You have a brilliant business idea and have done thorough market research, the only thing holding you back is finding a right factory for your products. Finding a reputable factory to work with is one of the biggest challenges and if you can’t source products effectively, you’ll have difficulty scaling.
It’s quite unfortunate that most businesses focus so much on optimizing their websites and validating product value propositions and forget one thing, finding the right manufacturer. Now, these are undeniably important tasks, however, all too often they are prioritized at the expense of other vital tasks that are the core foundations of making a business stand firm till the end.
Many entrepreneurs find themselves hitting a brick wall and losing momentum when sourcing products. This is because finding legit product manufacturing suppliers and manufacturers is not an obvious thing. One has to perform extensive research, having this in mind you will understand that finding a factory that provides exactly what you need is not a walk in the park.
The right manufacturer will influence everything from the overall quality of your product to your ability to deliver orders on time and replenish the stock promptly. It’s one of the most important decisions you can make for influencing the future success of your business. If you want to avoid losing loyal customers early in your business ensure that the manufacturer or supplier you choose is worth every penny you give them.
This article is for any business owner that needs to have their products manufactured but is confused about where to begin in the factory selection process. In this article, we’re going to look at the basics of sourcing a manufacturer for your next project. We will look at why choose overseas manufacturers, are original products worth the fuss, and, finally what to look for. Let’s begin:
Understanding the Basics
Manufacturing is a complex process and it can be a daunting and intimidating experience. Remember that when choosing a manufacturer is choosing your business partner or it’s like choosing a life partner. Every decision you make counts.
You want a manufacturer that will produce products at lower prices and yet give quality products. With this in mind, low-cost countries are the best to go for.
Yes, whether you choose to stick close at home or going overseas there are challenges that you will encounter. For example, when you chose US factories you need to understand that much of the manufacturing base has moved overseas that you may not be able to find a factory that can create your product, and not all product categories are covered. Besides, American factories can be more expensive than Chinese.
Why Choose Overseas Over Local
- Cost-effectiveness – Overseas manufacturers are usually less expensive than American equivalents, due to differing labor and material costs.
- More variety – Many products aren’t even able to be made in the United States anymore because the factories don’t exist. You may have to go overseas.
- Volume – Foreign factories tend to be comfortable with large volumes of products, which can help streamline the process as well as help you get a large quantity to start.
- Better profits – Products that require more labor are better done where the cost of labor is cheap. Besides, raw materials also need to be cheaper. The fact is that the cost of labor is always going to be cheaper outside of America and often even more skilled. Maintaining and growing profits over time should be a key to your success.
Why Manufacture Original Products
The potential for high profits – Original products presents a lot of benefits for your business and customers. Everybody wants unique products that are the trendiest in the market. Original products present such an opportunity and, in a case, where they become a hit; you could make a good fortune.
Complete control – While you’ll strike a deal with a factory owner who will produce the items on your behalf; you still keep full control over the entire process. If you’re not happy with an element of the design once you have a prototype; you can make changes as and when you see fit.
Bulk orders and low prices – It’s impossible to ignore the fact that you will pay the lowest prices possible for the goods and products you create if you decide to go straight to a manufacturer. You can place bulk orders to reduce the cost of materials, and the factory should pass the savings onto you.
What to Look for in a Factory
Here are some manufacturing due diligence methods you could use to sort the wheat from the chaff and guarantee you’re making the right business decisions:
- Make a visit- While this may seem unnecessary, conducting a site visit is one of the best ways to learn more about the operation and assess their machinery and capabilities. Liaising with sourcing companies is also very vital since they already have a presence on the ground on your behalf.
- Reputation- Their reputation should be honest and positive. Avoid manufacturers who have court cases and negative reviews and reputation.
- Knowledge and Experience- A manufacturer who has been around for a longer time is better and more experienced. While I am not dismissing the idea of partnering with new factories, should you choose a new factory ensure that you use all resources to your disposal to verify them.
- Financial Credentials- financial statements of a company will give you a clear overview of the profitability of the organization. Do away with companies that are shaky in terms of their finances.
- Ask for credentials- Reputable manufacturers will have professional certifications, and many will be listed on B2B platforms. Asking for references should be a core part of your evaluation of potential manufacturing candidates. Also, reach out to former business partners and get more honest reviews.
If you can’t find a factory or if you choose one that’s not the right fit your product idea will never come to life. Always consistently reevaluate your manufacturing partnerships. The first supplier or manufacturer you choose to work with may help you turn a profit, but they may not be suitable for your long-term needs.