How do you go about starting a small manufacturing business?

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hermetic:
First, make a selection of the type of musical instruments you have in mind, and realistically calculate the cost in time amd materials. Now double the price and see if you can sell any. ( Sir John Harvey Jones used to say that a manufactured item should be on costed 1000% to get the retail price) Would you sell them yourself or through other outlets? Internet is good but has costs in time as maintaining the site etc. Other outlets (music shops etc) will want at least 20% markup, possibly more. This way you can do what 99% of small businesses fail to do, that is, charge enough for your product, and most importantly, See if there is a market. As for renting a unit...........I agree with what all the above have said, Business starter units provide somewhere for small businesses with good ideas to go bust in! Work out how many instruments a week you would be making to pay the rent, and all the overheads! It aint worth it untill you can no longer possibly cope with the demand, and then buy somewhere! Renting is a mugs game.
Phil

S. Heslop:
Thanks again for the advice. Since renting a unit does seem like a bad idea now, i've been thinking about how to re-arrange stuff in the garage (once again! It feels like i'm never not rearranging the garage) to find space for at least a
bandsaw and a thicknesser.

Before being distracted by exams I was building up an ensemble of daft machines to have a go at producing a batch of banjos. I've got 3 designs (vanilla, zither, and electric banjos), and most of the cost would be in time since the wood and materials aren't too expensive relatively. My plan was to see how quickly I could produce them, and price it based on that (plus the cost of materials). It's just now that i'm finished university and wondering what i'm going to do, i'm thinking about going back to that idea but taking it a little more serious.

RodW:

--- Quote from: S. Heslop on June 30, 2014, 04:07:07 PM ---Thanks again for the advice. Since renting a unit does seem like a bad idea now, i've been thinking about how to re-arrange stuff in the garage (once again! It feels like i'm never not rearranging the garage) to find space for at least a
bandsaw and a thicknesser.

Before being distracted by exams I was building up an ensemble of daft machines to have a go at producing a batch of banjos. I've got 3 designs (vanilla, zither, and electric banjos), and most of the cost would be in time since the wood and materials aren't too expensive relatively. My plan was to see how quickly I could produce them, and price it based on that (plus the cost of materials). It's just now that i'm finished university and wondering what i'm going to do, i'm thinking about going back to that idea but taking it a little more serious.

--- End quote ---

Don't price on time and materials, price on perceived value and the competition. Make sure you have enough fat for distributor pricing and the ability to outsource some manufacturing. Start high! Sell your products uniqueness, not just your time! This is what I did and it has paid for everything in my workshop. as for VAT/GST, I went to our tax man and asked them to backdate it after a quarter. Your expenses are high starting out so you have a lot of tax credits. Take some advice from an accountant. Go with your passion!

DavidA:
Maybe best to make one through to completion and estimate your time from that.

Then see if it sells.

Have you made them before ?

Dave.

Auskart:
Make a good product and find some customers is a good start. :coffee:

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