Starting Your Own Weld Shop
The economy has forced many companies out of business recently, and many people are out of work, but there is still welding to be done. This may present an opportunity for enterprising individuals who can achieve a high level of efficiency, quality and productivity.
Starting your own small weld shop could provide the advantage of reduced overhead and employment-related costs that can burden larger shops. A leaner, more responsive shop can often provide a quicker turn around on orders and find profit in one-off projects that would be a wash for other shops.
Another reason this might be the right time to start a weld shop is that there are some very skilled welders out there looking for jobs. As we’ve reported in the past, companies often had a very difficult time finding skilled employees when there was a welder shortage. If you do need to hire on some additional help, you’ll be more likely to find experienced welders who can start producing from day one.
And, the economy will rebound. There is no doubt about that — only uncertainty about when it will happen. Embarking on a new business venture and taking on small accounts now could pay out major dividends when the economy picks up and those small jobs grow into significant revenue sources.
Of course, there are some things to consider before quitting your day job. How experienced are you at welding? Have you written a business plan? Do you have enough money saved to support yourself with little to no business income for at least a year or more? Are you prepared to do the networking and door-to-door selling to land your accounts?
Starting a new business is always a risky endeavor, right now possibly more so than any time in the last 75 years. But where there is great risk, there can also be great reward for those who plan carefully and wisely.
Have you started your own welding business in the last two years? If so, what has been your experience? What advice would you give to someone considering opening a weld shop? Do you believe that now might be a good time to start a weld shop business? Share your thoughts on this topic by posting a comment below.
Tags: SEMA 2009
Average (Not Rated)
June 20th, 2009 at 2:07 pm
Who in their right mind would start a new business under this new regulate / tax you to death administration?
The optimist sees a half full glass
The pessimist sees a half empty glass
The realist sees that the vessel is twice as big as it needs to be..
My 30 yrs of self employment has molded me into the last of the three categories..
June 23rd, 2009 at 7:00 am
The alternative thinker says the glass is 100% full, half with water and half with air.
June 23rd, 2009 at 12:41 pm
I have a buddy that lives pretty well and makes very little money. They haven’t figured out how to tax the barter system yet. He assigns no dollar value to what he does but trades for food, meals, gas or just about anything else. I am seeing a lot more people going to this system and avoiding taxes. I myself am not quite comfortable with the idea but you never know. When a can of coke has a 10 cent tax on it above the regular sales tax I might be pursuaded to do something else.
June 29th, 2009 at 9:42 am
two words you guys, two words…. Mona Vie. I’ve had my own mobile welding business here on the central coast of CA….. wine country. Alum., S/S, Carbon Steel. The whole wine industry is corrupted to the core because of the massive use of illegal labor. They bring them in right off the fields(at less than the standard min. wage rate) and put them to work not only doing the processing of the wine but the building of the winery it’s self. The industry for years could build willy-nilly for years because it came under an Ag. code which they could claim was temporary construction. The stainless steel tank manufacturers predominately from the San Jaquine Valley would have their guys travel to build on site for $9.50 an hr. At one point the state of CA worked out a program and let a company use prison labor welders to weld the s/s for One dollar an hour-!! As a pipe-fitter by trade I Started out in the bay area refineries at $9.50 an hr that was non -union in 1975. The pipe-fitter unions have a hard time now getting the water pipeline work because its all gone to the laborers union. The pipe/fitters and plumbers union have a hard time getting good welders because most guys sign in on the fitters list and get the same pay and work less. sit and watch the welder weld. I KNOW I GOT OFF SUBJECT, SORRY. The point is is that the cheaters are winning the majority of all the contracts. This is not what I want to fight with and lose. No one is watching the store. The store that keeps getting ripped off will fold and find something else to do.
I had over $18,000.00 worth of welding equipment stolen from one of the few bigger jobs that I’ve gotten. Another huge problem with the construction trade…Theft of equipment and theft of labor through illegal immigration. For those of you trying to do what I’ve done, how’s it working out for you, as for me it’s MONA VIE!!
July 1st, 2009 at 10:32 am
my husband started his own business 4 years ago. he has been very successful. he has a shop and mobile operation. he works by himself and i help when i can but he has plenty of work that keeps him very busy. He does stainless and aluminum welds and fabricates everything and anything lots of boat tops up to doing roof panels so yes it can be done and is being done
July 3rd, 2009 at 11:55 am
No one is watching the store, the store is not convinient to us and I am seeing a lot more people going to this system and avoiding taxes…..
July 4th, 2009 at 12:14 am
I run a small welding service in South Africa.
My tips for a small welding business
1. Keep your overheads as low as possible. I setup shop on my own property so I am saving on rent, traveling to work, insurance cost and time
2. Start by advertising to a small community. This will help you understand the customers needs. You will also pick up on what equipment is a must have and what you can do without.
3.If you can buy secondhand equipment. Be very careful/clever here. Be sure what you buying is in a good working order.
4.Don’t take on big contracts to soon. Big contracts usually require that a set amount of work is done before payment will be made. You will have to be able carry those expenses for a while
5.Make sure you understand the job completely before commiting to a price and time frame. Some jobs have alot of hidden secrets that could cost you more time and materials that was initially thought.
6.Remember that welding is your passion and that’s the focus. The money will come once you have a reputation.
7. Hug your Miller after every job(or respect your equipment if hugging is not your thing)
July 4th, 2009 at 8:54 am
A little tangent - goods and services bartered are still subject to taxes at their market value - be careful who you trade with.
July 6th, 2009 at 1:36 pm
I started my welding business in 1995. I held on until 2007. Boy am I glad I got out of it. Between taxes, worker’s comp and other insurances, there was not much left for me in the end. I sold what I could and kept the rest and went back into Engineering work. I was doing 70 to 80 hours a week back then, now I do my 40 hours and forget about it. I basically was married to two women, one was my wife of thiry years and the other was the business. Been there, done that and I did not get a tee-shirt.
July 23rd, 2009 at 1:25 pm
To GdTs response:
I have done tips 1 through 5, tip 6, I’m waiting for a reputation, and tip 7 respect and some hugs? anytime for my Miller!.
Thanks
July 29th, 2009 at 4:10 pm
To Gdt response:
I just bought a new Tblazer 302 not long ago started it twice adjusted my settings and burn a 7018 turn it off allow it to cool while checking my list of other things that i need to start my small business.
ps. I’m starting from the ground because i can only go up
August 1st, 2009 at 2:34 pm
I’ve been in and out of business for almost 35 years. If you want to make It be ready for long hours, hard work and lots of headache’s. You can make but I’m not sure It’s worth all the hours you put into It.
October 17th, 2009 at 5:52 am
Im 15 years old and i do shop and mobile weldinding. when i work i make pretty good money, but its hard to find work these days. In my opinion i say give it a shot.
Owner of:
aead 200le
lincoln sp-100
miller thunderbolt
harris oxy-acet torch