Micro And Small Scale Manufacturing Ideas For Your Invention Business

Micro And Small Scale Manufacturing Ideas For Your Invention Business


in this video we’re going to discuss why
you need to manufacture your products yourself now I know I’ve been talking a lot about
manufacturing in the previous videos any advantages of how much money you can
make by yourself and that you don’t need anybody else in this day and age but I
want to go into a little detail here so let’s say you do have a simple plastic
product that you want to make you don’t make it yourself what you do is you
design it yourself and then you farm out all the injection molding processes
you’re not going to bring in some giant injection molding machine to get started
it’s a waste of time you don’t have the space those machines
are really expensive they take a lot of skill to run you need to make the molds
and it goes on and on and on the electric bill the employees you don’t
want all that you’re an inventor looking to make good money in the simplest way
possible I call people lazy for coming up with their ideas and then not doing
aging with them other than trying to sell them to other people but the
reality of it is we also don’t want to work too hard either we want to work
efficiently for the maximum amount of money and we do that by manufacturing
them ourselves think about this even a 30 $40 item if you can make $10 on each
item after you’ve shipped it out the door to your distributor reseller or
even retail imagine how much money you can make simply just selling you know to
300 units to 300 units at a $10 profit each is two to three thousand dollars
for very little effort if all you’re doing is slapping labels on and you need
a bedroom or a basement or a garage somewhere just to store a few of them as
they arrive from whoever’s manufacturing them for you this is a win win it should
be a dream come true for you guys it’s the way I started when I first started I
was making a hundred pieces out of aluminum at a time I had a bunch of
little aluminum parts I would have a made at the machine shop take them over
to the anodized pick him up from there bring him home
and my wife and I would sit at a table in my garage and we’d put them together
it really it was just a weekend and part time job but here’s a thing about when
you price your products correctly now those products of mine were selling
for two three four hundred dollars apiece
they took me about 10 15 minutes to assemble but I was doubling tripling
quadrupling what it was actually costing me to make them so when I was selling
them at a few hundred dollars and only selling twenty thirty of them a week I
was making thousands of dollars I mean literally out the gate I started making
fifty a hundred thousand dollars with my first it was one product that I didn’t
spun off to two products to raise the revenue a little bit more that went to
three then went to four five six products and then that was it and I did
that for god I think five six seven years by the time I was done with that
simple product that only cost me a few thousand dollars for that initial run of
a hundred pieces I made close to a million dollars in the life of that one
series of product that was it that was a five year run and a million dollars over
five years is pretty darn good when you consider I was working full
time in the movie industry and then coming home and just doing that as a
side thing instead of watching TV those products they took me two days to make
in my garage the original prototypes and then a few
hours to drill out the parts and also go over to the machine shop and talk with
them but once the machine shop had it in her hands they did all the work
it was easy it was just me picking up the parts when they were done taking
them to the anodized ER waiting a few days getting the colored parts back and
you’ve seen anodizing in the previous videos I talked about it but you can
google it or look here on YouTube if you’re not sure what I mean it’s a
hardening colouring process that they use on
aluminum and some other materials it’s actually a ceramic coating which is
interesting in fact aluminum becomes non conductive after you anodized it which
is really interesting because of the coating it’s a process that you just
drop the parts off you wait you wait for them to be done you pick them up you
take everything home you buy your screws whatever else you need you keep them in
bags on a shelf and you assemble them as you go it’s kind of a no-brainer but now
you can control your destiny with your products and here’s the other thing we
need to talk about this and I’m not gonna go just pro-america here I’m gonna
talk about America and I’m gonna talk about Europe and I’m even gonna talk to
my Indian friends because I seem to have a lot of like 5% of the people on here
are from India and I know they’re coming from croire and that’s one of the other
videos that I showed you on how you can use Quora to attract video views so I
know that about 5% is Indian you guys have the opportunity in India with all
your little manufacturing facilities around you to make anything you want
cheaply and then put them on eBay and sell them worldwide and then us in
America forget about what they have available to them we have everything
available to us in every state I will be surprised if you guys in any state in
the United States cannot find a machine shop and an anodized er I guarantee you
can find both and if you need screws and all that other stuff you order it online
it’s you know that everything’s right there it comes in the mail here if I
order from McMaster Claire in the morning my screws are here within four
hours so you have no excuse in America everything is available to you in an
instant it’s really convenient and great for you to grow your business now all
