I closed my shop this week. (A Long Read)

[Leehound]

After building Investment Casting Tooling for the last 33 years, I decided to close my shop down and start the liquidation process.

My History:

My father started SJC Tool & Engineering, Inc. in 1984, located in Florida. I joined him in 1989 (I was 29), the only experience I had was a few Vo-Tech classes. The first year was rough, Tool & Die is hard!   Standing in front of a Bridgeport with a Troyke Cross-Slide Rotary Table all day is not that fun. In 1991 I talked my Dad into buying our first CNC, Wow, that change everything. I knew then that I could stick with this trade.

In 1992 the business had grown to 6 people. That year my Dad posed the question, would I like to move to Tennessee with the business? Less crowded, lower taxes, beautiful rural area was the sales pitch. So that year 5 families moved en masse to Tennessee. All of us worked out of a 2500 sq-ft building behind my Dad's house. In a couple of years 3 of those families moved back to Florida. I guess Tennessee wasn't their cup of tea. Actually I didn't like living here either. My wife and I had made up our minds to move back also. But after telling my Dad our decision, I find out that my cousin is moving from Michigan to join the business and he knows absolutely nothing. After some pleading I agree to stay with the business and help train my cousin.

1998 we are a shop of 4 with a girl in the office. My Dad was grooming me to eventually take over. Little did I know what that really meant, because the next year Dad had his first heart attack. So, I have to take over running the shop. I really didn't want to do it, I was perfectly happy being an employee. By 2000 I took total control of the business, I bought my Dad's  property with the shop. We agreed on a 10 year payment plan to buy him out of the business.

Fast forward to 2016. The business had shrunk to just 2 people, me and my cousin. Obama was president and business had really slowed. I was forced to layoff him off. Fortunately he was able to find  a new job. Now it was just me in a shop by myself. I wasn't sure how one guy was going to build 20 thousand dollar molds by himself. But I soon found out that I could and the profits were bigger and the quality was the best that ever came out of the shop. Ok Ok, I'm pulling a Yank and doing a little bragging. But it is true, I do work best by myself. 

By 2020, I made the decision to be a dedicated shop to just one customer. That arrangement has worked out well. They keep me busy and never complain about my prices and they get a shop who is at their beckon call and will do whatever they need. Last year was my best year profit wise. This year, business is starting to slow. I am not able to stay busy. FJB

At 62, I had an epiphany this week. I have a building full of equipment that I need to get rid of while I am still healthy. I don't want to leave that burden to my children. So I am selling it all. And I am officially retired. I still will do some Solid Modeling work for my customer, But it will probably be sporadic. Thankfully I was able to put enough away to hold off collecting SS until I turn 65.

Now I am faced with, How do I sell shop full of equipment? I haven't figured that out yet. If you have made it this far in my story and didn't do TLDR, Thanks for indulging me.

[Incogneeto]

After building Investment Casting Tooling for the last 33 years, I decided to close my shop down and start the liquidation process.

My History:

My father started SJC Tool & Engineering, Inc. in 1984, located in Florida. I joined him in 1989 (I was 29), the only experience I had was a few Vo-Tech classes. The first year was rough, Tool & Die is hard!   Standing in front of a Bridgeport with a Troyke Cross-Slide Rotary Table all day is not that fun. In 1991 I talked my Dad into buying our first CNC, Wow, that change everything. I knew then that I could stick with this trade.

In 1992 the business had grown to 6 people. That year my Dad posed the question, would I like to move to Tennessee with the business? Less crowded, lower taxes, beautiful rural area was the sales pitch. So that year 5 families moved en masse to Tennessee. All of us worked out of a 2500 sq-ft building behind my Dad's house. In a couple of years 3 of those families moved back to Florida. I guess Tennessee wasn't their cup of tea. Actually I didn't like living here either. My wife and I had made up our minds to move back also. But after telling my Dad our decision, I find out that my cousin is moving from Michigan to join the business and he knows absolutely nothing. After some pleading I agree to stay with the business and help train my cousin.

1998 we are a shop of 4 with a girl in the office. My Dad was grooming me to eventually take over. Little did I know what that really meant, because the next year Dad had his first heart attack. So, I have to take over running the shop. I really didn't want to do it, I was perfectly happy being an employee. By 2000 I took total control of the business, I bought my Dad's  property with the shop. We agreed on a 10 year payment plan to buy him out of the business.

