13 May Production Challenges
- In most start-ups, there are delays in starting operations, leading to cost over-runs.
- Ensure investors/shareholders can put in extra equity or acquire grant funding to cover these costs – stand-by equity or debt facilities.
- Also, factor in time overruns in the commissioning schedule by pushing the launch date of start-up operations.
- Entrepreneurs should have access to a technical partner’s expertise to support them when problems arise in the production process, for example when the manufacturing plant does not work optimally or when the manufactured product does not meet the required quality standard. Technical supporter/advisors need to be near the manufacturing plant to assist production staff on demand and on the ground.
- Do not underestimate the attention to detail and effort of labour required in assembling and packaging finished goods.