smes courseschapter 7 sm es and established decision
TRANSCRIPT
SMEs and Established Decision
Prof. (Dr.) Kao Kveng HongPh.D., D.Litt., D.Sc.
Chapter 9
Overview Topic
β’ Product of Our Enterprises we should do ?β’ A simple Research to Start up enterprisesβ’ Step to start the Enterprises
5 Steps for Turning Your Invention Ideas Into a ProductStep 1: Document Itβ’ Write down everything you can think of that relates to your invention, from
what it is and how it works to how you'll make and market it. β’ Step 2: Research ItYou will need to research your idea from a legal and business standpoint. Before you file a patent, you should:β’ Complete an initial patent search. β’ Research your market. Step 3: Make a Prototypeβ’ A prototype is a model of your invention that puts into practice all of the
things you have written in your inventor's journal. Here are some general rules of thumb when prototyping your invention:
β’ 1. Begin with a drawing. Before you begin the prototyping phase, sketch out all of your ideas into your inventor's journal.
β’ 2. Create a concept mockup out of any material that will allow you to create a 3-D model of your design.
β’ 3. Once you're satisfied with the mockup, create a full-working model of your idea.
Step 4: File a Patentβ’ There are two main patents you will have to choose from: a utility patent
(for new processes or machines) or a design patent (for manufacturing new, nonobvious ornamental designs).
β’ 1. Do your homework. Have your inventor's journal, prototype and notes with you.
β’ 2. Make sure they are registered with the U.S. Patent and Trademark Office.
β’ 3. Ask them what their technical background is. If your invention is electronic, find a patent professional who is also an electrical engineer.
β’ 4. Discuss fees. Keep your focus on smaller patent firms. Step 5: Market Your Inventionβ’ Now it's time to figure out how you're going to bring your product to
market. Create a business plan:
5Steps (Conβt)
PROBING FOR CANDLES1st Step: Where can candles be used?
At home (house)Outdoors
During vacationsAt restaurants
Worship place (church, temples)Vigils
Rally/concerts (gimmick)
ACTUAL PROBING WORKSHEET
Letβs select: Home and outdoors2nd Step: Where there?
Dining room CampsitesLiving room (sala) Picnic areaBedroom Rally/festivalGarden Pyro displayBathroom (fireworks)Kitchen
AT HOME OUTDOORS
Select further: Dining and picnic area3rd Step: With whom?
Family FamilyFriends (Peers) Friends/DateBusiness associates Business AssociatesDate Club membersChurch household Charity event
DINING ROOM PICNIC AREA
Dining with family + Picnic with Friends4th step, ask:
Based on the occasions mentioned in Step 4, 5th Step: What do the users hope to create other than light?
Holidays β festive (make happy) atmosphereDate β a romantic ambiance
Family gathering β relaxed environmentPicnic β to drive away insects
FAMILY FRIENDS/DATEBirthdaysAnniversariesHolidaysGraduationsReconciliations
First dinner (to impress)Subsequent dinner (one more)Valentineβs DayWelcome back
PROBING = ACTUAL PRODUCTFESTIVE CANDLES (HAPPY)β’ TAN/BROWN AND ORANGE CANDLES WITH
SCENTS OF CINNAMONβ’ STRIPED RED AND WHITE OR GREEN CANDLES WITH
SCENTS OF MINTROMANTIC CANDLES (CHARMING)β’ TALL, FLUTED, TAPERED CANDLES WITH EXOTIC COLOR FOR FIRST
DATEβ’ FLOATING AROMATIC CANDLES TO ENHANCE MOODβ’ RED SPIRALED CANDLES WITH SCENTS OF ROSE FOR VALENTINESOUTDOOR CANDLES (NO HASSLE)β’ LARGE AND LONG-LASTING CANDLES INFUSED WITH
CITRONELLA AS REPELLANTβ’ CANDLES IN WINDPROOF CONTAINERS OR LANTERNS
Pam β Ice Mixx
β’ Pam wanted an American brand but decided to build her own βIce Mixxβ and made it one of the most affordable but tastiest soft serve ice creams.
β’ Started her own ice cream business for less than $1,162 and sold it for $0.09 a cone when others were selling at $0.23-0.28.
β’ Got her first million in first year of operation with 8 to 9 branches.
