If you’re interested in starting up a manufacturing business, you need to know a few things first. The industry is doing well at the moment, so you should be able to make your business profitable if you get a few things right. Here’s what your manufacturing business needs when starting out.
A Good Idea
The basis of every great business is a great idea. Without a good idea, you’re heading nowhere fast. Once you have an idea in place, you should do some research and fact finding to back it up. You’ll need to find out whether someone out there has already taken your idea to market. If they have, you’ll have to come up with something else instead.
It doesn’t have to be a completely new idea though. Loads of huge, successful businesses exist that aren’t original. As long as you can offer a new spin on an existing idea and create some demand for it on the market, you’ll be able to strike lucky and rake in the profits. So, get thinking!
I wouldn’t recommend choosing a business idea that you don’t know much about. It’s simply not a good idea. You should know what you’re getting yourself into. Otherwise, you could trip up and fail. You have to know what you’re talking about too; people won’t take you seriously if you don’t.
If you have a great idea for a business, but you don’t have a high level of knowledge about the industry, you could work with someone who does. If you can find a business partner that combines their practical skill and knowledge with your business acumen, you might have a winning formula.
Where your business is based is very important. Its location will have an impact on your income as well as how much you pay in rent each month. So, make sure that you have a premises that fits your needs as well as your annual budget. It’s not easy to get that balance right, but it can be done.
It’s a lot cheaper to rent somewhere away from cities and built up areas, but this might not be suitable for your business. But for most manufacturing businesses, being near a town or city isn’t a big issue. You manufacture products that can be transported to the end user easily enough, no matter where they are. Once the premises is yours, you’ll have to start kitting it out. You’ll need work areas, industrial lockers, and machinery – but we’ll touch upon that later.
Starting a manufacturing business can be very expensive, and all that startup cash is going to have to come from somewhere. Maybe you’ve saved for a long time, and you have enough money in your bank account to get the project off the ground. But most people won’t be in that fortunate position.
You could try to get a bank loan. But finding someone to invest in the business might be the better option. This means you give up a portion of the business in return for money from an investor. It allows you to use their business knowledge too. You’ll need to be able to prove to investors why they should invest in your business though.
What kind of machinery you buy will entirely depend on what kind of manufacturing business you’re looking to start up. The equipment should be one of the first things you buy after you’ve secured your premises because it can be quite expensive, so make sure you have it in place quickly.
You have two options when you’re finding the machinery for your new business. Your first option is to rent new or used equipment from somewhere. This means spending less money upfront, but you will have to carry on paying rental costs. Or you could buy the machinery outright. This allows you to have ownership of the machinery, and you don’t have to worry about rental costs.
Every business needs employees. Without a team of employees, you won’t have anyone to get the job done for you. Hiring staff when you’re starting a new business isn’t easy though. That’s because you’re starting from scratch, and you have to build a whole team that can work together well.
The key is getting a good mix of people with different skills and levels of experience. The more experienced staff member will be able to mentor and help the less experienced ones. And if you get a good mix of skills, you should have all your bases covered. But remember to get references from previous employers before you hire anyone.
The manufacturing industry can be very dangerous. There’s a lot of dangerous materials and complicated equipment that has to be handled. Of course, with the right safety measure and training, these things can be perfectly safe for anyone to use, but it requires some work to get to that point.
Firstly, you should make sure you right up a comprehensive health and safety policy that takes into account your specific risks and challenges. You should then make sure that your machinery is safety tested, and you have all the PPE (personal protective equipment), to keep your employees safe.
A Business Plan
When you’re starting out, you need a plan. This plan will form the basis of your business. And if you get it right, it could propel your business forward and get you off on the right foot in the industry. Make sure you spend as much time on the plan as you need – it should be done before you start buying your equipment or selling your products or services.
Start by summing up your business’s short-term and long-term aims and ambitions. Then, you’ll need to outline how you’re going to turn those ambitions into a reality rather than just a pipedream. If you have a business partner, you should both be involved in this process.
Getting started in the world of manufacturing might seem like a daunting prospect, but you just need to get stuck in and test the water. As long as you have a strong plan in place and a winning idea, there’s no reason why you shouldn’t make it big.