Guide to Starting and Running

Innovation is Key to Continuing Success.
Make sure that 
the product or products you manufacture continue to 
attract a growing audience . The most damaging thing 
you can do is to continue making a product that is 
steadily growing obsolete . Innovation and updating are 
key to the ongoing success of your products . To excel at 
manufacturing you must become a master of innovation . 
Can you envision a new use for your product? Can you 
see how to make a minor change in your product that 
will bring it new attention or make it more efficient? Keep 
alert to the principles of continuous improvement . Listen 
to your customers . If you have good communication with 
your customers, you can more effectively make changes 
that they believe would be beneficial .
Just as innovation applies to your products, it also applies 
to your production process . Can you look at your current 
methods of production and see ways that it can be improved 
and made more efficient? Are there ways to improve quality 
control? Can costs be reduced by streamlining the procure-
ment process? The production process? The distribution 
process? Keep looking, and don’t be shy about making 
changes that will improve the process or reduce the costs . 
Remember, if you can cut the costs while maintaining the 
quality of your product, you will be more competitive .
Concentrate on These Issues.
Many of the special consid-
erations for starting a manufacturing business continue 
or evolve as the business matures . Moreover, new issues 
emerge . You may want to make plans to address these situ-
ations as your manufacturing business succeeds and grows .
• Don’t Ignore the Lifecycle of Your Product
• Distinguishing Yourself from the Competition
• Complying with Regulations, Labor Law and 
Intellectual Property Law
• Growing Your Business with Exports
Special Considerations for Running & Growing Your Manufacturing Business

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Don’t ignore the lifecycle of your product
Ongoing research and development on new products or 
new uses of existing products usually leads to the path 
for manufacturing success . There is a standard cycle of 
product development — a lifecycle for products . And it 
can be broken down into phases .
• In the evaluation and development phase, before 
production even begins, you limit and focus your 
investment on research and development .
• In the introduction phase, you invest in production 
and begin to build up and maintain an inventory of 
finished goods as you begin to sell products .
• In the growth phase, you begin to focus your invest-
ment in marketing, expanding your markets and your 
sales (this is the phase where sales levels will peak) .
• In the mature phase, you begin to focus on maximiz-
ing profits in a developed and relatively stable market .
• And, finally, in the decline phase, you must change 
your focus to minimizing your losses as the product 
losses popularity and sales slacken .
By the time your product reaches the phase of decline 
during the mature phase, you must begin a new cycle 
of investment for a new or improved product that 
can generate a whole new lifecycle . If you don’t pay 
attention to the lifecycle of your products, and if you 
don’t focus on innovation and development of new 
and improved products, the lifecycle of your entire 
business will be cut short .
Distinguishing yourself from your 
competition
You should strive to create a unique identity for your manu-
facturing business in the marketplace . Your customers 
need to recognize that your product is different in some 
way from other competing products . You need to show 
that your product has benefits that the other products 
can’t offer . Simply put, you must give customers a reason 
for buying your product instead of another product . 
It helps, too, if your customers see something unique and 
special about you and your company, not just about your 
product . The way you operate your business and the way 
you relate to customers offers additional opportunities 
to extend the distinctiveness of your entire enterprise . It 
takes a combination of character and capability to make 
an impression on your customers . Just like you must give 
them a reason to buy your product, give them a reason 
for doing business with you and your company . This is the 
best way to distinguish yourself from the competition .
Of course, you can’t stop with just focusing internally . You 
will need to keep a close eye on the competition so you 
can keep meeting the needs of the marketplace . A steady 
program of competitive research will pay dividends in 
the operation of your enterprise . You can follow or copy, 
or you can innovate and respond to your competitors’ 
activities . But you must know about them first .

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Complying with regulations, labor law 
and intellectual property rights