Fast forward to 2016. The business had shrunk to just 2 people, me and my cousin. Obama was president and business had really slowed. I was forced to layoff him off. Fortunately he was able to find  a new job. Now it was just me in a shop by myself. I wasn't sure how one guy was going to build 20 thousand dollar molds by himself. But I soon found out that I could and the profits were bigger and the quality was the best that ever came out of the shop. Ok Ok, I'm pulling a Yank and doing a little bragging. But it is true, I do work best by myself. 

By 2020, I made the decision to be a dedicated shop to just one customer. That arrangement has worked out well. They keep me busy and never complain about my prices and they get a shop who is at their beckon call and will do whatever they need. Last year was my best year profit wise. This year, business is starting to slow. I am not able to stay busy. FJB

At 62, I had an epiphany this week. I have a building full of equipment that I need to get rid of while I am still healthy. I don't want to leave that burden to my children. So I am selling it all. And I am officially retired. I still will do some Solid Modeling work for my customer, But it will probably be sporadic. Thankfully I was able to put enough away to hold off collecting SS until I turn 65.

Now I am faced with, How do I sell shop full of equipment? I haven't figured that out yet. If you have made it this far in my story and didn't do TLDR, Thanks for indulging me.

Just a different step to a better life.

Look up not down.

Put things together and get the best price. Let it go.

Breathe, then move forward.

Post it here. we are always looking.


Breathe.

Prayers. you will be surprised.

P.S. TLDR

[CNCAppsJames]

If you've got any 5-Axis equipment, @MIL-TFP-41 's shop is always in the market too.

[Leehound]

If you've got any 5-Axis equipment, @MIL-TFP-41 's shop is always in the market too.

I am not that sophisticated. My machines are the basic toolroom mills. I am old school, no tool changer on my machines. You production guys and your fancy machines. 

[mega]

I am not that sophisticated. My machines are the basic toolroom mills. I am old school, no tool changer on my machines. You production guys and your fancy machines. 

We could probably come up with a Forum where you could list your machines for sale, I could spread the word a bit through social media too, what do you think?

You could probably just list them the usual places like ebay and wut not, people buy machines there

[Brian]

At 62, I had an epiphany this week. I have a building full of equipment that I need to get rid of while I am still healthy. I don't want to leave that burden to my children.

Thanks for the great story! I hope you're looking forward to "what's next", whatever that may be....

End of last year a good friend/mentor passed away at 65 after a stroke, and unfortunately, his poor wife had to deal with a shop full of equipment and closing down a business she didn't know too much about. It's great you got to do this on your terms!

Best, Brian

[Leehound]

Thanks for the great story! I hope you're looking forward to "what's next", whatever that may be....

End of last year a good friend/mentor passed away at 65 after a stroke, and unfortunately, his poor wife had to deal with a shop full of equipment and closing down a business she didn't know too much about. It's great you got to do this on your terms!

Best, Brian

Exactly the scenario I don't want to happen.

[JParis]

There are actually Congratulations in order...you're getting the chance to do this on your terms, you've financially planned, the road in front of you is open and free....

You might consider a Machine liquidation company. Many will buy the machines then sell them, some will list and facilitate the machine purchases.

As I was reading, and the way you describe the current business situation, I don't that lends itself to selling the business, as it sounds there really isn't much or any business on the books. That leaves you with the hard company assets.

I would get with a couple liquidators and see where you can get the best situation & deal for you.

Good Luck and Congrats on moving into the next part of your life 

[Del.]

Best wishes to you Leehound.

[beej]

I hope things go well for ya, Leehound. We're all pulling for ya.

[Incogneeto]

Slap some pics up here.

we are always looking for Q.C. Stuff.

Gage pins and such.  

[mega]

I feel like there is always a lot of demand for machine shop tools

[Smit]

Good luck Leehound. It sounds like you are in a pretty good place now. Enjoy your retirement.

[Brian]

Now I am faced with, How do I sell shop full of equipment? I haven't figured that out yet.

Hi Leehound:

I don't know all of the particulars, but my friend's wife sold much of the equipment to a friend + his son who have a shop half-way across the country. They had known each other for years, and my friend was something of a mentor to this fellow's son, too-from what I can see, that personal connection made all of the difference, for both parties. A "win-win" as near as I can tell.

I don't know what the $$ deal was, but I *do* know that his wife said that they had to take/move/otherwise dispose of *ALL* of it-no cherry picking. Having said that, it still took about 4-5 months in total till the shop was emptied out. Lot of personal effects there, too.

Do you know anybody who might be able to do a deal kinda like this? Former employee, customer, vendor perhaps?

[neurosis]

Would the company that you did the work for be interested in buying you out?  Seems like that would be a good move for them