Arguably one of the most difficult elements of any business is manufacturing. Designing and creating your own products can be incredibly satisfying and profitable but there’s a lot at stake. The equipment and know-how needed to make it a success is extensive, and many smaller businesses choose to outsource instead of risk getting it wrong. However in the long run, outsourcing will work out more expensive and can cut into your profits. In some cases, manufacturing yourself, even if you’re a smaller business can be doable and the best option for you. Here are some things to consider if you want to manufacture your own products.
Getting Set Up
Whether or not you will be able to manufacture your own products largely depends on your budget and what it is your company wants to make. For very complex items it could be worth outsourcing, since the upfront cost of machines and labour to run the machines might be more than you can afford as a smaller business. In other cases, you might be able to pick up second hand machinery or invest in the tools and equipment needed. It could be drills, lathes, injection moulding machines, sewing machines- whatever it is needed to create the products you sell. Software and computer technology can help to make life easier in some cases, for example a PCB fabrication drawing can make creating circuit boards quicker and more accurate. Ideal if you want to manufacture items with electrical components.
The Upfront Costs
Creating a manufacturing plant isn’t just about the equipment and machinery. You will need to consider the premises, hiring staff, transportation, maintenance and repairs and more. Make sure you work out exactly how much you will need to spend to get started to see if it’s doable. Bear in mind that once these costs are out of the way, you will save money in the long run since you won’t have to pay another company to create your products for you. It could involve taking out a business loan or looking for an investor so you can get your plant off the ground.
Health and Safety
There are risks involved in any workplace, things like slips, trips and falls can lead to potential problems. However when it comes to manufacturing there are even more things to bear in mind. Power tools, machines, vehicles, high heat and chemicals all might be used which make for a more dangerous workplace. Make sure you have the correct insurances, and that staff are properly trained. Follow health and safety rules to the letter to avoid mistakes being made that could harm employees and put you at risk of lawsuits.
Creating your own products could save smaller and medium sized businesses a lot of money and allow them to grow and expand. Work out your budget and the logistics and see if it’s possible for you, or whether you would be better off outsourcing this area of your business.