Business growth is a hard thing to control. You can’t exactly stop customers from buying your products, but it’s difficult to tell whether your business is currently just a fad company or if you’re actually providing products to a growing audience. Whatever the case, your business growth needs to be taken seriously and if you aren’t preparing your workplace and assets for that growth, you could become and irrelevant business within just a short and painful week.
Preparing for a factory
A factory is one of the biggest steps a business can take when moving on from a small startup to a large corporation. First, you need to think about the advantages and disadvantages of outsourcing your production as opposed to buying or building your own factory. Then you have to think about advanced machinery, tube conveyor systems to ferry goods around your factory, and even hiring a foreman to help the operation run smoothly. It goes without saying that there is a lot to think about, but there are some simple steps to help you break it down.
First, identify if your business is going through a legitimate growth or if a famous celebrity recently tweeted about your company and you’re just going experiencing a short uptick in social media engagement and popularity. If your products are being sold to a variety of customers and you’re actually providing something useful to your customers, then it’s a safe bet that you need to grow quickly. If you’re just selling your products because it’s a trend (fast fashion, for instance), then you might want to hold off on expanding to a factory.
Switching to a factory isn’t an overnight process and it’s nothing something that can be negotiated within a month, so you have plenty of time to decide if it’s worth the extra work and effort. However, if for that month or so of negotiations you’re unable to cope with orders, then it’s a good sign that you should be expanding your operations.
Deciding between outsourcing and building your own
Let’s not take this lightly; building your own factory is extremely expensive and you’re going to need a lot of professional help in order to make it work. The only time you should seriously consider making your own factory is if you plan to diversify your products and make something new, or if you need total control over all of your production.
If you don’t need that much control or if you’re only focusing on a single product, then consider outsourcing your production instead. You’ll need to negotiate with the factory owner and you might even run into some logistical problems due to the location of the factory and how you plan to source the raw materials, but it’s a great way to get large batches of a product ready to sell.
Just keep in mind that you’ll need to monitor the production line no matter what option you chose. The last thing you want is to mass-produce your famous product, only to find that the production line has compromised quality for the sake of speed because you might lose more than just a few customers.