Author Topic: How do you go about starting a small manufacturing business?  (Read 14057 times)

Offline vtsteam

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Re: How do you go about starting a small manufacturing business?
« Reply #25 on: July 01, 2014, 09:50:03 PM »
I've run a small business for 34 years (very small now) and also worked for a wage at times simultaneously. I started out as a craftsman renting shop space producing high quality wooden boats and quickly learned that it was barely possible to survive that way. Many of the supposed "business" requirements dropped by the wayside -- business checking accounts, business phone, renting space, etc.

I'm in total agreement with what John Stevenson has said. The simpler and least "business like" you can make it, starting out, the better.

Just make a product, a single item, and sell it. Don't spend anything on anything. When it sells you will have a feel for what your time and materials will be and what the market will be. You can improve on both of those over time, since it's a one-off, and you are an unknown in the market, and you expect to change both of those, but your expenses will also increase over time.

You will likely find that the reduction in costs even when doing multiples and jigging, as well as an increase in the selling price by becoming better known, isn't dramatic, because you start to have to become more of a business, unless you have very good luck and some kind of unanticipated advantage -- like a famous band using your instruments.

The real problem is likely to be that what you love isn't being a business man, it is making things. Yet to become reasonably self supporting you may need to like being a business man, and spend more time doing that than making things.

I'm not saying it's impossible, I'm just saying it's hard, and usually not as much fun as you expect.

One other really crucial piece of advice, and that is:

Information is much more marketable, and profitable, than real goods. If you know how to make something that is difficult, and to which you bring unique insights and talents, that can be your real product. People will buy information on how you build your instruments, if what you present is unique, truthful, well done, and interesting.

You already have a start on that with your interesting, and high quality videos. Don't ignore that aspect of what you like to do.
I love it when a Plan B comes together!
Steve
https://www.youtube.com/watch?v=4sDubB0-REg

Offline S. Heslop

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Re: How do you go about starting a small manufacturing business?
« Reply #26 on: July 02, 2014, 03:11:42 PM »
Reading this, you aren't looking to start a business, you're looking to start a hobby !

I prefer to think of it as a 'project'!

Hobby or not though, I don't want to get caught out by some technicalities of the law when I start manufacturing items commercially.


One other really crucial piece of advice, and that is:

Information is much more marketable, and profitable, than real goods. If you know how to make something that is difficult, and to which you bring unique insights and talents, that can be your real product. People will buy information on how you build your instruments, if what you present is unique, truthful, well done, and interesting.

You already have a start on that with your interesting, and high quality videos. Don't ignore that aspect of what you like to do.

I'm not sure if I fully understand what you mean. Do you mean as in selling plans, or just marketing stuff with videos?

I think the problem with selling plans is that you need to keep the methods simple, and that makes things difficult to build to build in general when you're unable to use things like a lathe or a spindle sander. I might be able to sell half-finished banjos as kits though, with all the more difficult stuff already finished!

Offline awemawson

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Re: How do you go about starting a small manufacturing business?
« Reply #27 on: July 02, 2014, 03:42:39 PM »
"I might be able to sell half-finished banjos as kits though, with all the more difficult stuff already finished!"


But then you are effectively trying to compete at the bottom of the food chain on price, where you will not make much mark up and not gain the satisfaction of a finished well made product.
Andrew Mawson
East Sussex

Offline ieezitin

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Re: How do you go about starting a small manufacturing business?
« Reply #28 on: July 02, 2014, 08:17:00 PM »
Heslop.

A wise man once told me " Rich men don't pay taxes". he was right.

running a business takes time to unfold all the advantages, experience will only give you this knowledge. it behooves you to go into business, the freebies are unbelievable.

its a game you need to learn how to play, once you understand the rules you're in... no one is excluded.

...... running a business is duck soup, if you don't get it, you're a drone in the abused world, financially speaking.

i have been self employed and employed for 35 years, i do ok, so should you, you just need to understand how to play the game...

the funny thing in all this is, your product has nothing to do with it....

if you want to know more you re welcome to email me.

Anthony.
If you cant fix it, get another hobby.

