If you need to manufacture a product, it is best to start out with a contract manufacturer. Make sure you spend enough time finding the right one. You will find that it is time well spent. You will also find out it is not an easy thing to find. Things to look for in a contract manufacturer are:

 

• Do they have the capacity and the manufacturing time to do at least 20% more than the projected volumes you anticipate? 
• Are their prices what you need to be competitive? 
• Make sure you do plenty of test runs to make sure they can complete your entire product line with the quality you want. 
• Do they have storage if you need it to store finished goods? If not, how far is your storage facility from the contract manufacturer? Does your contract manufacturer have shipping capabilities? 
• Do they have all of the equipment and is it the most productive equipment to make your product? 
• Who will buy the equipment if an upgrade is needed? You or the contract manufacturer? 
• Are they competitors? Even if they are not competitors you need to prepare a Non-compete/Non-disclosure agreement so they will not compete against you or steal your formulas. 
• What is their quality control like? If they produce a bad product will they be able to identify the production batch and isolate the problem? 
• Are their turnaround times acceptable? If you need emergency production runs for customers can they do it?

A part-time CFO can also be a great tool in helping you decide on a contract manufacturer!