In this episode of the Machine Shop MBA series, we go beyond vision boards and get into the meat and potatoes of launching your shop legally—with the right entity type and structure to support your short and long-term goals. Whether you’re looking to stay solo, bring on partners, or position for future investment or acquisition, your business formation choice can be the foundation—or the friction—of your growth. 

In this episode, the team dives deep into the critical, yet often overlooked, process of legally forming a manufacturing business. The hosts, alongside experts Nick Vargosko and Brad Botcher from CliftonLarsonAllen, break down the most important steps in choosing the right legal entity, from sole proprietorship to S-corporation and LLCs. They also touch on how these decisions will impact your long-term goals, including potential exits and tax benefits.

Why does the structure of your business matter? It’s all about protecting your personal assets, optimizing your tax strategy, and setting your business up for future growth or eventual sale. The team discusses real-world examples and offers insights into what business owners often miss when it comes to entity selection. With the right foundation, your machine shop can thrive, but getting it wrong early could mean expensive and painful mistakes down the road.

Tune in as we walk you through the legal nuts and bolts of starting your shop, with expert advice on how to build a business that can scale and survive. If you're planning on making chips, don't miss this critical episode that could shape the future of your manufacturing business.

• (0:00) Introduction to Episode 2 of the Machine Shop MBA series
• (1:12) Learn how you can grow your top and bottom-line with CLA
• (3:50) Introducing Nick Vargosko and Brad Boettcher
• (5:39) The importance of long-term thinking in business formation
• (10:02) Overview of what a Sole Proprietorship is
• (12:02) Breaking down LLCs and the different election options
• (15:30) LLC vs Sole Proprietorship: Which one should you choose?
• (16:35) Why you need to complete the Top Shops survey
• (18:14) What to do if you chose the wrong structure
• (19:07) The difference between S-Corps and C-Corps
• (28:02) When to choose a partnership (and why it might offer flexibility)
• (29:47) What do you need to do to change your structure? 
• (31:32) Horror stories when things have gone wrong
• (38:01) Why you need to check out Buy the Numbers

• CliftonLarsonAllen (CLA)
• Take The Modern Machine Shop Top Shops Survey
• Connect with Nick Vargosko on LinkedIn
• Connect with Brad Boettcher on LinkedIn

• www.MakingChips.com
• On Facebook
• On LinkedIn
• On Instagram
• On Twitter
• On YouTube

In this episode of MakingChips, we dive into the entrepreneurial mindset, drawing inspiration from three of the most influential figures in modern business: Titan Gilroy, Elon Musk, and Steve Jobs. 

Through clips from these legendary leaders, we explore the grit, vision, and resilience required to launch and grow a business in the challenging world of manufacturing. As we share our experiences and reflect on the realities of entrepreneurship, you’ll gain a firsthand look at the mindset necessary to succeed—if you dare to take the plunge. 

This episode is essential for anyone considering starting their own shop or those who want to understand the raw, unfiltered truth behind the entrepreneurial journey.

The discussion isn’t just motivational; it’s practical, offering insights into what it takes to thrive in an industry where failure is common, but resilience and a solid vision can make all the difference. 

From Titan’s relentless drive to Elon Musk’s brutal honesty about the pain of entrepreneurship, and Jobs’ revolutionary approach to business, this episode covers the essentials that go beyond strategy—delving into the mental toughness and perseverance needed to push through the toughest challenges.

You’ll also hear personal stories from the hosts about their own journeys, highlighting the importance of a strong support system and the willingness to ask difficult questions. Whether you're just starting out or already running a business, this episode offers invaluable lessons from some of the brightest minds in entrepreneurship.

