How to Find a Manufacturer in 11 Steps | Small Business Advice

Whether you're launching a new product or expanding your existing ones, finding a manufacturer to make your product is a key step in the process. But where do you even begin?

This article will help small business owners figure out how to find the perfect partner to bring your ideas to life.

We’ll also discuss how the Wise Business account can help you save on international payments.

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Table of Contents
What is a manufacturer? Is a manufacturer a supplier? 11 steps: How to manufacture a product Manufacturers FAQ

What is a manufacturer?

A manufacturer is a company or organization that produces goods or products, typically in large quantities, for sale to wholesalers or retailers.

They use raw materials, components, and other inputs to create finished products that meet specific specifications or requirements – anything from clothing and electronics to food and machinery.

Manufacturing facilities can range from small-scale operations that produce handcrafted items to large factories that employ thousands of workers and use sophisticated machinery and technology to produce goods on a massive scale. They often specialize in a particular type of product or offer a range of products to a diverse customer base.

Is a manufacturer a supplier?

Since a manufacturer can also be a supplier, the two terms can be interchangeable. But what distinguishes the two is that a manufacturer produces goods or products, while a supplier provides goods or services to a buyer or customer.

Under this definition, a manufacturer can act as a supplier, providing the finished product directly to retailers or consumers. A manufacturer may sell its products to a wholesaler or distributor, who then becomes the supplier for retailers or consumers.

For example, you may have a brand that specializes in selling eco-friendly products. You’ve got an idea to create phone cases made of a specialty material that is biodegradable, yet you don’t possess the raw materials or the manufacturing technology to make it happen. This is where you start looking for a manufacturer.

Why? Because they can help turn your design into a reality. After developing a prototype (This often goes through multiple iterations), often with the manufacturer discussing the feasibility of the product, you can then put the product forward to get manufactured to your specifications.

Of course, this example was an oversimplification. We will break down the process of finding a manufacturer below, and also go into some things you should consider along the way. After all, this process can test your patience without understanding common pitfalls.

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Where can I manufacture my product?

As a small business owner looking to manufacture your product, you might be wondering, “Do I stick with local manufacturers or ones that are overseas?” Several options are available to you depending on your product, budget, and specific services you might be looking for. So what should you take into consideration when it comes to small business manufacturing?

Domestic manufacturers

Domestic manufacturers are located within your own country. This naturally offers several advantages, including:

• Faster lead times: Working with a domestic manufacturer can typically mean faster lead times, since you don't have to worry about shipping times or customs delays.

Note
A lead time is the time period lasting from the beginning to the end of a process. Suppliers or manufacturers will regularly bring this up when discussing the moment of your order to the point where it can be fulfilled. It can often be important to keep this in mind when dealing with a tight cash flow!

• Better quality control: Domestic manufacturers are subject to the same quality control standards as your own country, making it easier to ensure that your products meet your specifications.
• Easier communication: Working with a domestic manufacturer can be easier in terms of communication since there are no language barriers or time zone differences to deal with.

But with those benefits comes a downside: higher labor costs, which can make their prices less competitive than overseas manufacturers. For small businesses with tight budgets, this could be an instant dealbreaker.

Overseas manufacturers

Overseas manufacturers, on the other hand, are located in other countries. Although they might not have the fast lead times and stringent quality control you’d get with a local manufacturer, they also have enticing benefits, such as:

• Lower labor costs: Overseas manufacturers often have lower labor costs, which can result in lower prices for your products.
• Access to specialized expertise: Some overseas manufacturers specialize in producing certain types of products or have expertise in specific industries.
• Larger production capacity: There are larger production facilities and a greater capacity to produce larger quantities of products overseas.

Of course, this all doesn’t come without its challenges, such as language barriers, cultural differences, longer lead times, and difficulties with quality control.¹

Websites for finding manufacturers

You can find manufacturers through a number of ways. One of the main ways you will find them is by going on manufacturing websites. The good news is that there are a lot – this is also the drawback.

One challenge is finding manufacturers abroad. If your company has the funds, you might want to speak with a sourci1. ng agency, which will tack on an extra cost. Of course, you will need to weight the pros and the cons of this process. After all, you could be wasting substantial time and resources that could be spent on other projects.

Here’s a short list of manufacturing directories:

1. www.alibaba.com/
2. www.globalsources.com/
3. www.manufacturerusa.com/
4. www.asia-manufacturer.com/
5. made-in-china.com/

11 steps: How to manufacture a product

Seeing your product go from just an idea to a tangible product to market can be an exciting and rewarding experience. Though, it’s likely also complex and challenging, especially if you're new to manufacturing. To help you navigate the process successfully, we've put together this step-by-step guide on how to get a product manufactured.

1. Market research

Business owners may often be tempted to skip this step, thinking that it's easy to learn about their customers and their needs. Statistics prove this, as no more than 40% of marketers are using consumer research to drive their decision.² But conducting market research is what provides valuable insights into your target market, including their preferences, needs, and buying habits.

