Preface. Budget. Any business connected with production is not only a high profit, but also serious financial investments on the first stage.

If you have a certain budget and business idea, we recommend you to contact us and get a qualified FREE OF CHARGE consultation on business setting up.

If you decided to cope with this problem on your own, then you will find below a step-by-step instruction on setting up production business.

1. Choosing a market niche. Choosing a market niche is an informed decision to choose the specificity and activity of your organization. Up to the 9th point your decisions do not cause financial expenses, and you can always renounce the idea, but do not forget about the time losses. So, to choose a niche you should match at least one of the following points:

· the chosen product is in great demand and you have determined your competitive advantages;

· the selected product is not brought to the market, but you have an assurance that it will drive some other product from the market;

· you have unique privileges in this business activity.

2. Studying the production method. The Internet will help you with this – millions of patents and videos published on the network will help you understand how the product you are interested in should be produced.

3. Equipment search. After have studied the production method, you already know all the details of production processes. Nowadays, to find the right equipment is enough to have a computer and the Internet at hand. Or you can just contact “Rostehno” company, where you will get qualified help to implement all these steps on the way of setting up your own production business.

4. Supplier search. When you have managed the equipment, you already know what materials and how much of them you need to purchase. Therefore, it will not be difficult for you to find suppliers and get a quotation from them.

5. Premises search. Having received information about the necessary equipment, you will know the requirements for the premises. Your aim is to find suitable premises. Buying or renting – it is up to you to decide.

6. Calculation of profitability. All the gained knowledge will help you calculate profitability of your business and set pay-off period of equipment. You can contact “Rostehno” and we will help you calculate all you need absolutely free of charge.

7. Market monitoring. Market monitoring includes several steps:

· Monitoring and analysis of competitor’s offers – it means, studying competitor’s offers, their advantages and disadvantages;

· Pointing out your own competitive advantages – it means, theoretical analysis of a product and pointing its advantages and disadvantages on three factors: quality, time limits and cost.

· Formation of customer base – it involves personal meetings with potential customers, display of samples (hand-made as yet), analysis of potential customers’ opinion and readiness to buy your product at the determined price;

7.1 Composition of a customer portrait – it involves defining the target audience.

8. Construction the company structure. This is not a painstaking process. You should draw up a manning table, employees’ responsibilities and their cooperation.

9. Drafting a business-plan. A business-plan should not include a hundred pages. If you plan financing your business on your own, then a business-plan for you is a step-by-step process for achievement the specific result. Actually, you have it already, but the parts of it are not brought together. You just need to structure the information acquired at the previous stage and put it on paper. If you want to enlist the support of the government, a leasing company or a private investor, you need a properly formalized business-plan. In this context, we recommend you to contact the experts. Nowadays here are many experts who are ready to help you at a reasonable price.

When you have drafted the business-plan, it is time to make a decision, as then serious financial expenses begin.

10. Registration of a legal entity. Now it is time to register officially. You may file documents on your own or entrust it to professional accountants outsourced.

11. Purchase of equipment. You should sign a contract with a supplier (for example, “Rostehno”) and make a prepayment. Now, while you are waiting for delivery (usually, not less than two months), you can go into question of premises.

12. Purchase/rent of premises. It is also not so difficult, as you have already found suitable premises. You should only make out documents and, if necessary, prepare the premises for receiving the equipment.

13. Acquisition of license. This is one of the hardest stages, requiring both efforts and investments. Moreover, you will have to spend about two months to obtain the license. However, the harder the path, the more pleasant is its completion.

14. Search and recruitment of employees. Recruitment should be taken very seriously. Choose carefully, because not only they will depend on you, but you will also depend on them. The minimum set for any production is:

· Production and warehouse;

· Accountancy;

· Purchasing;

· Distribution.

The number of work shifts and senior shifts depends on the requirement of the equipment and the number of shifts.

At the start you will need one storekeeper. In the future, if he does not manage, you can hire one more.

Accountancy may be outsourced at the beginning. Alternatively, you can hire an accountant or deal with it yourself.

Purchasing may be also organized on your own or by an experienced employee.

Distribution depends on the specificity of sales. If you reckon on large transactions and steady shipments to regular customers, you can manage it on your own. If you plan a customer base of more than 10-15 customers, then you should better hire a skilled professional. In case you plan small sales with high margin, then you need a sales department and qualified head of sales department.

15. Production startup and market launch. Now the only thing we need is to purchase materials and sign new contracts.

“Rostehno” wishes you and your business good luck and prosperity!