Do you want to start a Manufacturing business plan?
Have you been thinking about starting a manufacturing business? It’s a great plan if you are. Some of the most profitable businesses happen to be in the manufacturing line. So, you don’t need to worry about market involvement. However, to create a successful business, you will need a manufacture business plan.
Though it is very profitable to start a manufacturing business, you need some money to get it off the ground. If you have enough money, then you’re set. However, if you need capital, you need to apply for a bank loan for business.
Once you’re all set with the financial part of the business, you need to start developing a business plan. You can learn how to write a manufacturing business plan by taking help from this document.
2.1 The Business
Henry Works will be a startup manufacturing business plan started and owned by Henry Langerman. The business will provide manufacturing services to people in and around Oregon. It will offer services like the development of manufacturing chains in different companies. It will also handle manufacturing for small-scale companies while consulting with medium-level businesses.
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2.2 Management of Manufacturing Company
Provided that you have an idea, you will need a manufacturing business plan proposal to make that idea a reality.
For guidance, you can go through manufacturing business plan examples or even a woodworking business plan. You can also take help from an investment group in this business as they can guide you better in the financial aspect of the business.
In this manufacturing business plan pdf, we are providing all the necessary details necessary to make a business successful from the start.
2.3 Customers of Manufacturing Company
The customers of Henry Works will primarily be other businesses who will buy raw manufactured material from Henry Works and develop it the way they want at their end. Our main customer groups, in this case, will be:
- Production/Merchandising Companies
- Smaller Manufacturing Units
2.4 Business Target
Our primary goal is to become a trustworthy manufacturing business that can cater to the needs of its customers at all times.
The monetary targets we want to achieve within the first five years of starting are as follows:
3.1 Company Owner
Henry Works will be owned by Henry Langerman, who completed his MBA four years ago. After graduation, he was attached to a large consulting and manufacturing company for three years, where he learned all the fundamental principles of business in the real world. He then left his job for helping his dream of manufacturing business to start.
3.2 Why the Manufacturing company is being started
During his BA, Henry had noticed that it is costly to come by bulk material in Oregon. And after some research, he understood that it was because of a lack of manufacturing businesses around Oregon. Therefore, he decided to start working on a business continuity plan template for manufacturing.
3.3 How the Manufacturing company will be started
Step1: Plan Everything
Before starting a business, you need to develop a good business plan. Whether it is a business plan for a metal casting shop or a manufacturer business plan, it will guide you in starting up your business.
If you are wondering how to write a business plan pdf manufacturer for your business, you can take help from this business plan. For general guidance, you can also refer to a business plan written for sewing or a small manufacturing business plan. Through these business plans, you will plan out all the major stages of starting your business. And this will help you be prepared for anything that may come up.
Step2: Define the Brand
Recognition is key to a successful business. You need to ensure that your customers pay attention to your products and services. Therefore, you will have to establish a brand for your business that will attract your customers to your business.
Step3: Establish Your Corporate Office
Henry decided to buy a warehouse in the outskirts of Oregon to start his manufacturing business. He will now determine the inventory needed to start the company and the workforce required.
Step4: Establish a Web Presence
Social media and general online presence have become necessary to the existence of a business nowadays. Therefore, Henry will not only have a website developed for his business, but he will also hire a social media manager to keep up a business profile for Henry Works on all Social Media platforms.
Step5: Promote and Market
The final step in starting a business is to promote it through a stellar marketing plan.
|Research and Development||$10,000|
|TOTAL START-UP EXPENSES||$408,500|
|Other Current Assets||$240,000|
|Start-up Expenses to Fund||$408,500|
|Start-up Assets to Fund||$1,057,000|
|TOTAL FUNDING REQUIRED||$1,465,500|
|Non-cash Assets from Start-up||$1,462,000|
|Cash Requirements from Start-up||$167,000|
|Additional Cash Raised||$50,000|
|Cash Balance on Starting Date||$35,000|
|Liabilities and Capital|
|Accounts Payable (Outstanding Bills)||$58,000|
|Other Current Liabilities (interest-free)||$0|
|Additional Investment Requirement||$0|
|TOTAL PLANNED INVESTMENT||$1,465,500|
|Loss at Start-up (Start-up Expenses)||$172,500|
|TOTAL CAPITAL AND LIABILITIES||$1,714,000|
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To start a manufacturing business, you need to figure out the services you will provide to your customers. That way, you can plan the steps of developing your startup manufacturing ideas in a better way.
A strong business manufacturing plan will help you map out your business to make it more efficient. There are many types of manufacturing business, and each has its services. Therefore, you can take help from this manufacturing business plan template to develop your plan. Alternatively, you can also take help from other business plans like solid semiconductor business plan etc. for further guidance.
For business ideas manufacturing of Henry Works, the primary services are listed below:
- Production of Raw Materials
We will offer manufacturing services to produce refined raw materials that can be used for developing other products. These raw materials will vary depending on our contracts with customers.
- Specialized End-Product Development
Henry Works will also offer the production of end-products with complete packaging facilities. However, if the product development involves complex or specific-domain processes, the work will be outsourced for retaining the best quality.
