A cottage industry is when someone is running a manufacturing operation out of their house. Scented candles, fragrances, garments, jewelry, custom computers, and baked goods are examples of products which can be made in an attic, basement, garage, or spare bedroom.
Thanks to the internet and the resulting rise in e-commerce, these home-based businesses are thriving more than ever before. If your cottage industry is booming, it might be time to consider converting it into a full-fledged manufacturing operation.
We’re talking about taking your existing business and transplanting it into a facility where production can be scaled up. This also means hiring staff to help manage the increase in workload. While it might sound intimidatingly difficult, the shift from cottage industry to a standalone operation is not as hard as it sounds.
The central component of turning a cottage industry into a full-fledged business is focusing on scale. Simply put, your goal is to take your existing operation and amplify it in a way that matches demand but doesn’t lead to overproduction or waste.
In anticipation of investing in machinery to automate the existing manufacturing process, investing in lean manufacturing software will prove to be a wise opening move. Developed in post-war Japan and refined over the last 70 years, lean manufacturing is a way to optimize production and avoid overburden.
For cottage industries in the process of scaling up to larger operations, lean execution provides a means to do so without running into obstacles related to supply, assemblage, and other central factors. The many benefits of lean manufacturing are outlined here: https://www.leading2lean.com/why-lean-execution/.
Of course, in order to successfully manage a factory floor, you’ll need to have one first. We suggest taking a look at industrial parks in your area. These areas are zoned specifically for small-to-medium sized manufacturing operations. Most major cities have several industrial parks in the suburbs and outlying areas, allowing you to shop around.
The next step involves finding the machinery necessary to produce at a much large scale. Most cottage industries-turned-standalone manufacturing will wind up financing the machines and devices used to mass produce their product. We recommended searching for used options whenever possible; most used manufacturing machinery is far from its life expectancy while priced dramatically lower than newer models.
Assuming you’ve never hired anyone before, the thought of bringing employees into the fold probably sounds pretty intimidating. The truth is that becoming an employer is not as complicated as you might think. Those in the United States can consult the Small Business Administration’s guide on how to hire and manage employees to learn more.
Given the likelihood of your in-house manufacturing employees operating around heavy machinery and other potentially dangerous gadgets and gizmos, workplace safety must be a top priority. Industrial accidents rank high on the list of causes for worker injury and wrongful death, so don’t cut corners with safety. The lives of your workers and the fate of your business will depend on it.
The path from a cottage industry to full-fledged manufacturing operation is road mapped for your convenience. Assuming you’ve already established the demand by providing a terrific product, the only thing left to do is follow the directions to greater success.