Setting up a new manufacturing business can be a daunting and challenging experience. Every once in a while, we have budding entrepreneurs who want to take the leap of faith and set up their own factories. While all of us share the passion, very few among us are able to translate the passion into a successful manufacturing dream.
In this article, we look at some of the top things individuals who are looking to set up their own factories need to pay attention to. However, before we begin, let us look at some of the challenges, that new manufacturing unites face at the very outset.
What are some challenges to setting up your own manufacturing facility?
According to leading experts, most individuals who fail do not get the basics right. In other words, experts state that the real work happens at the thinking and formulation stage. Even before you acquire land, set up the machines, hire employees and so on, you need to focus on something else.
Doing as much research about the market, industry, competitors etc. is the foundation of your new business. You need to understand how it works and what lacunae your new product and business can help plug in the industry.
Spending time researching and doing the background work will help you plan your approach accordingly. Planning in a phased-wise manner is critical to the success of your new manufacturing venture.
5 Important things to note before starting a New Manufacturing Business: The List
1. Finance and Capital Investments
One of the first things you need to concentrate on first is the number of investments you will need to set up the factory. Most entrepreneurs use their saved funds and take help from financial institutions. Whatever route you want to take, try to ensure that your loan interest rates are low. It is also important that you plan your finances for at least three years ahead.
2. New or Second-Hand Machines
If you think that no one uses second hand or refurbished machines in their factories, think again. Some of the biggest businesses also save money on well-maintained second-hand machines. If you look hard enough, you will easily be able to find boiler spares available, generators and other machines in excellent condition. This will help you save a lot of money.
3. Licenses and Taxes
Any manufacturing unit always has to comply with a long list of licenses and tax structures. While this might distract you, governmental rules and regulations should be followed as much as possible. This helps you keep your business clean, stay away from oversight and apply to government contracts and tenders. You can appoint someone to focus on just this aspect.
4. Have the right Business Partners
In most instances, most of us collaborate with our close friends or family members when we look to start something new. It is important that you sort out all the details, the roles and responsibilities, before signing on the dotted line. Have a clear cut and legally drawn up arrangement, and do not leave anything to good faith or word of mouth.
5. Use the right Channels of promotion
One of the biggest areas where manufacturing businesses fail is not relying on the right channels of promotion. Marketing, advertising and PR is as crucial for manufacturing businesses as it is for any other business. Manufacturing businesses should look to make the most of digital marketing platforms to promote themselves aggressively.
No matter what kind of manufacturing unit you choose to start, ensure that you have the requisite qualifications and experience. By following all the information and points mentioned in the article, you can ensure your new business to be a rousing success. If there are any budding entrepreneurs who would like to add some more inputs to the article, let us know below.