How to start a home-based manufacturing business

If you’re a woodworker, painter, metal worker, mechanic or builder, you might have dreams of starting your own manufacturing business from the comfort of your home.

However, doing so will take a considerable amount of passion, persistence, and skill. You’ll also need low overheads to maximise your profit margin.

Whether you want to make furniture, vehicles, wood products or homemade crafts, you should read the following advice on how to start a home-based manufacturing business.

Brainstorm Product Ideas

It goes without saying you’ll want to create products based on your knowledge and skillset.

However, you must identify if there is a consumer demand for a product before you start producing mass inventory.

For example, if you’re making custom furniture, get in touch with local or national retailers to identify if they’d be happy to sell your unique products in their online or bricks and mortar store.

Check Local Regulations for Home-Based Business

Once you’ve identified the best products to produce for your target market, your next step should be to get in touch with your local council for regulations or restrictions for home-based businesses.

To run a manufacturing business from your home, you might require permission from:

  • Your mortgage provider/landlord
  • Local council (if you want to advertise outside of your property or require a licence to run your business)
  • Local planning office (if you’re making major alterations to your property)

If you will regularly create disruptive noise, fumes or traffic, it’s likely you’ll need permission to start your home-based manufacturing company.

Find a Dedicated Work Area

While a spare bedroom or basement might be fine for small scale projects, you’ll need to create a dedicated work area if you plan to work on many projects, use various tools and will create substantial mess.

If so, Steel Buildings Kit provide two building kit styles to suit your business needs.

For example, you could erect a Quonset Hut kit, which is a steel building that’s easy to assemble and can serve as an affordable workshop building.

Alternatively, you could erect a steel frame building that can complement your property.

Make Samples to Generate an Interest

Next, you’ll need to produce samples of your products, which you should present to prospective buyers to receive your first orders.

You also should take high-quality photographs of your products, which you can promote across social media, your website and on brochures and flyers.

Always have a sample to hand to demonstrate a product to customers upon request.

Set Your Pricing

Setting a price for each item you produce can be tricky. It’s essential to factor in the price of the materials, as well as your labour time.

Consider how much money you’d like to receive as an hourly rate, and don’t forget to consider your marketing, equipment and shipping costs, too.

Market Your Product

Once you have built up a large inventory of products and set your pricing, consider attending craft shows and local festivals to market your products, if possible.

In addition to accepting online orders on your website, you also could generate a profit by selling items on Etsy, eBay, or Craigslist.