4 M's of Production and Business Model [ENTREP]

• FOUR Ms = OUTPUT

  • Manpower
  • Method
  • Machine
  • Materials
• MANPOWER

  • Talks about human labor force involved in the manufacture of products.
  • It is measured as the most serious and main factor of production. The entrepreneur must determine, attain, and match the most competent and skilled employees with the jobs at the most appropriate time.
  • Educational qualifications and experience, status of employment, numbers of workers required, skills and expertise required for the job are some of the manpower criteria that must be highly considered by the entrepreneur.
• MATERIAL

  • Talks about raw materials necessary in the production of a product. Materials mainly form part of the finished product. Just in case the resources are below standard, the finished product will be of unsatisfactory as well.
  • The entrepreneur may consider cost, quality, availability, credibility of suppliers and waste that the raw material may produce.
• MACHINE

  • Discusses about manufacturing equipment used in the production of goods or delivery of services.
  • In the process of selecting the type of equipment to purchase, the entrepreneur may consider types of products to be produced, production system to be adopted, cost of the equipment, capacity of the equipment, availability of spare parts in the local market, efficiency of the equipment and the skills required in nanning the equipment.
• METHOD

  • Production method discusses the process or way of transforming raw materials to finished products.
  • The resources undergo some stages before it is finalized and becomes set for delivery to the target buyers.
  • The selection of the method of production is dependent on product to produce, mode of production, manufacturing equipment to use and required skills to do the work.
• Product description

  The promotion that explains what a product is and why it's worth buying
• Purpose of a product description


  To provide customers with details around the features and benefits of the product, so they're obliged to buy
• Guidelines for a good product description

  • Know your target market
  • Focus on the product benefits
  • Tell the full story
  • Use natural language and tone
  • Use power words that sell
  • Use good images
• Some customers are very particular with product descriptions since they consider the welfare of their family, if it is safe to use
• Prototype


  A duplication of a product as it will be produced, which may contain such details as color, graphics, packaging, and directions
• Prototype


  • One of the important early steps in the inventing process
• Benefits


  The reasons why customers will decide to buy the products such as affordability, efficiency, or ease of use
• Features

  Descriptive facts about the product or service
• It is better to test your product prototype to meet customers' needs and expectations, and for your product to be known and saleable
• Pretesting


  A sample of the product or service given to the consumer free of cost in order that he/she may try the product before committing to a purchase
• Supplier


  An entity that offers goods and services to another business
• Supplier


  • Part of the supply chain of a business
  • May offer the main part of the value contained within its products
  • May involve in drop shipping, where they ship goods directly to the customers of the buyer
• Suppliers are your business partners, without them your business will not live
• You need suppliers as much as you need your customers to be satisfied
• Choosing a supplier

  • Choose a potential supplier that has loyalty and value your partnership
  • A supplier that would lead you to the fulfillment of your business objectives, mission and vision
• Value Chain

  • a method or activities by which a company adds value to an item, with production, marketing, and the provision of after-sales service. The main goal and benefit of a value chain, and therefore value chain analysis, is to make or support a competitive benefit.
• Supply Chain

  • a structure of organizations, people, activities, data, and resources involved in moving a product or service from supplier to customer.
  • OBJECTIVE - supply chain management includes management of a varied range of components and procedures, for instance, storing of raw materials, handling the inventory, warehousing, and movement of finished product from the point of processing to the point of consumption.
• BUSINESS MODEL

  • describes the reasons of how an organization creates, delivers, and captures value in economic, social, cultural of other contexts. The development of business model model construction construction and and variation is also called business model innovation and forms a part of business plan.
  • It is a company's plan for how it will make revenues and make a profit. it describes what products or services the business plans to manufacture and market, and how it plans to do so, as well as what expenses it will incur.
• Important PHASES in developing business model

  • Identifying the specific audience
  • establishing business process
  • recording a business resources
  • developing strong value proposition
  • determining key business partners
  • creating a demand for today's generation strategy and be open for innovations
• Develop business model THEN Develop a business plan
• Business Plan

  • an important tool for you to have an idea about the future of your business. Your business plan will be your guide in the moment you will be implementing and operating your business proposal.
  • You can also make use of the business plan in securing investment capital from financial institutions or lenders. It can also be used to influence people to work for your enterprise, to secure credit from suppliers, and to fascinate potential customers.