Boosting profitability is the aim of every business. But for some, it can seem hopelessly out of reach, as you’re swamped in issues and tasks that seem to cascade in a never-ending blizzard of emails and memos onto your desk. But there are, in fact, some simple tricks you can pull to make your garment business more profitable – and this article focuses on the factory itself, where you’re producing your textiles and developing them into apparel. Read on to learn how to make your firm a little more profitable in the back-end of 2021.
Conduct a Review
With your aim set, it’s time for you to consider how you might be able to adjust your business to make it more efficient, less wasteful, and therefore more profitable. And the only way that you can make informed, smart decisions is to get informed about how your business is currently operating.
In this sense, you ought to conduct a review of your current processes. Where are there lingering inefficiencies, snags, and pain points? Which part of your production line is always causing problems and waiting material? And why are you paying more for the maintenance of some machines than the upkeep of others? Picking apart these questions will put you in the driver’s seat when it comes to making changes to your business that are designed to save you money.
There are a number of quick wins; however, that will take you no time at all to locate in order to reduce your overheads and boost your profitability. One example are the fees you’re paying to keep your factory going: rent and utilities, primarily. These may feel fixed and non-negotiable, but they’re actually anything but.
You can always reopen talks with your landlord or your utility company to seek cheaper fees. This is especially true of utilities, which are offered on a competitive market of players that are constantly attempting to win customers from their competitors. You can use a business energy comparison website to find the very best deal for your company, helping you to reduce your overheads and therefore boost your profits.
Finally, the profit-boosting buzzword of this decade will be automation. Garment factories are already likely to feature forms of primitive automation in the form of basic robotics, reducing the human labor you have on your production line. But that’s by no means to say that you’re engaging with the smart technology that will define the winners and losers in this decade.
Automation takes time. It takes research and investment, and it takes the hiring of technical consultants who can tell you where new types of hardware and software can make your factory faster, more efficient, and less energy-intensive, producing less waste and saving you more money. These new technologies will help you boost your profitability, taking your business to the next level and helping you outcompete the price points of your rivals.
Bear these three major tips in mind when you’re next looking to increase your firm’s profitability – reducing costs while investing in the technology of the future.