How to Start a Manufacturing Business

Manufacturing is one of the most lucrative and productive industries in Australia. It's an industry that ships its products to both the western countries and to growing markets in Asia and that's why it always needs new workers.

At the same time, manufacturing is very dependent on the technological advancements and that's why you need to invest a lot in the business in this industry early on. Keeping up with the latest tech trends is a must even though it sometimes doesn't go hand in hand with the needs of the employees.

Choose a niche

The first thing to do when starting such a business is to choose a small niche in which you plan to work. This is a necessity because no business could cover all the needs of the industry and choosing a niche will allow you to dominate the market and to focus on what your employees are good at.

For instance, your company can focus on the undercarriage components if there's a need for them in your area and make a sustainable business plan on those alone. That's less expensive to start and the business can grow from there.

Early partnerships

The products of these businesses could rarely be sold to the public at large. They are mostly used by other businesses and they usually buy them in bulk. This has its disadvantages, but it can also come in handy at least early on.

Try to establish a partnership with a customer early on and possibly to sell some of your products in advance. This will come very handy, simply because you'll know where your next payment is coming from. Small companies have a lot of unplanned expenses and a steady stream of income means a lot.

Original design manufacturers

There's a difference between most manufacturing companies and ODMs because setting up an ODM requires much more work and a specialized workforce. The difference between these is in the fact that ODMs design their own products based on the needs and demands of the customers, instead of having a serialized production in place.

This means that your orders will be smaller and you'll have a smaller pool of customers and clients to work with. However, these businesses also make much more money, since the design orders are much harder to complete and they require a separate design team with a lot of experience.


A manufacturing company requires a lot of skilled laborers. This doesn't just mean that you need workers who are trained in the job they need to do. They also need to have relevant experience in the field, which is much harder to come by.

New companies might have trouble finding such workers since they don't have enough funds to offer them large bonuses and big salaries. In those cases, it's important for a new business to treat their workers with respect and appreciation which often means more than money.


In the end, even when there's a need for a manufacturing business, that doesn't mean it will be or remain successful. Sometimes the competitors are just too strong and there's nothing you could do. This is something to prepare for, both financially and personally.

Starting a manufacturing business is a lucrative idea, but it takes time and a lot of hard work to see it through. If you choose the right niche and form a few partnerships early on you could do great.

Guest Author

Carolin Petterson

Carolin Petterson is a businesswoman and content marketer with years of experience under her belt. She has had the opportunity to contribute to a number of popular business and marketing websites.