you need is a small space in your apartment or house realistically could
be a closet I mean my wife you know she didn’t mind the garage but as the
business started to grow it took over the house so she would complain about
that but so I did have to move beyond the
house pretty quickly but it was easy for years just to stock boxes on the shelves
and ship them after about five years of doing that I was looking for the bigger
you know the bigger revenue and that’s when I came up with the product attract
stick the last one I was talking about was hobby camp and that’s no longer
around so I really didn’t mention it but track stick you can go to the website
when I started thinking about track stick it was a couple years after 9/11
and I knew there was some concern in the world about terrorism so that’s what
gave me the idea for track stick it was a product that I designed completely
hands-off when I made track stick I knew I wanted it to be big and there were
only two ways I could do that one way would have been to invest in equipment
like you see here but this isn’t even really high speed equipment this is just
for me to do small batch runs when we’re talking high speed thousands of boards
you need much bigger pick-and-place machines and I didn’t want to get into
all that I’m in California I didn’t want the rent the electricity to the
employees all the insurance all the retirement expenses the medical and it
goes on and on and on I was young I was like got 32 years old I wanted to still
be able to have fun travel the world it’s what you want to do it’s up to you
if you want that responsibility I know a lot of guys that just drive off of that
I didn’t want that I didn’t want the risk of going out of business I didn’t
want the risk of not being able to pay the rent those types of things but I
could tell you one thing I learned if you do it you will figure out a way to
pay the bills no matter how much more they are than the bills you have now
it’s an amazing thing I’ve been saying I’m worried about the rent or the
mortgages or all the other costs for 20 years now I haven’t gone bankrupt yet
in fact I’ve done quite well I may not have you know the huge facilities like
you see on some of these youtube channels with the manufacturing but most
of them aren’t in California where real estate is really expensive and there are
a few like one of the guys I love is Titan C&C look him up he talks about
manufacturing in in America I could not take the pressure
of his responsibilities he’s actually talked about how he’s going bankrupt a
few time his credit is bad he’s nearly lost his businesses I I would I would
lose my hair that I love it would all turn gray first and that’s not what I’m
looking to do it’s up to you if you have the money if you have the balls to be
able to put up with that go for it I don’t have it and I’m not ashamed to
admit that I don’t have that kind of risk taking ability I tend to just do it
little baby steps at the time and as I make profits pay my taxes that’s another
thing when you make money taxes are coming so don’t forget that I can’t tell
you how many Kickstarter projects I’ve seen go under not because they didn’t
ship a product but because of the taxes you and you’re an inventor you’re a
businessman too this is another thing we will talk about it in the future but not
only are there responsibilities for bills the taxes can be huge
and in California believe me they come knocking they come looking for you
so you need to think about that that as you become successful you are a target
for the taxman so prepare for it and these are the realities of manufacturing
and it’s really not manufacturing we’re talking about in most cases here we’re
talking about micro manufacturing we’re talking about 100 200 500 pieces at a
time we’re talking about not big investments for you guys I know the
prices if you do all aluminum products if you do injection molded parts you can
many times get in depending on your product to three to five thousand
dollars at the most for your first product I think that’s a good risk
tolerance and then as you grow you take on a little more maybe a fifteen
thousand dollar product here’s another hint so my most successful products and
this has been pretty consistent I have products that have cost me
anywhere from $2,000 to make up to a quarter of a million
and I will tell you a little secret my most successful products this is true my
most successful products have cost me anywhere from $3,000 to $10,000 to make
now I have made hundreds of thousands of dollars in mistakes along the way taking
those $3,000 products to market I don’t have to make those mistakes anymore but
I did in the beginning I mean my track stick technically cost me less than
$10,000 to invent but I blew twenty thousand dollars of my own money making
my first mold that was useless because I wound up hiring people that had never
made molds before and they were like two thousand miles away and here’s the
kicker so I blew twenty thousand dollars on that mold and I was so upset about it
and I started googling there was a mold maker within walking distance of my
house in California then I wound up hiring and I think he did my first mold
it was about 15,000 I told him I went broke for 20 grand could he please make
my next fold for 15 and I promised that I would give him more business which I
did I made about 10 molds with the guy it was just incredible the learning
experience and how much I could have saved if I knew ahead of time but that’s
life and that’s why we talked about you need to get out there and you need to
start talking to these people and learning the processes so you don’t make
the same mistakes that I made in the beginning and if you are learning
something from these videos I hope you’re subscribing you’re leaving