Market research can help you determine if there is a demand for your product, identify your competitors, and help develop a pricing strategy. It can also identify potential obstacles or challenges that could come up during the manufacturing process. Consider conducting surveys or putting together focus groups to get feedback from potential customers before delving deeper into a product idea.

Market research is essential because it could save you time and money. It’s important to get the negative feedback from the start from people you don’t know to avoid taking the wrong path.

2. Develop a product concept

Using the data you’ve collected in the market research process, develop a concept that captures your vision and meets the needs of your target audience. Being a small business owner puts you in a unique position to identify gaps in the market and come up with innovative solutions.

Whether you're creating a new product from scratch or improving an existing one, the key is to focus on the needs of your customers and create a concept that resonates with them.

Imagine a scenario where you run a small business that sells organic baby products, and you’ve noticed that many parents struggle to find affordable, easy-to-use, and eco-friendly diapers. Your product concept could be a line of reusable cloth diapers that are made from organic cotton and bamboo, are adjustable to fit babies of different sizes, and come with easy-to-use snaps or Velcro closures.

The diapers could be available in a range of fun and colorful designs that appeal to parents while also being gentle on the environment. With this product concept, you're addressing a common pain point for parents while also offering a solution that aligns with your company's values and mission.

3. Create a prototype

Once you've developed a product concept that you're excited about, it's time to create a prototype. Prototyping is another key step in the manufacturing process because it allows you to test and refine your ideas before moving on to full-scale production.

It’s typically a back-and-forth process, a chance to experiment with different materials, shapes, and sizes and to see how your product will look and feel in the real world. You might end up using a process of elimination by experimenting and making improvements until you’re happy.

There are many tools and resources available to help small business owners create prototypes quickly and easily. Depending on the complexity of your product, you may be able to create a prototype using simple materials such as paper, cardboard, or foam. And perhaps eventually move on to work with a professional prototyping service to create a more complex prototype using 3D printing, injection molding, or other advanced techniques.

If you’re not tech-savvy, you can hire a professional through sites such as Upwork or Fiverr to craft a prototype for you.

4. Find manufacturers

Now we come to the important part: how to get a factory to make your product. Ideally, you want to work with a manufacturer who shares your values and understands your vision for the product. If you’re working with local manufacturers, you would ideally visit the factory and meet with the team in person to ensure that they have the skills and resources to manufacture your product to your specifications.

Working with a manufacturer that is located far away can result in longer sampling and manufacturing processes. However, they may have the manufacturing facilities that you need and be able to offer more competitive prices than manufacturers in your area.

In this case, since you likely won’t be able to visit the facility in person, do your due diligence by researching their history and customer reviews online. You should also consider how long they have been in business, what their production capabilities are, as well as any certifications or accreditations that they might have.

But you won’t have to go into the search blind, as there are plenty of sources available to help small business owners find the manufacturers they need. Online directories and trade publications are a great place to start, and so are attending trade shows and networking events.

5. Get quotes

When requesting quotes from manufacturers, you’ll need to provide as much detail as possible about your product, including materials, dimensions, and quantities. After all, you want manufacturers to provide you with accurate and comprehensive quotes that reflect the true cost of manufacturing your product.

Getting quotes from multiple manufacturers can also help you compare costs, services, and quality to make an informed decision about which manufacturer to work with. Don't be afraid to ask questions and negotiate pricing, as this can help you get the best possible deal for your business.

And, of course, keep in mind that the cheapest quote may not always be the best option. Quality, communication, and customer service are also important factors to consider when choosing a manufacturing factory, as these can impact the overall success of your project. Working with a place that uses high-end materials but doesn’t have a lick of communication could end in disaster.

Note
After you start working with a manufacturer, it’s always good to revisit their initial pricing quotes and see if lower costs can be negotiated. After all, if your business pays on time and is easy to work with, they should be glad to have you.

6. Order samples (manufacturer materials)

At this point, you should have a shortlist of manufacturers or a chosen manufacturer that you're interested in working with. But wait! This isn’t where you just dive in head first and start telling them what to make. You’ll need to order samples of their materials first to test and evaluate the quality of the materials that will be used in your product.

For example, let’s go back to our example of the line of eco-friendly diapers. You've found a manufacturer that specializes in sustainable materials, but before committing to a full-scale production run, you want to order samples of their materials to ensure that they meet your standards.

Ordering samples is a great way to evaluate the look, feel, and durability of the materials you'll be using in your product. With this example, you might order samples of different types of biodegradable fabrics, such as bamboo or cotton, and test them for softness, absorbency, and strength. You might also grab samples of different types of fasteners, such as snaps or velcro, and test them for ease of use and durability.

This way, you can check to see if your product - using these materials - meets the high standards of quality and sustainability that you're aiming for.

7. Set your terms

Content with the materials they’ve provided? Congratulations - you’re ready to start working with the manufacturer. Just like any business deal, setting the terms of the project lets you take control of the process and ensure that your vision is realized.

When setting your terms with the manufacturing factory, you might consider factors such as the materials used, the manufacturing process, and the quality control measures in place.

You might specify that the diapers must be made from organic cotton, must be manufactured using eco-friendly processes, and must undergo rigorous testing to ensure that they are safe and effective for babies. They might also negotiate the price per unit, the timeline for production and delivery, and any other terms that are important to their business.

