5 Questions to Ask Yourself Before Starting a Manufacturing Business

Although it's true that the manufacturing industry can be lucrative, not all that attempt the path will succeed. Different products pose unique benefits, challenges, and roadblocks that need to be factored into the business strategy. This is precisely why the first step of choosing to start a business is often the hardest, as high levels of commitment and persistence are detrimental to the business' success.

This article aims to dive deep into the 5 questions to ask yourself before committing to start a manufacturing business.

1. What is your WHY?

Understanding the reason why starting a manufacturing business is important to you is like having or topping up fuel for the road trip ahead. It gives you strength and energy when the road gets bumpy and keeps you going even when the destination seems far. Ask these questions to dig deep and discover your motivation:

• Why is starting a manufacturing business important to me?

• Why is that specific reason important to me?

• What changes would it bring to my life?

Aim to find internal reasons that are important personally to you that are not imposed externally.

2. How does the manufacturing business that you want look like?

If WHY is the fuel for the road trip, vision is the end goal or destination. Having a clear vision will allow you to choose which roads are best suited for the journey. Therefore, you will be better equipped and knowledgeable when making important decisions for the business. Explore the answers to the questions below:

• What is the product that the business will specialise in?

• What is the size of the business?

• What is the target profit for the first, third, and fifth years?

• What other words would I use to describe the ideal manufacturing business?

Be straightforward and realistic when answering the questions above, as the end goal needs to be achievable for you to maintain motivation when situations get harder.

3. What are the possible challenges to overcome?

While having a strong motivation and vision can take you places, anticipating and preparing for the hurdles or roadblocks that may come your way can make the journey just that much easier. As highlighted by the notable Confucius, "Success depends upon previous preparation, and without such preparation there is sure to be failure." Diving deep into the questions below will help you formulate an action plan for the journey ahead:

• What are the start-up and setup costs involved to establish this business?

• How does the product lifecycle look like?

• Who are my competitors?

• How will I price the products?

• How will I market the products?

Conducting a market research can provide helpful information and details about the business.

4. Who are the people that can help you in this journey?

An African proverb once stated, "If you want to go fast, go alone. If you want to go far, go together."

Although this is highly individual to each business, but it may take awhile until profits or positive results can be reaped, which could be mentally exhausting for all stakeholders involved. This is exactly why having a solid team plays an important role in keeping the spirits up. Test the people around you with these questions:

• How supportive are my business partners and core team?

• Would you be able to trust their abilities, character, and performance?

• How sure are you of their willingness to struggle and push through the hard times together?

• How would you gauge their commitment levels to the shared vision?

5. How sure are you about this choice/decision/commitment?

Adding upon the car and road trip analogy, finally making the commitment to launch the journey is equivalent to finally starting the car engine. The choice to do so is not one that should be taken lightly, as although there can be multiple opportunities to turn around and stop the journey, time and resources would have been wasted. The better scenario would be to consider all the four questions listed above and making sure that you are willing to put in 100% effort towards the goal despite fully understanding the possible challenges.

Final Words

Attracted by the impression that the manufacturing industry is a profitable and money-making one, some businesses commit too soon without fully considering the full extent of their choices. If you are looking to explore the possibility of building a manufacturing business and are looking to conduct market research or form a business strategy, XXXX Consulting is the best in the business. With over 20 years of experience, we have helped countless startups make their dreams come true.