- 1). Determine the need of or desire for the product that you decide to manufacture. List all related expenses needed for the manufacturing process including supplies, equipment, distribution costs, plus related marketing and advertising expenses. Create a financial projection that shows how much start-up money is needed and the estimated time to reach the break-even point. Use the financial projection to acquire necessary financing or seek investors to fund the development of a prototype.
- 2
Plan to eliminate waste from the beginning.containers of anti-freeze and coolant for cars. products image by L. Shat from Fotolia.com
Know the skill sets of the employees you will need to successfully manufacture the product. Implement an effort to "eliminate raw materials that are not incorporated into your final product or service" as a cost-saving measure, advises the Environmental Protection Agency in its online Pollution Protection Small Business Guide. Find favorable equipment-leasing arrangements to improve your cash flow. - 3). Plan to hold regular injury prevention workshops to reduce workers' compensation costs. Have dynamic but brief meetings, as recommended by consultant Joe Stevens (see Reference list), meetings that are "are fun and build morale" by teaching a specific safety point and include prizes for participants.
- 4). Create a website that shows the manufacturing process to prospective customers, presents the product's benefits, and includes 3-D cutouts or Flash animation to show the movement of a particular tool or process. Budget for a quality designer who adheres to the professional standards of Aiga.org, the professional association of design, which includes treating all "production methods" as confidential and clearly defines an approach to the website project.
- 5). Establish a quality-driven process that continually seeks customer feedback and make sure that "quality objectives within the company [do] not operate in a vacuum, but in careful conjunction with marketing and customers," writes Curt Clinkinbeard in Entrepreneur.com (see Reference list). Choose quality vendors for the distribution process.
- 6). Join a trade association for the particular product. Adhere to best practices for employee relations, vendor relations and customer relations.
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