Monthly Archives: December 2019

Starting Manufacturing Business at Home

If you have a plan for running any type of manufacturing at home, you must have a license to do so. In many environments, any home-based business is not permitted. With a home based manufacturing business, even where they are permitted, there will be many rules and laws that you must follow. And you should know that whatever rules apply to large manufacturing companies will also relate to you starting a manufacturing company from home.

These rules and regulations will primarily concern safety, pollution, and quality control issues. You likely have to do some major work on your home to meet these regulations, as well as setting up the necessary equipment for your at home manufacturing business. Getting all the licenses, approvals, certifications, and permits takes time. Doing these things can also be quite daunting.

So daunting, in fact, that most people who are involved in starting a manufacturing business choose to run the business from their homes, but do the actual manufacturing in another location.

By doing this, the facility where they do their actual manufacturing is in a place where all the codes and regulations are already met. They will often also have all the necessary equipment so that all a person does is have to staff up to get their at home manufacturing business going.

Regardless of which way you choose to go, you should understand that it will take time to have everything in place before you can actually start your at home manufacturing business. This is not a start-the-same-day business opportunity. You will need to have a business plan that maps out your strategy for starting your at home manufacturing business.

Some questions to think about as you plan your at home manufacturing business strategy are:

  • Where’s the best location?
  • How will I finance my home manufacturing business?
  • Will I need to hire people?
  • If so, how many people will I need?
  • Should I hire an accountant?
  • What equipment and supplies do I have to have?
  • Do I have the business knowledge I need?
  • Are any special permits or certifications required?
  • Are there any government regulations concerning the product my home manufacturing business will be making?
  • Where do I want this business to be in 6 months? A year? Two years?
  • Am I willing to do what’s necessary to make this business a success?
  • Does my family support my at home manufacturing business idea?
  • Do I have the space I need for an at home office?
  • Would having a partner be beneficial?
  • What sort of tax plan is best for me?
  • Who’s my competition and what are they doing?
  • Is there a need for my product?
  • How will I get my product to market?
  • What sort of advertising and marketing should I do?

As you can see, there are many things to think about when thinking about how to start a home-based manufacturing business. But to be successful, you need to do as much research and planning as possible at the start. This saves a lot of time, money, and frustration in the long run. No one ever regrets taking the time to do something right, but too many people regret jumping before seeing. You do not want to be one of them.

Choosing Manufacturing Solutions

There are many software providers out there. Some giant applications that come with some common functions that can be configured to suit your business needs. This is a broad-based application that aims to serve a variety of industries and verticals. However, there are also many software providers for the manufacturing industry that provide specific solutions to suit industry-specific business needs. Whichever you choose, here are some general purpose implementation of software solutions in a manufacturing environment:

  • Reduce cycle time,
  • Integrate the supply chain,
  • Manage the shop floor,
  • Support an expanding number of distribution channels, and
  • More efficiently use capital.
  • Leverage a robust manufacturing technology to save time and money.

To be more competitive, producers need to integrate processes and workflows from the warehouse to the shop floor to the loading dock so they can reduce production costs while ensuring product quality. Manufacturing software vendors allow their customers to meet the unique needs of business and manufacturing technology by integrating IT assets into more open and adaptable business systems.

Manufacturing software vendors offer the manufacturing solutions and business applications that help companies efficiently design, build, and market products. Manufacturers can swiftly deploy proven applications to accelerate time-to-market while driving down production costs and more efficiently integrating the supply chain.

Many manufacturing solutions includes an integrated set of flexible solutions developed by manufacturing experts to improve production, more efficiently utilize capital assets, and integrate manufacturing with other business processes. The flexibility of the software platform is rather important. Simple and specific software solutions allows you to rapidly deploy software to improve business processes with little need for customization. Large and complex application software may cost you millions of dollars to acquire and implement and the time taken be several years before you can realise the benefits. These large applications require a large IT team to support and implement. Whereas small niche manufacturing solutions allow you to implement them quickly and very low cost and rip the benefit within 3 to 6 months. Many of these small applications are simple and can be easily implemented even without much IT professionals’ help.

For small and medium size companies with short product life cycle and competitive environment, my preference is to go for smaller, more specific solutions which can be implemented with 3-4 months without customization (expect some reporting). Solutions that should be running on standard Relational Database Management System (or commonly known as Database) and open technology in which data can be accessed for analysis easily.

Implementing smaller applications allows you to choose best-of-breed packages and integrate them together. With the availability of Web Servers and various open standard for integration, this dream of best-of-bread is easily realised (with little money).