• (0:00) The importance of mindset and affirmations in entrepreneurship
• (0:44) Take the Modern Machine Shops Top Shop Survey
• (3:57) The harsh realities of starting a business and why it’s not for everyone
• (4:49) What’s the mindset of an entrepreneur, and why is it critical?
• (7:55) Grit: Titan Gilroy’s approach to resilience and vision in business
• (10:34) Being an entrepreneur means solving the hardest problems in your business
• (14:14) Entrepreneurs need to embrace humility and be willing to ask for help
• (15:40) The importance of building a team around you and having a support network
• (17:45) Grow your top and bottom line with CliftonLarsonAllen (CLA)
• (18:25) Sometimes a business needs a purpose that’s beyond you
• (20:19) Elon Musk’s brutally honest perspective on the hardships of starting a company
• (28:23) Steve Jobs’ philosophy on business and challenging the status quo
• (31:51) The power of differentiation—what makes you disruptive? 
• (34:41) What can you learn that’s critical to the mindset of an entrepreneur? 
• (37:03) Take the Top Shops Survey and allow it to change your mindset

• Take The Modern Machine Shop Top Shops Survey
• Grow your top and bottom line with CliftonLarsonAllen (CLA) 
• Titan Gilroy
• Elon Musk Clip
• Steve Jobs Clip

• www.MakingChips.com
• On Facebook
• On LinkedIn
• On Instagram
• On Twitter
• On YouTube

What if you could measure your shop's success against the industry’s best—and discover exactly where you can improve? In this episode, we’re launching a groundbreaking new series with Modern Machine Shop to help you do just that. We’re joined by Brent Donaldson, who walks us through the powerful Top Shops program—a game-changing benchmarking tool that reveals everything from machine utilization to employee engagement.

The Top Shops survey isn’t just another tool; it’s a blueprint for success. By comparing your shop to the industry’s top performers, you’ll uncover where you’re excelling and, just as importantly, where you can level up. The data is real, actionable, and tailored to your shop’s unique performance.

This series will equip you with the insights and strategies needed to push your shop to the top. We dive deep into the key performance indicators (KPIs) that distinguish high-performing shops from the rest. Whether it’s tracking financial metrics like profit margins and revenue per employee, or operational benchmarks such as first-pass quality yield and machine uptime, the Top Shops program provides a comprehensive look at what it really takes to run a successful, high-performing shop.

We’ve seen firsthand how filling out the survey has led to tangible improvements in our own businesses. Now, we’re sharing those lessons with you. In each episode, we’ll break down KPIs, share practical strategies, and provide expert advice that you can apply to your own shop right away.

If you’re ready to optimize your operations, build a winning team, and increase your profitability, this series is for you. Don’t miss out—tune in and start applying these proven strategies today. The road to becoming a top shop starts here!

• (0:15) Take the Modern Machine Shops Top Shop Survey
• (1:46) The case for non-standard education 
• (4:16) Introducing Brent Donaldson from Modern Machine Shop
• (5:00) The importance of benchmarking your shop
• (9:22) The origin of the Top Shops program (and how it works)
• (16:10) KPIs that top shops track and how they set themselves apart
• (23:04) Why you need to invest in ProShop ERP
• (24:41) The key metrics that define a top shop
• (33:37) The importance of having a leadership team to track KPIs
• (36:35) What’s next in the Machine Shop MBA series? 
• (41:41) The Top Shops conference at the NASCAR Hall of Fame
• (46:06) Make sure you check out the Lights Out podcast!

• Take The Modern Machine Shop Top Shops Survey

• www.MakingChips.com
• On Facebook
• On LinkedIn
• On Instagram
• On Twitter
• On YouTube

Ever wonder why some machine shops experience rapid, exponential growth while others hit a ceiling? 

In this episode of MakingChips, we dive into the strategies behind this growth with Kirk Phelps and Mike Fritz—two seasoned veterans in the machine shop industry who have cracked the code on scaling businesses. With a focus on mergers and acquisitions (M&A), they’ve successfully expanded their operations, acquiring multiple shops and driving growth in ways that many shop owners overlook.

Kirk and Mike share their proven approach to growth, where strategic acquisitions are just the beginning. They dive into the importance of cultivating a growth culture that influences every facet of the business—sales, marketing, leadership, and operations. This mindset shift is crucial for shops looking to not only increase revenue but also improve efficiency and team empowerment.

