Last Updated on Mar 30, 2020 by James W
In the start-up period of your company, you’ll have a lot on your plate. You’ll have to seek funding from any source you can, research the market you’re aiming for and work out a strategy for beating the competition. If you even make it to liaising with manufacturers, you’ve already achieved something incredible! Whether you own your own manufacturing entity or work with contractors, you should approach this phase with care. Here’s how to start manufacturing in the smoothest way possible.
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Seen as you’re still in the early stages of your business, it’s a good idea to set up a mutually beneficial partnership. While some are more open, most big manufacturers will hear that you’re a start-up and turn you away immediately. Even if you’re giving them more business than they’ve seen in decades, it can be hard for you to secure the deal you’re going for. The best way around this problem is offering the manufacturer an incentive in the form of a partnership. If you’re dealing in a new, emerging technology, this can be easier than you think. Even the largest manufacturers get excited by the opportunity to expand into a new category.
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My next tip is not to make any big decisions too soon. When you’re taking those first steps into manufacturing, you’re going to be facing a lot of risk. These are big operations, and as such there are all kinds of big, inevitable costs. With all the time and money required, your company really can’t afford to make mistakes. To make the risk a little less serious, start off by renting space and equipment, rather than buying it. If your product allows for it, try and set up using low-investment equipment and manual labour. Taking it slow will not only lower your risk, but also give you more freedom to make little tweaks to your product. You’ll probably want to do this right after you see the first shipment, so walk before you run.
Finally, you should get any legal details sorted out as soon as possible. You could have the idea which will change modern business forever. However, if you’re breaking any laws while you go about your work, your firm isn’t going to make much progress! Contact your local government body, and make plans to acquire any kind of permits or certifications you need. From hiring staff to owning equipment, there are a lot of regulations involved with the industrial sector. Your factory is going to be subject to health and safety laws, and you may need a PUWER assessment depending on the machinery involved. All the paperwork can be a hassle, but get it done. After that, you won’t have to worry about going ahead with your operation.
Depending on the specific niche your business is tied to, there may be several other steps you need to take. However, these three will set up a firm base for you to develop your manufacturing operation. Establishing yourself in this area can be hard, but once it’s done the rewards are huge!