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innovation

Good Problems to Have When Starting a Business

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A good problem to have in business is an issue that is created by having too much success. These problems are said to be good because they would not exist if the business was having poor or moderate interest from the market. Therefore, they imply that the business as a whole is on the right track. Some good problems you could have that warrant consideration when starting a business are not enough inventory, too many investors, and too many sales.

Within a business, inventory is ordered based on sales forecasts and past sales numbers. In a new business with no past sales to base inventory purchases off, forecasts need to be made in order to establish quantities for mass manufacturing at their production partner. Given that a manufacturing timeline averages 3 months from order to delivery, what can a business do if they run out of inventory weeks or months before their next scheduled delivery? Without the right manufacturing partner this can result in lost sales and unhappy customers who may never return once inventory is restocked. Esino owns our own factory so we are able to be flexible and prioritize orders for our clients who need more inventory fast.

A new business often accepts capital from investors in order to fund their start up phase. But what happens if too many investors want to put too much money into the business? This can create a situation where the owner of the business may lose significant holding and potentially lose majority shares. Entrepreneurs need to be wise when considering what investments to accept. Of course it is a great thing to have interest from capital providers, however too much money taken too quickly can derail the original vision of the company. If this is a problem that you are currently experiencing, schedule a consultation with an Account Manager from Esino who can walk you through what investment acceptance strategies that will work for you and has worked for previous clients.

When a business begins, of course they want to drive sales to create revenue. However, what happens if a company has too many sales in a short period of time? Problems can arise from this due to a lack of business infrastructure. In order to properly process sales there is a need for customer service, supply chain logistics, and accounting, among other tasks. Without these important staffing positions filled in a new business, it will be difficult to fulfill sales within a timely manner necessary to create happy customers. Esino can assist with this by providing our sales office staff to our clients for their use.

Starting a business will be a difficult task regardless of initial success or failures. Esino has been through this process time and time again and wants to be there for you as you build your business.

How to Prepare for Chinese New Year

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Fifteen days out of every year, beginning on February 1st, the manufacturing hub of the world shuts down to celebrate the New Year with festivals, food, and family gatherings. With the average mass manufacturing timeline being 2-3 months from order to delivery, November is the time to place an order that can be in your inventory before all factories shut down. When thinking about your company’s Chinese New Year plan, consider your pre New Year inventory levels, if it is possible to maintain a reduced crew during the New Year, and your order schedule once everyone gets back to work.

Healthy inventory levels are essential to every business to ensure that there are products ready to be sold when your customers want to buy them. If your company finds itself needing more inventory while your factory is shut down for over two weeks there is no ability to place a new order or rush an existing one. During the month of November make sure a new production order has been placed with your Chinese factory for delivery before the start of Chinese New Year. Game plan out average sales per month and anticipate having an increased inventory level during late January into February. Also account for the fact that no representatives at the factory will be able to answer questions or concerns during this time so plan out ahead of time what it will be like to be in the dark from your overseas manufacturing partner for over two weeks.

Esino is different from most Chinese manufacturers because we keep a reduced crew in place throughout Chinese New Year to keep basic functions and crucial orders on track for our clients. If you know in advance that you will need services during this shutdown, build a relationship with us now and we can plan to have staff in place during this time to fulfill your needs. Most factories shut down completely during Chinese New Year so this is a unique benefit of working with Esino.

Once February 15th rolls around and all of the workers return from their home villages to their respective factories, there is a phenomenon that takes place every year that results in a reduced workforce. This is that a given number of employees will just leave their jobs on a whim. This can often be because they had a great two weeks off and don’t want to return to regular working life, they discovered they have a sick relative in need of their care, or found another opportunity in their home town. Make sure your factory is ready to hire more people after Chinese New Year with new applicants standing by. This crunch is compacted because it is also the busiest time of the year for Chinese factories as every client has over two weeks of work that is backlogged. Discuss with your factory contact what your priority in the manufacturing line is so that you can resume production order scheduling as soon as possible.

Chinese New Year shutdowns have historically caught many companies by surprise since this is not a holiday that is celebrated in the West. Make sure your team thinks through months in advance a strategic response and implements that plan appropriately.

Are you building a brand or just selling a product?

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4 key branding elements

Many people believe that just because a product is on the market and selling well that they have established a brand. There is so much more associated with building a brand above and beyond selling a product such as educating customers, social media management, search engine optimization, and creating a cohesive line of products. Think about and implement each of these things to go from selling a product to having a brand. 

Educating customers on the function and benefits of a product can be done several ways including market data, testimonials, info graphs, and step-by-step guided tutorial videos. How will the customer base know if they want to make a purchase decision if they aren’t sold on how it can make their life better? Messaging around product education should be free and easily accessible on a brand’s website. 

Social media has become an essential component to brand building. Look at any well established brand. They use social media as a platform to interact with customers, provide brand updates, and find potential customers using targeted advertisements. The social media platforms that are currently trendy and essential to be on are Instagram, Twitter, Facebook, LinkedIn, Pinterest, and Tiktok. To create one organized and cohesive message use the website Loomly which allows posting to all platforms at the same time. 

Search Engine Optimization (SEO) is the best way to drive traffic to a brand. Why spend marketing dollars finding a customer when those customers can organically find you through their own online searches? Begin a relationship with Google Analytics to begin optimizing an SEO strategy.