What makes this episode even more exciting is that Kirk and Mike are bringing their expertise to the MakingChips family! Their new podcast, Machine Shop Growth, is now part of our lineup. Tune in to get actionable insights on how to scale your shop, improve leadership, and make smarter decisions in sales and marketing.

If you’re ready to unlock growth in your machine shop, this episode—and their podcast—will provide the tools and strategies you need to elevate your business to the next level. Don't miss out!

• (0:00) Introduction to the episode and guest introductions
• (0:30) Why you need to invest in ProShop ERP
• (2:43) Introducing Mike Fritz, Kirk Phelps, and Machine Shop Growth
• (7:40) The importance of understanding your unique selling proposition (USP)
• (9:44) The two-sided approach of the Machine Shop Growth podcast
• (12:00) The three legs to the stool of growth
• (13:50) Discussing dormant customers and how to win back business
• (17:27) The value of quarterly customer success meetings and the difference it makes
• (19:17) Content marketing strategies that resonate with customers
• (21:34) Why you need to check out the MakingSparks podcast
• (27:48) Building a growth culture within your business
• (29:43) The importance of vertical integration and pricing, quality, and lead times
• (41:00) The synergy of podcast collaborations within the industry
• (42:53) Why you should complete the Modern Machine Shop Top Shops Survey

• Connect with Mike Fritz
• Connect with Kirk Phelps
• Machine Shop Growth Podcast
• Never Split the Difference
• Mike Fritz on Machine Shop Mastery (Part 1 and Part 2)
• Kirk Phelps on Machine Shop Mastery 
• Mike Fritz on Buy the Numbers
• The Modern Machine Shop Top Shops Survey

• www.MakingChips.com
• On Facebook
• On LinkedIn
• On Instagram
• On Twitter
• On YouTube

In this episode of MakingChips, we dive into the world of artificial intelligence (AI) and how it is revolutionizing the manufacturing industry. Special guest Bryce Barnes, a manufacturing AI consultant, shares his expertise and insights on how AI is transforming both the shop floor and business operations. 

As a former mechanical engineer turned AI specialist, Bryce explains how manufacturers can leverage technology, such as machine learning and AI-driven CAM solutions, to increase efficiency and reduce costs. The conversation uncovers practical, real-world applications of AI, from CNC programming assistance to streamlining back-office tasks like quoting and project management.

Bryce also brings his unique perspective as someone who grew up in manufacturing, now guiding companies through the complexities of implementing AI in a practical way.

This episode offers valuable insights into how AI can help manufacturers, especially smaller shops, optimize their processes. Bryce discusses the potential of AI to assist in CNC programming, improve quality control, and enhance customer relationship management. This is a must-listen for any manufacturing leader who is looking to understand how AI can be applied practically to save time and increase profitability.

• (0:25) Achieve on-time delivery with ProShop ERP
• (1:58) Overview of the MFG Meeting and Bryce’s keynote
• (4:48) Bryce's transition from mechanical engineering to AI in manufacturing
• (8:38) How AI is already being used in manufacturing without shop owners realizing it
• (11:30) How AI can assist with CNC programming and upskilling novice workers
• (13:53) AI’s role in the quoting process and business operations
• (16:58) Addressing security concerns with using AI in manufacturing businesses
• (21:23) The importance of fine-tuning AI models for specific business needs
• (26:50) Why you need to check out the Buy the Numbers podcast
• (29:20) Do you need a comprehensive understanding of prompt engineering?
• (31:07) Practical advice for manufacturing leaders to adopt AI in their businesses
• (45:30) The hilarious shortcomings of generative AI (such as ChatGPT) 
• (48:20) Limitless CNC’s suggestion engine for CNC programming 

• Connect with Bryce Barnes on LinkedIn
• Limitless CNC
• Toolpath
• CloudNC
• AMT
• NTMA

• www.MakingChips.com
• On Facebook
• On LinkedIn
• On Instagram
• On Twitter
• On YouTube

In this episode of MakingChips, we take a deep-dive into the complexities of cybersecurity requirements for manufacturers working with the Department of Defense (DoD) with expert Jacob Horne. 

