaping metal)
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Welding and fabrication (metal joining)
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Prototype development
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Part repair and refurbishing
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Drilling and tapping (holes, threads)
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Grinding and polishing (surface finish)
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Custom metalwork
4. Industry and Market Research
Industry Overview
The precision machining industry plays a key role in supporting advanced manufacturing in the U.S., especially in sectors like aerospace, automotive, and medical devices. As companies push for tighter tolerances, faster turnaround times, and higher quality, small- to mid-sized machine shops with advanced CNC capabilities are in demand.
In recent years, there’s been a growing shift toward local sourcing and smaller batch production. That opened the door for agile machine shops like ForgeAxis Precision to step in and offer customized, high-quality work.
The industry is steady and expected to grow slowly but consistently. The machine shop services market revenue is forecast to rise at a compound annual growth rate (CAGR) of 0.2%, reaching $43.8 billion by the end of 2025.
Target Market
ForgeAxis Precision focuses on clients who need tight tolerances, fast lead times, and flexible production. The main groups we serve include:
- Aerospace & defense contractors – Need complex parts made from tough materials, often with traceable quality.
- Automotive OEMs and suppliers – Look for reliable partners who can handle prototypes or small runs.
- Medical device companies – Require super accurate machining with clean finishes and documentation.
- Industrial equipment makers – Order custom tooling, fixtures, or replacement components.
- Engineering & R&D teams – Often need quick-turn prototypes to test designs and make improvements.
Here, we have placed a detailed customer profile to better understand who we serve and how we can better match our machining services to their needs.
Industry Trends
Here are a few trends shaping the future of this space:
- Increased demand for custom, low-volume parts, especially for prototyping and R&D.
- More advanced materials are being used (like titanium and composites), requiring specialized machining.
- Certifications matter more in industries like aerospace and defense, which look for ISO 9001 and AS9100 compliance.
- The integration of digital workflows, CAD/CAM software, CNC programming, and quality inspection tools are becoming standard.
5. Competitive Analysis
ForgeAxis Precision operates in a competitive space with several local and regional machine shops. Here’s a quick look at some of the main players:
| Competitor | Strengths | Weakness |
|---|---|---|
| Ohio Metal Technologies Inc. | Broad manufacturing capabilities, larger facility | Not focused on custom or low-volume projects |
| Machine Concepts Inc. | Strong in mechanical design and automation solutions | Doesn't specialize in CNC machining or short-run custom parts |
| Bowden Manufacturing | Defense industry experience, CNC capability | Niche focus limits broader appeal; may not be ideal for non-defense jobs |
| Advance CNC Machining | Large-scale capacity, handles high-volume jobs efficiently | Less flexibility for prototypes or small-batch orders |
| Millennium Machinery | Local presence in Dayton, traditional machining capabilities | Lacks modern CNC tech and specialization in complex materials |
Competitive Advantage
Here’s what sets us apart from other machine shops.
- We focus on small-batch and prototype work—projects that other shops might pass on.
- We help clients fine-tune their designs before production, making the process faster and more cost-effective.
- We invest in modern CNC machines and inspection tools for accuracy and speed.
- Clients deal directly with our technical team, not just account managers or sales reps.
- We’re based in Dayton and understand the needs of local industries.
6. Sales and Marketing Strategy
Marketing Plan
ForgeAxis Precision is focused on building solid relationships with the businesses we serve while making sure the right people know what we do. Our main marketing efforts will include:
- Website and SEO: We'll use our website to highlight our services and rank for industry keywords like “precision CNC machining Ohio.”
- Directories and expos: Listing on ThomasNet and MFG.com and attending regional manufacturing events to connect with buyers.
- LinkedIn and email outreach: We’ll reach out directly to engineers and purchasing managers with helpful content and service info.
- Referrals and partnerships: We’ll encourage word-of-mouth and partner with design and fabrication shops for shared projects.
- Showcasing work: We’ll publish success stories and certifications to build trust and credibility.
Sales Strategy
Our sales approach is built around listening first and offering solutions that fit what the customer needs. We focus on:
- Lead generation: Using our website, referrals, email campaigns, and events.
- Personalized support: We ask the right questions and recommend the best machining approach.
- Fast quotes: We provide quick quotes, so our clients get the information they need without delays and can move forward with confidence.
- Staying in touch: We follow up after orders to keep relationships strong and long-term.
Pricing Strategy
We keep our pricing transparent and fair. It’s based on the work involved and always reflects the quality and service we deliver.
