Starting Business FAQ
Quick Definition
This starting business FAQ answers the most common questions from fabricators and homeowners.
Starting a countertop fabrication business requires a combination of skilled labor, equipment investment, physical shop space, and business infrastructure. The US countertop fabrication market includes roughly 8,000-10,000 active shops serving a $22.1 billion industry. New shops can enter the market with $150,000-$500,000 in startup capital, though the exact number depends on whether you buy new or used equipment, lease or purchase your shop space, and how quickly you plan to scale.
TL;DR
- Startup costs range from $150,000-$500,000 for equipment, shop, and working capital
- The US has 8,000-10,000 fabrication shops in a $22.1B market - room for well-run new entrants
- Equipment is the largest cost - a CNC bridge saw alone runs $100K-$500K
- You need 3,000-5,000 sqft minimum for a functional shop
- Most new shops reach profitability within 12-24 months with consistent volume
- Licensing and insurance requirements vary by state - research yours before signing a lease
- A realistic first-year target is 10-25 jobs per month building to 30+ in year two
- Fabrication software from day one prevents expensive mistakes during the learning curve
Financial Planning
How much does it cost to start a fabrication shop?
A realistic startup budget breakdown:
| Category | Budget Range | Notes |
|---|---|---|
| CNC bridge saw | $100,000-$300,000 | Single largest expense; used machines save 40-60% |
| Laser templating system | $15,000-$35,000 | Critical for accuracy; don't skip this |
| Edge polishing equipment | $10,000-$40,000 | Hand tools to semi-automated |
| Material handling (A-frames, vacuum lifter) | $10,000-$30,000 | Safety requirement, not optional |
| Water management system | $5,000-$20,000 | Required for wet cutting |
| Hand tools and consumables | $5,000-$10,000 | Blades, pads, epoxy, etc. |
| Shop build-out | $20,000-$80,000 | Electrical, plumbing, concrete, ventilation |
| First slab inventory | $15,000-$50,000 | 15-30 slabs to start |
| Vehicle (installation truck) | $15,000-$40,000 | Flatbed or A-frame equipped |
| Business formation and licensing | $2,000-$8,000 | LLC, insurance, permits |
| Working capital (3-6 months) | $30,000-$80,000 | Covers payroll, rent, and overhead before revenue stabilizes |
| Software and technology | $2,000-$5,000/year | Fabrication management, accounting, etc. |
| Marketing (initial) | $5,000-$15,000 | Website, Google Business, initial advertising |
| Total | $234,000-$713,000 | |
| Realistic minimum | $150,000-$250,000 | Used equipment, lean startup approach |
What revenue can a new fabrication shop expect?
Revenue projections for a new shop's first three years:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Jobs per month | 10-20 | 20-35 | 30-50 |
| Average job revenue | $3,000-$5,000 | $3,500-$5,500 | $4,000-$6,000 |
| Monthly revenue | $30,000-$100,000 | $70,000-$192,500 | $120,000-$300,000 |
| Annual revenue | $360,000-$1,200,000 | $840,000-$2,310,000 | $1,440,000-$3,600,000 |
| Gross margin | 35-45% | 40-50% | 42-52% |
| Net margin (after overhead) | -5% to 10% | 8-15% | 12-20% |
Year 1 is typically break-even or slightly negative as you build volume and work through the learning curve. Profitability improves as volume increases and per-job efficiency gains kick in.
How do I finance a fabrication shop?
Common funding sources for new fabrication businesses:
SBA loans - The most common route. SBA 7(a) loans cover equipment, working capital, and real estate. Typical terms: 10-25% down, 5-10 year terms, 7-10% interest. Requires a business plan and personal guarantee.
Equipment financing - Available through equipment manufacturers and specialty lenders. Covers the CNC saw and templating equipment specifically. Typical terms: 10-20% down, 5-7 year terms.
Personal savings / home equity - Many shop owners fund the startup with personal savings, a home equity line, or a combination. Higher risk but no loan approval process.
