Growing Your Small Business Through Overseas Production The Advantages of Keeping Costs Low
The internet has created a plethora of opportunities for the aspirating businessman. Crowdsourcing websites like GoFundMe and Kickstarter have allowed those with inspiration to turn their ideas into a reality. Social media sites have essentially taken care of marketing solutions for many businesses. In addition, the power of the search engine itself allows aspiring small business owners to look up answers to any question they may possibly conceive of. With so many booming businesses, many are destined to fail in some element; thus constructing an elegant and intuitive business plan will be the key to any successful new business in the 21st century. It is no coincidence then that almost 90% of U.S. goods arrive via cargo ships.
The Advantage of Overseas Production
The recession has taken its toll on many communities throughout the United States. It makes sense why many are such dedicated advocates of keeping jobs in the U.S., especially considering the rate of unemployment throughout the country. Yet despite this, many companies still firmly believe in producing their goods overseas. There are a number of advantages to this. First and foremost it is cheaper to do so; different regulations and employment standards mean that overseas producers are likely to undercut domestic producers each and every time — even when shipping costs are considered. Many businesses like having overseas producers as it allows them to focus on other domestic ventures; some may argue that quality standards are more difficult to enforce due to overseas production however. A third reason is the experience behind these companies; many already have the equipment and materials needed to suit whatever it is your company wishes to produce. Finally the efficiency of these overseas producers cannot be met in terms of their sheer production volume — this is why overseas producers have become a favorite of successful crowdfunding projects.
Producing the goods is but a single step in the process, as they must then be shipped internationally. The largest container cargo ship can carry up to 15,000 boxes and there are at least 20 million containers that are currently travelling across open oceans at any given time; this is done thanks to the nearly 50,000 merchant ships that participate in international trading. Perhaps the most grueling element of overseas production for businesses is the potential for delay: not just from the factory, but from the international docks, the domestic docks, and of course the inspection process. Once the shipment arrives at its destination, care should be given to inspect for damages and file a claim as some insurance providers will only give businesses a few days to do this.
Saving Money Through Discount Shipping Rates
The best way to keep costs down is a thorough analysis of international and domestic shipping rates. The very material you use to ship your products can help save money; since corrugated cardboard is so cheap it is chosen by around 90% of all producers in America. Be sure to pack a cu8shioning material to keep contents safe — this will open up discount shipping rates when dealing with private shipping insurance agencies. Keep in mind that the way goods are packaged can lead to discount shipping rates — shipments under 70 pounds per carton and shipped in cartons rather than on pallets are typically moved through small package shipping express carriers including FedEx, UPS, or DHL. For packages exceeding 3 pounds it is cheaper to go with FedEx rather than UPS and USPS. By following the aforementioned tips, you can secure the best discount shipping rates without compromising the safety and quality of your products. Secure shipping with insurance is the very driving force of today’s small business; be sure to do your research to find the next step to grow your small business into tomorrow’s empire.