How to Start Your First Manufacturing Business

/in /by

StrategyDriven Entrepreneurship ArticleSetting up a new manufacturing business is no easy feat. Not only is it a big financial commitment, but you will need to make sure you hire the right people and embark on the best processes, which will help you to create as many products as possible to increase your revenue.

While it is a huge responsibility and will require a great deal of time and hard work, you can trust it will be worth all the effort once you start to enjoy the many rewards. For help getting off to the best start, find out how to start your first manufacturing business below.

Secure Investment

Starting a manufacturing business will not be cheap, and you will most likely need to secure either a hefty bank loan or an investment to launch your new venture. Make sure you detail all expenditure within your business plan, so you will know exactly how much money you will need to get started.

For example, you will need to realistically consider staff salaries, transportation fees, advertisement expenditure, material prices, equipment and technology costs, plus more. To secure investment, you will need a detailed plan of how you intend to use the capital you receive, how you intend to pay it back and when.

Choose the Ideal Location

Choose a location wisely when launching a manufacturing business. For example, you must be within close proximity to great public transport links, so your employees can reach your facility with ease. Your premises will also need to be closely located to motorways to make it easier for logistics vehicles, such as dependable Chicago LTL carriers, to gain access to your manufacturing facility.

Pick the Perfect Premises

You might be tempted to pick a cheap manufacturing premise to reduce your overheads from day one. However, your thriftiness could backfire if you do not have enough access to electricity, have no running water, or the building experiences structural damage, as this could slow down or stop your operations.

Hire the Right Staff

If you are running a large manufacturing business with powerful equipment, you will need to hire a wide range of people to help run your business. Not only will you need to employ experienced production operatives, but you will need to find business managers, market researchers, and quality managers. Each person will take some of the pressure off your shoulders, so you can focus on marketing your business and increasing your profit margin.

Seek Support

You are bound to be filled with passion and enthusiasm when developing your first manufacturing business. As a result, you might think you can handle every challenge you will face along the way. However, there might come a day that you are faced with a huge obstacle and are unsure how to overcome it.

Rather than struggling in silence and making a big mistake that could impact your business before it has even started, you must seek support from experienced professionals to save your business both time and money. Thankfully, there are several organisations you can turn to for guidance or grants, such as the Chambers of Commerce, Federation of Small Businesses, and UKTI.

Tips For Starting A Medical Supplies Business

/in /by

StrategyDriven Entrepreneurship ArticleAs an entrepreneur, you will always want to look at industries which are always in demand so that your company always has a chance to succeed through constant demand. These industries are few and far between, but one which will always be in demand is the medical industry. This means that it is never a bad time to set up a medical supplies business and this could prove to be both a rewarding and lucrative area to work in because there are so many medical professionals that require supplies. This is quite a unique industry and not quite like any other, so here are a few tips for getting started which should help you to succeed.

Identify Target Market

The first thing to do will be to find a target market. There are many medical professionals that require a constant flow of supplies, and it is a good idea to focus on one of these groups so that you can focus all of your efforts on this niche – medical supplies are constantly evolving and changing so it can be hard to stay up to date with all of the different markets. A few good options for a target market include dentists, veterinarians, nursing homes and midwives.

Market Research

Once you have established a target market, you will then want to carry out thorough market research so that you can familiarize yourself with the industry, understand who the competition is and identify any gaps in the market. Identify the products which are high in demand and look at what the competition is pricing these at so that you can set your prices competitively.

Logistics

The logistics will be crucial to success, but this is also the most complex area of the business. Having a suitable warehouse which is carefully managed and dependable shipping will be vital to success. It is a smart move to use medical warehousing and logistics specialists who will be able to provide integrated shipping and logistics solutions.

Business Promotion

As with any startup, it can be hard to establish your brand and compete when first starting out. Business promotion is an important tool early on to make people aware of your brand – in addition to advertising and marketing; you can also use social media, offer deals for new customers and establish authority by posting regular content such as blog posts and newsletters. Additionally, sponsoring healthcare events and getting involved with the local community can have a huge impact on brand reputation and awareness.

