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Manufacturing/distribution process

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Dmi3

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So I've been already been discussing the advertising side of an idea on another thread, but I feel like I've been putting the cart in front of the horse.

As my prototype begins to take shape (at a snail's pace nonetheless :smx4:), I'm starting to realize that before I even begin thinking about marketing, I'll need to figure out how to set up an agreement/contract with a manufacturing or distribution company in order to be able to put together the given product and efficiently send it to a customer. But I'm kind of confused on how this process is done. Do small business normally outsource this process or do they do it in house? Do they buy x amount of units and sit on them or do they wait until customer orders are placed before sending the order to the manufacturers? In other words, will there have to be an initial amount of money submitted upfront before you even receive your first order from a customer?

If anyone has experience with manufacturers or even has some some book recommendations that deal with this, I'd be very eager to learn about what they'd have to say.
 
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