Partner investment - Bringing in a partner (active or silent) to share the capital requirement. Common when the fabrication-skilled founder lacks capital and the capital partner lacks industry knowledge.
Lease-to-own equipment - Some dealers offer lease-to-own programs that reduce upfront cash needs. Monthly payments are higher long-term but cash flow is more manageable.
What ongoing costs should I plan for?
Monthly overhead for a small-to-mid-size shop (15-30 jobs/month):
| Expense Category | Monthly Cost |
|---|---|
| Rent (3,000-5,000 sqft shop) | $2,000-$6,000 |
| Utilities (power, water, gas) | $800-$2,000 |
| Payroll (3-6 employees) | $15,000-$40,000 |
| Insurance (GL, workers comp, vehicle) | $1,000-$3,000 |
| Material inventory replenishment | Variable (40-50% of revenue) |
| Equipment maintenance | $500-$1,500 |
| Consumables (blades, pads, epoxy) | $800-$2,500 |
| Software (fabrication, accounting) | $300-$700 |
| Marketing | $500-$2,000 |
| Vehicle fuel and maintenance | $500-$1,500 |
| Total fixed overhead | $21,400-$59,200 |
Operations Setup
What licenses and permits do I need?
Licensing requirements vary significantly by state and municipality, but common requirements include:
- Business license - Required in virtually all jurisdictions
- Contractor's license - Required in some states for installation work (California, Arizona, Nevada, and others require specialty contractor licensing)
- Building permits - For shop build-out and modifications
- Environmental permits - For water discharge and waste disposal (stone slurry)
- OSHA compliance - Silica exposure monitoring and control plan
- Sales tax permit - Required in most states
- Employer identification - Federal EIN and state employer registrations
- Zoning approval - Verify your shop location is zoned for industrial/manufacturing use
Check with your state's contractor licensing board and local planning/zoning department before signing a lease.
How much shop space do I need?
Shop size requirements by operation scale:
| Shop Size | Square Footage | Capacity | Layout |
|---|---|---|---|
| Startup | 3,000-5,000 sqft | 10-20 jobs/month | 1 CNC machine, compact storage, shared workspace |
| Growing | 5,000-10,000 sqft | 20-40 jobs/month | 2 CNC machines, dedicated areas, more storage |
| Established | 10,000-20,000 sqft | 40-80 jobs/month | Multiple machines, dedicated polishing, large inventory |
| High-volume | 20,000+ sqft | 80+ jobs/month | Full production line, automated systems, office space |
Key layout requirements:
- Overhead crane or gantry system clearance (16+ foot ceilings preferred)
- Level concrete floor capable of supporting CNC equipment and loaded A-frames
- Adequate electrical supply (most CNC machines need 3-phase 480V)
- Water supply and drainage for wet cutting
- Ventilation for dust control
- Loading dock or grade-level access for slab deliveries
- Separate office/customer area away from production noise and dust
What employees do I need to hire first?
Hiring sequence for a new fabrication shop:
Stage 1 (startup - you + 1-2 people):
- Lead fabricator (may be you) - CNC operation, cutting, polishing
- Installer - Field work, template, install
- You handle sales, quoting, scheduling, and administration
Stage 2 (growing - 4-6 people):
- Add a dedicated templater
- Add a second installer
- Add shop helper (material handling, cleanup, prep)
- Consider part-time office/admin support
Stage 3 (established - 7-12 people):
- Dedicated sales/estimating person
- Multiple fabricators
- Multiple installation crews
- Office manager
- Shop foreman
The hardest positions to fill in fabrication are experienced CNC operators and skilled installers. Plan for 2-4 weeks of training even for candidates with related experience.
Building Your Customer Base
Where do fabrication shops get their jobs?
