The evolution in online business has opened up new opportunities and new business models that are becoming increasingly popular. And for a reason. If you’ve been considering scaling up your business to take on global online sales, you may be wondering about the best way to source, manage and distribute products. What if you could produce and sell products “without having to invest in machinery, equipment or specialized product knowledge”? Contract manufacturing may be an option for you to grow your business.

Entrepreneurs and businesses of all sizes are leveraging the power of contract manufacturing to get their own custom products manufactured quickly and sell into global markets. Now may be the perfect time to get to know more about the many benefits of contract manufacturing for companies of any size, even for those with limited resources.

Product design, production and distribution

Contract manufacturing (CM) is a form of outsourcing between a manufacturing firm (known as contract manufacturer) and the hiring company to produce a finished product or parts. Usually, a company has two options. They can invest and purchase the machinery and factory to make the product themselves or hire an outside company (i.e. a CM) with already-established production lines to make it for them.

Contract manufacturers can handle many aspects of product development, production and distribution:

• Manufacturing and assembly of your product
• Design and engineering of your product
• Quality Control
• Management of your orders
• Management or consolidation of the supply chain
• Planning and coordinating shipping and logistics

The benefits of contract manufacturing

• Cost savings
  • Outsourcing your product to a CM means not having to waste capital on any maintenance and operational costs of tools, machinery, and equipment.
  • A CM lifts the burden of hiring, salaries, wages, HR, and benefits for the operators.
• Allocation of resources
  • The costs one can shave off can be allocated to other vital areas such as your marketing budget.
• Shorter lead time
  • Hiring a CM will allow you to leverage a CM’s existing supply chain network and expertise to provide you with faster lead times.
• Quality
  • Reputable CM’s will have quality control processes in place throughout the production process to improve your product’s production quality.
• Advanced skill sets
  • Companies can supplement their lack of manufacturing knowledge by working with a CM. A good CM will have established connections with raw material suppliers and have a better understanding of producing your product.
  • Experience can include different types of materials and properties, tooling, production lines, quality and testing required to create your product as efficiently and cost-effectively as possible.
• Engineering & development support
  • Depending on the scope and size of the CM, a CM may be able to provide you with development and engineering support to get your project off the ground.

Who needs a contract manufacturer?

While it’s true that large business partnerships seem to get all the attention, contract manufacturers can work with a business of almost any size. As long as you have a product, working with a CM is an option worth considering.

Large companies have the capital to invest in their very own production lines, so why do they often avoid this option? Simply put, setting up a factory requires a huge investment of time, money, resources and unnecessary risk. When billions of dollars are on the line, larger companies know they should be focused on activities that generate revenue.

It’s no coincidence companies like Apple, Nike, Black & Decker and are marketing powerhouses, and they allocate their resources on branding, innovation, and the constant churning of new innovative products and designs. They recognize that their core strength rests on innovating the next big thing.

Who can benefit from a contract manufacturer?

• Startups
  • Most businesses can benefit from working with a CM, including startups, which can take advantage of leveraging the resources of CMs without over-straining their own sometimes limited resources.
  • Developing an early partnership with a CM is a great resource considering they can act as an extension of your team from the development side of your business.
  • A CM can help develop and build a product more efficiently and economically and supply the extra boost that will allow you to launch your product quicker to the market.
• Companies looking to improve quality
  • Good CMs will have time-tested quality systems in place. If you have quality issues then you may want to consider switching to a CM.
• Companies looking to improve overall efficiency
  • Contract manufacturers have the resources, knowledge, and services that can improve your overall supply chain.
• Companies looking to improve their profitability
  • Factories work on economies of scale and are not set up to produce small quantities – a problematic situation for companies looking to launch a few products to test the market. For a company to achieve economies of scale, it is necessary to work with a CM who has the existing clients and vendors using the same or similar materials.
• Companies looking to scale up production
  • A company that is growing quickly will need a CM that is able to absorb higher quantities. A CM should be set up in order to scale up production during peak times or during a time of growth from the client.

The contract manufacturing process

After vetting and selecting the appropriate CM, the hiring company and CM will sign a contract to have the CM purchase and manufacture the products for the hiring company. Some of the details that should be covered in the agreement include:

• Manufacturing the product
  • The CM carries the responsibility to produce the hiring company’s product as well as coordinating any subcontractors of subcomponents and raw materials.
• Volume
  • The number of units purchased by the company from the contract manufacturer.
• Pricing
  • The price per unit based on the agreed upon volume.
• Quality
  • The quality conditions agreed upon between the company and the CM.
  • The CM supports the quality specifications established by the hiring company. The CM will utilize its quality procedures to carry out the requirements set and agreed upon between both parties.
• Lead time
  • A time mutually agreed upon to complete the order. A schedule should be included detailing the time the order is placed to the time the order is ready for shipment.

