Run the prototype through the production checklist before starting full production

Producing a small batch of prototypes costs a few hundred yuan. It also takes several hours to calculate these key figures: the yield rate (how many of the 100 items can actually be sold), the supplier’s minimum order quantity and payment terms, the capital tied up in inventory, packaging and logistics costs, as well as certification and licensing fees and trademark registration costs. The hardest part is resisting the urge to skip this step and jump straight into production.

The main difference between producing one prototype and producing a thousand units lies in where your money gets invested. The yield rate determines your actual production cost — it shows what percentage of a batch of products are qualified for sale. The minimum order quantity and payment terms set by suppliers determine how much capital you must advance upfront. Inventory levels determine when you can expect that capital back. For products listed in mandatory certification categories, they must first pass certification and display the certification mark before they can be manufactured or sold. Unauthorized manufacturing or sale of such products without certification is punishable under relevant certification regulations. Food businesses and restaurants must obtain a food business license (required nationwide).

质检总局 (2009). 强制性产品认证管理规定（质检总局令第 117 号，第二、四十九条）. http://www.gov.cn/gongbao/content/2010/content_1533513.htm；市场监管总局 (2023). 食品经营许可和备案管理办法（市场监管总局令第 78 号，第四条）. https://www.gov.cn/gongbao/2023/issue_10606/202307/content_6894763.html

This checklist is based on practical experience; the legal content has been cross-checked against official sources. Before launching production, check the trademark database maintained by the National Intellectual Property Administration to see if any similar trademarks are already registered, then apply for your own trademark. Details on prohibited use of other parties’ trademarks and designs can be found in items 20 and 21 (keep purchase receipts, and ensure any designs are either created in-house or licensed for use). The list of mandatory certification categories is subject to updates published by the State Administration for Market Regulation.