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Scaling Up - Time To Build Your Business

By Business Desk

Saturday, April 29, 2017.

It doesn’t matter how long it takes, as long as you get there. Starting a business is one of the most challenging things you can do in life. You can easily find yourself working 100 hours per week covering every task from admin to accounting. Battling your way through the toughest times, you’ve not only managed to survive, but you’re now ready to build your business even bigger. Orders are flooding in, you’re recruiting more and more staff, and now it’s time to look to the long term future of your enterprise.

By now you’ve probably secured a number of contracts with suppliers to manage the orders from your customers. Perhaps now is the time to scale up your own operation and bring some of those services in house? There may be a need to plough cash in, but you must consider these moves as investments. The long-term picture could see your business saving thousands by expanding right now.

Manufacture is one of the most difficult areas to move into when you haven’t done this before. Using a third party company to produce your products means that a lot of the love, care and attention you want to give to your product is out of your hands. Moving a large scale production line in-house may require you to rent or buy a factory floor or warehouse. You may need to find conveyor roller manufacturers that can build the line you need for optimum quality control. Speed and efficiency are also important. Don’t forget - you’ll also be responsible for the hiring, training and safety of new employees here too.

Is it worth all the cost, time and energy? That’s for you and the accountant to figure out. Any investment like this should ideally pay for itself within five to ten years. Your projection figures are essential to the calculation to determine if it is financially viable for you. You might also weigh in the other benefits as added value. The control over the process and the speed with which you can make subtle changes to output could be enormously beneficial.

Have you only manufactured your products on a small scale before? It might be worth considering the recruitment of a factory foreperson with expertise here. This, too, may add further cost to your set-up. You may also need to purchase some vans and hire drivers so you can transport your finished goods to a depot or direct to the customer. Many courier services offer this provision too, sparing you the hassle and added cost of bad weather. Consider any additional benefits to doing this yourself. What more can you save?

Scaling up is something many start-up business owners dream of. So how do you know when it is time to make such a big leap? Your income and order history will be scrutinized should you need a loan. The loan will attract a large interest rate that will significantly raise the total payment figure of your investment too. Ask a third party to look over your projection figures and order history. This will help give you peace of mind that you’re ready to scale up your business.

Scaling Up - Time To Build Your Business

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