If your startup is based on a new product, your relationship with a manufacturer could be the most important partnership you will form. Your manufacturer will strongly influence the quality of your product, your speed to market, and whether you can make and keep delivery commitments to retailers and to consumers.
“There’s nothing that can move an entrepreneur with a product to the next level of business like a good manufacturer,” says Gene Pepper, a California-based small business consultant. “On the other hand, there’s nothing that can sink a new company quite like a bad manufacturing relationship.”
Here are three things you must do before establishing this crucial relationship:
- Do thorough research
- Consider using a rep
- Settle the overseas question
Do thorough research into manufacturers
There are thousands of contract manufacturers out there. You can do most of your research on the internet or at a library. And you can browse products that are related to your product at retailers to glean information about manufacturers from product packaging.
Start by determining which manufacturing code covers your product; a system called the North American Industry Classification System (NAICS) has superseded the previous Standard Industrial Classification (SIC) codes. Then canvass for manufacturers in that code. Contact trade associations. Get the help of a local SCORE (Service Corps of Retired Executives) counselor. Attend trade shows for the industry .
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