Starting a manufacturing company, particularly in the U.S, used to be complicated. Mainly because the cost of purchasing equipment and creating products, didn’t allow much room to produce products at competitive prices for customers. However, today, with the assistance of innovative technology, it’s becoming increasingly possible for individuals to launch and run profitable manufacturing companies in America.
Producing mass products in an industrial atmosphere is exciting. You’ll be providing tangible things that people need in their everyday lives. To start assembling your company, below are five steps to follow to build your manufacturing business from scratch.
Thoroughly Research Your Market
Listening is hearing the needs of the customer, understanding those needs, and making sure the company recognizes the opportunity they present.” – Frank Eliason
As with any new startup, research is compulsory. It gives you a better oversight of the market, from market leaders to niche product creators. If you can, try to gain live experience of what it’s like to be in a manufacturing building. This way, you’ll get to find out how different manufacturing companies operate. Meanwhile, enabling you to think about what kind of business products you want to produce, for example;
- Transport
- Food
- Printing and publishing
- Pharmaceuticals
- Furniture
- Clothing
- Toys
- Industrial equipment
Once you’ve chosen a sector, you can establish what manufacturing tools, equipment, and resources are needed to operate.
To create a budget, research industrial equipment suppliers such as C&B Equipment, to decipher how much each piece of equipment costs and how much capital you’ll need to raise or loan to launch your business.
Choose The Right Location
Depending on what you choose to manufacture, you may start in your home office or garage. But once things begin to take off, you’ll need a place in mind that has adequate room, facilities and transport routes for deliveries to and from your business premises. Plus, the closer you are to your customer base, the less money it will cost to transport goods, which will leave more room for you to make a profit.
Partner Up With Other Businesses
To gain a footing in the manufacturing industry, you’ll need to be diligent about marketing and reaching out to businesses to persuade owners that you’re the right manufacturer to make their products.
There is room in the industry for budding and promising manufactures to gain new clients. Due to the scale of smaller businesses, you’ll have more oversight and control over quality control and customer relations. Furthermore, to begin with, be generous with incentives, and offer to create one product they’re interested in at no extra cost, to help form relationships with new businesses.
Alternatively, contact other manufacturers to partner up. If you’re specializing in a niche area, you could add something advanced to their products, which they may not have the facilities to do.
Lean Manufacturing
Lean manufacturing is a process that’s been around for over two and a half decades. And it’s a necessary component for businesses to improve the following;
- An efficient workflow process
- Reduce waste
- Ensure productivity is maximized and all workers and resources are put to good use.
Lean involves assessing existing processes to look for better, alternative ways, that are more eco-friendly, and cost-friendly for your business.
Continuous improvement is better than delayed perfection – Mark Twain.
Hire a Mentor
Creating a manufacturing business is a lengthy and precise process, which requires careful research and planning to get right. Due to the often lengthy and costly nature of researching, sourcing equipment, staff, funding, and so forth, it’s essential to find at least one mentor to guide you. Preferably, someone who’s adept with LEAN manufacturing, that can help you analyze, measure, record, and improve all of your manufacturing processes safely.
A great mentor will use their experience and education to guide you through the everyday obstacles found while setting up a manufacturing business. For instance, they will ensure you avoid costly mistakes and make logical decisions that impact the set-up and daily operation of your company.
Colleagues are a wonderful thing – but mentors, that’s where the real work gets done. — Junot Diaz
Mentors are a valuable, unrivaled asset in business, particularly in manufacturing. Whether it’s an old college friend, or a professional you source online, two or more heads in business are certainly better than one.
For a business that’s diverse and interesting, with the potential for significant returns on your investment, devote some time working through the above steps to get your manufacturing business on the right track.