business plan sample manufacturing

Manufacturing Business Plan Template

Written by Dave Lavinsky

Manufacturing Business Plan

You’ve come to the right place to create your manufacturing business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their manufacturing businesses.

Sample Business Plan for a Manufacturing Business

Below is a manufacturing business plan example to help you create each section of your own business plan.

Executive Summary

Business overview.

Perfect Snacks, located in Lincoln, Nebraska, is a food manufacturing company that specializes in the production of snack foods and packaged goods. We manufacture an extensive line of snack products, including trail mix, gummies, and chocolate. Our company focuses on quality and only uses the best natural ingredients in our products. We will primarily sell our products to grocery stores and other establishments that sell snacks, but will also sell bulk orders to individual customers through our website.

Perfect Snacks was founded by Joe Boseley. Joe has been working on the manufacturing concept over the past few years and began networking with grocery store clients and locating the land to build his manufacturing and distribution center. As a line manager that oversaw dozens of employees, Joe has the proper knowledge and experience to own, manage, and operate his own manufacturing company.

Product Offering

Perfect Snacks will manufacture an extensive list of sweet, salty, and healthy snacks. Some of our initial products will include:

We will primarily sell our products to grocery stores, recreation centers, and other businesses that sell snacks in bulk. Consumers can find our products in stores or buy them in bulk on our website.

Customer Focus

Perfect Snacks will primarily serve the residents of Lincoln, Nebraska. The community has a large population of families and children, who are the primary consumers of snack foods. Therefore, we will market our products to recreational centers, schools, grocery stores, and other establishments that sell snacks to children and their parents.

Management Team

Perfect Snacks is owned by Joe Boseley, a local entrepreneur who has worked in various warehouses and manufacturing companies in Lincoln, Nebraska. Working in the manufacturing industry and in warehouses, Joe is very familiar with the processing and distribution of packaged foods. As a line manager that oversaw dozens of employees, Joe has the proper knowledge and experience to own, manage, and operate his own manufacturing business.

Joe will utilize his past experience with developing staff roles and functions. He is also very familiar with the manufacturing equipment and plans to purchase the latest technology that is efficient and cost effective. His contacts have allowed him to gain concrete Letters of Intent from local supermarket chains to have his manufactured goods in their stores.

Success Factors

Perfect Snacks will be able to achieve success by offering the following competitive advantages:

• Taste: Perfect Snacks’ snack products will be made with the highest quality ingredients and offer quality over quantity.
• Price: Perfect Snacks is able to offer the highest quality snacks at a competitive price point.
• Community Relations: Perfect Snacks will be a pillar in the community and be heavily involved in family-related activities in the area. It will sponsor events, provide snacks for schools and daycares at a discounted price, and donate a portion of its proceeds to area family-related charities and organizations.
• Proprietary Technology: Perfect Snacks will invest heavily on the latest technology to manufacture the snack foods for distribution. It will ensure the food products are made safely and free from any harmful chemicals and ingredients.

Financial Highlights

Perfect Snacks is seeking a total funding of $1,200,000 of debt capital to open its manufacturing business. The capital will be used for funding capital expenditures, salaries, marketing expenses, and working capital. Specifically, these funds will be used as follows:

• Manufacturing facility design/build-out: $400,000
• Equipment and supplies: $375,000
• Initial inventory: $100,000
• Three months of overhead expenses (payroll, rent, utilities): $250,000
• Marketing costs: $50,000
• Working capital: $25,000

The following graph below outlines the pro forma financial projections for Perfect Snacks.

Company Overview

Who is perfect snacks, perfect snacks history.

After conducting a market analysis, Joe Boseley began surveying the local vacant warehouse space and decided on a parcel of land to construct the warehouse and distribution center. Joe incorporated Perfect Snacks as a Limited Liability Corporation on January 1st, 2023.

Once the land is acquired for the warehouse space, construction can begin to build-out the manufacturing facility.

Since incorporation, the Company has achieved the following milestones:

• Located a vacant lot that would be ideal for a manufacturing facility
• Developed the company’s name, logo, and website
• Hired a general contractor and architect for the build-out of the warehouse, small office, and distribution area
• Determined equipment and necessary supplies
• Determined beginning inventory
• Attained Letters of Intent from supermarket clients
• Began recruiting key employees

Perfect Snacks Services

Industry analysis.