Networking

The medical industry is one which can be tight-knit with many opportunities to network and build important relationships. Be sure to attend as many conferences and industry events as possible and meet as many people as possible to grow your brand and increase awareness.

Medical supplies will always be in demand, and this can make it an excellent field to enter as an entrepreneur. It can also be a challenging one to succeed in, but with a little preparation, research and networking you should soon find your feet and start to develop a strong customer base while making a difference to the world.

Safeguarding Your Business Profits

/in , /by

StrategyDriven Entrepreneurship ArticleAfter all the work and investment that goes into building a successful business, the day you start to realize a decent profit makes you feel on top of the world! The primary objective in running a business is to make money from it – even if that’s not the most important aspect to you personally and you love the challenge and the nature of the work first and foremost, you still need to make a profit to stay in business. Having gotten to the stage where the books are in the black and the profits are starting to roll in, how do you make sure that your hard-earned cash is put to best use?

The urge to splurge

Unless you have a superhuman level of self-control, you’ll probably want to buy yourself and your loved ones a few treats. A special night out or a weekend away, new clothes or hobby equipment, or maybe a luxury purchase for your home are all likely ways that you’ll want to give yourself something back from your business. There’s nothing wrong with that idea, after all, you should be able to enjoy the fruits of your labors. However, there are several considerations you need to make before getting too carried away with your spending spree.

Where is the money coming from?

You obviously know how the profit has been generated, but you need to consider how your business is set up and how you are paid out of the profits. For instance, do you get a salary and a percentage of profits, or dividends? You should discuss the structure of your business with your accountant to make sure it is positioning you in the most advantageous place regarding tax and debt liabilities. If you would have to take responsibility for the costs of the business taking a downturn and be liable for its debts, you need to take account of this, and make sure you are covered for such an eventuality.

Where is the money going to?

Whenever you pay out for anything, it’s worth checking whether your purchase could be legitimately set against your tax return as an expense. That doesn’t mean trying to pass off personal purchases that have nothing to do with your business, but you might be better off leasing a car through your company than buying one privately for example. It’s always worth checking how to gain the best advantage, as long as you stay within the law – if there’s one agency renowned for its tenacity, it’s the IRS!

Clearing debts

When you start to make a profit, your first step before deciding how to spend the money you’re making is to clear any debt that may be outstanding. Depending on how you have structured your finances, your business may be showing a profit on paper, but still be liable for repayments to investors for instance. If this is structured as a repayment plan over a defined period of time, you can still take any surplus profits for your personal use. Or your cash flow may require you to have a reserve fund to cover any shortfall caused by slow-paying customers or other short-term drains on resources. Once your business liabilities are confirmed, look at your personal finances. If you have loans, credit card debts, or lease and rental agreements, make paying these off a priority. It will save you money, in the long run, to focus on clearing debt and avoid paying interest on what’s due. You probably want to make an exception for your mortgage, which is more of a high-value long-term investment; unless your profits are so impressive you can afford to clear it now!

Putting money back into the company

Many business owners choose to reinvest their profits back into the business, and this should be your next consideration. If you want to expand or improve your operations, then reinvesting some of your profits is a sound way to grow your business. The money you reinvest needs to be detailed precisely on your accounts to ensure your tax liabilities are accurate, or you will lose out; so don’t splash out on new tablets for all your staff without the expense being recorded and legitimized.

Investing

Once you’ve checked whether you need a reserve fund, cleared any outstanding debts, and decided how much to reinvest in your business, you can then relax and start choosing how to spend your money. Treating yourself is important, as it will give you a thrill to know that you are splashing out on something you truly desire as a result of your hard work and business acuity. However, if you want your money to work for you, you should consider investments. There is an extensive choice of different types of investment available, from high-risk shares to low-risk long-term assets, property investment, bonds, foreign exchange, cryptocurrencies, and many more. The most reliable returns will be in low-risk stocks, but these can take many years to achieve their full potential. High-risk strategies by definition increase the odds that you could lose your money, but you could try a middle road with swing trading strategies. These are specially selected shares that experts calculate are just about to make a significant swing to profitability, which could gain you better returns over a shorter time frame.

