Your home could be a goldmine waiting to be discovered, but not literally. You could start a home-based business and make some good money in the comfort of your home.
By setting up your own home-based business, you’ll be joining 38 million other Americans currently making a killing from their home businesses.
For most people, manufacturing has never seemed like a business you could start at home. Possibly because of the costly inputs and the complexity of manufacturing processes.
However, thanks to innovative technology and the internet, establishing a home-based manufacturing business is now easier than ever. If you’ve been mulling over starting a home-based manufacturing business, then you need to do it correctly.
In this piece, we’ll elaborate on how to start a successful home-based manufacturing business.
How to Start a Home-Based Manufacturing Business the Right Way
A manufacturing business requires a lot of commitment and grit, especially if it’s your first venture into the industry. However, all the sweat and tears will eventually pay off if you keep at it.
So if you’re planning to start your own manufacturing business, brace yourself for late hours, frequent travels, and heaps of work.
Here’s how you start a home-based manufacturing business:-
1. Evaluate Your Skills
For a successful manufacturing business, you have to learn a few skills relevant to the trade. Luckily, unlike talents, you can actually learn skills over time. So the first step is to evaluate your skills, see what you have, and start planning to learn those you don’t.
Start with the skills you have, and you can build from there. For instance, your problem-solving skills will come in handy when you have to sort out logistical issues and other common business challenges. You will learn managerial skills later on after your business picks up the pace.
2. Establish a Proper Support Network
You won’t get too far if you decide to go it all alone. It’s a good idea to establish a firm support network to help you navigate the convoluted manufacturing industry. It will be a huge hit for your business if you can’t find the support you need when you need it most.
As such, you should be out and about establishing a robust support network any way you can. Your network should include anyone from suppliers, reputable business people, and folks with connections. You should also consider getting a business coach for both the coaching and the connections.
A proper support network will save you a lot of money and also help accelerate your business’s growth. A support network is something you grow over time, but it doesn’t grow on its own. You actually have to go looking for people, other businesses, and organizations to form your network.
3. Location Is Everything
Unfortunately, since it’s a home business, there’s not much you can change about your location. However, you don’t need the best location for your business; a decent location is enough for good business.
Transport links are the main consideration when it comes to the location. That’s because your products need to reach customers in the shortest time possible. Also, transport constraints shouldn’t stretch your budget to the point that you’re barely breaking even.
Since there’s nothing much you can change about location, you’ll have to work with what you have at least for now.
4. Plan for the Factory
With your location on lock, the next thing you have to plan for is the factory. The factory requirements will depend on the type of products you want. For instance, some products require much more power to manufacture than others.
For more power, you may have to consider switching to a three-phase power system. Also, make sure you have enough space for the factory, but space shouldn’t be your only consideration. You should work out the space and channels for goods to move in and out.
The floor and soil beneath should also have the capacity to withstand vehicle traffic and machine loads. Have a civil engineer calculate the bearing capacity of the ground before you move in your equipment or have any vehicles enter the building.
You may want to give up your backyard garden for extra parking space and also to allow free movement of people and vehicles. With proper organization, you can greatly improve the efficiency of your manufacturing business for faster production and deliveries.
5. Assemble Your Team
At this point, you’re almost ready for business. All you need now is a strong team of industry experts, workers, and marketers, and you’re good to go. Just like any business, your team will be your greatest asset when starting your home-based manufacturing business.
The first place to clamp down is your skilled labor. Since it’s a home-based business, you don’t need to have flyers or advertise in the newspapers for job vacancies. Your family, friends, and neighbors can be your recruiters or be part of the staff themselves.
Find out from factories around you the average salary for both skilled and unskilled labor. That way, you can do your financial organization and ensure that the business actually makes payroll.
Even though it’s a small scale business, try your best to be extra keen on recruitment. The worst thing you could do is letting in unscrupulous individuals inside your home. They are not only a security threat, but it’s also not good for business.
6. Select a Business Model and Get Things Rolling
As a manufacturing company, your business centers on using raw materials to make new products. You don’t necessarily need a new product for it to sell. You could improve a product that’s currently on the market, as long as it isn’t a copy of the original product.
Once you get the business model, you can talk to suppliers, contractors, and get the business off the ground. Don’t forget to invest in marketing to get the word around and attract your first customers.
Start Your Manufacturing Business Today
Space is a huge hurdle for businesses everywhere. However, that shouldn’t be a problem if your home can also serve as your business premises. Hopefully, you now know how to start your home-based manufacturing business, and the ball is now in your court.
If you think you have what it takes, then start your manufacturing business as soon as you can. Finally, don’t forget to check for all the permits and licenses before starting your business.
For more insightful reads, be sure to check out other articles on the site.