Читать книгу Finance & Grow Your New Business - Angie Mohr - Страница 12

Manufacturing involves purchasing raw materials and adding labor and specialized machinery to create a product to be sold to customers. An example is a furniture manufacturer. This type of business would buy lumber from a sawmill, as well as nails, screws, glue, and varnish from a supplier. It would then have its employees use saws, drills, and other tools to turn the lumber into tables, chairs, and other furniture.

A manufacturing environment usually requires a hefty upfront investment in the equipment that will be used in the manufacturing process. Manufacturers also tend to need more highly skilled workers than, for example, a retail business. For these reasons, it is very difficult to start up a manufacturing business on a small scale and expand as you go along.

One of the main benefits of this type of business is that it can service very large customers with very specialized products. For example, a manufacturer can supply the entire North American auto industry with injection-molded fan vents.