There are several business options: you can sell services, other people’s goods or produce your own products. If you want to open your own production: business ideas already implemented by other people will come in handy.
Advantages and disadvantages of production
If you are thinking about making something yourself, consider the disadvantages: it will be costly in every sense. You will have to accumulate a significant start-up capital, put in a lot of effort and do something for months to get the first results.
Other cons are:
- Fixed costs: during a crisis, it will not be possible to cut production quickly. You can’t fire employees, because it’s difficult and time-consuming to look for professionals again. You can’t just sell materials that you haven’t made anything from yet, because that would be unprofitable. In the field of sales, everything is much simpler: basically you spend money on advertising.
- Lack of Flexibility: You know you can retail, wholesale, ship overseas, expand your product range. All this is possible, but more often than not, production capacity lags behind.
- Huge amount of administrative work. It is necessary to control a large number of employees, areas and equipment. You can hire someone to do this, but at first you usually have to take on this role yourself.
If the cons did not scare you, then move on to the advantages. And, fortunately, there are many more!
- The ability to create what you like. Products with a history, a concept that you put into them, will inspire you to move on and grow as a professional.
- Quality Assurance – You are behind everything that happens. It is you who can ensure a long service life, reliability. You yourself see the shortcomings and ways to correct them.
- Range flexibility. Sometimes you have to ramp up production quickly, and that’s a disadvantage. But if you see that there is a demand for something, you can expand the product line – and this is a powerful tool.
- Low cost – you can find materials at the best prices. In addition, there is no manufacturer’s markup, and you can sell anything at the best price for you.
- Opportunity to make the world a better place: you give jobs to other people, create things that improve the lives of their owners.
And now let’s talk about different business ideas: among them are the production of hammocks and cheese, furniture and modular houses, juices and soaps!
Mini-production business ideas
Elite cheeses are becoming more and more popular. This also leads to an increase in supply: more and more artisan cheese factories are opening in large cities. Interestingly, prices for dairy products are also rising. It is worth noting that people with a high level of income, that is, in this case, the target audience, remain solvent.
There are still few competitors in this niche, but to launch a small cheese factory with a capacity of up to 25 kg. Cheeses daily don’t need too much budget. Planned expenses are about 700,000 🪙. You can both supply finished products to wholesale stores and sell at retail.
Who hasn’t dreamed of having their own hammock to relax at home or somewhere by the sea? The production of hammocks is a business idea that has not become obsolete over the years. Creating hammocks is quite simple: it does not require special skills or expensive equipment. A sewing table and a machine will suffice, later their number can be increased. If you don’t want to sew yourself, hire a seamstress.
To equip one workplace and hire one specialist – approximately 40,000 🪙, half of this amount will be spent on furniture and accessories. The cost of one hammock, including the payment to the seamstress, is about 1000 🪙. The minimum retail price at the moment is 2000 🪙. A small investment will pay off within one to two months.
Last year, the real estate market has been growing very rapidly: inflation makes people think about where it is most profitable to invest their finances. Many people buy apartments, and even in order to simply rent them out, they need furniture. Profitability of its production: from 40 to 300%. Payback of business – from 8 months to a year.
In an average city, it is important to competently approach the choice of audience. It can be both middle-class families who buy furniture every few years, and an audience with high incomes. If in the first case it will be the middle price segment, then in the second case it will be the elite one. In one version, things will be cheaper, but more popular, in the other – more expensive, but less sold.
In both cases, to create tables, chairs, sofas and armchairs, the starting capital will be about 1,000,000 🪙, including marketing costs.
Production of modular houses
Such houses are used as an office, a change house, a trade pavilion, a country house or even a dwelling. Their main advantages are mobility and low cost. The demand for such options among the audience will grow. Building materials are becoming more expensive, the number of construction projects is decreasing.
In production, you can create a modular building of any structure up to two floors high. Such houses are equipped with everything we are used to in an ordinary apartment: water supply, sewerage, heating systems. Minimum price: from 10,000 🪙 per square meter, including production, delivery and installation.
The starting capital for such a business is from 2 million 🪙. Payback period from 6 months to a year.
Production of fresh juices
This is a great production idea for a small business – high demand and a quick payback period are among the main advantages. Among the middle-income audience, trends have emerged to purchase natural products that allow you to lead a healthy lifestyle.
This business is most profitable for regions where there is a large amount of fruit, that is, in the south recently. The company will reduce shipping and storage costs. In addition, the season for juice consumption in places with a warm climate is longer than in the north.
You can start with small volumes, but if you open an average production with a capacity of up to 1000 liters per hour, the starting capital will be about 6 million 🪙. You can sell finished products through distributors. Payback period in the region of a year.