The metal casting industry is concentrated on making molten metal parts that meet end-user specifications. The industry includes die casters and foundries, but most startups are die casting businesses that fill orders for customers who need parts for equipment, autos and trucks, machinery and so on. They also add other services such as machining to ensure long-term success.
Investors reading the business plan for a metal casting shop need to have a clear understanding of the proposed metal casting business. There is a wide range of casting categories so the business description and operating plan need to ensure it stays focused on the specific services and products the business will offer the market. For example, will the business manage aluminum, brass, zinc, or brass castings? The answer drives everything from the type of equipment needed to defining the ideal marketing plan.
Content Of The Business Plan For A Metal Casting Shop
While preparing the business plan for a metal casting shop, include information about:
• The specific metals and alloys offered to customers which can be ferrous or nonferrous metals
• Description of typical products and services which may include industrial furniture, stud castings, nozzles, machine parts, boiler tubes, etc.
• Location, size and configuration of the fabrication shop
• Equipment and tooling requirements which are capital intensive for this type of business
• Plans for achieving quality standards like ISO certification
• Marketing plan to attract and retain industrial and non-industrial customers on a domestic or international basis
• Description and analysis of the marketplace which may address domestic and international markets
• Long range plan for adapting to changing marketplace demands which are projected for the industry
• Plan for adhering to current and changing environmental and safety standards
• R&D and technology competencies that support competitiveness
• Strategies for materials sourcing over the long-term
• Financial plan for the first five years (or longer) of operation
The U.S. is third in line as the world’s largest producer of metal castings. As the economy improves, demand for metal castings will grow, presenting an ideal opportunity for market entrance. Startups can choose to start small, serving a local or regional market, or open as a foundry able to serve large customers like global auto manufacturing plants. Since this is a capital intensive business, most business plans are used as both a roadmap and a support document for investor or financial institution funding.
Developing a business plan for a metal casting company requires the input of experienced professionals familiar with the industry and its unique requirements. OGS Capital consultants offer the knowledge and expertise needed to develop a business plan that concisely and clearly lay out a path for success.
Illustrative business plan samples
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.