How to find a manufacturer for small businesses

You've done it. After weeks, months, maybe even years, of hard work and dedication, your small business is actualized. You're very soon going to have your own retail store, be it a small boutique, beauty salon, or even an online shop that’s been your dream for ages.

But, of course, before you open the doors (both real and virtual), you first need to fill that store with your awesome products.

Now, there are a couple of ways you can do this. If you're an artist or some kind of creator, you can make everything yourself. We see this a lot with handmade jewelry stores, custom art galleries, boutique clothing, or at little artisan markets.

But alas, not everyone can be Picasso or whip up a shop-full of inventory by themselves. For those who don't want to spend hours making their own products to sell, manufacturers and suppliers are another option.

This guide’s going to teach you everything about hunting down a manufacturing partner or supplier. We’ll cover how to size up manufacturers, weigh up domestic vs. overseas options, and ask all the right questions so your supply chain doesn’t turn into your #1 stress.

What is a manufacturer?

A manufacturer turns raw materials into finished goods. Then, these manufacturers sell goods to stores, distributors, other businesses, or even straight to customers. Sometimes, other businesses take those items and turn them into something even more complex.

Most manufacturers stick to what they know best. For example:

• Glassware makers handle bottles and jars
• Cardboard box makers handle packaging
• Plastic product makers handle containers
• Textile makers handle fabrics, clothes, or bags
• Electronics makers handle gadgets, chargers, or headphones
• Cosmetic makers handle skincare, makeup, and lotions

Lots of retailers work with a bunch of different manufacturers. This mix-and-match approach (that a lot of people in the industry call supplier diversity) keeps your store’s lineup interesting and lowers the risk if one supplier can’t deliver.

Manufacturer vs supplier?

As I'm sure you've already noticed, we've used two terms in this guide already.

1. Manufacturer
2. Supplier

Are they the same thing? Totally different? Somewhere in the middle?

Well, all manufacturers are suppliers, but not all suppliers are manufacturers.

"Supplier" is the big, broad term for anyone who gets products into your hands. However, there are different types of suppliers, including:

• Manufacturers: Make your product from scratch or provide parts so you can finish it yourself.
• Wholesalers & distributors: Already have products made and ready to sell, so you can stock your store without making anything. Check out our guide on how to buy wholesale if this is the option you think would work best for your business.
• Dropshipping suppliers: Ship products straight to your customers for you.

Domestic vs. overseas manufacturing

So we've established that not all suppliers are the same. Some manufacturers sell goods straight from their factory. Some are wholesalers. Some are distributors. Some do both. The trick is finding the right manufacturer or right manufacturing partner for your unique needs.

Before we go further, you'll first need to work out if you’re going to be working with domestic or overseas factories.

A domestic supplier just means a company or manufacturer that makes or provides products inside your own country. An overseas supplier, on the other hand, is based in another country.

The table below shows you the key differences beyond where these factories are based so that you can see the pros and cons of each:

Regulatory compliance and quality control

Beyond price, quality, and shipping costs, you’ve also got to think about regulatory compliance.

For example, if you’re making cosmetics, the US FDA requires manufacturers to do toxicology testing. So be sure to find manufacturers that can provide this.

It’s also about the people making them. Does your manufacturer offer safe and humane working conditions? Laws like the Uyghur Forced Labor Prevention Act (UFLPA) exist to stop human trafficking in global supply chains. Basically, any goods made in certain regions of China can’t enter US markets.

Wherever you source your products, check if the manufacturer has a business license and is ISO certified. That covers quality, safety, ethics, and sustainability.

7 tips to help you find the best manufacturer

It's time to get practical. If you're scratching your head, asking yourself how to find suppliers for my business, here's everything you need to know:

Look into different manufacturing options

Finding the right manufacturer is huge. It affects your product costs, quality, packaging, shipping, and your chances of success. So let’s make this easier. Here’s how to start your search:

Google it

Yep, good old Google works. Try searching for things like “manufacturers near me” to find local options. Peek at their websites, check reviews, and see what products these companies specialize in.

Referrals

Sometimes the best leads come from people you know. Word of mouth is a brilliant thing, after all. Ask your fellow business owners or successful entrepreneurs in your niche for recommendations. Join Facebook groups or ecommerce communities to get the 411.

NAICS codes

The North American Industry Classification System (NAICS) assigns codes to manufacturers and products. These codes can help you find manufacturers in professional directories for the US and Canada.

Once you have a list, do a little detective work. Check the Better Business Bureau (BBB) for complaints to make sure they’re legit.

Alibaba

Alibaba is a big marketplace connecting you with mostly overseas factories in China.

When checking suppliers on Alibaba, look for:

• Gold supplier: They pay for membership, so they’re somewhat committed.
• Verified: Alibaba or a third party has visited their facility.
• Trade assurance: Protects your purchase order from payment to delivery.
• Certifications: Like SA8000 for humane working conditions.

