Scribd
Upload
68 views1 page

Entrep Reviewer

The document discusses the key steps and considerations in developing a new product or service. It describes creating a prototype to test ideas, testing the prototype through various methods, validating market acceptability, and planning 4Ms of operations including methods, manpower, machines and materials. It also discusses financial planning elements like capital, collateral, depreciation, balance sheets, income statements and cash flows that entrepreneurs should consider. Developing the right business model drawing from these various product development, testing, operations and financial planning factors is important for entrepreneurial success.

Uploaded by

WAEL, Kyle Angelo A.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
68 views1 page

Entrep Reviewer

The document discusses the key steps and considerations in developing a new product or service. It describes creating a prototype to test ideas, testing the prototype through various methods, validating market acceptability, and planning 4Ms of operations including methods, manpower, machines and materials. It also discusses financial planning elements like capital, collateral, depreciation, balance sheets, income statements and cash flows that entrepreneurs should consider. Developing the right business model drawing from these various product development, testing, operations and financial planning factors is important for entrepreneurial success.

Uploaded by

WAEL, Kyle Angelo A.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

Product or service description

● simply describes how a product or service works and how it benefits the customers.
Creating a prototype
● is a preliminary model or sample of a new product or service that is created to test a product concept or service process.
● This is an exciting process for the entrepreneur because he or she will be able to see that his or her ideas will soon become a
tangible reality.
● Creating a prototype enables the entrepreneur to engage in trial-and-error, provides room for improvements, and refines
the functionality of the product design or service process.
Testing the prototype
● is a vital process before an actual product or service is launched to the market.
● will uncover the final loopholes that need to be fixed before commercialization.
● The following testing methods are applied by the entrepreneur:
o Focus group discussion
o Legality and ethical test
o Safety test
o Product costing test
o Component test
o Competitor’s product / service test

Validation of market acceptability


● is the process of finding out if the intended primary target market will be buying the product or availing the service.
Market acceptability
● is a critical factor that the entrepreneur must validate before launching the product or service, because this can strongly
suggest if the business will be successful or not.
4Ms of operations:
● the methods, or the process to be followed in effectively manufacturing or delivering a product or service;
● the manpower, or the right human resources who will handle certain business operations;
● the machines, or the technology used in efficiently operating the business,
● and the materials to be used in creating a product or performing a service, which include supply chain management.
Manufacturing is the process of translating raw materials into finished goods that are acceptable to the customer’s standards. It
consists of three elements:
● Inputs – the materials or ingredients to be used in creating the product.
● Process – the transformation phase where inputs are processed by manpower and machines to come up with the final
product
● Output – the final product of the process stage, which is limited to be sold to target customers

According to Don Deebelak in his article “Developing a Great Business Model” on the Entrepreneur Web site, the
entrepreneur must adapt the dynamics of traffic lights in developing the business model. These are the three “green
lights” or the positive signals that can help entrepreneurs develop ideal business models and eventually succeed.

The Financial Plan


● One of the most difficult parts of the business plan
● It also provides the entrepreneur financial data such as liquidity, cashflow, and financial standing of the business.
Capital
● is the money that will be allocated by the entrepreneur to establish.
Collateral
● refers to 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.
Depreciation
● refers to the value reduction of the noncurrent asset primarily due to natural wear and tear and other
value-reducing factors.
Balance sheet
● is a core financial statement that describes the financial position of the business.
● composed of three elements: (1) assets, (2) liabilities, and (3) owner’s equity or capital.
● Assets represent the business that are expected to have future economic value.
● Assets are divided into current assets, which are mostly the liquid assets that can be exchanged to cash within
one year, and noncurrent assets, which are long term assets that can be converted to cash more than one year.
● Liabilities are what the business owes to another person, a financial institution, or any creditor.
● Owner’s equity or capital is the funds allocated by the entrepreneur to run the business.

The income statement, balance sheet, and statement of cash flow are the basic financial statements that should be
religiously prepared, monitored, and analyzed by the entrepreneurs no matter what type of business they are in.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy