Setting Up A Manufacturing Business

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9 Apr. 2020. When it comes to finding an effective business idea, starting a manufacturing firm is something of a no-brainer. The world will always need products, and if you have the skills and talents in a specific area of manufacturing, then you could make a sizeable profit from your venture.

With the right tools and people by your side, you can manufacture almost anything, from wooden furniture for homes and offices to steel products for a range of industrial applications. Check out these business manufacturing ideas if you need some inspiration for your own venture, and consider where your time and money could be best spent.

However, as with any business type, there isn’t always a guarantee of success. So, when you are in your planning stages, it is important to take a few things into consideration to give your business a fighting chance of staying open. We discuss some of them below, so have a read, and factor them into your thinking when you are considering your business model.

1: Consider your product idea

To win more customers and clients to your side, your product needs to be markedly different to what other firms are supplying. If it’s unique, you can guarantee a greater foothold in the market, but if it’s too similar to what is already being manufactured elsewhere, then you might struggle against the established competition. This is just one of the reasons why some manufacturing businesses fail, so it’s important to do your research ahead of time to find out what and who else is out there. You can find out more by Googling your business idea to see how many other companies offer the same, and by reading trade journals, speaking to business professionals in your chosen trade for market information, and by attending exhibitions and conferences.

2: Think about the location

The right geographic area is essential to your success. It needs to have sufficient transport links to get your product out to your consumers, and you need to be accessible to your suppliers too, as you will have major problems if you can’t get your hands on the tools and supplies you need on time. As we discussed above, you need to be wary of the competition, so finding a location that has been untouched by businesses similar to yours is vital. You need to be located in an area where there are people with the skills you need for your workforce. And as some local authorities allow tax incentives for manufacturing businesses, especially in regeneration areas, this is something else you might consider when deciding where to position your business.

3: Consider the factory premises you will need

When you have found the perfect location, you also need to find the perfect premises for your manufacturing business. You need to consider the product you intend to manufacture and find a factory building that will tick all the right boxes. For one thing, you need to consider size. If you’re manufacturing with steel, for example, you will need sufficient space for your hydraulic machines, blast furnaces, welding equipment, and other technologies, such as a shot blasting machine. Think the same for the type of material you will be using in your manufacturing processes. You also need to consider how much power will be required to manufacture your product and whether the buildings you look at are capable of providing the power infrastructure needed. Then there’s warehouse space to take into consideration, the stability of the building in question, and such basic things as office and car parking spaces.

All of these factors will have an impact on the running and efficiency of your business, so seek advice if you need to, and create a checklist.

4: Think about the skills you will need

If you’re setting up any type of manufacturing business, you will need to have some idea of what skills are needed to manufacture your product. Ideally, you will have the technical skills necessary for the production of whatever it is you intend to sell, but if you don’t, you need to know who you need to hire, and what qualifications and training your workforce should have under their belts. Then there’s management skills to consider. If you have people working for you, it is important to know how to manage them, otherwise, you might see a shortfall in productivity. If you don’t have managerial skills, you should train yourself up or hire somebody to take on this role for you.

When it does come to hiring employees, you need to know where to find them. You can advertise your business needs on local job listing sites, of course, but you might want to approach colleges and universities directly when sourcing the labor you need. While the people you choose should have the relevant training behind them, you will also need to consider such things as health and safety training, as you need to protect the people who will be working with the machinery your business relies on.

5: Take your finances into account

Not only will you need money to set up in a new location, but you will need funds for the technologies you will be reliant on, wages for your workforce, and enough money for your marketing materials. In short, running your manufacturing business could be expensive.

Of course, there are ways to save money. Instead of buying expensive tools and pieces of equipment, you could lease them instead. When buying the materials you need, you could source those suppliers who are reputable but reasonably cheap. You could partner with another firm if it would be appropriate and cost-effective to work together. And there are many ways to market your business cheaply, so you can also save money here. However, you should still source as much money as you can at the outset, so budget for everything your business will require, and then approach your bank, investors, and any other sources of funding to request the money you need.

Success could be yours, but it’s what you do at the outset of your business that matters. So, consider our suggestions, and then commit to further research for the benefit of your business.

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