When you’re running a product-based business, your manufacturing processes are a core part of your business. Getting them right can mean the difference between a successful business and a failing one.
When you started your business, you put into place a manufacturing process that worked for your budget and your goals. However, now you’re established and looking for growth, how can you make sure that your manufacturing processes still meet the needs of your expanding business?
Let’s take a look at some common concerns that product-based business owners have when it comes to growing, and how to mitigate them.
Concern: The cost of expanding your manufacturing processes
Keeping an eye on cost is essential for running an effective business. To increase profits you need to sell more. To sell more, you need to produce more. But when you’re running to tight budgets, you might not have the funds to invest immediately in expanding your manufacturing processes. Unfortunately, these constraints can sometimes lead to businesses cutting corners.
Solution: Third party manufacturing can be more cost-effective than in-house
We find that many business owners are surprised at just how cost-effective outsourcing their manufacturing to a third party is. In fact, outsourcing often means that businesses can keep their process cost-effective without cutting corners or compromising on quality.
Concern: The ability to scale quickly as needed
Every business wants to grow, but with that growth comes the need to scale. Many product-based businesses put effort into their marketing and promotion, but when that effort pays off they are all too often not ready for the increased production that is necessary. This can lead to not being able to fulfil orders, and can be a real problem for maintaining relationships.
Solution: Outsourcing your manufacturing means that you can scale with ease
Third party manufacturing gives you the ability to grow quickly without having to invest in more space, more machinery or more staff in order to meet increased production requirements. Third party manufacturers are set up to allow for fast growth without the growing pains. You can concentrate on driving sales, safe in the knowledge that you can ramp production up and down with ease.
Concern: Balancing operations with innovation
To grow, you need to innovate and develop. When you’re running an existing business alongside developing new and existing products, there are a lot of elements to juggle. Getting the balance right between product development, innovation, manufacturing and after sales support can become overwhelming. Then there’s the human resources element. Having the right expertise and staffing in place to reach your business goals can be very challenging, especially with budget considerations.
Solution: Third party manufacturers can help with the whole product lifecycle
A good third party manufacturer can help your product-based business with design, development and after sales support as well as manufacturing. You can tap into the considerable expertise they bring to the table without having to pay a premium to hire that expertise in-house.
Thousands of businesses rely on third party manufacturing so that they can concentrate on the business side of things.
Nexus IE work closely with you to build open and honest relationships and you remain as in control and involved in the process as you want to be. Our clients often see us as an extension of their team because we make it our business to support your success.
To find out how we can help with any aspect of your product lifecycle, contact us today.