I have wanted to start a business for a while and Have a great idea. I have been doing research alot and found that buy doing the work in house (literally in my house) on my own equipment, my profit margin will increase by probably over 100%.
If I outsource, it saves me the trouble of actually doing the work which means I have much more time on my hands to do something else, but I have a much smaller profit? Also, by doing the work myself, I can set my own prices and still have a large profit as I will not be obligated to pay the given amount to the outsourced company. This way I can also have discounts and sales. By outsourcing, my discounts will probably be no more than 5% off due to keeping up with price demand and competitors and still making a profit (probably a few dollars on a $100 purchase).
It costs between 5-10k to buy the machine. I can lease the machine for a little over $200 a month but in the end I pay a over $1000 more than if I were to buy it.
What do you think I should do? SHould I buy/lease and get much more profit? or should I outsource to another company and make very little profit.
Thanks Very Much!