EQ: HOW DO RESOURCES IMPACT BUSINESSES?
Learning Target I CAN ASSESS RESOURCES NEEDED TO BUILD A PRODUCT OR SERVICE SUCCESS I will generate 5 business ideas and identify FEASIBILITY by identifying cost and time needed to launch them. Vertical Divider
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DESIGN
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CORNELL NOTES
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NOTES: RESOURCESWhen it comes to preparing for sourcing and manufacturing, the devil is indeed in the details. Developing a feel for the economics involved in bringing your invention to market is essential, but you’ll also need to make sure you’ve assembled all the information you need, about both software and hardware, to properly communicate all of your requirements to potential manufacturers.
Below are steps you should follow to ensure that your supplier can cost-effectively deliver a product that will meet your specifications and realize your vision. Determine the Cost of Similar Products No matter how brilliant your design, if you can’t make and sell your product at a profit, your business cannot succeed. A useful resource for determining the costs of similar items is Alibaba, a Chinese conglomerate that sells business to business, business to consumer, and consumer to consumer via the web. Check out as much of the competition as you can, making sure that your plan is in line with the existing pricing structure in your sector. You’ll need to have an idea of how much you can sell your product for before you go into manufacturing, so that you can make sure your margins line up. You’ll also need to be aware of any minimum order quantities when you are comparing pricing. Assemble Your Bill of Materials Your bill of materials (BOM) specifies everything required to complete your project. It includes:
Determining where to make your product is essential. There are many advantages to manufacturing your product offshore. Costs are typically lower, both for labor and rental of facilities. Well-educated, technologically-skilled workers are often available for a fraction of the salary they would command in the United States. Additionally, storage space and shipping are typically readily at hand. Furthermore, you may also gain access to those markets where your manufacturing is based. There are advantages to keeping your production in the U.S. as well. For example, though products with assembly will be cheaper overseas, big parts that take up space in a shipping crate may be cheaper here. You’ll also need to account for shipping and duties. Other benefits including easier shipping, more oversight and access to a team in a similar or same time zone, as opposed to one that operates on completely opposite business hours. As a general rule of thumb, products made from larger injection-molded parts are about the same cost in the United States as overseas and more cost-effect to ship, though tooling can be pricier. However, electronic products and products that require a large amount of assembly are better to do overseas. |
GROUP ACTIVITY:
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idea_guide.docx | |
File Size: | 222 kb |
File Type: | docx |