Jacob, the Chief Cybersecurity Evangelist at Summit 7, brings a wealth of knowledge to the conversation, especially as it relates to the Cybersecurity Maturity Model Certification (CMMC). His deep dive into the CMMC program offers invaluable insights for manufacturers navigating the rapidly changing landscape of DoD regulations.

Jacob takes us through the origins and evolution of CMMC, explaining how its implementation is designed to ensure defense contractors meet stringent cybersecurity standards to protect sensitive data. 

He clarifies the importance of CMMC certification for manufacturers who supply to the DoD, breaking down how companies can prepare for the upcoming requirements. This is a crucial discussion for anyone in the manufacturing sector who plans to continue or start working with the DoD.

Why should you listen to this episode? If you're a manufacturer handling government contracts or are considering entering that space, understanding CMMC is no longer optional. Jacob's expertise offers a roadmap for compliance, helping you avoid costly delays and penalties. The conversation explores practical steps to align your business with the required standards, ensuring you're not left behind as the regulations tighten in 2025.

Jacob breaks down the technicalities of CMMC in a way that’s both approachable and actionable. He shares real-world examples of how businesses are already navigating the process, shedding light on the obstacles ahead and how to overcome them.

Whether you’re already engaged with defense contracts or looking to position your company for future opportunities, this episode will arm you with the knowledge to take the next step toward CMMC compliance. This is a crucial episode that can help safeguard your business’s future in an increasingly regulated market.

• (0:28) Check out Paperless Parts for quoting and estimating 
• (1:51) Jacob’s background in cybersecurity
• (6:06) Why CMMC was implemented and how it aims to prevent cyber threats
• (15:04) The announcement of CMMC 2.0 + the rule-making process
• (17:28) The basic requirements of cybersecurity/CMMC
• (19:48) The challenges manufacturers face when implementing cybersecurity requirements
• (23:03) The importance of securing the supply chain and how it relates to CMMC compliance
• (25:30) Understanding the role of waivers and exceptions in the certification process
• (30:12) Dissecting the reasons why CMMC is not going away
• (33:31) How to get ahead in the CMMC certification process and avoid falling behind
• (35:34) Why you need to check out the Lights Out podcast
• (36:49) The process of going from “zero” to assessment ready 
• (39:02) How many manufacturers need to get level 2 certification? 
• (45:53) The connection between CMMC and quality management systems like NADCAP
• (50:18) Potential costs behind CMMC certification and long-term financial implications
• (54:03) The role of mergers and acquisitions in the changing cybersecurity landscape
• (56:49) Controlled and classified information vs controlled unclassified information (CUI)
• (1:05:33) Dissecting some of the gray areas left to interpretation 

• Check out Paperless Parts for quoting and estimating
• The Cybersecurity Maturity Model Certification (CMMC) Program
• The Cybersecurity Maturity Model Certification (CMMC) Rule 
• Sum IT Up Podcast
• Cyber AB CMMC Assessing and Certification 
• Nadcap®
• NARA

• www.MakingChips.com
• On Facebook
• On LinkedIn
• On Instagram
• On Twitter
• On YouTube

We’re always looking for ways to build greater awareness of manufacturing, and we believe the conversation needs to start at an earlier age. That’s why we’re excited to speak with people like Michael (Mike) Nager, who shares our passion for bridging the gap.

Mike is a passionate advocate for raising awareness about manufacturing through children’s literature. As a long-time industry professional, Mike saw a gap in how manufacturing is presented to younger generations. In response, he created engaging, educational books that introduce kids to the exciting world of manufacturing, from automation to smart technologies.

Mike discusses how his books are designed to spark curiosity and inspire future manufacturers by making complex topics accessible, colorful, and fun. He shares why it’s essential for kids, parents, and educators to see manufacturing as an exciting and vital part of our daily lives.

We also dive into the challenges of simplifying manufacturing concepts, the positive feedback Mike has received from parents and educators, and how he’s partnering with organizations to expand the reach of his books. Mike’s mission is to close the "awareness gap" and encourage kids to consider careers in manufacturing.

