Although you have probably been dreaming about extending your manufacturing business and longing for increased sales along with the booming profit margin, in reality it can be a job juggling nightmare. This is because you are going to have to part with a lot more money (especially in the manufacturing sector compared to most others) than you are getting in so that you can make the inevitable business leap.
#1 Outsource your departments
You will find that when your business is growing rapidly, there is a time when you will be hiring left right and center, your payroll will increase but you may very well be waiting for the extra funds from sales still to come in. This is when you should take advantage of those businesses offering their services on outsourcing bases. Departments such as HR, IT, and accounting are not the only departments or services that you can hire on an hourly, monthly, or yearly subscription, you can even hire outsourcing contractors just for certain projects as well.
#2 Offer remote working contracts
When it comes to taking on extra office staff, you can save a bit of money by offering your new contracts (as well as some of your existing ones) permanent remote working or hybrid conditions. This means that you will inevitably save on office space as well as the utilities that will be used by the workers in question and the equipment that they are using. This will free up space and money that can be used in other areas of your business.
#3 Hire equipment
Manufacturing equipment and machinery tend to be very expensive to buy and can leave quite a hole in your pocket before they start to make money for your business, and should they go wrong or break down there is even more expense. However, there is a cheaper option to rent – not only will the business that you rent your equipment and machinery from being able to replace the item should it malfunction or breakdown, the chances are they will be able to provide you with a much better quality of item then perhaps you were thinking of buying due to the price tag. In fact, in manufacturing, there are multiple machines used, not just on the factory floor but also within the warehouse environment, so by adjusting your budget for forklift hire you could very well find that you have enough money in the budget to provide your workers with enough machinery to go round so that they are not waiting for machinery such as forklifts to be free in order to carry on their work.
#4 Rent a sublet factory space
Renting a factory or at least jumping from a relatively compact location to a bigger one can be a startling difference in monthly costs especially if you aren’t needing that much space from the outset. This is where it could be a good idea to see if you can find a factory that is subletting an area of their factory floor that your business can rent from them. This means that you could potentially reap all the benefits of an existing business and larger property, such as physical security measures, parking, and maybe even a portion of their warehouse, while still keeping your outgoings relatively low.