Untitled

• Product development


  The process of developing, testing, and commercializing a product or service with the ultimate objective of solving the problem of the primary target market
• Product development process


  1. Product or service description

  2. Creating a prototype

  3. Testing the prototype

  4. Validation of market acceptability
• Product or service description


  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 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
• The 4Ms of operations


  • Methods
  • Manpower
  • Machines
  • Materials
• 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, with efficient transportation routes
• Internal layout or floor plan

  How raw materials and finished goods can effectively be transferred, processed and released from one processing unit to another
• Floor plan options


  • Product-based layout
  • Process-based layout
• Manufacturing process flow


  A step-by-step guide for employees and manufacturing equipment to ensure right inputs are used, process is performed to standards, and acceptable outputs are produced
• Service delivery process


  A detailed flowchart of the service business (service blueprint) to minimize wastage and address service bottlenecks
• Distribution method


  The process of bringing the products or service to customers, involving supply chain and distribution channels
• Payment process


  Establishing a seamless payment process, including options like cash, credit cards, installment plans, accounts payable
• Manpower


  Hiring qualified employees to handle operational functions as the business grows
• Job description components


  • Job title
  • Compensation and benefit range
  • Responsibilities and accountabilities
  • Work schedules
• Employee qualification criteria


  • Educational background
  • Work experience
  • Specific skill or knowledge
  • Work attitude
• Preparatory selection of job applicants

  1. Finalizing job description and employee qualifications

  2. Preselecting a set of candidates
• Selection of job applicants

  1. Preliminary screening

  2. Conducting interviews
• Job offer


  Details like rank/position, responsibilities, salary and benefits, work schedule, probationary period, contract duration, resignation procedure
• Employee development


  Training and strategies to keep employees satisfied, starting with employee orientation
• Machines


  Important aspect of goods and service production, working hand in hand with manpower
• Equipment and other facilities

  Strategically placed in the manufacturing site or service delivery area for efficient use
• Telecommunications and information technology equipment

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


  Raw materials and supplies required to offer products or services, with options for manufacturing own products or outsourcing
• Transportation


  The process of efficiently transferring the products to retailers or customers
• Inventory


  Monitoring the inventories in the warehouse, distribution hubs, and manufacturing sites
• Business model


  The green lights that indicate the business is ready to launch
• Telecommunications and information technology equipment

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


  Raw materials and supplies needed by the entrepreneur to offer products or services
• Options for materials requisitioning

  1. Manufacturing own products or offering own services

  2. Outsourcing manufacturing or service activities to a third party

  3. Purchasing own product or service from present suppliers
• Logistics


  Efficiently transferring products to retailers or customers
• Inventory


  Monitoring inventories in the warehouse, distribution hubs, and manufacturing sites
• The green lights for a business model

  • Target high-value customers
  • Offer products or services with great value
  • Offer products or services with reasonable profits
• The red lights for a business model

  • Satisfying the customers becomes too costly and irrational
  • Warranty
  • After sales cost
  • Being a market leader is difficult to sustain
  • Return on investments takes too long and too small
• 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