Effective quality control helps businesses protect profits while increasing customer satisfaction and improving productivity. Quality control usually requires additional resources and investment but it should not be optional for businesses. Even if your business is just starting out with low production volumes, it’s important to pay attention to quality control. As your company grows you can quickly lose sight of quality causing sales to decline. It’s easier to consistently monitor quality and make necessary changes rather than encounter serious problems that you have to solve.
How can quality control affect a company?
If you want to keep your company strong all around, you should focus on quality control. Quality control can affect just about every aspect of a company. For the purpose of simplicity, we will focus on four main ways quality control can affect a company.
#1. Productivity
Quality control problems can slow down production. In some cases companies may try to cut costs by using low quality machinery and systems. While this may save money up front, it will likely cost you money sooner than later. Low quality parts often experience mechanical breakdown which can interfere with production. A slowdown or stoppage of production can affect other areas of the company such as sales and revenue.
#2. Profitability
Quality and profits have a strong correlation. If companies effectively manage quality in all areas, they should be repaid in profits. Managing quality requires teamwork from various departments within a company. Companies that place a strong focus on quality control can create a work environment that prioritizes quality. By having employees that are focused on quality control, you should be able to address any potential issues early on. In addition, your front line people that are hands-on every day may have some of the best solutions for quality control issues.
#3. Customer satisfaction
Customers want quality products. Achieving high customer satisfaction should result in five star reviews and high customer satisfaction survey rankings. As a result, websites are likely to rank your products higher which can drive traffic to your products and increase sales. Companies that produce high quality products are likely to capture repeat customers. In addition, customers are likely to refer to companies with high quality products. Companies with high quality products can increase word-of-mouth advertising, which is usually free.
#4. Costs
There are many ways a business can cut costs. However, in some cases cutting costs may also reduce quality. For example, using cheaper manufacturing parts or machinery may cut costs up front but the long term effects can be expensive. Another example is using cheaper software to manage customer orders and accounts. Again, this may be cheaper initially but it may be harder to use and less effective than a more expensive software. While you may cut costs initially, employees may be frustrated and customer satisfaction may be suffering. Companies must find machinery, systems, and parts that offer value. We are not saying that companies should go purchase the most expensive of everything. However, companies should focus on the value and quality of anything that will impact their business.
What should a quality control program consist of?
Quality control (QC) programs require a plan that outlines your organization’s standard operating procedures. Standard operating procedures provide a reference for clients and employees of how things are done and what will be delivered. Depending on the level of the company, QC standards could vary. It’s important that a QC program is user friendly and understood by all employees. In order to create an effective program companies should research, plan, and communicate. In addition, the program should be evaluated on a regular basis. Continuous improvement is usually necessary to maintain an effective QC program.
Do small businesses need quality control?
Meeting customer expectations is important no matter how big or small a company is. Small businesses may not have the funds to advertise like a large business, thus increasing the importance of quality control. Brand loyalty can be improved by producing quality products which can help small businesses grow without dumping large sums of money into advertising. Quality control can also help brands establish a good reputation and encourage customer reviews. If small businesses want to be sustainable and achieve growth goals they should focus on quality control starting at day one.
Does quality control only apply to products?
Quality control should be applied to all departments within a company. While it’s important to deliver high quality products, it’s also important to have quality back office systems. You may be delivering quality products but if your bookkeeping is inaccurate, your company may face serious issues that could lead to failure. Quality control provides the opportunity for businesses to improve overall operations. Improving operations allows companies to become better and better than their competition. If you are a small company that is unsure of how to implement quality control programs you can find online classes to put you on the right track. In the early stages you may be able to manage quality control on your own. However, as the company grows it’s important to keep up with the growth and bring in additional quality control management if needed.
Quality control will increase my cost, can I borrow more money?
Implementing and investing in quality control typically increases costs in the beginning. In order to enforce quality quality programs companies may need a QC professional or team. In addition, the company may need to invest more into actually producing the product. Perhaps the company is using a manufacturer with unreliable machinery that breaks down often. To meet quality control standards the company may need to use a manufacturer with reliable machinery who can deliver quality products on time consistently. However, investing in quality control can increase revenue and save money in the long-term. Quality control can ensure the success of your business. So how do companies afford higher initial costs? Small businesses may qualify for SBA loans or other types of financing. If traditional loans are not providing enough funds, you may need to consider inventory financing. Kickfurther can provide affordable inventory financing for small businesses.
Grow your business with Kickfurther
In most cases, growing a business requires investment. If you are reading this, you have our vote of confidence already. The desire to implement quality control programs and produce high quality products is where success begins. In some cases, entrepreneurs just want to find the cheapest way to do things. While they may have good initial sales due to a desirable product concept, it’s likely their company will fail shortly after due to a quality control issue. If you want to deliver high quality products but are on a tight budget, you should consider inventory financing.
Kickfurther is designed to help small businesses secure inventory financing without giving up equity in the company. Kickfurther allows small businesses to recruit supporters to buy inventory on consignment. To get started, small businesses can create proposals including a time frame for producing goods, a specified rate of return, and a schedule for repayment.
Wrapping Up
In order to implement and execute quality control programs, your business needs to have cash available. High quality products will likely cost more to acquire or produce. However, it’s likely that you will be able to sell them for more money. It’s common for businesses to use inventory financing. Small businesses may be reluctant to use financing because it can increase costs. In addition, bank loans or traditional business financing may be challenging to qualify for. Finding affordable inventory financing can be challenging, that is until now. Kickfurther is committed to helping businesses secure affordable inventory financing. If your company needs inventory financing for physical products and has proven sales, create a business account at Kickfurther.com today.
Deliver high quality products for customers. . . apply for inventory financing today!
