Starting your own manufacturing business can be a real challenge. But, if you are thinking of using your established skills to start making products that are in demand due to the pandemic, then you could be onto a winner.
Some items are crucial to the way we live in the current crisis, and the current producers of equipment such as PPE and sanitizers cannot keep up with the unprecedented demand. Because of this, there is a visible gap in the market for somebody with the right skills and set-up to provide what people need and make a lot of money for themselves at the same time.
Before you get carried away and dive in without any planning or forethought, a word of warning—even when producing in-demand products for a hungry market, some boxes need ticking before you get going.
1. See how you can beat the competition
You might have all of the skills, but you’re not going to be the only one with this idea. However, there is no reason why you can’t work in a better way than your competitors do. To work out exactly how you will do that, you need to look at their set-ups and see how you can improve on what they offer.
This is also where you’ll be able to see what your profits are likely to be on the items you will be producing (whether you are selling them wholesale or individually on a platform such as Amazon) and which strategy will get you the most money. Don’t think you’re trying to run before you can walk, as you’ll need to have these numbers for your business plan.
2. Write a business plan to raise capital
In addition to your projected profits, you will need a detailed list of the equipment you will need and the premises you will be using, along with all of your other start-up costs.
Don’t be frightened by the numbers you come up with; everybody knows manufacturing is a costly business in the early stages. Seeing those big numbers might tempt you to cut corners or make the figures look more appealing to a potential investor. However, they should be as knowledgeable as you are, so you shouldn’t try to pull the wool over their eyes.
The problem here is that while these products are in demand now, that might change, so you need to act quickly, and you may have to seek specialist or industry-specific finance rather than wait for your local bank’s glacial decision-making process. That is why a good business plan is essential, so an investor can see straight away the potential of what they are getting involved in.
3. Source your machinery from the best suppliers
You will have to hit the ground running, so there cannot be any half measures when it comes to machinery. You’ll need to decide whether to lease or buy the machinery outright. But either way, you’ll need to contact engineering specialists, reliable and established hydraulic specialists, and automation experts to make sure that your business runs reliably and efficiently.
If you are producing in-demand, crucially important products, then your operation needs to be almost faultless. By sourcing the best machinery from reliable companies, you give yourself the best possible chance of succeeding.
