How to Find Great Manufacturing Partners to Nurture Your Startup

Starting a new business that makes physical products is tough. You have many hats to wear and decisions to make, one of the biggest of which is finding the right partners to manufacture your products.

Many promising startups have closed their doors because they picked the wrong manufacturers. Some chose partners who made low-quality products.

Others worked with factories that couldn’t keep up when orders increased. Some startups failed when manufacturers raised prices without warning or couldn’t fix problems quickly.

This doesn’t have to be you, which is why, in the post, we’ll walk you through strategies for finding manufacturing partners who will support your startup’s growth.

Know the Kind of Partner You Need (OEM or ODM)

The first step is understanding the type of partner you need. There are two kinds: original equipment manufacturers (OEMs) and original design manufacturers (ODMs).

Stainless steel tubing manufacturers, Garment/Clothing Manufacturers, and PCBA Manufacturers are all good examples of OEMs. You give them the designs for your product, and they make it for you. You own the design, and they follow your instructions.

On the other hand, ODMs already have their product designs. You can choose one of their designs and make minor changes, like adding your logo.

Which one is better? It depends on your needs.

OEM is good when:

• You have a unique product idea that doesn’t exist yet
• You want control over how your product looks and works
• You’ve already done the design work
• You want to protect your special product features

ODM is better if:

• You want to save time and money on product development
• You don’t need a completely new product
• You’re entering a market where products are similar anyway
• You’re just starting and want to try the market

Many startups begin with ODM and then move to OEM as they grow.

Ensure they are Capable

When looking for a manufacturer, you must ensure they can actually make what you need. This sounds simple, but it’s very essential.

So ask yourself these questions:

• Can they make products like yours?
• Do they have the right tools and machines?
• Do they have workers who know how to use these tools well?
• Have they made similar products before?

Visit the factory if possible. See their machines and talk to their team. Ask for samples of similar products they’ve made. Good manufacturers will proudly show you their work and explain their process.

Check Their Quality Control Process

Would you be proud to put your name on their product? That is one of many questions you must ask yourself when choosing a partner.

Good manufacturers have systems to check quality at every step. They don’t just check the final product—they observe the materials and the production process.

Ask about their quality standards and how they measure them. Do they follow quality systems like ISO standards? These are international rules for ensuring that products are made well.

Find out how they handle problems. What happens if they find defects? How do they fix the issues and stop them from happening again?

Ask to see samples of their work, especially products similar to yours. Look closely at how well they’re made. Are the edges smooth? Do parts fit together nicely? Does everything work as it should?

Talk about your quality expectations clearly. What level of defects is acceptable to you? What features are most important to get right? A reliable partner will tell you if your expectations are realistic based on your budget.

Observe Their Track Record

A manufacturer’s history can tell you a lot about what it would be like to work with them. Don’t just listen to what they say about themselves. Look for proof.

• How long have they been in business?
• Who are some of their other customers?
• Can they give you references from other companies they work with?
• Have they had the same customers for years, or do they change often?

Talk to other businesses that have worked with this manufacturer. Ask about their experiences. Were products delivered on time? Were there quality problems? How did the manufacturer handle difficulties?

Also, look for signs of financial stability. A manufacturer who might go out of business will leave your startup in trouble, so ask about their business history and growth.

Stable manufacturers usually have long-term customers, experienced leadership, and signs of steady growth.

Communication

Clear, honest communication prevents many problems. This is especially true when working with partners who might be far away or speak a different language.

The best partners will be honest with you about what they can and cannot do. They’ll tell you when your ideas might be hard to make or when costs might be higher than you expect.

Look At the Total Cost, Not Just the Price per Piece

Price is important, but the cheapest option isn’t always the best value. Ask for detailed quotes that show exactly what’s included.

Some factories quote low prices but charge extra for things like packaging, quality checks, or shipping preparation.

Understand their payment terms. When do they expect payment? Most will want some money upfront, but paying 100% before production is risky for you. Common terms include 30% before starting and 70% when finished, but this can vary.

Ask about minimum order quantities (MOQs). This is the smallest amount they’ll make for you. Small startups often need lower MOQs to start, even if it costs more per item.

Find out if prices decrease for larger orders. Most manufacturers offer better prices when you order more.

Also, consider hidden costs like shipping, import taxes, and possible delays. Products made far away might have lower prices but higher shipping costs and longer delivery times.

Wrapping Up

The best manufacturing relationships are partnerships, not just business transactions. So, look for partners who care about your success and want to grow with you.