So You Want To Start A Manufacturing Business?
Starting a business in any kind of field is going to be tough. Going for the manufacturing field isn’t going to be any different. Perhaps you’ve got leverage of some kind in the form of industry experience, or maybe you don’t and you’ve just been making a living from inventing products and now want to go it alone with your products to see if they can garner success. The route to market in manufacturing can be a little complex. There are lots of streams you need to keep tabs on to ensure you get the best out of your startup plans. Here are some tips to give you something to think about. Each person runs their business in a different way, but these can help things start to percolate in your brain.
Research Your Product Thoroughly
If you’re going to manufacture and sell your own product, you have to make sure the product is perfectly designed and thought out. Any mistake in the research side of things will ensure that you end up paying tenfold once you’ve started manufacturing it. You ensure you’ve got the right components. Whether a butterfly valve or industrial steel wiring, then you ensure the plans are right, you make a few test samples before rolling them all off the line to ensure mistakes are caught without wasting a tonne of cash. Proper research puts an end to business killing mistakes and when you’re starting out, you really can’t afford any kinds of wastage.
Where Are You Going To Sell It?
Thinking about the end user is important. Sure, perhaps you’re manufacturing components. However you could be manufacturing the entire product. Maybe you want to sell on Amazon, to take advantage of their market position. Perhaps you’d go for AliBaba or something similar. Whatever you choose, make sure you get it under the nose of customers. Ensuring good ranking can be tough. There are marketing agencies who can help you, of course. However, you can do this yourself so long as you put the work in. Get a great selling plan in place before you go straight into making the products. Even if there’s a market for it, people won’t buy it if they don’t know where it is that you’re selling from.
Keep An Eye On The Purse Strings
Any start up needs to ensure that they keep an eye on the purse strings. However, in manufacturing, it’s even more important. The reason being that you’ll likely have a lot of overheads. Raw materials, machine costs, etc. Your cost of sales will be pretty high. Watching the finances becomes super important. There are some brilliant business grants on offer which you could take advantage of. You need the liquidity to make things work so you always have cash at bank. You may also be better off doing a part payment type of scenario. It means the initial payment from the client can be used to cover costs. While the second is used as profit. That way, if anything goes wrong the risk is hedged. Try not to agree to accept the whole payment after the job is done…if it doesn’t come in for whatever reason you’ll be out of pocket.