Revenue sources for a typical fabrication shop, roughly in order of importance:
- Contractor and builder referrals (30-40% of revenue) - Relationships with kitchen remodelers, general contractors, and home builders
- Kitchen and bath dealers (20-30%) - Partnerships with K&B showrooms that sell countertops but don't fabricate
- Direct homeowner sales (15-25%) - Walk-in customers, website inquiries, Google searches
- Interior designers (5-15%) - Designer referrals on high-end residential and commercial
- Property management / commercial (5-10%) - Multi-unit renovations, commercial projects
Building the contractor and dealer pipeline is the most important first-year marketing activity. These relationships generate recurring work without constant customer acquisition costs.
How do I price my countertop jobs?
Pricing methodology for a fabrication shop:
Cost-plus pricing:
- Material cost (slab price + waste factor)
- Labor cost (templating + fabrication + installation hours x labor rate)
- Overhead allocation (shop rent, insurance, equipment depreciation per job)
- Consumables (blades, epoxy, sealant per job)
- Markup (typically 35-50% on total cost)
Market-rate pricing:
- Check competitor pricing in your area (call for quotes, check websites)
- Price per square foot by material is the most common format
- Typical installed prices: granite $40-$100/sqft, quartz $55-$120/sqft, marble $50-$200/sqft
Common pricing mistakes for new shops:
- Underpricing to win jobs (burns cash, trains customers to expect low prices)
- Not accounting for waste factor (10-15% material beyond measured dimensions)
- Forgetting overhead costs in per-job pricing
- Not charging enough for complex work (waterfall edges, bookmatch, tight spaces)
Quoting software helps new shops price accurately from day one. SlabWise's Quick Quote generates detailed quotes in about 3 minutes (vs. 20 minutes manually), ensuring you account for material, labor, and complexity on every job.
Technology and Software
What software does a new fabrication shop need?
Essential software stack for a new shop:
| Software Category | Purpose | Monthly Cost |
|---|---|---|
| Fabrication management | Job tracking, scheduling, production | $150-$350/month |
| Accounting (QuickBooks, etc.) | Invoicing, bookkeeping, payroll | $30-$100/month |
| Templating software | DXF file processing from field templates | Often included with templating hardware |
| CNC control software | Machine programming and operation | Often included with CNC equipment |
| Google Business Profile | Local search presence | Free |
| Website | Online presence and lead generation | $50-$200/month |
Should I invest in fabrication software from day one?
Yes, and here's why: the first year of a fabrication business is when mistakes are most expensive and most common. You're learning processes, training staff, and building systems from scratch. Software provides guardrails:
- Template verification catches errors that inexperienced fabricators miss - preventing $1,500-$4,000 remakes during the learning curve
- Quoting tools prevent underpricing that new shops are prone to - ensuring you don't win jobs at a loss
- Production scheduling keeps your limited capacity organized - missing install dates kills contractor relationships
- Customer communication portals handle the 8-15 status calls per day that would otherwise consume your time
- Slab nesting saves 10-15% material - critical when cash is tight and every slab dollar matters
At $199/month for SlabWise's Standard plan, the software costs less than a single prevented remake. Most new shops report that fabrication software pays for itself within the first month of use.
Frequently Asked Questions
Can I start a fabrication shop with no experience?
It's possible but risky. Most successful shop owners have at least 3-5 years of fabrication experience before starting their own business. If you lack fabrication experience, your best options are: partner with an experienced fabricator, hire experienced staff from day one, or work in an existing shop for 1-2 years to learn before launching. The learning curve on CNC operation, templating, and installation is too steep (and mistakes too costly) to learn entirely on the job as an owner.
How long until a new fabrication shop is profitable?
Most new shops reach monthly break-even at 15-20 jobs per month, which typically takes 6-18 months to achieve. Full profitability (covering all overhead plus owner compensation) usually takes 12-24 months. Shops that start with strong contractor relationships and steady referral sources reach profitability faster than those building from scratch.
Do I need experience with CNC machines?
CNC experience is very helpful but not strictly required if you hire experienced operators. However, you need to understand the basics: what the machine can and can't do, maintenance requirements, and how template data flows to cut files. Equipment manufacturers typically include 3-5 days of operator training with purchase. Budget for additional training time beyond this.
What insurance does a fabrication shop need?
