A tool and die business plan is needed for anyone trying to raise capital for a shop that makes fixtures, jigs, molds, dies, gauges, or cutting tools for millworkers, carpenters, or other entities in the manufacturing and service industries. Many tool and die makers run small, independent operations from a fixed location, with low overhead, slim sales volumes, and established relationships with past clients. If this is your business model, or if you're hoping to get started as a tool and die maker, you should first organize your thoughts as they relate to the business plan. How much capital will you need to get going or to expand? Who is your customer base and what amount can they afford to spend on these products from you? From there, delve into the following:
• List out the tools and dies you're capable of making in-house
• Show a traditional “production run†size or list commissions for one-off projects
• Itemize your intended us e of proceeds at start-up
• Show any contract or PT employment help you'll need
• Put down the marketing you'll need to do, if any
If you are in fact in business already, your plan should feature a past performance section that shows what your profitability has been in recent years and gives the reader a quick synopsis of your success (and failures) to date. This is the lead-in to the full financial model, which for an SBA loan should include at least three years of projected returns. The full model needs a highlights table, use of funds, revenue forecast, break-even point, profit and loss statement, cash flow, balance sheet, and an appendix showing your first year in a monthly detail. MasterPlans has worked with thousands of businesses – start-up and established alike – and the tool and die business model is a familiar one to us. Call the experts at MP and learn how we can help: (877) 453-2011.