- Project-based pricing: Quotes are based on materials, tolerances, and turnaround time.
- Discounted bundles: For ongoing or bulk orders.
- Prototype pricing: Special rates for one-off and short-run projects.
- Custom quotes: Flexible options based on customer needs and project details.
7. Management Team
The team behind ForgeAxis Precision is built to keep the shop running smoothly, meet tough client demands, and deliver high-quality, on-time results. Here’s a look at the key people leading the way:
Key Managers
Colten Merrick – CEO / Owner
Colten is the founder and CEO of ForgeAxis Precision. With a background in precision machining and a strong vision for the company, he leads the business strategy, builds client relationships, and makes sure the shop continues to grow and improve.
Aisha Novak – Chief Operating Officer (COO)
Aisha runs the daily shop operations. She’s in charge of production schedules, managing the team on the floor, and making sure every project stays on track. Aisha keeps things organized and efficient so customers can count on accurate results delivered on time.
Callie Trent – Administrative Assistant
Callie is the go-to person at the front office. She helps with scheduling, paperwork, and client communication. She keeps everything running behind the scenes.
Organization Chart
8. Operations Plan
At ForgeAxis Precision, our goal is to keep daily work running smoothly so we can deliver high-quality parts on time. We focus on staying organized, using the right tools, and working as a team to get the job done right.
Daily Activities
Every day, we check the schedule, start machines, set up new jobs, and inspect finished parts. We also take care of things like ordering materials, sending quotes, replying to emails, and keeping the shop clean and stocked. We stay in touch with customers throughout the process so they know how their project is going.
Facility Management
ForgeAxis Precision works out of a modern machine shop in Dayton, Ohio. The shop is clean, organized, and set up for smooth workflow—from getting raw materials in, to machining, inspecting parts, and shipping orders out. We take good care of our machines and tools, and we follow safety rules to keep the space safe for everyone.
Service Delivery
We make custom metal parts using CNC machines. Our jobs range from one-time prototype parts to small production runs. Customers share what they need, and we handle the rest—from design review to machining, checking quality, and getting the finished parts out the door. We also offer extra services like finishing, heat treatment, and inspection reports when needed.
Technology Integration
We use advanced CNC machines (3-, 4-, and 5-axis) along with design software to program and run jobs. We also use a system to keep track of quotes, job status, and customer info. In the future, we plan to add tools that show job progress in real time and help us run even more efficiently.
9. Financial Plan
The financial projections for ForgeAxis Precision give a clear picture of how the business expects to earn, spend, and grow over the next few years. These numbers are based on real market demand, thoughtful planning, and the goal of building a sustainable and profitable machine shop.
Profit and Loss Statement
The profit and loss statement shows what ForgeAxis Precision expects to make in revenue, what it will spend to operate, and how much profit (or loss) it will earn.
| Category | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $450,000 | $875,000 | $1,400,000 |
| - CNC Machining Services | $270,000 | $525,000 | $820,000 |
| - Metal Fabrication | $100,000 | $190,000 | $300,000 |
| - Prototyping & Custom Projects | $60,000 | $110,000 | $180,000 |
| - Tooling & Fixtures | $20,000 | $50,000 | $70,000 |
| Cost of Goods Sold (COGS) | $225,000 | $393,750 | $630,000 |
| Gross Profit | $225,000 | $481,250 | $770,000 |
| Gross Margin (%) | 50% | 55% | 55% |
| Operating Expenses | $210,000 | $315,000 | $375,000 |
| Depreciation & Amortization | $20,000 | $20,000 | $20,000 |
| Operating Profit (EBIT) | -$5,000 | $146,250 | $375,000 |
| Interest Expense (Loan) | $8,500 | $6,000 | $3,500 |
| Net Profit (Before Tax) | -$13,500 | $140,250 | $371,500 |
| Taxes (Estimated 20%) | $0 | $28,050 | $74,300 |
| Net Profit (After Tax) | -$13,500 | $112,200 | $297,200 |
Cash Flow Statement
The cash flow statement outlines how money flows in and out of the business.
