Creating a Facility
There is a high percentage of successful food start-ups that chose to have their own facility (versus going through a contract manufacturer). Taking over an existing facility (with updates) or building a facility means different pros and cons to the brand group.
a.) Existing Facility: You may want to explore looking for an existing manufacturing facility to save costs. Re-vamping an existing building can be an ideal option.
b.) Building a Facility: If there is enough funding the efforts of building a facility would be ideal. The location is very important. Most states have financial benefits (grants, loans) relating to your choice of a location. States such as Nevada, Utah and North Carolina are very generous in their programs. Another important factor is relating to the distribution of the product.
What Type of Arrangement:
- Leasing the Space: You may decide to do a lease if you are not sure if you are going to be in that location for a long time.
- Buying the Space: The location and local/regional/state benefits will help you make the decision.
From the experts comes the top ten steps on the subject:
