Once you have a concept and business model set up, you need to bring your product to market. For most startups, there is no bigger concern than product manufacturing. The process of finding a manufacturer, let alone paying for one, is why most concepts never become realities. It doesn’t matter how large or small you plan on starting out, there are ways to manufacture your product and fund your company without starting in the negative.

Get Referrals

Referrals are out there for product manufacturing. Check community websites and forums, post queries and see what referrals you receive. Also, ask local businesses and contacts if they have referrals. Most referral manufacturers are trustworthy, because they’ve been used before by other start-ups just like you. You can also check with a marketing services vendor to see what manufacturing contacts they have.

U.S. Versus Overseas Product Manufacturing

You’ll have to determine if you want to manufacturer domestically or if you want to go with foreign product manufacturing. When you manufacture in the U.S. you’re likely to receive higher standards and labor practices. Also, you won’t have a language barrier when you manufacture in the same country. You’ll also have access to on-site visits and the manufacturer representatives are more accessible than if you select an overseas provider. All of that being said, it’s likely you’ll pay more for domestic manufacturing than overseas.

Overseas manufacturing is done for a fraction of the cost compared to most United States-based companies. You’ll have a higher number of manufacturers to choose from as well. But, there might be a significant language barrier, which may mean your product doesn’t translate well. Some countries don’t believe in intellectual property rights either, so you might find your design or unique product sold elsewhere.

Analyzing Your Manufacturers

Once you’ve determined who you want to manufacture your product you’ll need to check their personal references and contact the factory’s representative directly. If you can, schedule an on-site tour of the facility. Other things you’ll want to investigate when you speak to their referral customers or their representative include:

• Seeing if products are made to their customer specifications — ask a current or past customer how their products turned out.
• How many of the products manufactured or the percentage of the products that were defective.
• How the factory handles problems with manufactured products.
• If the manufacturer offers restitution or how they handle defective items.
• How quick the representative is to return your calls/emails.
• The types of companies and industries they manufacture for.
• How many orders are typically placed with them in a week and how quickly they’re completed?
• The overall quality of products produced by that manufacturer.

Funding Your Manufacturing

It is next to impossible to fund your product manufacturing out of your own funds. While you can take loans, many commercial lenders are cautious about lending to startups. Therefore, your best option for funding is through crowdfunding campaigns. Crowdfunding campaigns are started on dedicated funding websites. You’ll create a profile and campaign for your company and mission. It is important that you’re clear in your campaign about why you need the money, what makes your company unique (convince the readers why your products will sell), and how you will use the funds from your campaign. You should have defined, clear short and long-term goals in your campaign. Hire a copywriter, if you can, to write your campaign for you. This will ensure your campaign is compelling, grammatically correct and complete.

Starting a new venture is exciting, but it can be costly. By taking the steps to find the right product manufacturing company and funding your startup smart, you can minimize your risk and start your business off in the positive.