The complexity and intricacies of the financial world need experts to exploit them to their full advantage, and if you try and go it alone without seeking their advice, you’ll lose a lot of time on research, and you could well make the wrong choices. A financial adviser can guide you through your investments and make recommendations to suit your needs and aversion to risk, which is preferable to trying to learn enough to make sound decisions by yourself. Most importantly, your CPA should be more than just a number cruncher. They should be able to advise you as to the most efficient way to structure your business and how to get the best from your financial arrangements.

How to Simplify Your Business’s Finances

/in , /by

StrategyDriven Entrepreneurship ArticleIt might sometimes feel as if your business needs to choose between keeping its customers happy or enjoying healthier finances. If you feel forced to pick between the two, your business might never be able to reach its potential, which is why you must find ways to lower your expenditure without compromising on consumer satisfaction.

A few new tactics and tools could provide the solution you have been looking for, so keep reading to find out how to simplify your business’s finances.

Set Financial Goals to Increase Your Revenue

If you want to enjoy a greater annual revenue, you must set financial goals. Doing so will provide both you and your team with targets to hit each day, week or month, which will help to keep your business firmly in the black.

If you fail to meet a target, you can then identify the tweaks and changes you will need to make to your processes. It will help you to stay focused on your income and outgoings, so your business never takes a step backward.

Open a Separate Business Account

Never confuse your personal and business finances again by opening a company bank account. Many banks are happy to provide entrepreneurs with a specific account for a business. It will make it easier to separate your personal and professional income, which will make it much more straightforward to organize your taxes, pay your business expenses, and monitor your revenue.

Dedicate One Day a Month to Reviewing Your Finances

It doesn’t matter if you have the best accounting software or accountant, you must take the time to review your finances. Every business owner must have a firm grip on their income and expenditure, which can prevent costs from spiraling out of control.

A monthly financial review is a must, so set one day aside to review your statements, invoices, and bills. You also should use this day to negotiate with vendors, change suppliers, and find ways to reduce your outgoings.

Setup Payment Reminders and Alerts

With so many tasks to complete and projects to manage, it can be easy to forget to pay an important bill. However, you will soon realize your mistake when your electricity isn’t working, or your water has been switched off.

Never miss an important payment again by setting up an alert in a Google calendar. You will then receive a notification to pay a bill to help keep track of your finances.

Streamline Your Amazon Listings

Do you sell products through Amazon? If so, you can increase both your presence and selling power with Amazon market integration software. It allows you to manage both domestic and international accounts, so you can easily fulfill your customers’ orders to their exact specifications. You can also manage both your availability and pricing to maximize your cash flow. Visit sellercloud.com to learn more about the powerful platform that can increase your finances.

Go Paperless

Companies can often be guilty of holding onto unnecessary paperwork. By doing so, they can over complicate their filing systems. Organize your finances by keeping only the documents and statements you need and then shred the rest. You also should keep transactions and contracts in the cloud if possible and go paperless so that you can access them at any point and on any device.

Do You Have The Right Leadership Qualities?

/in , /by

Are you planning to start a new business during the next few months? Would you like to make sure you have what it takes to succeed? Then take a minute or two to consider some of the information on this page and make sure you understand the most crucial leadership qualities you will require. If you don’t have them at the moment; now is the best time to improve your skills.

Communication skills

If you struggle to communicate with your employees or clients; you will never reach your full potential in the business world. Communication is vital, and you need to make sure you can explain your ideas and highlight concepts in a way that others grasp quickly.

Problem-solving skills

You are going to encounter many problems and stumbling blocks in the business world. Success lies in your ability to solve those issues and overcome anything that blocks your path. If you aren’t the best problem-solver right now; you need to work on that ability.

Project management skills

As an entrepreneur; it is vital that you plan working practices that ensure your employees become as productive as possible. Maybe you would benefit from taking a project management course or something similar before you push ahead?

Now you know about some of the most critical leadership qualifies for entrepreneurs; you can begin to improve your skills and make sure you get everything right with your new venture. Regardless of the nature of your business idea, the same rules will apply. Take a look at the infographic for more tips.


Design created by USC Online