A key element to a brand is having a line of complimentary products. Once a customer is attracted to a product, that will likely be the same target customer for all of the other products within a brand. Once the first product is launched, think of other innovative or existing products that can be sold under the same brand and would appeal to the same target customer as the original product. 

Great product idea? Here is how to know if it has potential.

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We have all been there. Whether in a dream or by a sudden stroke of genius the idea for the next great product comes to mind. The optimism and excitement is uncontainable leading to several hours of deep thought and online researching. What should you be looking for? How do you know if you are the first person to think of this idea? In today’s modern age it is easy to get discouraged and think that everything has already been thought of, however before getting pessimistic go through these steps to do your initial idea research.

Can you currently buy it online?
Think of a short description for your product idea and type it into both Google and Amazon; the largest search engine and storefront respectively. If your idea, or a variation of it is already being sold then it may not be wise to continue to pursue this idea because someone with more infrastructure and intellectual property has already penetrated the market. If you cannot find anything similar to it in your online search, advance to the next step!

Consult a product development company.
Companies like Esino will provide the free service of letting you know if your product idea is truly original. Product design professionals spend time everyday looking at new and innovative ideas so they will be able to provide intelligible advice and insight into your research. If it has potential, you can get a free quote to get a feel for what the product idea would cost to design and prototype.

Would your friends and family spend their money on it?
Market research is a free way to get an idea of if your potential customers would be willing to spend their hard earned money on your product if it existed. Talk to people you know and give them a minute long pitch on your vision and ask for their honest feedback. Remember, you will have an inherent bias towards your idea and think that it is better than it actually is.

Overall it is important to put significant time and energy into researching an idea before sinking any money into it. Although many ideas have been thought of, the next million dollar product is still waiting for its inventor.

Six Often Overlooked Links in a Supply Chain

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1. The Suppliers of Your Supplier
Physically inspecting the source of components and materials that your manufacturer uses is very important. Never assume the best. Companies will try to cut corners to save money, so they need to be held accountable and closely watched to ensure that quality never diminishes.

2. Customs
Customs holds have caused many missed deadlines. Before making any shipment make sure to look into what type of goods can cause a hold by the customs department of both the shipping and receiving country. If you are worried that your shipment may experience a customs hold, contact a government agent for clarity.

3. Choice of Shipping Service
Cost is not the only factor when considering the shipping service to use for your goods and materials. It is important to develop a relationship with a representative at your preferred company so that you get optimal service and have a person at the ready to contact if any issues arise during the shipment.

4. Factory Cleanliness
A dirty factory is indicative that corners are cut in other places of the business. It may seem like a small thing but being clean and organized is something that should be insisted on for everybody in your supply chain.

5. Holidays, Disasters, and Shutdowns
Keep track of all federal holidays in the countries you operate in. These non-working days need to be accounted for when creating logistics timelines. More unforeseen events such as natural disasters and government shutdowns, such as recent Covid lockdowns, can also add additional days to shipping time.

6. Utilize Technology
Avoid employees performing monotonous tasks that could be instead done digitally. This will reduce human error and allow your workers to spend their time elsewhere. Innovative technology and software can automate tasks such as label creation, tracking, and inventory management.

If You Needed A Reason To Manufacture In China, Here’s 10

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1. Lower Production Cost

Expect to spend less on molding and manufacturing when using a Chinese company. Other companies known for manufacturing such as USA, Japan, and Germany are almost always significantly more expensive.

 

2. Faster Production and Scalability

Lead times on production orders made in China are usually less than that of other countries. China makes it easy for businesses there to grow quickly, build new facilities, and expand with few obstacles. 

 

3. Willing to Work with Smaller Companies

Many manufacturers only want to work with large, well established brands. China’s manufacturing entrepreneurs are often more willing to work with start-ups and people at the beginning stages of development in hopes that the business grows over time.  

 

4. Pro-Business Government Policies 

China’s laws, rules, and regulations make it easy for businesses to grow year after year by not placing unnecessary restrictions on them and by supplying valuable incentives to manufacture in China. 

 

5. Abundance of Skilled Talent

China graduates more skilled laborers from university than anywhere else in the world. So many new engineers enter the world force every year in China that the large supply of skilled labor available keeps the cost for such services affordable. 

 

6. Stability

Over the last 30 years China has been the pinnacle of stability around the globe. While other countries often change leadership and policies, China’s consistency in this area gives business people confidence that what they invest in now will not change in the years to come. 

 

7. Modern Infrastructure

China has been at the leading edge of creating roads, bridges, and highways that efficiently transport people where they need to go. They are also known for their state of the art public transportation system, so you can have confidence that even if your interests are in several cities or provinces, you can travel between them easily. 

 

8. Abundance of Raw Materials

Basic commodities such as metal, wood, and chemicals cannot be found anywhere at cheaper prices than in the Chinese open market. Whatever the raw material is that you need for your company, it is most likely produced in China and can be purchased there at a fraction of the price than anywhere else in the world. 

 

9. Product Quality

There is a misconception that Chinese products are cheap and often break. This is due to past notions about products produced during the developmental stage of China’s growth. Now China is a global superpower that has all of the same or better technology and innovation as the rest of the world which allows them to supply products of the same quality as other developed nations. 

 

10. Language Barriers Disappearing 

In the past, communication with Chinese factories created a language barrier. Now with the push in education to train everyone to speak English, it is almost universal that an English only speaking business person can effectively communicate directly with people who work inside of Chinese factories.