The manufacturing industry is the backbone of many economies around the world. And choosing to join the manufacturing sector may turn your business into a success almost overnight.
However, the manufacturing business is one of the toughest industries to start because of the effort, learning, and equipment needed during the initial stage. One of the most required things to run your new manufacturing business is power. But if limited with finances, you can consider a used generator set to power your business when unexpected blackouts occur.
While there are other items to consider, power is critical, and it can make or break your business if not rightly addressed early. Here is a complete guide on starting your manufacturing business without money.
Purchase of Equipment
Be careful about the equipment you get, especially with a tight budget. There are three things you can do when starting your business.
Purchasing: Like many companies, they opt to buy new equipment, but this direction is for individuals with extra resources and not limited in the usage. However, for your case, this may not sound like an ideal approach unless you luckily get a loan or funding to purchase the needed equipment.
Lease – Leasing is another workable plan you can use to save every coin you have as you start manufacturing business. The lease idea may look like an appealing option since the pricing is affordable but may end up costing you more along the way. Leasing is an agreement to pay for a certain amount after a while. So, unless you are clear about your lease, the purchase of new equipment’s
Renting: This may be the most fitting alternative for you. This option may get you older equipment with a short life expectancy but good enough to help your business run and stabilize. Only go for this to run your manufacturing business for a short period until you have saved enough to replace it with new equipment.
Partner with Others
A mutual benefit partnership can help you start a manufacturing business because it’s hard doing it by yourself. A partnership may help you position your business better when competing with established companies with more financial power.
You may plan to partner with people with finances and start the manufacturing business from scratch together. Alternatively, you can partner with an established manufacturing business with all the equipment, but without your product idea. If your offer and product in mind are attractive, you can benefit without the equipment’s cost.
Commission based agreement is the best approach when agree to create a partnership. Maybe decide about a percentage of every product sold, which may help you save money that would go to expenses.
Look for Funding
There are three ways you can source for funding of your manufacturing business. You can choose any that you feel is ideal for you:
Crowdfunding: This approach is great to fund your manufacturing business idea. You need to share your idea with crowdfunding platform, and those who love your idea will support it.
Go for Loan – Only go for a loan if you have figured out how to get the return on your investment within a given time. The loan can help you fund your business and grow gradually.
Get fund from Manufacturing Business – The other method is to approach investors who are already in the manufacturing business. Remember, this idea lets you surrender part of your business to an individual or company. It should be related to your industry because they are better positioned and can, along the way, offer important decisions regarding your business and products.
Starting a manufacturing business is the best idea when you research properly and identifying the right product for your customers. While it is not easy to start and establish a manufacturing business, initial baby steps can take you to your preferred destination.