As soon as a startup begins to talk to manufacturers, the process feels real. The wishing is over and the work starts here and now. As exciting as the realization is, it’s also daunting because there is a lot of responsibility on the company’s shoulders. Being the boss, you have to create, or find ways to create products and services that sell which is pretty difficult. If manufacturing were easy, everyone would be doing it and they’d all be millionaires. There are pitfalls, and they are easy traps in which to fall, but they are avoidable. Here’s the advice to remember and to use whenever possible.
Unlike the majority of modern businesses, very few manufacturers have an online presence. There is a shift, but researching a company is still harder than usual regarding these firms. Obviously, you can’t afford to take a gamble and end up in bed with the wrong partner, so checking references is essential. Start with the people they claim to know in the industry. Will they vouch for them? Are they reputable too? Next, move onto previous customers and clients. Usually, these are the best people to ask as they are unbiased and have nothing to gain from lying.
Invest In Various Partnerships
The golden rule of investment is: always diversify. With a range of bonds, your risk is lower as a single event won’t destroy your portfolio. The same goes for picking a manufacturing partner. A single golden goose is easier to manage yet provides less flexibility. Spinning numerous plates at once is a logistical nightmare, but it offers the company a healthier return on investment. A good way to do it is by industry, for example. APPF Inc. is a welding specialist and Orthoplastics deals in medical supplies, so the two make an ideal partnership. Once you have a list, alternate between them for the best results.
Cross The T’s
Manufacturing isn’t as simple as developing a product in a workshop and saying “hey presto!” Before you can sell to the public, there is a process which the company needs to adhere to or face potential legal option. Firstly, a business needs to agree on a trading contract with the local authority, so that should be your initial port of call. From a manufacturing standpoint, it’s vital to think about health and safety as machinery is dangerous. Once everything is in order, then you can start.
Get To Know People
Outsourcing has its pros, but there are cons too. The main one is not to know the people behind the mask. Too often, clients leave the outsourcer to the job without checking in and asking important questions. Typically, it’s because they don’t want to stick their nose in or ruffle anyone’s feathers. The thing is the success of the business relies on them, which is why you should stay in constant contact. Better yet, get to know them and how they operate to reduce problems in the future.
The million dollar question is – are you ready to start manufacturing?