10 Home Based Small Scale Manufacturing Business
1. Animal feed production-: The demand for feeds in increasing by the day due to the globally increasing dependence on livestock farming and demand for pets. So, depending on whether pet owners or livestock farmers prevail in your locality, you can start a home-based business that manufactures pet feeds or livestock feeds, or both. Since you have a large market to cater to, your chances of success are high, provided you play your cards right.
2. Fast foods and snacks production
The need for people to do more work in order to make ends meet has made them busier than ever. And they have little or no time for cooking and other tasks; which explain why there is a huge demand for fast foods and snacks that can be consumed quickly. A business that produces these consumables requires little startup capital and is usually successful.
3. Yoghurt or beverage production
Another brilliant home-based manufacturing business you can start is yoghurt or beverage production; depending on which sells more in your locality. Most people prefer quenching their thirst with more than just water, and they tend to favor beverages. So, there is a huge demand for these drinks.
4. Cosmetics manufacturing-: People love to look good, and they are ready to spend their money to achieve just that. So, a business that manufactures cosmetics such as creams and lotions, powders, etc has the potential to thrive in any economy. If you have the required know-how, then you should consider taking a plunge. You can set your business apart by making cosmetics from organic or natural products only. This will appeal to health-aware individuals who prefer natural products.
5. Candy manufacturing-: If you pride yourself on knowing how to make various types of candy, then you can turn that knowledge into profit by starting a home-based candy production business. People, especially kids take candy every day, which means you have a large market to serve.
6. Soap and detergent production
The demand for soap and detergent is always on the high because they are products we use every day. No matter how saturated the market might seem, you have good chances of success because the demand will always weigh supply. However, since people are usually reluctant to buy and try new products, you need to offer quality and innovation to attract customers.
7. Drinking water production
If you live in a country where drinking water isn’t readily available, starting a drinking water production business is a sure way to make huge profits. And the reason is obvious—people drink water every day. Starting this business requires minimal expenses, and there will always be room for new market players, no matter how stiff the competition might be.
8. Jewelry production-: If you have a solid background in producing alluring jewelry, then you should consider starting a home jewelry manufacturing business. Your jewelry does not have to be made of gold, silver, or other expensive materials. They could be of attractive plastic (such as beads), light polished woods, or other cheap but attractive materials.
9. Tissue paper production-: In most places, tissue paper is used every day, which means there is a large market for tissue paper manufacturers to serve. You too can tap from the “profit juice” by starting your own tissue paper production company. You can start the business from the comfort of your home, and you don’t need much capital to get started.
10. Rubber band production-: Though many people do not realize it, rubber band production is a very lucrative small manufacturing business. We use rubber bands frequently to hold paper and currency notes. Rubber bands are also used in corporate establishments for holding money, files, and documents. And they are used in industries for holding products together. So, the demand for rubber band far exceeds what most people think.
Starting a Manufacturing Business at Home – Sample Business Plan Template
Manufacturing your own products is a very smart idea. Millions are spent on different goods yearly and yet, the demand for some goods still outweighs supply. I was discussing with a friend some months back and the subject of our discussion was that there are still a limited number of manufacturers all over the world in spite of the fact that a lot of products are so easy to make.
I don’t want to mention any company now but it’s funny that so many big companies are still dominating the market and raking in millions of revenue by producing simple items like tissue paper and detergents. My point is that, a lot more people need to explore manufacturing. I know that capital might seem like a challenge for many but the truth is that you can start small and if you are dedicated and focused, you would build a business empire for yourself before you know it.
However, to start your own manufacturing business, there are important things you need to be aware of. You have to know the steps involved in order to help you develop a strategy.
a. Start with an idea-: The first thing you need is an idea. What is that thing you want to start manufacturing? It is important to come up with innovative ideas and not just a copycat kind of manufacturing business. I mean, you can copy but it has to be a better version of what already exists. Some of the ways to come up with innovative ideas include-:
- Choose a niche you like-: There might be a product you are passionate about; this is a good place to start from.
- High demand products-: There are certainly some products whose demand exceeds supply or products that typically have high levels of demand; you can look into any of these products.
- Fill a gap-: You could also look for existing gaps in the market that you can fill. For instance, if you live in a place where getting clean, portable drinking water is a problem, you can consider production of packaged water to fill this gap.
- Solve a problem-: Another way to find profitable niches in manufacturing is to find out some of the products that people are dissatisfied with, and then come up with a better version that would be more satisfactory to people.
- Innovations-: Nothing stops you from thinking of a product that doesn’t already exist in the market.
b. Find out laws and regulations-: We are all guided by the laws of the countries we reside in. Before you go further with your manufacturing plan, you should find out what the position of the law is on the item to be produced. You should also find out what licenses and approvals you would need and then comply accordingly.
c. Select a production facility-: You would need a place to use as your production factory. This of course depends on the size of your business. If it’s a small manufacturing business, you can start from home provided that there are no zoning laws preventing you from doing so. But if it’s a big manufacturing business, you have to look for a production facility. Some factors to consider when selecting a facility include- your needs, funds available, budget and infrastructure suitability.
d. Choose Equipment and Machines for Production-: The next step to take is to find out what equipments and machines you would need to manufacture the product. When you have found this out, you can now start to think of how to get these machines. Some things to put into consideration include quality of the machines; you don’t want to spend money buying a machine that would end up giving you problems. You should also take price into consideration but never at the expense of quality. You can also reduce the costs of purchasing equipment by hiring equipment or buying from suppliers who provide flexible financing options.
e. Decide on your production method-: There are different ways to produce any given product and it’s important to find out and adopt the most cost effective option. Some of the popular production methods include; job production which involves a single person/worker making a product from start to finish, batch production which involves several people working on different stages of the production and assembly line production method. Select the method that is both cost effective and efficient.
f. Plan your raw materials-: You would also need raw materials to make your product and this must be planned beforehand to ensure that you would always have access to the materials you need at every point in time. You have to determine the quantity of each material you would order for, the size of your order and your re-order level. You can make use of material planning software or economic order quantity formula to do this easily.
g. Find out your production costs-: This is important especially when you need to decide how much capital you would need to start your business. There are different costs in productions. There are fixed costs, direct costs, indirect costs and variable costs. It is important to find out what these costs would be.
h. Decide on Logistics-: How would you move your raw materials around? What about your finished products, how would you transport them to wholesalers and buyers? Would you have to purchase a vehicle or contract this function out? It is important to figure this out beforehand.
i. Marketing-: This is very important as well. You need to figure out how you would create awareness for your product and increase patronage. You can hire a marketing consultant to do this for you or find out cheap ways to do it yourself.
j. Funding-: When you have figured out all you need and how you would get them, then you should write your business plan and find out how much you need to start your manufacturing business. Then you can start looking for capital to fund your business.
k. Protect your innovation-: You don’t want anyone stealing your ideas hence; you have to protect yourself through patents and copyrights. You should also perform risk assessment and protect yourself through product liability insurance and other necessary insurance coverage that may be needed for the type of your business.
l. Consider Export Options-: A good way to expand your business is by exporting to other countries; find out how to go about this from the export promotion agency in your country.
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