“The people who are crazy enough to think they can change the world are the ones who do.”
― Steve Jobs
Be prepared when presenting your business case. Have a detailed and realistic budget so you don't have to compromise because you're running out of capital.
Your business plan should be based on a maximum selling price, which in turn is based on manufacturing & distribution cost plus a healthy profit margin.
How do you make sure all this can be achieved before you start designing?
- How to evaluate experts in development
& production
- How to make a detailed product specification
- How to evaluate cost impact depending on
design & functions
- Make realistic plans for costs and time to
develop a finished product
- Adjust your budget depending on your capital
and other constraints
- Evaluate engineers and other key personnel for
the development phase
- Setting up a logistics strategy (an initial one and
a more long term solution)
- What to consider regarding packaging and delivery
solutions & terms
- How to set up distribution and evaluate partners
involved
- Define a manufacturing specification (based on
place of outsourcing or in-house production,
requirements on production standards etc.)
- How you evaluate the right manufacturing
supplier (EMS) for your product
- What to consider, setting up a supply chain
- Understanding supplier agreements
Having a fairly accurate idea of the manufacturing cost at a very early stage is essential, as it defines your overall business plan and helps you keep focused going forward.
- Estimating the manufacturing unit cost
depending on one or more scenarios
- Identifying key factors that influence the unit cost
- Explore potential (future) cost reductions
