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HomeBusinessSmall Manufacturing Business 101: Challenges of Running a Manufacturing Business

Small Manufacturing Business 101: Challenges of Running a Manufacturing Business

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Starting a manufacturing business is an excellent and lucrative idea for young entrepreneurs. Even though the digital age is in full swing, the manufacturing industry still offers many business opportunities for investors.

Harnessing the potential of these opportunities could help you ensure steady business growth. However, the modern-day manufacturing business landscape is overwhelmingly competitive. There are many obstacles and challenges to conquer.

Aside from coming up with a good manufacturing business idea, you also need to think about finding the right location for your operation. Then, there’s funding to consider. Thankfully, this guide will help you start your manufacturing business endeavor.

Reasons to get into a manufacturing business

Starting a manufacturing business allows you to enter the manufacturing industry and find your place in the market. Manufacture is a profitable, viable, and flexible business concept that offers a few advantages to the owner, such as:

1. Easy adaptation to the market trends – small businesses are flexible enough to change direction and scale according to the market trends. That can be a benefit in a constantly fluctuating marketplace.

2. Lower overhead costs – small business owners pay lower labor costs, utilities, and rent than larger companies. Because of that, business owners can reinvest in their operations to make their efforts more lucrative.

3. Customer-centricity – small businesses invest time and effort to maintain healthy customer relationships. Aside from making sales, most of their focus goes on developing and maintaining customer-centric service and support that allows them to encourage consumer loyalty and trust.

Challenges for manufacturing startups

Every business idea has its challenges. However, manufacturing is a specific industry that exposes business owners to unique challenges. Let’s briefly reflect upon them.


Finding the right business location is more challenging than most business leaders know. Depending on the size of your operation, you need a facility that can support your production goals and provide access to specialized infrastructure.

In addition, it also has to be affordable so that you avoid breaking your budget before you even start. You’ll also need to factor in the availability of skilled and trained workers, transportation access, and zoning regulations.


Funding manufacturing business

Starting, running, and maintaining a manufacturing business requires an appropriate investment and more ongoing capital than most business types. Therefore, securing funding is critical to keeping your operation up and running.

While you can always consider venture capital, third-party investments, and bank loans, these might be difficult to obtain due to many factors, such as your credit score and history. Thankfully, you have alternative options such as government contracts, crowdfunding, and SBA grants and loans.


Aside from finding an affordable location and securing funding, you’ll need to keep an eye on your competition. Larger companies will always be in the neighborhood, no matter where you start your business.

The manufacturing sector has its dominant brands just like any other industry. You’ll have to compete with the dominant companies to grow your business.

How to get your manufacturing business started

After finding the location and securing funding, let’s discuss what it takes to get your business up and running.

Come up with a business plan

A business plan allows you to outline your mission, strategy, and goals so you can adjust your financial projections accordingly.

It also protects you against unexpected expenses and making costly mistakes. Encompass all your business aspirations in your plan to make informed decisions right from the start.

Outline a marketing plan

Comprehensive traditional and digital marketing plans allow you to raise brand awareness, attract more customers, improve your SEO, and beat your competitors. They ensure your business efforts result in success.

These plans should include methods and techniques for building brand awareness and recognition, generating leads, and securing sales.

Hire workers

Since the manufacturing industry is highly competitive, you’ll need a capable and well-trained workforce.

Start recruiting workers to assess their skills and ascertain whether they have the necessary knowledge and experience to operate the equipment and machinery used in your manufacturing facility.

Consider developing a training program for your workers to ensure they receive the necessary education about your processes and products.

Connect with suppliers

Developing supplier connections is a critical aspect of running a successful manufacturing business. You’ll need to secure a reliable line of fiberglass grating suppliers, vendors, and packaging machine manufacturers for your products.

Get in touch with other entrepreneurs in your area and establish a supply chain with local retailers and distributors to save money on shipping and ensure your products sell.


The things we mentioned here are just the tip of the iceberg. These are just to get you started. Since the manufacturing business landscape is highly regulated, staying compliant with the state and federal regulations and industry standards allows you to avoid law problems and hefty fines. Get all the necessary business licenses and permits from your local government before you start your operation.

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