Turning a welder into a profit maker - Analyzing the market
Once you have investigated the different possibilities that may exist in your local market, the best thing to do is to plan out your strategy on a piece of paper. Assemble all the information you have gleaned, and simply write it down. Look at the different possibilities, and try to use this information to determine any additional equipment you will need. This is a key step. Getting half way through a project, and realizing that you have to purchase something to complete the job is not a pleasant issue to deal with. A welder alone cannot make a welding shop or accomplish any repair or fab project. You'll need drills, grinders, saws and a whole host of measuring and leveling tools at least. It can result in delays, especially if you have to shop around for the item or it isn’t in stock and has to be special ordered. It can create a financial bind by either underpricing a quote or tying up much needed operating cash. A delay can hurt your reputation early on. An underpriced quote will tend to make you want to cut corners, and in turn hurt your reputation as well. After making sure you have outlined the needed equipment, talked with possible customers, and taken a good stock of all the pros and cons of each possible avenue, look for a pattern. In other words, look for any niche that you can seize hold of that will give you an advantage, and make your product or service indispensable, or desirable to a significant number of customers. At this point you must begin to formulate a business plan. Organizing a business plan is not as complex as it sounds. You have already done much of the leg work by surveying your market. But you’ll need to survey your current income, if any, and cash reserves as well. A careful review of your credit is in order as well. Everything from buying metal, leasing a cylinder or purchasing gas for MIG welder will require credit if you have low cash reserves. A bank or even a college with a business school can offer you information to help organize your endeavor and determine if the numbers add up. In fact, if you are considering a business loan it is a requirement in most cases.