A CM can manage the supply chain for your products

• Managing the order
  • The CM will bear the burden from the day the order is placed to track, manage, and provide the hiring company with project updates.
• Orchestrating the supply chain
  • The CM will be responsible for coordinating the production and final assembly of the project along with all the vendors.
• Logistics
  • The CM may be contracted to take on the distribution and shipping plan and coordinate the logistics for the hiring company. This includes arranging everything from the freight of the product to the nearest port, warehousing, and shipping delivering the goods to end customers.

Entrusting the drawn-out process of manufacturing to a CM helps free up the hiring company’s resources and budgeting. This means more resources can be allocated to the most crucial part of any business – sales and marketing.

Weigh the risks, but consider the benefits too

The decision to hire a contract manufacturer may seem a little daunting as it transfers responsibility away from the company, however, the rewards can outweigh the risks, if it’s done correctly.

Carefully vet and perform due diligence on all possible contract manufacturers prior to making the switch. Perhaps most importantly, the best results come from forming a relationship based on trust and a long-term approach.

The post How you can use contract manufacturing to grow your business appeared first on Trade Ready.

Small business is bigger than you think. In many ways, the internet and social media have welcomed a new age of entrepreneurship. It’s easier than ever to start a business on an international scale, even from the comfort of your own home. Yet, that doesn’t mean there aren’t still rampant myths and misconceptions.

Today, over half of all Americans either work for a small business or own one themselves. Still, many small businesses continue to fail every year and even more fail to even make it off the ground in the first place. Despite more tech tools and trade agreements breaking barriers between countries and the global trade professionals within them, there is still a lot to learn about the realities of small business today.

In this article, we’ll shed some truth on what it means to own a small business in this global economy.

Myth 1: Only large companies succeed internationally

The biggest and most persistent myth in small business is that international trade is best left to the biggest players. Big-name businesses set the rules, and the smaller players can’t even get off the bench, right? Wrong. In fact, since 2006, the number of small business exporters is up 24.3% according to the U.S. Small Business Administration.

While it’s true there are challenges to selling services and products abroad, these are not insurmountable. New trade agreements make it easier for international trade to take place between small and mid-sized businesses, and this means expanding profits from the ground up.

Today, more than 70% of the world population’s purchasing power is outside of America. If you want to scale your organization’s profits, you need to scale your research and your market entry strategy.

It’s time to shed the myth that only large companies succeed on an international scale, since this is simply untrue.

We live in an increasingly global world, and it’s time for a new era of global small businesses to match.

Myth 2: Health insurance is challenging

One of the most pervasive myths in the United States in particular is that health insurance is too tricky for small businesses. This is especially true for businesses that conduct work internationally, perhaps hiring employees abroad on a remote basis. As a small business, it’s hard to balance this amongst your other expenses. Can you even afford the expense of health insurance, and is it worth all of the trouble?

In short, yes you can afford it and yes it’s worth the trouble. If you have over 50 American-based employees full-time, you’re required to provide insurance thanks to the employer mandate. Offering insurance is an effective way to boost employee morale, appeal to talented job seekers and build a positive work environment with healthy workers. Not to mention, you need health insurance yourself to guarantee you’re equipped to keep working years into the future.

Not sure where to start your search? Using licensed insurance agents with experience in business health insurance is be a great place to begin. These professionals can lead you down the right path in terms of finding a plan that’s right for your employees, budget, and scalability needs.

Myth 3: Being first is always best

With small businesses, there’s a common belief that you need to always be first to the market to succeed. While it’s true that being first with a new product or service has its advantages, don’t make the mistake of thinking this is always the most effective strategy.

In reality, improving upon a product or service that already exists in the market, or offering a similar product or service at a lower price, is usually the most successful avenue.

What exactly does this mean? Let’s take a well-known example for a ride. While Netflix might have been the first business to offer streaming services on an international scale, they mainly left this system as-is. Their competitor Hulu, however, stepped in with a similar service but advanced features like live TV, local channels, and more. Hulu is also priced at $5.99 USD per month, as opposed to $8.99 USD per month like Netflix. As a result, Hulu grew its subscriber base by 8 million people in the U.S. in 2018, compared to growth of 1.1 million people in the U.S. by Netflix during that same time.

