Image result for how to start cnc machine unit shop manufacturing business

How to Start CNC Machine Unit | CNC Manufacturing Shop

The CNC Machine Unit is a productive business which has a lot of scope for growth. Anyone who likes to operate the machine and to build the things may enjoy running CNC machine.

CNC stands for Computer Numerical control, we all know that the NC (Numerical Control)machine are works as per the instruction program feed into the control unit(microcomputer), you can change the program data as per requirement.

Starting CNC machine unit in a crowded market with strong competitors can be challenging for the entrepreneur, here in this article we gathered important detail information about CNC business that will help you to start and grow your CNC machine Shop.

CNC Machine Shop Business Plan

How cnc machine shop business plan should be; You’ve found the perfect business idea, and you are all set to take another step. There’s more to starting a company than simply registering with the nation. These measures will make sure your new company is nicely planned out, enrolled correctly and legally compliant.

A business plan may vary in format by a full size, multi-page document into some “lean” program that fits on a single page. Just take the program’s planned usage into consideration when choosing the arrangement; for instance, banks or other creditors anticipate a thorough strategy, even though a lean strategy is simpler to upgrade frequently.

A definite strategy is vital for success as an entrepreneur. It can allow you to map out the particulars of your organization and find some unknowns. A few important issues to consider would be:

Start Profitable CNC Machine Unit – Business Plan- Lists of Machinery.

#1 Potential of CNC Machine Unit Business

CNC machine is one of the advanced technologies which make manufacturing easier; therefore, the CNC market is growing rapidly.

Nowadays there is an increase in the use of advanced and improved technology such as which offers high accuracy in less time consumption, use of advanced technology reduce the making cost of components.

CNC machining is a small operational unit that can be run by two or three people; the growth rate of CNC machining depends on the client order.

CNC machining business is a profitable business, with the touch of computer technology it has incredible value in the manufacturing industry, and normally it is difficult to manufacture 3D design part but can be easily manufactured using CNC machine.

CNC machine is having high accuracy and quality the instrumental error is eliminated by using CNC machine; Use of CNC machines reduce the time between design and production which helps to the growth of production, CNC machine brings the high speed which is not possible by using labors.

One can operate the machine using the computer, high accuracy, time consumption, well-finished component are main factors that make the CNC machine very effective.

By considering all the above points it concludes that the CNC machine unit is profitable business.

#2. Licenses and Registration for CNC machine Unit

#1) Registration of Firm: You may start the small to medium CNC Machine Unit business either a Proprietorship or Partnership Firm.

If you are starting this business as One Person Company, then you have to register your firm as a proprietorship.

For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).

#2) GST Registration: apply for GST number which is compulsory for every business owner after the GST rule is applied.

#3) Trade License: Obtain tread licenses from local authorities

#4) Pollution Certificate: CNC machine Unit industry deal with some hazardous element that the cause pollution, therefore, it is mandatory to get NOC from Pollution Control Board

#5) MSME/SSI Registration: Register for Udyog aadhar and MSME registration that will help you to get the facility and benefits from the government

#6) Trade Mark: Secure your business brand with tread mark.

#7) Location Permit: you need to get the permission from the state government to start the machine shop unit

#8) No Pollution Certificate: CNC machinery shop deals with the manufacturing of component that may cause the pollution therefore you have to get no pollution certificate from the pollution control board of your state

#3. Area Required for CNC Machine Unit

Selection of the location is a very important task in every business, the location with minimum 2000 sq ft is required for CNC machine unit

Split your area into different compartment like

  • Raw Material Storage
  • Working Area
  • Finished Material Storage
  • Packaging Area

Choose a location for CNC machine unit, which has a facility like water supply, electricity supply, and drainage facility, look for one that requires very few modifications.

Make sure that you have 3 phase electricity connection for running the machinery.

The CNC machinery shop must be easily accessible; also the raw material suppliers should be near to the location which helps to save some transportation cost.

Look for the manpower; you need the well-trained worker so make sure that the manpower is easily available on your location.

Keep in mind the clean location enable you to manufacture clean component or product.

Once you did with the location, do all the documentation that required for the location also, check out the rules that mentioned by your state government.

#4. Raw Material for CNC Machine Plant


Titanium having low density and high strength with high melting point, low conductivity, and resistance to corrosion especially in sea water makes it durable material.

Titanium used in aerospace collars, sleeves, bolts, pins and rivets.

Stainless Steel:

Stainless Steel is resist to corrodes and stain when come in contact with water

Stainless Steel generally used in architecture sector and for manufacturing of medical device; also used in mining sensor houses to maintain shiny and high quality product.

Steel Alloys:

Steel Alloys having property such that high strength resists corrosion and tolerates heat

Steel Alloys are ideally used in mining brackets or automotive parts.