The Manufacturing sector’s performance is largely attributable to the value of the US dollar, commodity prices, policy decisions and US manufacturing capacity. Food manufacturing has a history of success as it produces a basic human need. According to Grand View Research, the industry is currently valued at $121 billion and is expected to expand at a compound annual growth rate of 9.5% from now until 2030.

Commodity prices are currently stabilizing from coronavirus-induced volatility and renewed demand, both in the United States and global economies, which is anticipated to facilitate revenue expansion for manufacturers. Moreover, shifting technological change in the Manufacturing sector is anticipated to benefit large, developed economies, such as the United States. Therefore, now is a great time to start a new food manufacturing company in the U.S.

Customer Analysis

Demographic profile of target market.

Perfect Snacks will serve the community residents of Lincoln, Nebraska and its surrounding areas. The community of Lincoln, Nebraska has thousands of households that have children. Statistics show that the main consumers of snack products are children of all ages. They are regularly placed in school lunchboxes, afterschool snacks and programs, and at weekend sporting events. Therefore, we will market to locations where snacks are bought by children or their parents, such as grocery stores, recreational centers, and schools.

The precise demographics Lincoln, Nebraska is as follows:

Customer Segmentation

Perfect Snacks will primarily target the following customer profiles:

• Grocery stores and recreational centers

Competitive Analysis

Direct and indirect competitors.

Perfect Snacks will face competition from other companies with similar business profiles. A description of each competitor company is below.

Snacks N More

Snacks N More is another local manufacturing company that provides snack food to the immediate area. Established over thirty years ago, the company has the knowledge and expertise in food processing, commercialization, and packaging. They are known as a recognized ingredient supplier for the foodservice industry. Their portfolio of products include a variety of nuts, snacks, confections, and dry-blend ingredients. As a private label manufacturer, Snack’s More produces a full line of non-chocolate candy, nuts, and fruit-flavored snacks. The company is known for their fruit flavored snacks, dried raisins, nut mixes, and producing ingredients for local restaurants and establishments. Their line of nuts and dried fruits are often used for baking purposes.

Jaxon’s Candy

Jaxon’s Candy is a manufacturer of all things candy related. As a contract manufacturer, the company works with many companies to create their custom designed confections. Their large 50,000 square foot facility produces over 300,000 pounds of candy every month. All of the products are highly concentrated either in sugar or chocolate, or both. Jaxon’s Candy also designs and manufactures their own custom packaging. The candy produced is also kosher certified, gluten free, peanut free, and non-GMO.

Jaxon’s Candy currently manufactures candy for the following brands – Tommy Candy, Laffy Town, Chocowhoawhoa, Jellylicious, Healthee Candeee, and Sticky Teeth. Jaxon’s Candy can be found in grocery stores and convenient stores along the west coast of the United States.

Gimmy Candy

Gimmy Candy is located in the midwestern portion of the United States and boasts a facility of over 1 million square feet. Their fleet of transportation trucks distributes throughout the continental United States and is considered one of the largest candy manufacturers in the country. Their product portfolio includes assorted chocolates, gummy candy, hard candy, fruit candy, as well as gums and mints. Gimmy Candy was established in 1947 and has grown to be a model of manufacturing companies the industry uses as a model of sustainability and profitability. Their lineup of candy products can be found in every single grocery store and convenient store in the country. Gimmy Candy is considering expanding its distribution globally and start exporting its candy products to Asia, Canada, Europe, and South America. As one of the largest privately held companies in the United States, Gimmy Candy is also considered a top employer in the country and offers its employees a generous benefits package.

Competitive Advantage

Perfect Snacks will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Perfect Snacks will offer the unique value proposition to its clientele:

• Fresh and comforting taste
• Community family advocate
• Developed with proprietary technology
• Manufactured with fresh, quality ingredients
• Affordable price

Promotions Strategy

The promotions strategy for Perfect Snacks is as follows:

Social Media

Perfect Snacks will invest heavily in a social media advertising campaign. The brand manager will create the company’s social media accounts and invest in ads on all social media accounts. It will use a targeted marketing strategy to appeal to the target demographics.

Website/SEO

Perfect Snacks will invest heavily in developing a professional website that displays all of the features and benefits of the snack products. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Major Publications

We will also invest in advertising in selected larger publications until we have achieved significant brand awareness. Advertisements such as billboards and commercials will be shown during peak tv watching time and the billboards will be placed in highly trafficked areas.

