ABSTRACT. Business Startup Issues For Microcompanies In Industrial And Light Manufacturing Sectors, With Particular Emphasis On Facility Retrofitting

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RESEARCH COMPLETED AUGUST 2010

The purpose of this research is to address a gap in the national discussion regarding business growth in the light manufacturing and industrial sector. In particular, public discussion has emphasized the use of incubators, small business tax incentives, empowerment zones, and industrial zones for the creation of small business jobs in these sectors. However, these ideas, when they work, are generally most useful for company sizes of over 20 employees. This research will propose a number of recommendations for microbusinesses of fewer than 10 employees. The emphasis will be on those measures which can help the entrepreneur actually set up shop, and acquire those first one or two employees in compliance with corporate, zoning, and tax laws.

Because of the decline of manufacturing in the USA, and because of my own work experiences, I will focus in more detail on light manufacturing within the light manufacturing wood and metals-based industries. Companies that make on-demand architectural ornament, furniture, tooling, or engraved plaques would be examples of such businesses. Many of these businesses are surprisingly unique; the products are often fine-tuned to the needs of the purchaser, and are highly customized, or aesthetically unique. This research will identify start-up concerns of particular interest to this industry segment, and will dedicate significant effort to matters associated with retrofitting small spaces (garages, workshops, leased property) for light manufacturing. Topics covered include: incorporation at low cost, challenges in workers' compensation and healthcare plans for microbusinesses, setup of essential IT infrastructure for organic growth, facility conversions, safety concerns, waste disposal, power and HVAC, air quality, and "green"  practices for the small workshop.