The relentless chase for deadlines, the constant churn of talent, and the gnawing feeling that you have to be the cheapest bidder just to land jobs are enough to make any metal fabrication shop owner want to throw in the towel.
But before you call it quits, consider this: there might be a hidden culprit behind your profit woes, one that has nothing to do with the market or competition.
The Unexpected Profit Drain
Have you ever considered that your team, the very foundation of your shop, could be a double-edged sword when it comes to profitability?
A skilled and motivated crew can be your greatest asset, churning out high-quality work and keeping projects on schedule.
However, a disengaged or inefficient workforce can silently hemorrhage your profits through wasted materials, missed deadlines, and rework.
The Solution You Didn't Know You Needed
So, how do you unlock your team's true potential and transform it from a cost center into a profit driver?
The answer lies in cultivating a culture of purpose and empowerment within your shop. It's not just about throwing money at salaries or benefits.
It's about creating an environment where employees feel valued, invested, and empowered to contribute their best work.
But how do you achieve this seemingly elusive goal?
This isn't your typical "management advice" fluff.
It is a battle-tested guide specifically designed for the unique challenges of the metal fabrication industry, such as people and profit.
Here's a taste of what you'll discover inside:
Stop the endless cycle of frustration and lost profits.
Download your FREE copy of "The Metal Fabrication Shop Profit of Purpose" today and discover how to build a thriving, profitable business that generates consistent revenue and fosters a team you're proud to lead.
Click here to access your guide now and unlock the hidden potential of your shop!
P.S. Don't wait another day to take control of your shop's future. Every additional day you spend struggling with a disengaged team is another day of lost profits and missed opportunities. Download your FREE guide now and start building the metal fabrication shop you've always dreamed of!
#metalindustry #metalfabrication #welding #steelindustry #businesssuccess
Crowded Space
Competition is high when it comes to your metal fabrication business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Motivation of employees
If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process
A metal fabrication business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins
The gross margins for your metal fabrication business are typically around 30%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover
In the metal fabrication business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Work can be inconsistent
As a metal fabrication business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.
Lack of benefits
With a metal fabrication business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Isolation
Often times, as a metal fabrication business, you typically work alone and do not have much face-to-face interaction with other team members.
Taxes
As a metal fabrication business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Stressful work
This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.
High overhead expenses
With starting a metal fabrication business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.
You may need to charge sales tax
If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article
Strict regulations
With any metal fabrication business, there are strict rules and regulations as it relates to processing your product. You must follow these regulations specifically, or significant legal issues could occur.
Complex development process.
The development process for a metal fabrication business can be quite complex, which may cause delays and challenges when launching and growing your product.
Complex maintenance
Your metal fabrication business will require a long-term investment due to the need for updates, bug fixes, and security vulnerabilities. It's important that you (or someone on your team) stays on top of this at all times.
Be prepared to get out of your comfort zone!
Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go!
You might struggle financially (at first)!
If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.
More of a challenge to run your business from home!
Running your business from the comfort of your own home is a big appeal for many entrepreneurs. With a metal fabrication business, you are more likely to run your business out of your office or storefront space.
Minimal physical activity
A big part of starting a metal fabrication business is sitting at a desk for the majority of the day starting at your computer. Some may enjoy this, but others may struggle with sitting for the majority of your day without much physical activity.
Work is not always glamorous
With starting a metal fabrication business, you may need to get your hands a little dirty. Although it may seem glamorous from the outside to start this business, the work can require a lot of physical activity and repetition.
Learning Curve
When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.
The job can be demanding
This is one of the major disadvantages starting a metal fabrication business. It's important to understand that you may need to make yourself available on a 24/7 basis.
You may need to relocate
There can be a lot of opportunities that come your way when starting a metal fabrication business. Although moving around can be fun and exciting, it can also be physically and emotionally taxing for you and loved ones.
High liability
Running a metal fabrication business involves a lot of liability, which means the cost for insurance premiums may also be high.
Equipment Breakdowns
Over the years, your equipment can get damaged, break down, and may need repairs which can be expensive. It's important you prepare for these expenses and try to avoid damages/wear & tear as much as possible.
Answering Phones
The metal fabrication business is still considered a traditional business, which means answering phones is a big part of the job. If you or your team miss phone calls, you could be missing out on potential revenue opportunities. If you are unable to attend to your phone throughout the day, it would be in your best interest to hire a call center or an employee dedicated to this.
The job can be dangerous
Your metal fabrication business can have its dangerous moments, which puts you and your employees at risk. It's important to consider all liability and put processes and procedures in place that will prepare you and your team.
Takes time to see results & make money
Results and revenue do not come overnight with a metal fabrication business. Often times, it takes weeks, months or even years for your work to monetize.
Technical issues can be frustrating
Technical issues are common in this business. If you struggle with the technical side of things, you may want to consider outsourcing this responsibility to save yourself the time and frustration.
More challenging to earn passive income
It can be more of a challenge to make passive income in this business. Often times, the amount of revenue you bring in is limited by the amount of time you have in the day.