When you invent a new product, one of the first things you’ll have to do is protect it with a patent registration. After that, you’ll face the challenge of getting your product manufactured on a mass scale. This will require finding the right manufacturing facility to handle the job. In looking for a facility, the following guide can help you.
Search by Production Type
Your first consideration should be to limit your search to the types of manufacturers you need to mass produce your particular product. Each type of facility will have different types of machinery and capabilities, so it is very important to make this distinction. For instance, an industrial manufacturing facility with precision machining capabilities won’t have the same standards or capabilities that a food manufacturer will have in their facility. Since you’ll want the best possible results in the manufacturing of your products, you should look for facilities that have the specific capabilities you will require.
Choose between a Domestic or International Manufacturer
While this might seem like a simple choice, you should take a closer look at the costs of either option. For example, there may be tax incentives for producing your product in another country and having it shipped to a warehouse in the United States. In doing your research, you should look into the taxes and fees you’ll have to pay in another country and how paying those fees will affect you in the United States. In some countries, bribes paid to corrupt officials are a normal part of doing business, but paying those bribes can expose you to prosecution in the United States. Before making a final decision, you should consult an attorney who has experience in international business law to ensure you’re protected.
Examine the Terms ahead of Time
Before agreeing to hire a manufacturer for your product, you should find out more about the terms that will apply to you in the manufacturing of your products. Will there be a minimum order quantity for the first run? If so, how many items will you be required to order? You should also inquire about turnaround time to ensure you’ll get your products in time to fill any orders you may receive from your customers. Another important factor to consider is how much the manufacturer will charge you per item. The price for which you sell your products will have to reflect this manufacturing cost in addition to your own profit, so you’ll want to be sure you can still charge a fair and competitive price.
Verify the Manufacturer’s Quality and Credibility
You can also do a little online research for any manufacturing facility you’re considering. Start by researching the facility on the Better Business Bureau and other third-party consumer review sites. Look to ensure the facility is properly licensed and insured to help you avoid any liability issues that might arise. You should also look at the most recent reviews left by other individuals or businesses who have used their manufacturing services. Look at the positive reviews to find out what people liked about the facility. Similarly, negative reviews will tell you about problems that were commonly experienced by past clients or customers.
Tour the Facilities
Before making your final decision, you should tour any manufacturing facility that you’re considering hiring. As you tour the facility, keep in mind the negative reviews you have read for that facility to see if those issues have been resolved. You should also pay close attention to the use of safety equipment, personal protective gear, and other issues that will affect the efficient production of your items. You’ll want to ensure workers are doing their jobs safely because a workplace accident could result in downtime that will delay your production schedule. You should also pay attention to the condition of the equipment to ensure you’ll get quality results from the use of modern technology. Don’t be afraid to be critical when evaluating a facility’s capabilities since a facility that’s better equipped and operates more efficiently will produce a better quality product for you.
As you go through this process, you should also keep your budget in mind. You may not turn a profit on your first run, so you should make sure you can absorb the financial costs associated with manufacturing your product. In the future, you may earn a good enough profit for you to invest in your own manufacturing facility. In the meantime, adhering to your budget can help you manage your business finances more accurately.