After all, we need the next generation of makers, thinkers, and innovators to keep MakingChips.

• (0:28) Why investing in ProShop is investing in your business
• (2:40) Why it’s story time on MakingChips
• (4:02) Mike Nager’s origin story
• (10:45) Mike explains how he tailored his books for different age groups
• (13:50) Mike talks about using LinkedIn posts to gauge interest in his books
• (14:44) Why you should listen to the Machine Shop Mastery podcast 
• (15:51) A conversation about on-demand manufacturing
• (19:03) Mike shares stories from parents and educators using his books
• (22:11) Let’s get Mike’s books to more students around the world
• (25:57) The importance of raising awareness about manufacturing 

• The Smart Students Guide to Smart Manufacturing 
• Smart Manufacturing Terms You Need to Know
• All About Smart Manufacturing
• Festo Didactic
• Siemens Digital Industries
• TITANS of CNC Academy
• Smartforce Student Summit

• www.MakingChips.com
• On Facebook
• On LinkedIn
• On Instagram
• On Twitter
• On YouTube

The biggest problem in manufacturing today? Finding and retaining the right talent.

Labor shortages aren’t just about filling positions; it’s about finding people who will truly thrive in your company culture and help drive long-term growth. But how do you accomplish that? 

Trevor O'Malley and Myles Rickerd bring a fresh perspective to talent acquisition that is tailored specifically to the needs of manufacturers—and we’re teaming up with them. In this episode, we're excited to introduce Hire MFG Leaders, our new service designed to directly address this challenge. 

Gone are the days of sifting through stacks of irrelevant resumes and hoping something sticks. We’ll help you find the right person the first time. This episode will give you a sneak peek at how we’re redefining the hiring process—making it more effective, streamlined, and tailored to manufacturing needs.

Whether you need engineers, machinists, or leadership, Hire MFG Leaders will help you connect with top candidates—even those who aren’t actively job hunting. By leveraging a deep understanding of the industry, we’re able to proactively reach the best talent before your competitors do.

If you’ve been struggling with your own talent search, this episode is a must-listen. We’ll cover why traditional hiring methods fall short and how our innovative approach—backed by experts who understand your business—can lead to better hires, fewer missteps, and less turnover.

Tune in to discover how Hire MFG Leaders is the recruitment solution that will set your shop up for success.

• (0:25) Meet us at The MFG Meeting 2025
• (3:07) Introducing Trevor and Myles
• (6:37) Why Myles launched his own agency
• (8:09) Why are we launching Hire MFG Leaders?
• (12:02) How do you hire the right people? 
• (20:05) Achieve on-time delivery with ProShop ERP
• (21:04) How the MakingChips team is bridging the gap 
• (24:29) How will the process work? 
• (28:47) Who is the best fit? 
• (31:13] Why exceeding your expectations is the goal
• (37:45) How to learn more about Hire MFG Leaders
• (39:08) Check out Machine Shop Mastery

• Hire MFG Leaders
• Meet us at The MFG Meeting 2025
• Connect with Trevor O'Malley
• Connect with Myles Rickerd
• Should You Use a Recruiter to Find Your Next Manufacturing Leader? 405
• Achieve on-time delivery with ProShop ERP

• www.MakingChips.com
• On Facebook
• On LinkedIn
• On Instagram
• On Twitter
• On YouTube

In manufacturing, speed matters—especially when it comes to quoting. If you can’t turn around quotes quickly and accurately, your customers will move on to someone who can. But should you leverage AI, like ChatGPT, to make the quoting process easier? 

In this episode of MakingChips, we’re tackling a hot topic: the risks and limitations of using large language models for estimating and quoting. 

Jason Ray, the co-founder and CEO of Paperless Parts, joins us to break down why these AI tools might not be the magic solution some shops hope for. From data security concerns to unpredictable costs and AI hallucinations that could lead to costly mistakes, we’ll explain why trusting a general-purpose AI with your quoting process might be more of a liability than a benefit.

Instead, we’ll explore a smarter approach—one that enhances human expertise rather than replacing it. If you care about accuracy, efficiency, and protecting your customers' data, you don’t want to miss this conversation.

