6 Brutal Truths About Manufacturing Yourself
After building two manufacturing plants from scratch and watching millions flow in (and out), here's the unfiltered reality check you need before jumping into the manufacturing game. I learned these lessons the hard way.
1. The Money Pit is Deeper Than You Think
Forget your financial projections. Equipment breaks, facilities need unexpected upgrades, and materials costs swing wildly. I've watched smart founders drain their runway just trying to keep the lights on. Our electric bill alone kept me up some nights.
2. Regulatory Management is a Full-Time Job
While you're trying to actually build products, the FDA, EPA, and state agencies are drowning you in paperwork. We once spent three months documenting procedures just to get a single certification. And just when you think you're compliant, the rules change.
3. Quality Control is a Nightmare
Quality control is extremely cumbersome and tough to keep up with. Water testing, lab reports, batch documentation – it's endless. The moment you take a breath, something goes wrong. One bad batch can wipe out months of profit.
4. The People Problem
Your dreams of a lean, mean manufacturing machine will crash into the reality of human nature. You'll spend more time managing people than making products. That "simple" three-shift operation? Get ready to become a full-time recruiter, trainer, and mediator. Your phone will ring at 3 AM when someone doesn't show up.
5. Cash Flow Will Break Your Brain
Here's a fun one: A customer orders 1000 units, but a component supplier's minimum order is 1,500 components. Multiply that across dozens of parts, and suddenly you're sitting on a mountain of inventory while your bank account gasps for air. It's a constant game of financial Tetris that few can win.
6. Your Competitors Are Moving Faster
The cruel irony? While you're troubleshooting equipment and juggling shift schedules, your competition is focusing on what actually matters – innovation, brand building, and market expansion. They're living in 2025 while you're solving problems from 1985.
There's something admirable about wanting to control your own manufacturing. In an age where AI can optimize global supply chains and find you manufacturing partners while you sleep, building your own facility is like coding your own operating system. Sure, you could – but should you?
The future belongs to companies that stay lean, leverage intelligence, and let the experts handle the heavy lifting. Sometimes the smartest move is knowing which games not to play.
Trust me, your future self will thank you for dodging this bullet.