Sponsorships

Perfect Snacks will also invest in sponsoring certain athletic and school events so that their banners and collateral material are displayed all over the event where numerous parents and children are at.

Perfect Snacks’ pricing will be moderate so consumers feel they receive great value when purchasing our snack products.

Operations Plan

The following will be the operations plan for Perfect Snacks.

Operation Functions:

• Joe Boseley will be the CEO of Perfect Snacks. He will oversee the general operations and executive aspects of the business.
• Joe is joined by Candace Smith who will act as the warehouse manager. She will train and manage the staff as well as oversee general production of our products.
• Joe will hire an Administrative Assistant, Marketing Manager, and Accountant, to handle the administrative, marketing strategy, and bookkeeping functions of the company.
• Joe will also hire several employees to manufacture our products and maintain the equipment and machinery.

Milestones:

Perfect Snacks will have the following milestones complete in the next six months.

• 02/202X Finalize lease agreement
• 03/202X Design and build out Perfect Snacks
• 04/202X Hire and train initial staff
• 05/202X Kickoff of promotional campaign
• 06/202X Launch Perfect Snacks
• 07/202X Reach break-even

Perfect Snacks is owned by Joe Boseley, a local entrepreneur who has worked in various warehouses and manufacturing companies in Lincoln, Nebraska. Working in the manufacturing industry and in warehouses, Joe is very familiar with the processing and distribution of packaged foods. As a line manager that oversaw dozens of employees, Joe has the proper knowledge and experience to own, manage, and operate his own production business.

Financial Plan

Key revenue & costs.

Perfect Snacks’ revenues will come primarily from its snack food sales. The company will sell the packaged snacks in local grocery stores, convenience stores, and other locations. As the company’s revenues increase, it will look to gain a wider distribution area.

The land purchase, equipment, supplies, opening inventory, and labor expenses will be the key cost drivers of Perfect Snacks. Other cost drivers include taxes, business insurance, and marketing expenditures.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Average order value: $250

Financial Projections

Income statement, balance sheet, cash flow statement, manufacturing business plan faqs, what is a manufacturing business plan.

A manufacturing business plan is a plan to start and/or grow your manufacturing business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Manufacturing business plan using our Manufacturing Business Plan Template here .

What are the Steps To Start a Manufacturing Business?

Starting a new manufacturing business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Manufacturing Business Plan – The first step in starting a business is to create a detailed manufacturing business plan that outlines all aspects of the venture. This should include market research to define your local market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure – It’s important to select an appropriate legal entity for your manufacturing business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your manufacturing business is in compliance with local laws.

3. Register Your Manufacturing Business – Once you have chosen a legal structure, the next step is to register your manufacturing business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options – It’s likely that you’ll need some capital to start your manufacturing business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location – Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees – There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Manufacturing Equipment & Supplies – In order to start your manufacturing business, you’ll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business – Once you have all the necessary pieces in place, it’s time to start promoting and marketing your manufacturing business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

• Sample Business Plans
• Manufacturing & Wholesale

Manufacturing Business Plan

If you are planning to start a new manufacturing , fabrication, or production business, the first thing you will need is a business plan. Use our business plan example created using upmetrics business plan software to start writing your business plan in no time.

Before you start writing your business plan for your new manufacturing business, spend as much time as you can reading through some examples of manufacturing, fabrication, or production business plans.

Reading some sample business plans will give you a good idea of what you’re aiming for. Also, it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this business plan example for you to get a good idea about how a perfect manufacturing business plan should look like and what details you will need to include in your stunning business plan.

Manufacturing Business Plan Example Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

• Business Profile Summary
• Market Research Summary
• Marketing Summary
• Business Description
• Unique Value Proposition
• Company History
• Legal Structure
• Vision & Mission
• Professional Advisors
• Goals & Objectives
• Premium Sustainable Leather Designer Bag
• Alternate Sustainable Material Bag
• Heirloom Limited Edition Bag
• Basic Purse
• Industry Profile & Outlook
• Local Market
• Ci Comme Ca
• Target Market
• Customer Survey Summary
• Premium Sustainable Leather Material Bag
• Digital Marketing
• In-Person Marketing
• Print Marketing
• Location(s)
• Legal Issues
• Insurance Issues
• Jennifer Martinez
• Packaging/Shipping/Handling
• Manufacturing Assistant
• Marketing Designer
• Production Flow and Delivery Method of Products and Services
• Risk Assessment
• Breakeven analysis
• Projected Profit and Loss
• Projected Cash Flow
• Projected Balance Sheet

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After  getting started with upmetrics , you can copy this manufacturing business plan example into your business plan and modify the required information and download your manufacturing business plan pdf and doc file . It’s the fastest and easiest way to start writing your business plan.

