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Deciding Whether to Outsource or Keep Things In House

There are so many major aspects of running a business that people don’t take into mind when they decide to quit their nine to five and take to the world of self-employment.

Sure, business owners may make the process seem as simple as coming up with a product and listing it for sale online or placing it in a bricks and mortar store – and, as consumers, we readily believe this, putting little thought into the huge backlog of work that has gone into getting that product onto the shelves and into our view. However, as soon as you start your own business, you’ll soon become very much aware of the lengthy process that you have to undertake to get things to that point. One of the main areas that you’re likely to find yourself focusing on is manufacturing. Manufacturing is the process by which you take raw components and turn them into complete goods. There are two main ways to go about this: outsourcing, or keeping things in-house. Here are the pros and cons of each option, so you can make the most informed decision for your business needs.


If you are literally just starting out, it’s probably a good idea to stick with outsourcing when it comes to the manufacturing process. There are several reasons for this. Firstly, outsourcing means that you don’t have to fork out for expensive equipment or machinery while you are still unsure of your business’ direction. Many small businesses start out with a specialism in one area, only to realise that demand lies elsewhere. They then have to alter their area of focus to keep themselves afloat and start bringing in profit. You don’t want to invest in specialist machinery until you are absolutely sure what you are going to be producing and that there is a reliable, steady market for the goods you are creating. Outsourcing also means that you don’t have to take on an in-house staff member of your own. Becoming an employer is a huge responsibility and generally something that novices will put off until down the line when they are more settled and stable. Outsourcing also guarantees you quality for your money. The company you are outsourcing to are extremely unlikely to send you faulty, damaged, or imperfect goods as part of your order, as they want to maintain your custom. This consistent quality is exactly what you need to give your own consumer base faith in your standards and wares.

In-House Manufacturing

As you begin to expand, and once you have established your main business goals and areas of focus, it’s time to bring manufacturing back in-house. This will save you money in the long run, as you will be able to run things independently. You will also gain complete control over quality and make tweaks to products as time goes on. Whether you need embroidery machines, letterpress equipment, or Fileting machines, there will be an option out there that will suit all of your needs.

A Combination Approach

Sometimes, you may want to get the best of both worlds. This will generally entail producing some products in-house while using outsourced items if you like a particular company’s work, style, or ability to produce vast quantities of goods in short periods of time.

When it comes to manufacturing, it’s best to take your time and mull over the best steps for your business. This will prove much more beneficial than rushing into one approach or another.

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