Essential coverage: general liability ($1M-$2M), workers' compensation (required in most states for employees), commercial auto (for installation vehicles), property insurance (covering equipment and inventory), and inland marine (covering slabs in transit). Total annual insurance cost: $8,000-$25,000 depending on headcount, vehicle count, and coverage limits. Many contractors and builders require proof of insurance before awarding work.
Should I buy new or used equipment to start?
Used equipment can save 40-60% on the largest expenses (CNC saw and templating system), making it the smarter choice for most startups. The tradeoff is higher maintenance risk and potentially limited warranty coverage. Best approach: buy from reputable dealers who inspect and certify used equipment, get a short-term warranty, and budget for higher-than-normal maintenance in year one.
How do I find my first customers?
Start before your shop is fully operational: visit every kitchen remodeler, general contractor, and K&B dealer within a 30-mile radius. Introduce yourself, leave a price sheet, and offer to do a sample project at a competitive (but not below-cost) price. Register your Google Business Profile immediately. Join your local Home Builders Association and NKBA chapter. Your first 10 customers will almost certainly come from contractor relationships, not from advertising.
What is the biggest mistake new fabrication shops make?
Underpricing. New shop owners often set prices 15-25% below market to win early jobs, then discover they can't cover overhead at those prices. The second biggest mistake is skipping template verification - remakes during the first year can cost more than several months of revenue. Quoting software and template verification prevent both of these problems.
Can I run a fabrication shop out of my home?
Unlikely for a full fabrication operation. CNC equipment requires industrial electrical (3-phase 480V), water management systems, heavy-duty concrete floors, and generates significant noise and dust. Most residential zoning doesn't permit manufacturing operations. Some fabricators run installation-only businesses from home (subcontracting fabrication) - this has much lower startup costs but also lower margins.
How many people does it take to run a small shop?
A minimal operation can run with 2-3 people: one lead fabricator/CNC operator, one installer/templater, and the owner handling sales, quoting, and administration. This staffing level supports approximately 10-15 jobs per month. To grow beyond 20 jobs per month, you'll typically need 4-6 people with more specialized roles.
What is the failure rate for new fabrication shops?
Industry-specific data is limited, but general small business statistics suggest that about 20% of new businesses fail within the first year and about 50% within five years. Fabrication shops with experienced owners, adequate capital, and strong contractor relationships have significantly better odds. Undercapitalization and inexperience are the two most common reasons fabrication startups fail.
Start Smart With the Right Software
The first year of a fabrication business sets the foundation for everything that follows. Mistakes made early - underpriced quotes, template errors, wasted material - are harder to recover from when cash is tight and your reputation is still being built.
SlabWise gives new shops professional-grade tools from day one: Quick Quote for accurate pricing in 3 minutes, AI template verification to prevent costly remakes, AI slab nesting for 10-15% better material yield, and a customer portal that handles status updates so you can focus on production.
Start your 14-day free trial - $199/month is less than the cost of one remake. Build your business on accurate quotes, verified templates, and optimized material usage from the start.
Sources
- US Census Bureau - County Business Patterns: Stone cutting and fabrication establishments
- IBISWorld - Stone Countertop Manufacturing Industry Report (2025)
- SBA - Small Business Startup Cost Guides and SBA 7(a) Loan Data
- Natural Stone Institute - Fabrication shop startup best practices
- ISFA - Industry benchmarking data for countertop fabrication businesses
- Bureau of Labor Statistics - Employment and wage data for stone cutting occupations
- NKBA - Kitchen and bath market size and trend data
- Industry fabricator surveys - Startup cost and revenue benchmarks (2024-2026)
Internal Links
- Business Plan Guide - Full template for a fabrication business plan
- Equipment FAQ - Detailed equipment buying guide
- Pricing Strategy Guide - How to price countertop jobs profitably
- Marketing FAQ - Building your customer pipeline
- Contractor Relationships FAQ - Winning and keeping contractor accounts
- New Shop Setup Checklist - Step-by-step startup checklist
- Startup Fabricator Case Study - Real first-year results