What to include in a manufacturing business plan?

Now before you go ahead and write your plan, we’ll discuss a few main sections that’ll help you write a well-rounded plan:

1. Executive Summary

The executive summary section of your business plan sums up everything that your business stands for. It consists of a summary of all the major sections of your business plan including the mission and vision statement, market research, marketing, and finances.

If you want to explain your business idea to someone in under 10 minutes, an executive summary would do the job. If you plan on getting funded, write a good and well-rounded executive summary as this is probably the only section your investor would read.

For example, if you are going to manufacture bags your executive summary would consist of a brief description of your target audience, your product, major points of market analysis and financial plan, your funding requirements and how would you provide a return on that funding.

2. Business description

This section consists of information about your company ranging from your product, and the size of your team to your legal structure. It describes the aims and objectives of your business and what you do to fulfill them.

This section sums up the structural and legal aspects of your business. It serves as a reference whenever you want to make changes to your company’s structure.

Continuing the above example of a bag manufacturing unit, your business description would consist of the following things:

• The part of bag production your unit participates in.
• The number of employees and their position in your company.
• The legal structure of your business .
• The market needs your business fulfilled.

3. Product Description

This section consists of a detailed description of your product, the market it caters to, and your pricing strategy.

This section helps you define your product clearly and concisely. It also helps your customers understand your product and its purpose better.

For example, as a bag manufacturing unit, you will note down the size, the material, and the type of bags you manufacture.

4. Market Research

This section would consist of everything you can find out about your industry through research. It consists of an overview of your industry, market size, major competitors, and target market.

This section comes in handy for formulating your marketing strategy and for finding your USP. Moreover, it helps you optimize your product as per the tastes and preferences of your customers.

For example, like a bag manufacturing business, you’ll research the bag industry, the local market, what market segments buy bags, out of them who will be your target audience, and finally what kind of bags your target audience prefers.

5. Sales and Marketing Strategy

This section would consist of the mediums you will use for reaching out to your target audience. It would also consist of methods of highlighting your USP for attracting a customer’s attention toward your product.

This section is necessary for letting your target audience know about your existence. You can promote your product through various mediums like print, advertising, digital media, etc.

For example, like a bag manufacturing business, your target audience will be bag wholesalers and retailers, you’ll have to find what kind of bags they prefer buying, what terms and conditions do they prefer, and what medium you can use for reaching out to them.

While selling your bags you must always try to find a middle ground between the deal the wholesaler or retailer wants and the one you are willing to offer.

6. Operations Plan

Your operations plan consists of your goals and aims for your business, as well as the ways for achieving them. It typically describes what an average day at your business would look like, and what target would your daily business activities help in fulfilling.

Your operations plan helps you stay organized as a business. It also helps you manage your business smoothly and efficiently.

Continuing the above example your operations plan would consist of the number of bags you’ll manufacture per day, the sales and marketing you’ll carry out on a daily, weekly, or bi-weekly basis, etc.

7. Financial Plan

The financial plan section consists of your funding requirements, projected balance sheet, cash flow , and profits.

A good financial plan helps your business in becoming a profitable one. Moreover, it keeps your business afloat during difficult times.

As a manufacturing business, you will include your cost of production, the number of units you’ll have to sell to reach the break-even point , and how you will optimize the production cost and other miscellaneous costs to make your business a profitable one.

Download a sample manufacturing business plan

Need help writing your business plan from scratch? Here you go; download our free manufacturing business plan pdf to start.

It’s a modern business plan template specifically designed for your manufacturing business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Manufacturing business plan summary

In conclusion, a manufacturing business plan can help you decide everything ranging from your production to marketing and pricing strategy.

Moreover, it eliminates the hassles of doing business and helps you manage your business better. It also helps you recognize loopholes in your ideas and way of working.

Above all, a business plan prepares you equally for threats and opportunities. So if you want to start your manufacturing business, go ahead and start planning.

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Getting started: A guide to creating a manufacturing business plan

What is a manufacturing business plan.

