How Manufacturing Business Work In 2021

Do you want a viable business to start? Have you thought about Manufacturing Business? One of the ways to fight competition in the market place is to manufacture the products yourself. The big brands you see are manufactured products. When you manufacture your own products you equally manufacture your own customers and your own markets.

Most of what’s being imported into Nigeria can be manufactured in Nigeria by small scale Manufacturing Businesses. And don’t think that it cost so much to start a Manufacturing Business. There’s options of starting small, either by using locally fabricated equipments or imported small scale equipments from China.

You can also target a certain market with your manufactured products. Like, identifying markets where there are needs for products you can manufacture and meet those demands. Or find products that are imported and provide a cost effective locally manufactured version that’s of better quality that addresses the needs of the target market better than the important alternatives.

Nigeria stands to benefit more from Manufacturing Business. Apart from producing goods needed locally, it’s also the highest source of employment. The country will also be able to tap into the profitable export market with finished goods, rather than raw materials which fetches less revenue.

Understanding Manufacturing Business

Wikipedia gave a definition of manufacturing as the production of products for use or sale. It also included the use of labor and machines, tools, chemical or biological processing or formulation.

It may also refer to other human activities like handcraft. But Manufacturing is most commonly applied to just industrial design that utilizes raw materials to transform into finished products.

A business that engages in manufacturing can also sell to other manufacturers for the production of other more complex products. Things like household appliances, furnitures, air raft, automobile are some of the products that buys their raw materials from other manufacturers finished goods.

Types Of Manufacturing Business

These are like categories your Manufacturing Business can fall within. When you pick the industry you want, then you can begin to explore all the alternative opportunities that maybe in it.

Below are the different types of manufacturing industries:

1. Clothing and Textiles
2. Petroleum, Chemicals and Plastics
3. Electronics, Computers and Transportation
4. Food Production
5. Metal Manufacturing
6. Wood, Leather and Paper

Also, you should pick your industry based on the needs of your target market and the raw materials available to you. In fact, one of the major factors on consideration should be how easily accessible and affordable is the raw materials you need for your manufacturing business.

Another factor to consider is availability of trained workers. Sometimes finding the right Workforce maybe challenging where they don’t exist. So, it’s important you ascertain the workforce availability first. If you are setting up a new trend that’s never been done before, you can partner with consultants or technical schools to help train your workforce.

4 Types Of Manufacturing Processes

The process of your Manufacturing Business determines the kind of production machines you require. There are four multiple types of processes. Some productions may require more than one processes. While some may only need one. Here are the different processes below:

• Casting and Molding
• Machining
• Joining
• Shearing and Forming

Nigerian Manufacturing Potentials

There’s a huge potential for Manufacturing Business in Nigeria. The government is also encouraging more manufacturers by making it cheaper to buy locally manufactured goods and prohibiting foreign goods thereby making them expensive.

However, there are equally several challenges, and many of them are also surmountable. The one I consider highly important are the duo of infrastructure deficiency and poor distribution channel. This two holds the biggest disadvantage for your Manufacturing Business. Yet, they can be tackled and overcome.

With a population of over 198 million people with strong appetite for consumption, manufacturing business is the most viable yet untapped investment opportunity in Nigeria. Through manufacturing your can easily build a product into the market with less competition.

Most importantly, there are enough raw materials in Nigeria. The country has been accused of exporting raw material while importing finished goods. These exportable raw materials can be converted for local Manufacturing uses at the same export cost or even at lower rates

Ideas Of What Is Manufactured In Nigeria

Nigerian is a unique market, still being dominated by foreign imported goods, which by far exceeds sales of locally manufactured goods. While all that is gradually changing, the economy is yet to become self sufficient in Manufacturing of locally needed products. But the list of what’s being manufactured presently in the country includes.rubber, wood, textiles, cement and other construction materials, food products, footwear, chemicals, fertiliser, printing, ceramics, steel, etcetera. Others are shipbuilding and repair.

Although, NBS (National Bureau of Statistics) listed the following sectors as dominating the manufacturing business in Nigeria. The list includes, food, beverages, tobacco, sugar and bread products. These products are generating the largest value of production.

Also, with tightening policy on imported products, it’s becoming cheaper to produce locally, coupled with very low cost of labour. And one can start with a small scale Manufacturing Business, like a cottage industry to grow product and consumer taste, before venturing into large scale production.