Don’t let the myths hold you back from small business success

It’s time to break free from the many misconceptions that surround small businesses in international markets. Don’t let the fear of competition with the big players keep you from trying in the first place. Small businesses, in fact, have many advantages over the bigger ones.

First, they’re better equipped to reach their audience more effectively, since they operate on a smaller scale. Next, they can more successfully address employee needs by investing in key things like health insurance. Finally, they’re in a position to innovate with new technology through their products or services.

Let’s defeat these myths once and for all. Small business is big business, and it’s time to prove it once and for all with your own goals.

Ashley is a writer from Studyclerk and super-connector who helps businesses find their audience online through outreach, partnerships, and networking. She frequently writes about the latest advancements in digital marketing and focuses her efforts on developing customized blogger outreach plans depending on the industry and competition. You can learn more about her here: https://studyclerk.com/research-paper-writing.
Original article: https://tradeready.ca/author/ashley-lipman/

The post It’s time to overcome these 3 common small business myths appeared first on Trade Ready.

To grow your business globally today, you need to understand why many traditional sales tactics are not working and how to develop an effective sales strategy that works.

With increasing competition among businesses every day, a well-crafted sales strategy is necessary for successful business growth. Below, I’m going to share some expert strategies that you can deploy to grow your business sales now.

1. Increase penetration in your existing markets

Why do so many businesses stick to selling only within their existing market? All the business systems are set up, the team knows and understands what is expected, you have a good understanding of who your customers or clients are, and even have a niche market share.

Considering that your business has a good reputation in the market, you need to capitalize on this further. Find more ways to further penetrate your current market and create a stronger foundation for your business. Understanding your current customers by analyzing existing data will help you make the right decisions, so you can improve your productivity and strengthen your business performance and relationships.

2. Introduce new product lines

Thriving in global business is not easy, especially for businesses that sell products to consumers. Your existing products alone may not be the key to sustained long-term growth. Smart businesses re-evaluate their product lines and take a deeper look at their customer needs and expectations to come up with better ways to please them.

Adding new product lines such as promotional products to complement your existing offerings is a good way to improve customer loyalty.

Consider re-examining your product names in your current markets, give your business logo, product branding and packaging another look, and make sure that everything about your product line conveys your core business message. Broadening your product line also opens up new sales opportunities in your existing market.

3. Open up new channels of distribution

Product distribution can be a headache for international businesses. Even with existing distribution channels, businesses can easily stagnate when sales decrease by a significant margin. If you want to grow your business and increase sales, you need to aggressively open up new channels of distribution. For instance, Marlin Steel, a wire product and metal fabrication company, sold steel products to large factories and pharmaceutical companies for years. But over the last decade they’ve added catalog houses to their distribution channel.

Adding a new distribution channel helped them smooth out erratic purchases from their existing client base and increased their sales. Finding new channels for your business will not only strengthen your brand globally, but will also make your business less vulnerable to the ups and downs of your existing distribution channels. Businesses should maintain quality in delivering or distributing their products so they can keep sales coming.

4. Offer new services to your existing clients

Offering quality services on top of existing products can be the key to strengthening the bond between you and your clients. If opportunities are available, introduce a new line of services geared to both solve problems for your clients and make your business more profitable. Any service that meets the needs of existing or potential future customers will enable your business to see increased sales and improve client relationships. Ask yourself what new, unique services you can offer that will bring more leads and sales for your company.

5. Look out for new client segments

Focusing on new client and market segments can be the key to powering strong growth. Businesses need to be more observant of market trends and changes in how their clients interact with them and other businesses, including competitors. What other products or services are your existing clients getting elsewhere that you could provide for them?

By broadening your client segments, you open opportunities for your business to grab additional clients for your existing or new product lines and services.

Especially when your prospects already have confidence in your brand, it can make for easier growth, improved customer interaction and more sales under the same roof.

6. Target new export segments

Most companies, whether in the U.S, the UK or even Canada, don’t export at all. This oversight leads to massive missed opportunities overseas that can rapidly grow any business. Even companies already exporting may be missing new opportunities in other markets they haven’t considered or worked in before.

If you’re planning to go global or want to increase your international sales, targeting new export markets is a great way to power growth. Over 30% of respondents in a recent National Association of Manufacturers study are already deploying this strategy to drive growth and increase sales.

Bottom line: never stop looking for new opportunities

Focusing on ways to increase sales alone will not guarantee successful business growth. Smart businesses that want to gain an edge in global markets have to constantly uncover the best practices for improving product and service quality, streamlining delivery and distribution channels, and strive for improved productivity, innovation and growth.

