When it comes time to to prepare for the business boom that comes with summer months, manufacturing businesses have a lot of work to do. Not only do they benefit from the boost warm weather brings to any single industry, but to all the industries they manufacture products for. By taking the right preparatory measures, manufacturing business owners could find themselves raking in the dough big time.
Read on to learn the best 5 ways manufacturing businesses are gearing up for the—rapidly approaching—summer months!
5 Ways to Prepare Your Manufacturing Business for Summer ‘18
- Have a Means to Get Materials On The Fly
With such a high demand for materials and products across nearly all industries during summer months, you never know how often your customers will come to you with another invoice. Prepare your manufacturing company with capital that allows you to take on as many customers—and as wide a variety of customers—as possible.Your Business Financing Advisor (BFA) Recommends: Make sure you don’t miss out on any opportunity to make take on more customers than usual this summer with funding options like a business line of credit, which lets you make easy, quick, ongoing purchases, and only pay for what you use.
- Increase Staff
This one is a given, but it should be stated anyway, because many times manufacturing businesses overestimate the amount of work their existing employees can take on. Manufacturing is tough work. If you’re going to expand the capabilities of your brand with new machines and new job descriptions, then don’t skimp out on getting the extra hands you need to make it happen.Your BFA Recommends: Leave your loyal employees to the work they’re already comfortable doing—they already know the best and most efficient ways of doing these jobs. Hire new workers to specialize in your new methods of production, and watch the speed and efficiency of your business shoot up as a result.
- Prepare for Slow Payments
It’s no secret: customer payments to manufacturing businesses can be slow–frustratingly, infuriatingly slow. This can leave businesses with enormous gaps in cash flow that can disrupt their ability to purchase the materials they need to take on more customers, produce more materials, and can even mess up payroll management. One solution, as stated above, is to take on more customers.With more customers, comes more opportunities to schedule customer payments in a way that leaves no gaps in your cash flow, which is common for manufacturing businesses due to slow repayments. Until then, another short-term solution is to explore the many manufacturing loans available designed to bridge gaps in cash flow due to slow payments.Your BFA Recommends: If your manufacturing businesses is constantly facing gaps in working capital due to slow repayments, try using an accounts receivable line of credit to sell your invoices for cash for immediate payment.
- Expand Your Customer Base
There’s nothing wrong with holding yourself to the same customer base you’ve always had. They’ve become tried-and-true members of your manufacturing business’ circle, and you don’t know where you’d be without them. However, just like in life, it always pays to branch out—especially in the summer, when demand for production skyrockets across nearly all wholesale and retail suppliers.
Your BFA Recommends: This summer, try to expand your horizons by finding new customers that you can produce similar kinds of products for. They’ll love to see that you’ve held on to your happy loyal customers for so long, resulting in financial relationships with terms and repayment schedules that will be sure to make you smile in return. More customers=more channels of revenue flowing into your pocket.
- Expand Your Variety
As said above, if manufacturing businesses play their cards right, they not only have the chance to benefit from one industry’s seasonal boost in demand, but many. Diversifying the kinds of products you produce gives manufacturing businesses the opportunity to multiply their streams of revenue many times over. However, many manufacturing businesses carry tools, machines and supplies designed to produce only a few kinds of products. And what’s more, the workers they hire are trained to specialize in working to create a certain few kinds of goods.Alright, so… how are you going to go about doing this? Well to start, you can explore the different niches available for your machines within the certain line of products you produce. If your manufacturing business specializes in producing certain parts of a certain line of cars, then try to imagine a way it can produce even more types of parts. Or, even the same kinds of car parts your making, but for a different brand of automobile. Of course, this will mean going through a period of acquiring all the extra materials, machines and workers you’ll need to take on the extra work.Your BFA Recommends: In these cases, NBC’s Business Financing Advisors recommend acquiring small business loans, which are often the fastest, most cost-efficient kind of funding option for manufacturing businesses to solve any short-term problem, or grasp any and every opportunity to grow.
Now Is the Time To Grow Your Manufacturing Company
Summer’s already here. There’s no more time to prepare. Enough talk—it’s time to take action! Call the business financing advisors at NBC at (877) 482-3008, and ask them how they can hook you up with the capital to make it happen immediately! Or even better, fill out this 1-page, 1-minute application online to receive funding in as little as 24 hours!
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Megan is passionate about helping business owners along their journey - providing them with relevant content they can use in their day-to-day operations.