Looking to move things forward in business, cut out the middleman and start increasing your profits? Doing so can cost significantly upfront but will save money in the long run. Here are some examples to consider.
Set up your own manufacturing plant
If you’re the kind of business that makes or sells products, then a huge portion of your outgoings will be spent on sourcing products or having them manufactured. A good way to save money would be to cut out the middleman and start making them yourself. However, there are plenty of considerations to bear in mind first. Initially, it’s the upfront cost you’ll have to consider. The cost of premises, equipment and staff will all be a huge expense, but on the plus side, once you’re up and running you will begin making savings right away. Making your own products gives you more control over your business since you’re not at the mercy of a third party company. But you will need to factor in health and safety, since factories are more dangerous than the average workplace, keeping everyone safe needs to be a number one priority. Since you will have people working at heights, with chemicals, power tools and vehicles such as forklifts.
Purchase your own fleet of ships
If you’re currently outsourcing your overseas shipping, this will be taking a good chunk out of your profit. If you regularly ship large items or items in bulk, it could make sense for you to look into purchasing your own fleet. This comes with considerable upfront costs, you need to invest in the ships as well as the crew, and not to mention maintenance. There are companies that create materials especially for protecting marine vehicles (you can find out more about that online), and you can expect to maintain each boat monthly. As well as preventing leaks, this will test batteries, service fire extinguishers, inspect spark plugs, change propellers and much more. Ships aren’t cheap things to maintain, but do weigh up the costs because there’s a chance that investing in them could still lead to a significant saving- especially in the long run.
Have your own software custom made
There is plenty of great business software on the market that you can really make work for you. However, as long as you’re using generic software, there will always be some workarounds that need to be made. If you have your own company software custom created, it can be tailored exactly to your business and processes. It can be made to work seamlessly from production to delivery, and can make you so much more efficient and productive. It won’t be cheap so would be considered an investment, but it’s genuinely something that can improve your business, help it grow and even fully automate some areas. All of which saves you time, money and hassle.
There are pros and cons of outsourcing compared with creating your own departments, so weigh up each and find out which would be best for boosting profits.