Have any of these tactics or others proved successful for you? What advice would you give to others looking to use these tactics?

Ashley is a writer from Studyclerk and super-connector who helps businesses find their audience online through outreach, partnerships, and networking. She frequently writes about the latest advancements in digital marketing and focuses her efforts on developing customized blogger outreach plans depending on the industry and competition. You can learn more about her here: https://studyclerk.com/research-paper-writing.
Original article: https://tradeready.ca/author/ashley-lipman/

The post 6 international sales tactics to grow your business appeared first on Trade Ready.

• New product that opens an entirely new market for the company and meets a new consumer need
• Product modification that improves the product, engages new consumers and re-engages existing consumers in the market
• Product that replaces an existing company product
• Product that significantly broadens the market for an existing company product
• Existing/old company product introduced in a new market
• Existing/old company product packaged in a different way
• Existing/old company product marketed in a different manner

Product development and adaptation is a continuous process. It requires full liaison between the manufacturer and the agent or end user to ensure the product meets market requirements and profitability is maintained.

In seeking to satisfy new markets, companies have several options available, including:

• Selling standardized products as is, i.e. the same product and promotional message
• Modifying products for specific safety and functional requirements, e.g. for some countries or regions, product power requirements may need to change from 110 volts to 220 volts
• Designing entirely new products for foreign markets
• Incorporating locally induced differences into product offerings, known as glocalization

Different types of products can serve different purposes. For example:

• Innovative products are a means for companies to enter an existing market.
• Additions to existing product lines supplement and expand options for consumers.
• Improvements or revisions to an existing product line can improve market share and re‑engage past consumers.
• Repositioning products allows companies to target new markets.
• Product development and adaptation can be used to reduce production costs and sometimes reduce prices for consumers when a similar product can meet the same needs at a lower cost.

With these goals and strategies in mind, here’s 4 of the many examples of how adapting products or developing new ones has paid off in spectacular fashion for companies worldwide.

1. The evolution of the razor

The cartridge safety razor was first introduced in the 1960s. These razors were a popular and cheaper alternative to the electric razor introduced in the 1930s. Made from moldable plastics, the cartridge razor contained a disposable, replaceable cartridge head. Each cartridge generally held two blades and would slide on and off a straight plastic handle. This version is the basis for today’s disposable razor.

The cartridge of a modern safety razor generally has three to five blades, with lubrication strips on either side of the blades. The handle is contoured to fit the hand; some vibrate, while others have a ball in the handle and a flexible cartridge to better glide over facial contours.

These product adaptations have taken the simple safety cartridge razor to a higher-end product without losing the usefulness of the first simple model.

2. So much more than just “a coffee”

Consider the American coffee company Starbucks. The service provided by baristas making and customizing Starbucks beverages for the desires of individual customers is an integral part of customers purchasing the company’s products. In 2015, service generated USD 19.2 billion in revenue for Starbucks.

Starbucks entered the market offering a coffee shop experience. The company sells its signature fair trade coffee perfectly ground, brewed and served in their coffee shops all over the world. In 2016, Starbucks had baristas serving coffee in fifty countries. In terms of continued growth, it expects to have more than 37,000 stores by 2021.

Starbucks continues to innovate both in terms of its products and its brand experience.

Starbucks offers coffee-based drinks, such as lattes, as well as teas and smoothies. It also sells coffee paraphernalia, such as mugs, coffee beans and coffee makers. Customers can also buy food products. Starbucks uses these associated products to enhance its coffee service and offer more to customers with a “one-stop-shopping” strategy. Customers can go in for coffee and also have a snack or lunch. Starbucks has also expanded its home brewing by selling beverage pods for consumers using single cup brewing systems.

3. Going “glocal”: It’s the same, but different

In business, the term “glocal” describes activities that take into consideration both local and global concerns. There are many examples of brands that enter into emerging markets by adapting their products to local tastes, attitudes and values.

For example, McDonalds, a brand built on providing high quality beef products, has adjusted its menu in India, where the cow is considered a holy animal. Its localized menu items include McAloo tikki burgers (mashed potato patty) and Chicken Maharaja Mac with Indian spices.

4. Wait, you can do that? The future of manufacturing

A Dutch design company called MX3D is collaborating with a variety of partners, including Autodesk and the Amsterdam City Council, to 3D print a metal bridge over one of the city’s canals.

Designer Joris Laarman says the project will free the world to think about craft in new ways.

“I strongly believe in the future of digital production and local production, in the new craft,” says Laarman.

This bridge will show how 3D printing finally enters the world of large scale, functional objects and sustainable materials while allowing unprecedented freedom of form.

