A small manufacturing company can be a profitable enterprise.
Opening a manufacturing business, big or small, takes quite a bit of planning as well as capital. It is essential to leave yourself enough room to expand but not so much that your costs will be too high at the beginning. By formulating a good business plan and sticking to your estimates, you should be able to come up with a reasonable budget. If you carefully research and account for all of the costs involved, you should have no trouble opening a small manufacturing company.
Instructions
1. Formulate a business plan outlining the key elements of your business and manufacturing sector. If you have chosen to make metal parts, calculate and outline the space you will need for machines and the costs of each. Dealers in used metal-working machines can help you find everything you need.
2. Lease or buy office and warehouse space for your manufacturing company. Look in an industrial area and use the estimates from your business plan to find a space large enough for your needs. Machine shops may need many thousands of square feet, and plastic injection molding machines are huge. So take into account expansion and how long you wish to remain in that space.
3. Set up the lobby and corporate offices. You will need to sell your manufacturing services, so you need administrative offices for sales personnel and an office for yourself when you are not on the factory floor. Phone lines, Internet and a small break room for employees are essential. Buying used corporate furniture or renting furniture can be a good idea to save money on those necessities.
4. Create a website that gives potential clients a rundown of the services you offer, including a list of machines you use. Clients can compare their needs to your capabilities quickly by looking at an equipment list. Keep it updated and make sure new machines are added to the list when they are ready to go. Include an email address and your physical address as well as a phone number.
5. Hire technical personnel to run the machines that will manufacture the goods. If you have all the equipment, the warehouse and raw material, you are only halfway there. You also need skilled workers to set up the machines and operators to run production so that parts are made correctly and on time.
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