Five Ingredients that Define a Product:

• Tangible Elements – physical and technical characteristics of the product

• Presumed Benefits – the expected experience that customers seek if they use
the product
• Delivery Processes – the service consideration and applications of the product
• Brand Promises – the reputation, assurances, and uniqueness of the product of
the manufacturer
• Product Context – the relationship of the product with its use in the
Environment

• Market is a place where goods are offered for sale

• Packaging is the act of designing and producing the container for a product
• Price is what you are going to charge your customers for the products sold or
services rendered
• Proponent is a person who makes a proposal or a proposition for a product
concept

The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a
seed is planted (introduction); it begins to sprout (growth); it shoots out leaves
and puts down roots as it becomes an adult (maturity); after a long period as an
adult the plant begins to shrink and die out (decline).
PRODUCT DEVELOPMENT STAGES
1. Idea Generation
2. Feasibility Study
3. Development and Testing of Product Design
4. Final Design and Process Plans

• Micro means very small/limited in quantity

• Endeavor means an effort to do a task
• Business Planning is the process of setting up goals for a business
• Business Plan means any plan that works for a business to look ahead.

A. The Benefits Derived from Planning a Business.

❖ Making a business a plan can minimize or eliminate risks. It involves a careful
study of the competence, interest and resources of the entrepreneur against the
needs of the consumers. A feasibility study is necessary because through this, an
entrepreneur can determine whether his/her choice is profitable or not.

❖ A business plan can also minimize the cost of production. This includes how
each of the resources of production such as manpower, money, materials and
machines are used. Every aspect of the business operations is monitored and
controlled which prevents unnecessary waste of resources that will result to
economy and efficiency.

❖ A business plan can also identify the defects of the business operations. Goals
and objectives are formulated. Procedure, strategies and techniques are planned.
Reevaluation may be done to avoid encountering the same problem.
B. The Basic Principles in Running a Small Enterprise must consider in running a
business/enterprise are the following:
1. Planning must be realistic. It must be based on available human, financial and
physical resources. Planning without enough resources may result to the failure
fail of an enterprise.
2. Planning must be based on the needs of the community. It should fit the needs
of the people in a community which can be known through observations,
personal interviews and questionnaires.
3. Planning must be flexible. You, as the entrepreneur should be able to adjust
and to plan if development changes occur or changes in government laws or
policies happen. Planning should respond to the trends in consumer’s tastes and
preferences.
4. Planning must start with simple projects. This requires simple management and
technology; thus, the micro business is advised.

The Benefits Derived from Planning a Business

➢ Making a business a plan can minimize or eliminate risks

➢ A business plan can also minimize the cost of production

➢ A business plan can also identify the defects of the business operations

The Basic Principles in Running a Small Enterprise must consider in running a

business/enterprise are the following
1. Planning must be realistic
2. Planning must be based on the needs of the community
3. Planning must be flexible
4. Planning must start with simple projects