Wiki 101: How to Start an Electronics Business?

Electronic products such as mobile phones, tablet, digital cameras accessories and gadgets are popular items easily sold in the market. As long as they justify their prices and able to perform the features they boast off, then selling them to consumer should not be a problem. There are already many established electronics manufacturers out there. However, ideas for new electronics products will never run out and to start your own electronics business is never be a bad idea considering ongoing digitalization of everything–especially since you can focus on a nice that bigger companies can’t serve.

If you are thinking about to start your own electronics business, you must be well-prepared and should have enough knowledge and information on the industry you are about to penetrate. We have seen a lot of major electronic companies fail due to various reasons and this predicament makes even small up to mid-sized electronic businesses even more fragile when it comes to success. Careful planning and having a solid electronics business plan is definitely a must-have when starting an electrical business.

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Use Other Successful Electronics Businesses as Models

If you want to be a successful startup electronics company, then you should look up at other successful electronic businesses as your role models. You need to examine and understand their business setup and apply whatever positive you can take from it on to your business plan. This includes product costing, marketing strategies and employee management to name a few. You need all these information for your own business endeavors.

You can also compare successful electronic businesses with those who have failed. You can note factors on the aspects in which they have failed and take it as a notice for your own. You can also download detailed business case studies of other electronic companies online and use them as references for your own electronics business ideas.

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Have a Solid Electronics Business Plan

There is a lot of competition upfront and the risks are at a high point if you intend to start an electronic business. If you try to look at recent business news in the electronics industry, it is easy to point out ten major companies have failed from 1986 up to 2010. This number only shows how risky the electronics industry is and the failure part is always in the open.

Since you have gathered, important information on other electronics businesses and how they function, use these info as your inputs on how to device a solid electronics business plan. Try to create an electronics business plan which targets your competitive advantages. You can also use your personal professional experiences and apply it on the electronics business plan you are working on. Even though, the electronics industry is really competitive, any form of business ideas, cultures and theories can be applicable to the industry. For manufacturing, focusing on China still makes sense despite of the recent trade and tariff tensions, because there are no real alternatives.

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Considering Costs and Business Scale

Electronics startups may require a significant capital money which is why you need to secure the investment money first before you start working on your project. However, there are options to start your electronics business at low cost. You would not want your project to be put on a halt due to financial setbacks which prevents your electronics business plan from gaining momentum. You need to secure the capital investment beforehand and the expenses would involve inventory, store leasing, salaries, marketing campaigns and product costs.

You can also opt to start an electronic business from home or online since it would be much cheaper this way. However, other aspects of the business format would now go to website creation and administration. It would be a huge plus if you are internet savvy but there are technical considerations which may need professional intervention and you can’t do on your own, such as how to get a prototype made.

Depending on your vision and ambition for your electronics startup business, your business scale will hugely rely on your company budget and the possible mileage of your product. If you believe you have a promising electronic product which can cater to millions of people but you do not have the right amount of money for this big project, you can choose to ask help form other investors and help fund your electronics startup business.

There are a lot of investors and financial firms who are willing to risk on small-time electronics startups as long as the business owner is able to present a solid electronics business plan with electronic devices which are ground-breaking and relatively new in the industry. You also have to have good business reputation to easily convince investors and financial firms help you start an electronic business.

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Examining Suppliers’ Requirements

Whether you are on the side of manufacturing or retail for electronic devices, the need to work with suppliers is a vital aspect of the business. You must be aware of their terms and conditions in order to establish a smooth working relationship with them. You would not want to transfer from one supplier to another every now and which is why you need to establish a long-term deal with them. To start your own electronics business is definitely easier today than it ever was considering the many accessible factories in Asia. Many electronics Kickstarter and Indiegogo campaign fail in the manufacturing stage.

Some of the factors you may want to consider are minimum orders, certifications and referrals from other electronics business owners. While starting an electrical business, you have to establish connections in and around the industry and this includes suppliers, contract manufacturing companies and even fellow electronics business owners alike.

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Conclusion

Start your own electronics business is much like any other business idea except the industry is constantly evolving and the competition is hard. It still all boils down to extensive planning and hard work to make it all work. Having a great innovative electronics product would also easily set you apart from competitors. The electronics business idea still follows all the common business practices but it will all be up to your electronics business plan execution to guarantee success.

