You need to put a lot of thought into starting your own manufacturing business. It isn’t as simple as setting up an online shop or starting a service. It may even cost you a lot of investment. But it is possible. Here’s how you can get started.
Form Your Idea
To be a success with manufacturing you need an idea. It needs to be unique – not necessarily world-changing, but something that improves somebody else’s life. An upgrade on existing products, for example. You will need to make a prototype, or an example that you can show people. If they aren’t interested, it could be time for a re-think.
Decide On Your Market
This is crucial because it has such an effect on what you do next. If you are making a mass-market product, you will need a large factory area. You will have to allow space for plant and machinery, as well as office space for administration and sales. At the other end of the scale, if you are making more luxury products with high ticket, low volume sales, you can explore much smaller premises.
Working out the costs will give you an idea of whether or not your plan is feasible. Look into areas that you could save money in at an early stage. For example, if you are making plastic products, you could save money by investing in used plastics equipment so you can recycle, rather than produce or buy in your own.
If you are running a large scale operation you may need to raise money to fund it. See if your credit score will allow you to borrow from a bank, as this is usually where you will get the best rates. There are alternatives, though. Finance can be sought from private investors who believe in your idea. They will also provide you with excellent advice on how to get things started. However, the second you enter into private financing, you must understand that you will be giving a proportion of your company away.
Set Up Your Team
Once you have your costs nailed down, you can set up your team. You need to consider production, sales, marketing, administration, and health and safety. You may even want to set up a development team to work on new products, although in most cases you will be better off concentrating on your product first. The key thing is to assemble a great team of managers for each section, particularly if you are running a large operation. Pick people that work hard and that you have trust in.
Don’t delay once everything is in place. Time management is key. Good businesses are quick to move in on the gaps in the market that they see, and the chances are that if you wait around dithering, somebody else will step in. It’s not a time for shrinking violets, either. You will start losing money the second you start manufacturing, so it is vital that your business has a solid marketing plan to break out with.