Should You Outsource Manufacturing? A Handy Guide

A lot of people assume that the product development cycle involves R&D, outsourcing to a Chinese manufacturer, and then selling the finished product. It’s almost ingrained in our heads that once a prototype has been developed, the next step involves a visa and airplane tickets. Here is a guide that will explore a few other options, and why outsourcing may not be appropriate for everyone.

First, let’s talk about goals. We’ll assume you’re not a large company, and that you don’t have a huge budget, and that you’re just getting started with your product and don’t have big volumes; a startup trying to sell a kit or breakout board, or a consumer electronics product. Your goals are the following:

  1. Validate your product in the market. Build a minimum viable product and get it in the hands of lots of users
  2. Get the most bang for your limited bucks. All money should go towards getting products out the door
  3. Reduce risk to your company so that any single failure doesn’t crater the whole operation and you can safely grow.

With that in mind, what are your options?

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