Criteria for Choosing What Product to Manufacture in Business
What is the easiest and cheapest product to manufacture? What factors influence what product to make in business?
Though the manufacturing industry is one of the profitable industries in the economic sector of any country, there are few players in the industry. We have far more consumers than those that manufacture. This is because of the complexities and risks associated with the manufacturing industry.
However, great entrepreneurs do not allow challenges to intimidate and hinder them from doing what they want to do. Rather than seeing the problems, what great entrepreneurs see are opportunities. So, if you want to start a manufacturing business, don’t allow the challenges to intimidate you, consider the benefits.
While it is good to start a manufacturing business, you have to be tactical about it. You shouldn’t just jump into any kind of manufacturing business but you should carefully consider the type of manufacturing business that is ideal for you to decide to want to manufacture in business. This article will discuss some factors that determine what to manufacture in business. I hope you will find it helpful.
The location of a business is an important factor to consider before deciding what to manufacture in a business. Don’t just site your business at any location, make sure that location is favorable for your business.
The manufacturing business needs good infrastructural facilities like a steady power supply, potable water, a good communication system, and a good transport system with motorable roads. Make sure the location you are planning to establish your manufacturing business has these basic infrastructural facilities.
You should consider your business competitors before deciding what to manufacture in business. You need to find out who your competitors are, what they are doing, and what they are not doing. This will help to know what you can do to have an edge over your competitors. You will be also s
The main reason for the existence of businesses is to make a profit by selling to people. If you don’t have anybody buying from your business, you won’t make any profit but run at a loss and eventually, the business will pack off.
So, when you are deciding on what to manufacture in a business, you have to consider your target market- the people that will buy from you. Find out if they really need what you want to manufacture. Make sure there is a high demand for your manufacturing business before you start it.
Proximity to Target Market
Even if what you decide to manufacture in business is what your target market really needs, if your business is far from your target market, you might still not be able to sell very well. This is because people will find it stressful coming from a far distance to buy from you.
Human beings are creatures of convenience. They don’t like going through unnecessary stress before they get things. If there are easier alternatives, they will gladly subscribe to it. When you are deciding what to manufacture in business, you must make sure that your business location is closer to your target market such that they can locate you easily and buy from you.
Availability of Raw Materials
If you want to be making good profits from your manufacturing business, then you must make sure that the raw materials you will be making use of are not scarce but available in surplus. According to the law of demand, when something is scarce, the price for that thing will increase.
So, if the raw materials you want to be using is scarce, it means that you will be buying it at high prices. This will make your finished products to be expensive and people might not want to buy it. When deciding what to manufacture in business, it is wise for you to consider this factor.
Availability of Manpower
One of the things that are very essential for every manufacturing business to have is competent manpower. A manufacturing business is not a solo kind of business that one person can handle all alone.
A manufacturer needs competent manpower who will assist him in carrying out business operations efficiently and effectively. This is why when you are deciding what to manufacture in business, you should find out if there is competent manpower available and willing to work for you at affordable fees.
No matter how great and viable your business idea is, if you don’t have money to start it, the business can never see the light of the day. When you are deciding what to manufacture in business, you must make sure that you have the financial capacity to start the business. It will be so unwise of you to start a business without first of all counting your cost to determine if the resources you have at your disposal can start and finish the business project.