Starting a manufacturing business is a huge commitment, regardless if there’s a crises like the global pandemic. The time, energy, and resources alone may shock you once you tally the figures. When we take COVID-19 (which has hit the manufacturing industry a lot harder than other sectors) into consideration, the prospect of getting into this business can be quite daunting.
That being said, human beings are nothing if they’re not resilient, so many manufacturing startups are powering through amidst the crisis. We’re here to arm you with some useful information on starting a manufacturing business this year. This article has the answers you need, so keep reading!
1. Use CPQ solutions for a more efficient sales process
CPQ stands for Configure, Price, Quote. It’s a software solution that helps manufacturers customize their products to fit a customer’s specifications. But before you go running about looking for a CPQ software, there are service providers that can guide you adequately.
Configure One is a leading company that offers one of the best CPQ solutions out there. Configure One’s CPQ system helps develop accurate price quotes quickly for swift sales operations. You’ll have your product information, sales quotes, estimates, and configuration guidelines in one central location to deliver price quotes to potential customers.
Now, the big question – is a CPQ cloud software useful in 2020? The answer – Yes! Firstly, it works with artificial intelligence and is not a complex product to use. Secondly, it helps tremendously to cut the costs that come with hiring a sales team. Lastly, a CPQ tool helps reduce quoting errors and shortens the sales cycle thanks to real-time pricing and custom quotes. You can also access the software directly on your mobile device.
2. Use cost-effective, efficient equipment
Reliable equipment is crucial to any manufacturing business. However, finding functional and budget-friendly equipment can be a real hassle. Thankfully, there are various solutions to help you get things right the first time. First, you’ll have to set up a mutually beneficial partnership with a manufacturer. For example, during the beginning stages, you can agree to lease equipment instead of making an outright purchase.
If you must buy equipment, consider those that are smaller and less expensive. For example, if you’re opening up a factory, you’ll require a conveyer belt to automate goods’ transportation. These days, it’s possible to purchase mini conveyer’s for automation in small factories. A great place to start is with the Dorner 110 miniature conveyor belt. The petite design is convenient since it doesn’t take up much space.
Also, as conveyor belts are expensive, some companies prefer to move products around manually. No one needs to tell you why that’s a terrible idea in 2020. If you opt for a Dorner miniature belt, you can reduce physical contact with products. Even better, it’s an affordable alternative to a regular-sized conveyor belt. The bottom line is that in the COVID-19 era, anything that’s affordable is welcome!
3. Do your research
The reality is, you can’t start a successful manufacturing business without conducting market research. So go ahead and liaise with as many industry experts as is required. Ask as many questions as possible to understand the market. This way, you’ll understand all the legal requirements for your business in particular.
For instance, rules in the food sector will likely differ from those in the automotive industry. You’ll also need to find out if there are special requirements for setting up a business in your city. And don’t forget to scout the competition to ensure you devise the most competitive business strategies.
4. Find your niche
In a competitive market, your product or service requires a unique selling point. You’ll have to find your niche and sell products that stand out. Identify the gaps in already existing goods, and tailor your products to fill them.