Manufacturing Can Be Menacing – Should You Outsource or Keep it in-House?
When it comes to manufacturing your own products, there’s a lot that can go wrong. If the design isn’t quite right, then you won’t appeal to customers, and if it doesn’t comply with health and safety and other regulations, then your product could harm someone. This is, of course, bad on a moral level, but could also mean a lawsuit being made against you and it could be over for your company before it’s really even started. The plant itself is also fraught with problems, and when your workers are dealing with machinery, power tools, chemicals, high heats and vehicles like forklifts- it increases the chances of an accident. However manufacturing your own products can also be highly beneficial, and there are some fantastic plus points to it too. You get full control over your business and products, and in the long run you save money too. You’re not paying a third company for their services or even paying a wholesaler who will be making some profit. What it comes down to is what kind of budget you have and what sort of products your company sells. Here are a few things to take into consideration.
Setting Up Your Plant
Whether or not it makes sense to manufacture your own products mainly depends on your budget, and the kind of items your company wants to make. For example, for very complex items it could be worth outsourcing to a company that specialises in making these. This is because the upfront cost of machines, as well as experienced workers to run everything might be more than you can afford to pay as a smaller business. It might still be possible in some cases; you could perhaps find second-hand machines or invest in the tools and equipment you need. When companies upgrade or go out of business, they put these kinds of items on sale so it’s worth keeping an eye out for. If your business makes products that are easier to manufacture such as clothes or homewares then purchasing some industrial sewing machines could be a possibility, your main concern would be finding skilled staff to run them. If you don’t like the risk of getting it wrong with manufacturing, you always have the option to outsource or use a wholesaler. Click here to find out more about how this process works, and the kinds of products a wholesaler could get for your businesses.
The Upfront Costs
There are significant costs when it comes to setting up a manufacturing plant, and not just when it comes to the equipment, tools, machinery and raw materials. You will also need to consider things like hiring premises, hiring staff, transportation costs getting your products to and from the plant to the warehouse. You’ll need to think about maintenance and repair costs and so much more. Work out exactly how much money you will need to spend to get started and from there you can see if it’s doable for your company. It can be well worth doing if you’re able to, because once these costs are out of the way, it allows you will save money in the long run. If you’re bootstrapped and don’t have upfront cash, how about taking out a business loan or finding an investor? A couple of options to consider.
Health and Safety Considerations
There are of course health and safety risks involved in any workplace. Even somewhere seemingly very safe like an office or shop, accidents like slips, trips and falls can lead to potential issues and could mean lawsuits being made against you. However when it comes to running your own factory, there are even more health and safety considerations to bear in mind. When power tools, machines, vehicles, heat, chemicals and working at heights are all part of the average work day, it can make for a more dangerous workplace and so many more things that could possibly go wrong. Make sure you have the correct insurances in place so you’re covered just in case. Make sure that staff that step into the plant are properly trained, and that health and safety laws are followes to the letter. This means you avoid mistakes being made that could harm your employees and put you at risk of being sued. When you buy from a wholesaler or outsource to a manufacturing company, you avoid these problems. Which can be a big plus point especially when you’re a newer or smaller business when you cant afford to get anything wrong.