This is not the only project of its kind. In 2016, Michigan Technical University built an open-source 3D metal printer for under USD 1,000; and in the 2015 “Launch Tennessee Master Accelerator Program”, a startup called Branch Technology took inspiration from nature to develop 3D-printed walls for homes and buildings using a “cellular fabrication” process.

The post Learn to adapt your products from these 4 success stories appeared first on Trade Ready.

Product customization offers customers a chance to be a part of the production of a product. Customers can express their own personal preference with the products they helped design.

Customization helps organizations differentiate their products from their competitors.

With all the product and price comparison applications now available, there is greater price transparency, allowing consumers to easily compare product features and make sound purchasing decisions.

The updated FITTskills Products and Services for a Global Market course takes an in-depth look at how improvements in technology and the surge in online retailing is allowing mass customization to re-emerge as a new trend in sales and marketing.

Resurgence of mass customization

Examples of mass customization offered by retailers in the last decade include restaurants allowing patrons to select their side-dishes from a variety of choice, baristas preparing Starbucks specialty coffees according to customer preferences, and car dealerships customizing automobile orders with specific colour, lighting, technology, and towing packages.

Previous attempts at mass customization encountered barriers due to lack of choices, slow delivery timelines, inventory issues, and high costs.

However, advances in digital technology through the use of configurators or configuration systems are reducing some of the issues mass customization previously faced. Configurators are digital programs allowing for the visualization or representation of different product variations and pricing. For example, a t-shirt on a retail website can be shown in different colours or with an added logo, or furniture and paint colours can be added to a picture of a person’s living room.

Technology and tech-savvy consumers have created an environment favourable to mass customization.

Favourable environment for mass customization

Almost on-demand production has created more efficient flow between a customer’s co-design effort and fulfillment by production operations using flexible, digitally controlled manufacturing processes.

Overnight or rapid small package distribution integrates digital tracking systems, informing customers when their order has been processed and sent for delivery, as well as the anticipated delivery date.

Just-in-time and other cost-saving inventory management strategies use information technology to cut the costs of inventory. Additionally, these strategies allow supplies and inventory to be managed more cost-effectively.

Furthermore, customers are using online shopping platforms more and more. As these sites become more advanced and build a greater capacity, they become easier to use and more cost effective.

The Millennial factor

Millennials are the current driving force of mass-customization.

Millennials are an enormous commercial force, commanding force, commanding both trendsetting power and tremendous spending power.

Current research indicates millennials are more willing to shop, bank, and communicate online. They are also consumers with a greater interest in customizable products. Research shows there is a sense of accomplishment or status when customers co-design their purchases. This is seen as a ‘consumer-added value.’ This ability to have input into their purchases translates into a willingness to pay more and make repeat purchases.

The tracking of customization also provides valuable information about consumer trends and can lead to product adaptation to better meet the market’s interest.

Customization boosts customer loyalty and engagement. Successful organizations that capitalize on customization follow five simple rules.

1) Know what you want

Organizations need to be clear about the strategic value they hope to derive from their customization efforts. For example, will customization be used to engage with customers, generate direct profits or meet another strategic goal?

2) Know how much customization needs to be offered

Customization can range from the addition of a monogram on a shirt to entirely customized suits. It is important to understand the product and the consumer to determine the degree of customization required. Remember, customers do not have to co-design every element of the offering. In some cases, it could involve simply choosing a custom combination of existing products.

3) Keep it simple

It is much easier for the customer to be presented with a template, e. a starting point with parameters; a totally blank canvas can be intimidating. The organization has to have a draw that leads the customer into a desirable level of customization. The design process should be as simple as pushing a button, but with some limitations. Too many options can lead to no purchasing decision, and too complex a process leads to frustration. Processes, such as returns and repairs, must be clear and easy for customers to access.

4) Encourage sharing

Considering the customer base that would invest in customized purchasing, it is important to include the ability to share creations on social media, such as including the capability to post to Facebook or Companies can create galleries of customers’ designs, promoting their customers, and the capacity of their products for individualization.

5) Enhance the customer experience—don’t disappoint

The customization process needs to be a satisfying, enjoyable experience with seamless returns in case the product doesn’t meet customer expectations.

Although not all online shopping is global, the medium is spreading the experience of mass customization. On a global scale, mass customization allows consumers the opportunity to reflect their cultural, social, and personal preferences. At the same time, it allows manufacturers to ensure their products are compliant with the regulations of various foreign markets. Mass customization affords organizations opportunities to forge relationships with customers beyond a simple purchase or comparative shopping decision.

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