| Built to Last! Save Money on Your Manufacturing Startup

Posted in Manufacturing at 5:00 PM by Loftis Consulting

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Of all the startup types out there, manufacturing is definitely one of the most expensive. There are a lot of businesses out there that you can actually start with little or even no capital. Manufacturing isn’t one of them!  So it’s vital that you find ways to save money. This doesn’t mean you should be cutting corners. But when you’re devising a business plan for this endeavor, you need to start thinking seriously about the ways in which you can make your capital amount go as far as it can. Here are a few of the ways in which you can do this.

 

Recycled Materials

The materials you use to make your products can come from a variety of sources. You need to look toward the more sustainable, recycled market. This can often work out much cheaper for you. Another thing you need to keep in mind is that possibility of you recycling your own raw materials. Manufacturing often sees a lot of excess material – make sure you find ways to use all of it.

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Second-Hand Equipment

You don’t have to buy all of your equipment brand new and at full price. This may seem like the obvious thing to do, probably because “second-hand” is often used as some sort of dirty word in business. But if the equipment has been checked and is working fine, then this can be a great way of saving money. You could look into getting some used compressors, for example, which can save you a lot of money on one of the most expensive items in any manufacturing business.

 

Outsourcing

“Outsourcing” is another word that is often treated as a dirty one in this line of work. But outsourcing is often a necessity for businesses that need to save money – and can also get you the best quality of output, as well. Outsourcing certain jobs brings you flexibility and saves you money, allowing you to get the job done without having to hire the amount of employees you would need to do it in-house. Remember: employees are the most expensive long-term investment you’ll make.

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The Factory Lease

Don’t be afraid to look for out-of-town factories that can often be much cheaper than factories in the city. But remember that these will often require you to pay more when it comes to shipping things to and from your workplace. Consider all of the costs associated with your property decision. And when it comes to the lease itself, you shouldn’t assume that you can’t negotiate a better deal. It’s often easier to negotiate a factory lease than it is to negotiate residential leases.

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Built to Last

Earlier, I wrote that you shouldn’t be cutting corners. By that, I meant that you need to save money but without sacrificing quality too much. Because you also need to start seeing these assets as an investment. If the things you’re buying aren’t going to last very long and can’t keep up with the work you need them to do, then you’re making a bad investment. In the long run, it can end up costing you even more money. So be very careful with your money-saving methods.

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