​When new businesses fail, most of the time it’s due to running out of cash. Poor cash flow management is the nemesis of the more than 80% of new ventures that go out of business in the first year.

​It takes a lot of capital to get started, no matter what vertical or industry you’re trying to enter. One of the biggest costs of any new business is equipment: Fundera estimates that entrepreneurs should budget $10,000-$125,000 for their first year’s equipment costs alone. If you’re manufacturing a product, that range can skyrocket, which is why savvy entrepreneurs outsource their supply chain to manufacturing companies overseas. Here are some great reasons why outsourcing your product manufacturing can help your business survive its first year and grow profitably. 

​“Reducing costs is the number one reason why companies outsource. In fact, 59% of companies surveyed cited cost reduction as their motivation for putting this into practice,” writes Entrepreneur. 

Outsourcing to a manufacturing company leads to cost-savings across the board – not just in equipment expenses. As one expert outlines, “savings can be realized in reducing labor costs, overhead maintenance costs, and distraction and redundancy costs.” Many regions around the world offer lower labor costs and use their facilities to serve more than one company. This means you benefit from lower maintenance and utility costs in addition to wages and salary expenses. 

But, cost-savings are just part of the equation. Outsourcing also gives you the power to manage your budget and prevent overspending. Many manufacturing companies offer a pay-as-you-go model. This allows your business to grow at your own pace, test the market, hone in on your target audience, and check your business assumptions to make sure the demand is there. As a result, your startup can be proactive in managing supply to meet demand, lowering your deadstock and inventory management costs. 

​It’s unlikely that, as a startup, one of your first hires is someone with deep quality control and manufacturing expertise. Few new ventures have an in-house engineer or technician who can take a prototype from initial design to fruition. Even fewer new ventures have the resources to visit the factory, conduct quality control, and make sure all is moving according to plan. 

The right manufacturing company will bring expertise to the table to help you develop your product the way you had envisioned. These partners have more experience than your average entrepreneur in product quality, cost savings, and supply chain management. Some partners will hold your hand through the whole production process, sending you photos along the way, managing the logistics and compliance of shipping your order, and performing quality control so you don’t have to. These partners can add value to your team and take on work by which your core employees would otherwise be distracted. 

​“Outsourcing manufacturing to an overseas company equipped with the proper resources and personnel gives businesses of all sizes the opportunity to compete at the international level.  This approach allows smaller companies the chance to partner up with multi-million dollar production powerhouses, removing limitations on their potential,” writes one blog. 

When you have a good idea, it’s important to be first-to-market. Outsourcing to a manufacturing company cuts down on the time it takes to be the first one on the scene. Consider the process of manufacturing in-house: first, you have to find a space, then procure equipment, then materials and labor. By the time you’ve manufactured your first prototype, your competitive advantage has disappeared. Work with an existing factory that can take your plan and turn it into a product with speed and scalability. 

​Outsourcing your manufacturing allows you to move quickly and respond to demand as the market changes. “Prototyping and other production-related functions can be boosted to allow for innovation without draining internal resources,” writes one expert. “When a sudden uptick in demand occurs, outsourcing allows manufacturing operations to scale up rapidly.” 

For more mature companies, outsourced manufacturing is a quick and easy way to expand outside your core offering. If you want a low-risk way to test a product, order a small batch based on your initial prototype to see how customers respond. The right partnership will give you a window to change elements of your design throughout the process. As you develop and grow your product offering, your fixed manufacturing costs aren’t going to fluctuate dramatically. 

The Misfits Lair, a project by Zinnia Holdings LLC (c) ​

The Misfits Lair, a project by Zinnia Holdings LLC (c) ​

Today I received an invitation from Tristan and the Work for Impact team to be part of the initial group of Freelancers to make up the group that gets early access to ​the platform and a look at the first round of jobs. I would love you to be part of it.

Besides being another great channel for Independent Consultants and Freelancers to grow their pipeline, the platform has a purpose, they partner with Non-profits for projects that really make the difference in the world.

So far Amnesty International, Sea Shepherd, World Bicycle Relief, Plastic Oceans, along with hundreds of others are on-board for launch. This is your chance to work for some of the biggest charities in the sector!

