Am I Ready to Manufacture in China? Get it Right!

Am I Ready to Manufacture in China Get it Right!

Why would so many people like to make and sell their goods overseas? The growing globalization of economies with growing competition among products creates the need to reduce costs to the point of being a necessity. The most efficient method of reducing costs is to do it in a country that has a manufacturing infrastructure that produces low-cost labor. The most well-known countries that have the infrastructure for economic growth and stability tend to be in Asia, especially China.

The experience of many has proven that those who come to China to manufacture products are able to make their products more affordable. Most people I have met will tell me that they have an idea they’d like to create in China. When I first began in the business, I would be ecstatic and take every opportunity that was presented to me. But, I quickly realized that for some people, these ideas were nothing more than an idea. I’d like to dedicate an hour or so to assist them in finding the right factory and then discover that they weren’t even far from being able to export their goods.

After a long period of contemplation and research of both current and past small – and medium-sized enterprises as well as startups that have succeeded in manufacturing their products abroad, I came up with four requirements that each of these companies has in common.

1. It is possible to provide a functioning prototype or sample plans
2. Have completed a SWOT analysis of their business and product with good results
3. A business plan should be in place with sufficient research to back up their conclusions
4. Are or are planning to acquire the money (money) to produce the product, ship it to customers, and then distribute their product

1. Working Prototype/Sample/Industrial Drawings

A prototype is a reference or the original from which something is created or created. A different term is a prototype. Thus, a working prototype is a replica of an actual product that performs exactly how you want it to, looks exactly how you would think it should, and feel exactly how you’d like that it will feel.

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If you can provide a prototype to your manufacturing facility, This will enable the factory to understand precisely what you’re trying to create. The expression “a photograph is worth 1,000 words” isn’t further than the reality.

For those who don’t possess a functioning sample, you can look at these suggestions:

Hire someone to make One. There are many design companies that you can contract to create professional prototypes according to your specifications. But this could be pretty expensive.

Buy Your Competition’s Product. If you do not have a huge development budget, you might think about buying a product from a competitor. If you’re creating something completely new, you should look for an effect similar to the product you’re trying to develop. With these items, you can tell the manufacturer of the changes you’d like to add to the product in order to make the product yours. Beware of patents that may be issued for these products.

O, Be Creative with Your Resources. If buying an item is not within your budget, think about making use of what you already have to create your own test. It’s amazing what you can accomplish using duct tape!

2. SWOT Analysis

A SWOT Analysis can be described as an instrument to evaluate a company and product’s strengths, weaknesses, threats, and opportunities. It is essential to do a thorough evaluation of your business and products in order to determine how you fit into the entire pie. Conducting a rigorous SWOT analysis will not only aid in choosing the best position for your product and business to determine the areas that your competitors are not in focus on but will discover what you can do to be improving.

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In the final part of this article, you will find an example SWOT Analysis worksheet that includes questions that can help you think about each aspect of analysis.

3. Business Plan

Anyone who has ever taken a business course at any college or university is likely familiar with the idea of the business plan. It is said that a “formal” company plan it is taught in school can eventually be more than 20 pages and may never be read once it has been written. My opinion is that these kinds of plans are an unnecessary waste of time and are useless.

I came up with what I consider”the “real” business strategy. It includes a one-page document with ten questions to aid you in understanding your business and come up with the first plan that is useful and easy to understand.

4. Acquisition of Capital (Money)

This is the most apparent requirement and doesn’t need any explanation. You may have your own model or sample possess an excellent SWOT Analyse and an impressive business plan, but if you do not have the money to build your product, it is not worth taking your “idea” further. It’s always just an idea until you’ve got enough money to create it, or somebody else comes up with the idea and comes up with it before you get it.

The real cost-benefit of manufacturing your goods in the overseas market is only apparent when you’re willing to buy larger quantities. When I say more prominent, I’m not talking about tens and hundreds of thousand units. It is necessary to purchase just a few thousand units before you can begin to reap the advantages. Each factory will have its own Minimum Order Quantity (MOQ), which you’ll have to purchase.

There are a variety of ways to raise funds needed to develop your product. This includes:

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1. Family Fun, Friends, and Fools. It is a well-known expression among investors who always advise you that the best place to begin making money is with your family, friends, or family members, as well as fools (anyone else willing to give the money).
2. Bank Loans. This option is a good one for those who don’t wish to trade a part of your business for cash. There are a variety of affordable bank loans to choose from. However, you must investigate the various types of loans and ensure that you are able to make the monthly payments for the loans.
3. Angel Investors. These are individuals who are different from venture capitalists as they are usually individuals who are investing their own funds in you. Angel investors typically invest in projects with a value of less than $1 million. Angel investors seek to invest in businesses hoping to earn the most return from their investment.


All in all, these four needs are not incompatible with each other. It may appear like one is more essential than the others, for example, cash, but they’re equally necessary for you to succeed in creating your product and selling it effectively. What’s the purpose of being able to manufacture your product if there’s no plan to distribute or sell your product? Or, without a prototype/sample/industrial drawing, a SWOT Analysis or business plan is not going to make your product a reality.

I’ve witnessed too many instances of individuals or businesses that did not satisfy all four requirements and were unable to gain from manufacturing their goods in the overseas market. If you are considering your “idea of producing your product in another country, be sure to ensure that you are meeting these four criteria to ensure you don’t have the same issues occur to you.



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