How to Build a Factory | Government Support to Set up a Factory
Factories are very important businesses in the development of national economies and societies. If you want to earn high profits and do a large-scale business, you may want to consider setting up a factory. Establishing a factory can be seen as an extremely difficult and high-capital area today. However, it should be known that small, medium and large-scale enterprises can be established in this field. In order to answer the question of how to set up a factory, you first need to decide what kind of environment you want to produce in. In this process, you need to decide on many issues such as factory establishment stages, production process and employee information in advance.
The most important issues for establishing a factory include choosing a location, finding a suitable building, determining the sector of production and calculating the customer potential. Making a very comprehensive business plan that includes these details is very important in the process of establishing and maintaining a factory. Establishing a factory is a big step to keep your profit margin high and expand internationally in the future. Although a very large business is not established in the first installation phase, it can be entered into this field by starting from a smaller production site.
If you have identified a production sector for yourself, you need to investigate the issue of capital supply. Issues such as what kind of support is provided, bank loans and interest rates, how much of the capital should be kept in cash become very important. You can learn all the information required in the process of establishing a factory in the rest of the article.
How to set up a factory
It is necessary to answer the question of how to set up a factory in detail from different angles. Because it may be a little more difficult to achieve permanence in this field, which requires large capital and labor force. If you have the capital required to establish a factory, you first need to make a business plan in detail. You should mention every detail from the type of production to the employment sector. The issues that should be included in the business plan can be listed as follows:
- Sector research of the factory
- Research on competitor companies
- How many workers will be employed
- People who will work in the administrative staff
- List of documents required for factory establishment
- Capital Amount
- Where the capital will come from
- Production materials
- Location selection
- Demographic and climatic conditions of the location where the factory will be established
- How transportation will be provided
- Distance to market
All such issues should be included in the business plan in detail. The most important issue in this process is the choice of the place where you will establish your factory. Because factories are generally established in industrial or organized industrial zones outside the city. This situation can cause you transportation problems.
What Should I Do to Build a Factory?
There is a lot of work that people need to do when setting up a factory. On the one hand, you need to overcome legal procedures while preparing the production facility. When setting up a factory, you need to consider certain conditions. Raw material supply and logistics are the main ones. It is very important to conduct research during the factory establishment phase. Conducting detailed research both in the place where you will set up the factory and in its surroundings ensures that you are prepared for situations that may arise later.
With a successful feasibility report, you can more easily see what you need during the factory establishment phase. By looking at the prepared report, you can more easily decide whether your project will be implemented in the area and sector you have determined. At the same time, thanks to this report, you can see your shortcomings and capital requirements very easily. Most importantly, you will have the chance to see the obstacles, advantages and disadvantages you may encounter.
When it comes to establishing a factory, you should evaluate profit, loss and cost issues in detail and evaluate the previous works in the sector. In particular, you should be able to analyze your competitors very well and determine how much the products produced will be sold to whom.
Factory Establishment Cost
In order to establish a factory, you first need to establish a company. For this, you should start the application process by preparing documents to official institutions. If necessary, you can also get consultancy service from a financial advisor in this process. Because during the establishment of a company, both the paperwork procedures and the type of company you need to establish can create a complex process. The cost of setting up a factory is also an issue that should be emphasized in this process.
Establishing a factory in any area can be extremely costly. What determines the cost here is the scale of your factory. Therefore, it may not be possible to talk about an exact cost figure. However, even for the smallest factory, you will need at least 20-30 thousand dollar. In this process, the highest costs will vary completely according to the size of the factory that people want to establish.
State Support to Build a Factory
Receiving government support to establish a factory can relieve you a lot about capital. Because you will need financial support for the establishment of the production facility, starting production and many other points. In this process, especially your factory project must be liked by the organizations that provide this support. In this process, you need to prepare a report to expand your production facility.
What Factory Can I Build?
At the stage of establishing a factory, you need to determine in which area you will operate. In this process, you should consider many factors to determine the area of the factory. In order to decide what you will produce, you should evaluate the proximity to raw materials, proximity to the market, the characteristics of the installation location, technical personnel supply and technical equipment.
In this process, your technical equipment must be sufficient. Having a qualified workforce is also an important issue in terms of factory continuity. In this process, you can open your factory in areas such as food, cement, paper, pharmaceutical industry, textile. In this process, it is of great importance to know in which areas the state provides support.
Factory Establishment Stages
It is necessary to be meticulous about the factory establishment stages. Because the slightest mistake in this process means that great efforts are wasted. During the establishment of the factory, it is first necessary to prepare official documents. Other stages are as follows:
- You need to make planning in order to establish your factory.
- The sector to be produced should be selected.
- You need to make a financial analysis about your sector.
- You should determine your financial resources and clarify your capital amount.
- You need to prepare a detailed business project.
- Conformity certificates issued by the Ministry of Industry and Trade must be obtained.
- The EIA report is extremely important among the documents to be obtained in this process.
You can set up your factory in a suitable location, taking into account all stages. But the most important thing is proximity to raw materials and easy accessibility to the market.