Example - King Kebabs
Counting involved defining the Demographics, understanding the Psychographic and finding the GeographicDemographics β WHO is the market? Markets are busy professionals who want sandwiches not rice meals. Chose CALL CENTER AGENTS.Psychographics β WHY the market buys? Call center agents normally no time to get out of office to eat. Opportunity to offer delivery service for hot meals/filling snacks.Geographic β WHERE is the market? Chose the end of Emerald Avenue In Ortigas Center. Place is rentable + available + affordable.
Example: Red Panda Express CountDATE TRAFFIC COUNT
July 9 1776July 10 1070July 11 1173July 12 1419July 13 2401
Average 1567 pax
TYPE %WORKING CLASS 40-50%BUDGET CROWD 30-40%UPPER/MIDDLE CLASS 10%
Traffic count of sandwich shop at Glorietta
BREAK
Day Thursday Friday Saturday Sunday11:00 AM 12 14 9 712:00 PM 14 9 18 221:00 PM 32 37 20 412:00 PM 18 34 21 213:00 PM 15 28 32 354:00 PM 25 17 25 215:00 PM 30 18 24 306:00 PM 35 30 41 327:00 PM 34 43 35 158:00 PM 9 16 18 9TOTAL 224 246 243 233
James Chuaβ’ Knowing nothing on baking when he started
Foodman Industries Corp., James studied it at the Philippine Institute of Baking.
β’ In 1982 with $1,465 as capital, a borrowed car as delivery van, their guestroom as warehouse, back lawn as oven area, front lawn as living quarters for workers, Foodman started to grow.
β’ From just one outlet, it grew to 15 outlets with snack bar today. It also resulted to a noodle factory, a supermarket, a department store, and an ice cream company.
James Chua β Foodman Industries Inc.
Example 1: High-end dresses ($58 - $93 per piece)I β quality textile materials from US/HongkongP β fashionable, up-to-date design every 2 weeks (she designs) + subcontracted cutter/sewers + consignment arrangement with shopsO β limited designer dresses (slim fashionistas)Example 2: Day/Casual RTW dresses for chubby women (Coozy)I β Hongkong and Bangkok dresses/blouses from wholesalers P β Weekly visit to supply sources + retail shop + merchandizerO β big sizes from XL to 4XL
I-P-O of Several Types of Business/ SMEsBusiness INPUT PROCESSOR OUTPUT
Restaurant Raw food supplier The cook, kitchen equipment and the menu/recipe
Final dish (themed or local fare)
Bakeshop Flour/baking supplies
Baker + store crew + oven
Baked goods
Clothing Cloth, accessories (buttons, zippers, etc.), thread
Designer, sewer and retail shop merchandizer
RTW clothes
Pet Shop Food, medicines Supplier for pet food/ medicines, veterinarian and clinic facility
Clean, healthy happy pets + happy owners
Spa Oils, essences/herbal products, massage area
Therapist, massage area, wet area (jacuzzi)
Soothing/healing massage + relaxed client
Internet/ Computer Shop
Computers, game/ office software
Technician + play/room area
Uninterrupted gamers with challenging games
WHAT ACTUALLY HAPPENED FROM DECEMBER TO APRIL
DECEMBER JANUARY FERBRUARY MARCH APRIL
1W 2W 3W 4W 1W 2W 3W 4W 1W 2W 3W 4W 1W 2W 3W 4W 1W 2W Company Set-up papers
