You’ve already done a major amount of hard work to get to the point where your startup is ready to expand; well done. However, there’s more challenges and logistics to consider further down the line, and it won’t be an easy road ahead. Therefore, it’s crucial that you carefully plan and prepare each of your next moves, so that you can expand as seamlessly and smoothly as possible and there won’t be any costly mistakes. Whether you’re just beginning the expansion process, or you need to sort out a new strategy as soon as possible (time waits for no business); the following are the areas you’ll need to take into account and organize thoroughly.
Whatever it is that your manufacturing; there will be suppliers and buyers to consider. Therefore, it’s vital that you build strong, reliable relationships with those who keep your business running, and ensure that everyone is made aware of your expansion plans. It may be that because of the new scale of your company, and what you will need; you have to change your suppliers, and work with businesses that will be able to fulfill your quota. Make sure that you research into any new supplier; their history and who they work with are great indicators of how you’ll get on with them and if they’re a suitable fit for your startup.
If you are able to stick with businesses that you’ve already been working with; great, your relationship with them will only grow stronger the more that you invest your money and time. However, it’s important to know when to cut the cord with a supplier or service when they are not performing as you’d wished. You should have the legal side pre-organized with your contract with a company so that ties can easily be broken and you can move on with minimum cost to your business. See what advice Winman have to offer on the importance of long term supplier relationship management and apply their advice to your startup.
Visit new providers and services onsite where possible; it’s the perfect way to see if you’re happy with how things are run. Ensure that you have a clear probationary period set in place from the start, so again, you can see whether you’re going to be a successful alliance. Bad alliances are going to be the downfall of any business, so this is why it’s essential to get the right relationships in place as soon as you begin your expansion process. Don’t be fearful of checking out competing companies and openly comparing their quotes; this will get you a great deal of what they provide, and save you money in the long run. However, don’t always go with a business just because they work out to be the cheapest; sometimes, paying a little more for something will ensure that you get a higher quality of service, products, and processes, so choose wisely.
You’ll already have a good idea of the equipment you’ll need to continue producing what you sell; now is the time to look into investing in new equipment, to expand your abilities, or even replacing what you already have. Purchasing new machinery can be one of the most expensive parts of expanding a manufacturing startup; however, it’s vital, as it’s the only way you’re going to be able to increase what you make and grow as a company.
You can release the equity in what you currently own so that you can invest in more assets; see what Equify can offer and learn more about your potential financing options. After working out your budget; invest wisely in equipment that will last and continue to make your money back for the years ahead. Again, you should remember that the cheapest deal isn’t always the smartest; spend wisely, but be willing to pay a little more to ensure that what you have is of the best quality.
When it comes to what equipment to choose; consider all your processes in detail and be innovative with your choices. Research into the latest products on the market and seek professional advice and opinions on what’s best to use. Think outside of the box when it comes to methods and process strategy; now is the time to put in place the very latest in manufacturing, so that your company’s machinery and operations will last you into the future of a competitive an ever-expanding market. Find out what your competitors are using and how success manufacturing businesses run their systems.
A larger scale operation will not be the same as your current situation; therefore, it’s vital that you’re willing to embrace changes, new equipment and operations, and develop the way that you run your company as a whole. You won’t be a startup for much longer, so start acting like a large business so that you can make a significant impact on the market and continue to work successfully.
Now that you know what equipment is coming your way; you’ll be ready to plan the premises you’ll need to expand your business. Size will be the main factor; you’ll need to ensure that there’s plenty of room in a warehouse, or factory setting, to house all of your old and new equipment. You’ll also need to consider the space you’ll need for storage, as you’ll have produced a larger volume of products than ever before. Bear in mind that if you plan to grow and expand further; your equipment and storage needs will grow as your business does, so it’s a smart choice to have a contingency in your new environment for further development. It’s always best to lease premises over purchasing one when you a fairly new business; this will give you more security should you need to downsize or move on in the future.
The location of your new workspace is another crucial aspect of your manufacturing business. You’ll be based around the concept of supply and demand, so access to your premises needs to be straightforward and easy to find. Take into account where your regular delivery drivers will come from, and where yours need to get frequently; this will help you make a decision on the area of the country you’ll need to reside in and what highways, airports, and shipping ports you’ll need to be near.
The land and premises themselves will need to have adequate access for large vehicles to visit, to drop items off and pick items up; so bear that in mind when you’re arranging your stock storage and equipment placement. Logistics are vital in any business, so make a smart plan regarding your strategy and where things will be. You will need to think about an onsite office area so that you can be close to the action and oversee what’s going on each day. You don’t need to micromanage; however, you’ll be able to make changes as quickly as possible if and when you see an issue in the running of your system. The first year of your expanded company is the teething year; so expect to be adjusting, moving, tweaking, and improving on a regular basis.
You’ll likely have to employ new members of staff; so ensure that your new premises have enough space for a team area to relax in and eat during their breaks. It’s also a smart idea to have somewhere that you can congregate for regular meetings, away from the noise of the machines, so that you can discuss and improve your business further.
As previously mentioned; you’ll need to take into account that you’ll have expanded your workforce to ensure that your production levels will rise. Choosing the right people for your company can be a challenge. Therefore it’s a smart option to have everything that’s been mentioned so far in place, ready for your new staff to utilize. Once you have the supplies, equipment, and space, you can begin to look for the right individuals for the roles you’ll need to fulfill.
Make a thorough list of attributes and qualifications that a person will need for each area of your business before you start interviewing people; this will help you filter out resumes, and you won’t waste time on hiring your team. Try to ensure that your new team members will fit in will your current workforce; you’ll want the people in your company to work as well as your new machinery, so it’s worth thinking about personality types and their work ethics.
Much like you did with your new suppliers; give your fresh employees a probationary period, to ensure that they can handle the workload and the new equipment. It’s always great to have staff who embrace improvements and changes in a business, and your company will be evolving in various directions as you expand, so it’s good to hire people that are happy to adapt. Team building and social activities outside of the work environment are an excellent way to tighten the bond between your workers, so organize a few get-togethers early on, to solidify the relationships in your business. As long as you and your staff are prepared for challenges, and are willing to adapt to change; there’s no reason that your manufacturing startup won’t expand successfully and you’ll be a force to be reckoned with.