Starting a new business is always a risk. But, for those with a dream, anything is possible at any time. To make the dream of owning your own factory business a reality, plan, plan, plan. Decide exactly what the company is going to make and sell. Then research the market for that product and the competition for that market. Get help to write a good, complete business plan. Finally, get adequate financing. The common reason for new businesses to fail is inadequate financing.
Choose the Right Product or Service
People who want to start their own business need to choose a product or service that is needed in the modern world. Study the trends. Look for products that are just starting to be needed. Learn the business trends and technologies and what products they will need. For instance, some of the new trends are products to improve security and privacy, drones and autonomous vehicles, and self-service automation products.
Additional new trends include the Internet of things, artificial intelligence and software bots, robotics in manufacturing and service, and mobile apps for communications, reporting, and collaboration. Where can your business fit within these trends? A manufacturing business does not need to make the whole car, robot, or drone. These new technologies and products are made up of lots of parts.
The person needs to decide what kind of parts or products they want to make in their factory. There are people who can help with your business planning and getting affordable equipment for the business. When starting a factory on a limited budget, purchasing new or used equipment at online auctions might be a possibility. The new business person can purchase equipment online and then when they can afford better equipment, they can sell old equipment online for additional operating capital.
Some of the future manufacturing trends may be new tools to help companies create and test scenarios in a virtual world such as simulating a manufacturing process or assembly line before a product is actually made to perfect the process before it is actually built. Also, solutions that allow people from locations across the world to communicate in a live view to resolve technical and manufacturing issues.
The 3-D printing process and equipment will be increasing the possibilities for designing and making all sorts of new products large and small. So, a product that would ordinarily take five or more parts can be made in one piece eliminating the need to weld or screw multiple pieces together. This new process will allow advancements in products from toys to medical devices and many in between.
Automation allows products to be made in environments that would be dangerous for humans. This new generation of robots and automation will take some jobs away from humans and create other jobs.
Factory environments are seeing advancements in cloud computing and smart sensors. This trend helps business owners extract and analyze information from the factory production line to improve safety and production efficiency.
These trends mean that a different kind of worker will be needed, and products will need to be made to support the new trends such as building hardware, software and firmware, building robots and automation equipment, and so on.
Challenges and Possibilities for New Companies
The trend is for new manufacturing businesses and factories to open. These factories must be globally competitive and up to meeting business challenges such as fluctuating oil prices, currency exchange rates, and raw material prices. The current trade wars can have a large impact on profitability. The factory or other business must have a combination of responsiveness, speed, and business agility. These factors help companies survive market volatility.
The top business challenges are:
- Volatility in the market
- Cost of materials
- Pressures to reduce prices
- Costs of labor and labor productivity and flexibility
- Logistics and transportation costs
- Laws and regulations for the environment
- Regulations for businesses
- Global market competition
- Labor laws and labor regulations
- Global wide geopolitical risks
- Expansion globally and the introduction of new products
- Finding adequate numbers of people with the right skills, training, and talent
- Optimizing supply chain collaboration and performance
- Customer relations and services such as quotes and proposals and meeting demand for customization.
The business owner must meet all the challenges to succeed. The business owner must have a good business strategy, sensitive customer and market needs, and respond quickly. It is important to shift attention quickly to new risks and to capitalize on growth opportunities. The business must be quickly responsive to customer requests and orders.
Attract, Develop, and Retain the Right People
One of the most important ways to assure the success of a new or existing company is to hire good employees from management on down the line. Hiring the best employees, then training them in leadership, performance management, skills, and more helps companies retain employees. Next, the employees must be given the equipment and technology they need to improve productivity. Offer competitive employee benefits packages.
The Future Outlook for U.S. Manufacturing
Though the general impressions have been that manufacturing in the U.S. is disappearing, in the last few years, American manufacturing has actually been on the increase. Real manufacturing is better now than it was 25 years ago. The difference is in manufacturing employment which is down 28%. This is because of manufacturing companies restructuring and using more automation.
Automation is already making up as much as 50% of the manufacturing process. Automation can create a level of accuracy and productivity beyond human ability. The new business must take advantage of the newest manufacturing trends in its new factory business.
But there will always be consumer products that take a personal touch to be made. The products must be designed, tested, and manufactured. What the people of America want and need changes with new trends in clothing, home furnishings, art, accessories, toys, food, building designs and materials, landscape trends, home health equipment and products, and more. So the smart businessman looks for new trends in consumer and business products and makes them sell in front of the competition.
Using the correct percentage of human employees and automation will help the factory operate at top efficiency and profitability. Hire the best people and treat them well for employee retention, then use the best equipment for the manufacture of each product. In addition, the factory must have a marketing and sales staff to sell the manufactured products.