Aluminum Alloys:

Aluminum Alloys is lighter in weight and less flammable work is done with the Aluminum Alloys

To make aerodynamic structures

Due to light weight, corrosion resistance and high strength property Aluminum Alloys it is used in aerospace and medical equipment.


Non-Ferrous material is idea for construction field due to its property of corrosion resistance, non-magnetic, low weight and high conductivity material

#5. Skills and Manpower for CNC Plant

Learning /Training: This is a special task in CNC machine shop, as your business grows you can expand it but you must master one production or method

Once you begin to produce a quality product in less time customer come easily and stay connected to you for longer

So you need to be perfect in one before looking for other things that used to attract new market

CNC machine works with the NC coding which is called g-code, you need to practice the code so you can utilize the machine very efficiently

Skilled Labor (Manpower): if you don’t have knowledge of G-code you can hire the experts who help you to generate Code

Other than coding there is some machinery work such as; operating a machine, loading, and unloading of product, so you need workers for this type of work.

#6. Lists of Machinery for CNC Manufacturing Unit

  • 5-axis: CNC machining works with perpendicular axes and two rotary axes
  • 6-axis: CNC machining works with three perpendicular axes and three rotary axes
  • Lathes: produce 3D component/product by automatically program tool change
  • Milling: used for drilling and turning metals
  • Plasma Cutters: for cutting 2D shapes and molds using the plasma torch
  • Laser Cutters: cutting 2D shapes and molds using the laser instead of a plasma torch
  • Routers: used to cut a metal sheet in complex shape and prototype

Tools and Software’s Required for CNC Plant

Tools: make sure that your workshop has the required tools for the CNC machining

Various Types of Equipment: Chucks, vises, 4th axes, fixtures and other equipment are in place and ready to use

Program and Software: the main task of the CNC machining is program loaded; Ensure that correct G code program is loaded in a computer.

Related Business Ideas:

LED light Manufacturing Business

Candle Making Business

Agarbatti Making Business

Chalk Making Business

Aluminum Door Window Manufacturing Business

#7. How to Target your Clients for CNC Business

Target Your Client

Focus on specific type of purchaser who buys your product at the best quantity

Example: if your CNC unit specializes in producing piston cylinder, then try to establish a relationship with the companies that buy this product at the rate which is favorable to your unit

Targeting on the niche will help you to make the best use of your specialty; also you are able to give the best quality product to your customers which will gain the trust factor toward you

Build a Strong Network

Always search out for new and additional contacts even if you have enough contact, but be sure to complete your jobs on time

One great customer experience leads to gain another, give them quality production right time so they can come back to you with another project

Be Ready For New Technology

Technology is developing day by day; it may be costly in term of installation and training

Recently developed technology have a great impact on production, they make production simpler and more accurate

So be ready to accept new technology which well helps to beat the competitors

Expand According To Demand

It is a bad idea to take a job contract outside the production capacity of your shop, so it is advisable that stop investing without need

Multi-stage process: companies that offer two or more machining process can often save time and cost, so client prefer such companies over others who offer only one processing unit

Promote Your Service

Now you are done with the machine shop, machinery, and skilled labor, then it is time to take the job order

The plus point of using CNC machine is you don’t lose accuracy and precision because it is a computer-based application

It is easy to manufacture components in large quantity, put the advertisement in a newspaper, use social media to promote your business, create your own website to get connect with clients

Value Addition

CNC machine is basically a multi-organized process in which there is the potential for esteem included work at each stage.

A shop’s potential for extending its business to a great extent relies upon what a number of those esteem added steps it can perform.

Here are some niches

  • Aerospace and Defense
  • Automobile industry
  • Consumer Goods
  • Electronics equipment
  • Healthcare
  • Industrial Machinery
  • Metal and Mining
  • Transportation

Franchising Option

If your goal is to start a CNC machining business, you might need to explore whether there is a great establishment opening accessible franchise that may make your life significantly simpler.

React to Your Competition

Monitoring your fundamental competitors is an important practice under most conditions, especially in the midst of economic volatility.

Initiate Variable Growth

Successful business growth and development is not subject to the size of the products being manufactured but on the quality of the fabricating process.

It can be valuable to evaluate the product and services you give to your clients and check whether you can grow the scope of those products and services.


Here we have given Complete Business Plan of CNC Machine Shop . So if you have any query related to this Business comment us. we will definitely answer your question.

How to Start CNC Machine Unit | CNC Manufacturing Business Plan

STEPTOWARDBUSINESS.COM Was Started With A Mission Of Educating Young Students And People Who Want To Be An Entrepreneur.

Leave a Reply

Your email address will not be published. Required fields are marked *