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Upgrades: buy supplies.
And it depends on how you value your time, and if you plan to play in the long run (upgrades will pay off in the long run). And/or if you plan to use it for input to nightclub warehouse.
Once you have the upgrades, you can buy the supplies and use the time saved to do some other more profitable business, e.g. VIP missions, exporting vehicles, helping friends on their MC sales, etc.
For example: right now I own 2 crate warehouses (one small, one medium) as well as a vehicle warehouse. I'm too busy sourcing cars and crates that having to do resupply missions as well is simply a waste of time (and money!) for me.
Right now I just got myself a meth lab (already have cocaine & counterfeit) and even though it doesn't have upgrades yet I'm still buying supplies for it. For the simple reason that I only have to source 1 car to go break-even on that (I can sell 'm for 100k, which makes me 25k profit) and my time is much better spent on sourcing crates, vehicles and doing some CEO missions.
But if you're just starting you're much better off stealing supplies and doing the missions. Sure, it might get tedious but you'll earn RP for doing them (levels you up) and if you kill NPC's you often get dropped money too. Plus you get the maximum amount of profit out of your business.
And one steal mission essily takes 15 minutes.
Some take even longer (e.g. stealing an APC from a convoy), and in the end you're visible with a huge icon on the map, attracting the wolves.
which upgrade is better if counterfeit cash factory is a decent option? I only have about 600k
Considering your questions I'm pretty sure you got the premium online edition, as such also the paleto bay bunker. Whatever you do: don't upgrade that. Instead consider a relocation somewhere more south and easier accessible.
Still, also don't underestimate the income you can generate from owning a crate (and vehicle) warehouse. Even a small one can help: getting a crate for 2k can immediately be sold for 10k, that's not too bad ;)
upgrade staff and production to maximize your profit, it's a grind if you choose to make money with mc businesses, so you might as well get the best return for your efforts.
Bogdan is calling "double RP and $ on doomsday heists",
while you still waste your time with cheap mc businesses
someone has to stop cliffford.
Government pays way better.