Top 4-Things to Consider Before Setting up an Industry

All you need to know:

Research-

As basic as it can get, the first thing you need is a product. Thorough research on what to be manufactured can be attained by the following steps:

  • Market research on the trending products.
  • Demand of the product.
  • Research on the usage which depends on targeting the right customers.
  • Knowing the market in terms of competitors.
  • Price of the commodity including manufacturing cost, labor, transportation and any other overheads.

Planning –

Once the awareness of the market and the product is obtained, the next thing to look forward to is the cost and budgeting. A business model is very important at this stage, a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing.

  • Cost – Direct (for production, labour, raw material), Indirect cost (admin, factory overheads), Variable, setup and Fixed costs.
  • Sources of fund – Loans for industrial ventures, credits, venture capitalists, self-funding, angel investment.
  • Finding Resources – raw material suppliers, transport facilities, customers, an efficient team.

Location –

It plays a major role for a manufacturing unit; ample space is a necessity and most of the capital would be spent on the infrastructure and machinery. Renting and leasing at the initial stage is most preferable as an attempt to buy infrastructure would be a riskier move.Location that facilitates and is easily accessible to the labour and suppliers, customers, with all the amenities, in the right market as well as located in an industrial area is a necessity for smooth running, inflow of raw materials to outflow of finished products and to avoid violations of government regulations that restricts industries to be set up in non-residential areas.

Regulations –

There are certain policies and regulations that are setup for business and for subsectors like chemicals, food, pharma etc which are highly regulated. These require stringent certification and approval for functioning and establishment and adhering to these regulations are utmost important.

  • Product specific regulations (for explosives, breweries, hazardous chemicals)
  • Industrial Licensing – Department of Industrial Policy & Promotion (DIPP)
  • Location restrictions (non-pollutant area, residential areas)

Overall there are a whole gamut of steps to be adhered to, while setting up of industries and this can seem like an arduous task without a helping hand. SolutionBuggy has more than 950 projects listed on the dashboard and 160+ entrepreneurs have received help in new industries setup,  by hand holding them at various stages of their setup process and provided the right consultants to other entrepreneurs wanting to setup manufacturing industries. It is an exclusive and dedicated platform for the Manufacturing Sector in India, which seamlessly bridges the gap between the industrial sector and professionals for on-demand consultation and services including projects. It connects SMEs and Large Scaled Industries with Industrial Consultants / Experts and Industrial Product Suppliers over the internet for collaboration and success.

 

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About the Author: Arjun N

Founder of SolutionBuggy who has about 15 years of experience in manufacturing industries. An entrepreneur with astute sales and marketing skills.
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