Starting a Manufacturing Business? Four Factors That Affect the Process

factors affect process of manufacturing business
Starting a manufacturing business presents some complexities compared to other types of companies. There is more involved, especially at the beginning, with many variables to consider that contribute to a successful operation. Understanding some of the factors that affect the process will allow you to adequately prepare for what you’re dealing with and reduce the disruptions you’ll face.


The first variable that you’ll want to think about is the equipment and machinery you will require to manufacture your product. Efficiency and quality need to be at the forefront of your thought process when choosing what equipment to use, as there will be many options to pick from. Don’t forget quality control equipment, as it’s just as important as the production equipment itself. For example, if you have liquid storage tanks, invest in high-end multi level switches to monitor consistency and prevent overflowing.


What materials and supplies do you require to manufacture your product? You will need to source reliable and quality suppliers of all the necessary raw materials. You will require the adequate materials to make your product, so you need to choose a supplier who has a surplus of everything you need, and an excellent reputation for delivering them on schedule without problems. You’ll also need to consider your budget for materials and consider their cost when pricing your manufactured goods.


You will need experienced and qualified staff for your manufacturing business. The employees that you hire can dramatically impact the manufacturing process of your business. While there is always the potential of human error, reduce it as much as possible by investing in experienced staff or investing in training. That said, you need to prepare for human error to impact production now and then. Another factor to consider with labor is the cost. When budgeting for your business, you’ll need to consider wage costs and decide how you’ll split that up.

invest in training for manufacturing business

Factory overhead

Factory overhead refers to all your extra costs, minus materials, and labor. Your factory overhead is a massive component of your manufacturing process as it includes the facility that you operate out of and the utilities that power it. The purchase or lease of a manufacturing facility is one of the most significant factors you need to consider.

Read also: How to Take Your Business to the Next Level

A steady supply of electricity and water is essential for the smooth operation of your manufacturing facility, so you need to ensure that you’ve got reliable coverage. Even so, a short power outage could dramatically impact production, with all your machines shutting down, likely in the middle of a job. Being prepared for utility issues, such as investing in a generator, will help you protect yourself in case of an outage.

Depending on the product you choose to manufacture, there could be additional variables to think about, such as customizations. If you’re offering customized products or made-to-order items, it can slow down the process. Customers may start making changes to their orders, which could cause disruptions if you must order specialized materials. If you consider these factors, you will know exactly what to expect when you start your manufacturing business.

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