Success in business is all about revenue growth, and the uniform industry is no exception. If you aren’t expanding your number of clients and the amount of orders they send you, you risk being supplanted by more dynamic competitors. But increasing your revenues and market share isn’t easy, especially when your current staff cannot handle additional work. You could invest in more employees and capital equipment, but that would sap your funds and risk disrupting your business. By outsourcing key functions, you can expand revenues without the cost and disruption of expansion.
Overview of Outsourcing
Outsourcing is the act of relying on other companies for certain activities that are necessary for you to do business. Outsourcing is of great value in the uniform industry, where lots of supplemental work has to be done before you get to the point where you can sell uniforms. If you hope to expand revenues without raising your operating costs, outsourcing is a great way to do so, as it saves you from:
- New Hiring- By outsourcing key uniform production and distribution functions, you save yourself from having to hire new employees. You thus don’t have to spend any time or energy looking for job applicants, vetting them, deciding whom to hire, and onboarding them for your company.
- Capital Investments- One of the greatest benefits of outsourcing is that it spares you from investing in capital equipment. Instead, you pay for access to your outsourcing partner’s machines. Uniform companies frequently rely on equipment to manufacture and customize their gear. If you don’t have the funds to invest in new machinery, outsourcing lets you expand your operation without paying anything upfront.
- Expertise Issues- Since you specialize in selling uniforms, you may not have much expertise on creating, customizing, and distributing them, leading you to perform those functions less productively and waste time and money. But if you outsource them to companies that do have the necessary expertise, you spare yourself a host of costs and problems.
Outsourcing is particularly valuable if you intend to expand revenues by attracting lots of small uniform orders. This strategy leads to relatively unpredictable demand, and often requires you to make many customized changes to individual uniforms. By outsourcing key functions to parties that specialize in them, you can handle such precise and unpredictable demands without issue.
As beneficial as outsourcing is, you should only do it with companies you trust. Thus before you outsource some essential activity, make sure that the company you’ll be relying on understands your business and your industry. Evaluate their relationships with suppliers and past customers, making sure they do right by all these parties, and determine whether they’ll do everything you expect from them. Only when you’re sure you can trust an outside company should you hand over critical functions to them.
To learn more about outsourcing and other strategies for cutting costs and boosting revenues, take a look at SmartBuy|TK today.