Ah manufacturing, a job shrouded in both massive profit potential and difficulty. If you know any manufacturing business owners, you might see them driving their Bentley to work. You might see another one closing up the factory next door to the Bentley owner. Yes, the industry can be that much of a contrast. You either get it all, or you lose everything. Then there are those manufacturers who struggle on, just about breaking even. But that’s because they’ve made these mistakes you need to avoid if you’re opening a manufacturing business yourself.
All By Myself
While that’s the name of a great song, we have to say it’s not the best business strategy out there. It’s okay to rely on others to help your business along. We’re referring to outsourcing, and you should certainly consider it. If you do, you’ll put your own manufacturing company in a far better position on the market. You can outsource some of the processes of your business. By doing this, you’ll save on both the costs of labour and machinery. That is the definition of a win-win situation.
2) I’ll Pay You Back Next Week
This mistake should be avoided at all costs. Essentially, manufacturers are selling their products for nothing. Or they might as well be because it takes them a while to see any sort of payment. Late payment in the manufacturing world isn’t a new issue. It’s one of the reasons you see so many businesses go out of business. But now there is a cure to the disease with invoice factoring. Invoice factoring allows you to give away your unpaid invoices and get the money you need. Once you start being paid, you can give the money back that you borrowed. Your business will never be out of pocket again.
3) Our Company Isn’t Shady, Sign Here Please
Another crucial error in judgement is using the first company you find to supply your business with parts. This isn’t a wise move because you’re dependent on the use of SEO. SEO is the way that companies are found online. We guarantee it’s how you found this site. But you can’t trust that the first supplier you find when you type in the parts you need is the best. They could very well be the worst. You need to shop around for a company you can trust to deliver on time. CCTY Bearing is great if you need parts quickly from a trusted source.
4) It’s Not Easy Being Green
Well actually it is, and this isn’t a mistake that is specific to the manufacturing industry. A lot of businesses are making the same error. Here’s why you should avoid this pitfall. If you don’t look at ways to reduce your energy usage, your costs are going to be way up. As well as this, you’re not going to get a good reputation with the public. We all saw how they reacted to the car scandal. So, you should definitely do everything you can to cut your energy usage right down.
If you avoid these mistakes, we guarantee you’ll soon be driving a supercar, not shutting down shop.