A manufacturing business plan is a formal document that outlines the goals and objectives of your business. It includes detailed information about your: 

• Products or services 
• Target market 
• Marketing strategy
• Financial projections 
• Operational details  

The purpose of a business plan is to give you a roadmap to follow as you build and grow your business. It forces you to think through every aspect of your venture and identify potential problems or roadblocks before they happen. 

Manufacturing business plans can also be used to attract investors or secure funding from lenders. If you are looking for outside financing, your business plan needs to be even more detailed and include information on your management team, financial history, and expected growth. 

Ideally, you should update your business plan yearly to ensure that it remains relevant and accurate. As your business grows and changes, so too should your plan. 

Why does a manufacturing company need a business plan?

No matter how simple or complex your ideas may be, you need a plan, or they will never become a reality. A business plan will clearly understand your costs, competition, and target market. It will also help you to set realistic goals and track your progress over time. 

Let’s look at a manufacturing strategy example. You have a great idea that you think will revolutionize the  automotive industry . Your new safety harness will be made from a lightweight, yet incredibly strong, material that cannot be cut or torn. You are confident that your product will be in high demand and generate a lot of revenue. 

But before you walk into Ford or Toyota to try and get a  purchase order , you need to have a plan. You must know: 

• How much will it cost to produce your product
• How many units do you need to sell to break even 
• Who is your target market is 
• What is your competition selling 
• How will you reach your target market 

You also need to clearly understand the regulatory landscape and what it takes to bring a new product to market. All of this information (and more) should be included in your business plan. 

This is not just a document that you create and forget about. It is a living, breathing tool that should be used to guide your actions as you build and grow your business. 

What are the key components of a business plan?

Every manufacturing business plan will be different, but almost always, they will include the same five components: 

Executive summary

Company description, products and services, market analysis.

• Financial plan 

Let’s take a closer look.

The executive summary is the first section of your business plan, but it is typically written last. This is because it should be a concise overview of everything that follows, and you can only do that once you have completed the rest of your plan. 

Include the following in your executive summary: 

• The problem that your product or service solves
• Your target market
• Your unique selling proposition (what makes you different from your competitors?)
• Your manufacturing business model (how will you make money?)
• Your sales and  marketing strategy
• A brief overview of your financial projections

Someone should be able to quickly scan through your executive summary and have a pretty good understanding of what your business is and how it plans to be successful. 

This is where you can get a bit more creative, explaining your company’s history, mission, and values. You will also include information on your team or management structure. 

It can be simple but should inspire faith in your ability to execute your business plan. 

You will need to provide a detailed description of your product or service, as well as any unique features or benefits that it offers. You should also include information on your  manufacturing process  and  quality control  procedures. 

If you have any patents or proprietary technology, they should be listed here as significant assets for your business. 

For example, let’s say you are planning on creating a brand-new line of disposable coffee cups. The dimensions, materials, and other specifications would be listed here, along with any unique benefits (such as being made from recycled materials). 

You might also include information on your manufacturing process, such as the fact that the cups will be produced in a certified clean room or that you will employ workers local to where the product is sold.

Chances are, you started down this path because you realized that there was a market opportunity for your product or service. In this section, you will need to provide detailed information on the opening, as well as the analysis that convinced you to pursue it. 

This should include: 

• Market size (current and projected)
• Key market segments
• Customer needs and wants
• Competitive landscape 

This is where you will need to do your homework, as you will be justifying your business decision to enter this particular market. The more data and analysis you can provide, the better. 

For our coffee cup example, the market analysis might include:

• Information on how many cups are used every day 
• Projected growth 
• Key segments (such as office workers or on-the-go consumers) 
• Customer needs (such as convenience or sustainability)  

It would also examine the competitive landscape, including both direct and indirect competitors.

Financial plan

You’re in this to make money, and so are your potential investors. In this section, you will need to provide detailed information on your manufacturing business model and how it will generate revenue. This should include: 

• Initial investment
• Sales forecast
• Carrying costs
• Pricing strategy
• Expense budget 

You will also need to provide information on your long-term financial goals, such as profitability or break-even point. Discuss production line details,  inventory management strategies , and other factors impacting your bottom line.

How to write a business plan for a manufacturing company

The process of creating a business plan for a manufacturing company is similar to any other type of business. However, there are some key considerations to keep in mind. 

