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| How do you go about starting a small manufacturing business? |
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| vtsteam:
I've run a small business for 34 years (very small now) and also worked for a wage at times simultaneously. I started out as a craftsman renting shop space producing high quality wooden boats and quickly learned that it was barely possible to survive that way. Many of the supposed "business" requirements dropped by the wayside -- business checking accounts, business phone, renting space, etc. I'm in total agreement with what John Stevenson has said. The simpler and least "business like" you can make it, starting out, the better. Just make a product, a single item, and sell it. Don't spend anything on anything. When it sells you will have a feel for what your time and materials will be and what the market will be. You can improve on both of those over time, since it's a one-off, and you are an unknown in the market, and you expect to change both of those, but your expenses will also increase over time. You will likely find that the reduction in costs even when doing multiples and jigging, as well as an increase in the selling price by becoming better known, isn't dramatic, because you start to have to become more of a business, unless you have very good luck and some kind of unanticipated advantage -- like a famous band using your instruments. The real problem is likely to be that what you love isn't being a business man, it is making things. Yet to become reasonably self supporting you may need to like being a business man, and spend more time doing that than making things. I'm not saying it's impossible, I'm just saying it's hard, and usually not as much fun as you expect. One other really crucial piece of advice, and that is: Information is much more marketable, and profitable, than real goods. If you know how to make something that is difficult, and to which you bring unique insights and talents, that can be your real product. People will buy information on how you build your instruments, if what you present is unique, truthful, well done, and interesting. You already have a start on that with your interesting, and high quality videos. Don't ignore that aspect of what you like to do. |
| S. Heslop:
--- Quote from: Baron on July 01, 2014, 02:37:12 PM ---Reading this, you aren't looking to start a business, you're looking to start a hobby ! --- End quote --- I prefer to think of it as a 'project'! Hobby or not though, I don't want to get caught out by some technicalities of the law when I start manufacturing items commercially. --- Quote from: vtsteam on July 01, 2014, 09:50:03 PM ---One other really crucial piece of advice, and that is: Information is much more marketable, and profitable, than real goods. If you know how to make something that is difficult, and to which you bring unique insights and talents, that can be your real product. People will buy information on how you build your instruments, if what you present is unique, truthful, well done, and interesting. You already have a start on that with your interesting, and high quality videos. Don't ignore that aspect of what you like to do. --- End quote --- I'm not sure if I fully understand what you mean. Do you mean as in selling plans, or just marketing stuff with videos? I think the problem with selling plans is that you need to keep the methods simple, and that makes things difficult to build to build in general when you're unable to use things like a lathe or a spindle sander. I might be able to sell half-finished banjos as kits though, with all the more difficult stuff already finished! |
| awemawson:
"I might be able to sell half-finished banjos as kits though, with all the more difficult stuff already finished!" But then you are effectively trying to compete at the bottom of the food chain on price, where you will not make much mark up and not gain the satisfaction of a finished well made product. |
| ieezitin:
Heslop. A wise man once told me " Rich men don't pay taxes". he was right. running a business takes time to unfold all the advantages, experience will only give you this knowledge. it behooves you to go into business, the freebies are unbelievable. its a game you need to learn how to play, once you understand the rules you're in... no one is excluded. ...... running a business is duck soup, if you don't get it, you're a drone in the abused world, financially speaking. i have been self employed and employed for 35 years, i do ok, so should you, you just need to understand how to play the game... the funny thing in all this is, your product has nothing to do with it.... if you want to know more you re welcome to email me. Anthony. |
| vtsteam:
--- Quote from: S. Heslop on July 02, 2014, 03:11:42 PM --- --- Quote from: vtsteam on July 01, 2014, 09:50:03 PM ---One other really crucial piece of advice, and that is: Information is much more marketable, and profitable, than real goods. If you know how to make something that is difficult, and to which you bring unique insights and talents, that can be your real product. People will buy information on how you build your instruments, if what you present is unique, truthful, well done, and interesting. You already have a start on that with your interesting, and high quality videos. Don't ignore that aspect of what you like to do. --- End quote --- I'm not sure if I fully understand what you mean. Do you mean as in selling plans, or just marketing stuff with videos? I think the problem with selling plans is that you need to keep the methods simple, and that makes things difficult to build to build in general when you're unable to use things like a lathe or a spindle sander. I might be able to sell half-finished banjos as kits though, with all the more difficult stuff already finished! --- End quote --- Well information takes many forms, plans, instructional videos, books. And just because a person doesn't (yet) own a spindle shaper or lathe, doesn't mean they won't buy plans or other info. Many people like to dream about what they would eventually like to be able to do. If that dream is strong enough, they will in fact, some day. Meanwhile, plans, books or videos are affordable, and a fine thing to look at, if well done. |
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