If you’re thinking about opening a factory, you know what you want to manufacture and how you want to market it. However, many of the details may still be unclear to you. To help you figure out what you need to draft a business plan and contact potential investors, ask yourself the following questions.
- What Supplies Do You Need?
The raw materials you need to manufacture your products contribute sizably to your expenses, so you should figure out your needs as soon as possible. For example, if you’re going to make clothes, you need fabric, thread, and sewing notions such as buttons and zippers. Additionally, you must make a list of the equipment you need to assemble your raw components. These tools can be as simple as screwdrivers and as complex as milling machines. Don’t forget to source protective hoses from flexible metal hose manufacturers Addison IL.
- What Premises Do You Need?
How much space do you need to effectively complete your manufacturing process? Some entrepreneurs prefer to start operations in their homes and expand to warehouses after they’ve saved up enough funds. However, if your process involves heavy or loud machinery, that’s probably not an option. Identify the kinds of spaces that fit your needs and start looking at options in your area.
- How Many Employees Do You Need?
How many people does it take to produce enough items to make a profit? While having more people means that you can make more products, it also means that you have to pay more wages. Figure out the minimum number of people who can run your startup, and add employees once you’ve established your business.
By asking yourself these three questions, you start to figure out the practicalities of running your business and the issues you need to address before your first investment meeting.
