Big thinking to do

[R1cho]

well, I have the opportunity to get a workshop, its a big one with lots of tools, including a bender that bends 1/2" thick steel, metal lathe, spot welder, tig welder, mig welder, sheet roller etc. you get the idea, the lease on the place is for as long as i want, the bloke said i can have it for 21 years if i want, the downside is the rent is £1500 a month :swoon:

Now it does come with a contract for stainless steel catering equipment, chip shop friers etc. that he says will more than pay for the rent he also said he will give a concession on the rent for the first 12 months but didn't say how much and i was busy drooling over the tools and forgot to ask lol

I have some ideas for fab work that i think would sell and make money such as dislocation cones that also give a 2" lift, gearbox scissor jacks, and contemporary furniture. The thing is, it's a big undertaking and i'm not sure i'd be able to run such a large workshop on my own never mind cover the rent costs. Lots of thinking to do but it could mean big things if it does all come together.

 

[Fez_uk]

can you tig weld? Im guessing thats what's needed to weld the stainless steel for the catering equipment contract?

I'd take what he says with a pinch of salt.

 

[Fez_uk]

forgot to say think about what tools you could buy for £1500. I'd start at a smaller place, less overheads etc.

 

[R1cho]

tig welding is actually pretty much the same as mig, the catering contract is with a catering supplies company that he owns which is in the same building.

heres some of the tools

 

[rustic]

£1500 a month is £18,000 a year

You would need quite a lot of business to justify that sort of expenditure.

That would have to come off the bottom line, before you make any profit.:doh
You would need a team of people and loads of orders.
Or manufacture a high value products, with low build costs.

Some serious machines there.

You would also need a fork lift truck to handle all the steel you would need to buy, to justify these hungry machines.

 

[cncfabs]

Ive been in welding/fabrication for nearly 30 years so have some experience.Those machines are old hat very labour intensive.These days its all about laser and cnc machines.If youve got product ideas design them and get someone to make them for you and take the margin on them

 

[Paul]

Have looked into what the rates are for the building? bet that's not going to be cheap.

 

[larson]

tig welding is actually pretty much the same as mig, the catering contract is with a catering supplies company that he owns which is in the same building.

mig and tig are a fare bit different. i do both plus braze and stick weld.

you will need to have a very nice weld on catering equipment as you wont want to be putting a sander to it.

i think its a lot of outgoings to risk especialy if the catering contract finished..

 

[spautoparts]

If the business is profitable, why is he giving it away?

 

[rustic]

If the business is profitable, why is he giving it away?

He isn't giving it away, he's getting £18k a year for lending it out, after all, he still owns it all.

Good business sense.:augie

 

[spautoparts]

He isn't giving it away, he's getting £18k a year for lending it out, after all, he still owns it all.

Good business sense.:augie

But if the only way the owner can make profit is to rent his business then the actual business side of things can't be great.
Unless its a genuine reason such as retirement etc....
Just dont rush in. Ask loads of questions and research it

 

[R1cho]

the rates were included in the rent, its just the electric that isn't, the owner is renting it out as it just sits there doing nothing at the min, anyway after going over finances and talking with the other half we have decided no to bother with it

 

[clivvy]

wise decision mate, I think the guy is asking way too much and as said that equipment is old - Fez said the right thing, buy £1500 worth of tools and start from the back of your van!!

 

[makeitfit]

Similarly with product ideas. It's quite easy to design well, and get it made for you, then you market it out again. That's what I've done a lot

 

[solarman216]

the rates were included in the rent, its just the electric that isn't, the owner is renting it out as it just sits there doing nothing at the min, anyway after going over finances and talking with the other half we have decided no to bother with it

Very wise mate, heath and safety comes to mind with older equipment like that, great for a private workshop but for a commercial one very different, Rick

 

[AlexD333]

I would have been your first customer :lol