What Are The Challenges Faced By a Manufacturing Start Up

Most entrepreneurs nowadays are excited and rejoicing ever since the present government launched the Make in India concept. A plethora of small and medium scale businesses are thriving more brilliantly than they ever had previously. 

Even newbie entrepreneurs have become fearless to implement their manufacturing business ideas in India and take immense benefits from this new concept, which provisions to be their own boss. Moreover, the government is also leaving no stone unturned to push the current marketing sectors which include both the service and manufacturing industries. 

Despite all of this fuss and enthusiasm by business owners as well as the government, the manufacturing industry is facing a major backlash as a startup. 

Let us take a look at a few main challenges that are faced by a manufacturing startup- 

Funding & Loans - The foremost thing that has to be geared up for a business plan for a new entrepreneur is to raise the funds or simply get a loan. Acquiring the needed funds for business has long been one of the major issues in this country, especially due to the lack of any collateral to the renowned banks. 

More than 75 percent of the entire population resides in the middle-class section and without any surety or collateral, a manufacturing business plan ever comes to fulfillment and even sometimes fails to get launched. Other methods of getting funds for these manufacturing businesses consist of angel investments as well as seed investments. 

Initially, these amounts are comparatively small and can be acquired easily, but at the later stages of the funds there arise challenges for any startup to grow. Moreover, those entrepreneurs usually spend these small funds very easily and are always in search of more rather than business development. The lack of any fully organized planning in order for a business to flourish on a donsie or being sold out when there is no resort. 

R & D and IP Protection - One of the toughest challenges that the manufacturing industry in this country has to face is the extreme lack of research. The fact is that the leading manufacturing companies are fully capable of acquiring the Research and Development facilities due to the foreign investments but a particular unit in its early stages is not able to do so. 

In order to implement business ideas and reach a global level, becoming a leader is an absolute necessity. Moreover, the Internet protocols and their enforcement in the country is very costly and not to mention the risks associated with them. 

The Make in India concept has undergone many changes which is bringing more and more complexities to both small and medium scale businesses. Not to mention the registration process of the patents including their unique trademarks have been posing hindrances. This has produced tremendous challenges as well as effects in the individual units. 

Transportation and Logistics - According to some surveys, it was found that a mere 7 percent of the logistics facility provides decent enough technology as well as proper maintenance that a manufacturing firm needs. Moreover, there is definitely a bigger opportunity to boost up logistic sectors but this country has lots of distance to cover to achieve this feat. 

Most of these warehouses are owned by top league players having a small capacity. That in turn causes poor handling of goods as well as the management makes it a whole new challenge for the business of manufacturing too. Additionally, transportation too is very expensive and very very slow in India especially. 

Since it can take months to get the logistics to the other coasts from different places in the country. It is also true up to some extent that the Indian ports are not utilized to their full capacity. The government of this country is also doing its best to invest more funds in building great and effective networks via roads, rails including other modes of transport to boost the overall growth of this manufacturing industry.

However, the lack of required skills of the employees, as well as the unorganized transportation, can’t be ignored as the outcome will be ineffective industrial supply. 

Competition - Another thing is competition which is always one of the biggest roadblocks for any business out there. Especially in this country that has the 2nd most largest population globally, including the acceptance of foreign investments in some sectors such as the port's logistics, the hindrance becomes even more big and strong. 

Also finding a niche marketplace and to successfully place the product in front of the consumer has become really tough over the years. Moreover, the end-user also wants more with low payments which has been challenging the business owners to boost up even more. 

In addition to that, the competition when it comes to acquiring highly skilled teams has also become quite difficult to enhance and hesitant to join hands with the new startups amidst the worry of mass filings including downsizing in order to rescale by the manufacturing business owners. 

The stages or the pre-series startup businesses have to pay lower scale payouts than their counterparts. Also, most startups in a final bid to outgrow, and here the insufficiencies without processes finally end up on the other end of the line. 

Constantly Changing Market - India is without any doubt in a bigger spur to grow as a total manufacturing hub in this international market. The only issue is that the manufacturing companies are fully intended to fail due to the immense lack of sustenance in this volatile market. Moreover, those markets are always highly volatile that goes through changes when it comes to technology as well as marketing strategies. 

EndNote

If the World Bank reports are to be believed, then this country has rigid laws and most opinions say that it is a big barrier for the manufacturers to reap the rewards highlighted by this concept. Although the government is making sure that rapid growth will change the manufacturing sector and will give a great boost, it still requires a lot of patience. Nevertheless, the prospect has a lot of promise although it comes with a lot of roadblocks.