comments below you’re giving me a thumbs up because I want to help I also want to
grow this channel and you know I want to be here for you guys because it’s
exciting as you guys are making things and talking to me it really encourages
me to keep going even when I have such a low view count
right now thanks to YouTube and its new algorithms but we’ll get
that if you just keep on leaving me comments so that I know were punching
through the slow views I don’t care how many people are viewing this what I care
about is that the ones that are viewing this channel are learning something and
implementing it that’s what you need to do because if you just start doing some
micro manufacturing invest a few thousand maybe and I know this in India
you guys are probably investing a few hundred the equivalent of a few hundred
dollars with your friends and they’re making you product so anybody can do
this in America it’s gonna cost us a little more because we do have different
laws and restrictions that don’t allow us to be that cheap Europe the same way
Europe’s going to be a little more expensive for manufacturing than in
America and definitely more than it’s gonna cost in Asia but it doesn’t matter
it depends on what your interests are where you want to make your products
what your commitment is I am like 100 percent make it in America but
unfortunately in California because of all the environmental laws and all the
other restrictions most of the time I get prices that are three times the cost
of what they are to make in Asia so you know if they can’t compete you can’t
just say oh okay I’ll pay three times more that three times
represents the entire cost of my product which means that they’ve raised the
price by three times at the same C shops my retail is going to double my cost to
the distributors is probably going to triple I’m gonna price myself right out
of the market so when it comes to manufacturing you’re
gonna have to pick all different places if you know something’s cheap to make
around the corner do it around the corner don’t send it to Asia you know do
it locally but at the same time if you’re good if you have a part that’s
machined and let’s say it’ll cost you 75 dollars to make in the US but China will
sell to you for $30 a piece in a quantity of 100 where do you think you
have to go you’re going to have to go to Asia to
China and I’m going to mention Titan C&C again because I’m watching his videos
this guy gets me pumped up I mean he’s different he’s different
just like I’m different big guy big strong guy I’ll put a link down below
and he he’s a genius I know a genius when I see one this guy’s so smart and
the way he looks he may not even realize how smart he is because he talks about
machining like I’ve never heard it talked about before and I know machinist
he has beautiful shops Titan C&C has shops that you could eat off the floors
everything is pristine when I look at his machines they shine there’s no chips
there’s no oil they’re beautiful and it’s not because he’s not using them and
they’re brand new this guy loves what he’s doing and he’s pumping me up
because I gotta say he’s making stuff in the US I’m saying make stuff in the US
we’re both doing it and you can too and if you’re in Asia make it in Asia if
you’re in Europe make it in Europe make your commitment to the people around you
that’s all that’s important it’s not about nationalism it’s about
manufacturing because manufacturing is what made America great we all need to
manufacture if we want to see our countries do well so look at Titan and
what he says the only way that America is going to compete in the world is if
the machines make the parts quicker we already know that especially in
California labor is expensive and the liability that goes with it
it is prohibitive for companies it does create a burden for companies so what he
says is you hire less people but you make the machines run quicker you buy
newer machines you program so they’re fast
you make efficient ways to manufacture so you can get more product out the door
now I should listen to this advice because the stuff that I run on these
machines many times gets back ordered by days by weeks it’s frustrating for me
because I can never predict the amount of sales that I’m going to get and no
matter what I put on the Shelf it seems to sell out so you can actually and this
is a weird thing about business even though my profits on purpose are high I
can actually put myself out of business by making too much product yes I know
that people are going to buy it but at what cost to me in terms of stocking it
on the shelves Titan talked about this too we’re a company said we need to stop
our orders but he kept going and these were expensive millions of dollars in
parts it was actually a hundred million dollar contract you can look at his
video he just said you know what they’re gonna come back and they’re gonna order
more so I’ll just start keep making them for weeks maybe months he went on and he
made all these parts they never came back for them so when you do this you
got to watch how many you put on yourself manufacturing is a game you
juggle how many do I make versus how many I think are going to sell not how
many are actually selling because remember there’s a delay after order
parts from Asia I order parts from down the street they all take time to come in
then there’s processes like anodizing painting whatever processes you add to
that they all take time and god forbid one of those manufacturers get busy
because then the time that you normally get them in becomes longer so when it
comes to manufacturing start thinking of a plan because that’s how you’re gonna
make your money you

Leave a Reply

Your email address will not be published. Required fields are marked *