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Free VC Directory

With any B-Plan Purchase
425 Page Capital Directory
Through Nov. 30

Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2020

Business Startup Guides
Checkout our new sister site!

Free Machine and Lathe Shop Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!

Please note that the financials in this complete free business plan are completely fictitious and may not match the text of the business plan below. This free business plan demonstration purposes only. If you are interested in purchasing the completed editable MS Word and Excel documents for this business plan, please click the button below! Also, the text of the business plan is formatted with a fully automated table of contents.

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It should be noted that there is no special software required to use these templates. All business plans come in Microsoft Word and Microsoft Excel format. Each business plan features:

  • Excecutive Summary
  • Company and Financing Summary
  • Products and Services Overview
  • Strategic Analysis with current research!
  • Marketing Plan
  • Personnel Plan
  • 3 Year Advanced Financial Plan
  • Expanded Financial Plan with Monthly Financials
  • Loan Amortization and ROI Tools
  • FREE PowerPoint Presentation for Banks, Investors, or Grant Companies!

1.0 Executive Summary

The purpose of this business plan is to raise $175,000 for the development of a machine and lathe service shop while showcasing the expected financials and operations over the next three years. Machine and Lathe Shop, Inc. (“the Company”) is a New York based corporation that will provide custom development of metal, ceramic, steel, and alloy components to manufacturing partners and other businesses within its target market. The Company was founded by John Doe.

1.1 Products and Services

On an outsourced basis, the Company will be able to produce, to customer specifications, any type of specialized metal, ceramic, steel, or alloy product. The Company will maintain an extensive industrial working room that will allow the Company’s three machinists to effectively produce the products needed by the Machine and Lathe Shop’s roster of clients. The business will also generate secondary streams of revenue from the transportation of completed goods to its customers. The third section of the business plan will further describe the services offered by the Machine and Lathe Shop.

1.2 The Financing

Mr. Doe is seeking to raise $175,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.

1.3 Mission Statement

Machine and Lathe Shop’s mission is to become the recognized leader in its targeted market for precision production of metal, ceramic, steel, and alloy components.

1.4 Mangement Team

The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the precision manufacturing industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.

1.5 Sales Forecasts

Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

1.6 Expansion Plan

The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target manufacturers and other businesses that required machined works within the target market.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Machine and Lathe Shop, Inc. The Company is registered as a corporation in the State of New York.

2.2 Required Funds

At this time, Machine and Lathe Shop, Inc. requires $175,000 of debt funds. Below is a breakdown of how these funds will be used:

2.3 Investor Equity

Mr. Doe is not seeking an investment from a third party at this time.

2.4 Management Equity

John Doe owns 100% of Machine and Lathe Shop, Inc.

2.5 Exit Strategy

If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of Machine and Lathe Shop. Based on historical numbers, the business could fetch a sales premium of up to 4 to 6 times earnings.

3.0 Products and Services

Below is a description of the machining services offered by the Machine and Lathe Shop.

3.1 Machine and Lathe Services

As stated in the executive summary, the primary revenue stream for the business will come from machine and lathe services rendered to local manufacturers, trades businesses, and other organizations that have an ongoing need for specially made metal, ceramic, alloy, and steel pieces. The business, with its extensive inventory of machines, will be able to produce any piece requested by a customer to their exact specifications. The Company also intends to do a significant amount of business with automotive companies and trucking companies that require specialized components in regards to their operations. At the onset of operations, Management anticipates that the Company will have three machines/lathe operators working on behalf of the Company.

3.2 Transportation Services

Approximately 15% of the Company’s aggregate revenues will come from transportation and delivery services related to the machined products produced for clients. The business will mark up its direct transportation and delivery costs by approximately 35%. This is an important secondary source of income for the business.

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the machine and lathe industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2010, at which point the economy will begin a prolonged recovery period. This in turn has also led to a dramatic slowdown in demand for manufacturing services, of which machine and lathing services are classified. However, the high gross margins generated by the business will ensure that Machine and Lathe Shop, Inc. can continue to offer its services at a profit despite moderate declines in aggregate demand.

4.2 Industry Analysis

Within the United States, there are approximately 10,000 machine and lathe shops that provide specialty metal/ceramic/alloy/steel working to customers. Aggregately, these businesses generate approximately $26 billion per year of revenue while providing jobs to almost 200,000 people. Aggregate payrolls in each of the last five years have exceeded $8.5 billion. This is a mature industry, and the future expected growth rate is expected to mirror that of the general economy. Once the economy completes its correction, Management expects that the machine and lathe industry will resume a more normal growth cycle.

4.3 Customer Profile

Machine and Lathe Shop’s average customer will be a business that requires ongoing specialized metal works in conjunction with their manufacturing or automotive/trucking operations. This is an extremely large demographic, and as such, it is difficult to determine the demographics of an “average” Machine and Lathe Shop, Inc. client.

4.4 Competitive Analysis

This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.

5.0 Marketing Plan

Machine and Lathe Shop, Inc. intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Machine and Lathe Shop.

5.1 Marketing Objectives

  • • Establish relationships with manufacturers, automotive repair companies, and trucking companies within the target market that have a continued demand for precious metal products.

  • • Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.


5.2 Marketing Strategies

As the Company’s primary market will consist of other businesses, it is imperative that Mr. Doe develop a highly targeted marketing campaign that will focus on producing ongoing relationships with customers that will place regular purchase orders for machined/lathed products with the Company. To that end, Mr. Doe intends to develop an extensive sales brochure that will showcase the Machine and Lathe Shop’s ability to produce any type of machined product. This brochure will provide all necessary contact information and preliminary pricing information for the customer. Machine and Lathe Shop, Inc. will also use an internet based strategy. This is very important as many people seeking local services, such as machine and lathe shops, now the Internet to conduct their preliminary searches. Mr. Doe will register the Machine and Lathe Shop with online portals so that potential customers can easily reach the business. The Company will also develop its own online website that will showcase the operations of the Machine and Lathe Shop, its facilities, preliminary pricing, and other information that is contained in the Company’s sales brochures. Finally, the Company will maintain a modest level of print and media advertising within local trade publications.

5.3 Pricing

In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.

6.0 Organizational Plan and Personnel Summary

6.1 Corporate Organization

6.2 Organizational Budget

6.3 Management Biographies

In this section of the business plan, you should write a two to four paragraph biography about your work experience, your education, and your skill set. For each owner or key employee, you should provide a brief biography in this section.

7.0 Financial Plan

7.1 Underlying Assumptions

  • • Machine and Lathe Shop, Inc. will have an annual revenue growth rate of 16% per year.

  • • The Owner will acquire $175,000 of debt funds to develop the business.

  • • The loan will have a 10 year term with a 9% interest rate.

7.2 Sensitivity Analysis

In the event of an economic downturn, the business may have a decline in its revenues. Manufactured and machined products have declines in demand during economic recessions, and as such, Machine and Lathe Shop, Inc. may see lower revenues during downward business cycles. However, the high margins generated by the business will ensure that the business can remain profitable and cash flow positive despite moderate declines in revenue.

7.3 Source of Funds

7.4 General Assumptions

7.5 Profit and Loss Statements 

7.6 Cash Flow Analysis


7.7 Balance Sheet


7.8 General Assumptions

7.9 Business Ratios

Expanded Profit and Loss Statements

Expanded Cash Flow Analysis