Entrep

• 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. 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
• Prototype testing


  1. Focus group discussion

  2. Legality and ethical test

  3. Safety test

  4. Product costing test

  5. Component test

  6. Competitors products / service test
• Market validation


  The process of finding out if the intended primary target market will be buying the products or availing the service
• 4Ms of operations


  • Methods
  • Manufacturing
  • Manpower
  • Materials
• Methods


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


  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


  Consideration of transportation routes for efficient delivery of raw materials and finished goods
• Internal layout/floor plan


  Illustrates 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 or distribution channels
• Payment process


  Establishing seamless payment options for customers beyond just cash, such as credit cards, installment plans, or accounts payable
• Manpower


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


  Enumerates the duties, responsibilities, scope, limitations, and terms and conditions of a potential employee
• Employee qualification criteria


  • Educational background
  • Work experience
• Job description


  Enumerates the duties and responsibilities of the potential employee, including the scope, limitation, and terms and conditions of employee
• Job title


  Summary of what the employee will do
• Compensation and benefit range


  Details the potential salary and benefits that employee will get
• Responsibilities and accountabilities


  Must be communicated well to the employee so that he or she knows what to expect with the job
• Work schedules


  Work hours must also be clearly indicated in the job description
• Criteria for hiring suitable employee


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


  1. Finalize job description and employee qualifications

  2. Preselect a set of candidates

  3. Establish HR department to handle selection and recruitment (if business is sizeable)
• Selection of the job applicant


  1. Pool potential candidates

  2. Screen and pick the most qualified and suited for the job

  3. Conduct interviews for shortlisted candidates
• Job offer


  Includes: (1) rank or position, (2) responsibilities/deliverables, (3) salary and benefits, (4) work schedule, (5) probationary period, (6) contract duration, (7) resignation procedure
• Employee development


  • Training people is a big investment, so entrepreneur must devise strategies to keep employees satisfied
  • Employee orientation summarizes business history, vision/mission, policies, culture, and norms
• Machines


  • Best friend of manpower in producing goods and offering services
  • Have become one of the 4Ms as they are very important for production and have changed how entrepreneurs conduct business
• Equipment and other facilities


  • Must be strategically placed in the manufacturing site or service delivery area
  • Entrepreneur must prepare a facility plan for economical manufacturing/service
• Telecommunications and information technology equipment


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


  • Entrepreneur must have dependable suppliers of quality raw materials and supplies
  • Options include manufacturing own products/services, outsourcing, or purchasing from suppliers
• Logistics


  Warehousing, transportation, and inventory monitoring for efficient distribution
• The green lights


  • Satisfying 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
• The red lights


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


  Money allocated by the entrepreneur to establish a business, the owner's investment of assets
• Collateral


  High value asset submitted to the bank when applying for a loan, subject to repossession if the business defaults
• Revenue


  Output of a sale where sales price exceeds cost, can be earned or deferred