Manufacturing tends to be one of the largest and most expensive departments of many kinds of businesses. To be able to make your own products requires tools and equipment, materials, warehousing space and sometimes even vehicles, special licenses and more. For this reason, it can often be out of reach for smaller businesses, who have to outsource the work elsewhere, or purchase products that have already been made from a supplier instead. But is it at all possible to manufacture yourself as a smaller business?
Why manufacture yourself?
Manufacturing your own products puts you in control. There are pros and cons to outsourcing any department of your business, but one of the cons is that the work is then out of your hands. You’re having to trust another company to do the tasks for you, to a standard you’re happy with. Another reason manufacturing yourself can be a smart move in business is because it will save you money in the long run. While there are huge upfront costs to consider in most cases, once everything is in motion, you’ll save money compared with outsourcing to another company.
What do you sell?
Whether or not your small business can manufacture its own products depends hugely on what it is you sell. If for example you sell textile products, investing in a small workshop and some good quality sewing machines would be doable, you’d just have to find skilled workers who are able to follow your patterns accurately. In the case of things like plastics injection moulding, this can be set up cheaper than you think, as well as other kinds of machines that mass produce items. You need to work out what equipment you need for making your specific products, it could be anything from a vision system integrator to a lathe. From there, find out if you’re able to cover the cost of the machine and how much it would cost to hire workers able to perform the tasks. In some cases, you might be able to make your own products when you’d previously overlooked the idea.
What health and safety implications are there?
Speaking of workers, thinking about their health and safety is a top priority when you’re considering manufacturing your own products. As the boss you have a duty of care to all of your workers, but in factories and plants like this there are additional risks that you don’t get in other areas of work. Heavy machinery, the use of vehicles, power tools, chemicals and high heats all might be used, you need to ensure that workers are all qualified, have health and safety training along with training for their specific role. Be sure to follow all health and safety laws exactly, otherwise employees could be injured and lawsuits could be brought against you.
Setting up a manufacturing plant is a huge task, however it’s something that certain smaller and medium businesses could feasibly set up depending on what they sell. If this is something you’ve previously ruled out, perhaps you could think again.
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