Sustainability is essential but difficult when the industry is as old as manufacturing. You can probably be ahead of the curve.
Don't know how to expand the heavy duty manufacturing factories ?
Ready to leap into the big league. There may be many hurdles you'll have to come across. Are you ready for them?
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The manufacturing industry in India is a fast growing sector that has been gaining considerable momentum since the advent of Make In India and the implementation of GST. It is projected to reach a value of USD 1 trillion by 2025 and has the potential to account for 25-30% of the nations GDP.
If you want in on the action in this sector and intend on starting your own manufacturing business, you will first need to have a clear idea on a number of elements relevant to the industry. First off, you will need to ask yourself why you want to start a manufacturing business.
Starting a manufacturing business requires a huge level of commitment in terms of resources, both financial and intangible. You will need to invest a considerable amount of time and money, with a large financial investment being required at the initial stages in order to procure the required raw materials, machinery, and equipment. You might not be able to pay off the starting capital until the end of the manufacturing process when your product is finally sold.
You might already be having an idea of what you're going to produce; in case you don't, you will need to carefully evaluate factors like demand, availability of raw materials, location and geography, transportation and production costs, among a list of other variables before arriving at a product that would best suit you.
The next step is to conduct the appropriate degree of market research to arrive at a clear understanding of how you can optimize your start and progress. Market research can also help mitigate business risks, identify any harmful or potentially harmful trends in your sector, and discover valuable sales opportunities.
Here are a few areas of research worth looking into:
Product: Once you have an idea of what you want to produce you can go on to the next step and research your product through and through. Get a good idea of what it is and its place in the market. An in-depth analysis of the costs involved at every stage of production, including necessary facilities, logistics, raw materials, machinery, and employees will help you get a good understanding of how you need to go proceed.
Customers: It is of utmost importance to be clear on who's going to buy your products. Conduct an appropriate research to identify your target audience. This will help you develop an effective marketing strategy to communicate with them. Your product and its target audience also has a role in determining which route to take by way of sales. If your product has a smaller market, you can conduct direct sales yourself, while with a larger audience, you can take the wholesale route.
Competitors: You might not be able to readily match many established players in the market but you can learn a lot by just observing your competitors. Look at the way they conduct their business, and the strategies they employ and adapt them to your specific business needs wherever you see fit. Inversely you can observe some of the things they aren't doing and explore those areas to set yourself apart. You can also create a niche for yourself by targeting a more local demographic and gradually work your way upwards.
Costs: There are many levels of costing in the manufacturing business such as fixed costs, variable costs, direct and indirect costs. Mapping out your costs will help you conduct business more effectively. It will also help you arrive at the right pricing for your product in the market. Let's take a look at some of the costs applicable to your business:
Evaluating all these costs will help you ascertain the cost per unit of your product, which in turn will help you price your product correctly.
In order to set your business rolling, you will need to strategize and formulate a business plan. An effective business plan is one which identifies your goals, determines whether they are attainable and sketches out the methods you are going to employ to attain those goals.
Your business plan can contain information about your company, your product, raw materials, facilities and machinery required, your manufacturing process, the target audience for the product, manufacturing costs, logistics, management modules, details regarding how many employees you will need, marketing strategies, etc. You can also hire the services of professionals to help you sketch out your business plan.
The next step is to chalk down a plan regarding how you will generate the required funds to set your business in motion. Here are a few funding options that you can look into:
Go through our article on Capital Generation Opportunities for more information on financing your business. You can also get in touch with a Relationship Manager for advice and assistance suited to your specific needs.
Policies & Regulations
The manufacturing industry has a large variety of subsectors within it and each has its own set of policies and regulatory bodies that are key to its establishment and functioning. It will be important for you to look into the various Acts & regulatory bodies relevant to your business. Here are a few:
There are many more Regulations, Acts and laws that you need to be aware of and it is advisable to hire a business lawyer who can counsel you on matters crucial to the setting up of your business.
Starting your own business will be a significant milestone which presents its own set of challenges and learning opportunities. Here's wishing you the best for your new venture.
For more information, take a look at this article on running a manufacturing business.
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