Starting A Manufacturing Business

If you are thinking of starting a Manufacturing Business, the opportunities are there for you. All you need to start is to pick your side of the business. There are Manufacturing businesses that produced finished goods that other manufacturers need to product their own goods.

That also creates different scales in Manufacturing Business. The small, medium and large scale production factories. A Manufacturing startup can climb the scale from ground floor to the highest scale in Manufacturing.

If you are new in Manufacturing Business it’s always advisable to use the services of a consultant. Starting up is not always easy for newbies in Manufacturing Business. You need to learn the ropes. While taking courses in the area of manufacturing you plan to invest is important, the services of a consultant cannot be over emphasized.

Tips On What You Need Include:

• Funding
• Sizable land
• Production machines
• Access to market

Cost Of Starting A Manufacturing Business

The cost of setting up your own Manufacturing Business maybe different from another. There’s actually no one defined cost in starting any business. There maybe same cost for equipment and licensing, but not for land and operational cost. Some things must definitely make your startup cost different from others.

But how much should one be looking at when planning a Manufacturing Business? It’s best to estimate your cost personally. Although that may not be an accurate figure without a proper business plan. But it would give you an estimated figure to know how much you should be planning to invest.

The major items of a Manufacturing Business includes:

• Land
• Machines
• Raw materials
• Cost of power
• Cost of labour
• Marketing and Transportation

Now, based on your own circumstances, you can research and attach cost to each of these items listed above. Doing this shouldn’t mean you exclude the writing of a Manufacturing Business plan. This should serve only as a booster to help you have an idea of what cost you maybe up against.

A business plan would evaluate more precise and detailed costs that your vague research won’t cover for sure. But having an idea of cost is usually good to avoid planning a project you possible don’t have the ability to finance.

How To Locate Your Manufacturing Business

One of the most important decisions in Manufacturing Business is location of the factory. It’s the most important process in starting a Manufacturing outfit. A location can greatly determine the success of your Manufacturing Business. And you should not treat this based on assumption.

No matter how much you know, always get a second opinion from a professional like a consultant before picking a location. And don’t pick a location without basic facts in consideration. For example, how close are you to your target market? What are the benefits of that location to your production business? How accessible are your raw materials?

A good location should add value to your business. If you cannot tabulate the value the location contributes to your investment, that’s not the right location for you. However, I will recommend you conduction location assessment even before you buy the land for your Manufacturing Business.

A location assessment report would give you better insight on how that location benefits your business. It would even open your eyes to more hidden potentials your Manufacturing Business can explore in that location. So, don’t undermine the advantages of a location assessment by not conducting one before you start. Even if you have already purchase the land, it’s even more important that you know how viable before you invest more money there.

How To Source Manufacturing Equipment

Another important aspect of Manufacturing is the equipments. Although, you can easily decide what type of equipment depending on what you intend to produce. But that could pose a great deal of danger as well. Mistakes are bound to happen when purchasing Manufacturing equipment without a proper business plan.

It’s always important to address your needs for Manufacturing machines in a properly articulated business plan. Such plan addresses all your needs in Manufacturing Business, including funding, marketing, raw materials, labour, location and machines. Although, such business plan usually doesn’t come cheap. It’s in the range of N500,000 to N20,000,000 depending on the scale of manufacturing.

A good investment in a proper business plan would solve most of your Manufacturing problem by providing solutions to them. That gives you a workable document, with contacts of persons and companies of the varied things needed for the setup.

Alternatively, you can source for equipment manufacturers locally or international. And most of these equipment Manufacturers are available online. But how would you know exactly what equipment is best suited for your product without a proper business plan? An advise from an equipment vendor is usually to encourage the sales of their own equipment. A consultant gives you an honest advise for the best of your investment.

Conclusion

The vast untapped market potential in Nigeria can support different Manufacturing Business. If you are looking to invest your money securely, Manufacturing is a goldmine. The benefits are equally very tempting, with cheaper cost, brand advantage, target consumer, price monopoly, etcetera.

You don’t even have to be an engineer or have earned degree in Manufacturing. You just need to be a Manufacturing enthusiast. Once your passion for the industry is strong enough, you can get the right consultants to guide you properly.

One major setback for locally manufactured products is poor distribution channel. No matter how good your product, you need the right marketing to get it into the hands of the consumers that need them. And the best way has always been through market insertion. Once you are in major or targeted local markets, then you can drive your publicity through radio and TV to push and attract the right amount of sales in the markets.