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Low Volume Electronics Manufacturing Basics for Newcomers

This world has succumbed to instant gratification in which consumers are very demanding help and entertainment by electronics–where they want and when they want it. If merchants aren’t able to comply with this demand then they’d get left behind in the competitive field of consumerism. The manufacturing industry is the one caught up in this consumer behavior as all other modern technologies have found their way on to the industry most specially electronics.

This development to greater variety has been proven to be a great opportunity for the world of electronics. But with great opportunities also come tremendous challenges. Product development from design to prototype is also relatively difficult in electronics but the aspect of mass production is totally a different animal. Even as new lean manufacturing processes are introduced and modern cycles are now being implemented, it is still important for small electronics businesses to innovate and use just-in-time approach for their business strategy.

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The Ins and Outs of Low Volume Electronics Manufacturing?

Effective and efficient low volume electronics production is often underestimated and overlooked in the industry due to most electronics giants are not into it. However, upscaling electronics production can be risky and costly in which small scale electronics manufacturing companies cannot afford to take the gamble. These small electronics businesses seek low volume electronics solution to assist their production line without the need to resort to an advanced high volume scale. Obvious advantages are that small quantities allow greater flexibility and easier for market testing.

With low volume electronics manufacturing, other aspects of the manufacturing process are being sacrificed to cater to this type of production environment. This may be negative news for small electronics businesses, but it is definitely inevitable and at the same time comes with a set of advantages. For example, a company into low volume electronics manufacturing may acquire top tier materials for their products but are no longer able to afford or have access to top tier services needed to manufacture the product and vice versa. There are compromises necessary to realize small scale production.

Some small electronics businesses cannot even afford top tier services or materials for any aspects of their manufacturing operations in which they only have to settle with middle-class services and resources for their production. This is usually the case when you have low volume electronics needs. However, efficiency is still achievable with low volume electronics production and here are five easy steps on how to do it.

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4 Simple Steps to do Efficient Low Volume Electronics Manufacturing

1. Take full advantage of the digital age.

From the early stages of electronic design conception up to the tail end of the production line, all stages of the production process needs to be done right in order to achieve the perfect electronic product. The biggest factor in connecting all of these micro-processes is the seamless flow of data to bridge each processes. The digital technology is your biggest asset when it comes to building a seamless flow of data from one line to another. Implementing the help of digital technology in all manufacturing processes will give your operations versatility which is necessary in creating top of the line electronics products and designs for manufacturing.

2. Avoid concurrent projects.

Electronic product development is a complex process and there may be lots of bumps along the way from conception up to the final delivery. This is why the concept of speed and efficiency is very important in all aspects of electronics manufacturing. You would not want to put projects on hold simply because some parts are still missing. This will slow down your line efficiency and pending projects will eventually take its toll on the entire operations.

You need to design a smooth interaction between suppliers and employees to make sure all items are obtained at the right price and time. This is often a lapse with low volume electronics manufacturing since parts are scarce and orders are of small numbers.

3. Educate employees with the latest techniques and technologies.

Since digital technology is the priority for low volume electronics production, you have to bridge the gap between employees and the technologies and modern techniques you are going to implement. Education is key and training should be given to employees to make sure they are knowledgeable of the new techniques and technologies to easily introduce new perspectives and solutions of the new manufacturing system.

4. Supply chain orchestration.

When the supply chain turns awry, all the work done in design, product development and product prototyping will be left for naught. If you aren’t able to comply despite the low volume electronics demand, then the product is bound to fail. This is actually applicable in both low volume electronics production and massive production.

Small business ideas for electronics suggest electronic components, sourced materials and supply chain efficiency can be directly attributable towards customer reception which means it is a big factor for the product to make money.

Supply chain orchestration is a must for low volume electronics production and it has to be implemented from start to finish. The versatility suggested on the steps mentioned above allows to mitigate risk, quick reaction to changes and product management.

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Conclusion

Electronics small business ideas say you simply have to get the foundation right and the digital manifestations will simply fall right into place. The Just-in-Time manufacturing system works perfectly well with low volume electronics manufacturing as you would be getting the right quantity of parts and orders, at the right price and time. With massive electronics manufacturing, the orders come in bunches which may be tough for you to adjust as a low volume electronics company.

All of the elements mentioned above are also applicable in standard electronics manufacturing but are further highlighted in small scale electronics manufacturing. This is because there is not much room for errors in low volume electronics manufacturing given the budget and size of the company. Efficiency is key and all these simple steps contribute towards your line efficiency as a small scale electronics manufacturing company.

