We have all acted on opportunities, generally through related products and services to our main business.
The question is how quickly can you turn the opportunity into profit.
How mature is the market you are entering ?
Do we produce or outsource ?
A new department will take up space (& rates , utilities) , machinery capital costs, specialist labour and being beholden to those few employees in specialist roles.
How long will it take to fill the capacity you need ? Unfortunately, you’ll experience inefficiencies while going through the learning process of a new area.
We target each market sector from as diverse as Bread making to Printing.
Often the stages are the same :
• Produce a breakdown of sales and costs by department and product area – a good department head should know this and indeed be measured/rewarded on it.
• Calculate your capacity and time taken to process the work.
• Determine if the product/service is a core competence that should remain in house
• Model your company against a successful competitor, is it a realistic target to emulate them.
Once it is clear - the solution is to outsource :
• Select the suppliers first and try out their services, this can be done confidentially.
• Work can often be bought in at a cheaper direct cost, due to suppliers machinery, specific expertise, efficiencies and location.
• Redeploy the employees, or offer sales jobs – potentially production people can make some of the best sales people due to their product understanding.
• Sell machinery, free up space, sublet it or rent less , to generate cash and save on the overhead.
How we help in the printing industry ?
• Select from our list of registered suppliers (outside your local area) and ask for some referrals: www.thebusinessboard.co.uk/trade-directory/
• Pay only for the work done and no down time. It will give you set / clear margins.
• Increase your sales capacity and incentivise on success. More sales resource can only help turnover
• In addition to the numbers of dealers / resellers try and maximise the price by selling direct to end users on the kit exchange: www.thebusinessboard.co.uk/kit-exchange/
• Advertise to sub let your property FOC on the property pages
Some of the most successful printers don’t print ! They outsource their work and focus on the customers.
If you have a mailing, finishing or production department you are looking to de-commission, we have the exact team to help.
Please call 0845 337 3327