Rapid Change, Limited Capital: Navigating Early Manufacturing Growth
We like to think that scaling up an idea is straightforward. You build a prototype, validate, build more prototypes, lock-in, and go for volume. But anyone who’s scaled up manufacturing of a product knows, it is a messy business.
While locking in a design is desirable long-term to achieve economies of scale and make field support easier, the reality is that your product is likely to change rapidly in the early days. In this early stage, it is less important to achieve design stability as it is to achieve manufacturing flexibility.
But manufacturing is capital intensive. Making changes is expensive. This is where partners are important. As with distribution partners, finding manufacturing partners is a process of reading between the lines. Many will say they are flexible – but are they?
Look at their existing business. Is it low-volume/high-mix? Do they utilize systems and processes that allow for rapid prototyping? What types of clients do they already serve? How are they purchasing components? Are the nimble from a logistical standpoint?
It can be difficult to place the fate of your product in the hands of others – especially during such a critical phase of growth, but with the right due diligence, finding a good manufacturing partner will help you mitigate investment of precious capital so you can keep focused on making your product successful.