Business Planning Process Planning & Strategy

Manufacturing: Everything You Need to Know

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All businesses are different. There are plenty of different areas of specialism that you could operate within – clothing, tech and gadgets, food and drink, beauty products, appliances, tools… the list goes on and on. But one thing that any business offering products will have in common with the rest is that they all have to go through a particular process in order to actually have something to offer the consumer market. This process is called manufacturing. Put simply, this is the process that takes raw materials and turns them into consumer goods that can be packaged up, marketed and sold. The manufacturing process will determine the quality of your products, the safety of your products and the profitability of your products. So, you’re going to need to dedicate a little time to it. When it comes to manufacturing, most business owners will have one of two approaches, but some will use a combination. Here’s a little more information to help you determine the best for yourself.

Outsourced Manufacturing

Outsourced manufacturing tends to be the best option for small businesses. This is  when you essentially send your manufacturing out to be completed by a third party. You’ll put in an order and your final products will be delivered to you, ready to go. This removes the responsibility of having to become an employer. It removes the responsibility of having to invest in expensive equipment that could range from sewing machines to Texas International Oilfield Tools. This can reduce costs and committed outgoings significantly, especially when it comes to appliance repair Ottawa. It also allows for opportunity to change your area of specialism or product lines. If you find a product isn’t selling, you can simply stop outsourcing that product to be made and try something else without then having to shift no longer needed machinery and equipment. Put simply, outsourced manufacturing can prove cheaper and more convenient, allowing you to dedicate more time and money to other aspects of your business.

In-House Manufacturing

If you find that a particular product sells consistently and you’re happy to take on staff, you could consider bringing your manufacturing in-house. Equipment that you invest in could eventually pay for itself and you will find that you have a lot more control over your final products. You can also run test batches of new products, rather than having to commit to the minimum order that many companies require for you to submit an order with them.

A Combination Approach

Remember, you don’t have to completely settle on one option or the other. You can work a combination approach into your business – outsourcing some work and bringing some work in house. This way, you can benefit from the best of both worlds.

Sure, these are just the basics of manufacturing and the best option for you will depend entirely on your business and its unique, individual needs. But hopefully, the outlined information can give you some insight into the different options available to you!

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