Offline vtsteam

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Re: How do you go about starting a small manufacturing business?
« Reply #29 on: July 02, 2014, 08:49:41 PM »

One other really crucial piece of advice, and that is:

Information is much more marketable, and profitable, than real goods. If you know how to make something that is difficult, and to which you bring unique insights and talents, that can be your real product. People will buy information on how you build your instruments, if what you present is unique, truthful, well done, and interesting.

You already have a start on that with your interesting, and high quality videos. Don't ignore that aspect of what you like to do.

I'm not sure if I fully understand what you mean. Do you mean as in selling plans, or just marketing stuff with videos?

I think the problem with selling plans is that you need to keep the methods simple, and that makes things difficult to build to build in general when you're unable to use things like a lathe or a spindle sander. I might be able to sell half-finished banjos as kits though, with all the more difficult stuff already finished!

Well information takes many forms, plans, instructional videos, books. And just because a person doesn't (yet) own a spindle shaper or lathe, doesn't mean they won't buy plans or other info. Many people like to dream about what they would eventually like to be able to do. If that dream is strong enough, they will in fact, some day.

Meanwhile, plans, books or videos are affordable, and a fine thing to look at, if well done.
I love it when a Plan B comes together!
Steve
https://www.youtube.com/watch?v=4sDubB0-REg

Offline S. Heslop

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Re: How do you go about starting a small manufacturing business?
« Reply #30 on: July 03, 2014, 06:03:39 AM »
Well information takes many forms, plans, instructional videos, books. And just because a person doesn't (yet) own a spindle shaper or lathe, doesn't mean they won't buy plans or other info. Many people like to dream about what they would eventually like to be able to do. If that dream is strong enough, they will in fact, some day.

Meanwhile, plans, books or videos are affordable, and a fine thing to look at, if well done.

A few of the people i'm subscribed to on youtube do sell plans. Matthias Wandel was able to quit his job and live off of his videos and plans.

I do like Matthias's format though. He more or less shows you all the 'secrets' of how its built in videos, and the plans just get you the exact dimensions and a more step-by-step construction. It comes across as very honest, especially after seeing more than enough videos and websites where you can tell right from the start that these people are just trying to sell their product or plans and aren't going to show you anything for free. I'm not so keen on giving people like that any money.

That said, i'm not sure how many people would want to buy plans for banjos when there's already a fair few available free online. I've got some ideas for some slightly more unusual banjos though, so who knows. It might be worth a try on top of selling the things themselves.

Yeah though, I do worry about presenting myself 'right' in terms of selling banjos though. I was looking at banjo videos last night and alot of guys were talking about stuff like TOP SECRET ALLOYS they developed for making the ideal tone rings, and other nonsense like that. But it's the kind of thing that someone willing to spend up to £3000 on a banjo would probably like to believe. Although maybe a more down to earth attitude could be a selling point!

Offline BaronJ

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Re: How do you go about starting a small manufacturing business?
« Reply #31 on: July 03, 2014, 09:04:43 AM »
Reading this, you aren't looking to start a business, you're looking to start a hobby !

I prefer to think of it as a 'project'!

Hobby or not though, I don't want to get caught out by some technicalities of the law when I start manufacturing items commercially.


The point is, a business provides a living income,  a hobby is something you do, first because you enjoy it, second because it may help towards the cost of doing something you enjoy.

Running a business is hard work, a hobby is pleasurable !

As far as the "technicalities of the law" are concerned, this is part of basic research.  Start with consumer rights !


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                     Baron

Offline vtsteam

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Re: How do you go about starting a small manufacturing business?
« Reply #32 on: July 03, 2014, 09:28:48 AM »
Mathias Wandel is a very good example. If you let the idea "it's been done before" take hold, you'll never do anything. Many things he has done have been done before, or since. But it is the person and the style of design as much as the finished object that is important. People like him and want to buy his plans. There is integrity and a positive attitude that comes through. That also helps him to maintain his business instead of get fed up with it, and tired. It is very possible to get burnt out if you don't maintain interest in even a successful business.