| Category | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Cash Inflows | |||
| From Operations (Net Income) | -$13,500 | $112,200 | $297,200 |
| Depreciation (Non-cash) | $20,000 | $20,000 | $20,000 |
| Loan/Investor Funding | $425,000 | $0 | $0 |
| Total Cash Inflows | $451,500 | $132,200 | $317,200 |
| Cash Outflows | |||
| Equipment Purchase (CapEx) | $190,000 | $0 | $0 |
| Working Capital & Inventory | $70,000 | $15,000 | $15,000 |
| Salaries & Wages | $200,000 | $260,000 | $300,000 |
| Loan Repayments (Principal + Int) | $25,000 | $25,000 | $25,000 |
| Marketing, Cert., Admin. etc. | $40,000 | $55,000 | $60,000 |
| Total Cash Outflows | $525,000 | $355,000 | $400,000 |
| Net Cash Flow | -$93,500 | -$222,800 | -$82,800 |
| Opening Cash Balance | $0 | -$93,500 | -$316,300 |
| Closing Cash Balance | -$93,500 | -$316,300 | -$399,100 |
Balance Sheet
The balance sheet gives a snapshot of what the business owns, what it owes, and the owner’s equity.
| Category | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Assets | |||
| Cash & Cash Equivalents | $121,000 | $247,000 | $582,000 |
| Accounts Receivable | $25,000 | $45,000 | $70,000 |
| Inventory & Materials | $15,000 | $18,000 | $25,000 |
| Equipment (Net) | $300,000 | $365,000 | $230,000 |
| Total Assets | $461,000 | $575,000 | $907,000 |
| Liabilities | |||
| Accounts Payable | $15,000 | $18,000 | $22,000 |
| Accrued Expenses | $10,000 | $12,000 | $15,000 |
| Loan or Debt (if applicable) | $0 | $0 | $0 |
| Total Liabilities | $25,000 | $30,000 | $37,000 |
| Equity | |||
| Owner's Equity | $456,000 | $545,000 | $870,000 |
| Total Liabilities & Equity | $461,000 | $575,000 | $907,000 |
Funding Needs
ForgeAxis Precision is seeking $425,000 in funding to expand its high-precision machine shop operations, invest in advanced CNC equipment, upgrade software systems, and create a streamlined, high-quality production environment for clients in the aerospace, medical, automotive, and industrial sectors.
| Category | Amount |
|---|---|
| Advanced CNC Equipment | $190,000 |
| Software & Automation Upgrades | $40,000 |
| Quality Control & Inspection Systems | $55,000 |
| Workforce Expansion & Training | $45,000 |
| Marketing & Branding | $25,000 |
| Working Capital & Materials | $70,000 |
| Total Funding Requested | $425,000 |
Download a Free Machine Shop Business Plan Template
Ready to build your machine shop business plan from scratch but need a little guidance? We’ve got you covered! Download our free machine shop business plan template (PDF) to help you get started with confidence.
This easy-to-follow template includes clear instructions and real-world examples, making it simple to craft a compelling and professional business plan for your machining business. Best of all, it's fully customizable to match the specific goals and capabilities of your shop.
Conclusion
With this business plan example, you now have a clear understanding of how to write a detailed and effective business plan for your machine shop business.
However, if you’re still feeling unsure or need help creating a professional, investor-ready business plan, Bizplanr can be your go-to solution. It simplifies the process and helps you craft a winning plan for your machine shop. Just fill in a few blanks, and the AI will create a plan in a few minutes!
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Frequently Asked Questions
Do I really need a business plan for my small machine shop?
Yes, having a business plan is crucial for your machine shop. It outlines your goals, business location, services, pricing, target customers, marketing strategies, and daily operations. A well-prepared plan is also key when applying for funding or equipment financing, as lenders will want to understand how your shop plans to grow and remain profitable. Most importantly, it helps you stay focused and build your business in an organized and sustainable way.
Why are marketing strategies so important for your machine shop?
Marketing strategies are important for your machine shop because they help attract customers, build trust, and set you apart from competitors. A clear marketing plan increases visibility, drives sales, and supports business growth.
How do you secure funding for your machine shop?
You can secure funding for your machine shop by applying for loans, seeking investors, or using personal savings. You may also explore crowdfunding or grants. Be sure to have a solid business plan and clear financial projections to attract potential funders. This will help them understand your shop's potential for growth and profitability.
What could be the easiest way to draft a machine shop business plan?
To draft a machine shop business plan, you can use ready-made templates that give you a quick, structured approach to outline your plan efficiently. Further, using an AI business plan generator like Upmetrics can be an easy way to draft your plan, saving you a ton of time and effort.
How long should a machine shop business plan be?
A machine shop business plan is usually around 15–20 pages long. However, the length can vary depending on the type of business plan you choose and how much detail you include about your services, operations, and future goals.
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