Tips for Small Businesses Using Manufacturing to Develop Products


Owners and developers of small businesses often have fabulous new concepts they want to develop. This concepts start off in their mind, and they need a way to make the design on paper come to life. This is where manufacturing comes to play.

What is Contract Manufacturing?

When you are looking for a way to make your new item a reality, you need to consider contract manufacturing. Chances are you don’t have the machines and material available to make your dream a reality. Also, most investors are not going to give money and help for mass production unless there is a product in hand to view.

Contract manufacturers take the design of your product and create a very limited amount of stock. This gives you enough product in order to show investors and potential clients the amazing features. Also, if you want to license the product to another company, having a small stock on hand makes it easier to find a company who wants to purchase the license.

Here Are Some Tips to Consider When Looking for A Manufacturer.

  • You should request a consultation before signing and agreeing to anything with a manufacturer. Your specifications should be very clear and precise. Miscommunications can cause a whole slew of problems; it may even be a wise idea to write down the most important specifications so they are not messed up. A mess up will cost you thousands of dollars because they will have to restart the whole process.
  • When you tell them exactly what you want, be sure to include things like: the product dimensions, the exact colors, the approximate weight, the materials that should be used, and anything else that needs to be specific.
  • There are dozens of contract manufacturers in the United States alone. Make sure you screen and interview a good amount of them, at least six to eight.
  • The manufacturer is going to give you a price based on all the specifications given to them. Give all the specifications to each of the manufacturers you are considering and see who gives you the best price. Saving money is important, but you don’t want to save money and skimp on quality.
  • With each offer given, be sure to find out what their cost, time line, licensing fees, as well as royalties. This is how you will narrow down your options.
  • Once you have decided the best few options, each company will give you a written proposal. Remember, while price is important, you have other factors to look at as well. A super low price may be for a good reason; their quality may be lacking.
  • Before you sign on any dotted line, you are able to visit the facilities for your selection. You can talk to staff and ask them questions. The facility should be up to your standards.
  • Once you have made your selection, have a lawyer and a trademark attorney look over the all your contracts before signing. Sometimes, the wording can be difficult to understand. You have to be clear on the expectations, extent and limitations and specifications you are agreeing.

Using a manufacturer is a great idea for a startup company. Doing research on the different manufacturers is a great idea. Look and ask for references from other companies. Don’t discount a smaller manufacturer over a large one. If they are reputable and can provide you with quality service, it may be worth considering a small company over a larger, big named business.

Often times, you pay for using the big-name companies because they are known for providing great products. Ultimately, your goal with contract manufacturing is to make your dream idea into a reality. That is their purpose for your small business. This can give your business a major boost and propel it to the next level.