LEAN

With so many small businesses closing their doors lately, how are we able to keep the Fancy Factory up and running? Baby, we are a LEAN operation. Lean means we cut out the fat. Minimizing subscription services once we realize that some of them overlap in function. By implementing LEAN principles, we can streamline our operations, reduce waste, and improve overall efficiency.

What is LEAN?

LEAN is a methodology focused on maximizing customer value while minimizing waste. It involves identifying value-added activities and eliminating non-value-added activities to create a more efficient workflow. By implementing LEAN practices, businesses can optimize processes, reduce costs, and enhance customer satisfaction.

How Can LEAN Benefit Our Business?

Implementing LEAN principles can have a significant impact on our business operations. By eliminating waste and improving efficiency, we can reduce lead times, increase productivity, and enhance overall quality. This not only benefits our bottom line but also allows us to better serve our customers by delivering products and services in a timely manner.

Steps We Took To Get LEAN

From the start, we followed the advice of mentors and business advisors to keep overhead as low as possible. They all told me to operate out of my home until I absolutely could not operate there any longer. So when it was time to expand our manufacturing space, we chose to build out within the 2,000 square feet we already owned rather than taking on the expense of purchasing or renting a commercial space.

1. Implemented the Profit First Model: It's a cash management system that flips the traditional accounting formula by prioritizing profit first—allocating revenue into separate accounts for profit, owner’s pay, taxes, and expenses before covering operational costs. This approach ensures businesses remain financially healthy by controlling spending, building sustainable profits, and preventing cash flow crises.

2. Ordered supplies as necessary: Buying in bulk may lower the cost per unit, but if supplies sit unused, those savings don’t really help. Using the Profit First model allowed me to evaluate my cash flow before placing orders, ensuring I only purchased what I needed, when I needed it.

3. Adjust manufacturing volume: We manufacture 3-6 months' worth of inventory based on past sales data, ensuring we produce the right amount per run. This approach also helps us accurately assess supply needs and order materials efficiently.

4. Employee Involvement: Engaging employees in the LEAN process empowers them to identify opportunities for improvement and contribute to a culture of efficiency. Ask them questions about certain processes, welcome their suggestions, and give them credit for their ideas.

Remaining Open for Our Fancy Friends and Clients

I understand that deciding to close a business you’ve built is never easy. So many people have supported and believed in you along the way, making the decision even more challenging. But sometimes, stepping away is the best or only choice for your mental well-being.

For us, it’s about more than just our own brand—we have our loyal Fancy Friends and also support multiple small businesses through our contract manufacturing services. Our success impacts others, which is why we’re always focused on improving and optimizing our processes.

I like to think of process improvement as my superpower, and I’m constantly refining both our manufacturing operations and overall business strategy. I know that’s not everyone’s strength, so I wrote this blog to help you identify and fix inefficiencies in your own business—starting today!

Hope this helps you or someone you know.