Indispensable elements for setting up a manufacturing business

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Indispensable elements for setting up a manufacturing business

A lot of commitments are involved in starting a manufacturing business. Such kinds of businesses call for an up-front low-interest business loan for the purchase of raw materials, hiring engineers and support staff, and purchase or leasing of machinery. It is very important to identify the proper manpower. Different kinds of machinery are usually required for meeting the manufacturing needs through manual, semi-automatic and fully-automatic operations.

Product selection

To be successful in manufacturing domain, it is very important to choice a right product to manufacture. You should choose a product that raw materials and technical support professionals are easily available. Factors such as product depth & width, packaging, branding, warranties and after sale services are some of the factors that are considered in a project conceptualization stage while choosing a product to manufacture. Additional factors of MSME business are also considered if your product range has export potential. Contents of export product portfolio and precise requirements for packaging for export purposes are also considered by many newly founded business groups in India.

Also Read: The 3Ms Of Indian Manufacturing Business

Equipment, machinery, and technology addition

setting up a manufacturing businessChoice of process and technology in manufacturing industry involves the selecting right machinery and equipment. About the machinery, equipment and project cost, only a custom designed and detailed project report prepared by financial service providing companies can provide systematic solution about technology, machinery, and equipment for manufacturing.

Capitalization

Without proper monetary support, no manufacturing or technology-based businesses can take off. Based on their financial needs and requirements, startups can avail term loan, working capital loan or seed capital loan. In addition to this, business ventures can hire purchase leasing for machinery. Other types of finance available for emerging business are an unsecured business loan, loan against property and angel investments. Several schemes and grand of Indian Government are specially designed for small medium enterprises.

Documents required

1. Balanced and profit sheet for last two to three years of firm
2. Partner’s or director’s income tax assessments
3. Proof of possession of building or land
4. Project report
5. Estimate of architectural construction cost

Also Read: The Development Of MSME Business With Instant Working Capital Loans

Unit setup

Setting up and operating a manufacturing unit requires a favorable plot, an organization for construction of the unit and finding excellent deals on machinery and equipment. Estimation of building construction cost is essential for loan applications. For disbursement of that loan, the certificate from qualified and experienced architect for money spent on the construction of the building. Power and water are primary requirements for a unit set up. Getting power and water supply connection may cause a delay in setting up of your plant.

Entrepreneur memorandum

Every manufacturing based firm has to register their companies with ROC. One Person Company, public limited company, private limited company and limited liability partnership are different ownership patterns in which businesses can register themselves with ROC. In India, it is generally considered as an excellent opportunity to initiate a manufacturing based business, due to easy availability of low-interest business loans, cheap labor, ample raw materials & resources, and sophisticated machinery. The emerging businesses ventures usually produce a product that can generate sufficient surplus. In-depth planning and plentiful resources are required for setting, expansion and financing of a manufacturing based company.

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