Starting a business is usually a massive financial responsibility; becoming a manufacturer is maybe even more so. In addition, setting up a factory can take time. There is a lot to think about, which can mean long hours initially until the factory is up and running. However, factories can also be highly rewarding when done right. Keep reading for all the considerations you need to make when setting up a factory.
The Business Model
Before you do anything, you need to put some thought into your business model. You need to think about the product that you want to produce and whether or not it has a place in the market? Is it going to make your business enough money? You need to learn more about your competition so that you can better differentiate yourself from them. What administrative tasks need handling, and do you plan to take care of them or hire someone to do it for you?
The Area
You surely should have an idea of where you want your factory to be located but before you commit there are a number of things that you need to consider in regard to the premises. Firstly, while it is important that you can afford the location, choosing the cheapest option might not make the most business sense. You need an area that is relatively easy to access both for your staff and for any deliveries that need to be made or taken from your premises. Can you access help from the government or the local authority if you need to? On some occasions, you might be eligible for a tax break by choosing to set up in a certain area, so it is definitely worth putting the thought into and considering your options carefully.
The Premises
After you have started to narrow down the geographical area where you want to set up your factory in, you need to start thinking about the factory itself. The first consideration you need to make is what exactly your factory is going to be producing. This will obviously affect your needs in terms of space and power. You need to be able to fit in all the machinery that you need. What are your storage needs? Will you be able to easily set up the telecommunications systems that you need? Does the location come with its own parking? If not, how do you expect your staff to get there? Finally, is the floor strong enough to hold up against the machinery and heavy foot traffic? If not, it is pretty simple to install new flooring like GRP grating from Lionweld Kennedy
Your Support Network
Everyone needs a support network behind them; it is hard to achieve much in life if you can’t lean on other people occasionally. Setting up a business is hard work, and the truth is that you will need to have a good support network in place to help you through. In addition to your contacts, both professional and personal, that you can reach out to, you should also do your research into organisations that can provide you with help and support. For example, UKTI, the Chambers of Commerce and the Federation of Small Businesses offer grants, guidance and support, which can act as lifelines when setting up your new business venture. Finally, it might also be worth reaching out to a business coach or finding yourself a mentor within the industry. It can be beneficial to have someone that can act as a sounding board, to answer your questions and whose expertise you can benefit from.
Your Employees
In addition to the amenities local to your premises, you also need to think about the potential employees within the area. Obviously, it makes sense to provide employees with training regardless, but having an employee pool with prior experience with a hands-on job can make things a lot easier. You might have a phenomenal product being made in a factory that is perfectly optimised for performance. Still, if you haven’t got a good team of employees, then the likelihood of your success is reduced. You need to have a skilled labour force. Consider your hiring processes. What qualifications or experience do you want your employees to have? What are your non-negotiable specifications versus your desirable traits? Where are you going to advertise vacancies? You might be able to advertise vacancies in specialist publications to narrow your scope of who you are advertising the vacancy to.
The Takeaway
While all of the considerations mentioned might seem fairly obvious, you would be surprised at how many people overlook them. When it comes to starting a new venture, it can be easy to get distracted by other things as your excitement builds. You might be surprised by how much taking care of the smaller details can aid in your business’s success.