BUSINESS PLAN/FINANCIALS
DTI TRADEMARKS
Initial Money in the bank
JOINT VENTURE WITH THE SITE FRANCHISOR/ OWNER
CURRENT ACCOUNT WITH BDO
Completion of actual product/ service
COOKING MANUAL/ PRODUCT PRICING
INGREDIENTS (MEAT PATTIES, SUPERDOUGH, MAYONNAISE, CHEESE)
INITIAL PRODUCT TESTING
FINAL PRODUCT DEMO WITH PRINCIPAL
HACCP (FOOD SAFETY) CERTIFICATION
Department of Trade and Industry ( DTI)/ Ministry of commerce, BDO ( bank Name), Hazard analysis and critical control points ( HACCP)
WHAT ACTUALLY HAPPENED FROM DECEMBER TO APRIL
DECEMBER JANUARY FERBRUARY MARCH APRIL
1W 2W 3W 4W 1W 2W 3W 4W 1W 2W 3W 4W 1W 2W 3W 4W 1W 2W
Completion of equipment/store
MEETING WITH LEASOR/ LOCATION OWNER FOR STORE PLANS
TOASTER GRILL SELECTION/TEST/ PURCHASE
CHEST TYPE FREEZER PURCHASE
CHILLER DISPLAY SELECTION/SIZING/ PURCHASE
MEETING WITH ARCHITECT/ISSUANCE OF NOTICE TO PROCEED
CHECK ELECTRICAL LOAD/ AREA PERIMETER/ COOKING AREA
MOBILIZATION AND SCOPE OF WORK
STOCKROOM, SHELVINGS & WORKTABLE
FOOD COUNTER COMPLETION/ DOUBLELOCKS
WHAT ACTUALLY HAPPENED FROM DECEMBER TO APRIL
DECEMBER JANUARY FERBRUARY MARCH APRIL
1W 2W 3W 4W 1W 2W 3W 4W 1W 2W 3W 4W 1W 2W 3W 4W 1W 2W
Hiring of initial personnel
SELECTION OF STAFF/ TRAINING
Agreement with Suppliers/ Distributors
CONTRACT TERMS WITH INGREDIENT SUPPLY
SUPPLY OF SANDWICH WRAPS
Market test with customers
ACTUAL SAMPLING OF PRODUCTS
PRICE POINT SURVEY
Moving into actual
COMPANY LOGO/DESIGN OF PACKAGING
PANAFLEX MENUBOARD + SANDWICH PICTURES
STREAMERS/BROCHURES
SUPPLIES & INGREDIENTS AT STORE
TELEPHONE LINE + CASH REGISTER
Start of Business
SOFT OPENING
STORE BLESSINGS
Step to Start SMEsβ’ ααα αΆαα αΆαααΆα α αααααοΏ½ οΏ½αα’αΆαοΏ½αααααααααΆοΏ½ αααΌα αα·αααααα
ααΆαααααΎοΏ½οΏ½οΏ½αα’αΆαοΏ½αααα ααααΆοΏ½ αααΌα αααααααΌα²ααααΆαααΆαααΆααα α·αααααααα ααΆαααααΎ!οΏ½α ααΉαα α·ααα αα·αα!αααΉααοΏ½οΏ½αααΌα (αα»αααααΆαα) ααα!ααααααΌααααΎ,-οΏ½ααααααΎ.οΏ½ αααααΎ/αα ααα
ααΆαααααΎ2ααααα ααααΆαααααΎαααααΆαααααΎαα 2αααααΉααααοΏ½α ααααααΆααααααα·ααα·ααα αα·ααα αα»αααα ααα!α ααααααΎαοΏ½αα’αΆαοΏ½αααααααααΎ9ααααα½αα―α ααααΎαοΏ½αααοΏ½2αα»ααααα·α ααα
α!α αοΏ½α’-οΏ½ααα!ααααααΌααααΎ,-οΏ½ααααΎαοΏ½αααοΏ½αα½αα²ααα’αΆαοΏ½ααααααααοΏ½ααααΎ?αααα½!ααααΎ2αααααβ’ αααααα±ααΆααα»ααααα½αααααα’οΏ½αα ααΆαααααΎααααοΏ½αααααΎα @αααααααΎAααα»ααααα½α
ααααΎαοΏ½αααοΏ½α αΆααααααΎοΏ½οΏ½οΏ½α2ααααΎαDααα½ααα!αααΆα ααααΎαααGαααααΎααΆαα²ααααααΎαοΏ½ααα·ααααΆααα α!ααοΏ½α±ααΆαααααα»ααααα½αααααΎ?αα ααααααΌααΉαααΆ ααααΎαοΏ½α’οΏ½αααα‘αΆααα αΌ!α α·ααα
α’-οΏ½2αααααΎαα ααααΎαααMαοΏ½ααααΎαα α’οΏ½αααααααααΌααΉαααααααΆ α’αΆαοΏ½ααααα ααα!α’οΏ½αα ααααααΎ,-οΏ½ 2α’αΆαοΏ½αααααααΆαα ( α’αΆαοΏ½αααααααα!ααα·ααααααα·α αα½α α¬αα·αααα·αααααααΆαααααααα») α¬2α’αΆαοΏ½αααααααα ( α’αΆαοΏ½αααααααα!α’αΆα α @α!αΌαααΆααααΆαααααΎ!Dα)α
Step to Start SMEs ( Conβt)
β’ ααα(οΏ½ααα*+αααοΏ½αααΆαα ααααααΆαα αΆααααααΎοΏ½οΏ½οΏ½α ααΆααα’αα ααΆαααααΎ,-οΏ½αααααΎαααααΆααα½αα²ααα’οΏ½α α!αααΉαααΆαααααααααΎαααUαοΏ½αα ?ααααααααα’αΆαοΏ½ααααα αααααΌαααα½ααααααα αα·αααααΎαοΏ½ααα»αααα!
