How to Start a Manufacturing Business: Step-by-Step Guide
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 2
- 3 min read
Starting a manufacturing business is a bold move that can lead to long-term profitability and industry impact. Whether you're planning to produce metal parts, machined components, custom tools, or fabricated assemblies, launching a manufacturing company requires strategic planning, capital investment, and proper insurance coverage.
At Wexford Insurance, we specialize in helping manufacturing and machining businesses protect their operations with tailored insurance programs. This guide walks you through the essential steps to start a manufacturing business successfully.
Step 1: Choose Your Manufacturing Niche
Start by identifying what you’ll manufacture and who your target customers are. Common niches include:
CNC machining and precision tooling
Metal fabrication and welding
Automotive or aerospace components
Industrial equipment parts
Consumer goods or packaging materials
Research demand using platforms like IBISWorld.
Step 2: Create a Business Plan
A solid business plan outlines your goals, startup costs, production capacity, and marketing strategy. Include:
Market analysis
Equipment and staffing needs
Financial projections
Risk management and insurance planning
Step 3: Register Your Business and Get Licensed
You’ll need to:
Choose a business structure (LLC, corporation, etc.)
Register with your state and obtain an EIN
Apply for local business licenses and zoning permits
Consider environmental permits if handling hazardous materials
Learn more from the U.S. Small Business Administration.
Step 4: Secure a Facility and Equipment
Your manufacturing space should meet safety, zoning, and power requirements. Initial equipment may include:
CNC machines, lathes, mills
Welding stations and fabrication tools
Inspection and measuring equipment
Material handling systems
Explore equipment financing options through Manufacturers Financing Services.
Step 5: Hire Skilled Staff
Depending on your niche, you may need:
Machinists and welders
CNC programmers and operators
Quality control inspectors
Production managers
Step 6: Get Manufacturing Insurance
Insurance is essential to protect your business from unexpected losses. At Wexford Insurance, we offer:
General Liability Insurance – Covers third-party injuries and property damage
Commercial Property Insurance – Protects your facility and equipment
Workers Compensation Insurance – Required if you have employees
Equipment Insurance – Covers repair or replacement of machinery
Commercial Auto Insurance – For vehicles used in operations or deliveries
Learn more about our manufacturing insurance programs.
Step 7: Market Your Manufacturing Business
Build a professional website and showcase your capabilities. Use:
SEO and Google Ads
LinkedIn outreach
Trade shows and industry directories
Email campaigns and referral programs
Market Your Manufacturing Business with Contractor Back Office
Struggling to stand out in a competitive industry? Contractor Back Office helps manufacturers build a strong brand, attract more clients, and streamline operations with smart digital tools.
Our Services Include:
Final Thoughts
Starting a manufacturing business requires vision, planning, and protection. At Wexford Insurance, we help manufacturers and machine shop owners launch and grow with confidence. Our niche-focused insurance programs are designed for the machining and manufacturing industry.
Ready to start your manufacturing business?
Contact Wexford Insurance today to get expert guidance and coverage tailored to your needs.