​Work for Impact is a platform that seeks to connect skilled individuals with jobs solely from socially and environmentally responsible organizations, and nonprofits. 
All the jobs posted on Work for Impact will provide opportunities to work with ethical businesses and help contribute to a number of amazing causes around the world!

Why would you use Work for Impact?

• You get to work with a wide range of nonprofits and contribute to a number of amazing causes around the world.
• Keep more of your earnings with our pricing structure that is easy to understand and completely transparent.

Be a part of a larger community that’s working together to make a better world.

The way people are working is changing. Thanks to technology, geography is no longer a barrier that determines who you can and can’t work with.  As a result, over a third of the world’s workforce is now freelancing, and this number is continually growing. 

​The opportunities for today’s workforce are endless, and more and more people are taking advantage of this new economy in order to pursue their interests and find projects they’re passionate about around the globe

Interested in growing your business? There are a variety of ways to do so; but how do you know which strategy is right for your venture?
A market product grid helps companies plot out their growth strategy and visualize the risks associated with expansion. It can help key leaders make decisions around product development, distribution, marketing, and even hiring. The matrix was initially published by Harvard Business Review and has since become a core teaching at business schools all over the world. Here’s what you need to know about a market product grid, and how to use one to initiate your growth strategy. ​

 market product grid, also known as an Ansoff Matrix or a product-market expansion grid, is a tool that businesses use to develop a growth strategy by considering new and existing markets, new and existing products, and the risks of each possible relationship. 
The market product grid divides strategic outcomes by four major categories:

• Market penetration: a business creates growth by bringing its current products to existing markets 
• Market development: a business creates growth by bringing its current products to new markets. 
• Product development: a business creates growth by bringing new products into existing markets. 
• Diversification: a business tries to create growth by bringing new products to new markets. 

Why use a market product matrix? The goal is for the company to plan it’s existing products and new products – as well as where they’re going to sell each product – and learn about the risk associated with their plan. The grid is best used to understand your business growth options, but it won’t tell you what actions you should take. 

The simplest market product grid uses two axes: the x-axis for products (new and existing), and the y-axis for markets (new and existing). To use the matrix effectively, business leaders must have a firm understanding of where the best opportunities lie given the company’s current position. Recognize how many resources you can expend, as well as what your risk tolerance is. 
Typically, strategic leaders start in the market penetration quadrant, where they’re bringing an existing product to an existing market. This quadrant is considered the most obvious starting point for any company: it attempts to gain market share in an existing market. This approach “does not require the company to venture into unexplored markets and products. As a result, it provides a lower amount of risk because essentially the organization’s scope remains unchanged.” 
However, sometimes increased competition or economic and legal constraints prevent a company from pursuing further market penetration. In these instances, a company might choose to pursue product development: bringing a new product to an existing market. This strategy is one level up on the risk scale. It involves diversifying to new products, but not to new markets; often, companies mitigate this risk by using the same core technology, instead of developing entirely new products. Likewise, this strategy is likely to be more expensive as new talent and tools may be needed to create a new product. 
Some companies prefer to forgo product development in favor of a market development approach. Market development, bringing an existing product to a new market, requires an effort in planning and customer research. But it doesn’t need to be so complicated. A new market can be tapped simply by: 

• Distributing to a new geographical area; 
  
• Implementing new pricing to attract a new customer set; 
  
• Or, developing new distribution channels. 
  

Lastly, the riskiest growth strategy for a company is full diversification: bringing a new product to a new market. This risk, however, can be offset by the potential gains. Diversification inoculates a company against economic upheaval; when one market fails, or one product goes out of style, the company is protected. Diversification may have the highest investment in terms of research, distribution, and marketing, but it can pay off big-time. ​

A product market grid can help you answer this question. But, strategic leaders must factor in costs, risk, and their type of product or customer. A manufacturing or distribution partner can help alleviate some of the burden of expanding into a new market. Mature businesses will have different risk tolerances than a startup, and depending on your industry, it can be hard to find a place that isn’t already fiercely competitive. Do your market research to learn more. ​

The Misfits Lair, a project by Zinnia Holdings LLC (c)