4 Vital Steps On Setting Up Your Own Factory
The thought of becoming a manufacturer has been lingering in your mind long enough you can even remember. Establishing a manufacturing business can be a hefty financial responsibility and wait till you employ your future staff. There are plenty of ways to set up your own factory and it can be confusing. Therefore, we have scaled down to 4 vital steps.
Location is Gold
It may be intriguing to search for an affordable location when starting out, but the area that you will be choosing is critical for uncountable reasons. For a start-up manufacturing business, it requires a good foundation. You will have to consider – will it take a long time for your materials to arrive from your suppliers? Is it easy to get your products to your customers in terms of transportation wise? Are there enough parking spaces for your employees? Are the future employees you are looking for in that area? All these factors will affect the cost-effectiveness of your business.
Do You Have the Permit and Approval?
A building permit is an official approval given by the government which allows you and your building contractor to start constructing on your purchased property. It is to ensure that the construction fulfills the local standards for construction. Before you start the construction, consider what permits and approval you need. Seek for help from people who are experienced in this area. Always search for a 2nd, 3rd or even 4th opinion. You will need to involve your building contractor as he will be the one whom you will be working closely with throughout the whole process.
Managing Your Finance
Now when you have decided and have the correct permits, let’s go into financing. A few options of financing including official loans and grants. It is crucial for every manufacturer to know which is the best choice for their business. A piece of advice from an experienced contractor will help you determine which financing option best fits your manufacturing necessities. List out your allocated finance and plan wisely for each segment.
Hiring the Squad
Last but not least, we always save the best for the last. This is the MOST important step of all. Sure, you may have the perfect location and your products, but where will your products go without the right employees? The right employees will increase your chance of success in your business.
It is unquestionably important to make sure you will be hiring skilled employees in this field before you officially start your manufacturing business. On the other hand, make sure that your manufacturing factory’s location is nearby to good transportation links.
And finally, do some research on the average salaries of the roles you are going to fill in. Also, discuss with your partner on the benefits given to your future employees. A good and reasonable salary with good benefits will definitely attract your future employees to take up the job you will be offering.
Well there you have it, a piece of advice from us. This may not be a complete guide on starting a factory from head to toe, but an effort to help you see through things and brain storm the process before you start your manufacturing business. Keep your options wide by seeking help from an experienced manufacturer or an organization.