subject: Setting Up A Manufacturing Business [print this page] Manufacturing is the process of turning raw material into finished products. Let us begin with a simple example of turning wheat into flour or flour into bread. It may seem so basic in appearance, however it isnt as simple as it may seem. A lot goes into transforming the simple raw materials into finished products.
The most basic thing is to understand the key features and difficult characteristics of a manufacturing business. You cannot just start a business without proper knowledge about it. Although, when you experience tricky situations your skills are polished, but you have to have the basic intelligence to survive and grow in the market. There are certain questions you must ask yourself before taking the final decision of setting up a manufacturing firm:
What basic manufacturing operations are required to produce the product of your desire?
What is the cost of all the business activities and routine operations?
What is the cash in hand you would need and how much would the developments and gradual innovations cost you?
What is the right amount of back up for your business?
Where would you get the business insurance from?
What are the types of equipments and machinery you require?
How much money would that cost you?
Where should you get the machinery from and how should you maintain and upgrade them?
Should you invest in the latest technology or certain old ways would be more useful?
What is your requirement in terms of manual labor? Is it available as per need or you need more or you need to remove or shift any?
What are the key skills the labor should have?
How are you going to provide training and development to your staff?
Who is going to supervise the labor?
Who would be the manager?
Who will assist you with legal, accounting and other external issues?
What is the right amount of space required to house the business and grow it in future?
How are you going to get your business financed?
Answering all of these above mentioned questions at one go is a little tough and tricky so you can ponder about one at a time. You should take care of these things in case you set up one or buy an existing business for sale. If you buy a going concern business, certain answers would come on their own.
But with this task getting eliminated, one more adds up and that is checking certain important facts about the business you buy.
You should take into account the financial details of the business for sale by having a look at the financial statements of the yester years. Also check the fidelity of information and reason for sale supplied by the seller. Knowing about an existing customer base is of utmost importance to cater to their taste and preferences as the new owner of the business. You just cant make changes at the very beginning. All innovations must be made gradually so that the customers are comfortable with them.
I wish you luck with the setting of your business.
