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How many times have you heard people say that all you need for a successful startup is a great idea? Unfortunately, that’s simply not the case. Sure, a great idea is one of the things you need. However, as the TV dragons have told countless hopefuls, a successful business will not thrive on ideas alone. And this is especially true of a manufacturing business.
Launching a manufacturing business demands commitment, talent, and more than a little risk-taking. However, it is possible to build a business that is going to thrive in the 2019 marketplace.
Achieving Critical Mass for Your Manufacturing Business
If you are running an online service business, you can kick off with minimal investment. Even if you have only one customer to start off with, the money will come dripping in and there is time to grow.
In manufacturing, you don’t have this luxury. Any manufacturing business needs premises, tools, equipment, raw materials, and expertise in order to start producing its outputs. These demand both capital expenditure and ongoing costs. Therefore, there is going to be a minimum turnover needed just to break even.
Managing costs, particularly in these early days as you seek to achieve critical mass, is vital. That doesn’t just mean sourcing supplies at the best prices, important though that is. It also means closely controlling the raw materials inventory. Have a strategy, along with the necessary software tools, in place before you even begin. Getting this right can spell the difference between success and failure.
The Right People
For any business, its people are its most important asset. The knowledge, experience, and relationships that staff can bring are the hardest thing for competitors to duplicate. Moreover, having the right people on board can deliver a genuine edge.
In manufacturing, it is essential to have the right personnel in place before you begin. What’s more, they must have the skills you need.
Explore different possibilities in terms of employing workers full time or part time. Perhaps even take on freelancers and contractors on an ad hoc basis. There are pros and cons to each. It really depends on the business model and whether manufacturing processes are subject to excessive peaks and troughs.
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The Right Place
Today, many of us can work from any beach in the world as long as we have an Internet connection. For a manufacturing business this is not the case, however. Location is vitally important.
Don’t just look at basic costs of location. Also consider transport links and your plant’s proximity to your main customers, suppliers, and business partners.
Moreover, with a location in mind, take time to think about the practical needs of your business. How is access if you need to get large product in and out? Is there room to expand when your business grows? And how will your business dovetail with others in the area? After all, having a good relationship with the neighbors is as important in business as it is in our domestic lives.
If you’ve been mulling over the idea of starting your own manufacturing business, consider carefully the information we offer here.