Years ago, i read a book called Finding Your Niche, written by Laurence J. Pino. This book taught me how to determine my primary value-added and set up an efficient production process, design an infrastructure that will support my business while keeping expenses to a minimum, being sensitive to profitability and cash management. Discover more in this short article.When you have laid out your marketing and fulfillment services, think about creating profit from value. You create value from production! There are three elements to this particular component of your business. First, you must set up the actual production system. Second, understand your value-added considerations. Third, develop a quality assurance program.There are two ways to handle production: you can do it yourself, or you can get someone else to do it for you. Both can be profitable, and the method you choose will be based on your specific product or service.In the case of most intangible products, such as services, the decision is fairly simple: you or someone you hire, provides the service to your customer. In the case of a product, you have a lot of other things to consider. When it comes to producing a tangible product, there are three primary approaches you can take:
manufacture the item yourself from raw materials.
Buy an existing item and make some modifications to it.
Subcontract the entire manufacturing process.
Using subcontractors is usually the most efficient method of production. A thorough quality assurance program means satisfied customers who will buy from you again. Detailed subcontractor agreements are a key part of quality assurance. If necessary, seek out subcontractors in other countries and increase value.Always produce quality products! Have the right people and the right innovations. Put your creativity to work, give your customers valuable products and open up more favorable occasions for yourself.Business production is 100 percent processing. It is processing that adds the value to your product that makes it different, and it is the value-added that people want to buy. Value-added is to production what difference is to marketing. And you will price according to your value-added.The value-added of your product or service is the value that comes from the processing you provide. The value-added is the benefit you are offering your customers, and is usually what will convince your market to buy from you. Though value-added is a production issue and pricing is a marketing issue, you should price according to value-added for maximum profitability.Be confident, intelligent and independent in thought.Conclusively decide your value-added system and set up production process that is capable of achieving the desired results with the effective use of resources, time or energy. your Maximize your profitability while keeping your expenses to a lowest possible amount or degree.Copyright © Anyaele Sam Chiyson