Creating your own products could save your business a whole lot of money and also allow you to grow and expand. Compared with outsourcing, you have much more control when you’re manufacturing your own products as you’re not having to rely on a third party company. However, one of the most difficult elements of any business is manufacturing. The equipment and knowledge that you need to make it a success is extensive and there are lots of costs and considerations that you can’t overlook. However, it could well be worth it for you. Here are some questions to ask yourself first.
Can you find the right equipment?
Deciding whether to manufacture your own products will more than likely come down to what it is you make. If your business makes very technical items (for example electronics or other complicated items) then the machines you will need to manufacture them might cost more than you can afford. In some cases, this equipment might only be available to certain companies and you’d have to have your own machines created from scratch which of course will cost a significant amount of money. If the items you make are a little simpler, for example clothes or homewares that are made using a sewing machine, or parts that can be injection moulded than it’s much more likely you can find and pay for the right equipment to manufacture these things yourself.
Do you know how much it will cost?
On top of your equipment and machinery, there are lots of other costs to consider when you’re putting together your manufacturing plant. From set-up and safety materials to premises, hiring staff transportation and maintenance it doesn’t come cheap. You will need to work out exactly how much everything will cost before taking the plunge. The good thing about creating your own plant is that once these upfront costs are covered, you will save money compared with outsourcing right away. But it’s whether you can afford to get everything set up and in place. You might need to take out a business loan or even find an investor if you feel your business has something to offer them.
Have you thought about health and safety?
When it comes to setting up your own factory or manufacturing plant, health and safety is, of course, a massive consideration. The nature of this kind of workplace means that there are lots of very risks that you don’t find at other places of work. Machinery, vehicles, working at heights, heat, power tools, chemicals,and more can all cause serious injury, workplace related illness or even death if health and safety rules aren’t followed. Always provide good training to staff, and have the right insurances in place- just in case. As with any kind of workplace, you also have the regular ‘slips, trips and falls’ to bear in mind too so all in all there are a LOT of safety risks. Make sure everything is being handled properly to keep you, your staff and customers safe.
*This post has been written for Morning Business Chat by an outside source.