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How to: New Product Development Process for Electronics

A lot of small businesses get intimidated of starting an electronics product development because their expected quantity may be too small for such a huge industry. At this day and age, this should no longer be an issue because there are already companies like us who can help you make this dream possible.

Our Electronics Production Package is perfect for startup entrepreneurs who are new to product development process for electronics. The package makes the entire production process more affordable and accessible for everyone who are still new to the industry. Our Electronics Production Package is not only limited to PCB design and creation but also extends all the way up to case molding and other aspects of electronic design and development.

The Electronics Production Package cover many aspects of electronic product design and development from PCB design and assembly up to the end of the production line. Our company, with the help of other professional electronic manufacturers, will assist you to create your electronic product from scratch or innovate existing products already out in the market today.

Our expertise and knowledge in this industry will help towards cost reduction and achieve your electronic product design despite having small orders of standard electronic components. The Electronics Production Package is designed to help small businesses save time, money and effort in achieving their respective electronic product ventures.

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Why Choose an Electronics Production Package?

You don’t have to be an industry expert or an electrical engineer to get started with a product development process for electronics. Our company can take care of the knowledge and expertise departments as we sort things out for you on your electronic business company. All we need are your inputs on design, functionality and ideas to create your electronic product. Our production team will work alongside with you in every step of the production process until we achieve the end product. Best practices can be found here that are built around agile principles.

We will create a PCB prototype which can be tested and debugged to make sure you get all the functions you need. The PCB design and functionality is critical to the outcome of any electronic product. The exterior design should also accentuate the functionality which the PCB boasts of. The final product prototype will become the basis once we integrate your electronic product for mass production. Your electronic product will be manufactured to the level of the best electronic manufacturing companies out there.

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How to Develop an Electronics Product

1. Start with a concept.

Developing a concept is the first major step in any type of product manufacturing. We will then brainstorm and come up with the PCB design needed for your product based on your specifications and functionality needed. Our graphic design team will then produce a 2D mockup design as a design template.

2. Creating a 3D model of the product.

After the client approves the 2d mockup design, we will now work on to create a 3D design as the final design template before moving on to the next step of electronic product development. The 3D model is necessary to get an actual feel of the product along with all the details and specs. A step that you normally need a separate product design agency for.

3. Designing the PCB.

Now we get into the proper phase of electronic design and development by creating a layout of your PCB. Our electrical engineers will supervise the process and make sure you come up with a circuit board which is cost-effective and has a practical size. The final step on this electronic design and development phase is the debugging of any possible flaws of the PCB design.

4. Create a PCB & product prototype.

Prototyping is arguably the most crucial in electronic product and design and development process. Some issues may only arise once a prototype is made and you hold the actual product in your hands. Expect some back and forth processes and revisions until the perfect prototype is achieved.

5. Costing process and bill of materials.

Once the product prototype is done, we will conduct a costing process to summarize all of the materials needed along with their respective costs. This way, we can look for the best suppliers which can help you save money out of your total expenses without sacrificing the quality of your electronic product design.

6. Getting ready for mass production.

The final phase of the electronic product development process is to arrange with factories to include your product in the production line. It would be ideal if you work with a single factory for the PCB manufacturing and electronic product assembly instead of working with separate factories for the respective processes. Outsourcing manufacturing in a clever way is key for affordable and good quality manufacturing.

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How long does it take to Make Custom Electronics?

Custom electronics manufacturing has come a long way and there are modern product development processes now in place taking advantage of advanced technology and extensive knowledge of the industry. These electronic product development processes are quite complex by nature. In fact, they can be considered as overwhelming most especially for small electronic businesses and entrepreneurs due to limited finances and resources.

Aside from money being a factor in electronics outsourcing, another big factor is time due to the fact, manufacturing electronic devices cannot simply be created overnight. There are different processes involved in custom electronics manufacturing and all of these processes rely on one another which makes the entire process time-consuming. Plus, there are mishaps and substandard results along the way which may push the manufacturing process a little further. Smaller quantities and many more different products are seen as the future, also in electronics manufacturing.

Lead time in OEM electronics is very crucial most especially for small electronics businesses. They cannot allow to let time slip by and let their money sleep on the products waiting to be released on to the market. They have to be efficient in all of the custom electronics manufacturing processes and sub-processes to make sure they get to see the financial returns of their investment fast.