Online supplier directories

These list thousands of manufacturers, wholesalers, and suppliers, both domestic and overseas. Here are a few examples of some popular ones:

Domestic directories:

• Thomasnet
• Maker’s Row
• MFG
• Kompass
• Council of Manufacturing Associations

Overseas directories:

• AliExpress
• Indiamart
• Sourcify
• Dun & Bradstreet

These tools will help you find manufacturers and vet potential manufacturers before you commit.

Request price quotes from suppliers

Start by getting quotes from at least three manufacturers. This way, you can compare and make a smart choice. If you’re looking at domestic manufacturers, try to visit their facilities. Seeing their operations in person can tell you a lot about how they work.

But beware: the first quote you get is rarely the whole story. Hidden manufacturing costs can pop up, especially with overseas factories or wholesale suppliers. Watch out for things like:

• International shipping, customs duties, and tariffs
• Currency exchange rates
• Third-party quality control or inspection fees
• Rework or defect costs if the original product samples aren’t perfect
• Tooling expenses for custom molds or machines

Do some research on your shortlisted choices

Here’s what you need to find out before choosing the right manufacturing partner:

• Are they quick to respond? Prioritize suppliers who are responsive and eager.
• How do they make sure your products meet standards?
• Can they handle your specific product?
• Can they deliver products fast enough to keep inventory and satisfied customers happy?
• How many items do they require per order? Don’t lead with this question, though. Build rapport first. MOQs are often negotiable.
• What's their CPU? Usually, bigger orders mean lower costs. Negotiate this.
• Can they give you exclusivity of the manufactured products you buy?
• Are there any setup fees? Some manufacturers charge to prep equipment for your run, for instance.
• Are they ethical and sustainable? Your customers will care about this so you should too.

Share your product designs clearly

Ever tried explaining your brilliant idea to someone… and halfway through they’re completely lost? Yeah, don’t do that with your manufacturing partner.

Your manufacturer can’t read your mind (unfortunately). If your sketches, CAD files, or notes are confusing, expect mistakes, defective products, and extra costs.

To get this right:

• Use visuals: Photos, sketches, CAD drawings.
• Include specs: Materials, dimensions, colors, tolerances - don’t assume they’ll guess.
• Label everything: Call out tricky parts, special finishes, or hidden details.
• Share samples: If you already have prototypes, send them along.

Test samples and check quality standards

One of the biggest mistakes we see entrepreneurs make is rushing into production without ever really testing the waters. We completely understand that you're excited, you’ve got momentum and you just want to get your product out there. But, if you don’t order samples first, you’re gambling with your entire brand.

Think about it: That first sample isn’t just a piece of fabric, or plastic, or metal. It’s your benchmark. It’s the standard you’re going to hold every future order against. When you receive it, don’t just glance at it and toss it aside. Date it. Sign it. Keep it safe. Because later, when you’re knee-deep in logistics and you suddenly get a shipment that looks a little… off - you’ll have that signed sample in your hands. That’s your evidence, your control, your safeguard.

People lose thousands of dollars because they didn’t do this one simple thing. Plus, you'll be able to save yourself from disaster because you could point to your sample and say, “This is what we agreed on.”

Talk terms and negotiate deals

You don’t have to take the first quote a supplier gives you. That number is just a starting point.

Even after you’ve got your sample in hand, you can still negotiate. Payment terms. Minimum order quantities. Don’t be afraid to push back.

The best way to negotiate is to step into the suppliers' shoes. Ask yourself: why do they want that minimum? Is it about covering setup costs? Is it about making sure their time is worth it? If you know their reason, you can offer a smarter counter.

Payment terms are the same. A lot of manufacturers will ask for 100% upfront. But many are open to a split, say 50% before production, 50% after delivery. That’s a win-win.

Make your first official order

Now that you've done all the necessary checks, it's time to place your first order.

If you followed everything up until this stage, you should have a brilliant product range that'll fill your shop and bring in tons of customers.

Tie manufacturing to sales and cash flow with Epos Now

Congrats! You’ve found your right manufacturing partner and your brilliant products have been delivered. Now it's time to link it to your POS system. Here's how...

1. Record the order in your POS: Enter the product, quantity, cost per unit, and expected delivery date. This creates a digital record to track your incoming stock.
2. Sync inventory: When the manufacturer ships your goods, update your POS so it automatically reflects incoming stock.
3. Set up reorder alerts: Use your POS to monitor stock levels and do some inventory forecasting. When products hit your minimum order quantity (MOQ) threshold, it can trigger an automatic reorder with the same supplier.
4. Reconcile inventory and sales: Once products are sold, your POS automatically deducts stock, helping you reconcile what’s been ordered, received, and sold.
5. Generate reports: Keep an eye on supplier performance, product sales, and reorder efficiency.