We will offer consulting services to manage production and supply chains for medium and large-scale companies so that they can obtain maximum efficiency at each stage.
- Development of Manufacturing Chains
We will offer services to develop and deploy a production chain that they can easily keep track of and stay independent for our small-scale business customers.
Marketing Analysis of Manufacturing Company
When you have decided to open a business, you will need to write a business proposal for manufacturing with a solid marketing analysis. Just like any other business, starting manufacturing business requires you to have an in-depth knowledge of your customers and market positions.
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For writing a business continuity plan template manufacturing, you will need to pay attention to not only present market analysis but also information of past and future. If you want, you can take help from logging company business plan or diamond business plan or any other thorough business plan for further guidance.
Your business plan will help you identify your customer base, services, and how to attract the two. Therefore, focus on manufacturing definition business when developing your marketing plan.
Here, we have detailed the marketing plan and its details for Henry Works:
5.1 Market Trends
According to IBISWorld, there are more than 636000 manufacturing businesses, and they are increasing at a steady rate of 3.6% per year. According to NAM, the manufacturing industry also holds a market share of 11.39%. It means that the demand for manufacturing businesses is not going down any time soon. And you will have a good standing in the market for your business which will not decline in the coming years.
5.2 Marketing Segmentation
The potential customers of Henry Works are divided into the following groups:
Business Plan for Investors
Our primary customers will be distributors or wholesalers to provide raw materials or finished products. These companies usually buy and sell in bulk, so they are expected to avail of our services frequently.
Our second biggest customers will be retailers. We intend to sell to retailers directly for getting our products to the general public. We will also agree on contracts with retailers to produce products of their choice. Therefore, we expect to receive a fair amount of attention from these stores and companies.
5.2.3 Production/Merchandising Companies
Production and merchandising companies need raw materials to produce their specified merchandise. Therefore, we expect these customers to require our services quite often.
5.2.4 Small Manufacturing Units
Lastly, we will also offer our supplying and consultation services to smaller manufacturing units around Oregon to aid their production.
|Potential Customers||Growth||Year 1||Year 2||Year 3||Year 4||Year 5||CAGR|
5.3 Business Target
- To become the most reliable manufacturing business in Oregon.
- To expand our business and open branches in other states of the US.
- To approach a net profit of $90k/month by the end of the first three years
- To achieve customer satisfaction above 90%.
5.4 Product Pricing
Our prices will be much lower than the imported materials brought into Oregon from other states. However, the quality will be the same or better but not lower. It will be one of the main standout points of Henry Works.
To stand out amongst your competitors, you need to offer several advantages to your customers that the competition cannot. For this, you will need to refer to a business plan for manufacturing company. For general reference, you can also take help from business plan manufacturing and operations plan or business plan coal mining company.
Even If you want to open a small manufacturing business at home, you will still need a strong marketing strategy to make your business a success.
6.1 Competitive Analysis
- We provide the option of contracts to our customers to produce customized materials.
- We have fantastic customer service. We will cater to all the customer’s needs and issues and ask for feedback for further improvement.
- We will use green practices and machines for the production of goods.
- Our customers can book appointments with us through our website or reach out to us on our social media.
6.2 Sales Strategy
- We will advertise our company through Google Ads, billboards, word of mouth, and social media.
- We will offer wholesale prices to our customers with the best quality.
- We will also offer discounts to our first-time customers.
- Our customers can also reach out for a contract entailing the production of customized end-products.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
There are a lot of manufacturing ideas in the USA. But only a few are successful. That is because the value of a business is determined not only by the quality of its products but also by its workforce. Henry knew the importance of good employees. So, he incorporated strict criteria for selecting all company employees within the manufacturing business plan sample pdf.
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7.1 Company Staff
- 1 Co-Manager to help in overall operations
- 8 Certified Machinery Operators
- 5 CIMS Certified Commercial Cleaners
- 2 Technicians to maintain the machinery
- 1 Web Developer to manage the online site
- 1 Sales Executives to organize and promote sales
- 1 Accountant
- 1 Receptionist
7.2 Average Salary of Employees
|Year 1||Year 2||Year 3|
|Web Developer Expert||$23,000||$25,300||$27,830|
When writing a business plan for manufacturing, you also need to focus on the monetary details. There are a lot of low cost manufacturing ideas in the world, but not all of them are beneficial to your business. Therefore, to ensure your company’s efficient and smooth working, you need to develop a detailed financial plan. A financial plan will guide you in managing the available resources in your company, thereby preventing your business from becoming a manufacturing business for sale after significant losses.
Here we’re providing the detailed financial plan made for Pro Cleaning Services so that you can get an idea of the business finances.
