How to start a manufacturing company
If you are planning on starting your own manufacturing company you may be overwhelmed by the number of things that you need to consider. It can be difficult to make all of the right decisions to get your manufacturing company started but if you take the time to do your research you are much more likely to be successful as you are building your company. It is crucial that you understand that you will need to take a great deal of time planning. The bottom line is that how well you plan will largely determine how successful your manufacturing company ends up being.
During the planning phase you will not only determine what type ofproduct(s) that you will produce but you will also have to determine who much money you will need, what type of raw materials you will need to gather, and who will work for you. Keep mind that when you take the right amount of time to effectively plan for your manufacturing company you are able to get better results and spend less. Here is what you need to know about how to start a manufacturing company-
- Decide on a manufacturing strategy-Keep in mind that this is what will function as the base of your manufacturing company. This is the point where you are deciding what your company is all about. You will need to consider the following points when putting together your manufacturing strategy. These points include but are not limited to:
1. What are the overall goals of your manufacturing business? You will then need to breakdown those goals into short and long term goals.
2. What is the plan to make your manufacturing business successful?
3. Who will be your customers? You will need to determine who your target market will be.
4. How will you market to your customers? Many manufacturing companies overlook this important part of their strategy.
5. Once you attract your customers how will you keep them happy?
Keep in mind that any lenders or potential investors will need well thought out answers to all of these questions, as well.
- Decide who will work for you-Manufacturing is a highly employee driven business. The long term success of your manufacturing company will largely be determined by the caliber of the employees that work for you. You will need to find the right employees to work for your manufacturing business. It is also important to determine if you will need employees that are already trained or if you will be providing training after they are hired. This will be a large factor in who you hire.
- Decide how you will promote your manufacturing business-Many manufacturing owners overlook the need to come up with a marketing plan. This is a serious mistake. Every business (no matter what type) needs a marketing plan. You will need to attract customers and your marketing plan will help you do this. Keep in mind that any potential lender or investor will be hesitant to give you money if you cannot show how you will market your manufacturing business, and its products. Your marketing plan can be a separate document or part of your business plan.
- Decide how much money you will need-Most manufacturing businesses are expensive to start up. You will need to have a clear idea of exactly how much money you will need. This will entail very detailed planning as you find out how much the needed machinery will cost, production charges, and labor costs. Finally, you will need to decide where you will get your money. This will entail determining if debt financing, equity financing, or a combination of both is right for your manufacturing business.