Launching a manufacturing company isn’t for newbies.

If you don’t have personal

experience in the field, consider partnering with someone who does. Grappling with the
regulatory issues alone can be daunting, even for longtime manufacturers. On the plus
side, you don’t have to be a major manufacturing powerhouse to thrive. According to the
National Association of Manufacturers, today, more than 99 percent of U.S.
manufacturers are small and medium-sized companies.  

Among the benefits and challenges you can expect in your company’s early stages:
1. Big manufacturers are increasingly turning to smaller companies to supply
components.
2. Customers often seek out small manufacturers when they need a quick
turnaround and personal attention to their needs.
3. One of the growing concerns facing small and mid-sized U.S. manufacturers: it’s
getting harder to compete with overseas manufacturers.

Action Steps
The best contacts and resources to help you get it done

 Show me the start-up capital

If you need seed funding to get your business off the ground, should you take out a
bank loan? Look for an angel investor? Borrow from relatives? 

I recommend: Find expert advice in Inc. Magazine’s Guide to Raising Start-up Capital .

AtBusinessFinance.com.com and BusinessPartners.com you’ll find thousands of
business-capital sources.

 Have a plan

Investors expect to see a solid business plan. Even if you’ve already got your funding in
place, you need a business plan to keep you on track. 

I recommend: Check out the award-winning manufacturing-company business

plans  from the Moot Corp. Competition, a program in which MBAs from the world’s top
business schools present their business plans to actual investors. You can find more
sample business plans atBplans.com.When you’re ready to put your business plan in
writing, use a program such asBusiness Plan Pro to give it a professional polish.

 Lease a workable space

When evaluating potential facilities, consider every aspect of your business—from the
amount of electrical power and storage space you’ll need, to whether drive-in truck
access is important. 
I recommend: CoStar Group  and LoopNet list industrial spaces for lease.

 Mind your rules and regulations

According to the National Association of Manufacturers, manufacturers pay 81 percent

more in regulatory costs than do other types of businesses. Before you set up shop, find
out what you need to do to comply with national, state and local regulations. 

I recommend: IndustryWeek magazine provides updates and analysis of regulations

that affect manufacturers. The U.S. Occupational Health & Saftey Administration spells
out safety guidelines for workers. If you have international customers or business
partners, consult the National Association of Manufacturers International Standards and
Regulatory Policy.

 Equip your facility

New technologies are streamlining some processes and making others obsolete. If you
aren’t sure what your plant needs, consult with a manufacturing engineer. 

I recommend: Find equipment and supplies at BuyersIndex. Companies that sell

engineering and manufacturing systems and services are listed on GlobalSpec. For
strictly local suppliers of new and used equipment, consult an online directory such
as SuperPages.com. Locate a manufacturing or industrial engineering consultant
through an online service such aseWorkMarkets.

 Hire a sales rep

If you can’t afford to hire a sales staff to contact and service your customers, consider
contracting with independent sales reps. 

I recommend: Check out the classified ads in Agency Sales Magazine for

manufacturing agents who are looking for lines to represent.

 Market your products and services

Promote your company on the Web and elsewhere by spotlighting the benefits you
deliver to customers. 

I recommend: Develop an appealing Web site with the help of a design firm such
as Carazin Web Group , which has experience working with industrial companies.
At B2B Online you’ll find links to business-to- business marketing resources, including a
directory of advertising and public relations agencies and search engine optimization
firms. Attend trade shows to connect with suppliers and customers. Get the scoop on
tradeshows that serve your markets atBizTradehows. If you’re an outsourcer, make it
easy for inventors to find you. List your company
onThomasNet.com, WebsterOnline.com and MacRaesBlueBook.com.

 Hire skilled workers

Casting a wide net will improve your chances of landing the talent you need. 

I recommend: Look for qualified workers by posting jobs and searching resumes on

multiple Web sites such as iHireManufacturing, ManufacturingJobs.com and Career
Builder.

 Keep up with issues and trends

Nanotechnology and international trade may not affect how you do business today, but
stay tuned. You can’t remain competitive unless you keep pace with the many forces
that impact manufacturing. 

I recommend: Manufacturing.net provides daily updates on matters that affect

manufacturers.IndustryWeek’s Manufacturing 101 department examines the issues and
provides resources such as a glossary of manufacturing terms.

Tips & Tactics 

Helpful advice for making the most of this Guide

 Protect your intellectual property. Ask contractors to sign a non-disclosure

agreement. Also, don’t allow camera phones in the areas of your plant where
proprietary processes or other sensitive information could be photographed.
 One way to reduce inventory costs is to conduct a make-or-buy study of costly
parts. You might find that manufacturing some parts in-house would be more cost-
effective than purchasing them.
 When looking for a facility, consider the location. Is it close enough to major
highways for deliveries to get in and out with minimal headaches? Can workers
conveniently access public transportation?