Starting a welding business.....thoughts and opinions wanted!

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Me and a buddy are contemplating opening up a welding shop of our own. Our hope is to do contract welding work for larger companies. We’re also bouncing around the idea of making/marketing some of our own product(s) to help supplement our business income while we’re getting our contracts lined up. We’re not necessarily wanting to take walk-ins and repairs. We’re currently researching everything we can, and are trying to come up with an industry to focus on. We were looking strongly at the farming industry, as there’s plenty of welding to be done there. We’re just wondering if that industry isn’t already tied up too much. Is there room for any more competition on troughs, hay bail rings, and such? Would we have a market? We’ve also looked into the hunting industry. We’ve considered making tree stands, deer feeders and such, but again, is there room for more competition? We’d like to come up with a niche market where we don’t have much competition, but the more we dig the more we’re realizing that that is going to be hard to find. I don’t expect anyone to give up their business plan, but we would greatly appreciate any ideas, comments, or constructive criticism. Right now we’re just bouncing around ideas, but this is something we are serious about. Any help or comments would be appreciated. Thanks, Adam
Reply:My business is primarily farm/Timber based.   I wouldn;t think that building hayrings, and troughs, etc... are going to be very profitable.  The market is pretty much flooded with that sort of thing as it is.  Not to mention I have never been able to build the stuff and make a profit that satisfied me and keep the price competitive.  You have to remember most of the people building these types of things are minimum wage workers in a fabshop.  Not a highly skilled weldor making $35/hr or more.   The largest money to be made in that sector is going to be the repair side.  However even if you can come up with a marketable product or contract the farming sector is in trouble right now.  Rising fertilizer costs as well as tripled fuel cost are making most farmers (in the southeast anyway) hold on to their money.  That is if they have it to spend in the first place.  The wildlife sector may hold some promise. again in your area I could not say, but it seems here that more money is being spent on wildlife/hunting year after year.  Keep in mind that with tree stands etc... there is gonna be some serious liability on you.  All it takes is one fool do something stupid and get killed in your stand and then you are being sued.  I don't know anyone who just setup shop and started big that lasted.  If you want a long term successful business then start slow, do what work you can get charge a fair price, Do good work, stand behind it and you will eventually build to a point you want to be.  It's take me 10 years to get where I am now, and you wouldn't believe the diversty of work I do.  I can be putting handrails in one week, building Farm machinery the next, repairing logging equipment one day, and doing piping work the next.  it keeps it interesting and keeps the money coming.   Good Luck.  ~JacksonI'm a Lover, Fighter, Wild horse Rider, and a pretty good welding man......
Reply:I own a small "mobile welding" business.  It is primarily wrought-iron repair / replacement (pool gates, personal home fencing and gates, etc.).  It isn't making me rich but it is very easy work and makes a decent amount of money (WHEN I get calls).  I also have a regular day job for now, but I sure would like to have regular business so I can be my own boss full-time.  I know how you feel, and I think you are on the right track.  I find it's mostly hit and miss, and I never know what job I'll get, which I think is a blast.  I've repaired trailers, done safety chains, BMX bikes, fencing, several mufflers and exhaust systems, much more.  It's a very fun area to work in, and I enjoy every minute!  Best of luck man.Have a Jeep Cherokee?  Click Here!
Reply:Don't take this the wrong way,  but.....  Go to tractor supply and look at the price of a hay ring, or a trailer.   Go home and figure out how much it would cost to build one as good or better.  You will be surprised, you can't do it for what they sell for.I am in the middle of building a welding business.  I HAVE a garage and do fleet repairs, trucks and stinkin cars.  I would much rather weld than mess with cars.  The commerical stuff pays better than the private stuff.  3 years ago it was 10% welding, 90% repairs.  Now its 50/50 or even 60/40 depending on the week.I do get some contract type welding jobs.  30 pieces here, 80 there, 25 of these......  These seem to be the biggest $ for me.  Last year I did some structural work on cell towers.  This paid the best, but the work dried up for a lot of reasons.  Mostly the company I was working for is working in other states.Like said above, do good job for a fair price.  Get it done when They want it done and they WILL be back.  It takes time.  I have no sign and don't advertise.  I just keep doing my best.  When customers are happy, they will spread the word.As far as starting out with a BANG, good luck.  You can tie up a lot of money and time and maybe it will pay off.  8 out of 10 new business fail in the first 2 years.  I been at it for 3.5, so I beat those odds.  This is not my first business.If you do become self employed, it will be the best education ever.DavidReal world weldin.  When I grow up I want to be a tig weldor.
Reply:The fastest way to make a small fortune in welding is to start with a large one, then open the doors for business!!!!And then, after so much work...... you have it in your hand, and you look over to your side...... and the runner has run off. Leaving you holding the prize, wondering when the runner will return.
Reply:I started this business with ONE unemployment check.  DavidReal world weldin.  When I grow up I want to be a tig weldor.
