Warehouses in Thailand
Business

Check These Factors When Renting a Factory

Renting a factory is an important decision. You’ll be committing to a location, investment in machinery and equipment, and the hiring of your staff. You’ll need to factor in a whole bunch of information before renting, as well as understand the implications of your decision. So, we’ve put together this post to help you make an informed decision when you want to Rent a Factory in Thailand, and avoid costly mistakes.

Market Competition

You should check the level of competition in a particular market you want to get into. If there are many factories with similar products to yours, then it will be difficult for your factory to conduct business competitively. You’ll have to spend more on marketing, or possibly offer lower prices so that you can still be competitive.

Local Economy

Inspect the local market economy before leasing a factory. The economy has a direct effect on how potential clients receive your product and whether it’s going to be able to sell in substantial numbers.

Capital Budget

Warehouses in Thailand

A $10,000 budget is certainly not a big sum of money; however, providing a capital budget to launch your first product is important. This will allow you to rent new machinery and equipment with full confidence that it’s going to pay off in the long run. If you don’t have the capital budget, you should have some sort of contingency plan on how much it will cost to get started.

Create a Business Plan

Creating a business plan is important in determining your factory’s needs, as well as knowing how much money you should invest and how you can sustain your business.

Cost

If your budget is limited, the cost of renting a factory should not be one of your priorities. You should rather focus on other requirements for getting started and building up your business. Relevant factors include rent rates, tax rates, labor costs, and utility costs.

Foot Traffic

Check the foot traffic around your factory. You want a location that’s accessible and visible to attract more clients. In this case, you should check for nearby amenities such as restaurants, schools, hospitals, etc.

Safety

Safety is very important in factories where heavy machinery is being used. You don’t want an accident that could hurt your employees or damage your property to occur because of a lack of safety measures in place.