Manufacturing & Distribution Option
Two options exist for a Research and Development company can develop manufacturing and distribution capacity. The first will require the R&D company to develop (build) the manufacturing and distribution capability from the ground up. This involves the following:
The second option is to purchase an existing company with the required manufacturing and distribution capability. Where potential acquisition targets exist, it is generally cheaper to buy than to build. A variant on this option is to merge the R&D company with an existing manufacturer.
Regardless of the method chosen to get into the manufacturing business, once the decision has been made to manufacture the product "in-house", a full production manufacturing plan must be prepared. This will require the following issues to be addressed: