In case you started off with a great idea, and now own a manufacturing business that has grown too big to control, you should take a step back and look at your costs and profits to make the larger company more effective in delivering value for its customers. Below you will find five tips on how to do it.
1. Get a Professional Audit
You might want to get a professional accountant or project manager to look at your company to see how it can be improved. If you started small, and your manufacturing business has already grown out of its initial design and space, you will need to change your processes to be easier to control. Larger volumes mean that the smaller machines are no longer cost-effective, and you need to replace them. Talk to a professional to get expert advice.
2. Outsource Delivery and Account Management
Getting more orders and dealing with multiple customers might take a little time to get used to. If you don’t have the staff and resources to manage delivery, order fulfillments, and invoicing, you can ask for help. Check out this calculator to see how much you can save on outsourcing essential shipment and order fulfillment processes in your growing company.
3. Buy Equipment Instead of Renting
Having savings in the company is a good thing. Instead of entering hire agreements, you might want to buy out your existing machinery, to reduce your monthly costs, whenever you have spare cash. Make sure that this move doesn’t compromise the cash flow in your company. You can reduce your regular outgoings and make your finances easier to manage.
4. Reduce Your Bills
More production means that you will be using more machines and employ more staff. Therefore, it might be time to look at ways of saving on your bills. Install and energy monitor and opt for green solutions in your business. Compare business rates for electricity and heating, and talk to different insurance companies to obtain quotes. You might be paying too much on your buildings and liability insurance, or could provide the health and safety training for staff in house, instead of paying a company to deliver it.
5. Offer Custom Designs and Implement 3D Printing Technology
One of the best ways of improving the profitability of your manufacturing business more profitable is to increase your prices by adding value. You could introduce custom designs and personalized products for companies, by investing in 3D printing technology. You might offer companies to get their own logo on the merchandise, or create custom designs that appeal to different industries. Look out for deals on customization tools and technologies, as they can help you accommodate unique customer needs and increase your profit margin significantly.
Whenever your manufacturing business seems to be suffering from growing pains, you need to look through your processes and costs to find room for improvement. Take advantage of new inventions, outsource processes to save money, and focus on fulfilling customers’ needs better than your competition.