αααααααΌα ααααΎαοΏ½ααααααΎVαααααΎαοΏ½! ααΆααα·ααααΆαα½αααα!ααΆαααααΎ!οΏ½αααααΎVοΏ½ααοΏ½αα»ααααΎαWαααααΎXβBusiness Plans For Dummiesβ ααααΎ9αααααΎααΆα Paul Tiffany ααααΆααα·ααΆα
αααα αααααα»α αα»αααΆααα‘αΆαααΆααα!ααΆααααααΎαααααΆαααοΏ½αααΆαα αααΆααααΆαα ααααΎ?αααΉαααΆα α±ααΆαααα½!ααΆαα α.αΌ! α₯α % ααααΎαααα οΏ½α2ααααααα»α α»ααααα!αα·αααΆαα
β’ ααααααααα·αΆα 2ααααΎαDαααα!αα·αα’αΆα α-αααΆαα ααΆαααααααααα·αΆ 2οΏ½αααα½α α αΆαααΆα α2αααααΎα ααααΎα οΏ½αα,α·οΏ½ααΆααααααΎαααα»αααααοΏ½ααΆοΏ½ ααααααΎ`ααΆοΏ½ ααα ααααΎαοΏ½αAαααααα·αΆααααααΎAα
ααΆ ααα!ααααΉααα»ααααα½αααααα’οΏ½α? ααAαααΆααααααΎ?αα’αΆα 2 ααααααΆa αα α’αΆαοΏ½αααααααααΆc !α αοΏ½αα·αααAααοΏ½α· αα·ααααΆαα·ααοΏ½αα»αααααα»αααααα½αΆα αοΏ½αααααΌααα·α·ααααΎααΆα ααaοΏ½
α α·αααααααααΆα α¬ααααα,α·οΏ½α§ααααααα2ααααΎαοΏ½αα
Step to Start SMEs?
β’ ααΆαααα1αα αα’αΆαοΏ½αααααα ααΆαααααΎααααοΏ½αααααΎjαα αα’αΆαοΏ½ααααααααααααΉαααααααΌ α’αΆα ααΆαα αααΆαα α’αΆαααα.αα’αα·αα·ααα²ααα αΆααα’αΆαααα.αααααααΎ!οΏ½ααααΎαααΆαααα α¬οΏ½!α·αοΏ½!ααααα’οΏ½αα 2
ααΌααααΎ`ααΆαααAααα½αα ααα½αααααΎ!οΏ½αααααΎVοΏ½αααΆ ααααΎjαα αα’αΆαοΏ½ααααααα½αααααααοΏ½ ααΆααααα!α½α αΆα αα»α ααααοΏ½α’οΏ½ααααα αα·αααΆααααΆαα
ααα»α’αΆααααΆ4 ααααα α ααααααΌα α»αααααΎjαα αα’αΆαοΏ½ααααα2αα½αα’αΆ2m ,αGααααααααβ’ ααααααοΏ½ααΆααα’αΆαοΏ½αααααα ααΆαααααΎααααοΏ½αααααΎα @ααοΏ½ααΆαααααααααΉαααααααΌ ααΉαα’αΆα αα½αα²ααα’αΆαοΏ½ααααα
ααα½!ααααΎ2ααααααΆααα ααα αοΏ½ααΆααα’αΆα ααααΎnαοΏ½ααααα»αααα οΏ½αααΌααααα α¬αααοΏ½αααΌααααα- 2 ααααΎαοΏ½αα ααααΎαααMαοΏ½ααΆαααααΎααααοΏ½αααααΎα @ααοΏ½ααΆαα ααααααΌαα·ααααΆαα ααα αΆαααΆα αααααααΆααααΆααα·αΆ!αα αα·α α’αΆαοΏ½ααααα ααΆααα ?αοΏ½ααααα²ααααΆαααΆαααΆααααΆα ααααΆαα αΆαααΆα αααΌα ααααΆοΏ½ α
β’ αααααΉαααΆ α α.α»α ααα!ααΆαααααΎαWαααΆααααααΆαααααΎ!οΏ½ααΉααα½αοΏ½οΏ½!α2αααα·αα αααααΎGαα’οΏ½αααΆαα α‘αΆαααα!α ααα αΆααααααΎοΏ½οΏ½οΏ½αα’αΆαοΏ½ααααααααοΏ½αα½αα!ααααα½αα―αα