Setting up a small business can be tough work. You have to come up with a product concept, conduct a whole lot of market research to ensure that it doesn’t already exist (or that it has a characteristic that places it above the competition if the idea has already been brought to life and placed on store shelves). So, by the time you get to the point of manufacturing your goods so that you can start selling and making a profit, you probably just want to get this final step out of the way and the ball rolling. But manufacturing is just an important part of the entire process as anything else, so it’s important that you give it plenty of consideration before getting started. Here are a couple of areas to focus on!
Complying With Regulations
Before getting started with any form of manufacturing, you need to have one topic at the forefront of your mind: rules and regulations. Every country has its own set of requirements that products have to meet before they can be sold to the general public. So, make sure to carry out rohs testing to guarantee that your products are safe and legal to sell.
Outsourcing vs In-House Production
When it comes to manufacturing, you have two options at hand. You can either have your products created somewhere else by a third party, or you can produce them yourself. Now, if you are just starting out, it’s probably a good idea to stick with outsourcing when it comes to the manufacturing process. There are several reasons for this. Firstly, outsourcing means that you don’t have to fork out for expensive equipment or machinery while you are still unsure of your business’ direction. Many small businesses start out with a specialism in one area, only to realise that demand lies elsewhere. They then have to alter their area of focus to keep themselves afloat and start bringing in profit. You don’t want to invest in specialist machinery until you are absolutely sure what you are going to be producing and that there is a reliable, steady market for the goods you are producing. Outsourcing also means that you don’t have to take on an in-house staff member of your own. Becoming an employer is a huge responsibility and generally something that novices will put off until down the line when they are more settled and stable. Outsourcing also guarantees you quality for your money. The company you are outsourcing to are extremely unlikely to send you faulty, damaged, or imperfect goods as part of your order, as they want to maintain your custom. This consistent quality is exactly what you need to give your own consumer base faith in your standards and wares. However, as you expand, you may want to consider bringing things in-house, as you will have the budget ready to invest in the necessary equipment and the demand for your brand to justify its purchase and guarantee it as an investment piece. This will save you a lot of money in the long run!
As you can see, manufacturing can be a complex process. But hopefully, this information will help you along the way!