What is product life cycle?

We always hear about the product life cycle in manufacturing and marketing. But What is the product life cycle?

The product life cycle is the duration of the product from an idea to the end of the product’s life. Which include designing cycle, manufacturing cycle, and sale cycle. Since there is a cycle, then there is a time limit for the product you are planning to manufacture. The product’s life cycle is 100% and if you divide the time percentage between 3 cycles, it will be 33.33% for each cycle.

So, if you want to extend your sales cycle, what do you need to do? You need to shorten your manufacturing cycle or designing cycle. Let’s take this example, you have an idea for a product and your product’s life cycle is 12 months. So each cycle is 4 months. Let's say you shorten your design cycle from 4 months to 2 months. Then you add 2 months from your designing cycle to your sale cycle which will be 6 months

Now you have more time to sell your product.! But what if you can shorten your manufacturing cycle to 2 months? Now you’ll  have:

Design cycle 2 months

Manufacturing cycle 2 months

Sale cycle 8 months

The sale cycle has increased to almost 66.6% which means you have 66.6% of your product lifetime on sale cycle.

I am sure now you understand the benefits of a shorter design and manufacturing cycle will benefit your company.

Keep in mind that the opposite is true. Which means if your designing cycle and manufacturing cycle take more than 4 months for product cycle then you will end up with less sale time for your product.

Of course, products are different from each other but this is an example of an easy and simple product.

In the next podcast ,I will go over specific benefits of the product short cycle.

See you next podcast.

#podcast #manufacturing #cycle #marketing #product #consultation

Private and Public Companies

Most of the companies in the US are privately owned and a few companies are public. Private and public companies have almost the same structures, but there are some differences between them.

Private Companies

Public Companies

Key Terms

Q&A

What are the steps for a private company to become a public company?

Here are the steps for private company to change to public company:

Why is a public company better than private?

Public companies have the benefits of the financial market by selling shares and bonds, unlike the private companies who have to attract investors to sell private shares.

Which private company is the world's largest employer?

According to Fortune Magazine, China National Petroleum Corp has 1,242,245 employees, but the government owns 50% or more.

Hello,

In this episode, we talk about corporation company and the benefits of each structure such as B Corp, C Corp, and S Corp.

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Thank you for your support always. :)

In this episode, I talked about Sole Proprietorship companies and what are the advantages and disadvantages of owning sole proprietorship company.

I also give an example of multinational companies who started as sole proprietorship and become an empire.

I know your time is very valuable. So, I focused to make it short and to the point.

If you have any question or have a feedback, please contact me. Let me know what do you think :))

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Sole proprietorship

Sole proprietorship is the simplest business structure that is formed by one person as sole proprietor. Business can start with sole proprietorship and move to a company status in the future. Sole proprietorship can be formed by more than one person as a partnership. Which means that all owners are liable for the company debt and can’t be protected. For partnership income tax, each person can tax his or her own tax depending one the owning persentage.

Advantage of Sole Proprietorship:

Disadvantage of Sole Proprietorship:

Here are some example of company started as sole proprietorship and partnership to multinational companies:

Richard Branson started as a sole proprietorship that expand into Virgin empire

Steve Jobs and Steve Wonzinak: partnership that created Apple company.

John Willard Marriott, Sr started A&W as a sole proprietorship

Key Terms:

Q&A:

What is Sole proprietorship?

It is an individual who is the only owner of the business.

Can you hire an employee if you are a sole proprietorship company?

Yes, you can hire employees if you are sole proprietorship

Do you have to have a physical location?

You do not need a physical location such as a store. You can use your own home to do that.

Hope this can help. :)

In this episode, I talk about business ownership and business structure. I discuss the type of business ownership and benefits of each type. I also mention some advantage and disadvantage of private, public, multinational and global company.

Business Ownership mean business structure such as private or public company.

Before you start your business ask yourself the following questions:

How big is your business expected to grow?

 What is the complexity of financial recording? 

What type of management do you need? 

What is the amount of liability you are willing to accept?

This will help you to determine the type of business you need.

small and simple business structure, a sole proprietorship or partnership is suitable for the business because it is easy to set up and requires little capital.

Private companies are the second in complexity after sole proprietorships and partnerships. A private company is a private legal entity separate from its owner or owners.

Public companies are large businesses who have many legal and financial reporting obligations. Public companies trade their shares on the stock market and the general public can buy and sell shares.

Multinational companies are companies who operate in more than one country, such as the USA and Spain. Both companies have facilities in different countries, but each functions as its own entity. But a global company has facilities in different countries but operates as a single corporation.

Franchises consist of a business (franchisor) that authorizes a franchisee (individual or group) to set up a branch under its name in return for a fee.

Nonprofits are businesses that do not generate money for their shareholders. Some nonprofits are founded with a social mission to support communities, such as charities, hospitals, shelters, etc.

Q&A:

Where to change business ownership?

Each business type has different requirements such as sole proprietorship and limited liability company.

I recommend check with your local state business department for the requirements either online or call them.

Which business ownership is best?

Sole proprietorship or (LLC) limited liability company  because you can have 100% control of your company.

Which business ownership is easier to obtain credit?

Sole proprietorship and LLC who has one owner and pays taxes on business in come profit.

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