In recent years, blockchain, bitcoin, etc. have emerged one after another, causing many investors and business owners to lose money. It has also affected the economic development of small enterprises and small factories, and has withdrawn from the market one after another. But is the reason that simple? Let's first find the root cause, how to run small factories and small businesses well.
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The following is an example of a garment factory:
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The "Three Dilemmas" of Small Factories
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1. Difficulty in employment
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The profit of garment processing is meager, and the difference between the off-peak and peak seasons is obvious. The wages of workers are generally not high. In addition to the shortage of local labor, it is difficult to hire workers. At present, most of the factories are piece-rate workers, of which about 70% are skilled workers and 30% are ordinary workers. However, some processes must be operated by skilled workers, and ordinary workers need more than one year of work experience to achieve proficiency, but now even ordinary workers are difficult to recruit. Obviously, the work efficiency is reduced, and so on.
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2. Difficulty in management
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Since there are not many local garment processing factories and few skilled workers, and there are many factories like the previous one, factories in other industries around are naturally recruiting workers everywhere. skilled workers. Over time, these workers thought they were the backbone of the factory and did not obey the management. This is also an important factor.
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3. Difficulty in sales
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The capital turnover is slow and the debts are large. All raw materials need to be purchased in cash, but it takes 1-3 months to receive the payment after the product is sold. Some old customers have to pay for several batches of goods, so funds are often very tight, and loans are of course indispensable. The market competition is fierce, the market scope is narrow, the products are low-grade, the price is low, and the high-end market cannot be entered.
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How does a small factory "transform"?
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order balance
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The factory basically determines production based on sales, and the ability to obtain orders lies with the sales champions themselves. It is basically predictable how many orders can be received in a year, so the factory owner should analyze his own orders and try to balance the orders as much as possible.
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Fewer contacts when busy, and more contacts when it is low. According to this situation, the positions of the factory are set, so that workers can work at full capacity or even overload. In this way, a group of skilled workers can be trained very quickly, so that the fittest will be eliminated. As efficiency increases, your costs decrease.
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In a word, the factory workers must be allowed to work. If there is unfinished work, they will naturally stabilize and their efficiency will continue to improve.
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Make products to the extreme
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Business owners must pay attention to products, personally preside over the development of a flagship product, make it the ultimate, and be different from others.
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Too many products of too many domestic companies are basically industrial grade, that is, the level of usability, but the market for such products is getting smaller and smaller in terms of trend. But foreign products, that are state-of-the-art, the key is that the future trend is like this.
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It's too hard to go from industrial to artistic. Even if it is a small detail, I don't know how much effort I have to pay; even if it is to add a satisfactory package, I don't know how much extra cost it will cost. But, in any case, this step must be stepped up.
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Solve the short board as soon as possible
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Recruitment is difficult. First of all, it depends on how much salary can be paid. If the wages of ordinary factories are sufficient, I believe that few people will go to Foxconn; wages depend on sales, and if the sales are good, wages will naturally be issued. It's not necessarily true that labor is difficult. Everyone has feelings, and Haidilao’s employees have a high sense of happiness. In addition to wages and accommodation conditions, they need to care for each other more.
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Sales are difficult, in terms of sales and capital flow. The case does not say how the factory is operated and sold. It is believed that the sales market may be relatively simple, or that there is no growth point in the business model. How to sell leather goods? In addition to reliable product quality, the design must also meet the needs of consumers. Everyone is a product manager, which means that good products are what users say, not what they think about. At the capital level, some existing financial models with a small amount of capital can be considered.
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For the bosses of enterprises struggling on the edge of survival, although their own quality determines their development prospects, high education is not necessarily high quality, but more depends on vision and vision. It's better not to have an entrepreneurial mentality, lower it a little bit, and be a craftsman.
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Pay attention to open source and reduce expenditure
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If a company wants to develop healthily and make money, it must increase revenue and reduce expenditure.
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Have you ever thought about letting the off-peak seasons that exist in the industry be stable in the future on your side, or are they all peak seasons? For example, to jump out of the conventional sales channels in the industry, in addition to cooperating with clothing stores and wholesalers, you can also try cooperating with enterprises, such as customizing the uniforms of employees of enterprises.
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Business owners can combine the company's operations to see if they can expand the original single product and sales. If you continue to take the low-end route and follow the conventional sales route like most of its peers, the company will be what it is today after suffering for a few years, and it will be a matter of time before it closes down. You can learn more and combine the entire industry trends to try some new marketing ideas.
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It is also necessary to think deeply about saving costs. Among the various expenses per year and month, procurement costs, marketing costs, labor costs, capital borrowing costs, etc., which can be reduced, which can be completely eliminated, and how much can be saved after reduction. money?
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Conclusion
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In fact, in the final analysis, the boss of an enterprise or factory plays an important role from beginning to end. All issues such as production efficiency, way of making money, source of purchases, etc., can reflect the quality of the boss’s personal accomplishment and the most important personal development. conjecture. This article hopes to bring advice and help to most factory owners.