Reply:Being conservative thinking...I'd start with making the business your "side" job.  Grow it until it takes more time then your "day" job.  If your really good, and there is plenty of real "need" for your services, it won't take long to get it going full time.Don't try to do everything at once. Add equipment and capabilities as you need them. To much is made of whether or not you have all new equipment. You don't need the latest TIG  machine Miller has to offer to make a business work.  What you do need is the ability to weld with what you already own.  You'll be able to buy any machine you like sooner than you might think. It truly does not take a million dollars to get started. Like David stated (One Unemployment Check)...In my experience, the best way to get business is to get started doing something. Nothing brings in customers like being at the job, working on something. Do a couple jobs for free,(or just break even) just to get the ball rolling.  If you do good work, those customers will be refering others to you in a flash!The best things in life all come on a stick!
Reply:Originally Posted by David RI started this business with ONE unemployment check.  David
Reply:I wish you guys well with your venture.  I think making a product is a good idea.  Think simple stuff.  Consider all steps it will take to get the product out the door and how fast you can produce a quality product.  You don't have to make everything, it might be cheaper to have parts cut, brackets fabricated or purchased, product painted by third party, etc.Since you're considering a partnership, make sure you guys are on the same page.  It is not a hobby, so you need quality equipment to do the job not necessarily the best stuff.  Basically, used paid for stuff will serve well.  No payments to eat away at your profit.
Reply:That hardest part of manufacturing an item is getting it out there on a large scale. Picking up a distributor to take you product across the US (or the world) is the hardest part.One thing to remember- what you can make by fabricating & welding, a robot can make it in 1/10 the time for 1/3 the cost and with more consistency and fewer employees.
Reply:Originally Posted by MissourianMe and a buddy are contemplating opening up a welding shop of our own. Our hope is to do contract welding work for larger companies. We’re also bouncing around the idea of making/marketing some of our own product(s) to help supplement our business income while we’re getting our contracts lined up....
Reply:I owned a portable welder, A G7, I had an OLD transformer plasma and set of torches.  I also had determination.One time I was buying some 3/16" plate from a forklift battery manufacture for .20 a lb.  It was a good deal, so I made 5 BBQ grilles and put them out in front of my house.  Asking $100 to $160 each.  I sold the smallest one for $75.  The rest never sold.  Just one venture that didn't make it.  Nothing lost, nothing gained.If you are going to have a partnership, draw up some papers because when things get good or things get sticky, partners aren't the best of buddies.  Been there done that too.DavidReal world weldin.  When I grow up I want to be a tig weldor.
Reply:You would be living the American dream to be your own boss. Be willing to do anything, Don't sell your self cheap try to get in good with contractors. Be on time and know what your quoting. If you screw up it comes out of your pocket.
Reply:from having owned 2 business's in the past, here's my simple advice.if you are going to create a product for sale, or be involved in repairing a specific line of products, make sure it's a "want" not a "need".think about this from your own personal experience. you are much more willing to pay more money for something you want than something you need. it's a fact of life. you've all heard the joke: "the one with the most toys in the end wins".  fact is, it's not a joke, everyone strives to get what they want, but they do the bare minimum to get what they need.best of luck in your venture, K.I.S.S. and you'll do fine.
Reply:I think David got the main point, partnership is bad!  Especially a good friend or family!  Don't do it unless one of you is the boss and the other is the employee and it's understood that is the way it's gonna be!DewayneDixieland WeldingMM350PLincoln 100Some torchesOther misc. tools
Reply:I too would think long and hard before getting into a partnership with a buddy.Real good way to kill a friendship.I heard that the #1 thing that married couples fight over is money... and they have the advantage of make up sex!
Reply:Originally Posted by littlefuzzI think David got the main point, partnership is bad!  Especially a good friend or family!  Don't do it unless one of you is the boss and the other is the employee and it's understood that is the way it's gonna be!
Reply:What you want to do can be done, but it may take a while to get there. I've been involved in welding 40 years and until 1 1/2 years ago had never owned a welding machine or cutting torch. Now there are 9 machines, though some are seldom used they were bought at excellent prices, and will be there when needed. Only two were purchased new. Production work requires a lot more than welding machines. Contracts can be hard to get especially the bigger ones and those from large companies. Chances are someone already has it, and getting it away from them may be difficult. My competition down the road was already here and well established when I arrived. Another has opened up since I did. We are both covered up and have been for months. The company that was already here exists no more. Several of my clients are former clients of theirs. I got them because they were tired of calling a welder and then having to call him back in two weeks to fix his work that had already broken. Pay attention to that part as it is critical to getting and keeping customers. Mobility can be a plus, but it is expensive. It costs me more to do mobile work than it does to do shop work. Electricity runs me 250 -350 a month depending on the season. Fuel alone when running the truck daily averages around  200 - 250 a week. That doesn't include bi-weekly oil changes on the machines or maintenance on the trucks. Oil, tires, other parts that wear out, etc. Not to mention the additional insurance. Lot of things to think about. Also keep in mind a small shop can never compete with a large factory, or cheap foreign labor. China and Mexico are killing me on some things, but can't touch me on quality. Paying cash up front for equipment is a real good idea. You don't have to make payments on it, and the bank can't come get it if things get slow for awhile. I have seen many many welding businesses fail for that very reason.The difference between art and craft is the quality of the workmanship. I am an artist.