We tend to focus on the product when imagining a business. But the real product is the business. And it has a personality. What will that be?
I love it when a Plan B comes together!
Steve
https://www.youtube.com/watch?v=4sDubB0-REg

Offline S. Heslop

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Re: How do you go about starting a small manufacturing business?
« Reply #33 on: July 03, 2014, 11:03:09 AM »
The point is, a business provides a living income,  a hobby is something you do, first because you enjoy it, second because it may help towards the cost of doing something you enjoy.

Running a business is hard work, a hobby is pleasurable !

As far as the "technicalities of the law" are concerned, this is part of basic research.  Start with consumer rights !

A few years ago I got into trouble volunteering at a place when I told the Boss Man that I was there to 'have fun'. The guy just couldn't comprehend the idea of having fun while also working (even if it was volunteer work!). His interpretation of me saying I was having fun while working must've been something like 'i'm mucking about and doing things I shouldn't!', and he thought I was trying to be cheeky. Weird fella.

I don't think it's too unusual to get satisfaction and enjoyment out of hard work though. Plus a hobby that doesn't challenge you is going to be a boring one!

Offline bp

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Re: How do you go about starting a small manufacturing business?
« Reply #34 on: July 27, 2014, 08:24:26 PM »
At the risk of sounding cynical......

Q  How do you get to run a small manufacturing business
A  Start with a big manufacturing business

best of luck!!
cheers
Bill

Offline Fergus OMore

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Re: How do you go about starting a small manufacturing business?
« Reply #35 on: July 28, 2014, 06:36:21 AM »
My wife has just passed me the back page of the Money section of yesterday's Sunday Times about the Poundland guy. Lot of info for £2.50.

Chinese mate of mine set up with £10. I set up as a kid of 14 across the hill- in **** row- from you with a packet of seeds. I retired at 55. Buy a packet of seeds.

I flogged the stuff in the Green Market in Newcastle and find it all quite amusing. Another one of my school mates pickled onions in Scotswood Road.

Write about- but after you have done it.

One of my mates offered me a couple of alpacas, You could start a grass cutting service.

No charge for the business advice, eh?

Norman


Offline mosey

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Re: How do you go about starting a small manufacturing business?
« Reply #36 on: July 29, 2014, 01:05:16 PM »
Fergus,
I know this is not really an answer to your question, but it may serve you.
The first thing to determine is whether you are in it for profit, or is it just a hobby.
In the US we have an organization called SCORE, a network of volunteers who work free as advisors to small startup and ongoing busnesses answering every imaginable question. They are retired business executives from all fields. Perhaps there is a similar group in the UK?
Otherwise, I suggest that you speak to others who are or were in a small business.
Mosey

Offline Fergus OMore

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Re: How do you go about starting a small manufacturing business?
« Reply #37 on: July 29, 2014, 02:43:31 PM »
Perhaps Mr Heslop will read this. Of course, Mosey such facilities do exist not only in commerce but in health and welfare and I am grateful for your comments.


Offline BaronJ

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Re: How do you go about starting a small manufacturing business?
« Reply #38 on: July 29, 2014, 04:45:17 PM »
Hi Mosey,

Fergus beat me to the punch there  :thumbup:
I was going to point out that your comment should be directed at Mr Heslop.  :Doh:

Other than that, I agree with your comment !
 
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Offline mosey

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Re: How do you go about starting a small manufacturing business?
« Reply #39 on: July 29, 2014, 05:22:51 PM »
Ooops, yes of course, should have addressed Mr. Heslop.
This is a complicated subject, best suited to one on one conversation.
I hope people realize that business and hobby are often confused, but are very different animals.
Business is simply doing it for profit.

There is no law against enjoying your work in business, it is just not required, but profit is! I did both for 50 or more years.
Mosey

Offline BaronJ

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Re: How do you go about starting a small manufacturing business?
« Reply #40 on: July 30, 2014, 11:32:01 AM »
Ooops, yes of course, should have addressed Mr. Heslop.
This is a complicated subject, best suited to one on one conversation.
I hope people realize that business and hobby are often confused, but are very different animals.
Business is simply doing it for profit.

There is no law against enjoying your work in business, it is just not required, but profit is! I did both for 50 or more years.
Mosey

Hi Mosey,

Snap. :thumbup:  In my case about 40 !
Best Regards:
                     Baron