ENTREP

• ENTREPRENEURSHIP 4TH QUARTER: WEEK 1 AND 2
• FUNDAMENTALS OF PRODUCT DEVELOPMENT

  1. Developing a product or service description

  2. Creating prototype

  3. Testing prototype

  4. Validating the market
• Product or service description


  Describes how a product or service works and how it benefits the customers
• Prototype


  A preliminary model or sample of new product or service that is created to test a product concept or service process
• Testing the product prototype

  1. Focus group discussion

  2. Legality and ethical test

  3. Safety test

  4. Product costing test

  5. Component test

  6. Competitors products / service test
• Validation of market acceptability

  The process of finding out if the intended primary target market will be buying the products or availing the service
• Methods


  The day to day operations of business, describing how an entrepreneur will run the business from all facets
• Manufacturing of goods

  1. Inputs - Materials or ingredients

  2. Process - Processed by manpower

  3. Output - Final product
• Manufacturing sites


  • Home based
  • Commercial space for rent
  • Commercial space purchase
• Location


  Where the delivery of raw materials and finished goods will be conducted
• Internal layout or floor plan


  Illustrates how raw materials and finished goods can effectively be transferred, processed and released from one processing unit to another
• Service delivery process


  A detailed flowchart of the service business, also called service blueprint
• Distribution


  The process of bringing the products or service to customers
• Payment process


  The entrepreneur must establish a seamless payment process
• Manpower


  The expertise of qualified employees that can handle operational function
• Job descriptions

  1. Job title

  2. Compensation and benefit range

  3. Responsibilities and accountabilities

  4. Work schedules
• Employee qualification

  • Educational background
  • Work experience
  • Specific skill or knowledge
  • Work attitude
• Selection of the job applicant

  1. Preliminary screening

  2. Interview
• Job offer


  Includes rank or position, responsibilities, salary and benefits, work schedule, probationary period, contract duration, resignation procedure
• Employee development

  Training people, employee orientation
• Machines


  An important aspect of goods and service production, changing the way entrepreneurs conduct business
• Equipment and other facilities


  Strategically placed in the manufacturing site or in the service delivery area
• Telecommunications and information technology

  • Landline phones
  • Mobile phones
  • Laptop and desktop computers
  • POS machines
  • Accounting and inventory software
  • Website
• Materials requisitioning options

  • Manufacturing own products or offer services
  • Outsourcing of manufacturing or service activities to a third party
  • Purchasing own product or service from present suppliers
• Logistics

  Warehousing, transportation, inventory monitoring
• The green lights


  • Satisfying the customers becomes too costly and irrational
  • Being a market leader is difficult to sustain
  • Return on investments takes too long and too small
• The red lights

  • Target high-value customers
  • Offer products or services with great value
  • Offer products or services with reasonable profits
• Capital


  The money that will be allocated by the entrepreneur to establish a business
• Collateral


  A high value asset that is submitted by the business to the bank when applying for a loan and will be subject for repossession if the business defaults
• Revenue


  The output of a sale wherein the sales price exceeds the cost to produce the product or render the service
• Computation of gross revenue

  1. Compute for the market universe or total market

  2. Compute the market share of the competitors

  3. Plan to capture remaining market share

  4. Prepare a realistic five-year projected annual revenue
• Types of financial statement

  • Income statement
  • Balance sheet
  • Cash flow statement
• Income statement


  A financial statement that details the computation of net revenue by deducting cost of sales, expenses, and taxes from the gross revenue generated
• Balance sheet


  A core financial statement that describes the financial position of the business, composed of assets, liabilities and owners' equity or capital