Starting a manufacturing company can be a very exciting endeavor, but one that requires careful planning and attention to product safety. Many people consider the entrepreneurial route, but it is a risky road to take, especially if you don't set yourself up for success. You don't have to sell a unique product, but you should offer a one-of-a-kind service.

Anyone can launch a manufacturer operation services with the right attitude and financial backing. Competition will be fierce. You can't expect to put your feet up because it's your own business. On the contrary, you should expect to work very hard in the beginning. Before quitting your full time job to become your own boss and open a small manufacturing business, ask yourself the following:

1. Are you committed? It takes more than just a good idea to open a start up a manufacturer company. It takes time, money and hard work.

2. If applicable, do you have the right partners? Friends are not always good business partners. Vet potential partners as objectively as possible.

3. Have you done your research to make sure there's demand for your product or service? You may have a great idea, but how many others have the same idea?

Action Steps
The best contacts and resources to help you get it done

Launch a manufacturing company that's licensed and legit

Businesses are legally required to obtain certain government licenses. Your state may regulate manufacturing businesses via seller's permits, zoning and land use permits, federal and state employer tax ID numbers, and a business name certificate. Regulations vary from state to state, as do the agencies that do the regulating. There are online resources that can assist in the filing of these documents.

I recommend: Business Licenses is a fee-based online resource with statewide permits that include zoning permits. The Internal Revenue Service will assist you in obtaining an employer tax ID number for your business.

Join an association and build industry credibility when you launch a manufacturing operation

As a start up a manufacturer company owner, you don't have to go it completely alone. Consider joining an industry association for support. Organizations bring together professionals with the same goals and challenges. As a member you have access to certification and educational opportunities, in addition to networking events, so you can meet industry peers, vendors and suppliers.

I recommend: National Association of Manufacturers and the Association for Manufacturing Excellence both organize events for educational and networking opportunities. They also offer access to publications and other tools to assist you toward business success.

Begin a manufacturing business with the right team

When you start up a manufacturer partnership, it's imperative that you hire employees who can help you grow. Your employees must be reliable, accommodating and thorough. You want to build a long-term relationship with your employees, so they must share your interest in pleasing your clients.

I recommend: ManufacturingJobs.com lets employers create an account free, to review resumes and post jobs. At iHireManufacturing, its free registration gets employers access to many tools, including free salary data, emailed matching candidate notifications, and live telephone customer support.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When you first begin a manufacturer operation, you may decide to balance your own finances; but as your business grows, consider partnering with an accountant who can help you with tax issues and assist you in building a financially sound company.

Launching a manufacturing company isn’t for newbies. If you don’t have personal experience in the field, consider partnering with someone who does. Grappling with the regulatory issues alone can be daunting, even for longtime manufacturers. On the plus side, you don’t have to be a major manufacturing powerhouse to thrive. According to the National Association of Manufacturers, today, more than 99 percent of U.S. manufacturers are small and medium-sized companies.

Among the benefits and challenges you can expect in your company’s early stages:

1. Big manufacturers are increasingly turning to smaller companies to supply components.
2. Customers often seek out small manufacturers when they need a quick turnaround and personal attention to their needs.
3. One of the growing concerns facing small and mid-sized U.S. manufacturers: it’s getting harder to compete with overseas manufacturers.

Action Steps
The best contacts and resources to help you get it done

Show me the start-up capital

If you need seed funding to get your business off the ground, should you take out a bank loan? Look for an angel investor? Borrow from relatives?

I recommend: Find expert advice in Inc. Magazine’s Guide to Raising Start-up Capital . At BusinessFinance.com.com and BusinessPartners.com you’ll find thousands of business-capital sources.

Have a plan

Investors expect to see a solid business plan. Even if you’ve already got your funding in place, you need a business plan to keep you on track.

I recommend: Check out the award-winning manufacturing-company business plans from the Moot Corp. Competition, a program in which MBAs from the world’s top business schools present their business plans to actual investors. You can find more sample business plans at Bplans.com.When you’re ready to put your business plan in writing, use a program such as Business Plan Pro to give it a professional polish.

Lease a workable space

When evaluating potential facilities, consider every aspect of your business—from the amount of electrical power and storage space you’ll need, to whether drive-in truck access is important.

I recommend: CoStar Group and LoopNet list industrial spaces for lease.

Mind your rules and regulations

According to the National Association of Manufacturers, manufacturers pay 81 percent more in regulatory costs than do other types of businesses. Before you set up shop, find out what you need to do to comply with national, state and local regulations.

I recommend: IndustryWeek magazine provides updates and analysis of regulations that affect manufacturers. The U.S. Occupational Health & Saftey Administration spells out safety guidelines for workers. If you have international customers or business partners, consult the National Association of Manufacturers International Standards and Regulatory Policy.

Equip your facility

New technologies are streamlining some processes and making others obsolete. If you aren’t sure what your plant needs, consult with a manufacturing engineer.

I recommend: Find equipment and supplies at BuyersIndex. Companies that sell engineering and manufacturing systems and services are listed on GlobalSpec. For strictly local suppliers of new and used equipment, consult an online directory such as SuperPages.com. Locate a manufacturing or industrial engineering consultant through an online service such as eWorkMarkets.

Hire a sales rep

If you can’t afford to hire a sales staff to contact and service your customers, consider contracting with independent sales reps.

I recommend: Check out the classified ads in Agency Sales Magazine for manufacturing agents who are looking for lines to represent.

Market your products and services

Promote your company on the Web and elsewhere by spotlighting the benefits you deliver to customers.

I recommend: Develop an appealing Web site with the help of a design firm such as Carazin Web Group , which has experience working with industrial companies. At B2B Online you’ll find links to business-to- business marketing resources, including a directory of advertising and public relations agencies and search engine optimization firms. Attend trade shows to connect with suppliers and customers. Get the scoop on tradeshows that serve your markets at BizTradehows. If you’re an outsourcer, make it easy for inventors to find you. List your company on ThomasNet.com, WebsterOnline.com and MacRaesBlueBook.com.

Hire skilled workers

Casting a wide net will improve your chances of landing the talent you need.

I recommend: Look for qualified workers by posting jobs and searching resumes on multiple Web sites such as iHireManufacturing, ManufacturingJobs.com and Career Builder.

Keep up with issues and trends

Nanotechnology and international trade may not affect how you do business today, but stay tuned. You can’t remain competitive unless you keep pace with the many forces that impact manufacturing.

I recommend: Manufacturing.net provides daily updates on matters that affect manufacturers. IndustryWeek’s Manufacturing 101 department examines the issues and provides resources such as a glossary of manufacturing terms.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Protect your intellectual property. Ask contractors to sign a non-disclosure agreement. Also, don’t allow camera phones in the areas of your plant where proprietary processes or other sensitive information could be photographed.
• •  One way to reduce inventory costs is to conduct a make-or-buy study of costly parts. You might find that manufacturing some parts in-house would be more cost-effective than purchasing them.
• •  When looking for a facility, consider the location. Is it close enough to major highways for deliveries to get in and out with minimal headaches? Can workers conveniently access public transportation?