The manufacturing industry, even for small and start up businesses, is a lucrative one. When people say the manufacturing sector is in decline, they obviously aren’t keeping abreast of the latest news. When it comes to starting a small manufacturing firm, you are going to need to do your research. But, when you do start, you can ensure that you are in the midst of a profitable venture.
The manufacturing process substantially meets a consumer demand. So, look at where there is a gap for affordable goods and exploit that niche. People will always want things. So, think about what things you can manufacture and sell on to the highest bidder.
You don’t have to have a large, imposing factory to undertake this kind of task. On the contrary, a small workshop is enough to get you started. According to the latest figures, over 57% of manufacturing companies have less than ten employees. So, it’s certainly a viable option for those that want to break into this sector.
Finding Your Niche
Look at your CV. Where does your expertise lie? Auto, consumables, cosmetics? You don’t have to create machines and devices. Manufacturing, at the very heart of it, is taking a product and making it into something else. Think of it this way; you can have a bunch of tomatoes and make a salsa!
Usually, the world of manufacturing is split into two types. These are defined as durable goods and nondurable goods. Think about what you want to go in based on your previous experience and expertise. Having a creative nature is a must. You need to ensure that you have the right products that people will want to buy. Getting into research and design is a must. Having a clear cut prototype is essential. So, make sure that you are looking for cheap, yet robust ways of creating a product that people will love.
Investments
As the manufacturing trade is competitive and lucrative, you will not find it difficult to find investors. But, start up costs are usually nominal. All you need is the right equipment and a small space to work from. Making sure that you have the right working conditions is a must. After all, producing high quantities of goods can be demanding. With this, you will need to find industrial dehumidifiers, cutting equipment, recycling equipment and space to work. Of course, you will also need to find a supplier for your raw materials. Think about these things as part of your capital costs and ensure that you detail these things in your business plan.
Resources
Finding the right resources is a must. Often, governmental departments will help you with this. After all, they will want to increase their export potential. As a manufacturing business, you will find that there are many governments and localised incentives to get the ball rolling. Do make sure that you learn more about the Manufacturing Extension Partnership (MEP) of the National Institute of Standards and Technology. This is an agency of the U.S. Department of Commerce. These can be valuable tools in your business arsenal;. You will get to meet like minded professionals to help you setup your venture. After all, industry knowledge is a must. As a newbie, you can find out more about this industry from known and trusted professionals.
Now is the time to make money for you. Where will your new business take you?
