One of the best problems to have as a business owner is to have more demand than you anticipated, but this can also create significant problems. Demand for your goods or services equates to increased profitability. However, this anticipated profitability only becomes a reality when you are able to meet the need for demand. In some cases, businesses may be poised for growth, and expansion may simply mean implementing procedures and plans that are already in place. In other instances, however, you may not be prepared for such an incredible spike in demand, and you may be scrambling to keep up. These helpful ideas can assist you in responding in an effective manner.
Offer Productivity Incentives to Workers
Keeping pace with the immediate demand for your products or services often means that you need your workers to contribute more hours to the business. Some may be excited about the opportunity to work overtime hours for a short period of time, but others may need more encouragement to do so. If your simple offering of overtime pay does not motivate them, consider implementing productivity incentives to encourage more production or service hours.
Hire Contract Labor
Paying your existing workforce overtime can erode away the profits that you could enjoy through the current spike in demand, and this is the last thing you want. Therefore, it is important to use overtime pay and productivity incentives on a short-term basis. You must have a more strategic long-term plan in mind. For example, you may consider hiring contract laborers whose services you can terminate at any time. This way, you can easily scale back work hours as needed if demand declines without expectation. On the other hand, if demand continues at its current pace, you can always ask the contract workers to become full-time employees.
Outsource Your Supply Chain
Your supply chain becomes a prime point of concern as well, and this includes your management, shipping and receiving factors. You can easily explore supply chain management companies who can assist with this process. Some contractors can easily step in to fill the gaps as needed, or they can even help you to continue to grow through the long-term use of their services. Your supply chain dictates the available resources you have to use for production, your need for storage space after the products have been made and even the shipment of those products to consumers. These are critical to your ability to meet demand, so you must spend time improving these factors without delay.
Use Temporary Storage Solutions
When you have more workers taking up space as well as more unfinished and finished goods that need to be stored, storage space becomes a top concern. You could consider investing in a covered awning or even a portable storage unit on-site as one option. Another idea is to make use of a large storage unit in a nearby storage facility. However, if you store items off-site, you need to make shuttling products back a forth a responsibility for one or more of your workers.
Having a greater demand for your products or services is truly beneficial in many ways, and you may be thrilled with the possibilities available to your company through this spike. It creates the very real opportunity to increase profits and to increase your market share. However, it also creates the incredible challenge associated with producing more products or offering more services as needed. The inability to meet this demand can damage your company’s opportunities for growth in the future and can jeopardize your reputation. By focusing on these critical points, you can more easily adjust to the increase in demand and take your business to the next level.