The Economic Department of the National Court Register is an institution that every young Pole competing in a marathon must face. The time of establishing the simplest company is directly proportional to the length of the name of this office and does not constitute at all the difficult beginning of a pleasant run. The same applies to the opening of own production. Under this one innocent word is the need to create a detailed strategy, provide technological base, acquire and train staff, as well as the risk taken almost at every step. How to start the production?
Every year, the World Bank publishes the Doing Business flagship ranking, where a higher place means a relatively easier way to create and maintain a company on the market. The position of leaders for years has been occupied by New Zealand, Asian tigers such as Singapore, South Korea and China, while Europe at the top of the table is represented by the Scandinavian countries. In 2018, out of 190 examined markets, Poland ranks 27th. It sounds satisfactory, however, among the 10 criteria, the ease of starting a business and opening the production are distinguished. If it was him who would decide on the final result, Poland would take 120th place, where we would be closer to African countries rather than those aspiring to become the leader of Central Europe.
At the beginning, the strategy is necessary, that is made of all the decisions to create an advantage over competing companies. The design of new products is progressive and depends on the construction and technological preparation of production. The first one should answer two main questions: what is worth creating and what specificity of products will be the best. The second stage is to determine how and with what methods we want to produce a given product. Enterprises compete with each other by developing production lines, introducing new models to the market or increasing their availability. To make this possible, the third stage is necessary, creation of an appropriate background creating innovations and a system of cooperation with research units.
Barriers to the growing company
Let us assume that the owner of a small or medium company decided to open his own production line. In addition, thanks to a team of engineers, which he pays for himself, he has to make a great project that would make his product much more competitive. In this regard, he would also like to increase his production capacity. And here he goes to the barrier. The introduction of new ideas and expansion of production for developing companies are difficult, because it is the largest that is easier to obtain funds for the purchase of additional equipment, new materials or system modification. Limited technological facilities and production capacities can be an obstacle even for the best project, which the company is not able to launch on the market for seemingly simple reasons. Among other things, it is worth considering at the stage of determining the strategy whether it is not better to focus on the main activity of the company, and give the outsourcing process itself to the production process itself.
The most important thing: the human factor
Specialized personnel are the basis for the operations of each company and maintaining it on the market. The main task of the recruiters is to acquire qualified employees for the company and keep them in an efficient production system. Apart from employment costs, it is also worth asking whether the owner of a growing company easily fights for the best candidates with large corporations. To employ this one and to train it is more important. Raising professional qualifications means that the staff work more efficiently, which optimizes time, quality and labor costs. However, there is another side that shows the risk that the owner takes with employing a new person. A significant turnover is visible in the production sector, which means that the employer should be aware that the cost of replacing a retired fellow is the equivalent of his annual remuneration.
Opening your own production is a step in which the business owner usually sees a milestone – something that is supposed to bring the company to new, faster tracks. However, this is a process that will knock out many businesses without proper substantive and financial preparation. It is worth determining at the very beginning whether this is the right time to take this step, or it is better to outsource production to the contract manufacturer and opt for alternative solutions.
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