However, modern day electronics outsourcing acknowledges these factors and companies have simplified processes and sub-processes to make sure everyone can keep up to the demand of their respective markets regardless of their business size. This move allowed small electronic businesses to compete with major electronic companies because of better production efficiency and greatly reduced lead times for wholesale electronics processes. Here is a list of how some of these processes were simplified for better lead time results.

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Creating the Circuit Schematic Design

We already know that the backbone of any electronic product is the Printed Circuit Board (PCB). However, the first major process before we move on to the PCB design is to create the circuit schematic. The circuit schematic design will serve as the blueprint to which the PCB will be patterned on to. When creating a circuit schematic design, the first part includes selection of the electrical components needed for your electronic product.

Once the electrical components are chosen and are in place, you may also have to run simulations and do some breadboarding. However, these processes are only used rarely for modern day electronic devices.

This process used to take a lot of time most especially with electrical component selection since there a lot of variations to choose from. Fortunately, there are custom electronics design software available these days which could speed up this process and you can create your circuit schematic design just after a few hours of being in front of your computer.

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Creating the PCB Layout

By using the same electronic design software mentioned above, you can also create the PCB layout out of it. Most of the work involved with PCB layouting gets automated by the software but there are other aspects of the process which needs manual routing for better performance. The software matches the PCB with the schematic design including all wire widths, spacing, component placing etc. However, you need to manually check as mistakes sometimes do happen most especially with power and RF circuits.

Make sure you already have contacted your PCB manufacturer for the specs of their board so your work in here will not be left for naught. PCB layouting will only take a couple of hours but expect 1 to 2 weeks before the prototype circuit board to arrive from your manufacturer. Still, you were able to save a day or two out of this process due to the custom electronics design software. Doing the prototypes in China has many advantages, also because getting different parts is super easy.

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Debugging and Evaluation of the Prototype

The first PCB prototype will always have issues and problems which has to be fixed. It is very rare wherein the first PCB prototype is already good to go once you get it from the PCB manufacturer. This is why evaluation and debugging process are in place to make sure everything is according to the plan. Debugging process is difficult to forecast when it comes to your lead time because you cannot simply fix when the problem is not yet identified.

This process will take a lot of back and forth until the final prototype is produced. Normally, it takes a month until problems get resolved and the final PCB prototype gets produced. If lucky enough wherein there are no problems met along the way then a couple of days should be enough for the evaluation and debugging process.

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Programming the Micro-controller

All electronic devices have microcontrollers which serves as the brains of these products. They are programmed in the “C” or assembly computer language depending on how the product is expected to perform. Most of the time, the person in charge of designing the circuit is the one who will program the microcontroller but most white label electronics and private label electronics companies these days hire a software specialist in charge of programming the microcontroller.

Division of labor will make the work more efficient and specializations and expertise are more focused. Normally, it only takes hours to program the microcontroller of a simple circuit but complex circuit diagrams may take 2 to 3 days.

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3D Model Creation

Industrial design engineers are usually hired for the 3D model creation task. Since most of the electronic designs are already in place, this task is more focused on the aesthetics and functionality of the electronic product. Electronics sourcing is not only about functionality but also incorporates style in their product designs to set them from the rest of electronic products out there.

Industrial design engineers are knowledgeable with injection molding technology which is the primary technology used for massive manufacturing. When it comes to low volume custom electronics manufacturing, 3D printing is done and graphic designers can take care of this task for OEM electronics companies out there for a cheaper price. Again, depending on the complexity of the design, the former takes a couple of days to finish while the latter will only take a few hours.

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Sixth Garment Letter

Fifth Garment Letter

What are Certification Requirements for Custom Electronics Products?

You cannot display your electronic products in the market until you have complied with necessary certification requirements electronics. These certifications are necessary to assure consumers of your product’s quality and make sure it has passed international standards. Other reasons for certification requirements are safety, legalities and public relations. These certification requirements vary from one country to another but are dependent on the country you are importing from or exporting to. It is important to coordinate the certifications before developing or buying from electronics manufacturers.

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Types of Certification Requirements for Electronics

There are different types of electronic product certifications such as FCC requirements for electronics, CE standards for electronics, RoHS, WEEE, and UL. The electronics product certification required will depend on the country the electronics product is exported to. For example, if the electronics product was manufactured for the US, then essential certificates needed are FCC requirements for electronics and UL. All European countries require CE standards for electronics, with WEEE and RoHS.

1. CE Standards for Electronics

CE stands for Conformité Européenne which is the French translation of European Conformity. The CE standards for electronics are prerequisite for electronic products manufactured and sold in and around the EEA (European Economic Area). The EEA includes all of the EU member countries such as France, Germany, Italy and a lot more.

