When it comes to owning and operating a business, you will be challenged. It’s proactive to understand potential challenges you may face to better prepare yourself for decision making. Outsourcing manufacturing and fabrication will present you with some challenges you may or may not have faced before. Here are four common outsourcing challenges and some general solutions:
Challenge #1 - Creating Scalability
Every business owner that wants to scale struggles with the question, “How do I scale and keep expenses/costs low?” You can spend weeks, months, doing the math, researching, testing, and, inevitably, failing to create scalability in your business. As disheartening as it sounds, you may not have a scalable business. Nonetheless, if you manufacture anything, there is most likely an international factory that would be able to take on your current manufacturing obligations with room for growth. This means you can focus on your core competency, which may be sales, design, or otherwise and make the most out of your time.
Challenge #2 - Increasing Cash Flow
Every business needs cash flow. It’s the lifeblood of business. How many ways can you think of right now that could increase your company’s cash flow? One way is to reduce the cost of manufacturing, production, and/or fabrication. Another way would be to hire a CPA to dig into your books and find opportunities to reduce financial obligations and costs. As a business owner, it’s your responsibility to figure this all out. You can spend years fine tuning all of this, or you can begin to outsource pieces of your business, reducing overall expenses, and mitigating cost. You, then, are able to increase cash flow, which helps you grow and scale at a quicker pace.