How do you go about starting a small manufacturing business?

The Breakroom > The Water Cooler

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S. Heslop:

--- Quote from: awemawson on June 29, 2014, 05:32:19 PM ---
"Renting a unit would let me set up properly."

Key to starting a one man business when you are not sure of the market, is strictly controlling your costs. This militates very much against that strategy.

--- End quote ---

I suppose your right but I'm really not sure how i'd fit any more into my garage, and there's not really anything I could get rid of to make space either. I suppose I could just make a few the hard way to see if anyone would want to buy them.

Banjos are the instruments I primarily want to make. It's goofy but I figure you'd have a better chance selling them than guitars. Guitars are pretty well covered, and i'm assuming that people in the market for banjos would be more willing to buy from folk like me.

John Stevenson:
If you are going to start out small then ignore the business accounts, they actually give you nothing but take monthly fees for having a business account.
Just set up another 'personal' account at another bank and use that.

Johnny, if you think power tools are bad then just mention welding.
I have had to drop site work off my insurance as they have priced it out the market. Not bothered as it's a good excuse not to do any but they wanted triple what I was paying two years ago.

Can you relocate stock and other stuff to a shed to make room, failing that any old biddies along your road not using their garages that you could rent cheaply ? Mate of mine keeps some old motor cycle spares in a couple of garages, he mows their lawns and cuts the hedges in lieu of rent.

Remember once you go self employed everything is deductable. Coffee, milk, washing powder for your overalls, boots, gas, electric, part of the council tax, water rates, dog food for the guard dog.
Even got one of ours VAT registered. Even got it a vote one year.
Put Old English Sheepdog - grey and white on the polling form, they read it as Graham White, hope the thick bastard never gets called up for jury duty.

RodW:
I really would recommend keeping your overheads down to start off given where you are for now. Make do with the space you have. Buy a garden shed if you have to. I have done something similar and it has funded all of my tools but to start with, I kept the overhead as low as possible while, setting my prices high enough to allow outsourcing which I eventually got to. Set your prices based on the customers perceived value, not yours as theirs is probably higher than yours. Remember as a business owner, you are paid on results, not by the hour. Insurances I have not bothered with but I am in a position our house is not on the line if something goes wrong. If you own real estate, you need insurance!

geoff_p:
Beware the VAT man!

When I started I was encouraged to "voluntarily" register for VAT. So I did. Of course I had no VAT-number to put on my invoices - you only get that AFTER you are accepted - so I couldn't charge VAT just yet.

Eventually, after about 3-months, I got the registration stuff, along with a bill (610 quid) for the Vat I should have charged if I had had a number, payable within 14-days. Frankly it broke me.
Geoff,
Well out of it, in Thailand

Kenne:
Having spent the last 45 years running my own business , I will tell you the few things I have learned , you have to be willing to work more hours than you ever have before (every hour you can stay awake), make less money (yours is the last pay check written), be responsible for everything that happens (good or bad) , and get used to the idea that you will learn something new every day .
Having said that ,it's the best thing I could have done , but also remember to spend as much time with your family as you can .
Find someone that knows how to do what you want to do and get them to teach you the basics , (everyone does things a little differently anyway )and most of all never forget the machines know if you are paying attention to them , and if your not , they will do something to get your attention ........................

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