While there may be some who claim that the UK’s manufacturer sector has declined over the course of the last two decades, it still accounts for an estimated 54% of the nation’s exports. It is also part of a global industry that contributes £6.7 trillion to the world’s economy on an annual basis, so the marketplace remains extremely competitive and a key engine of growth and urban expansion. It is also integral to the development of society too, as we rely on man-made products and structures during everyday life.
It made us feel the importance of manufacturing startups and problems they face in the beginning. To help you deal with those issues, we have compiled three crucial tips for you.
1. The distinction between strategic and non-strategic elements
As an entrepreneur, you may have a background in manufacturing, but it is crucial that you delegate everyday processes and decisions to people and technology. After all, this is the non-strategic and the time-consuming business element that dominates day-to-day manufacturing, and immersing yourself in this can cause you to lose sight of the bigger picture. Instead, focus on the bigger picture and as a manufacturing startup business owner and hone the vision for your product ranges, while empowering others to help bring this to life.
2. Invest in Affordable Hardware and Automation software
On a similar note, you can also contribute to ease the often complex processes of manufacturing directly by introducing automated technology and software. Such programs can be used to manage laborious and simple parts of the manufacturing process, eliminating human error while driving greater speed and efficiency. This can reduce costs too during the financial year while you can augment these savings by seeking out affordable equipment or leasing agreements.
While start-ups that have yet to secure a volume of work should consider short-term hire purchases, those with a stream of confirmed orders should partner with firms such as The Handling Equipment Shop to source affordable hardware.
3. Choose a suitable manufacturing space in a viable location
When procuring premises, there are two things to keep in mind. The first is the location that you choose, as this must be based where possible on the channels through which you intend to sell. If you are selling through retail stores, for example, locating your manufacturing plant close to individual outlets will reduce shipping costs accordingly. You can also reduce costs and optimise profitability by selecting premises that are a suitable size for your venture, rather than investing in a long-term lease in a large location.
After all, there is nothing wrong with securing temporary premises on rolling, short-term leases, as this enables your business to scale quickly and in a cost-effective manner.
Author: Biz Think Tank
BizThinkTank is a dedicated small business website, with a wealth of regularly updated tips and articles. Whether you’re looking to start a business or grow your business, you’ll find a wealth of handy advice and information.