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Should My Small Business Manufacture Its Own Products?


 By Business Desk


 Wednesday, February 14, 2018.


There's no doubt that manufacturing your own products is an enormous task, however it's not something that you should overlook entirely as a smaller business. While it might be easier to outsource, doing so takes a chunk out of your profits and in the long run it's definitely better from a financial perspective to do this yourself. There are of course a number of considerations to think about first- here are just a few of them.


The Cost

The very first thing that will spring to mind when you consider setting up your own manufacturing plant is the cost. For some small businesses, it just won't be viable. If you need high end machines, computers and other very expensive tech to create your products then chances are you're not able to cover these costs. However for other businesses its definitely a possibility. Making clothes for example will require machinery and skilled sewers but it's a cost you're likely to be able to cover yourself. Even things like plastic injection moulding machines aren't too expensive. You will need to take into consideration the cost of premises, equipment, storage space and then shipping and handling too. Work out if it's a cost you could cover as you could save yourself a lot of money long term.


Health and Safety Considerations

A manufacturing plant has numerous health and safety considerations to bear in mind, it's much more dangerous than your average shop or office workplace. Dealing with power tools, machines, high heat, chemicals and heights will all come with their own set of risks. Even things like Piezo transducer buzzers on doors to prevent unauthorised access to certain areas or alert workers of people coming in and out shouldn't be overlooked. Make sure you know all of the health and safety laws and practices you will need to enforce when it comes to your plant, get this wrong and you could end up with an accident or even death on your hands. Bad for your conscience and could lead to a serious lawsuit.


The Practicalities

Finally, there are lots of other things to think about when you're setting up your own plant. Location for example, you need to be in a place that has good transport links for raw materials to be delivered, and for the finished products to be shipped out. You need to factor in things like the cost and time of repairing and maintaining machines, as well and finding and training the best workers.

For certain types of smaller businesses, it's possible to set up your own manufacturing plant and worth doing so financially. For others, it might not be a possibility until later down the line when you have a much bigger profit. Either way, make sure you go into it with your eyes open and be aware of the risks and costs of setting up and keeping a plant running

Should My Small Business Manufacture Its Own Products?

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