On television’s “Shark Tank,” real-life entrepreneurs pitch their companies to a panel of investors, who, for a piece of the business, agree to act as strategic partners to help launch the companies or get their products off the ground quicker and with greater margins.
Anyone launching a new product or service can get that same kind of value through contract manufacturing – and without losing any equity. Here are three key ways a contract manufacturer can benefit your “startup.”
Rarely does an organization have expertise in all the fields required to take a product to market. More often, someone has a good idea, but there are roadblocks as the company searches for the skills required for launch. A strategic contract manufacturer is able to provide product designs and correct and update existing ones so that parts can be purchased.
A common problem for many companies is the inability to ramp up production to meet growing sales. A contract manufacturer will have the ability to increase production to meet demand without siphoning available cash by maintaining a large manufacturing staff that might be unnecessary to support existing sales.
Access to skills and talent
Plenty of entrepreneurs go on Shark Tank seeking an investor not for the money but to find that strategic partner who can help do the things they are unable to do. A contract manufacturer can provide the same kinds of advantages through its vast network of expertise in various fields, including advanced areas like electrical, mechanical and engineering. An experienced contract manufacturer can provide the resources and expertise required to launch – and sustain – that new offering.