Last updated on December 13th, 2020 at 09:43 am
There are so many mistakes that can be made when starting a new company - here are 4 to avoid.
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As you can imagine, or may already know first-hand, launching and managing a tech manufacturing startup isn’t exactly as easy as setting up a lemonade stand. The entire business model relies heavily on the use of advanced technology and collaboration with very demanding and savvy clients, most of whom are other business owners or investors. A single tech manufacturing contract can have you producing a factory full of items for many months consecutively, so even a small mistake can create huge losses if it causes you to lose a current client or deter a prospect. To make sure your tech manufacturing company is on the right track, be sure to avoid the following four common mistakes:
1. Using the Wrong Software
Manufacturers have an abundance of options when it comes to choosing software for managing their business activities and production processes. However, this extensive variety makes it possible to miss out on the most effective tools if you’re not thorough in your comparison. With software involved in every little step along the way, digital workflow deficiencies can translate to very real monetary losses when extrapolated over the course of a fiscal year. Even a small adjustment like using Altium to design a round PCB could have a measurable impact on your product innovation, factory production, and overall profitability.
2. Marketing to the Wrong Audience
You might think you know exactly who would want your product, but there’s a chance you could be missing out on a key demographic. In some cases, this might be simply a matter of opting to sell in bulk as a wholesale supplier instead of bringing your product directly to the consumer in the retail market. Broaden your search for new clients and you could wind upthat’s even more interested in your product than the first group you had in mind.
3. Neglecting Brand Appeal
Failing to optimize your brand’s packaging, product design, logo, or website design could deter many clients from choosing your company as their designated manufacturer. Most people draw a correlation between visual brand appeal and product quality, so investing in great graphic design and branding is a step that every manufacturer and wholesaler should take.
4. Failing to Add Value to the Niche
Finally, another common mistake that some manufacturers make is showing up in an already saturated market with nothing new to offer. While you might still capitalize on a portion of the sales, you’d do much better if your products had a few extra features to stand out from the competition.
These Mistakes are Easy to Correct
The good news is, if you’re already making any of the above mistakes, it won’t be difficult to implement a few adjustments that will have you back on track in no time. In a nutshell, all you would need to do to fix all of the issues mentioned above would be: compare industry software, study targeted advertising, revamp your brand’s aesthetic appeal, and find a few extra features to add to your product line. By carrying out this simple 4-step process, most tech manufacturing startups will begin to see a substantial improvement in crucial metrics.
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