When you run a small business, you have to focus on all sorts of areas in order to keep things up and running and to provide your customers with the products that they want. Manufacturing is a major part of this process – after all, without manufacturing your product concepts will remain mere concepts and you’ll have nothing to offer to the consumer market. But there is a lot of decision making to be carried out in regards to how your business will manage its manufacturing process. A major decision is whether to outsource or whether to keep things in-house. Here’s a little more information that could help you to come to the right decision for your company.
When you are first starting out in business, it is generally best to outsource your manufacturing process. There are a variety of reasons for this.
- Opportunity for Change - when you first start out in business, you are likely to go through a process of trial and error in regards to your products. You may launch a product only to find that it doesn’t take off. If you outsource your manufacturing process, you can cut your losses and stop production. If you’ve already bought all of the manufacturing equipment to make your products in house, you’ll be left with a bunch of machinery that you can’t use and you’ll have wasted a lot more money.
- You Don’t Become an Employer – by outsourcing, you can make use of the expertise of people who can manufacture products professionally, but you don’t have to employ them. This means that you have less responsibility as you can make use of their services as and when you need, rather than having to provide contracted working hours.
- Quality Products – when you outsource, you are engaging with an individual or business who needs you to keep coming back out of your own choice. They are consequently going to provide you with good quality end products. They aren’t going to send anything faulty, damaged, or imperfect, as this will reflect on the service that they are offering and could lose them future business.
Once your business has found its footing and you know that there’s a market out there for the products you are producing, you may want to bring manufacturing in-house. This will prove a lot cheaper in the long run. After all, the equipment that you purchase will quickly pay for itself once profits start rolling in and you then you remove the need to pay outsourced companies each time you are producing a new line of products. For high quality equipment that can be used in your manufacturing process, visit varnerpipe.com.
Remember that you don’t necessarily have to jump straight from outsourcing your manufacturing to dealing with all of your manufacturing in-house. You can make the transition a little more stable by opting for a combination of the two. You could start manufacturing one product in-house, then adding more and more as you go along with outsourced manufacturing keeping things running along the way.
As you can see, there are benefits to outsourcing and in-house manufacturing. Determine which is best for your business, but remember to reanalyse as your business grows and expands!