Because if you’re not quoting quickly and accurately, you won’t be winning business. And if you’re not winning business, you’re not MakingChips, and you’re not making money. BAM. 

• [0:27] Use Paperless Parts for your estimating and quoting needs
• [2:21] The bottlenecks we all face with quoting
• [10:24] Paperless Parts is razor-focused on estimating and quoting
• [12:48] Meet us at The MFG Meeting in San Antonio
• [14:53] Should you use an AI engine for quoting?
• [19:08] Subjective vs objection AI
• [31:02] Why this conversation is important 

• Paperless Parts
• ProShop ERP 
• Meet as at The MFG Meeting in San Antonio!

• www.MakingChips.com
• On Facebook
• On LinkedIn
• On Instagram
• On Twitter
• On YouTube

Many machinists dream of owning their own shop. But there’s a big difference between being great at making chips and being great at running a business—just like a skilled operator isn’t automatically a great manager.

That’s why we’re launching a new series—think of it as a MasterClass on starting, running, and growing a successful machine shop. Business school teaches general principles, but the real lessons? You learn those on the shop floor, through experience, and sometimes the hard way.

We want to bridge that gap, and we’re dedicating much of this year’s content to making it happen.

If you own or run a shop, we want to hear from you—what worked, what didn’t, and what you wish you had known. If you’re still dreaming of starting your own business, tell us what you want to learn.

And we’re not doing this alone. We’re bringing in industry experts to share their knowledge and experience.

So listen in, and let us know—what do you want to hear? What questions do you have? This series is for you, and we want to make sure it covers everything you need to succeed.

• (0:20) Why we love Paperless Parts for estimating and quoting 
• (2:45) Why we’re planning a masterclass 
• (8:05) We want to hear from you
• (11:57) How we’re structuring the series
• (15:20) Meet us at The MFG Meeting in San Antonio 
• (26:38) We’re collaborating with incredible partners

• The E-Myth Revisited
• The Peter Principle: Why Things Always Go Wrong
• The Toyota Way to Service Excellence
• The Kind Leader

• www.MakingChips.com
• On Facebook
• On LinkedIn
• On Instagram
• On Twitter
• On YouTube

What’s the secret to scaling a manufacturing business? For Mike, it all started with a growing passion for manufacturing, a desire to learn, and the decision to implement ProShop ERP. In this episode of MakingChips, Paul and Mike share their origin stories and dive into the transformative power of systems, processes, and ProShop.

Mike’s journey began with a love for technology and shop floor data collection, but his path took a turn when he acquired Hill Manufacturing in 2018. From there, he leaned on ProShop to standardize operations, eliminate inefficiencies, and drive remarkable growth. Hill Manufacturing’s mission—delivering quality parts on time, every time—became achievable on a whole new level.

With ProShop in place, Hill saw savings of several hours per person daily, streamlined purchasing into a shared responsibility, and even reduced the management team’s size while repurposing staff into value-added roles.

When COVID hit and revenue plummeted, they doubled down on systems and processes, reinvesting in ProShop. By 2021, they rebounded with 25% more revenue and 30% fewer people—proof that the right ERP can make all the difference.

If you’ve ever wondered how to scale efficiently, make bold decisions, and embrace systems that align your team, this episode will inspire you to take action. Because if you’re not MakingChips, you’re not making money!

• [0:36] Leverage ProShop for your business
• [4:07] Paul shares his origin story
• [12:17] Mike shares his origin story
• [21:40] Meet us at The MFG Meeting! 
• [28:05] Hill’s ProShop Implementation
• [43:35] Challenges and wins
• [46:50] Paul’s bet with a customer 

• Achieve on-time delivery with ProShop ERP
• The MFG Meeting: Feb 19th-21st, 2025
• A College Course in Machine Shop Management with James Marzilli
• How Modern ERP Transforms Manufacturing with John Zmuda

• www.MakingChips.com
• On Facebook
• On LinkedIn
• On Instagram
• On Twitter
• On YouTube