8.1 Important Assumptions
|Year 1||Year 2||Year 3|
|Current Interest Rate||8.12%||8.20%||8.26%|
|Long-term Interest Rate||8.40%||8.44%||8.47%|
8.2 Break-even Analysis
|Monthly Units Break-even||5340|
|Monthly Revenue Break-even||$132,500|
|Average Per-Unit Revenue||$231.00|
|Average Per-Unit Variable Cost||$0.62|
|Estimated Monthly Fixed Cost||$163,800|
8.3 Projected Profit and Loss
|Pro Forma Profit And Loss|
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||$1,325,000||$1,544,950||$1,719,529|
|TOTAL COST OF SALES||$1,325,000||$1,544,950||$1,719,529|
|Gross Margin %||48.29%||50.97%||55.62%|
|Sales and Marketing and Other Expenses||$145,000||$148,000||$156,000|
|Total Operating Expenses||$898,200||$974,350||$1,063,890|
|Profit Before Interest and Taxes||$339,300||$631,550||$1,090,866|
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8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
|Pro Forma Cash Flow|
|Cash Received||Year 1||Year 2||Year 3|
|Cash from Operations|
|Cash from Receivables||$22,000||$23,760||$25,661|
|SUBTOTAL CASH FROM OPERATIONS||$73,000||$79,570||$85,936|
|Additional Cash Received|
|Sales Tax, VAT, HST/GST Received||$0||$0||$0|
|New Current Borrowing||$0||$0||$0|
|New Other Liabilities (interest-free)||$0||$0||$0|
|New Long-term Liabilities||$0||$0||$0|
|Sales of Other Current Assets||$0||$0||$0|
|Sales of Long-term Assets||$0||$0||$0|
|New Investment Received||$0||$0||$0|
|SUBTOTAL CASH RECEIVED||$74,000||$79,000||$85,000|
|Expenditures||Year 1||Year 2||Year 3|
|Expenditures from Operations|
|SUBTOTAL SPENT ON OPERATIONS||$69,000||$70,000||$76,000|
|Additional Cash Spent|
|Sales Tax, VAT, HST/GST Paid Out||$0||$0||$0|
|Principal Repayment of Current Borrowing||$0||$0||$0|
|Other Liabilities Principal Repayment||$0||$0||$0|
|Long-term Liabilities Principal Repayment||$0||$0||$0|
|Purchase Other Current Assets||$0||$0||$0|
|Purchase Long-term Assets||$0||$0||$0|
|SUBTOTAL CASH SPENT||$69,000||$74,520||$80,482|
|Net Cash Flow||$21,000||$23,000||$25,000|
8.5 Projected Balance Sheet
|Pro Forma Balance Sheet|
|Assets||Year 1||Year 2||Year 3|
|Other Current Assets||$1,000||$1,000||$1,000|
|TOTAL CURRENT ASSETS||$282,000||$315,840||$355,004|
|TOTAL LONG-TERM ASSETS||$24,400||$27,328||$30,744|
|Liabilities and Capital||Year 4||Year 5||Year 6|
|Other Current Liabilities||$0||$0||$0|
|SUBTOTAL CURRENT LIABILITIES||$19,000||$21,280||$23,919|
|TOTAL LIABILITIES AND CAPITAL||$300,000||$329,280||$370,440|
8.6 Business Ratios
|Year 1||Year 2||Year 3||INDUSTRY PROFILE|
|Percent of Total Assets|
|Other Current Assets||2.11%||2.34%||2.59%||2.40%|
|Total Current Assets||149.80%||151.00%||152.00%||158.00%|
|Percent of Sales|
|Selling, General & Administrative Expenses||93.56%||96.09%||98.78%||97.80%|
|Profit Before Interest and Taxes||41.50%||42.62%||43.81%||33.90%|
|Total Debt to Total Assets||0.18%||0.18%||0.17%||0.40%|
|Pre-tax Return on Net Worth||74.08%||74.89%||75.00%||75.00%|
|Pre-tax Return on Assets||96.30%||101.12%||106.17%||111.30%|
|Additional Ratios||Year 1||Year 2||Year 3|
|Net Profit Margin||33.56%||34.60%||35.67%||N.A.|
|Return on Equity||55.80%||57.53%||59.31%||N.A.|
|Accounts Receivable Turnover||7.7||7.8||7.8||N.A.|
|Accounts Payable Turnover||15.6||16||16.3||N.A.|
|Total Asset Turnover||2.5||2.5||2.6||N.A.|
|Debt to Net Worth||-0.04||-0.03||-0.04||N.A.|
|Current Liab. to Liab.||1||1||1||N.A.|
|Net Working Capital||$244,000||$257,664||$272,093||N.A.|
|Assets to Sales||0.85||0.87||0.89||N.A.|
|Current Debt/Total Assets||1%||0%||0%||N.A.|
- What are manufacturing plans in a business plan?
Manufacturing plans are just details laid out in a manufacture business plan that tell you how a business will operate.
- How can I start my manufacturing business?
To start manufacturing business plan, you have to figure out all the details of how your business will operate. For this, a business plan is usually drafted. For more information, you can refer to the template above.
- What is an example of a manufacturing business?
There are different kinds of manufacturing businesses. One manufacturing business example is of electronics manufacturing business.
- What are the 3 types of manufacturing businesses?
There are 3 types of manufacturing business:
- Make-to-Stock (MTS)
- Make-to-Order (MTO)
3. Make-to-Assemble (MTA)
Illustrative business plan samples
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