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44 MMS April 2017 mmsonline.com THE VIEW FROM MY SHOP Guest Columnist As a first-generation business owner, growth is almost always on my mind. The idea can quickly become overwhelming. There are so many aspects to consider: current and future economic condi- tions, my budget, what equipment to buy, when to buy it, who to hire, when to hire. The list goes on. Growth largely comes down to how comfortable each of us is with risk. Some people throw caution to the wind and go with their gut, while others may be a bit slower and deliberate in their decision- making. Different strokes for different folks, right? Decisions related to growth are particularly critical for a budding business. What might seem like a minor move for a larger company could make or break a small shop. Regardless of the size of the business, there are never any guaran- tees of success. So what exactly should a shop consider when contemplating growth? Here are four suggestions: 1. Growing your customer base. As a mechan- ical engineer, I tend to take a logical approach toward just about everything. Consequently, a great deal of my shop's growth has logically stemmed from the need to meet the demands of existing customers. Maybe you are tr ying to attract a potential customer that is much larger than any you currently have, or maybe you are still trying to get a feel for a new customer's needs. Although no one likes turning down work or saying no to any customer, good problems are still problems, and there are still other factors to consider before you make that decision to expand. 2. Expanding your plant/adding equipment. The most important goal of any business is through- put, and two of the most important commitments are capital equipment purchases and investments in personnel. Efficiency is critical, as we have only a limited number of hours in each day. So what is the best approach? Is it purchasing a new piece of equipment or software? Is it acquiring more space in which to expand and operate more effi- ciently? Is it adding an additional shift or employee to help process more work in a shorter time frame? No matter which approach you ultimately choose, it should not be only to satisfy your immediate needs. If you do your job right, over time, your company will grow into any new resources. 3. Finding a niche. Identifying a niche for your products or services is important for securing a competitive advantage. It may not be something that you establish overnight. In fact, it will probably take years, a lot of trial and error, and maybe even some luck before you do find your niche. In many ways, it will be dictated by the equipment you buy. One of the first major purchases I made for my shop was a lathe so we could add turning to our in-house capabilities. Although I could see the long-term value of adding more than just a two-axis lathe, buying more machine than I needed at the time was a risk. Because I planned to be in this business for the long haul, however, I decided it was a risk worth taking, and I ultimately added a lathe with live tooling, a subspindle and a bar feeder. Now, years later, I couldn't imagine life without it. We have since purchased a few pieces of equip- ment specifically for a particular job or customer. In each case, these machines eventually also helped us grow into new segments of manufacturing, including five-axis and horizontal machining. My point is: If you are going to invest in a piece of equipment, make sure it's also a smart investment in your overall business. Growing Pains Expanding a business is not a given. Here are a few important considerations. ALBERT RACZYNSKI OWNER MACHINED CONCEPTS LLC ELGIN, ILLINOIS ALBERT@MACHINEDCONCEPTS.COM This Month's Columnist: