Milltronics' Machine Shop Insights

8 Tips for Would-be Shop Owners

Lindstrom Machining was founded in 1950. Growing up, I watched my grandfather and then my father run the company. I spent my career working first in our family business and later at other precision machine shops before returning as co-owner and Vice President in 2018.

While I had years of experience as a machinist and manager, becoming a business owner taught me valuable lessons that only come with running a company. Here are eight tips I’d share with anyone considering opening or buying a machine shop.

by Todd Lindstrom, Vice President & Co-owner, Lindstrom Machining

Todd Lindstrom, left, working with his team to outline a customer’s machined part

1. Understand the Responsibility

Managing a shop and owning a shop are two very different things.

As the owner, every decision ultimately rests with you. Beyond producing quality work, you’re responsible for keeping the business healthy, supporting your employees, and creating opportunities for future growth.

Owning a business offers freedom, but it also demands accountability, commitment, and an entrepreneurial mindset.

2. Do the Math

Profitability isn’t luck. It’s a formula.

Successful shop owners understand their expenses, machine rates, capacity, labor utilization, and billable hours. Every one of these numbers contributes to whether the business succeeds or struggles.

Know your numbers from the beginning, monitor them consistently, and adjust as your business and market conditions evolve.

3. Get on the Same Page

Many machine shops are started by friends, family members, or longtime colleagues.

A strong personal relationship doesn’t automatically translate into a successful business partnership. Before launching together, each owner should develop a two-year, five-year, and ten-year vision for the business.

Discuss those goals openly and resolve any major differences before investing together.

4. Surround Yourself with Good People

No shop owner succeeds alone.

Build a team you trust, both inside and outside your business. Reliable employees allow you to spend time improving the company instead of simply working in it.

For me, my wife has also been an invaluable resource. Her own experience as a business owner has helped guide many important decisions.

"If all of your time is spent working in the business, you're not working on the business."

5. Pick Equipment That Supports Your Vision

At Lindstrom Machining, speed and efficiency are central to how we serve our customers.

That means investing in reliable machines that are easy to program, simple to train new employees on, and dependable every day. Based on my previous experience, I knew Milltronics machines fit those requirements, and that decision has played a major role in our company’s growth.

6. Build Partnerships

Every successful business depends on strong partnerships.

Choose equipment suppliers that provide responsive service when you need support. Build collaborative relationships with customers who value long-term success. Even maintaining positive relationships with neighboring machine shops can create opportunities that benefit everyone.

7. Take on More Than You Can Handle

One lesson that has stayed with me throughout my career came from a previous employer.

The company intentionally accepted roughly 20% more work than it could produce internally. Trusted partner shops handled the overflow.

This strategy kept machines running at full capacity while creating flexibility during slower periods, allowing work to be brought back in-house when needed.

8. Diversify Your Customer Base

Many shops begin with one or two major customers.

That’s perfectly normal early on, but it shouldn’t remain the long-term strategy.

A diverse customer base protects your business from unexpected changes. If one customer reduces orders or brings work in-house, your company is better positioned to remain profitable and continue growing.

Being a shop owner presents new challenges every day, but it’s also incredibly rewarding.

Creating a clear roadmap and learning from people who’ve already walked the path can help you avoid costly mistakes and build a stronger business.

If you’re considering shop ownership and would like to discuss the journey, I’d be happy to share my experiences. You can reach me at [email protected].

Todd Lindstrom is Vice President and co-owner of Lindstrom Machining. His career in the industry spans over four decades working as a machinist, programmer, manager and shop owner.