Engineering Economics and cost analysis


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Engineering Economics and cost analysis 1 answer below » An entrepreneur who wishes to start a business begins, of course, with a great innovative idea for a product or service. The entrepreneur often prototypes and experiments early to refine the product or service. At some point, the entrepreneur has explored his or her idea well enough to begin to plan actually launching the business. Often the launch is preceded by the development of a business plan, which is where the entrepreneur documents what the new product or service will be, who will buy it, who the View complete question » An entrepreneur who wishes to start a business begins, of course, with a great innovative idea for a product or service. The entrepreneur often prototypes and experiments early to refine the product or service. At some point, the entrepreneur has explored his or her idea well enough to begin to plan actually launching the business. Often the launch is preceded by the development of a business plan, which is where the entrepreneur documents what the new product or service will be, who will buy it, who the competition is, how the new product or service is different than what the competition offers (price, quality, features,…), how the company will initially be organized and staffed, and a financial picture of the new company, including expected cash flows, cost structure, etc. The business plan serves to guide the startup of the company and is especially important if the entrepreneur needs to seek outside funding for the launch. There are many formats for business plans, but most have a similar structure. For this homework assignment, I would like you to develop a short business plan for a product or service of your choice. Be creative and have fun with this. The product or service should be original in some way. It can be anything that catches your imagination. For example, my youngest son, who is a die-­-hard Dr. Who fan, recently bought a replica of a sonic screwdriver patterned after the one used by David Tennant. It is actually an extremely powerful and versatile universal remote control that can control televisions and many other electronic devices. I think this is a very creative “toy” that retails for $99.95 on a rather interesting website by The Wand Company (http://www.thewandcompany.com/sonic/). The entire initial investment for your new company should be no more than $500,000 and you should plan on borrowing at least ½ of the funds. Your plan should be no more than 10 pages long and should include: 1. A title page stating the name of your company, the names of the owners (possibly you, but you can propose something different), and when the business plan was written. 2. An executive summary stating what products and services your company will produce, who your anticipated customers are, and what you see as the future of your company. 3. A company description including key employees and a mission statement. 4. A few sentences about what you think the size and characteristics of your market is and who your competitors are. If this were a substantial business plan, you would spend a lot of time conducting research on your market. For this assignment, only superficial research is expected. 5. Describe your products and services in 1or 2 pages and why they are special – differentiate them from your competitors. 6. The marketing and sales section of you…

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