Manufacturing Startups: What You Need To Know
With ever-advancing technology, cheap outsourced labor, and globalized logistics providers it should be easy to startup a manufacturing company, right? Wrong. The challenges have simply become greater. Manufacturing requires a highly skilled workforce; capital intensive equipment; customers demanding ever-changing products and focus on internal procedures to stay competitive.
David Crain, Director of Entrepreneurial Services, Magnet joins us to discusses the challenges, several ways to increase your odds for success and one shortcut many entrepreneurs are using to avoid startup issues all together.
So what does David suggest? Here is a peek at what he discussed:
- The three factors that determine — success are 1.) sufficient capital; 2.) the quality of your workforce, from the shop to the managerial floor; 3.) having all of the latest techniques and processes in place.
- Reduce costs — by outsourcing and forming strategic partnerships for the different processes involved. Outsource the engineering or some other aspect of the process. That way, you’re not absorbing all of the overhead expenses and your costs are kept low.
- Everything is global — from suppliers to customers and things are a lot more technological and process oriented nowadays. The technical skill levels of the workforce employees are higher than in the past as well. Complexity – as well as opportunity – is rising.
Opportunities abound in the manufacturing industry and David provides many of the keys necessary to do it successfully using his insights.
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December 10th, 2008 at 3:00 am
two thumbs up for you David! you really did give a clear insights for us small business owners and for bootstrappers like me.
December 10th, 2008 at 1:12 pm
Thanks Bianca. It was a lot of fun and my pleasure. I hope your startup is a huge success!
December 11th, 2008 at 1:53 am
You’re very welcome, Dave. 🙂
December 15th, 2008 at 11:36 am
I’ve always wondered about how you begin to manufacture a product. It seemed like there was a lot involved but David did a good job at giving us some useful insight.
December 16th, 2008 at 1:43 am
Correct Amanda! A LOT really has to be involved in doing so.
December 16th, 2008 at 2:08 pm
I, too, have always wondered about the manufacturing process as it seems such a huge undertaking. David did a really great job of breaking down the different things to think about and particular areas to focus on.
It gave me a much better understanding of the topic. Thanks for such a useful, helpful show, David. . .