First, you need to understand your industry and what it will take to be successful in it. This includes understanding the competitive landscape,  the costs of goods sold , and the margins you can expect to achieve. 

You also need to have a clear understanding of your target market and what needs or wants your product or service will address. This market analysis should include information on your target customer’s demographics, psychographics, and buying habits. 

While there will be many things specific to your company, here are five questions to answer for each of the sections listed above. 

Executive summary: 

• What is the problem that your company will solve? 
• How will your company solve that problem? 
• Who are your target customers? 
• What are your key competitive advantages? 
• What is your business model? 

Company description: 

• What is the legal structure of your company? 
• What are your company’s core values? 
• What is your company’s history? 
• Who are the key members of your management team? 
• Where is your manufacturing facility located? 

Products and services: 

• What product or service does your company offer? 
• How does your product or service solve the problem that your target market has? 
• What are the key features and benefits of your product or service? 
• How is your product or service unique from your competitors? 
• What is the production process for your product or service? 

Market analysis: 

• Who is your target market? 
• What needs or wants does your target market have that your product or service will address? 
• What is the size of your target market? 
• How do you expect the needs of your target market to change in the future? 
• Who are your key competitors, and how do they serve the needs of your target market? 

Financial plan:

• What are the start-up costs for your company? 
• How will you finance your start-up costs? 
• What are your monthly operating expenses? 
• What is your sales forecast for the first year, and how does that compare to your industry’s average sales growth rate? 
• What are your gross margin and profit targets?

Even if you do nothing but answer these questions, you’ll be well on your way to creating a thorough manufacturing business plan. 

How to stabilize your growth

When getting started, managing your business with spreadsheets might be okay. But, once sales and manufacturing orders start to increase, the inefficiencies of manually managing your business come to light. That’s why many turn to automation to keep their manufacturing on track.

Common mistakes to avoid

However, new manufacturing entrepreneurs often fall into a handful of traps when creating their business plans.

• Not doing enough research  – You can’t know everything about your industry, but you should do your best to understand as much as you can before writing your business plan. This means talking to experts, reading trade publications, and studying the competition
• Not being realistic  – It’s important to be optimistic when starting a new business, but you also need to be realistic. This is especially true when it comes to financial projections. Don’t overestimate the amount of revenue you will generate or underestimate the costs of goods sold
• Not having a clear understanding of your target market  – You need to know who you are selling to and what needs or wants your product or service will address. This market analysis should include information on your target customer’s demographics, psychographics, and buying habits
• Failing to understand your competition  – You need to know who your competitors are, what they are offering, and how you can differentiate yourself. This information will be critical in developing your marketing strategy
• Not having a clear vision for the future  – Your manufacturing business plan should include a section on your long-term goals and objectives. What does your company hope to achieve in the next five years? Ten years? Twenty years? 

Creating a business plan for manufacturing can be simple. It can be quite simple if you break it down into smaller pieces.

Once you have it in place, staying on track can be quite a bit more difficult. By using  ERP software like Katana , you can track all of your key metrics in real time, avoid any potential issues, and make course corrections as needed. 

To start following your plan and creating a successful manufacturing company,  get a Katana demo  today.

Table of contents

Manufacturing guide.

1. What is manufacturing

1. 1. Production vs. manufacturing

1.2. Production scheduling software

1.3. Production tracking software

2. How to start a manufacturing business

2.1.How to manufacture a product

2.2. Manufacturing best practice

2.3. A guide to creating a manufacturing business plan

2.4. Manufacturer ecommerce

2.5. Marketing for manufacturers

2.6. Manufacturing business processes

2.7. Food manufacturing

2.8. Small business manufacturing software

3. Manufacturing processes

3.1. Job shop manufacturing

3.2. Production quality control checklist

4. Lean manufacturing principles

4.1. Just-in-time (JIT) manufacturing

4.2. Tips to reduce manufacturing waste

4.3. Manufacturing KPIs

5. Light manufacturing

6. Advanced manufacturing

7. IoT in manufacturing

8. Manufacturing challenges

9. Total manufacturing cost

9.1. Manufacturing overhead formula

9.2. Manufacturing inventory software

10. Good manufacturing practices

11. MRP systems

11.1. MRP in supply chain management

11.2. Best MRP software

12. Manufacturing ERP systems

12.1. Best ERP software for manufacturing

12.2. Manufacturing execution systems (MES)

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