The manufacturing phase of product development is one of the stages that causes hardware startups the most stress. By the time you reach the manufacturing phase, you have a solid design in place, funding efforts are either underway or nearing completion and you now find yourself with the (daunting) task of securing a manufacturing partner. Keep in mind that manufacturing, either locally or abroad, comes with obstacles—however, these obstacles don’t have to be a crushing deal breaker for your startup.
If you have decided to manufacture your product abroad, there are a few additional obstacles that need be accounted for. Below we discuss five challenges your hardware startup will face while manufacturing your product abroad.
It’s no secret that business is done differently all over the world. In one country a handshake can seal the deal, while in another a deal may quickly vanish if you find yourself late to a meeting. Before you start connecting with manufacturers, learn the culture. Research cultural etiquette and, if possible, talk to others that have done business in the country before. A little research ahead of time, can save you major heartache later on.
When you are not in the same country as your manufacturer it is very easy to lose product quality. Things usually start off well, yet as days turn into weeks and weeks turn into years, quality can fade without your awareness. To protect yourself and the integrity of your product, be sure to include quality clauses in your contract and continuously examine and test your product.
Most of the time you will need to order large quantities to receive a price break and make it worth while for your business. Quantities of this size can cause a bit of a cash crunch for a hardware startup just gaining its footing. With larger quantities also comes longer wait times. You may find yourself waiting months for your product to make it to the United States.
Choosing the Right Manufacturer
Whether you are manufacturing abroad or at home, this is always a challenge. Ideally you want a manufacturing partner that has experience manufacturing similar products to yours who is easy to communicate with. Vet prospective manufactures and select a factory that has the best reputation. If you are not able to inspect the manufacturer and factory on your own, consider outsourcing an audit. Before the contract is signed, do your due diligence so you can be confident that your product is in the right hands.
If you are manufacturing your product in another country there will be the additional costs associated with logistics. These fees can vary widely and become shockingly high if not researched properly. Before finalizing your decision of manufacturing abroad, take this cost into consideration to be sure that it isn’t a deal breaker for you.
Manufacturing abroad comes with certain trade-offs. Do your research and reach out for experienced expert advice before you delve into this phase of product development.
3D Innovations is a Product Development Company – from the 3D Design to a fully functional 3D Prototype & Product.