Electronics products who underwent CE testing and has its seal means it has passed the standards of the EEA and the product conforms to its requirements. The usual directives for electronic products are:

a. Electromagnetic Compatibility Directive (EMC) – this directive requires the electronic product to attain the right levels of electromagnetic radiation and emissions. It is much like the USA’s FCC standards but includes the device’s immunity towards electromagnetic emissions.

b. Low Voltage Directive (LDV) – this directive is for electronic products with voltage rating of 50 VAC to 1000 VAC or 75 VAC to 1500 VDC. As long as an electronic product utilizes the following voltages to their input and output, they must be ensured they are safe to use. Electronic products which do not fall under these voltages are exempted from the low voltage directive while electronic products with voltages lower than 50 VAC or 75 VDC are required to conform to General Product Safety Directive (GPSD).

c. Radio Equipment Directive (RED) – electronic products which contain radio and telecommunications equipment need to connect with public telecommunication networks and follow their directive. This directive covers EMC standards and frequency allocations which are not covered by the EMC directive.

2. RoHS and WEEE

RoHS and WEEE are certificates which fall under the CE standards for electronics as directives. Restriction of Hazardous Substances (RoHS) is the directive for restricting usage of hazardous materials and components in electronic products. The standard requires to allowed level of these hazardous materials on a maximum parts-per notation. Here is the list of hazardous materials covered by the RoHS under CE testing;

• Lead (<1000 ppm)
• Mercury (<100 ppm)
• Cadmium (<100 ppm)
• Hexavalent Chromium (<1000 ppm)
• Bis(2-Ethylhexyl) phthalate (<1000 ppm)
• Polybrominated Biphenyls (<1000 ppm)
• Diisobutyl phthalate (DIBP) (<1000 ppm)
• Dibutyl phthalate (DBP) (<1000 ppm)
• Polybrominated Biphenyls (<1000 ppm)
• Polybrominated Diphenyl Ethers (<1000 ppm)
• Benzyl butyl phthalate (BBP) (<1000 ppm)

The mentioned hazardous materials are common substances found not only in electrical components but can also be found on regular everyday items such as plastics, paints, light bulbs and batteries.

On the other hand, Waste Electrical and Electronic Equipment (WEEE) is a directive which commands custom electronics manufacturers to produce and develop products which are recyclable and environment-friendly. WEEE also makes sure electronic products have least possible electronic waste. Both WEEE and RoHS work alongside each other to cover pre-production standards up to the product disposal process.

3. UL Certification

UL is a type of certification requirement for electronics issued by an American company called Underwriters Laboratories who specializes in electronic product testing in the US. UL certification is widely recognized certification if your electronic product is manufactured or sold in the US. All products which may require electrical power to function are required to apply for a UL certificate.

In order to acquire a UL certificate, your electronic product has to pass UL standards including safety tests performed in Occupational Safety and Health Administration (OSHA) which is also a certified testing laboratory. UL certification is not a mandatory certification requirement for electronics unlike CE, but it further legitimize your electronic product and show consumers it is safe to use.

4. FCC Standards for Electronics

FCC stands for Federal Communications Commission and they are responsible for testing products which radiate electromagnetic signals at a frequency range of at least 9 kHz. They are in charge of classifying electronic products as intentional or non-intentional radiator. Intentional radiators are products which emit radio waves via Bluetooth, Wi-Fi, LoRa etc. while unintentional radiators are electronic products which emit radio waves but do not use it as part of its functionality.

The FCC certificate is not mandatory but if you intend to sell your electronic product in the US then you should acquire this certificate. You have to keep in mind intentional radiators are much harder to pass compared to non-intentional products. The FCC testing process measures electromagnetic emissions inside an anechoic chamber and will charge you for $1000 an hour for the process. This can be costly for small-time electronic manufacturers and you might as well hire third-party electronic companies who have previously passed the FCC testing and put your product under their company.

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Conclusion

You have to acquire the right certification requirements for electronics before you take your product into the market. Learning the ins and outs of certificate acquisition is a must for electronic manufacturers as each type of certificate could differ from one and another. It should be addressed early with the manufacturer or product development company. You also have to be aware of the costs involved in doing these safety testing processes to make sure they fight right on to your budget. All of the expenses accumulated for electronic product certification should reflect on your electronic product’s final price in the market.

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