Business Development / Business Management
Products, production, sales, people, and finance need to be managed as one business.
This page explains the main areas of work and how they connect. Manufacturing readiness and marketing execution are covered on separate pages under Business Development.
Owning a brand and operating a factory are different activities, with different customers, revenue sources, and cost structures.
Revenue comes from selling products to consumers or trade customers. Management focuses on product development, branding, sales channels, customer service, and repeat purchases.
Products may be made by a manufacturing partner or in the company's own facility. Marketing and inventory costs must be managed in either case.
Revenue comes from production orders. Management focuses on customer acquisition, capacity, quality, productivity, material procurement, and on-time delivery.
Orders and capacity utilization need to support the costs of people, facilities, maintenance, and operations.
Brand sales, factory orders, costs, and cash requirements should still be calculated separately before evaluating the company as a whole.
Decisions in one area affect work and costs elsewhere. Some activities take place at the same time.
For example, packaging choices affect product and shipping costs. Channel choices affect discounts, promotions, inventory, and when cash is received. Sales and complaint data then inform the next set of decisions.
Each area needs clear ownership, a work plan, resources, and measures of performance.
Define target customers, needs, core benefits, brand differentiation, identity, and pricing. Research and offer testing help establish why customers would choose the product.
Main risk: the product lacks differentiation, or pricing leaves insufficient room for selling costs.
Manage formulas, samples, packaging, specifications, testing, suppliers, order quantities, lead times, shelf life, and demand forecasts.
Main risk: late materials, inconsistent quality, stockouts, or cash tied up in inventory.
Choose a manufacturing partner or an in-house factory; manage facilities, people, processes, documentation, quality control, and business and product requirements.
Main risk: production delays, failure to meet specifications, quality complaints, or disruption to product distribution.
Manage offline and online channels, awareness activities, sales teams, digital stores, offers, delivery, enquiries, complaints, and repeat purchases.
Main risk: marketing generates insufficient purchases, or selling costs exceed available margins.
Calculate product and selling costs, prepare budgets, monitor receivables and supplier payments, and plan inventory funding.
Main risk: sales increase, but cash is insufficient to fund operations.
Define responsibilities, skills, procedures, records, reporting, and follow-up. Staffing should match the needs and resources of the business.
Main risk: work has no clear owner, information arrives late, or problems are not addressed.
Performance should be assessed through demand, order fulfilment, profitability, and cash availability.
This framework explains business management. Targets, budgets, and project viability require calculations based on the products, capacity, channels, and circumstances of the company concerned.