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.
  • The demand for the product.
  • Research on the usage 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

Setting up an Industry

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

Location 

Setting up an IndustryIt 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. The location that facilitates and is easily accessible to the labor 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 an outflow of finished products and to avoid violations of government regulations that restrict industries to be set up in non-residential areas.

Regulations

Setting up an Industry

There are certain policies and regulations that are set up 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 is of utmost importance.

  • 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 is a whole gamut of steps to be adhered to while setting up 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 set up,  by handholding them at various stages of their setup process and provided the right consultants to other entrepreneurs wanting to set up 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.

 508 total views,  1 views today

Leave A Comment