Starting a manufacturing business may seem very exciting when you consider that you will be in charge of a lucrative setup, everything under your control and all accountability to yourself. But the road to success is travelled by a few. These are entrepreneurs who manage to take the right decisions, plan and manage risks well and work with a vision that not only takes the profit margins into account but other aspects like worker safety, product quality and environmental safety as well.
First Step: Trading
Though you may have set your sights on starting a manufacturing business but it will be smart for you to first trade in the products to know better about the right channels to trade in, competitors in the business, wholesale prices of the products and more.
After you have tested the waters then go deeper to research about the products that will be manufactured by you. Know well about the raw materials & best places to source them, best manufacturing techniques, vendors, logistics, manufacturing standards to be met and safety regulations to be observed.
Create The Business Plan
Develop a proper business plan with complete details of what you plan to manufacture and how you intend to market it. Estimate the cost of start-up, operation and other expected costs related to material or manpower. This business plan will not only be handy when you need to get your project approved for financing but you'll also need to show it to your landlord, vendors, accountant, lawyer and vendors.
Make The Plan Concrete
Then you need to have the right infrastructure in place. So start by gathering information on the local zoning laws and develop associations with people in the local planning commission so that you will have someone to guide you on the nitty-gritties. Know about the power and water supply requirements plus the storage and use of specific materials, building structure regulations, location advantages to start hunting for leasing agents. After this, research about the right machinery required for manufacturing and find the right source to acquire it (on the basis of the cost of purchasing and cost of operation & maintenance, merits and demerits of the models, installation requirements etc.). Have all the paperwork in place and updated from the concerned authorities before starting anything otherwise you may end up paying more than you had planned. It may take some time to get everything in place but it is surely worth the time and effort to make a successful start to a manufacturing business.