Could It Be Time to Take Manufacturing In-House?

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When you run a business, you have one of two options. You can sell a product or you can sell a service. The vast majority of small business owners will sell products of some sort. These could be complex or they could be simple. They could fill a gap in the market or they could simply offer something that’s already out there at a more
affordable price. The world is your oyster when it comes to selling products. But if you are selling products, you’re going to find one thing in common with every single other company out there selling products. You’re going to have to manufacture them! Manufacturing is the process of bringing your product concepts to life so that you have something tangible to offer your customers. The majority of small businesses will opt for one of two options when it comes to manufacturing – outsourcing or bringing things in-house. Let’s take a moment to determine which option is likely to be best for you!



When you outsource your manufacturing process, you hand the work over to someone else. This option tends to be favoured by most new or small businesses. This is because your products are likely to change over time, as you make changes to your product lines to suit the needs and preferences of your target audience. Small businesses are unlikely to get things perfect the first time round and tweaks, alterations or complete overhauls of product design are likely to happen at some point or another. By outsourcing your manufacturing to factories, external manufacturers or a blast room, you gain the skills of countless professionals who already know what they’re doing and how to operate their machinery and who can create your products on your behalf. This eliminates the up-front costs of machinery and equipment for you. It also gives you the option to easily and quickly switch manufacturers for your new products if you do go in a different direction.


Bringing Things In-House

If your small business has been up and running for a while and you’ve experienced success with the products you’re selling, you could reduce manufacturing costs by bringing things in house. Chances are that by now you have sufficient money to justify investing in the machinery or equipment you require and taking on the staff necessary to operate it. Remember that when you outsource, the company you use is going to be charging significantly more than it actually costs to manufacture your goods in order to generate their own profits. When you bring things in-house, costs can be cut significantly. This may feel like a big change, but it could be hugely beneficial for you. Just make sure you’re certain of the direction of your company before making the move.

These are just the basics of manufacturing for small businesses. But the manufacturing process you choose really is central to your success. So, consider your options and reconsider them on a regular basis. Your business’ needs could change over time, so it’s important to make changes as and when they’re most profitable for your company!

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