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How Can Small Factories Make Big Enterprises?

2016/7/25 18:48:00 34

ClothingProductsRaw Materials

Wang's home runs a small 10 years old. clothing The processing plant has annual sales of about 7 million yuan, more than 1000 square meters of factory buildings, 25-30 workers in the off-season, and 40 people in the peak season. product All domestic sales. Because of its small size, it is impossible for professional managers to rely on family management. Now it is mainly managed and arranged by Wang's mother and aunt. Wang is responsible for product development and customer contact.

  Three major problems of small garment factories

1, recruitment difficulties: clothing processing margins are thin, and the difference between the peak season is obvious, the wages of workers are generally not high, coupled with local shortage of migrant workers, workers are very difficult to invite. At present, most of the factories are piecework workers, of whom 70% are skilled workers and 30% are ordinary workers. However, some processes must be operated by skilled workers. Ordinary workers need more than one year's work experience to achieve proficiency, but even ordinary workers are hard to recruit. Wang once wanted to attract workers through raising wage income, but the factory only had 5%-10% profits, and the space for wage rise was not large enough to attract enough attention.

2, management is difficult: because local clothing processing factories are few, skilled workers are few, and factories in other neighboring industries are recruiting everywhere, and workers are not worried about work. Over time, these workers thought they were the backbone of the factory, and they were not very obedience to management. Wang also tried to set rules and regulations to restrain employee behavior, but the effect was not good.

3, sales difficulties: slow capital turnover, many arrears. Raw material All need to buy cash, but the product sold for 1-3 months to receive the money back, some old customers also want to press several batches of goods, so funds are often very tight, of course, loans are indispensable. The market competition is intense, the market scope is narrow, the product is on the low side, the price is low, cannot enter the high-end market, the sale also only by 2 wholesale markets 4-5 customers primarily.

  How does "small factory" make "big business"?

Weapon 1:

Look at this case, first of all want to say to Wang: don't worry. Why not hurry? Because most people do not face your problems. Most people can't do anything, so they shouldn't be in a hurry. This shows that your opponent can't do the same with you.

At this point, when you really understand, no one can help you in the world. The key to solve this problem is in your hands. In this case, we need to ponder slowly. I want to ask you a few questions:

1, are your competitors local?

2, is your product targeting low-income people?

3. Is the industry's business rising or falling in the past few years?

4, will the industry die?

The above problems can be solved in order to suit the remedy to the case.

Weapon two:

I have been talking about my factory for many years.

I think the factory is basically selling products, and the ability to get orders is on Wang himself. How many orders can be received in a year can basically be predicted. Then Wang should make an analysis of his order and try to achieve order equalization.

When you are busy, you should make fewer contacts. When you are light, you should contact more frequently. According to this situation, you can set up factory posts to enable workers to work at full load or even overload. In this way, we can quickly train a group of skilled workers to achieve the survival of the fittest. As efficiency increases, your cost will decrease.

In a word, workers in factories must have jobs. If there is endless work, they will naturally be stable and their efficiency will continue to improve. If you fail to do this, it is better to find other factories to help you produce your own marketing capabilities. I think the factories with high efficiency and low cost will not be able to find orders.

Weapon three:

If I am the boss of this enterprise, I will definitely exert myself on the product, and personally conduct the development of a flagship product, make it the best, and be different from others.

Now I am more and more aware that too many products in domestic enterprises are basically industrial level, which is the level that can be used, but the market of this product is becoming smaller and smaller from the trend. But foreign products are artistic, and the key is the trend in the future.

It's too difficult from industrial level to art class. Even a small detail does not know how much effort should be made; even if a satisfactory package is added, no additional cost will be added. But in any case, this step must be stepped up.

Weapon four:

Recruitment difficulties, first of all depends on how much wages can be sent. If the factory wages are enough, I believe that few people will go to Foxconn. Wages are still on sale, and they will be paid well if they sell well.

It is not necessarily true that employment is hard. People are sentimental. Seafloor employees have a high sense of happiness. Apart from wages and housing conditions, they should care more about each other.

Sales are difficult, in terms of sales and capital flows. The case does not say how the factory operates and sells. It is believed that the sale may be relatively simple, or that there is no growth point in the business mode. How to sell clothes? In addition to the quality of products, reliable design should also meet the needs of consumers. Everyone is a product manager, meaning a good product is what the user says, not his own consideration. At the level of capital, we can consider some existing small financial models.

Finally, enterprises that feel themselves struggling on the edge of survival, though their own qualities determine the prospects for development, are not necessarily highly educated, they are high quality, and still rely more on their vision and vision. It's best not to have an entrepreneur mentality. Just a little lower, and be a craftsman.

{page_break} Weapon five:

Accounts receivable long, low profits, which is the result of this industry has always been the practice, it is difficult to change, unless your product is very cattle, in short supply, you can first goods after the goods, but obviously, Wang can not do.

The factory has been operating for so many years, and has today's current situation been reflected by Wang? Do you know which one of the peers is doing very well? Why are they so cattle? If you know that someone in the industry is doing the best, will you comfort yourself by saying, "people are big financial companies, and I have no qualifications and ability to learn their practices?"

If you do not change, you can only go bankrupt! Everyone is saying that if the company wants to develop well and make money, we must increase revenue and reduce expenditure.

Have you ever thought of increasing sales access?

Have you ever thought that the peak season in the industry will be smooth or busy in your future? For example, jump out of the regular sales channels in the industry. In addition to working with clothing stores and wholesalers, you can try to cooperate with enterprises, such as customizing employees' uniforms for enterprises.

You can combine the company's operation to see if you can expand the original single product and sales. If we still continue to take the low-end route like most of our peers and take the regular sales route, the company will suffer for several years.

We need to think deeply about saving money.

What are the monthly costs, procurement costs, marketing costs, labor costs, capital borrowing costs, etc., which can be reduced, which can be completely abolished, and how much money can be saved after the reduction?

Weapon six:

This friend is my colleague. We run factories for 04 years, have foreign trade companies, and have stable orders. Last year, about 150 employees, more than 50 people in the beginning of the year, and now only more than 30 employees, and they are also facing the same problems and entanglements with Wang. For this reason, we have worked out dormitories, connected networks, televisions, installed air conditioners, and set up workers' cultural activity centers. Many methods have been adopted, but the results are still unsatisfactory. It is estimated that fewer than 20 workers will be put to work next week. I want to talk about two ideas and discuss with you.

1, the clothing industry is a labor-intensive industry with low thresholds and low added value. We believe that the traditional OEM garment processing has been very difficult to survive. For this reason, we registered the brand last year. At present, it is in the style design, collection and marketing planning, of course, including the exploration of e-commerce platform, whether it is possible to go out of a way or not, I want to make some attempts are always good.

2, improve the welfare and treatment of the existing employees, including the benefits mentioned above, though little effect, but we think this is a special period of the Warring States period. As long as our enterprises are well managed and treat their employees well, this critical point will always be over. So we will continue to stick to our welfare improvement plan.

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