2 min read
25 May 2021

Setting up a successful manufacturing business takes a lot more than a clear business plan. It requires substantial financial outlay to outfit your business and specialized facilities along with advanced equipment and raw materials. These steps will help you build a profitable manufacturing business:

Get a third-party evaluation of your product in the development stage

Get your final product approved or evaluated by technical experts right in the development stage. This allows you to make changes or improvements right when you are investing in machinery and staffing. This keeps you from introducing an inferior product to the market and then going back to the development stage. You can conduct a product sampling exercise to ensure that you have market feedback before launching your product. Getting customer opinions will help you adjust the manufacturing process and establish firm quality management techniques if necessary.

Arrange for adequate working capital for production

Once you have finalized your product, arrange for sufficient working capital to ensure that your daily operations proceed without a hitch. Some costs to account for are – raw materials, employee salaries, and electricity. Since a manufacturing business is cash-intensive, start making arrangements for future needs for working capital. Identify an affordable source of external finance like a working capital loan, so your company’s working capital account is flush.

Price your product after thorough market analysis

Market research is a crucial part of pricing your product. First, analyse your competitors in the industry and measure your products against theirs to arrive at a reasonable price. The price should justify your manufacturing cost, market price, and quality. Next, identify who your target audience is and what they can pay for your product to finalize your pricing. You can then use various pricing strategies like penetration pricing, competitor pricing, or cost-based pricing.

Keep an eye on evolving technology and new machinery for production

Technology improves the speed at which production occurs, and as a result, improves your productivity per unit. The better your technology and machinery, the better your quality and the easier it is for you to match the expected demand. Mechanising your production process may even help you lower your price and stay competitive. Think about how you can finance the latest technology by raising money from revenues or borrowing a machinery loan.

Additional Read: Role of GST in India’s manufacturing growth story

Learn how the supply-demand chain works

The supply chain consists of purchasing raw materials, manufacturing, and then distributing your finished product. The demand chain includes marketing, sales, and servicing. Therefore, it is essential to know how the supply and demand chain works to achieve a coordinated and synchronized cycle. Getting these dynamics right ensures that you can manufacture products that are in sync with the demand chain. Timely sourcing of raw materials, for example, can ensure that you can produce and distribute your products at the right time to increase your sales revenue.

Have a clear marketing plan to reach your consumer

Develop your marketing methodology based on the nature of your business, your product, and the size of the market. For example, if you are manufacturing consumer products, decide if you want to market in the retail or wholesale sector. If your target market is wide, then you may want to hire marketers on contract. If it is narrow, you may want to create an in-house sales force. If you want to focus on manufacturing, selling to wholesalers, or hiring contractors who will market for you may be a better idea.

Additional Read: Should you lease or buy equipment for manufacturing business

While care is taken to update the information, products, and services included in or available on our website and related platforms/websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/service document and applicable terms and conditions. In case any inconsistencies observed, please click on reach us.

*Terms and conditions apply

Bajaj Finserv App for All Your Financial Needs and Goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Explore and apply for co-branded credit cards online.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-approved limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on No Cost EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more


  1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

  2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information.  Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.