How to open your own production?

Often, many people who decide to become entrepreneurs have a desire not only to make a profit from their business, but to directly take an active part in it - to work and produce the goods themselves. However, how to make your own production uninterrupted and in demand? The reader is invited to answer this question in this article.

What is own production?

First you need to deal with terminology. From the point of view of the economy, any production is a process associated with the manufacture of various kinds of products.

own production

Commercial activity - a set of measures aimed at making a profit by making transactions on the sale of goods or services.

The concept of "own production" (or production activity), in turn, means that a person is personally engaged in the manufacture of something. We’ll talk about this today.

Where to start your own production? Specialization Choice

Many experienced businessmen recommend starting a production activity with a narrow focus. This can be explained quite simply.

Firstly, this will significantly reduce the initial investment in the case, because the demand for the manufactured product will be not numerous, but stable (an ideal launching pad for the development of small capital).

Secondly, personal participation in the production of goods will help to focus on it, and this, in turn, will become a good motive for increasing the quality of products and improving the process.

business home production

Naturally, high-quality products of their own production will have a good reputation in the market, which will be another indisputable advantage for an entrepreneur.

There can be many options here: from the manufacture of small household items (decorative shelves, candlesticks, etc.), souvenirs, knitwear, to art forging (for example, various window bars, gates) and furniture.

However, do not lose sight of the fact that there are products for the production of which a license is required.

Formation of a legal and material foundation

Further development of our own production has two options: depending on its focus and volume, a person who decides to organize a business can conduct his activities as an individual entrepreneur or legal entity.

products of own production

The latter option is suitable if the entrepreneur plans to work with medium or large production.

In order to calculate the costs of his own production (more precisely, his education), a businessman can be based on the following factors:

  • Formal registration of their activities in the relevant authorities.
  • Buying or renting a room where the business will be conducted (home production, in our case).
  • Purchase or rental of special equipment needed for production.
  • Salary to employees, as well as costs for them (for example - registration of a work book, purchase of accessories necessary for work, etc.).
  • Marketing and advertising activities.

The last point should be given special attention for the reason that today people advertise almost everything: their business, home production, services provided, etc.

It should be noted that advertising should not be intrusive - otherwise the entrepreneur may earn a bad reputation.

There are a lot of options for good and really effective advertising at the moment. For lower costs, you can limit yourself to hiring several promoters or advertisers (for advertising, as a rule, special message boards will be posted).

We include working personnel

It is no secret to anyone that labor is necessary in any production . Without it, business, households will not last long (if they can exist at all).

If we are talking about small-scale production, then the best option would be to hire a team of workers under the supervision of the team leader. When hiring, preference is best given to specialists who are well versed in the field of production.

development of own production

In addition to the worker, it is necessary to hire and maintenance staff. Usually it is: driver (part-time courier), loader, storekeeper, gauger. Some specialties and positions can be combined.

Sources of financing

Any business, if, of course, the entrepreneur has serious intentions, requires significant investments.

Many businessmen who deal with industrial activities prefer to take loans from banks. The fact is that today many banks regard such production as a profitable business and are happy to finance it, giving the entrepreneur a targeted loan.

Often, in relation to entrepreneurship, various kinds of shares are held, allowing the businessman to get loans on conditions that are quite favorable for the business (most often, such privileges apply to agriculture).


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