Outsourcing production can have some advantages for a new start-up product provided there are existing suppliers qualified to manufacture the items to your specifications. Control over the new product can be documented in contractual agreements. It is always a good idea to have more than one supplier, if possible, to ensure you can meet your product delivery demands. However, multiple suppliers can create problems with maintaining consistency of quality.
Outsourcing also means you would not have to invest heavily in developing your own infrastructure. Your market research and your business plan should give you a basic idea of your potential sales volume and selling price, from which you could calculate a break-even point in terms of recouping your initial investment when you switch to outsourcing.
More and more business owners are opting to outsource services and/or production related activities such as payroll, customer service, packing and shipping. It is not hard to see why; outsourcing has many obvious advantages and can often enable a small business owner to do things that were previously impossible. At the same time, outsourcing does have some disadvantages that a business owner should carefully consider.