Like any other business, the manufacturing sector also has been drawing a lot of attention from first-generation entrepreneurs who form the bulk of the MSME segment in India today. This also leads to the most pertinent question as to what are the keys things that an entrepreneur should concentrate upon, before starting the unit.
1. Market research
Do thorough market research to understand which is the best industry to set up in your location and budget and identify your key USPs to implement the manufacturing business idea. You could either depend primarily on secondary market research or hire professionals to do a complete on-ground analysis and submit a complete project report. There are various types of research reports such as feasibility analysis reports, preliminary market research reports, Techno-Economic feasibility reports (TEFR), and Detailed Project reports (DPR) which cover different aspects of the project proposal.
2. Site Selection/Land acquisition
This is mostly done by the industry/ entrepreneurs in consultation with local industrial boards and land acquisition tribunals. But some considerations to keep in mind are food processing plants should not be set up next to chemical units, textile units, abattoirs, or poultry units. Similarly, there are a few other restrictions based on the type of industry selected.
3. Plan your finances/Funding
once you have zeroed on the right manufacturing business idea, you should get the best project consultants to help you sort the finances. Most of the MSMEs can get loans at preferential rates and also there is a lot of govt. Schemes from SIDBI etc, that a good industrial consultant can introduce to you.
It is clearly understood that a very well-qualified consultant who can liaison with the government and get the required licenses, approvals, and certification will not only save money but can also help with the requirements for exports and international markets.
5. Start BD/Sales activity
From past experience, we have seen that it is imperative that the BD and Sales activity is started as soon as the TEFR is completed as this gives more time to cater to the changing market demands. We have handled projects across different domains pertaining to Sales and BD activities within India and in international markets. The consultant shall also help in getting through entry barriers for new products
6. Shop layout formation/ Building erection:
On many occasions, the industry looks for capable designers who can suggest the best methodology in formulating the shop floor design and erection of building and equipment in the setup phase as reworking the shop floor design later will lead to loss of time and manpower
7. Plant setup and machinery procurement
Since the industry layout design and actual implementation require a lot of technical expertise, we suggest using the best industrial consultant to help you with this. This will ensure that the manufacturing industry’s best practices are adhered to from the start itself. Procurement is also a tricky affair and a good manufacturing consultant can guide you in the best way to get the types of machinery at the best price from domestic or international markets. Most often people rely on Chinese imports but with heavy import duties on imported goods and subsidies for buying from a Make in India entity etc, many times local machines end up being cost-effective.
8. Raw material and human resource
Raw material procurement is another concern where it is estimated that there could be a difference of 16-19% of the total cost of production based on where the raw material is procured. Hiring the right talent as well plays an important role as most of the times, getting access to the right local talent pool is very crucial
9. Load production, prototyping, and Quality checks:
A key aspect that most new entrepreneurs overlook while setting up a new plant is the importance of testing and to have very good experts who can help the industry to complete the prototyping and testing phase. Typically industries catering to food, pharma, and chemicals have to test their finished goods and get certifications/quality checks which are very stringent.
10. Supply chain management
Getting the right market entry may give the best sales but without a good logistics and delivery plan, order execution will be affected which in turn will affect customer satisfaction. Many times a good distribution and SCM is required to get access to customers especially in B2C and FMCG goods. Also in the machinery and equipment sector, since none of the products are built to last to eternity, a good company always acknowledges that product failures are part of the deal and hence ensures a very robust process to make sure that a highly skilled customer service team shall be responsible for after-sales service.
Overall SolutionBuggy has helped numerous entrepreneurs to set up manufacturing industries by giving them access to the right consultants who have guided them through the entire process of setup and operations of the manufacturing industry.
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