Making It Work - A Guide to the Options Available to Manufacturing Start-ups

We took a look at the options available to manufacturing start-ups. Businesses choosing to take advantage of cheap labour in other parts of the world - especially on the Indian subcontinent - will find obvious gains in terms of cost, but this is not the only way. As an example of a start-up which has taken the 'best of British' approach, we will look at the reasons Hillingdon-based 365uk - a company manufacturing scooter accessories - chose to manufacture in this country and how it has worked out.

Every start-up business may find itself feeling like a little fish in a big pond in those difficult first years. But manufacturing is one of the most likely sectors where start-ups are likely to feel out of their depth.

Manufacturing companies based in the UK - both large and small - face mounting competition from goods and services produced in lower-wage economies overseas and the situation has caused concern for the future of UK manufacturing as a whole. The success of United Kingdom manufacturing is crucial to the country's prosperity present and future, making up a sixth of the economy, generating about 3.5 million jobs directly (as well as millions more through the supply chain and related services) and is responsible for about two thirds of all UK exports.

But manufacturing in the UK is apparently contributing less and less to the national economy and the University of Cambridge estimates that if current trends continue, the number of people employed in manufacturing could almost halve in 10 years' time. The Department of Trade and Industry(DTI) acknowledges the challenge for manufacturers, saying: "Globalisation and trade liberalism mean companies face increasing competition from goods and services produced in lower wage economies. The UK cannot compete on low wages, nor should we want to. The future of UK manufacturing depends on raising investment and applying science and innovation, best practice and skills to create even better products." This means the gauntlet is set to manufacturing firms which are just about to try and make their way in the world.

Necessity is the mother of invention...

Tim Witham came up with the idea for his new business after spending almost ten years as a self-employed bicycle courier in London. He explains: "Five years ago I was in Paris for a long weekend with my girlfriend when I noticed scooters with fitted capes which protected the riders from the elements.

"From my own experience, I know riding in pelting rain is perhaps one life's of the most miserable experiences! Seeing this got me thinking it might be a great concept back home.

"At the time I was interested in another challenge, the timing was right so the business sprang from there."

Research

First of all, Tim bought competitors' products and pulled them apart, a good move for any start-up in the manufacturing market. Tim had never been involved in the world of textiles before so research meant adapting and servicing fabrics, a very subjective process, experimenting with heavyweight, 100 per cent waterproof fabric made from nylon. Tim had a lock-up garage at his home in Cowley, Uxbridge, and was able to make templates and cut the material himself before sourcing manufacture companies who could make up the pieces for him. He was found several companies in the nearby areas of Southall and Hayes which could help produce sample pieces to see how they would work.

By biding his time and keeping his job during the early part of the process, Tim was able to assure himself the business was viable. He also had previous experience of as an advertising sales negotiator before his courier work which was a helpful grounding in the sales side of things.