There’s no skimping on this part of the process, as it’ll determine whether the product is manufactured to your exact specifications. You’ll be able to avoid costly mistakes and ensure that the final product is of the highest quality.

8. Communicate your designs

Communicating your designs doesn’t just involve letting them know about the ins and outs of your vision; it’s knowing that the manufacturer has a clear understanding of your product specifications.

Visual aids can certainly help with this, whether it’s through detailed drawings, measurements, and materials specifications, as well as any other information that will help the manufacturer create the product exactly as you envision it. In the case of the diaper line, this would include details such as the size, shape, absorbency, and materials of the diaper.

Another important aspect is providing feedback and making adjustments throughout the manufacturing process. There needs to be strong lines of communication so you and your team can work closely with the manufacturer and fix any issues on the go. If the manufacturer discovers that a particular material is not performing as expected, they may need to adjust the design or switch to a different material.

9. Order samples (of the final product)

While you might’ve gotten a taste of the materials the product production company uses, you’ll want to see how they craft your product with them.

Ordering samples of the final product will let you test the quality and make any necessary adjustments before you give them the go-ahead. With the product in hand, you can ask yourself about the absorbency, fit, and durability of the diapers and the overall design and materials and either approve it or make changes.

And it’s not enough just to judge the look and feel. You’ll want to put them to the test in real-world settings to ensure that they meet your standards of quality and performance. You could set up a focus group or surveys with potential customers (in the case of our running example - parents) to get their feedback on the product and use this feedback to make any further adjustments.

10. Negotiate

Now, your product is now ready to get manufactured on a larger scale for people to buy! But there’s another part to all of this: negotiation. Small business owners can find negotiating a nerve-wracking experience, but it's an essential step for you to nurture that cash flow and cut down on costs.

Negotiation involves discussing the terms of your manufacturing agreement, including pricing, delivery schedules, quality standards, and other key details. Most business owners don’t typically accept the first offer and instead negotiate towards an offer that is more fair and beneficial to both parties.

Manufacturers want to know that they’ll be partnering up with someone who is going to give them business long-term, so giving them a good sales projection plan can be enticing. You can even offer up larger deposits for a bigger discount, so they have the upfront security. And if they don't seem to be budging on price, find other ways to lower expenses, such as a compromise on faster shipping.

When you get to an agreement, don’t forget to document all the details of your agreement in writing and ensure that both parties sign off on it before production begins.

11. Place your order

The product specifications are ready to go, and you’ve negotiated a fair contract with the right manufacturer, so there’s only one thing left to do: place the order. Typically, it’ll involve making a deposit or paying upfront for the manufacturing services. From there, the manufacturer will begin the production process, which can take anywhere from a few weeks to several months, depending on the complexity of the product and the size of the order.

Wise Business: Save While Making Overseas Payments

Wise Business can help you save money when paying overseas manufacturers. With Wise, you can pay invoices in a range of currencies, and our low and transparent fees mean you get a better exchange rate than most banks offer.

Wise Business also offers batch payments, helping you up to 1000 invoices for supplier, manufacturers, or contractors in one click.

We also have an API that allows you to automate your payment process.

The best part is that both features come with no additional payment for US-based businesses.

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Manufacturers FAQ

Curious to learn more about manufacturing? You’re at the right place. Read on for some frequently asked questions.

What does manufacturing mean?

Manufacturing refers to the process of producing goods, typically using machines, tools, and labor. It involves transforming raw materials into finished products that can be sold or distributed to customers.

What are the types of manufacturing?

If you go deeper into the manufacturing industry, you’ll find several types of manufacturing, including discrete manufacturing, process manufacturing, job shop manufacturing, and continuous manufacturing.

Discrete manufacturing involves producing distinct items, such as appliances or electronics, while process manufacturing involves producing goods that are chemically or mechanically transformed, like chemicals or pharmaceuticals. Job shop manufacturing involves producing custom-made products in small quantities, while continuous manufacturing involves producing goods on a large scale, for instance, in the automotive or electronics industries.

What is an example of manufacturing?

Take the process of producing cars on an assembly line, for example. In this case, specialized machinery, tools, and labor in manufacturing facilities work to transform raw materials such as steel, plastic, and glass into finished vehicles.

Who can manufacture my product?

A variety of companies and factories can manufacture your product, including specialized manufacturers, contract manufacturers, and original equipment manufacturers (OEMs). No matter who you end up working with, make sure that you work with a licensed and reputable manufacturer to ensure that your product meets all regulatory requirements.

Learn more:

How to find wholesale suppliers, distributors, and manufacturers

3PL Warehousing Guide: What is it? Do you need It?

How to Find a Manufacturer in 11 Steps | Small Business Advice

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Sources:

1. https://bmmagazine.co.uk/business/overseas-manufacturer-vs-domestic-which-is-better-for-your-business/
2. https://www.thinkwithgoogle.com/consumer-insights/consumer-trends/marketing-consumer-research-statistics/
3. https://trustpilot.com/review/wise.com