According to a 2014 study, the manufacturing sector comprises 12% of the workforce and contributes between 16% and 17% of the GDP. However, the government hopes to increase this contribution to 25% by bringing in various schemes and initiatives and boosting growth.
With the start-up economy booming like never before and emerging with potential players at the forefront, government initiatives can be the key to helping upcoming businesses meet the projected expectations.
Over the years, the country has seen several flourishing companies in the start-up segment, churning out disruptive products, many of which have even captured significant portions of the global markets.
These emerging businesses have also enabled entrepreneurship to climb new heights, urging the country’s population mainly the youth, to establish unique identities.
The Small Manufacturing Business Sector
All manufacturing businesses, large corporations, or small-scale industries incorporate different strategies into their production and promotion processes. However, there are three main strategies that most small manufacturing businesses use for their production processes.
1. Make-to-Stock (MTS)
The Make-to-Stock strategy works based on consumer demand. In this, manufacturers use customer experience and purchase data, incorporating them into their production activities, to forecast sales. So, with these insights, companies, and businesses can not only know the products their customers are looking to buy but also predict trends and buying preferences to tweak their production and sales strategies.
The Make-to-Order strategy allows manufacturers to develop custom products tailored to deliver personalized experiences. In this, customers can pre-order products they want by specifying their requirements. One advantage of this strategy is that manufacturers can make products on the go and don’t need to stock them.
Manufacturers implement the make-to-assemble technique to stock the components required to make different products, depending on demand. Here, too, customers can pre-order the products they need based on their preferences. So, when manufacturers receive orders from their customers, they can quickly gather the components, assemble the products, and get them delivered.
While most manufacturers incorporate the above three standard strategies into their production and distribution processes, they don’t come without drawbacks, as with most other such techniques. So, controlling costs, not to mention quality, and coming up with top-notch sales and promotional strategies, can help mitigate the different risks that may be a part of production and distribution.
Top Profitable Small-Scale Manufacturing Business Ideas
These days, you can start small-scale manufacturing businesses in any segment, owing to multiple marketing channels that help with customer outreach, not to mention the drive to cater to an emerging start-up in the economy.
However, while many such products may be essential, others form an integral part of the manufacturing sector and never fail. These include:
1. Wood and ceramic
2. Garments or Clothes
3. Disposable Cutleries
4. Bakery Items
5. Fashion and Jewelry
Top Profitable Home Manufacturing Business Ideas
While there is an urge to contribute to a growing economy start-up, many still refrain from creating unique products that can help them establish identities, owing to several factors – primarily, the costs. However, you don’t need to shell out much to establish a small manufacturing business – especially something you can do remotely from home. There are plenty of home manufacturing business ideas in different niches or segments that you can bring to light, including:
- Packaged food
- Ball-pen refills
- Gift items
- Nuts and Bolts
- Wood items
How to Start a Small Manufacturing Business?
India is an emerging economy headed down the start-up path and presents many opportunities that can help bring innovative and disruptive ideas to light. The manufacturing sector is a part of this trend as any other industry. Moreover, it is an important business, as its contribution to this growing economy is far more significant, especially on a consumer level but also increasingly for the B2B segment.
So, establishing your calling in manufacturing can be profitable on the local and global fronts and even in the online space, where most businesses thrive these days.
Those looking to set up small manufacturing hubs to leverage the start-up culture can start by digging deep on various levels and zeroing in on market trends and developments.
So, as a business owner or someone looking to bring their ideas from foundation to finish, you can follow these steps to establish a unique brand and identity through your products.
1. The Markets
While research should penetrate different levels and segments, focusing on global and local market trends and movements can go a long way, laying the foundation for a concrete business in manufacturing. Learning about the trends and other aspects of manufacturing from different market perspectives also helps you formulate plans to set up shop and take it to the next level.
For instance, how and where to set up plants and find investors are among a few things you will learn by studying the global and local markets.
2. The Idea
Every business starts somewhere – mainly with an idea, and knowing all you can about the manufacturing sector, will help you get that spark. So, now that you have studied the markets, identified trends, and, more importantly, a niche, you will need to develop a plan that can take your idea, or product, from conception to realization.
3. The Business
A business plan can help you realize your ideas through your products since it consists of almost every aspect, such as the operations that go into making and marketing the product, how much they cost, and how to raise funds to cover them.
So, you can set up profitable manufacturing businesses in almost any niche or segment without much investment. You can become an entrepreneur and give a name to your company if you are prepared to take the necessary steps and deal with the setbacks, or you could also set up a home-based business that can support your livelihood.
However, remember that there is always scope for growth in a thriving economy, no matter the business or niche, and you can take even something you founded at home to any level.