Manufacturing is capital intensive as you will need to fund space, equipment, raw materials, and working capital. Your next steps would involve writing up a business plan and finding investors or lenders to fund your business. You should aim to understand what would give you a competitive advantage as a manufacturer versus another manufacturer that is perhaps overseas and a low cost supplier. How do I start a small manufacturing business?Ī critical component of the starting process is to research thoroughly about the industry you expect to enter. Our template can help you decide a lot of factors while you plan your business by predicting the next five years of financial data. What financial ratios are important for manufacturing companies?Īccording to investopedia, some of the most critical ratios for a manufacturing business include inventory turnover, revenue per employee ratio, return on net assets, and manufacturing cost to expense ratio.
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